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

Managed Distribution Plan (“MDP”)

On June 8, 2020, the Fund announced that its Board of Directors (the “Board”) decided to temporarily suspend the Fund´s MDP. Global financial markets and overall economic activity have been severely affected by the “Covid-19” pandemic. Under this scenario of high uncertainty, the Board considered that it is in the best interest of Fund stockholders to temporarily suspend the Fund´s MDP in order to preserve capital. Nevertheless, the Board will continue to review the Fund´s MDP regularly in order to reinstate it as soon as deemed advisable by the Board. In addition, the Fund will continue to distribute to shareholders all of its net investment income and net realized capital gains, if any, at least annually, even while the Fund´s MDP remains suspended. 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	$183.25	Daily Average Number of Shares Traded²	33,708
NAV per share¹	$12.21	Outstanding Shares³	15,005,224
Closing price²	$10.26	Expense Ratio (4/30/2020)	1.52%
Discount	15.97%	Portfolio Turnover (4/30/2020)	11.78%

Performance¹	Cumulative			Annualized
Performance¹	1 Month	YTD	1 Year	3 Years	5 Years	10 Years
MXF Market Price	0.88%	-22.42%	-16.81%	-11.15%	-4.66%	-0.81%
MXF NAV	0.91%	-19.60%	-14.44%	-10.28%	-4.59%	-0.72%
MSCI Mexico Index	0.92%	-25.06%	-20.63%	-13.37%	-6.06%	-2.62%

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 September 2020, the Fund repurchased no shares.

Top Ten Holdings (63.54% of Net Assets)
1 América Móvil	14.21%	6 Alfa	4.87%
2 Fomento Económico Mexicano	7.69%	7 Orbia Advance Corporation	4.78%
3 Grupo México	7.36%	8 Gruma	4.23%
4 Wal-Mart de México	6.69%	9 La Comer	3.75%
5 Grupo Financiero Banorte	6.24%	10 Cemex	3.72%

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

Most global equity markets decreased during September 2020 after recording five consecutive months of positive performance. The MSCI World Index and the MSCI Emerging Markets Index decreased 3.6% and 1.8%, respectively, during the month. In the U.S., the Federal Reserve maintained unchanged its target interest rate at a range of between 0.00% and 0.25% and mentioned that it will continue to purchase government securities at least at the current pace. In addition, it provided guidance in which it expects the reference interest rate to maintain at current levels for a prolonged period of time. The DJIA and the S&P 500 decreased 2.3% and 3.9%, respectively, during September 2020, the yield on the U.S. 10-year Treasury note decreased 2 basis points to 0.68% and the U.S. dollar appreciated 1.9% (measured by the DXY Index⁴). The MSCI Mexico Index increased 0.9% during the month, while the Mexican peso depreciated 1.0% to Ps. $22.11.

In local news, Mexico´s Central Bank decreased its reference interest rate 25 basis points to 4.25%, for a cumulative reduction of 300 basis points so far this year. The Ministry of Finance presented to Congress the Government´s budget for 2021 in which it expects to maintain a healthy fiscal balance; it estimates a primary balance (which excludes interest payments) of 0.0% of GDP, while the estimated figure for 2020 was updated to a surplus of 0.2% of GDP from a deficit of 0.6% of GDP. Lastly, the labor market has continued its gradual recovery as 92,390 formal jobs were created during the month of August.

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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.