THE MEXICO FUND, INC. PAYS DISTRIBUTION

Rhea-AI Summary

The Mexico Fund (NYSE: MXF) announced a distribution of $0.22 per share to stockholders of record as of July 17, 2024, payable on July 25, 2024. The distribution breakdown is as follows:

• 56.82% from Net Investment Income
• 7.64% from Net Realized Short-Term Capital Gains
• 15.54% from Net Realized Long-Term Capital Gains
• 20.00% from Return of Capital

The Fund's performance metrics include an Average Annual Total Return of 12.30% for the 5-year period ended June 30, 2024, and a Current Annualized Distribution Rate of 3.33% for the current fiscal year. The Fund's fiscal year began on November 1, 2023, with a Current Fiscal Year Cumulative Total Return of 7.10% and a Cumulative Distribution Rate of 2.21% as of June 30, 2024.

Positive

• Distribution of $0.22 per share to stockholders
• 56.82% of distribution comes from Net Investment Income
• Average Annual Total Return of 12.30% for the 5-year period
• Current Fiscal Year Cumulative Total Return of 7.10%

Negative

• 20% of distribution classified as Return of Capital, which may impact tax implications for investors

Insights

Financial Analyst

The Mexico Fund's recent distribution announcement, while routine, offers some interesting insights for investors. The $0.22 per share distribution is part of the Fund's Managed Distribution Plan (MDP), which aims to provide a steady income stream to shareholders. However, what's particularly noteworthy is the composition of this distribution.

Breaking down the sources, we see that 56.82% comes from net investment income, which is a positive sign as it indicates the Fund is generating substantial returns from its underlying investments. The inclusion of both short-term (7.64%) and long-term (15.54%) capital gains suggests successful trading activities within the portfolio.

However, investors should pay attention to the 20% classified as return of capital. While this can be a tax-efficient way to distribute funds, it essentially means the Fund is returning a portion of investors' original investment. If this trend continues, it could potentially erode the Fund's asset base over time.

The Fund's performance metrics are also worth noting. With an average annual total return of 12.30% over the past five years, the Fund has shown solid performance. The current annualized distribution rate of 3.33% appears sustainable given the Fund's returns, but investors should monitor this closely in the context of the broader market environment.

Overall, while the distribution itself is not groundbreaking news, the underlying details provide valuable insights into the Fund's operations and strategy, which could be useful for investors in assessing its long-term prospects.

Investment Strategist

The Mexico Fund's latest distribution announcement reveals some intriguing aspects of its investment strategy and market positioning. The Fund's ability to maintain its Managed Distribution Plan in the current economic climate is noteworthy, especially considering the challenges faced by emerging markets.

The current fiscal year cumulative total return of 7.10% is particularly interesting. This figure, while positive, might be seen as modest in the context of the broader emerging markets rally we've witnessed in some sectors. It suggests that the Fund may be taking a more conservative approach or that its specific focus on Mexico might be facing some headwinds.

The cumulative distribution rate of 2.21% for the current fiscal year indicates that the Fund is on track to meet its distribution goals. However, investors should be aware that this rate, combined with the return of capital component, could potentially impact the Fund's NAV if not sufficiently offset by portfolio gains.

It's also worth noting the Fund's current annualized distribution rate of 3.33%. In the current low-yield environment, this rate may be attractive to income-focused investors. However, it's important to consider this in the context of the Fund's total return and the potential risks associated with emerging market investments.

The breakdown of distribution sources provides valuable insights into the Fund's income generation capabilities. The significant portion derived from net investment income is a positive sign, but the inclusion of capital gains and return of capital in the distribution mix suggests a complex strategy to meet distribution goals that investors should monitor closely.

COLUMBIA, Md., July 25, 2024 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF) announced that it will pay today a distribution of $0.22 per share in cash to stockholders of record as of July 17, 2024, according to the Fund´s Managed Distribution Plan (MDP).

As a general matter, 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 an estimate of the sources of the July 25, 2024, distribution and distributions paid in the current fiscal year:

Distribution Estimates	July 2024		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	$0.1250	56.82 %	$0.3750	56.82 %
Net Realized Short-Term Capital Gains	$0.0168	7.64 %	$0.0504	7.64 %
Net Realized Long-Term Capital Gains	$0.0342	15.54 %	$0.1026	15.54 %
Return of Capital	$0.0440	20.00 %	$0.1320	20.00 %
Total Distribution	$0.2200	100.00 %	$0.6600	100.00 %

Information regarding the Fund's performance and distribution rates is set forth below:

Average Annual Total Return for the 5-year period ended on June 30, 20242	12.30 %
Current Annualized Distribution Rate (current fiscal year)3	3.33 %
Current Fiscal Year Cumulative Total Return4	7.10 %
Cumulative Distribution Rate (current fiscal year)5	2.21 %

^[1] The Fund's current fiscal year began on November 1, 2023.
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 June 30, 2024, annualized as a percentage of the Fund's NAV at the same date.
⁴ Current Fiscal Year Cumulative Total Return is the percentage change in the Fund's NAV from November 1, 2023 through June 30, 2024, including distributions paid and assuming reinvestment of those distributions.
⁵ Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2023, through June 30, 2024) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of June 30, 2024.

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.

CONTACT:
Tofi Dayan
+5255-9138-3350
Email: investor-relations@themexicofund.com

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:https://www.prnewswire.com/news-releases/the-mexico-fund-inc-pays-distribution-302204309.html

SOURCE The Mexico Fund, Inc.

FAQ

What is the distribution amount per share for The Mexico Fund (MXF) in July 2024?

The Mexico Fund (MXF) announced a distribution of $0.22 per share to stockholders of record as of July 17, 2024, payable on July 25, 2024.

What is the breakdown of The Mexico Fund's (MXF) July 2024 distribution?

The distribution breakdown is 56.82% from Net Investment Income, 7.64% from Net Realized Short-Term Capital Gains, 15.54% from Net Realized Long-Term Capital Gains, and 20.00% from Return of Capital.

What is The Mexico Fund's (MXF) Average Annual Total Return for the 5-year period ended June 30, 2024?

The Mexico Fund's (MXF) Average Annual Total Return for the 5-year period ended June 30, 2024, is 12.30%.

What is The Mexico Fund's (MXF) Current Fiscal Year Cumulative Total Return as of June 30, 2024?

The Mexico Fund's (MXF) Current Fiscal Year Cumulative Total Return as of June 30, 2024, is 7.10%.