NPORT-EX 2 mxe.htm NPORT-EX

The Mexico Equity and Income Fund, Inc.
        
Schedule of Investments
        
October 31, 2020 (Unaudited)
        
         
MEXICO - 100.37%
Shares
 
  
Value
           
COMMON STOCKS - 86.05%
        
Auto Parts and Equipment - 3.63%
        
Nemak, S.A.B. de C.V.
2,022,920
   $
           623,713
Beverages - 2.52%
        
Arca Continental, S.A.B. de C.V.
58,520
    
254,783
Fomento Economico Mexicano, S.A.B. de C.V. - Series UBD
33,075
    
177,276
       
432,059
Building Materials - 0.85%
        
Grupo Cementos de Chihuahua, S.A.B. de C.V.
29,107
    
146,568
Chemical Products - 8.72%
        
Alpek, S.A.B. de C.V. - Series A
1,070,379
    
800,331
Orbia Advance Corp., S.A.B. de C.V.
394,482
    
697,594
       
1,497,925
Construction and Infrastructure - 1.48%
        
Promotora y Operadora de Infraestructura, S.A.B. de C.V. - Series L
52,271
    
254,929
Energy - 4.01%
        
Infraestructura Energetica Nova, S.A.B. de C.V.
205,702
    
688,340
Financial Groups - 1.59%
        
Gentera, S.A.B. de C.V. (a)
350,200
    
82,384
Grupo Financiero Banorte, S.A.B. de C.V. - Series O (a)
42,756
    
190,484
       
272,868
Food - 5.96%
        
Gruma, S.A.B. de C.V. - Series B
23,178
    
246,526
Grupo Bimbo, S.A.B. de C.V. - Series A
402,500
    
777,808
       
1,024,334
Holding Companies - 9.64%
        
Alfa, S.A.B. de C.V. - Series A
2,479,435
    
1,656,347
Hotels, Restaurants, and Recreation - 1.93%
        
Grupe, S.A.B. de C.V. (a)(b)(c)(d)
303,526
    
331,980
Mining - 9.22%
        
Grupo Mexico, S.A.B. de C.V. - Series B
283,894
    
806,384
Industrias Penoles, S.A.B. de C.V.
48,750
    
776,268
       
1,582,652
Railroads - 1.38%
        
GMexico Transportes, S.A.B. de C.V.
200,671
    
237,458
Real Estate Services - 0.81%
        
Corporacion Inmobiliaria Vesta, S.A.B. de C.V.
86,523
    
139,014
Retail - 9.51%
        
El Puerto de Liverpool, S.A.B. de C.V. - Series C - 1
61,974
    
166,801
Grupo Comercial Chedraui, S.A. de C.V.
148,000
    
187,133
Organizacion Soriana, S.A.B. de C.V. - Class B (a)
49,700
    
37,934
Wal-Mart de Mexico, S.A.B. de C.V.
513,584
    
1,240,892
       
1,632,760
Telecommunication - 24.80%
        
America Movil, S.A.B. de C.V. - Series L
4,321,622
    
2,630,278
Axtel, S.A.B. de C.V. - Series CPO (a)
3,025,631
    
1,128,291
Telesites S.A.B. de C.V. (a)
542,417
    
500,696
       
4,259,265
TOTAL COMMON STOCKS (Cost $13,371,961)
      
14,780,212
           
CAPITAL DEVELOPMENT CERTIFICATES - 8.29%
 
 
  
 
Atlas Discovery Trust II (b)(c)(d)
300,000
    
1,423,496
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $1,460,703)
      
1,423,496
           
MEXICAN MUTUAL FUNDS - 3.90%
 
 
  
 
Scotiabankinverlat - Scotia Gubernamental, S.A. de C.V. SIID (a)
3,607,174
    
667,993
TOTAL MEXICAN MUTUAL FUNDS (Cost $666,850)
      
667,993
           
REAL ESTATE INVESTMENT TRUSTS - 2.13%
 
 
  
 
CFE Capital, S. de R.L. de C.V.
305,000
    
365,370
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $358,064)
      
365,370
TOTAL MEXICO (Cost $15,857,578)
      
17,237,071
           
UNITED KINGDOM - 1.01%
 
 
  
 
           
COMMON STOCKS - 1.01%
        
Mining - 1.01%
        
Fresnillo PLC
13,100
    
174,382
TOTAL COMMON STOCKS (Cost $216,113)
      
174,382
TOTAL UNITED KINGDOM (Cost $216,113)
      
174,382
           
UNITED STATES - 0.10%
 
 
  
 
           
INVESTMENT COMPANIES - 0.10%
 
 
  
 
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class - 0.020% (e)
18,417
    
18,417
TOTAL INVESTMENT COMPANIES (Cost $18,417)
      
18,417
TOTAL UNITED STATES (Cost $18,417)
      
18,417
           
Total Investments (Cost $16,092,108) - 101.48%
      
17,429,870
Liabilities in Excess of Other Assets - (1.48)%
      
(254,581)
TOTAL NET ASSETS - 100.00%
     $
    17,175,289
           
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 $1,755,476, representing 10.22% of net assets.
      
(c)
  
Fair valued securities. The total market value of these securities were $1,755,476, representing 10.22% of net assets.
      
(d)
  
Level 3 securities. Value determined using significant unobservable inputs.
      
(e)
  
The rate shown represents the 7-day yield at October 31, 2020.
      

 

FAIR VALUE MEASUREMENTS
              
                   
The Fund follows the FASB ASC Topic 820 hierarchy, under which various inputs are used in determining the value of the Fund’s investments.  The basis of the hierarchy is dependent upon various “inputs” used to determine the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

 
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.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of the markets, and other characteristics particular to the security.  To the extent that valuation is based on models or inputs that are less observable or unobservable in the market the determination of fair value requires more judgment.  Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant on the lowest level input that is significant to the fair value measurement in its entirety.
                   
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 to value the Fund's investments carried at fair value as of October 31, 2020:

      
Level 1
    
Level 2
    
Level 3*
    
Total
        
Equity
                                
Auto Parts and Equipment
  
$
623,713
    
$
-
    
$
-
    
$
623,713
        
Beverages
    
432,059
      
-
      
-
      
432,059
        
Building Materials
    
146,568
      
-
      
-
      
146,568
        
Capital Development Certificates
    
-
      
-
      
1,423,496
      
1,423,496
        
Chemical Products
    
1,497,925
      
-
      
-
      
1,497,925
        
Construction and Infrastructure
    
254,929
      
-
      
-
      
254,929
        
Energy
      
688,340
      
-
      
-
      
688,340
        
Financial Groups
    
272,868
      
-
      
-
      
272,868
        
Food
      
1,024,334
      
-
      
-
      
1,024,334
        
Holding Companies
    
1,656,347
      
-
      
-
      
1,656,347
        
Hotels, Restaurants, and Recreation
    
-
      
-
      
331,980
      
331,980
        
Mining
      
1,582,652
      
174,382
      
-
      
1,757,034
        
Railroads
    
237,458
      
-
      
-
      
237,458
        
Real Estate Services
    
139,014
      
-
      
-
      
139,014
        
Retail
      
1,632,760
      
-
      
-
      
1,632,760
        
Telecommunication
    
4,259,265
      
-
      
-
      
4,259,265
        
Total Equity
  
$
14,448,232
    
$
174,382
    
$
1,755,476
    
$
16,378,090
        
                                         
Mexican Mutual Funds
  
$
667,993
    
$
-
    
$
-
    
$
667,993
        
                                         
Real Estate Investment Trusts
  
$
365,370
    
$
-
    
$
-
    
$
365,370
        
                                         
Short-Term Investments
  
$
18,417
    
$
-
    
$
-
    
$
18,417
        
Total Investments in Securities
  
$
15,500,012
    
$
174,382
    
$
1,755,476
    
$
17,429,870
        
                                         
* The Fund measures Level 3 activity as of the beginning and end of each financial reporting period.
  
                                         
Level 3 Reconciliation Disclosure
                        
                                         
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
  
                                         
Description
                          
Common Stock
    
Capital Development Certificates
  
Balance as of July 31, 2020
                    
$
343,058
    
$
1,315,011
  
Acquisitions
                            
-
      
-
  
Dispositions
                            
(42,721
)
    
-
  
Realized gain
                            
5,428
      
-
  
Change in unrealized depreciation
                      
26,215
      
108,485
  
Balance as of October 31, 2020
                    
$
331,980
    
$
1,423,496
  
                                           
Change in unrealized depreciation during the period for Level 3 investments held at October 31, 2020
    
$
26,215
    
$
108,485
  
                                           
                                           
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, 2020:
  

   
Fair Value October 31, 2020
      
Valuation Methodologies
      
Unobservable Input (1)
      
Range
  
Common Stock
  $
331,980
      
Market Comparables/
Sum of the Parts Valuation
      
Liquidity Discount
      
$
1.020-$1.112
  
Capital Development Certificates
  $
1,423,496
      
Market Comparables/
Sum of the Parts Valuation
      
Liquidity Discount
      
$
4.302-$4.852
  

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.