-----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, OGSyWlZUN8f6Qc7HLchUTqg1AR8BSdz3Y2TSWEna3nA3cTw7afiWqIzAbnX6J0Dt o+Yp1I8pLvhAErudLPqvbw== 0000894189-10-002282.txt : 20100622 0000894189-10-002282.hdr.sgml : 20100622 20100622171010 ACCESSION NUMBER: 0000894189-10-002282 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100430 FILED AS OF DATE: 20100622 DATE AS OF CHANGE: 20100622 EFFECTIVENESS DATE: 20100622 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: 10911159 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_43010nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS mexeq_43010nq.htm
As filed with the Securities and Exchange Commission on June 22, 2010



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:  April 30, 2010
 
 
 
 
Item 1. Schedule of Investments.
Mexico Equity & Income Fund, Inc.
              
Schedule of Investments
              
April 30, 2010 (Unaudited)
              
               
   
Shares
      
Value
  
COMMON STOCKS - 94.56%
              
Beverages - 6.51%
              
Emboteladoras Arca, S.A.
     287,000       $ 1,083,921  
Fomento Economico Mexicano, S.A.B. de C.V.
     524,600         2,487,879  
Grupo Continental, S.A.
     637,100         1,705,522  
                5,277,322  
Chemicals - 2.90%
                  
Mexichem, S.A. de C.V.
     820,059         2,347,831  
Commercial Banks - 5.36%
                  
Corporativo GBM, S.A.B. de C.V.
     2,781,928         1,346,650  
Grupo Financiero Banorte, S.A. de C.V. - Class O
     723,000         3,001,869  
                4,348,519  
Commercial Services & Supplies - 1.89%
                  
Promotora Ambiental, S.A. de C.V. (a)
     1,297,745         1,528,340  
Construction & Engineering - 12.63%
                  
Carso Infraestructura y Construccion, S.A. de C.V. (a)
     3,298,368         2,145,825  
Grupo Mexicano de Desarollo, S.A. (a)
     1,452,351         1,297,558  
Impulsora del Desarrollo y el Empleo en America Latina, S.A. de C.V. (a)
     2,226,785         2,808,745  
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)
     1,602,305         3,988,763  
                10,240,891  
Consumer Finance - 2.75%
                  
Financiera Independencia S.A.B. de C.V. (a)
     2,072,600         2,228,774  
Food Products - 2.96%
                  
Grupo Bimbo, S.A.B. de C.V.
     187,957         1,502,160  
Grupo Comercial Chedraui
     32,906         90,869  
Grupo Herdez, S.A.B.
     545,600         809,609  
                2,402,638  
Food & Staples Retailing - 4.94%
                  
Wal-Mart de Mexico
     1,720,000         4,003,756  
Hotels, Restaurants & Leisure - 6.33%
                  
GMD Resorts, S.A.B. de C.V. (a)
     1,358,073         430,180  
Grupe, S.A. de C.V. (a) (b)
     3,231,886         4,698,634  
                5,128,814  
Household Durables - 2.71%
                  
Consorcio ARA, S.A. de C.V.
     3,202,000         2,200,160  
Industrial Conglomerates - 4.08%
                  
Alfa, S.A. - Class A
     425,300         3,308,858  
Insurance - 2.53%
                  
Qualita Compania de Seguros
     2,968,651         2,049,465  
Metals & Mining - 8.41%
                  
Grupo Mexico, S.A. - Series B
     2,594,157         6,816,056  
Pharmaceuticals - 13.40%
                  
Genomma Lab Internacional SA (a)
     3,310,877         10,866,620  
Wireless Telecommunication Services - 17.16%
                  
America Movil, S.A. de C.V. - Class L
     5,388,199         13,907,852  
TOTAL COMMON STOCKS (Cost $78,201,895)
             $ 76,655,896  
                   
CAPITAL DEVELOPMENT CERTIFICATES - 3.01%
                  
Atlas Discovery Trust II
     300,000       $ 2,436,598  
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $2,317,515)
             $ 2,436,598  
                   
   
Principal
            
   
Amount
      
Value
  
CORPORATE BONDS - 1.99%
                  
Housing - 1.99%
                  
Urbi, Desarrollos Urbanos, S.A. de C.V.
                  
    8.500%, 04/19/2016 (c)
   $ 1,521,000         1,616,823  
TOTAL CORPORATE BONDS (Cost $1,264,690)
             $ 1,616,823  
                   
SHORT TERM INVESTMENTS - 4.20%
                  
Commercial Paper - 3.78%
                  
Mexican INAFIN
                  
0.000% Coupon, 4.732% Effective Yield, 05/04/2010 (c)
     8,506,759 *       690,656  
Mexican INAFIN
                  
0.000% Coupon, 4.740% Effective Yield, 05/05/2010 (c)
     554,694 *       45,029  
Mexican INAFIN
                  
0.000% Coupon, 4.741% Effective Yield, 05/07/2010 (c)
     28,753,032 *       2,334,432  
TOTAL COMMERCIAL PAPER (Cost $3,076,757)
             $ 3,070,117  
                   
INVESTMENT COMPANIES - 0.42%
                  
First American Treasury Obligation - Class A
   $ 343,501         343,501  
TOTAL INVESTMENT COMPANIES (Cost $343,501)
             $ 343,501  
                   
TOTAL SHORT TERM INVESTMENTS (Cost $3,420,258)
             $ 3,413,618  
Total Investments  (Cost $85,204,358) - 103.76%
             $ 84,122,935  
Liabilities in excess of other assets - (3.76)%
               (3,051,857 )
TOTAL NET ASSETS - 100.00%
             $ 81,071,078  
                   
 
Percentages are stated as a percent of net assets.
      
         
(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.
      
(d)
Variable Rate
      
*   Principal amount in Mexican Pesos
      
         
The cost basis of investments for federal income tax purposes at April 30, 2010 was as follows:
      
         
Cost of investments**
   $ 85,204,358  
Gross unrealized appreciation
     5,184,547  
Gross unrealized depreciation
     (6,265,970 )
Net unrealized depreciation
   $ (1,081,423 )
           
**Because tax adjustments are calculated annually, the above table does not reflect tax adjustments.
        
For the previous fiscal year's federal income tax information, please refer to the Notes to Financial
        
Statements section of 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 April 30, 2010, 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
     (235,932 )
    Cost
   $ (304,628 )
         
April 30, 2010
        
    Shares
     3,231,886  
    Cost
   $ 4,689,744  
    Market Value
   $ 4,698,634  
Realized gain (loss)
   $ 19,111  
Investment income
   $ —  
         
 
FAS 157 – Summary of Fair Value Exposure at April 30, 2010
   
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 April 30, 2010, in valuing the Fund’s investments
carried at fair value:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Equity
                        
Beverages
   $ 5,277,322     $ —     $ —     $ 5,277,322  
Chemicals
     2,347,831       —       —       2,347,831  
Commercial Banks
     4,348,519       —       —       4,348,519  
Commercial Services & Supplies
     1,528,340       —       —       1,528,340  
Construction & Engineering
     10,240,891       —       —       10,240,891  
Consumer Finance
     2,228,774       —       —       2,228,774  
Food Products
     2,402,638       —       —       2,402,638  
Food & Staples Retailing
     4,003,756                       4,003,756  
Hotels, Restaurants & Leisure
     5,128,814       —       —       5,128,814  
Household Durables
     2,200,160       —       —       2,200,160  
Industrial Conglomerates
     3,308,858       —       —       3,308,858  
Insurance
     2,049,465       —       —       2,049,465  
Metals & Mining
     6,816,056                       6,816,056  
Pharmaceuticals
     10,866,620       —       —       10,866,620  
Wireless Telecommunication Services
     13,907,852       —       —       13,907,852  
Total Equity
     76,655,896       —       —       76,655,896  
                                 
Capital Development Certificates
       2,436,598               2,436,598  
                                 
Corporate Bonds
                                
Housing
     —       1,616,823       —       1,616,823  
                                 
Short-Term Investments
     343,501       3,070,117       —       3,413,618  
Total Investments in Securities
   $ 76,999,397     $ 7,123,538     $ —     $ 84,122,935  
                                 

 
 
 
 
 
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    June 17, 2010                                                                          



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    June 17, 2010                                                                          

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

Date    June 19, 2010                                                                          

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



 
 
 
 
 
 
 
 
EX-99.CERT 2 certs.htm OFFICER CERTIFICATION Unassociated Document
 
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:
 June 17 , 2010             
 
 /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:  
 June 19, 2010               
 
/s/ Gerald Hellerman              
 
Gerald Hellerman
Chief Financial Officer
 
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