NPORT-EX 2 mxe.htm NPORT-EX

The Mexico Equity and Income Fund, Inc.
          
Schedule of Investments
          
April 30, 2022 (Unaudited)
          
           
MEXICO - 92.59%
  
Shares
    
Value
             
COMMON STOCKS - 81.90%
          
Airlines - 2.63%
          
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. - Series A
    
797,900
      
1,279,752
Airports - 1.04%
              
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. - Series B
    
72,100
      
505,953
Auto Parts and Equipment - 2.18%
              
Nemak, S.A.B. de C.V.
    
4,873,494
      
1,057,976
Beverages - 4.87%
              
Fomento Economico Mexicano, S.A.B. de C.V. - Series UBD
    
314,924
      
2,367,968
Building Materials - 7.63%
              
Cemex, S.A.B. de C.V.  - ADR (a)
    
107,000
      
470,800
Cemex, S.A.B. de C.V. - Series CPO (a)
    
4,108,460
      
1,807,952
Grupo Cementos de Chihuahua, S.A.B. de C.V.
    
216,100
      
1,429,300
             
3,708,052
Chemical Products - 10.08%
              
Alpek, S.A.B. de C.V. - Series A
    
2,756,342
      
3,721,227
Orbia Advance Corp., S.A.B. de C.V.
    
488,071
      
1,174,346
             
4,895,573
Construction and Infrastructure - 4.28%
              
Promotora y Operadora de Infraestructura, S.A.B. de C.V.
    
285,530
      
2,081,466
Financial Groups - 9.37%
              
Banco del Bajio, S.A.
    
225,700
      
557,323
Grupo Financiero Banorte, S.A.B. de C.V. - Series O
    
471,353
      
3,111,556
Regional, S.A.B. de C.V.
    
146,681
      
885,053
             
4,553,932
Food - 5.67%
              
Gruma, S.A.B. de C.V. - Series B
    
103,000
      
1,223,442
Grupo Bimbo, S.A.B. de C.V. - Series A
    
497,634
      
1,533,883
             
2,757,325
Holding Companies - 2.42%
              
Alfa, S.A.B. de C.V. - Series A
    
1,752,787
      
1,174,165
Hotels, Restaurants, and Recreation - 3.02%
              
Alsea, S.A.B. de C.V.
    
484,074
      
1,061,065
Grupe, S.A.B. de C.V. (a)(b)(c)(d)
    
303,242
      
407,166
             
1,468,231
Mining - 3.48%
              
Grupo Mexico, S.A.B. de C.V. - Series B
    
361,593
      
1,692,567
Publishing and Broadcasting - 0.97%
              
Grupo Televisa, S.A.B. de C.V. - Series CPO
    
252,381
      
468,488
Real Estate Services - 2.29%
              
Corporacion Inmobiliaria Vesta, S.A.B. de C.V.
    
599,634
      
1,111,026
Retail - 13.52%
              
El Puerto de Liverpool, S.A.B. de C.V. - Series C - 1
    
344,500
      
1,736,807
Grupo Comercial Chedraui, S.A. de C.V.
    
265,220
      
668,557
La Comer, S.A.B. de C.V. - Series UBC
    
512,300
      
949,713
Wal-Mart de Mexico, S.A.B. de C.V.
    
909,290
      
3,215,366
             
6,570,443
Telecommunication - 8.45%
              
America Movil, S.A.B. de C.V. - Series L
    
3,906,423
      
3,801,806
Axtel, S.A.B. de C.V. - Series CPO (a)
    
2,842,500
      
305,054
             
4,106,860
TOTAL COMMON STOCKS (Cost $36,517,899)
            
39,799,777
                 
CAPITAL DEVELOPMENT CERTIFICATES - 6.48%
              
Atlas Discovery Trust II (b)(c)(d)
    
300,000
      
3,147,261
TOTAL CAPITAL DEVELOPMENT CERTIFICATES  (Cost $1,460,703)
            
3,147,261
                 
REAL ESTATE INVESTMENT TRUSTS - 4.21%
              
CFE Capital, S. de R.L. de C.V.
    
1,623,300
      
2,048,366
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $2,131,709)
            
2,048,366
TOTAL MEXICO (Cost $40,110,311)
            
44,995,404
                 
UNITED STATES - 4.09%
  
Shares
    
Value
                 
COMMON STOCKS - 3.96%
              
Building Materials - 3.96%
              
Southern Copper Corp.
    
30,900
      
1,922,455
TOTAL COMMON STOCKS (Cost $2,160,687)
            
1,922,455
               
INVESTMENT COMPANIES - 0.13%
              
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class - 0.298% (e)
    
63,763
      
63,763
TOTAL INVESTMENT COMPANIES (Cost $63,763)
            
63,763
TOTAL UNITED STATES (Cost $2,224,450)
            
1,986,218
                 
LUXEMBOURG - 2.80%
  
Shares
    
Value
                 
COMMON STOCKS - 2.80%
              
Steel - 2.80%
              
Ternium SA - ADR (a)
    
31,700
      
1,359,930
TOTAL COMMON STOCKS (Cost $1,353,998)
            
1,359,930
TOTAL  LUXEMBOURG (Cost $1,353,998)
            
1,359,930
CAYMAN ISLANDS - 0.21%
  
Shares
    
Value
                 
COMMON STOCKS - 0.21%
              
Holding Companies - 0.21%
              
Rose Hill Acquisition Corp. (a)
    
10,001
      
102,110
TOTAL COMMON STOCKS (Cost $100,710)
            
102,110
TOTAL CAYMAN ISLANDS (Cost $100,710)
            
102,110
Total Investments (Cost $43,789,469) - 99.69%
            
48,443,662
Other Assets in Excess of Liabilities - 0.31%
            
150,909
TOTAL NET ASSETS - 100.00%
          
$
48,594,571
                 
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 $3,554,427, representing 7.31% of net assets.
              
(c) 
Fair valued securities. The total market value of these securities were $3,554,427, representing 7.31% of net assets.
              
(d) 
Value determined using significant unobservable inputs.
              
(e) 
The rate shown represents the 7-day yield at April 30, 2022.
              
 ADR 
American Depository Receipt
              

 
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 April 30, 2022:

      
Level 1
    
Level 2
    
Level 3*
    
Total
        
Equity
                                
Airlines
    
$
1,279,752
    
$
-
    
$
-
    
$
1,279,752
        
Airports
      
505,953
      
-
      
-
      
505,953
        
Auto Parts and Equipment
    
1,057,976
      
-
      
-
      
1,057,976
        
Beverages
      
2,367,968
      
-
      
-
      
2,367,968
        
Building Materials
      
5,630,507
      
-
      
-
      
5,630,507
        
Capital Development Certificates
    
-
      
-
      
3,147,261
      
3,147,261
        
Chemical Products
      
4,895,573
      
-
      
-
      
4,895,573
        
Construction and Infrastructure
    
2,081,466
      
-
      
-
      
2,081,466
        
Financial Groups
      
4,553,932
      
-
      
-
      
4,553,932
        
Food
      
2,757,325
      
-
      
-
      
2,757,325
        
Holding Companies
      
1,276,275
      
-
      
-
      
1,276,275
        
Hotels, Restaurants, and Recreation
    
1,061,065
      
-
      
407,166
      
1,468,231
        
Mining
      
1,692,567
      
-
      
-
      
1,692,567
        
Publishing and Broadcasting
    
468,488
      
-
      
-
      
468,488
        
Real Estate Services
      
1,111,026
      
-
      
-
      
1,111,026
        
Retail
      
6,570,443
      
-
      
-
      
6,570,443
        
Steel
      
1,359,930
      
-
      
-
      
1,359,930
        
Telecommunication
      
4,106,860
      
-
      
-
      
4,106,860
        
Total Equity
    
$
42,777,106
    
$
-
    
$
3,554,427
    
$
46,331,533
        
                                         
                                         
Real Estate Investment Trusts
  
$
2,048,366
    
$
-
    
$
-
    
$
2,048,366
        
                                         
Short-Term Investments
  
$
63,763
    
$
-
    
$
-
    
$
63,763
        
Total Investments in Securities
  
$
44,889,235
    
$
-
    
$
3,554,427
    
$
48,443,662
        
                                         
* 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)
                            
53,748
      
(417,871
)
Balance as of April 30, 2022
                          
$
407,166
    
$
3,147,261
  
                                           
Change in unrealized appreciation (depreciation) during the period for Level 3 investments held at April 30, 2022
    
$
53,748
    
$
(417,871
)
                                           
                                           
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 April 30, 2022:
                                        

Fair Value April 30, 2022
         
Valuation
Methodologies
    
Unobservable
Input (1)
    
Impact to valuation from an
increase to input
    
Range
  
Common Stock
$
  407,166          
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.
    
$
1.065-$1.386
  
Capital Development
Certificates
$
  3,147,261          
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.
    
$
9.771-$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.