THE MEXICO FUND, INC. ISSUES ITS 2023 ANNUAL REPORT
- The Fund has consistently outperformed the MSCI Mexico Index over multiple time periods.
- The ordinary expense ratio in fiscal year 2023 was below the agreed limit of 1.40%.
- A distribution of $0.22 per share has been declared for stockholders.
- None.
Insights
The Mexico Fund, Inc.'s Annual Report for fiscal 2023 indicates a performance that exceeds its benchmark, the MSCI Mexico Index, across multiple time frames. Such outperformance is noteworthy for investors as it suggests that the fund's management has successfully navigated the market conditions and investment selections better than the average market performance represented by the index. However, the observed discount of 20.40% on the market price relative to the NAV may raise questions about market sentiment towards the fund or potential liquidity concerns.
Moreover, the renewal of the Expense Limitation Agreement at a cap of 1.40% while maintaining the actual expenses below this cap at 1.35% reflects well on the fund's cost management strategies. This cost efficiency can contribute positively to the fund's overall return, as lower expenses directly benefit shareholders by increasing the net value of their investments.
The persistent discount on the Mexico Fund's shares relative to its NAV suggests that there may be broader market perceptions or macroeconomic factors at play. Investors often view such discounts as opportunities, but they can also indicate skepticism about the fund's future growth prospects or the economic outlook of the region it invests in. The fund's performance relative to the MSCI Mexico Index is an important metric for investors, as it provides a comparative measure of the fund's stock-picking acumen against a broad representation of the Mexican stock market.
The distribution declared could be seen as a positive signal, potentially attracting income-focused investors. However, the sustainability of such distributions is crucial and should be assessed in conjunction with the fund's overall return and payout ratio.
The Mexico Fund's performance, particularly its ability to outperform its benchmark over extended periods, suggests that the Mexican economy and the sectors represented within the fund's portfolio may offer growth opportunities that the fund is capitalizing on. This could be indicative of underlying economic resilience or sector-specific strengths within Mexico. However, the discount on the fund's market price compared to its NAV could be reflective of broader economic concerns, such as political risks, currency volatility, or trade dynamics that investors associate with the region.
It is also important to consider the macroeconomic environment when evaluating the fund's future prospects, including factors such as inflation, interest rates and foreign investment flows, which can significantly impact market performance and investor sentiment towards funds focused on specific economies.
A full version of the report is available at the company´s website – www.themexicofund.com
Annual Report 2023 Highlights
During fiscal year 2023, the Fund's NAV per share and market price registered a total return of
Annualized % Return in USD | |||||
1-year | 3-years | 5-years | 10-years | 15-years | |
MXF Market Price | 12.10 | 17.56 | 7.03 | -0.54 | 7.66 |
MXF NAV | 11.92 | 18.33 | 8.28 | 1.27 | 7.39 |
MSCI Mexico Index | 9.91 | 19.48 | 7.62 | 0.51 | 5.78 |
As of October 31, 2023, the Fund's market price and NAV per share were
The Fund´s Expense Limitation Agreement was renewed for fiscal year 2024 with a cap on the ordinary expense ratio (which excludes the performance component of the Investment Advisory fee, among other extraordinary expenses) of
The Fund has declared a distribution of
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 is the total return for NAV and market price in fiscal year 2023 for The Mexico Fund, Inc. (NYSE: MXF)?
What were the market price and NAV per share as of October 31, 2023 for The Mexico Fund, Inc. (NYSE: MXF)?
What is the Expense Limitation Agreement for fiscal year 2024 for The Mexico Fund, Inc. (NYSE: MXF)?
What distribution has been declared for The Mexico Fund, Inc. (NYSE: MXF) for fiscal year 2023?
