The Mexico Fund, Inc. Issues its 2021 Annual Report

Rhea-AI Summary

The Mexico Fund, Inc. (NYSE: MXF) reported its fiscal 2021 Annual Report, highlighting a remarkable recovery with a total return of 40.26% for NAV per share and 46.07% for market price. Although the NAV underperformed against its benchmark, it outperformed over 3, 5, and 10 years. As of October 31, 2021, market price was $14.97 and NAV was $17.40, reflecting a 13.97% discount. The Fund's Managed Distribution Plan was reinstated, with dividends of $0.36 per share in fiscal 2021, and a new $0.18 distribution declared for January 2022.

Positive

• Total return of 40.26% for NAV per share and 46.07% for market price in fiscal 2021.
• Outperformed benchmark over 3, 5, and 10 year periods.
• Reinstated Managed Distribution Plan, paying total dividends of $0.36 per share in fiscal 2021.
• Lowered expense ratio to 1.40%, down from 1.50%.

Negative

• NAV per share underperformed the benchmark during fiscal 2021.

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.

FAQ

What were the total returns for MXF in fiscal 2021?

The Mexico Fund, Inc. reported a total return of 40.26% for NAV per share and 46.07% for market price in fiscal 2021.

What is the current NAV of The Mexico Fund as of October 31, 2021?

As of October 31, 2021, the NAV per share was $17.40.

What dividends were paid by MXF in fiscal 2021?

The Mexico Fund paid a total of $0.36 per share in dividends during fiscal 2021.

What is the expense ratio for The Mexico Fund for fiscal year 2022?

The expense ratio has been reduced to 1.40% for fiscal year 2022.

How did The Mexico Fund perform compared to its benchmark in fiscal 2021?

In fiscal 2021, the Fund's NAV per share underperformed compared to its benchmark, the MSCI Mexico Index.

When is the next dividend payment for MXF?

The next dividend payment of $0.18 per share is scheduled for January 27, 2022.