THE MEXICO FUND, INC. ISSUES ITS 2024 SEMI-ANNUAL REPORT

Rhea-AI Summary

The Mexico Fund (NYSE: MXF) has released its fiscal 2024 Semi-Annual Report for the period ending April 30, 2024. The Fund's NAV per share achieved a total return of 21.62%, slightly outperforming its benchmark, the MSCI Mexico Index, which returned 21.58%. The Fund's market price saw a total return of 22.06%. Over one, five, ten, and fifteen-year periods, the Fund's NAV per share outperformed the benchmark. As of April 30, 2024, the Fund's market price was $17.99, with an NAV per share of $22.62, reflecting a 20.47% discount.

The Expense Limitation Agreement was renewed, capping the ordinary expense ratio at 1.40%, provided net assets remain over $260 million. The Fund's ordinary expense ratio was 1.34% in the first half of 2024. The Board of Directors confirmed the continuation of quarterly distributions, declaring a $0.22 per share distribution to be paid on July 25, 2024, to shareholders on record as of July 17, 2024.

Positive

• NAV per share achieved a 21.62% total return, outperforming the MSCI Mexico Index.
• Fund's market price total return of 22.06% exceeded the NAV per share return.
• Fund's NAV per share has consistently outperformed its benchmark over one, five, ten, and fifteen-year periods.
• Ordinary expense ratio was 1.34%, below the 1.40% cap.
• Quarterly distribution of $0.22 per share declared for July 25, 2024.

Negative

• Fund's market price per share is at a 20.47% discount compared to its NAV per share.

Financial Analyst

The Mexico Fund's semi-annual report provides a comprehensive overview of its performance in the first half of fiscal 2024. Notably, the fund's NAV per share registered a total return of 21.62%, slightly outperforming its benchmark, the MSCI Mexico Index, which posted a 21.58% return. This consistent performance over one-, five-, ten- and fifteen-year periods illustrates strong management.

One interesting point for investors is the fund's persistent market price discount to NAV. As of April 30, 2024, the market price was $17.99 with an NAV of $22.62, reflecting a discount of 20.47%. Such discounts can be opportunities for value investors if they believe the gap will narrow over time.

The Expense Limitation Agreement, capping the ordinary expense ratio at 1.40%, is a positive as it ensures cost efficiency. The fund's actual expense ratio of 1.34% shows effective cost management. This lower expense ratio can enhance net returns for investors.

Furthermore, the fund's quarterly distributions under the Managed Distribution Plan (MDP) provide a predictable income stream, with a declared distribution of $0.22 per share. This can be attractive for income-focused investors looking for regular payouts.

Overall, this semi-annual report reflects solid performance, cost-effective management and a commitment to shareholder returns.

Market Research Analyst

Analyzing the broader market context, the Mexico Fund's performance aligns with a general uptrend in the Mexican equity market, as indicated by the MSCI Mexico Index's return of 21.58%. This strong market performance can be attributed to several favorable macroeconomic factors including stabilization in commodity prices, positive trade relations and domestic economic reforms.

The discount to NAV is significant at 20.47%. While this discount is typical for closed-end funds, it also suggests potential investor skepticism or perceived risks in the Mexican market. However, if market sentiment improves, there's potential for the discount to narrow, benefiting shareholders.

The continuation of the Expense Limitation Agreement and the fund's quarterly distributions underscore a stable operational framework. Investors should view these elements as signs of prudent fund management and a focus on delivering consistent shareholder value.

In conclusion, the Mexico Fund's performance and strategies are well-aligned with market trends and investor expectations, offering a blend of growth and income potential.

COLUMBIA, Md., June 25, 2024 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF), today issued its fiscal 2024 Semi-Annual Report for the period ended April 30, 2024.

A full version of the report is available at the company's website – www.themexicofund.com

Semi-Annual Report 2024 Highlights

During the first half of fiscal year 2024, the Fund's NAV per share registered a total return of 21.62%, compared with a return of 21.58% registered by its benchmark, the Morgan Stanley Capital International ("MSCI") Mexico Index, while the Fund´s market price registered a total return of 22.06%. The Fund´s NAV per share has outperformed its benchmark during the one-, five-, ten- and fifteen-year periods ended on April 30, 2024, as shown in the table below:

		Annualized % Return in USD
	1-year		3-years	5-years	10-years	15-years
MXF Market Price	13.20		12.67	9.36	1.85	8.89
MXF NAV	11.38		14.93	10.91	3.35	9.00
MSCI Mexico Index	9.55		15.06	9.78	2.56	7.16

As of April 30, 2024, the Fund's market price and NAV per share were $17.99 and $22.62, respectively, reflecting a discount of 20.47%, compared with a discount of 20.40% at the end of fiscal year 2023.

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, of 1.40%, so long as Fund net assets remain greater than $260 million. The Fund's ordinary expense ratio during the first half of fiscal year 2024 was 1.34%, below the limit of 1.40%.

The Board of Directors of the Fund has ratified the continuation of the Fund's quarterly distributions under its MDP during 2024. As a result, it declared a distribution of $0.22 per share to be paid on July 25, 2024, to stockholders of record as of July 17, 2024.

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

View original content:https://www.prnewswire.com/news-releases/the-mexico-fund-inc-issues-its-2024-semi-annual-report-302181865.html

SOURCE The Mexico Fund, Inc.

FAQ

What is the total return of The Mexico Fund's NAV per share for the first half of fiscal 2024?

The total return of The Mexico Fund's NAV per share for the first half of fiscal 2024 is 21.62%.

How does The Mexico Fund's NAV per share compare to the MSCI Mexico Index?

The Mexico Fund's NAV per share achieved a total return of 21.62%, slightly outperforming the MSCI Mexico Index, which returned 21.58%.

What was the total return of The Mexico Fund's market price during the first half of fiscal 2024?

The total return of The Mexico Fund's market price during the first half of fiscal 2024 was 22.06%.

How did The Mexico Fund's NAV perform over longer periods?

The Fund's NAV per share outperformed its benchmark over the one, five, ten, and fifteen-year periods.

What is the current market price and NAV per share of The Mexico Fund?

As of April 30, 2024, The Mexico Fund's market price is $17.99, and its NAV per share is $22.62.

What is the discount between The Mexico Fund's market price and NAV per share?

The discount between The Mexico Fund's market price and NAV per share is 20.47%.

What is the ordinary expense ratio for The Mexico Fund in the first half of 2024?

The ordinary expense ratio for The Mexico Fund during the first half of 2024 was 1.34%.

What is the distribution declared by The Mexico Fund for July 25, 2024?

The Mexico Fund declared a distribution of $0.22 per share to be paid on July 25, 2024.

When is the record date for The Mexico Fund's declared distribution?

The record date for The Mexico Fund's declared distribution is July 17, 2024.