-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LRyEPMCebhQjegnR+r+K1+o8uhR7ADosZrYCEBDQADnu972abVAC1Fm6ZtQnCZnj +uHCKJDcOS2v2W1Lp2fCkg== 0000894189-09-004287.txt : 20091217 0000894189-09-004287.hdr.sgml : 20091217 20091217105323 ACCESSION NUMBER: 0000894189-09-004287 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20091031 FILED AS OF DATE: 20091217 DATE AS OF CHANGE: 20091217 EFFECTIVENESS DATE: 20091217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEXICO EQUITY & INCOME FUND INC CENTRAL INDEX KEY: 0000863900 IRS NUMBER: 133576061 STATE OF INCORPORATION: MD FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06111 FILM NUMBER: 091246376 BUSINESS ADDRESS: STREET 1: U.S. BANCORP FUND SERVICES, LLC STREET 2: 615 EAST MICHIGAN STREET, LC-2 CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4147654499 MAIL ADDRESS: STREET 1: U.S. BANCORP FUND SERVICES, LLC STREET 2: 615 EAST MICHIGAN STREET, LC-2 CITY: MILWAUKEE STATE: WI ZIP: 53202 FORMER COMPANY: FORMER CONFORMED NAME: MEXICO CONVERTIBLE ADVANTAGE FUND INC DATE OF NAME CHANGE: 19900807 FORMER COMPANY: FORMER CONFORMED NAME: MEXICO ADVANTAGE FUND INC DATE OF NAME CHANGE: 19900805 N-Q 1 mexeq_103109nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS mexeq_103109nq.htm
As filed with the Securities and Exchange Commission on December 17, 2009



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: July 31, 2010



Date of reporting period:  October 31, 2009
 
Item 1. Schedule of Investments.
THE MEXICO EQUITY AND INCOME FUND, INC.
            
 
            
Schedule of Investments
        
October 31, 2009
  
   
 
    
(Unaudited)
  
MEXICO - 103.94%
  
Shares
    
Value
  
             
COMMON STOCKS - 90.55%
            
             
Cement - 1.57%
            
Cemex SAB de C.V. CPO NPV (a)
     859,600     $ 896,464  
Grupo Cementos de Chihuahua, S.A. de C.V.
     34,260       98,574  
              995,038  
                 
Communications - 14.26%
                
America Movil, S.A. de C.V. - Class L
     3,380,899       7,464,031  
Megacable Holdings SAB de CV (a)
     747,657       1,544,719  
              9,008,750  
                 
Financial Groups - 3.49%
                
Corporativo GBM SAB de CV
     4,582,928       1,839,592  
Grupo Financiero Banorte, S.A.B. de C.V.
     111,000       364,094  
              2,203,686  
                 
Food, Beverage, and Tobacco - 10.20%
                
Fomento Economico Mexicano, S.A. de C.V.
     74,600       316,338  
Grupo Bimbo, S.A.B. de C.V.
     1,000,657       5,821,109  
Grupo Continental, S.A.
     130,000       305,216  
              6,442,663  
                 
Housing - 1.38%
                
Consorcio ARA, S.A. de C.V. (a)
     641,500       402,767  
Corp GEO S.A. de C.V. (a)
     175,901       466,005  
              868,772  
                 
Industrial Conglomerates - 11.11%
                
Alfa, S.A.B.
     161,600       829,189  
Industrias CH, S.A. - Class B (a)
     396,238       1,245,094  
Grupo Simec, S.A. de C.V. (a)
     501,170       1,222,963  
Kimberly-Clark de Mexico, S.A.B. de C.V.
     277,927       1,096,237  
Mexichem, S.A. de C.V.
     1,611,959       2,624,794  
              7,018,277  
                 
Infrastructure - 23.46%
                
Carso Infraestructura y Construccion, S.A. (a)
     2,695,868       1,486,390  
Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)
     2,777,666       6,096,507  
Grupo Mexicano de Desarrollo, S.A. (a)
     1,601,052       788,173  
Impulsora del Desarrollo y el Empleo en America Latina, S.A. de C.V. (a)
     3,187,385       3,140,614  
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)
     1,725,205       3,305,704  
              14,817,388  
                 
Insurance - 2.12%
                
Qualitas Compania de Seguros
     2,855,251       1,340,722  
              1,340,722  
                 
Mining - 9.88%
                
Grupo Mexico, S.A. - Series B
     2,443,857       4,856,712  
Industrias Penoles, S.A.
     74,835       1,383,601  
              6,240,313  
                 
Pharmaceuticals - 2.65%
                
Genomma Lab Internacional SA (a)
     1,004,777       1,674,153  
              1,674,153  
                 
Real Estate Developer - 5.25%
                
GMD Resorts SAB de CV (a)
     1,375,073       322,842  
Grupe, S.A. de C.V. (a)(b)
     3,279,986       2,993,379  
              3,316,221  
                 
Retailing - 3.12%
                
Wal-Mart de Mexico, S.A. de C.V. - Class V
     552,700       1,968,226  
              1,968,226  
                 
Waste Management - 2.06%
                
Promotora Ambiental, S.A. de C.V. (a)
     1,298,345       1,302,893  
              1,302,893  
                 
TOTAL COMMON STOCKS (Cost $64,575,446)
           $ 57,197,102  
                 
                 
Schedule of Investments (continued)
          
October 31, 2009
  
                 
CORPORATE BONDS - 4.31%
                
                 
Housing - 4.31%
                
Urbi, Desarrollos Urbanos, S.A. de C.V.
                
 8.500%, 04/19/2016 
     2,726,000     $ 2,726,000  
                 
TOTAL CORPORATE BONDS (Cost $2,243,658)
             2,726,000  
                 
SHORT-TERM INVESTMENTS - 9.08%
  
Principal
    
Value
  
                 
Mexican BACMEXT
     37,370,501 *   $ 2,829,941  
0.000% Coupon, 0.917% Effective Yield, 11/04/2009 (c)
                
Mexican INAFIN
     34,414,266 *     2,604,435  
0.000% Coupon, 2.965% Effective Yield, 11/10/2009 (c)
                
Mexican INAFIN
     3,988,225 *     301,862  
0.000% Coupon, 4.099% Effective Yield, 11/06/2009 (c)
                
                 
TOTAL SHORT-TERM INVESTMENTS (Cost $5,748,137)
             5,736,238  
                 
TOTAL MEXICO (Cost $72,567,241)
           $ 65,659,340  
                 
UNITED STATES - 0.29%
  
Shares
          
                 
INVESTMENT COMPANIES - 0.29%
                
                 
First American Treasury Obligation - Class A, 2.132%
     181,499     $ 181,499  
                 
TOTAL INVESTMENT COMPANIES (Cost $181,499)
             181,499  
                 
TOTAL UNITED STATES (Cost $181,499)
             181,499  
                 
TOTAL INVESTMENTS - 104.23% (Cost $72,748,740)
             65,840,839  
                 
LIABILITIES IN EXCESS OF OTHER ASSETS  - (4.23)%
             (2,671,754 )
                 
TOTAL NET ASSETS - 100.00%
           $ 63,169,085  
                 
 
Footnotes and Abbreviations
  
ADR - American Depository Receipts.
  
(a) Non-income producing security.
  
(b) Affiliated company.
  
(c) Effective yield based on the purchase price. The calculation assumes the security
  
     is held to maturity.
  
*   Principal Amount in Mexican Pesos
  
 
The cost basis of investments for federal income tax purposes at October 31, 2009 was as follows:
      
       
Cost of investments**
   $ 72,748,740  
Gross unrealized appreciation
     4,061,989  
Gross unrealized depreciation
     (10,969,890 )
Net unrealized depreciation
   $ (6,907,901 )
         
 
**Because tax adjustments are calculated annually, the above table reflects the tax adjustments outstanding at the Fund's previous
   fiscal year end. For the previous fiscal year's federal income tax information, please refer to the Notes to Financial Statements
   section in the Fund's most recent semi-annual or annual report.
 
TRANSACTIONS WITH AFFILIATES (Unaudited)
      
The following issuer is affiliated with the Fund; that is, the Fund held 5% or more of the outstanding voting shares during the period
  
from August 1, 2009 through October 31, 2009, as defined in Section (2)(a)(3) of the Investment Company Act of 1940.
  
       
Issuer Name
  
Grupe, S.A.de C.V.
  
       
August 1, 2009
      
    Shares
     3,467,818  
    Cost
   $ 4,994,372  
         
Gross Additions
        
    Shares
     —  
    Cost
   $ —  
         
Gross Deductions
        
    Shares
     187,832  
    Cost
   $ 242,523  
         
April 30, 2009
        
    Shares
     3,279,986  
    Cost
   $ 4,751,849  
    Market Value
   $ 2,993,379  
Realized gain (loss)
   $ 27,275  
Investment income
   $ —  
         
         
 
FAS 157 – Summary of Fair Value Exposure at October 31, 2009
  
     
Various inputs are used in determining the value of the Fund’s investments. These inputs are
  
summarized in the three broad levels listed below:
  
     
 
Level 1 - Quoted prices in active markets for identical securities.
  
 
Level 2 - Other significant observable inputs (including quoted prices for similar
  
 
  securities, interest rates, prepayment speeds, credit risk, etc.)
  
 
Level 3 - Significant unobservable inputs (including the Fund’s own assumptions in
  
 
  determining the fair value of investments.)
  
     
The inputs or methodology used for valuing securities are not an indication of the risk associated
  
with investing in those securities.
  
     
The following is a summary of the inputs used, as of October 31, 2009, in valuing the Fund’s investments carried at fair value:
  
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Equity
                        
Cement
   $ 995,038     $ —     $ —     $ 995,038  
Communications
     9,008,750       —       —       9,008,750  
Financial Groups
     2,203,687       —       —       2,203,687  
Food, Beverage, and Tobacco
     6,442,663       —       —       6,442,663  
Housing
     868,772       —       —       868,772  
Industrial Conglomerates
     7,018,277       —       —       7,018,277  
Infrastructure
     14,817,388       —       —       14,817,388  
Insurance
     1,340,722       —       —       1,340,722  
Mining
     6,240,313       —       —       6,240,313  
Pharmaceuticals
     1,674,153       —       —       1,674,153  
Real Estate Developer
     3,316,221       —       —       3,316,221  
Retailing
     1,968,225       —       —       1,968,225  
Waste Management
     1,302,893       —       —       1,302,893  
Total Equity
     57,197,102       —       —       57,197,102  
                                 
Corporate Bonds
                                
                                 
Housing
     —       2,726,000       —       2,726,000  
                                 
Short-Term Investments
     181,499       5,736,238       —       5,917,737  
Total Investments in Securities
   $ 57,378,601     $ 8,462,238     $ — #   $ 65,840,839  
                                 
FAS 161 – Disclosures about Derivative Instruments and Hedging Activities
                          
                                 
The fund was not invested in derivative securities or engaged in hedging activities as of October 31, 2009.
                  
 
 
 
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 10th, 2009                                                                 



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 10th, 2009                                                                 

By (Signature and Title)*    /s/ Gerald Hellerman                             
Gerald Hellerman, Chief Financial Officer

Date     December 10th, 2009                                                                 

* Print the name and title of each signing officer under his or her signature.


 
 
 
EX-99.CERT 2 certs.htm OFFICER CERTIFICATIONS certs.htm
 
CERTIFICATION
 
I, Maria Eugenia Pichardo, certify that:

1.  
I have reviewed this report on Form N-Q of The Mexico Equity and Income Fund, Inc.;

2.  
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;

3.  
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;

4.  
The registrant's 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 registrant's 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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's 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 registrant's 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 registrant's internal control over financial reporting.

Date:
 December 10th, 2009          
 
/s/ Maria Eugenia Pichardo       
 
Maria Eugenia Pichardo
President
 
 
 
CERTIFICATION
 
I, Gerald Hellerman, certify that:

1.  
I have reviewed this report on Form N-Q of The Mexico Equity and Income Fund, Inc.;

2.  
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;

3.  
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;

4.  
The registrant's 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 registrant's 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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's 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 registrant's 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 registrant's internal control over financial reporting.

Date:
 December 10th, 2009        
 
/s/ Gerald Hellerman          
 
Gerald Hellerman
Chief Financial Officer
 
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