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): December 31, 2023

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) December 2023 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: January 8, 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	$347.45	Daily Average Number of Shares Traded²	25,548
NAV per share¹	$23.52	Outstanding Shares³	14,771,862
Closing price²	$19.08	Expense Ratio (10/31/2023)	1.35%
Discount	18.88%	Portfolio Turnover (10/31/2023)	13.73%

Performance¹	Cumulative			Annualized
Performance¹	1 Month	YTD	1 Year	3 Years	5 Years	10 Years	15 Years
MXF Market Price	9.40%	35.88%	35.88%	16.41%	12.65%	1.35%	8.85%
MXF NAV	8.89%	38.06%	38.06%	17.84%	13.34%	3.05%	9.02%
MSCI Mexico Index	9.30%	40.70%	40.70%	19.09%	12.99%	2.41%	7.33%

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 December 2023, the Fund repurchased no shares.

Top Ten Holdings (66.24% of Net Assets)
1 Fomento Económico Mexicano	12.10%	6 Cemex	4.37%
2 Grupo Financiero Banorte	11.87%	7 Gruma	3.96%
3 Grupo México	9.42%	8 Kimberly-Clark de México	3.69%
4 Wal-Mart de México	7.65%	9 Grupo Aeroportuario del Pacífico	3.42%
5 América Móvil	6.41%	10 Grupo Aeroportuario del Centro Norte	3.35%

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 positive returns during December 2023. The MSCI World Index and the MSCI Emerging Markets Index increased 4.8% and 3.7%, respectively, during the month. Major central banks maintained unchanged their reference interest rates; the Federal Reserve at a range of 5.25% - 5.50%, the Bank of England at 5.25% and the European Central Bank maintained its main refinancing rate at 4.50%. The DJIA and the S&P 500 increased 4.8% and 4.4%, respectively, while the yield on the 10-year Treasury note decreased 45 basis points to 3.88% and the U.S. dollar depreciated 2.1% (measured by the DXY Index⁴) during December 2023. In Mexico, the MSCI Mexico Index registered a strong increase of 9.3% and the Mexican peso appreciated 2.4% during the month, to Ps. $16.97, whereas the Fund’s NAV increased 8.9%, underperforming its benchmark.

During calendar year 2023, the Mexican equity market registered an outstanding performance, with the MSCI Mexico Index registering a total return⁵of 40.7%, while the Mexican peso appreciated 14.9%. These positive figures were driven by stronger than expected economic growth, attractive absolute and real interest rates and positive early signs of “Nearshoring” taking place. During the year, the Fund’s NAV registered a total return of 38.1%, underperforming its benchmark. During the 15-year period ended December 2023, the Fund’s NAV has generated an average annual return of 9.0%, versus a 7.3% return for its benchmark, a significant cumulative outperformance during this long-term period.

In local news, Mexico´s Central Bank (“Banxico”) maintained unchanged its overnight interest rate at 11.25%. Fitch ratings affirmed Mexico´s ‘BBB-’ credit rating with a stable outlook supported by prudent macroeconomic policy framework, solid and robust external finances, and debt ratios which are projected to be below the ‘BBB’ median.

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.

5 Performance figures included here take into account the reinvestment of distributions.

Cover	Dec. 31, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
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, Address Line Three
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