0000894189-11-002681.txt : 20110621 0000894189-11-002681.hdr.sgml : 20110621 20110621114005 ACCESSION NUMBER: 0000894189-11-002681 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110430 FILED AS OF DATE: 20110621 DATE AS OF CHANGE: 20110621 EFFECTIVENESS DATE: 20110621 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: 11922733 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_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS mexeq_nq.htm
As filed with the Securities and Exchange Commission on June 21, 2011


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)


877-785-0367
Registrant's telephone number, including area code



Date of fiscal year end: July 31, 2011
 

Date of reporting period: April 30, 2011


 
 
 
 
Item 1. Schedule of Investments.
 
 
Mexico Equity & Income Fund, Inc.
        
Schedule of Investments
        
April 30, 2011
        
           
     
Shares
  
Value
COMMON STOCKS - 90.01%
        
Beverages - 5.30%
        
Emboteladoras Arca, S.A.
  
495,000
$
3,006,111
Fomento Economico Mexicano, S.A.B. de C.V.
  
299,000
  
1,881,785
         
4,887,896
Chemicals - 3.81%
        
Mexichem, S.A. de C.V.
  
924,459
  
3,513,389
Commercial Banks - 1.09%
        
Grupo Financiero Banorte, S.A. de C.V. - Class O
  
200,000
  
1,007,149
Construction & Engineering - 9.56%
        
Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)
655,000
  
1,617,059
Impulsora del Desarrollo y el Empleo en America Latina, S.A. de C.V. (a)
1,881,985
  
3,436,445
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)
  
895,900
  
3,770,630
         
8,824,134
Construction Materials - 3.53%
        
Cemex S.A.B. de C.V. - ADR (a)
  
115,544
  
1,002,922
Cemex, S.A.B. de C.V. CPO (a)
  
2,600,000
  
2,254,054
         
3,256,976
Consumer Finance - 0.70%
        
Financiera Independencia S.A.B. de C.V.
  
645,331
  
650,281
Diversified Telecommunication Services - 0.25%
        
Telefonos De Mexico S.A.B. de C.V.
  
250,000
  
234,761
Financial Groups - 0.99%
        
GBM Grupo Bursatil Mexicano, S.A. de C.V. Casa de Bolsa
1,981,828
  
912,436
Food & Staples Retailing - 6.20%
        
Wal-Mart de Mexico, S.A. de C.V. - Class V
  
1,827,500
  
5,724,580
Food Products - 2.73%
        
Grupo Bimbo, S.A.B. de C.V.
  
1,140,000
  
2,515,354
Hotels, Restaurants & Leisure - 5.65%
        
Alsea de Mexico S.A.B. de C.V. - Class A
  
1,175,000
  
1,334,056
Grupe, S.A. de C.V. (a)(c)
  
2,978,486
  
3,881,027
         
5,215,083
Household Products - 3.93%
        
Kimberly-Clark de Mexico S.A.B. de C.V.
  
585,600
  
3,623,469
Industrial Conglomerates - 4.96%
        
Alfa, S.A. - Class A
  
129,300
  
1,936,406
Grupo Carso, S.A. de C.V.
  
487,000
  
1,893,985
Industrias CH, S.A. - Class B (a)
  
188,800
  
751,644
         
4,582,035
Insurance - 3.48%
        
Qualita Compania de Seguros
  
3,519,651
  
3,213,386
Metals & Mining - 13.42%
        
Grupo Mexico, S.A. - Series B
  
2,474,098
  
8,566,723
Industrias Penoles, S.A.
  
98,110
  
3,820,356
         
12,387,079
Multiline Retail - 2.95%
        
El Puerto De Liver
  
355,700
  
2,718,494
Pharmaceuticals - 4.58%
        
Genomma Lab Internacional SA (a)
  
1,691,500
  
4,227,391
           
Wireless Telecommunication Services - 16.88%
        
America Movil, S.A. de C.V. - Class L
  
5,436,599
  
15,580,097
TOTAL COMMON STOCKS (Cost $75,928,745)
    
$
83,073,990
           
 
 
 
 
 
REAL ESTATE INVESTMENT TRUSTS - 4.14%
        
Fibra Uno Administraction SA
  
2,241,900
  
3,817,094
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,629,477)
  
$
3,817,094
           
CAPITAL DEVELOPMENT CERTIFICATES - 3.06%
        
Atlas Discovery Trust II (c)
  
300,000
  
2,827,945
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $2,317,515)
  
$
2,827,945
           
     
Principal
    
     
Amount
  
Value
CORPORATE BONDS - 0.52%
        
Urbi, Desarrollos Urbanos, S.A. de C.V.
        
    8.500%, 04/19/2016
$
461,300
  
482,058
TOTAL CORPORATE BONDS (Cost $391,882)
    
$
482,058
FOREIGN GOVERNMENT NOTE/BONDS - 1.24%
        
Mexico-united Mexican Sts
        
    8.125%, 12/30/2019
$
865,000
  
1,141,800
TOTAL FOREIGN GOVERNMENT NOTE/BONDS (Cost $1,159,663)
  
$
1,141,800
           
SHORT-TERM INVESTMENTS - 0.61%
        
Mexican INAFIN
        
0.000% Coupon, 4.677% Effective Yield, 5/2/2011 (b)
  
6,461,908*
  
561,264
TOTAL SHORT-TERM INVESTMENTS (Cost $556,092)
      
561,264
           
UNITED STATES - 0.33%
        
INVESTMENT COMPANIES - 0.33%
  
Shares
  
Value
First American Treasury Obligation - Class A, 0.000%
  
303,921
$
303,921
TOTAL INVESTMENT COMPANIES ( Cost $303,921)
      
303,921
TOTAL UNITED STATES (Cost 303,921)
      
303,921
Total Investments  (Cost $84,287,295) - 99.91%
    
$
92,208,072
Other Assets in Excess of Liabilities - 0.09%
      
87,461
TOTAL NET ASSETS - 100.00%
    
$
92,295,533
           
           
Footnotes
          
Percentages are stated as a percent of net assets.
        
           
ADR
American Depository Receipt
        
(a)
Non-income producing security.
        
(b)
Effective yield based on the purchase price. The calculation assumes the security is held to maturity.
(c)
Fair valued security.
        
           
* Principal amount in Mexican Pesos
        
           
The cost basis of investments for federal income tax purposes at April 30, 2011 was as follows:
  
           
Cost of investments**
      
$84,287,295
Gross unrealized appreciation
      
9,517,640
Gross unrealized depreciation
      
(1,596,863)
Net unrealized appreciation
      
$7,920,777
 
**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.
 
 
 
 
 
 
Summary of Fair Value Exposure at April 30, 2011
      
           
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, 2011, in valuing the Fund’s investments carried at fair value:
 
   
Level 1
Level 2
Level 3
Total
Common Stock
        
Beverages
 $    4,887,896
 $                           -
 $                -
 $       4,887,896
Capital Development Certificates
                   -
                             -
       2,827,945
          2,827,945
Chemicals
       3,513,389
                             -
                   -
          3,513,389
Commercial Banks
       1,007,149
                             -
                   -
          1,007,149
Construction & Engineering
       8,824,134
                             -
                   -
          8,824,134
Construction Materials
       3,256,976
                             -
                   -
          3,256,976
Consumer Finance
         650,281
                             -
                   -
            650,281
Diversified Telecommunication Services
         234,761
                             -
                   -
            234,761
Financial Groups
         912,436
                             -
                   -
            912,436
Food & Staples Retailing
       5,724,580
                             -
                   -
          5,724,580
Food Products
       2,515,354
                             -
                   -
          2,515,354
Hotels, Restaurants & Leisure
       1,334,056
                 3,881,027
                   -
          5,215,083
Household Products
       3,623,469
                             -
                   -
          3,623,469
Industrial Conglomerates
       4,582,035
                             -
                   -
          4,582,035
Insurance
       3,213,386
                             -
                   -
          3,213,386
Metals & Mining
     12,387,079
                             -
                   -
        12,387,079
Multiline Retail
       2,718,494
                             -
                   -
          2,718,494
Pharmaceuticals
       4,227,391
                             -
                   -
          4,227,391
Wireless Telecommunication Services
     15,580,097
                             -
                   -
        15,580,097
Total Common Stock
     79,192,963
                 3,881,027
       2,827,945
        85,901,935
           
Real Estate Investment Trusts
       3,817,094
                             -
                   -
          3,817,094
           
Mexican Government Bonds
                   -
                 1,141,800
                   -
          1,141,800
           
Corporate Bonds
        
Housing
  
                   -
                   482,058
                   -
            482,058
           
Short-Term Investments
         303,921
                   561,264
                   -
            865,185
Total Investments in Securities
 $  83,313,978
 $              6,066,149
 $    2,827,945
 $     92,208,072
 
Level 3 Reconciliation Disclosure
      
       
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
       
Description
     Investments in Securities
Balance as of July 31, 2010
    
 $             2,370,277
Acquisition/Purchase
     
Sales
   
                        -
Realized gain
    
                           -
Change in unrealized appreciation (depreciation)
            457,668
Balance as of April 30, 2011
    
 $             2,827,945
 
             
Disclosures about Derivative Instruments and Hedging Activities
      
             
The fund did not invest in derivative securities or engaged in hedging activities during the period ended April 30, 2011.

 
 
 
 
 
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 9, 2011                                                                                                



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 9, 2011                                                                                               
 
 
By (Signature and Title)*   /s/ Gerald Hellerman                                              
 Gerald Hellerman, Chief Financial Officer

Date   June 2, 2011                                                                                                 

* 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:
June 9, 2011                     
/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 2, 2011                   
/s/ Gerald Hellerman                            
 
Gerald Hellerman
Chief Financial Officer