Form 8-K - Current report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 30, 2024

The Mexico Fund, Inc.
(Exact name of registrant as specified in its charter)

Maryland	811-02409	13-3069854
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

6700 Alexander Bell Drive, Suite 200

Columbia, Maryland 21046

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:

(614) 469-3265

(none)
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MXF	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure

Pursuant to Regulation FD Rules 100-103, The Mexico Fund, Inc. (the “Fund”) furnishes the Monthly Summary Report of the Fund’s Investment Adviser.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibit is filed as part of this report:

(i) November 2024 Monthly Summary Report

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		The Mexico Fund, Inc.

Date:	December 6, 2024


		By:	/s/ Tofi Dayan
			Tofi Dayan
			Treasurer

The Mexico Fund, Inc. 8-K

Exhibit 99(i)

Description

The Mexico Fund, Inc. (the “Fund”) 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 Exchanges. 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. The Fund’s shares are listed and traded on the New York Stock Exchange (“NYSE”) under the symbol “MXF.”

Managed Distribution Plan (“MDP”)

The Board of Directors of the Fund has authorized quarterly distributions of $0.22 per share under the MDP. With each distribution, the Fund will issue a notice to stockholders and an accompanying press release, which will provide detailed information regarding the amount and composition of the distribution and other information required by the Fund’s MDP exemptive order. The Fund’s Board of Directors may amend or terminate the MDP at any time without prior notice to stockholders. You should not draw any conclusions about the Fund’s investment performance from the amount of distributions or from the terms of the Fund’s MDP.

Highlights

Total Net Assets (million)¹	$251.15	Daily Average Number of Shares Traded²	83,181
NAV per share¹	$17.00	Outstanding Shares³	14,771,862
Closing price²	$13.55	Expense Ratio (4/30/2024)	1.34%
Discount	20.29%	Portfolio Turnover (4/30/2024)	6.33%

Performance¹	Cumulative			Annualized
Performance¹	1 Month	YTD	1 Year	3 Years	5 Years	10 Years	15 Years
MXF Market Price	-3.28%	-25.07%	-18.02%	3.96%	5.13%	-0.63%	3.89%
MXF NAV	-3.47%	-24.61%	-17.91%	5.12%	5.99%	0.60%	3.81%
MSCI Mexico Index	-3.62%	-25.23%	-18.27%	5.16%	5.37%	-0.28%	2.38%

These figures represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, at the time of sale, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above.

1 Source: Impulsora del Fondo México, S.C. Performance figures take into account reinvestments of distributions.

2 Source: NYSE. Shares traded figure represents average volume traded on U.S. consolidated markets during the month.

3 During November 2024, the Fund repurchased no shares.

Top Ten Holdings (66.17% of Net Assets)
1 Grupo Financiero Banorte	11.64%	6 Cemex	4.57%
2 Fomento Económico Mexicano	10.83%	7 Gruma	4.04%
3 Grupo México	10.76%	8 Grupo Aeroportuario del Pacífico	3.67%
4 Wal-Mart de México	8.43%	9 Alfa	3.48%
5 América Móvil	5.35%	10 Grupo Aeroportuario del Centro Norte	3.40%

Holdings are subject to change and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities shown.

Fund Manager´s Comments

Global equity markets registered mixed returns in November 2024. The MSCI World Index increased 4.5%, while the MSCI Emerging Markets Index decreased 3.7% during the month. Major central banks kept easing their monetary policies; both the Federal Reserve and the Bank of England decreased their reference interest rates by 25 basis points, to a range of 4.50% - 4.75% and 4.75%, respectively.

In the United States, Presidential elections were held on November 5^th, 2024, resulting in Mr. Donald Trump, the Republican Party candidate, being elected. On November 25^th, 2024, Mr. Trump announced that he plans to impose a 25% tariff on all products entering the U.S. from Canada and Mexico, and an additional 10% tariff on goods from China, starting January 20^th, 2025, claiming that illegal immigration and drug trafficking are creating border security concerns and encouraging Mexico and Canada to act against these issues. The President of Mexico has expressed her willingness for dialogue and cooperation to work on these issues and reach an agreement on tariffs. The DJIA and the S&P 500 increased 7.5% and 5.7%, respectively, while the yield on the 10-year Treasury note decreased 12 basis points to 4.17% and the U.S. dollar appreciated 1.7% (measured by the DXY Index⁴) during November 2024.

In Mexico, the MSCI Mexico Index decreased 3.6% and the Mexican peso depreciated 1.7% during the month to Ps. $20.38, whereas the Fund’s NAV decreased 3.5%, outperforming its benchmark. Concerns on the tariffs mentioned above were behind the negative performance of Mexican financial assets during the month. In local news, Mexico´s Central Bank (“Banxico”) also decreased its reference interest rate by 25 basis points to 10.25%, while GDP for the third quarter of 2024 registered an annual growth of 1.6%. The Government presented its 2025 budget where it emphasized its goal of fiscal consolidation, expecting a decrease in total public sector requirements (broadest measure of the public deficit) from an expected 5.9% of GDP in 2024 to 3.9% of GDP in 2025. Moody´s revised its sovereign credit outlook of Mexico to negative from stable, maintaining its ‘Baa2’ credit rating; however, Mexico maintains its investment grade credit rating.

The information presented in this report has been derived from the sources indicated. Neither The Mexico Fund, Inc. nor its Adviser, Impulsora del Fondo México, S.C., has independently verified or confirmed the information presented herein.

Important Risk Disclosure

All performance shown is historical. Closed-end funds are traded on the secondary market through one of the stock exchanges. Shares of closed-end funds may trade above (premium) or below (discount) the NAV of the fund’s portfolio. The NAV is the value of an entity’s assets less the value of its liabilities. The Market Price is the current price at which an asset can be bought or sold. There is no assurance that the Fund will achieve its investment objective.

An investment in the Fund entails special risk considerations, including among others the risks of foreign investments, Mexican investments, market illiquidity and volatility, market corrections, risks associated with the Mexican economy, political factors and security, currency exchange rate fluctuations, NAV discount risk, foreign custody risk, dollar denominated investments risk and risks associated with the concentration of the Mexican equity market. Investors should consider their investment goals, time horizons and risk tolerance before investing in the Fund. An investment in the Fund is not appropriate for all investors, and the Fund is not intended to be a complete investment program. Investors should carefully review and consider the Fund’s investment objective, risks, charges and expenses before investing.

4 DXY Index computes the value of the U.S. dollar relative to a basket of foreign currencies.

Cover	Nov. 30, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 30, 2024
Entity File Number	811-02409
Entity Registrant Name	The Mexico Fund, Inc.
Entity Central Index Key	0000065433
Entity Tax Identification Number	13-3069854
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	6700 Alexander Bell Drive
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Columbia
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21046
City Area Code	614
Local Phone Number	469-3265
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	MXF
Security Exchange Name	NYSE
Entity Emerging Growth Company	false