N-Q 1 mexico_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS




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


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 



Investment Company Act file number 811-06111



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



615 East Michigan Street
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)



Mr. Gerald Hellerman
C/O U.S. Bancorp Fund Services, LLC
615 E. Michigan Street
Milwaukee, WI 53202
(Name and address of agent for service)



866-700-6104
Registrant's telephone number, including area code



Date of fiscal year end: 7/31/2006



Date of reporting period: 10/31/2005

 
Item 1. Schedule of Investments.

 
THE MEXICO EQUITY AND INCOME FUND, INC.
      
 
 
      
 
Schedule of Investments (unaudited)
    October 31, 2005
   
 
    
 
MEXICO - 99.80%
Shares
  
Value
         
 
COMMON STOCKS - 97.93%
     
         
 
Cement - 10.02%
      
 
Cemex, S.A. de C.V. CPO
901,937
#
4,693,869
 
Grupo Cementos de Chihuahua, S.A. de C.V.
350,000
 
953,410
       
5,647,279
         
 
Communications - 16.82%
      
 
America Movil, S.A. de C.V. - Class L
2,864,100
 
3,752,235
 
America Movil, S.A. de C.V. - Class L ADR
114,070
 
2,994,338
 
America Telecom, S.A. de C.V. - Class A1*
686,000
 
2,734,968
       
9,481,541
         
 
Construction - 6.53%
      
 
Carso Infraestructura y Construccion, S.A.*
2,208,800
 
1,646,540
 
Empresas ICA, S.A. de C.V.*
5,230,500
 
2,031,968
       
3,678,508
         
 
Financial Groups - 2.05%
      
 
Grupo Financiero Banorte, S.A. de C.V. - Class O
135,600
 
1,156,161
         
 
Food, Beverage, and Tobacco - 12.42%
      
 
Alsea, S.A. de C.V.
980,953
 
2,457,499
 
Alsea II, S.A. de C.V. - Class A^
29,441
 
65,512
 
Embotelladoras Arca, S.A.
230,000
 
501,349
 
Fomento Economico Mexicano, S.A. de C.V. UBD
205,723
 
1,396,982
 
Gruma, S.A. de C.V. - Class B
693,200
 
1,800,244
 
Grupo Modelo, S.A. de C.V. - Class C
254,500
 
781,280
       
7,002,866
         
 
Housing - 16.05%
      
 
Corporacion GEO, S.A., de C.V. - Class B*
785,200
 
2,428,656
 
SARE Holding, S.A. de C.V. - Class B*
4,408,806
 
4,537,365
 
Urbi, Desarrollos Urbanos, S.A. de C.V.*
325,400
 
2,081,739
       
9,047,760
         
 
Industrial Conglomerates - 10.77%
      
 
Alfa, S.A. - Class A
107,400
 
624,156
 
Grupo Carso, S.A. de C.V. - Class A1
338,000
 
721,723
 
Industrias CH, S.A. - Class B*
1,012,400
 
2,112,002
 
Mexichem, S.A. de C.V.
2,090,000
 
2,616,012
       
6,073,893
         
 
Media - 9.51%
      
 
Groupo Televisa, S.A. ADR
25,100
 
1,834,810
 
Grupo Televisa, S.A. CPO
966,100
 
3,524,736
       
5,359,546
         
 
Mining - 4.85%
      
 
Grupo Mexico, S.A. de C.V. - Class B
1,417,800
 
2,735,563
         
         
 
 
 
THE MEXICO EQUITY AND INCOME FUND, INC.
      
         
 
Schedule of Investments (unaudited) (continued)
    
October 31, 2005
         
 
COMMON STOCKS (continued)
Shares
 
Value
 
Retailing - 6.03%
      
 
Wal-Mart de Mexico, S.A. de C.V. - Class V
695,984
 
3,398,774
         
 
Transportation Sector - 2.88%
      
 
Grupo Aeroportuario del Sureste, S.A. de C.V. - Class B
499,300
 
1,625,370
         
         
 
TOTAL COMMON STOCKS (Cost $46,427,339)
    
55,207,261
         
 
CORPORATE BONDS - 1.58%
Titles
    
         
 
TVACB-04, 12.1800%, 12/15/2011^
11,265,000
 $
 891,152
       
 
 
TOTAL CORPORATE BONDS (Cost $1,000,000)
    
891,152
         
 
INVESTMENT COMPANIES - 0.29%
Shares
    
         
 
GBM Fondo Corporativo de Liquidez Inmediata, S.A. de C.V.
      
 
SIID para Personas Morales - Class B*
1,026,879
 
161,989
 
 
      
 
TOTAL INVESTMENT COMPANIES (Cost $159,159)
    
161,989
 
 
      
 
TOTAL MEXICO (Cost $47,586,498)
    
56,260,402
         
 
UNITED STATES - 0.24%
      
         
 
INVESTMENT COMPANIES - 0.24%
      
         
 
First American Treasury Obligations Fund, 3.1206% - Class A
134,562
$
 134,562
         
 
TOTAL UNITED STATES (Cost $134,562)
    
134,562
         
 
TOTAL INVESTMENTS - 100.04% (Cost $47,721,060)
    
56,394,964
         
 
OTHER LIABILITIES IN EXCESS OF ASSETS - (0.04)%
    
(22,194)
         
 
TOTAL NET ASSETS - 100.00%
  
 $
56,372,770
         
 
Footnotes and Abbreviations
      
 
* - Non-Income producing security.
     
 
ADR - American Depository Receipts.
      
 
^ - Fair valued security.
      
         
         
 
The cost basis of investments for federal income tax purposes at October 31, 2005 was as follows:
  
   
Cost of investments*
$47,706,719
Gross unrealized appreciation
9,173,972
Gross unrealized depreciation
(485,727)
Net unrealized appreciation
$8,688,245
   
* Tax adjustments are calculated annually at July 31, 2005.
  
   
 
For certain federal income tax information, as well as other information regarding securities valuation and other significant accounting policies, please refer to the footnotes to the Fund’s most recent semi-annual or annual report.
 
 
Item 2. Controls and Procedures.
 
(a)  
The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)  
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 
Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)). Filed herewith.




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.


(Registrant) The Mexico Equity and Income Fund, Inc.                 

By (Signature and Title) /s/ Maria Eugenia Pichardo                     
Maria Eugenia Pichardo, President

Date December 19, 2005                                                            



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 (Signature and Title) /s/ Maria Eugenia Pichardo                    
Maria Eugenia Pichardo, President

Date December 19, 2005                                                            

By (Signature and Title) /s/ Gerald Hellerman                              
Gerald Hellerman, Chief Financial Officer
 
Date December 19, 2005