NPORT-EX 2 mxe_nport.htm NPORT-EX

The Mexico Equity and Income Fund, Inc.
            
Schedule of Investments
            
October 31, 2021 (Unaudited)
            
               
MEXICO - 93.57%
  
Shares
    
Value
  
               
COMMON STOCKS - 81.81%
            
Airlines - 3.81%
            
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. - Series A (a)
    
591,700
    
$
1,076,315
  
Grupo Traxion, S.A.B. de C.V. (a)
    
410,350
      
709,761
  
               
1,786,076
  
Airports - 1.97%
                
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. - Series B (a)
    
152,600
      
920,803
  
Auto Parts and Equipment - 3.37%
                
Nemak, S.A.B. de C.V. (a)
    
6,849,619
      
1,580,323
  
Beverages - 3.48%
                
Fomento Economico Mexicano, S.A.B. de C.V. - Series UBD
    
198,124
      
1,628,836
  
Building Materials - 7.31%
                
Cemex, S.A.B. de C.V. - Series CPO (a)
    
4,479,460
      
2,880,710
  
Grupo Cementos de Chihuahua, S.A.B. de C.V.
    
73,100
      
543,776
  
               
3,424,486
  
Chemical Products - 7.67%
                
Alpek, S.A.B. de C.V. - Series A
    
1,500,000
      
1,642,219
  
Orbia Advance Corp., S.A.B. de C.V.
    
749,571
      
1,948,200
  
               
3,590,419
  
Construction and Infrastructure - 2.67%
                
Promotora y Operadora de Infraestructura, S.A.B. de C.V.
    
169,796
      
1,248,645
  
Financial Groups - 10.06%
                
Banco del Bajio, S.A.
    
266,100
      
499,552
  
Grupo Financiero Banorte, S.A.B. de C.V. - Series O
    
424,053
      
2,684,831
  
Grupo Financiero Inbursa, S.A.B. de C.V. - Series O (a)
    
958,500
      
962,318
  
Regional, S.A.B. de C.V.
    
108,381
      
566,910
  
               
4,713,611
  
Food - 2.30%
                
Grupo Bimbo, S.A.B. de C.V. - Series A
    
364,644
      
1,079,338
  
Holding Companies - 2.14%
                
Alfa, S.A.B. de C.V. - Series A
    
1,385,487
      
1,003,381
  
Hotels, Restaurants, and Recreation - 2.67%
                
Alsea, S.A.B. de C.V. (a)
    
431,774
      
906,415
  
Grupe, S.A.B. de C.V. (a)(b)(c)(d)
    
303,242
      
341,714
  
               
1,248,129
  
Mining - 3.72%
                
Grupo Mexico, S.A.B. de C.V. - Series B
    
397,393
      
1,743,372
  
Railroads - 1.39%
                
GMexico Transportes, S.A.B. de C.V.
    
406,874
      
652,168
  
Real Estate Services - 2.07%
                
Corporacion Inmobiliaria Vesta, S.A.B. de C.V.
    
557,154
      
969,905
  
Retail - 15.85%
                
El Puerto de Liverpool, S.A.B. de C.V. - Series C - 1
    
560,000
      
2,477,677
  
Grupo Comercial Chedraui, S.A. de C.V.
    
276,500
      
545,264
  
La Comer, S.A.B. de C.V.
    
740,000
      
1,334,933
  
Wal-Mart de Mexico, S.A.B. de C.V.
    
878,954
      
3,065,751
  
               
7,423,625
  
Telecommunication - 11.33%
                
America Movil, S.A.B. de C.V. - Series L
    
5,956,383
      
5,308,900
  
TOTAL COMMON STOCKS (Cost $35,530,922)
            
38,322,017
  
                   
CAPITAL DEVELOPMENT CERTIFICATES - 7.75%
                
Atlas Discovery Trust II (b)(c)(d)
    
300,000
      
3,629,271
  
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $1,460,703)
            
3,629,271
  
                   
MEXICAN MUTUAL FUNDS  - 0.15%
                
Scotiabankinverlat - Scotia Gubernamental S.A. de C.V. SIID (a)
    
353,103
      
69,528
  
TOTAL MEXICAN MUTUAL FUNDS (Cost $69,157)
            
69,528
  
                   
REAL ESTATE INVESTMENT TRUSTS - 3.86%
                
Fibra Uno Administracion, S.A. de C.V.
    
1,816,361
      
1,805,068
  
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $1,930,225)
            
1,805,068
  
TOTAL MEXICO (Cost $38,991,007)
              
43,825,884
  
                   
UNITED STATES - 6.48%
                
                   
COMMON STOCKS - 2.42%
                
Mining - 2.42%
                
Southern Copper Corp.
    
18,800
      
1,135,049
  
TOTAL COMMON STOCKS (Cost $1,250,927)
            
1,135,049
  
                   
INVESTMENT COMPANIES - 4.06%
                
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class - 0.026% (e)
    
1,900,566
      
1,900,566
  
TOTAL INVESTMENT COMPANIES (Cost $1,900,566)
            
1,900,566
  
TOTAL UNITED STATES (Cost $3,151,493)
            
3,035,615
  
                   
Total Investments (Cost $42,142,500) - 100.05%
            
46,861,499
  
Liabilities in Excess of Other Assets - (0.05)%
            
(23,605
)
TOTAL NET ASSETS - 100.00%
          
$
46,837,894
  
                   
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 $3,970,985, representing 8.48% of net assets.
  
(c) 
Fair valued securities. The total market value of these securities were $3,970,985, representing 8.48% 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, 2021.
                


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, 2021:

   
Level 1
    
Level 2
    
Level 3*
    
Total
  
Equity
                        
Airlines
  
$
1,786,076
    
$
-
    
$
-
    
$
1,786,076
  
Airports
    
920,803
      
-
      
-
      
920,803
  
Auto Parts and Equipment
    
1,580,323
      
-
      
-
      
1,580,323
  
Beverages
    
1,628,836
      
-
      
-
      
1,628,836
  
Building Materials
    
3,424,486
              
-
      
3,424,486
  
Capital Development Certificates
    
-
      
-
      
3,629,271
      
3,629,271
  
Chemical Products
    
3,590,419
      
-
      
-
      
3,590,419
  
Construction and Infrastructure
    
1,248,645
      
-
      
-
      
1,248,645
  
Financial Groups
    
4,713,611
      
-
      
-
      
4,713,611
  
Food
    
1,079,338
      
-
      
-
      
1,079,338
  
Holding Companies
    
1,003,381
      
-
      
-
      
1,003,381
  
Hotels, Restaurants, and Recreation
    
906,415
      
-
      
341,714
      
1,248,129
  
Mining
    
1,743,372
      
1,135,049
      
-
      
2,878,421
  
Railroads
    
652,168
      
-
      
-
      
652,168
  
Real Estate Services
    
969,905
      
-
      
-
      
969,905
  
Retail
    
7,423,625
      
-
      
-
      
7,423,625
  
Telecommunication
    
5,308,900
      
-
      
-
      
5,308,900
  
Total Equity
  
$
37,980,303
    
$
1,135,049
    
$
3,970,985
    
$
43,086,337
  
                                 
Mexican Mutual Funds
  
$
69,528
    
$
-
    
$
-
    
$
69,528
  
                                 
Real Estate Investment Trusts
  
$
1,805,068
    
$
-
    
$
-
    
$
1,805,068
  
                                 
Short-Term Investments
  
$
1,900,566
    
$
-
    
$
-
    
$
1,900,566
  
Total Investments in Securities
  
$
41,755,465
    
$
1,135,049
    
$
3,970,985
    
$
46,861,499
  

* 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, 2021
  
$
353,418
    
$
3,565,132
  
Acquisitions
    
-
      
-
  
Dispositions
    
-
      
-
  
Realized gain
    
-
      
-
  
Change in unrealized appreciation/(depreciation)
    
(11,704
)
    
64,139
  
Balance as of October 31, 2021
  
$
341,714
    
$
3,629,271
  
                 
Change in unrealized appreciation (depreciation) during the period for Level 3 investments held at October 31, 2021
   $
 (11,704 )
  $
 64,139  

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, 2021:

     
Fair Value
October 31, 2021
  
Valuation Methodologies
  
Unobservable Input (1)
  
Impact to valuation from an
increase to input
  
Range
  
Common Stock
    
$
341,714
  
Market Comparables
  
Liquidity Discount
  
Significant changes in the liquidity
discount would have resulted in
direct and proportional changes in
the fair value of the security.
  
$
1.112-$1.168
  
Capital Development
Certificates
    
$
3,629,271
  
Market Comparables/
Sum of the Parts Valuation (2)
  
Liquidity Discount
  
Significant changes in the liquidity
discount would have resulted in
direct and proportional changes in
the fair value of the security.
  
$
11.596-$12.893
  
                             
   
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.
  
                               
   
2 
  
For the Sum of the Parts valuation, the valuation provides a range of values for a company's equity by aggregating each of its business units (private and public) and arriving at a single total enterprise value.