UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
INVESTMENT COMPANY
Investment Company Act file number 811-03170
THE MEXICO FUND, INC.
(Exact name of Registrant as specified in charter)
1900 K Street, NW
Washington, DC 20006
(Address of principal executive offices) (Zip code)
Alberto Osorio
77 Aristoteles Street, 3rd Floor
Polanco D.F. 11560 Mexico
(Name and Address of Agent for Service)
Registrants telephone number, including area code: (202) 261-7941
Date of fiscal year end: October 31
Date of reporting period: January 31, 2016
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (OMB) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments.
As of January 31, 2016 (Unaudited)
Shares Held | COMMON STOCK - 98.08% | Value | Percent of Net Assets |
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Airports |
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2,150,000 | Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Series B |
$10,020,628 | 3.64% | |||||||||
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Auto Parts |
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4,000,000 | Nemak, S.A.B. de C.V. Series A |
5,094,303 | 1.85 | |||||||||
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Beverages |
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1,500,000 | Arca Continental, S.A.B. de C.V. |
8,981,029 | 3.27 | |||||||||
3,200,000 | Fomento Económico Mexicano, S.A.B. de C.V. Series UBD |
30,364,344 | 11.04 | |||||||||
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39,345,373 | 14.31 | |||||||||||
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Building Materials |
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21,500,000 | Cemex, S.A.B. de C.V. Series CPO |
9,736,835 | 3.54 | |||||||||
2,730,000 | Elementia, S.A.B. de C.V. |
3,265,778 | 1.19 | |||||||||
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13,002,613 | 4.73 | |||||||||||
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Chemical Products |
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3,800,000 | Alpek, S.A.B. de C.V. Series A |
4,889,957 | 1.78 | |||||||||
2,560,000 | Mexichem, S.A.B. de C.V. |
5,290,653 | 1.92 | |||||||||
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10,180,610 | 3.70 | |||||||||||
Construction and Infrastructure |
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800,000 | Promotora y Operadora de Infraestructura, S.A.B. de C.V. |
9,157,374 | 3.33 | |||||||||
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Consumer Products |
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5,000,000 | Kimberly-Clark de México, S.A.B. de C.V. Series A |
11,973,601 | 4.35 | |||||||||
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Financial Groups |
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580,000 | Banregio Grupo Financiero, S.A.B. de C.V. Series O |
2,728,865 | 0.99 | |||||||||
3,500,000 | Grupo Financiero Banorte, S.A.B. de C.V. Series O |
18,292,050 | 6.65 | |||||||||
3,700,000 | Grupo Financiero Santander México, S.A.B. de C.V. Series B |
5,705,354 | 2.08 | |||||||||
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26,726,269 | 9.72 | |||||||||||
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Food |
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600,000 | Gruma, S.A.B. de C.V. Series B |
9,106,122 | 3.31 | |||||||||
1,700,000 | Grupo Bimbo, S.A.B. de C.V. Series A |
4,756,413 | 1.73 | |||||||||
2,200,000 | Grupo Lala, S.A.B. de C.V. Series B |
5,219,783 | 1.90 | |||||||||
1,000,000 | Industrias Bachoco, S.A.B. de C.V. Series B |
3,614,172 | 1.31 | |||||||||
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22,696,490 | 8.25 | |||||||||||
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Holding Companies |
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6,350,000 | Alfa, S.A.B. de C.V. Series A |
11,825,698 | 4.30 | |||||||||
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Media |
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2,200,000 | Grupo Televisa, S.A.B. Series CPO |
11,678,900 | 4.25 | |||||||||
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Mining |
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3,750,000 | Grupo México, S.A.B. de C.V. Series B |
7,283,986 | 2.65 | |||||||||
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Real Estate |
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2,340,000 | Corporación Inmobiliaria Vesta, S.A.B. de C.V. |
3,363,996 | 1.22 | |||||||||
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Shares Held | Value | Percent of Net Assets |
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Restaurants | ||||||||||||
2,300,000 | Alsea, S.A.B. de C.V. |
8,155,083 | 2.97 | |||||||||
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Retail | ||||||||||||
650,000 | El Puerto de Liverpool, S.A.B. de C.V. Series C-1 |
7,767,045 | 2.82 | |||||||||
1,600,000 | Grupo Rotoplas, S.A.B. de C.V. |
2,521,084 | 0.92 | |||||||||
10,570,000 | Wal-Mart de México, S.A.B. de C.V. |
26,608,157 | 9.68 | |||||||||
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36,896,286 | 13.42 | |||||||||||
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Steel | ||||||||||||
350,000 | Ternium, S.A. |
4,158,092 | 1.51 | |||||||||
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Stock Exchange | ||||||||||||
1,600,000 | Bolsa Mexicana de Valores, S.A.B. de C.V. Series A |
2,178,223 | 0.79 | |||||||||
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Telecommunications Services | ||||||||||||
47,500,000 | América Móvil, S.A.B. de C.V. Series L |
33,552,868 | 12.20 | |||||||||
4,000,000 | Telesites, S.A.B. de C.V. Series L |
2,432,276 | 0.88 | |||||||||
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35,985,144 | 13.08 | |||||||||||
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Total Common Stock |
$269,722,669 | 98.08% | ||||||||||
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Principal Amount |
SHORT-TERM SECURITIES 1.72% | |||||||||||
Repurchase Agreements |
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$4,037,380 | BBVA Bancomer, S.A., 3.22%, dated 1/29/16, due 2/02/16 repurchase price $4,038,825 collateralized by BPA 182 (Bonds issued by the Mexican Government). | $4,037,380 | 1.47% | |||||||||
Time Deposits |
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$690,081 | Comerica Bank, 0.22%, dated 1/29/16, due 2/1/16 |
690,081 | 0.25 | |||||||||
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Total Short-Term Securities |
$4,727,461 | 1.72% | ||||||||||
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Total Investments |
274,450,130 | 99.80 | ||||||||||
Other Assets in Excess of Liabilities |
562,260 | 0.20 | ||||||||||
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Net Assets Equivalent to $18.28 per share on 15,044,336 shares of capital stock outstanding. | $275,012,390 | 100.00% | ||||||||||
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As of January 31, 2016, the cost of investments for federal income tax purposes was $326,020,907. Gross unrealized appreciation of investments was $18,046,946 and gross unrealized depreciation of investments was $69,617,724 resulting in net unrealized depreciation on investments of $51,570,778, excluding foreign currency transactions. The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to wash sale loss deferrals.
Supplemental Information
Effective November 1, 2008, the Fund adopted authoritative guidance under GAAP which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The Fund has determined that the implementation did not have a material impact on the Fund´s financial statements.
This guidance establishes a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund´s own market assumptions (unobservable inputs).
These inputs are used in determining the value of the Funds investments and are summarized in the following fair value hierarchy:
| Level 1quoted prices in active markets for identical securities |
| Level 2other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| Level 3significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. An investment´s level within the fair value hierarchy is based on the lowest level of any input, both individually and in aggregate, that is significant to the fair value measurement.
The following is a summary of the inputs used as of January 31, 2016, in valuing the Funds assets and liabilities carried at fair value:
Valuation Inputs | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | ||||||||||||
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ASSETS: |
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Investments in Securities: |
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Equity Investments(a) |
$ | 269,722,669 | - | - | $ | 269,722,669 | ||||||||||
Short Term Investments(b) |
- | $ | 4,727,461 | - | $ | 4,727,461 | ||||||||||
Total Investments in Securities |
$ | 269,722,669 | $ | 4,727,461 | - | $ | 274,450,130 |
(a)For detailed industry descriptions, see the accompanying Schedule of Investments.
(b)These assets consist of time deposits and repurchase agreements with maturities of one business day. They are classified as Level 2 solely as a result of the Fund´s valuation technique for short-term investments, using amortized cost which approximates fair value, instead of quoted prices in active markets, and thereby may not present any higher risk than Level 1 assets.
The following is a reconciliation of the change in value of Level 3 assets (for which significant unobservable inputs were used to determine fair value):
Investments in Securities |
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Balance as of 10/31/15 |
$ | - | ||
Realized gain (loss) |
- | |||
Change in unrealized appreciation (depreciation) |
- | |||
Net Purchases (Sales) |
- | |||
Transfers in and/or (out) of Level 3 |
$ | - | ||
Balance as of 1/31/16 |
- |
Item 2. Controls and Procedures.
(a) Based on an evaluation of Registrants Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) (the Disclosure Controls), as of a date within 90 days prior to the filing date (the Filing Date) of this Form N-Q (the Report), the Registrants Principal Executive Officer and Principal Financial Officer have concluded that the Disclosure Controls are effectively designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the Filing Date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrants management, including the Registrants Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no changes in the Registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrants last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 3. Equity Shelf Program.
During the fiscal quarter ended January 31, 2015, the Fund did not sell shares of its common stock through its Equity Shelf Program (ESP). Under the Equity Distribution Agreement, the commissions paid by the Fund to the sales agent, UBS Securities LLC, amounted to $0 during the fiscal quarter.
Item 4. Exhibits.
Filed as exhibits herewith are separate certifications for Registrants Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(a) under Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
THE MEXICO FUND, INC. | ||
By: | /s/ Alberto Osorio | |
Alberto Osorio | ||
President and Principal Executive Officer | ||
March 30, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Alberto Osorio | |
Alberto Osorio | ||
President and Principal Executive Officer | ||
March 30, 2016 | ||
By: | /s/ Alberto Gómez Pimienta | |
Alberto Gómez Pimienta | ||
Treasurer and Principal Financial Officer | ||
March 30, 2016 |
Ex 99.CERT
I, Alberto Osorio, certify that:
I. | I have reviewed this report on Form N-Q of THE MEXICO FUND, INC.; |
II. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
III. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; |
IV. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
A. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
B. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
C. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
D. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
V. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
A. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
B. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: March 30, 2016
/s/ Alberto Osorio |
Alberto Osorio |
President and Principal Executive Officer |
Ex 99.CERT
I, Alberto Osorio, certify that:
I. | I have reviewed this report on Form N-Q of THE MEXICO FUND, INC.; |
II. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
III. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; |
IV. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
A. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
B. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
C. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
D. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
V. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
A. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
B. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: March 30, 2016
/s/ Alberto Osorio |
Alberto Osorio |
Principal Financial Officer* |
* Mr. Osorio performs the functions of principal financial officer of the Fund solely for purposes of Section 302 of the Sarbanes Oxley Act of 2002.