THE MEXICO FUND, INC. ANNOUNCES AN INCREASE IN ITS QUARTERLY DISTRIBUTION AND DECLARES DISTRIBUTION

Rhea-AI Summary

The Mexico Fund (NYSE: MXF) increased its quarterly distribution from $0.25 to $0.35 per share (a 40.0% increase) and declared the distribution for holders of record on January 21, 2026, payable in cash on January 29, 2026.

The Board approved continuation of the Fund's managed distribution policy (MDP) for 2026 and noted the Fund has paid $27.98 per share in cash distributions since the MDP began in September 2008. The press release includes estimated distribution sources for January 2026: $0.1819 net investment income (52.0%), $0.1050 long-term gains (30.0%), $0.0259 short-term gains (7.4%), and $0.0372 return of capital (10.6%). The Fund reported a 5-year average annual total return of 14.63% through November 30, 2025.

Positive

• Quarterly distribution increased 40.0% to $0.35 per share
• Annualized distribution rate of 7.2% (as of November 30, 2025)
• MDP continued for 2026; $27.98 total cash distributions paid since Sept 2008
• 5-year average annual total return of 14.63% through Nov 30, 2025

Negative

• Return of capital estimated at $0.0372 (10.63% of the distribution)
• Distribution sources are estimates and may change for tax/accounting purposes
• MDP may be amended or terminated at any time without prior notice

Key Figures

New quarterly distribution $0.35 per share Increased from $0.25; January 29, 2026 payment

Distribution increase 40.0% From prior $0.25 to $0.35 per share

Annualized distribution rate 7.2% Based on market price as of November 30, 2025

Cumulative cash distributions $27.98 per share Paid since MDP implementation in September 2008

January 2026 NII component $0.1819 per share (51.96%) Estimated net investment income portion of $0.35 distribution

January 2026 return of capital $0.0372 per share (10.63%) Estimated return of capital portion of $0.35 distribution

5-year avg total return 14.63% Average Annual Total Return through November 30, 2025

Current FY cumulative total return 3.04% From November 1, 2025 through November 30, 2025

Market Reality Check

$20.04 Last Close

Volume Volume 112,745 vs 20-day average 40,531 (relative volume 2.78x) ahead of the distribution news. high

Technical Price 19.7 is trading above the 200-day MA at 17.26, indicating a pre-news uptrend.

Peers on Argus

While MXF was down 0.91% pre-release, asset-management peers like AEF, CAF, IIF, SABA, and ERC showed gains between 0.21% and 1.58%, pointing to stock-specific dynamics rather than a sector-wide move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Oct 30	Distribution payment	Positive	-0.4%	Cash distribution of $0.25 per share under the MDP.
Sep 11	Distribution declaration	Positive	+1.8%	Declared $0.25 per share distribution with strong performance metrics.
Jul 30	Distribution payment	Positive	-0.7%	Announced $0.25 per share payout with favorable 5-year returns.
Jul 28	Stake disclosure	Positive	-0.1%	Acknowledged Saba Capital’s 8.35% stake and focus on discount.
Jun 26	Semi-annual report	Positive	+1.0%	Semi-annual report with higher distribution and solid NAV returns.

Pattern Detected

Positive fund updates and distribution announcements have produced mixed reactions, with three recent instances of mild selloffs and two modest gains.

Recent Company History

This announcement increases MXF’s quarterly distribution to $0.35 and extends its MDP into 2026, following a long history of regular payouts since September 2008 and cumulative cash distributions of $27.98 per share. Earlier in 2025, the Fund raised its quarterly dividend from $0.22 to $0.25, reported solid semi-annual returns, and highlighted efforts to reduce the NAV discount. Recent news also included Saba Capital’s 8.35% stake and continued strong 5-year average total returns. Today’s larger distribution builds directly on that pattern of incremental payout increases.

Market Pulse Summary

This announcement increased MXF’s quarterly distribution to $0.35, implying a 7.2% annualized rate against its November 30, 2025 market price, and extended the Managed Distribution Plan through 2026. The Fund estimates that just over half of the January 2026 payout comes from net investment income, with additional capital gains and a 10.63% return-of-capital component. Investors may track future disclosures on actual tax character, ongoing performance versus the 14.63% 5-year average return, and any further Board actions on the MDP.

Key Terms

managed distribution plan financial

"the Board has approved the continuation of the Fund´s MDP and declared a distribution"

A managed distribution plan is a company’s program to pay regular, predictable cash amounts to shareholders by setting a fixed schedule and target payout, often funded from operating cash, reserves, or return of capital. Think of it like a household budget that guarantees a monthly allowance: it provides steady income for investors but can mask when distributions exceed sustainable earnings, which may reduce the company’s capital over time and affect long‑term value.

investment company act of 1940 regulatory

"However, under the Investment Company Act of 1940, the Fund is required to indicate"

A U.S. federal law that sets the rulebook for pooled investment vehicles such as mutual funds, exchange-traded funds and similar money managers, requiring them to register with regulators, disclose holdings and fees, limit conflicts of interest, and follow governance standards. It matters to investors because these protections and transparency rules act like a referee and scoreboard, helping people compare funds, trust that managers follow fair practices, and spot hidden costs or risks.

net investment income financial

"Distributions may consist of net investment income, capital gains and return of capital"

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

net realized short-term capital gains financial

"Net Realized Short-Term Capital Gains | $0.0259 | 7.40 %"

Gains from selling investments held one year or less, after subtracting any short-term losses, so it represents the net profit from quick trades. Investors care because these gains are taxed at ordinary income rates rather than the lower long-term rates, which can significantly reduce after-tax returns; think of it like the higher sales tax you pay on a quick flip versus a discounted rate for holding something longer.

net realized long-term capital gains financial

"Net Realized Long-Term Capital Gains | $0.1050 | 30.01 %"

Net realized long-term capital gains are the total profit an investor actually locks in from selling assets held more than one year, after subtracting any losses or adjustments. Think of it like the net cash you keep after selling a long-owned item and paying off related losses or costs; it matters because these gains determine taxable income and after-tax investment returns, influence dividend capacity and tax planning, and usually face lower tax rates than short-term gains.

return of capital financial

"Distributions may consist of net investment income, capital gains and return of capital"

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

form 1099-div regulatory

"The Fund will send you a Form 1099-DIV for the calendar year"

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

AI-generated analysis. Not financial advice.

COLUMBIA, Md., Dec. 11, 2025 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF), announced that the Board of Directors (Board) increased the Fund´s quarterly distribution from $0.25 per share to $0.35 per share, representing a significant increase of 40.0% and a 7.2% annualized distribution rate relative to its market price as of November 30, 2025. Accordingly, the Board has approved the continuation of the Fund´s MDP and declared a distribution of $0.35 per share to stockholders of record on January 21, 2026, which is payable in cash on January 29, 2026.

The Board has approved the continuation of the Fund's MDP during 2026. The Board may amend or terminate the MDP at any time without prior notice to stockholders. Since the implementation of the MDP in September 2008, the Fund has paid a total of $27.98 per share in cash distributions to stockholders.

The amount of distributable income for each fiscal period depends on the aggregate gains and losses realized by the Fund during the entire year. Distributions may consist of net investment income, capital gains and return of capital, but the character of these distributions cannot be determined until after the end of the Fund's fiscal year. However, under the Investment Company Act of 1940, the Fund is required to indicate the source of each distribution to stockholders. The following table sets forth (A) an estimate of the source of the January 2026 distribution and (B) an estimate of the source of distributions for the current fiscal year:

Distribution Estimates	January 2026		Fiscal Year-to-date ( YTD)1
Source	Per Share Amount	Percent of Current Distribution	Per Share Amount	Percent of Fiscal Year Distributions
Net Investment Income	$0.1819	51.96 %	$0.1819	51.96 %
Net Realized Short-Term Capital Gains	$0.0259	7.40 %	$0.0259	7.40 %
Net Realized Long-Term Capital Gains	$0.1050	30.01 %	$0.1050	30.01 %
Return of Capital	$0.0372	10.63 %	$0.0372	10.63 %
Total Distribution	$0.3500	100.00 %	$0.3500	100.00 %

Information regarding the Fund's performance and distribution rates is set forth below:

Average Annual Total Return for the 5-year period ended on November 30, 20252	14.63 %
Current Annualized Distribution Rate (current fiscal year)3	-
Current Fiscal Year Cumulative Total Return4	3.04 %
Cumulative Distribution Rate (current fiscal year)5	-

¹ The Fund's current fiscal year began on November 1, 2025.

² Average Annual Total Return represents the simple arithmetic average of the Annual NAV Total Returns of the Fund for the last five years. Annual NAV Total Return is the percentage change in the Fund's NAV over a year including distributions paid and assuming reinvestment of those distributions.

³ The Current Annualized Distribution Rate is the Cumulative Distribution Rate as of November 30, 2025, annualized as a percentage of the Fund's NAV at the same date. As of the date of this press release, this rate is zero because the $0.3500 distribution has not been paid yet.

⁴ Current Fiscal Year Cumulative Total Return is the percentage change in the Fund's NAV from November 1, 2025, through November 30, 2025, including distributions paid and assuming reinvestment of those distributions.

⁵ Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2025, through November 30, 2025) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of November 30, 2025. As of the date of this press release, this rate is zero because the $0.3500 distribution has not been paid yet.

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's MDP.

The amounts and sources of distributions reported above are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report the distribution for federal income tax purposes.

CONTACT:
Tofi Dayan
+5255-9138-3350
Email: investor-relations@themexicofund.com

Patricia Baronowski     Pristine Advisers, LLC
+1-631-756-2486
Email: pbaronowski@pristineadvisers.com

About The Mexico Fund, Inc. 

The Mexico Fund, Inc. is a non-diversified closed-end management investment company with the investment objective of long-term capital appreciation through investments in securities, primarily equity, listed on the Mexican Stock Exchange. The Fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program.

This release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Fund's filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Fund undertakes no obligation to release publicly any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Mexico Fund or any other person that the events or circumstances described in such statement are material.

View original content:https://www.prnewswire.com/news-releases/the-mexico-fund-inc-announces-an-increase-in-its-quarterly-distribution-and-declares-distribution-302638178.html

SOURCE The Mexico Fund, Inc.

FAQ

What distribution did The Mexico Fund (MXF) declare on December 11, 2025?

The Board declared a quarterly cash distribution of $0.35 per share, up from $0.25.

When is the MXF distribution record date and payment date for January 2026?

Record date is January 21, 2026 and payment date is January 29, 2026.

How much of the January 2026 MXF distribution is estimated as return of capital?

Estimated return of capital is $0.0372 per share, about 10.63% of the distribution.

What is the estimated composition of MXF's $0.35 January 2026 distribution?

Estimates: $0.1819 net investment income (51.96%), $0.1050 long-term gains (30.01%), $0.0259 short-term gains (7.40%), $0.0372 return of capital (10.63%).

What does continuation of the MDP mean for MXF shareholders in 2026?

The Board approved continuation of the managed distribution policy for 2026, but it may be amended or terminated at any time without prior notice.

How has MXF performed over five years through Nov 30, 2025?

The Fund's average annual total return for the five-year period ended Nov 30, 2025 is 14.63%.