Description

The Mexico Fund, Inc. (the “Fund”) is a non-diversified closed-end management investment company with the investment objective of long-term capital appreciation through investments in securities, primarily equity, listed on the Mexican Stock Exchanges. The Fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program. The Fund’s shares are listed and traded on the New York Stock Exchange (“NYSE”) under the symbol “MXF.”

Managed Distribution Plan (“MDP”)

The Board of Directors of the Fund has authorized quarterly distributions of $0.18 per share under the MDP. With each distribution, the Fund will issue a notice to stockholders and an accompanying press release, which will provide detailed information regarding the amount and composition of the distribution and other information required by the Fund’s MDP exemptive order. The Fund’s Board of Directors may amend or terminate the MDP at any time without prior notice to stockholders. You should not draw any conclusions about the Fund’s investment performance from the amount of distributions or from the terms of the Fund’s MDP.

Highlights

These figures represent past performance. Past performance does not guarantee future results. The Fund's investment return and principal value will fluctuate so that an investor's shares, at the time of sale, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above.

Global equity markets registered negative returns during September 2022. The MSCI World Index and the MSCI Emerging Markets Index decreased 9.5% and 11.9%, respectively, during the month, driven by further global monetary tightening. The U.S. Federal Reserve (the “Fed”) increased for the third consecutive meeting its target interest rate by 75 basis points to a range of 3.00% and 3.25%, the European Central Bank increased its main refinancing rate 75 basis points to 1.25% and the Bank of England increased its target interest rate 50 basis points to 2.25%. The monetary tightening in the U.S., together with fears of recession resulted in decreases of the DJIA and the S&P 500 of 8.8% and 9.3%, respectively, while the interest rate on the 10-year Treasury note recorded an increase of 64 basis points to 3.83% during September 2022. At the same time, the U.S. dollar appreciated 3.1% (measured by the DXY Index⁴), during the month.  In Mexico, the MSCI Mexico Index registered a defensive performance relative to global equity markets, decreasing only 0.4% during the month, while the Mexican peso remain unchanged at Ps. $20.14. The Fund’s NAV decreased also 0.4%, in line with its benchmark.

In local news, Mexico´s Central Bank (“Banxico”) also increased for its third consecutive meeting its overnight interest rate by 75 basis points to 9.25%. The Ministry of Finance presented to Congress the Government´s budget for 2023, expecting to maintain strong and healthy public finances with a slight primary deficit of 0.2% of GDP.

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The information presented in this report has been derived from the sources indicated. Neither The Mexico Fund, Inc. nor its Adviser, Impulsora del Fondo México, S.C., has independently verified or confirmed the information presented herein.

Important Risk Disclosure

All performance shown is historical. Closed-end funds are traded on the secondary market through one of the stock exchanges. Shares of closed-end funds may trade above (premium) or below (discount) the NAV of the fund’s portfolio. The NAV is the value of an entity’s assets less the value of its liabilities. The Market Price is the current price at which an asset can be bought or sold. There is no assurance that the Fund will achieve its investment objective.