The Mexico Fund, Inc. Announces that it will Reinstate its Managed Distribution Plan and Declares a Distribution
The Mexico Fund, Inc. (NYSE: MXF) has reinstated its Managed Distribution Plan (MDP) after a recovery in net assets since November 2020. The MDP, temporarily suspended due to the pandemic's impact, will provide quarterly cash distributions. A cash distribution of $0.18 per share has been declared for stockholders of record on July 22, 2021, equating to an annualized distribution rate of 4.7%. Since its MDP initiation in 2008, the Fund has paid $24.28 per share in distributions. The Board maintains the right to amend or terminate the MDP at any time.
- Reinstatement of Managed Distribution Plan (MDP) provides regular cash distributions.
- Declared distribution of $0.18 per share equates to an annualized rate of 4.7%, attractive in the current low interest rate environment.
- Total distributions since 2008 amount to $24.28 per share, demonstrating consistent returns.
- The Board retains the ability to amend or terminate the MDP without prior notice, adding uncertainty for investors.
COLUMBIA, Maryland, June 16, 2021 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF) announced that the Board of Directors (Board) has decided to reinstate the Fund's Managed Distribution Plan (MDP). As announced on June 8, 2020, the Board decided to temporarily suspend its MDP because of the sharp decrease in Fund net assets, as global financial markets were negatively impacted by the effects of the "Covid-19" pandemic, affecting global economic activity, the Mexican equity market and the value of the Mexican peso. Under those circumstances, the Board decided that it was in the best interest of stockholders to suspend its MDP in order to preserve capital, while enabling the Fund to take advantage of attractive investment opportunities. Notwithstanding, the Board maintained a commitment to reinstate the MDP as soon as it deemed advisable.
Since November 2020, Fund net assets recovered along with global financial markets, driven by substantial global monetary and fiscal stimulus; the economic outlook improved due to the re-opening of several activities and the ongoing vaccination programs, and the Fund experienced a recovery in dividends received from portfolio issuers. Consequently, the Board has determined that it is in the best interest of Fund stockholders to reinstate the Fund's MDP. Under the Fund's MDP, the Fund pays quarterly cash distributions to its stockholders.
The MDP is expected to provide steady quarterly cash distributions to Fund stockholders that may help reduce the discount to NAV at which the Fund's shares trade, and may also increase the liquidity of Fund shares through the reinvestment of a portion of those distributions. There is no assurance that the Fund will achieve these results.
As a result, the Board has declared a distribution of
The Board has approved the continuation of the Fund's MDP during 2021. The Board may amend or terminate the MDP at any time without prior notice to stockholders. Since the implementation of the MDP in September 2008, the Fund has paid a total of
The amount of distributable income for each fiscal period depends on the aggregate gains and losses realized by the Fund during the entire year. Distributions may consist of net investment income, capital gains and return of capital, but the character of these distributions cannot be determined until after the end of the Fund's fiscal year. However, under the Investment Company Act of 1940, the Fund is required to indicate the source of each distribution to stockholders. The following table sets forth (A) an estimate of the source of the July 2021 distribution and (B) an estimate of the source of distributions for the current fiscal year:
|
Distribution Estimates |
July 2021 |
Fiscal Year-to-date (YTD)1 |
||
|
Source |
Per Share Amount |
Percent of Current Distribution |
Per Share Amount |
Percent of Fiscal Year Distributions |
|
Net Investment Income |
|
|
|
|
|
Net Realized Short-Term Capital Gains |
- |
- |
- |
- |
|
Net Realized Long-Term Capital Gains |
- |
- |
- |
- |
|
Return of Capital |
|
|
|
|
|
Total Distribution |
|
|
|
|
Information regarding the Fund's performance and distribution rates is set forth below:
|
Average Annual Total Return for the 5-year period ended on May 31, 20212 |
|
|
Current Annualized Distribution Rate (current fiscal year)3 |
- |
|
Current Fiscal Year Cumulative Total Return4 |
|
|
Cumulative Distribution Rate (current fiscal year)5 |
- |
1 The Fund's current fiscal year began on November 1, 2020.
2 Average Annual Total Return represents the simple arithmetic average of the Annual NAV Total Returns of the Fund for the last five years. Annual NAV Total Return is the percentage change in the Fund's NAV over a year including distributions paid and assuming reinvestment of those distributions.
3 The Current Annualized Distribution Rate is the Cumulative Distribution Rate as of May 31, 2021, annualized as a percentage of the Fund's NAV at the same date. As of the date of this press release, this rate is zero because the
4 Current Fiscal Year Cumulative Total Return is the percentage change in the Fund's NAV from November 1, 2020, through May 31, 2021, including distributions paid and assuming reinvestment of those distributions.
5 Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2020, through May 31, 2021) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of May 31, 2021. As of the date of this press release, this rate is zero because the
You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's MDP.
The amounts and sources of distributions reported above are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report the distribution for federal income tax purposes.
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.
View original content:http://www.prnewswire.com/news-releases/the-mexico-fund-inc-announces-that-it-will-reinstate-its-managed-distribution-plan-and-declares-a-distribution-301312570.html
SOURCE The Mexico Fund, Inc.
FAQ
What is the distribution amount declared by Mexico Fund, Inc. on July 22, 2021?
When will the distribution from Mexico Fund, Inc. be payable?
What is the annualized distribution rate for Mexico Fund, Inc. as of May 31, 2021?
What does the reinstatement of the Managed Distribution Plan (MDP) mean for Mexico Fund, Inc. stockholders?
How much has Mexico Fund, Inc. paid in distributions since the start of the MDP?
