Mexico Equity & Income Fund, Inc.
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Schedule of Investments
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October 31, 2011
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Shares
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Value
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COMMON STOCKS - 87.89%
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Beverages - 4.83%
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||||||||
Emboteladoras Arca, S.A.
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788,289 | $ | 3,738,266 | |||||
Chemicals - 10.86%
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||||||||
Mexichem, S.A. de C.V.
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2,442,559 | 8,405,174 | ||||||
Commercial Banks - 4.06%
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||||||||
Banregio Grupo Financiero S.A. de C.V. (a)
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1,406,200 | 3,144,351 | ||||||
Construction & Engineering - 6.28%
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||||||||
Carso Infraestructura y Construccion, S.A.B. de C.V. (a)
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2,373,500 | 1,422,996 | ||||||
Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)
|
744,800 | 995,898 | ||||||
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)
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599,900 | 2,438,852 | ||||||
4,857,746 | ||||||||
Consumer Finance - 1.33%
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Compartamos S.A.B. de C.V.
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665,700 | 1,028,496 | ||||||
Diversified Telecommunication Services - 4.78%
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Telefonos De Mexico S.A.B. de C.V.
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4,715,000 | 3,697,137 | ||||||
Food & Staples Retailing - 10.10%
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Grupo Comercial Chedraui S.A. de C.V.
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585,000 | 1,407,740 | ||||||
Wal-Mart de Mexico, S.A.B. de C.V. - Class V
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2,483,400 | 6,412,080 | ||||||
7,819,820 | ||||||||
Food Products - 1.22%
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Grupo Bimbo, S.A.B. de C.V.
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460,000 | 946,094 | ||||||
Health Care Providers & Services - 2.11%
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Medica Sur S.A.B. de C.V.
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905,000 | 1,629,774 | ||||||
Hotels, Restaurants & Leisure - 6.72%
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Alsea, S.A. de C.V. - Class A
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1,975,800 | 2,050,373 | ||||||
Grupo Sports World S.A.B. de C.V.(a)
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325,000 | 337,510 | ||||||
Grupe, S.A. de C.V. (a)
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2,878,786 | 2,805,990 | ||||||
5,193,873 | ||||||||
Industrial Conglomerates - 2.01%
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Grupo Carso, S.A. de C.V.
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602,000 | 1,554,352 | ||||||
Insurance - 4.25%
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Qualitias Compania de Seguros S.A. de C.V.
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4,139,651 | 3,292,586 | ||||||
Metals & Mining - 3.93%
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Industrias Penoles S.A.B. de C.V.
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75,540 | 3,038,208 | ||||||
Multiline Retail - 8.36%
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El Puerto de Liverpool S.A.B. de C.V.
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945,900 | 6,465,933 | ||||||
Pharmaceuticals - 5.15%
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Genomma Lab Internacional S.A.B. de C.V. (a)
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1,914,300 | 3,988,903 | ||||||
Wireless Telecommunication Services - 11.90%
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America Movil, S.A.B de C.V. - Class L
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7,213,998 | 9,207,632 | ||||||
TOTAL COMMON STOCKS (Cost $67,986,587)
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68,008,345 | |||||||
REAL ESTATE INVESTMENT TRUSTS - 4.28%
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Fibra Uno Administracion S.A. de C.V.
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1,799,500 | 3,308,153 | ||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $2,947,016)
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3,308,153 | |||||||
CAPITAL DEVELOPMENT CERTIFICATES - 2.55%
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Atlas Discovery Trust II (c)
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300,000 | 1,969,884 | ||||||
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $2,317,515)
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1,969,884 |
Principal
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Amount
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Value
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CORPORATE BONDS - 0.60%
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Urbi Desarrollos Urbanos
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8.500%, 04/19/2016 (e)
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$ | 461,300 | 465,913 | |||||||||
TOTAL CORPORATE BONDS (Cost $397,143)
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465,913 | |||||||||||
FOREIGN GOVERNMENT NOTE/BONDS - 1.64%
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Mexico-united Mexican Sts
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8.125%, 12/30/2019
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$ | 865,000 | 1,271,550 | |||||||||
TOTAL FOREIGN GOVERNMENT NOTE/BONDS (Cost $1,144,868)
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1,271,550 | |||||||||||
SHORT-TERM INVESTMENTS - 6.13%
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Mexican Cete
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0.000% Coupon, 4.47% Effective Yield, 11/10/2011 (b)
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* | 1,180,342 | 884,724 | |||||||||
Mexican INAFIN
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||||||||||||
0.000% Coupon, 4.15% Effective Yield, 11/1/2011 (b)
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* | 25,714,069 | 1,929,472 | |||||||||
Mexican INAFIN
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||||||||||||
0.000% Coupon, 4.15% Effective Yield, 11/4/2011 (b)
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* | 25,750,210 | 1,932,008 | |||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $4,814,431)
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4,746,204 | |||||||||||
UNITED STATES - 0.17%
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INVESTMENT COMPANIES - 0.17%
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First American Treasury Obligation - Class A
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134,224 | 134,224 | ||||||||||
TOTAL INVESTMENT COMPANIES (Cost $134,224)
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134,224 | |||||||||||
TOTAL UNITED STATES (Cost $134,224)
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134,224 | |||||||||||
Total Investments (Cost $79,741,784) - 103.26%
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79,904,273 | |||||||||||
Liabilities in Excess of Other Assets - (3.26)%
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(2,523,098 | ) | ||||||||||
TOTAL NET ASSETS - 100.00%
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$ | 77,381,175 |
Footnotes
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Percentages are stated as a percent of net assets.
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(a)
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Non-income producing security.
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(b)
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Effective yield based on the purchase price. The calculation assumes the security is held to maturity.
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(c)
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Fair Valued Security
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* Principal amount in Mexican Pesos
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The cost basis of investments for federal income tax purposes at October 31, 2011 was as follows:
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Cost of investments**
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$ | 79,741,784 | ||
Gross unrealized appreciation
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4,776,380 | |||
Gross unrealized depreciation
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(4,613,891 | ) | ||
Net unrealized appreciation
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$ | 162,489 | ||
**Because tax adjustments are calculated annually, the above table does not reflect tax adjustments.
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For the previous fiscal year's federal income tax information, please refer to the Notes to Financial
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Statements section of the Fund's most recent semi-annual or annual report.
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Summary of Fair Value Exposure at October 31, 2011
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Various inputs are used in determining the value of the Fund’s investments. These inputs are
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summarized in the three broad levels listed below:
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Level 1 - Quoted prices in active markets for identical securities.
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Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
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Level 3 - Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments.)
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The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
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The following is a summary of the inputs used, as of October 31, 2011, in valuing the Fund’s investments carried at fair value:
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Level 1
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Level 2
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Level 3
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Total
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Common Stock
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Beverages
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$ 3,738,266
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$ -
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$ -
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$ 3,738,266
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Capital Development Certificates
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-
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-
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1,969,884
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1,969,884
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Chemicals
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8,405,174
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-
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-
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8,405,174
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Commercial Banks
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3,144,351
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-
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-
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3,144,351
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Construction & Engineering
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4,857,746
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-
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-
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4,857,746
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Consumer Finance
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1,028,496
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-
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-
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1,028,496
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Diversified Telecommunication Services
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3,697,137
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-
|
-
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3,697,137
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Food & Staples Retailing
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7,819,820
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-
|
-
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7,819,820
|
|
Food Products
|
946,094
|
-
|
-
|
946,094
|
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Health Care Providers & Services
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1,629,774
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1,629,774
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|||
Hotels, Restaurants & Leisure
|
5,193,873
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-
|
5,193,873
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||
Industrial Conglomerates
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1,554,352
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-
|
-
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1,554,352
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Insurance
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3,292,586
|
-
|
-
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3,292,586
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Metals & Mining
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3,038,208
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-
|
-
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3,038,208
|
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Multiline Retail
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6,465,933
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-
|
-
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6,465,933
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Pharmaceuticals
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3,988,903
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-
|
-
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3,988,903
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Wireless Telecommunication Services
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9,207,632
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-
|
-
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9,207,632
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Total Common Stock
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68,008,345
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-
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1,969,884
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69,978,229
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Real Estate Investment Trusts
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3,308,153
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-
|
-
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3,308,153
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|
Mexican Government Bonds
|
-
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1,271,550
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-
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1,271,550
|
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Corporate Bonds
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Housing
|
-
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465,913
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-
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465,913
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Short-Term Investments
|
134,224
|
4,746,204
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-
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4,880,428
|
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Total Investments in Securities
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$ 71,450,722
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$ 6,483,667
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$ 1,969,884
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$ 79,904,273
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Disclosures about Derivative Instruments and Hedging Activities
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The fund did not invest in derivative securities or engaged in hedging activities during the period ended October 31, 2011.
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Level 3 Reconciliation Disclosure
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Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to
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determine fair value.
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Description
|
Investments in Securities | ||||
Balance as of July 31, 2011
|
$ | 2,686,760 | |||
Acquisition/Purchase
|
|||||
Sales
|
- | ||||
Realized gain
|
- | ||||
Change in unrealized appreciation (depreciation)
|
(716,876 | ) | |||
Balance as of October 31, 2011
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$ | 1,969,884 |
(a)
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The Registrant’s President and 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”)) (17 CFR 270.30a-3(c)) 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 (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).
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(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
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1.
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I have reviewed this report on Form N-Q of The Mexico Equity & Income Fund, Inc;
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2.
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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;
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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;
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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;
|
(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.
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Date: December 15, 2011
|
/s/ Maria Eugenia Pichardo
|
Maria Eugenia Pichardo
President
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1.
|
I have reviewed this report on Form N-Q of The Mexico Equity & 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;
|
(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 13, 2011
|
/s/ Gerald Hellerman
|
Gerald Hellerman
Chief Financial Officer
|