COLUMBIA, Maryland,
Dec. 22, 2021 /PRNewswire/ -- The
Mexico Fund, Inc. (NYSE: MXF), today issued its fiscal 2021 Annual
Report for the period ended October 31,
2021.
A full version of the report is available at the company´s
website – www.themexicofund.com
Fiscal 2021 Highlights
During the Fund's fiscal year 2021, the Fund NAV per share and
market price recovered sharply, registering a total return of
40.26% and 46.07%, respectively, while the Fund´s benchmark, the
Morgan Stanley Capital International ("MSCI") Mexico Index,
increased 46.60%. Although the Fund´s NAV per share underperformed
its benchmark during the period, it has outperformed its benchmark
during the three-, five- and ten-year periods ended on October 31, 2021, as shown in the table
below:
|
Annualized %
Return in USD
|
|
1-year
|
3-years
|
5-years
|
10-years
|
MXF Market Price
|
46.07
|
8.08
|
2.72
|
2.39
|
MXF NAV
|
40.26
|
8.01
|
2.39
|
2.65
|
MSCI Mexico
Index
|
46.60
|
7.46
|
1.63
|
0.90
|
As of October 31, 2021, the Fund's
market price and NAV per share were $14.97 and $17.40,
respectively, reflecting a discount of 13.97%, compared with a
discount of 17.14% at the end of fiscal year 2020.
At its June 2021 meeting, the
Fund's Board of Directors (the "Board") decided to reinstate its
Managed Distribution Plan ("MDP"). In June
2020, the Board temporarily suspended the Fund´s MDP due to
the significant decrease in net assets and uncertainty produced by
the Covid-19 pandemic. Notwithstanding, the Board maintained a
commitment to reinstate the MDP as soon as it deemed advisable.
During the Fund´s fiscal year 2021, Fund net assets recovered along
with global financial markets, the economic outlook improved, and
the Fund experienced a recovery in dividends received from
portfolio issuers. Accordingly, during its June 2021 meeting the Board reinstated the Fund's
MDP, and the Fund paid two distributions of $0.18 per share each during July and October 2021, for a total of $0.36 per share during fiscal year 2021. In
addition, the Board has declared a distribution of $0.18 per share to be paid on January 27, 2022, to stockholders of record as of
January 20, 2022.
The Board and its investment adviser, Impulsora del Fondo
México, S.C. ("Impulsora"), have agreed to renew and further
strengthen the Fund´s Expense Limitation agreement ("ELA") for
fiscal year 2022, reducing the ordinary expense ratio cap from
1.50% to 1.40% (which excludes, among other expenses, the
performance component of the Investment Advisory fee) from
November 1, 2021, through
October 31, 2022, so long as Fund net
assets remain greater than $260
million. When Fund net assets are below the threshold of
$260 million, Impulsora will still
waive fees in an amount necessary to maintain an ordinary operating
expense ratio of 1.40% at a hypothetical Fund net asset level of
$260 million. During fiscal year
2021, the Fund's total expense ratio was 1.45%, lower than the
1.56% reported during fiscal 2020, and the ordinary expense ratio
(excluding the performance component of the Investment Advisory
fee) was 1.41%, lower than the ordinary expense ratio of 1.54%
reported during fiscal year 2020, and lower than the Fund's expense
limit of 1.50% for the fiscal year 2021.
About The Mexico Fund, Inc.
The Mexico Fund, Inc. 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 Exchange. 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.
This release may contain certain forward-looking statements
regarding future circumstances. These forward-looking statements
are based upon the Fund's current expectations and assumptions and
are subject to various risks and uncertainties that could cause
actual results to differ materially from those contemplated in such
forward-looking statements including, in particular, the risks and
uncertainties described in the Fund's filings with the Securities
and Exchange Commission. Actual results, events, and performance
may differ. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. The Fund undertakes no obligation to release publicly any
revisions to these forward looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events. The inclusion of any
statement in this release does not constitute an admission by The
Mexico Fund or any other person that the events or circumstances
described in such statement are material.
CONTACT:
Tofi
Dayan
+5255-9138-3350
Email: investor-relations@themexicofund.com
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SOURCE The Mexico Fund, Inc.