The Mexico Equity and Income Fund, Inc.
|
||||||||
Schedule of Investments
|
||||||||
October 31, 2019 (Unaudited)
|
||||||||
MEXICO - 99.31%
|
Shares
|
Value
|
||||||
COMMON STOCKS - 87.94%
|
||||||||
Airports - 5.12%
|
||||||||
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.
|
185,300
|
$
|
1,284,717
|
|||||
Grupo Aeroportuario del Pacifico, S.A.B. de C.V. - Series B
|
88,100
|
923,661
|
||||||
Grupo Aeroportuario del Sureste S.A.B. de C.V. - Series B
|
55,300
|
906,809
|
||||||
3,115,187
|
||||||||
Beverages - 15.45%
|
||||||||
Arca Continental, S.A.B. de C.V.
|
282,018
|
1,575,571
|
||||||
Fomento Economico Mexicano, S.A.B. de C.V. - Series UBD
|
880,689
|
7,815,019
|
||||||
9,390,590
|
||||||||
Building Materials - 3.56%
|
||||||||
Grupo Cementos de Chihuahua, S.A.B. de C.V.
|
386,780
|
2,162,059
|
||||||
Chemical Products - 3.15%
|
||||||||
Alpek, S.A.B. de C.V.
|
900,759
|
970,225
|
||||||
Orbia Advance Corp SAB de CV
|
438,969
|
947,241
|
||||||
1,917,466
|
||||||||
Construction and Infrastructure - 5.74%
|
||||||||
Promotora y Operadora de Infraestructura, S.A.B. de C.V.
|
235,975
|
2,182,798
|
||||||
Promotora y Operadora de Infraestructura, S.A.B. de C.V. - Series L
|
203,045
|
1,306,205
|
||||||
3,489,003
|
||||||||
Consumer Financing Services - 1.06%
|
||||||||
Credito Real, S.A.B. de C.V.
|
523,585
|
642,352
|
||||||
Energy - 0.53%
|
||||||||
Infraestructura Energetica Nova, S.A.B. de C.V. (a)
|
73,000
|
322,678
|
||||||
Financial Groups - 9.90%
|
||||||||
Banco del Bajio, S.A.
|
362,164
|
583,446
|
||||||
Gentera, S.A.B. de C.V.
|
8,547
|
8,469
|
||||||
Grupo Financiero Banorte, S.A.B. de C.V. - Series O
|
874,948
|
4,775,793
|
||||||
Regional, S.A.B. de C.V.
|
122,385
|
650,082
|
||||||
6,017,790
|
||||||||
Food - 2.00%
|
||||||||
Grupo Bimbo, S.A.B. de C.V. - Series A
|
653,986
|
1,215,058
|
||||||
Hotels, Restaurants, and Recreation - 3.26%
|
||||||||
Alsea, S.A.B. de C.V.
|
372,389
|
993,476
|
||||||
Grupe, S.A.B. de C.V. (a)(b)
|
429,507
|
985,434
|
||||||
1,978,910
|
||||||||
Mining - 6.13%
|
||||||||
Grupo Mexico, S.A.B. de C.V. - Series B
|
1,059,687
|
2,791,274
|
||||||
Industrias Penoles, S.A.B. de C.V.
|
77,911
|
934,940
|
||||||
3,726,214
|
||||||||
Railroads - 1.15%
|
||||||||
GMexico Transportes, S.A.B. de C.V.
|
525,438
|
701,713
|
||||||
Real Estate Services - 4.04%
|
||||||||
Corporacion Inmobiliaria Vesta, S.A.B. de C.V.
|
1,472,501
|
2,456,401
|
||||||
Retail - 10.66%
|
||||||||
El Puerto de Liverpool, S.A.B. de C.V. - Series C - 1
|
169,300
|
862,672
|
||||||
Grupo Comercial Chedraui, S.A. de C.V.
|
186,186
|
258,133
|
||||||
Wal-Mart de Mexico, S.A.B. de C.V.
|
1,784,977
|
5,356,833
|
||||||
6,477,638
|
||||||||
Telecommunication - 16.19%
|
||||||||
America Movil, S.A.B. de C.V. - Series L
|
10,874,071
|
8,614,917
|
||||||
Telesites S.A.B. de C.V. (a)
|
1,871,027
|
1,223,586
|
||||||
9,838,503
|
||||||||
TOTAL COMMON STOCKS (Cost $49,801,429)
|
53,451,562
|
CAPITAL DEVELOPMENT CERTIFICATES - 2.67%
|
||||||||
Atlas Discovery Trust II (b)(c)(d)
|
300,000
|
1,620,287
|
||||||
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $1,460,703)
|
1,620,287
|
|||||||
MEXICAN GOVERNMENT NOTES/BONDS - 1.24%
|
||||||||
Mexican Bonos de Proteccion al Ahorro
|
||||||||
8.070%, 12/24/2020
|
144,941
|
753,762
|
||||||
TOTAL MEXICAN GOVERNMENT NOTES/BONDS (Cost $731,733)
|
753,762
|
|||||||
MEXICAN MUTUAL FUNDS - 0.12%
|
||||||||
Scotiabankinverlat - Scotia Gubernamental S.A. de C.V. SIID (a)
|
369,420
|
71,677
|
||||||
TOTAL MEXICAN MUTUAL FUNDS (Cost $72,076)
|
71,677
|
|||||||
REAL ESTATE INVESTMENT TRUSTS - 7.34%
|
||||||||
Financial Groups - 0.76%
|
||||||||
CFE Capital, S. de R.L. de C.V.
|
366,794
|
464,106
|
||||||
Real Estate Services - 6.58%
|
||||||||
Concentradora Fibra Danhos, S.A. de C.V.
|
1,107,391
|
1,670,599
|
||||||
Fibra Uno Administracion, S.A. de C.V.
|
1,535,000
|
2,331,646
|
||||||
4,002,245
|
||||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,927,279)
|
4,466,351
|
|||||||
TOTAL MEXICO (Cost $55,993,220)
|
60,363,639
|
|||||||
UNITED STATES - 0.89%
|
||||||||
INVESTMENT COMPANIES - 0.89%
|
||||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class - 1.733% (e)
|
542,505
|
542,505
|
||||||
TOTAL INVESTMENT COMPANIES (Cost $542,505)
|
542,505
|
|||||||
TOTAL UNITED STATES (Cost $542,505)
|
542,505
|
|||||||
Total Investments (Cost $56,535,725) - 100.20%
|
60,906,144
|
|||||||
Liabilities in Excess of Other Assets - (0.20)%
|
(122,059
|
)
|
||||||
TOTAL NET ASSETS - 100.00%
|
$
|
60,784,085
|
Percentages are stated as a percent of net assets.
|
|||||
|
|||||
(a)
|
Non-income producing security.
|
||||
(b)
|
Illiquid securities. The total market value of these securities were $2,605,721, representing 4.29% of net assets.
|
||||
(c)
|
Fair valued security. The total market value of this security was $1,620,287, representing 2.67% of net assets.
|
||||
(d)
|
Level 3 security. Value determined using significant unobservable inputs.
|
||||
(e)
|
The rate shown represents the 7-day yield at October 31, 2019.
|
|
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risks, yield curves, default rates and similar data. Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the company’s own assumptions about the assumptions a market participant would use in valuing the asset or liability , and would be based on the best information available. |
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Equity
|
||||||||||||||||
Airports
|
$
|
3,115,187
|
$
|
-
|
$
|
-
|
$
|
3,115,187
|
||||||||
Beverages
|
9,390,590
|
-
|
-
|
9,390,590
|
||||||||||||
Building Materials
|
2,162,059
|
-
|
-
|
2,162,059
|
||||||||||||
Capital Development Certificates
|
-
|
-
|
1,620,287
|
1,620,287
|
||||||||||||
Chemical Products
|
970,225
|
-
|
-
|
970,225
|
||||||||||||
Construction and Infrastructure
|
3,489,003
|
-
|
-
|
3,489,003
|
||||||||||||
Consumer Financing Services
|
642,352
|
-
|
-
|
642,352
|
||||||||||||
Energy
|
322,678
|
-
|
-
|
322,678
|
||||||||||||
Financial Groups
|
6,017,790
|
-
|
-
|
6,017,790
|
||||||||||||
Food
|
1,215,058
|
-
|
-
|
1,215,058
|
||||||||||||
Hotels, Restaurants, and Recreation
|
993,476
|
985,434
|
-
|
1,978,910
|
||||||||||||
Materials
|
947,241
|
-
|
-
|
947,241
|
||||||||||||
Mining
|
3,726,214
|
-
|
-
|
3,726,214
|
||||||||||||
Railroads
|
701,713
|
-
|
-
|
701,713
|
||||||||||||
Real Estate Services
|
2,456,401
|
-
|
-
|
2,456,401
|
||||||||||||
Retail
|
6,477,638
|
-
|
-
|
6,477,638
|
||||||||||||
Telecommunications
|
9,838,503
|
-
|
-
|
9,838,503
|
||||||||||||
Total Equity
|
$
|
52,466,128
|
$
|
985,434
|
$
|
1,620,287
|
$
|
55,071,849
|
||||||||
Mexican Government Notes/Bonds
|
$
|
-
|
$
|
753,762
|
$
|
-
|
$
|
753,762
|
||||||||
Mexican Mutual Funds
|
$
|
71,677
|
$
|
-
|
$
|
-
|
$
|
71,677
|
||||||||
Real Estate Investment Trusts
|
||||||||||||||||
Financial Groups
|
$
|
464,106
|
$
|
-
|
$
|
-
|
$
|
464,106
|
||||||||
Real Estate Services
|
4,002,245
|
-
|
-
|
4,002,245
|
||||||||||||
Total Real Estate Investment Trusts
|
$
|
4,466,351
|
$
|
-
|
$
|
-
|
$
|
4,466,351
|
||||||||
Short-Term Investments
|
$
|
542,505
|
$
|
-
|
$
|
-
|
$
|
542,505
|
||||||||
Total Investments in Securities
|
$
|
57,546,661
|
$
|
1,739,196
|
$
|
1,620,287
|
$
|
60,906,144
|
Disclosures about Derivative Instruments and Hedging Activities
|
|||
The Fund did not invest in derivative securities or engage in hedging activities during the period ended October 31, 2019.
|
|||
Level 3 Reconciliation Disclosure
|
|||
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
|
Description
|
Capital
Development
Certificates
|
|||
Balance as of July 31, 2019
|
$
|
1,641,479
|
||
Acquisitions
|
-
|
|||
Dispositions
|
-
|
|||
Transfer in and/or out of Level 3
|
-
|
|||
Realized gain (loss)
|
-
|
|||
Change in unrealized depreciation(*)
|
(21,192
|
)
|
||
Balance as of October 31, 2019
|
$
|
1,620,287
|
||
(*)Change in unrealized depreciation during the period for Level 3 investments held at October 31, 2019
|
$
|
(21,192
|
)
|
The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and
|
|||||||||||
categorized within Level 3 as of October 31, 2019:
|
|||||||||||
Fair Value October 31, 2019
|
Valuation
Methodologies
|
Unobservable
Input (1)
|
Range
|
||||||||
Capital Development Certificates
|
$
|
1,620,287
|
Market
Comparables/ Sum
of the Parts Valuation
|
Liquidity
Discount
|
$
|
5.161-$5.484
|
|||||
1
|
In determining certain of these inputs, management evaluates a variety of factors including economic conditions, foreign exchange rates, industry and market
developments, market valuations of comparable companies and company specific developments.
|
(a)
|
The Registrant’s President and Treasurer 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)).
|
(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.
|
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: 12/17/2019
|
/s/ Maria Eugenia Pichardo
|
Maria Eugenia Pichardo
President
|
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: 12/17/2019
|
/s/ Arnulfo Rodríguez
|
Arnulfo Rodríguez
Chief Financial Officer
|