THE MEXICO FUND, INC. ANNOUNCES THE STRENGTHENING AND RENEWAL OF ITS EXPENSE LIMITATION AGREEMENT AND DECLARES DISTRIBUTION

The Mexico Fund extends and tightens its 2027 expense cap while declaring a $0.35 per share cash distribution under its Managed Distribution Plan.

Rhea-AI Summary

The Mexico Fund (MXF) renewed and strengthened its Expense Limitation Agreement for fiscal year 2027, capping the ordinary expense ratio at 1.35% from November 1, 2026 through October 31, 2027 while net assets exceed $320 million.

When assets are above that threshold, the Advisor will waive fees and/or reimburse expenses so that ordinary annual expenses do not exceed 1.35%. If net assets fall below $320 million, the Advisor will still waive fees to hold variable ordinary expenses at 1.18% plus $544,000 of fixed expenses, a structure calibrated to a 1.35% total ordinary expense ratio at $320 million in assets.

The Board also declared a $0.35 per share cash distribution, payable October 29, 2026 to holders of record on October 21, 2026, and approved continuation of the Managed Distribution Plan for 2026. For October 2026, the distribution is estimated to comprise $0.1737 net investment income, $0.0205 short‑term gains, $0.1532 long‑term gains and $0.0026 return of capital, totaling $0.35 per share and $1.40 per share fiscal year‑to‑date.

Positive

• Renewed expense cap at 1.35% for FY 2027, down from 1.40%
• Advisor waives fees to keep variable expenses at 1.18% plus $544,000 fixed below $320m assets
• Declared $0.35 per share cash distribution payable October 29, 2026
• Estimated FY 2026 distributions total $1.40 per share year‑to‑date
• Five‑year average annual total return to August 31, 2026 of 12.65%
• Current fiscal‑year cumulative total return of 16.85% with a 4.26% distribution rate

Negative

• None.

News Explained

The reported distribution sources remain estimates: final amounts and tax character depend on the Fund’s investment experience through the rest of its fiscal year and applicable tax rules, with Form 1099-DIV supplying calendar-year reporting information.

Market Context

On Jul 30, 2026, MXF’s distribution-payment event coincided with a 1.93% 24-hour gain, providing a r...

Analysis

On Jul 30, 2026, MXF’s distribution-payment event coincided with a 1.93% 24-hour gain, providing a relevant prior market observation for the distribution component of this release.

Key Figures

Ordinary expense ratio: 1.35% (from 1.40%) Net asset threshold: $320 million Variable ordinary expenses: 1.18% +5 more

Ordinary expense ratio

1.35% (from 1.40%)

Fiscal year 2027 expense limitation agreement

Net asset threshold

$320 million

Threshold for maintaining the 1.35% ordinary expense ratio

Variable ordinary expenses

1.18%

Applied when net assets are below $320 million

Fixed ordinary expenses

$544,000

Additional amount under the expense limitation agreement

Distribution

$0.35 per share

Record date October 21, 2026; payable October 29, 2026

Fiscal year-to-date distribution

$1.4000 per share

Current fiscal year

Current annualized distribution rate

5.11%

As of August 31, 2026

Current fiscal year cumulative total return

16.85%

Through August 31, 2026, including distributions and reinvestment

Historical Context

3 past events · Latest: Jul 30

3 events

1. Jul 30

   Distribution payment

   24h Move

   +1.9%

   Fund paid $0.35 per share under its Managed Distribution Plan.

2. Jun 11

   Distribution declaration

   24h Move

   +3.6%

   Fund declared $0.35 per share and continued the 2026 Managed Distribution Plan.

3. Apr 30

   Distribution payment

   24h Move

   +1.4%

   Fund paid $0.35 per share under its Managed Distribution Plan.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

expense limitation agreement, ordinary expense ratio, managed distribution plan, return of capital

4 terms

expense limitation agreement financial

"have renewed and strengthened the Fund's Expense Limitation Agreement"

An expense limitation agreement is a contract in which one party promises to cap or limit the costs that another will charge or seek reimbursement for, so total outlays stay below a set amount or within defined categories. For investors, it matters because such limits make a company’s future spending more predictable, reduce the chance of unexpected bills that can hurt profits, and clarify how risks and cash responsibilities are shared — like setting a household budget to avoid surprise expenses.

ordinary expense ratio financial

"maintain a 1.35% ordinary expense ratio"

The ordinary expense ratio is the share of a fund’s average assets paid each year to cover its routine operating costs — things like management fees, administration, custody, audit and legal expenses. Expressed as a percentage, it shows how much of a fund’s assets are eaten by regular expenses and matters to investors because those costs reduce the fund’s net returns in the same way household bills reduce disposable income. It typically excludes one-time charges, trading commissions and performance-based fees.

managed distribution plan financial

"continuation of the Fund's Managed Distribution Plan"

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.

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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COLUMBIA, Md., Sept. 8, 2026 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF), announced today that its Board of Directors (the "Board") and Impulsora del Fondo México, S.C., the Fund's investment advisor (the "Advisor"), have renewed and strengthened the Fund's Expense Limitation Agreement ("ELA"). The ELA was initially announced on March 12, 2019, with the objective to support the long-term performance of the Fund and to further the interests of Fund stockholders by continuing to deliver a competitive investment vehicle providing exposure to Mexican equities.

The Board and the Advisor have agreed to renew the Fund´s ELA for fiscal year 2027, committing to maintain a 1.35% ordinary expense ratio, reduced from 1.40%, beginning on November 1, 2026, through October 31, 2027, so long as Fund net assets remain greater than $320 million. Under the ELA, the Advisor will waive fees and/or reimburse expenses (excluding amounts payable via the performance adjustment factor under the Fund's investment advisory agreement, taxes, interest, brokerage fees and any non-recurring expenses) to the extent necessary that the Fund's ordinary annual expense ratio does not exceed 1.35% in the period. When Fund net assets are below the threshold of $320 million, the Advisor will still waive fees in an amount necessary to maintain the expense ratio of the Fund's variable ordinary expenses at 1.18%, in addition to the amount of $544,000. These figures represent the expense ratio of the Fund's variable ordinary expenses and the maximum amount of the Fund's fixed ordinary expenses necessary to maintain a total ordinary operating expense ratio of 1.35% when Fund net assets are $320 million.

In addition, the Fund announced that the Board declared a distribution of $0.35 per share to stockholders of record on October 21, 2026, which is payable in cash on October 29, 2026.

The Board has approved the continuation of the Fund's Managed Distribution Plan ("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 $29.03 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 October 2026 distribution and (B) an estimate of the source of distributions for the current fiscal year:

Distribution Estimates	October 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	$0.1737	49.62 %	$0.6948	49.62 %
Net Realized Short-Term Capital Gains	$0.0205	5.85 %	$0.0818	5.85 %
Net Realized Long-Term Capital Gains	$0.1532	43.78 %	$0.6129	43.78 %
Return of Capital	$0.0026	0.75 %	$0.0105	0.75 %
Total Distribution	$0.3500	100.00 %	$1.4000	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 August 31, 20262	12.65 %
Current Annualized Distribution Rate (current fiscal year)3	5.11 %
Current Fiscal Year Cumulative Total Return4	16.85 %
Cumulative Distribution Rate (current fiscal year)5	4.26 %

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 August 31, 2026, annualized as a percentage of the Fund's NAV at the same date.

⁴ Current Fiscal Year Cumulative Total Return is the percentage change in the Fund's NAV from November 1, 2025, through August 31, 2026, including distributions paid and assuming reinvestment of those distributions.

⁵ Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2025, through August 31, 2026) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of August 31, 2026.

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          The Mexico Fund, Inc.
+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-the-strengthening-and-renewal-of-its-expense-limitation-agreement-and-declares-distribution-302871480.html

SOURCE The Mexico Fund, Inc.

FAQ

How does the Expense Limitation Agreement work when assets fall below $320 million?

When Fund net assets are below $320 million, the Advisor will still waive fees in an amount necessary to maintain the expense ratio of the Fund's variable ordinary expenses at 1.18%, plus an additional $544,000 covering fixed ordinary expenses. These figures correspond to the variable and fixed expense levels needed to keep the total ordinary operating expense ratio at 1.35% when net assets are $320 million.

What are the key dates and form of the newly declared distribution?

The Board declared a distribution of $0.35 per share to stockholders of record on October 21, 2026. This distribution is payable in cash on October 29, 2026.

What is the estimated source breakdown of the October 2026 distribution?

For October 2026, the estimated $0.35 per share distribution is composed of: $0.1737 (49.62%) net investment income, $0.0205 (5.85%) net realized short‑term capital gains, $0.1532 (43.78%) net realized long‑term capital gains, and $0.0026 (0.75%) return of capital.

What are the current distribution and performance metrics for the fiscal year?

For the fiscal year beginning November 1, 2025 and through August 31, 2026, the Fund reports a Current Annualized Distribution Rate of 5.11%, a Current Fiscal Year Cumulative Total Return of 16.85%, and a Cumulative Distribution Rate of 4.26%. Average annual total return for the five‑year period ended August 31, 2026 is 12.65%.

Does the Managed Distribution Plan guarantee the character or level of future distributions?

No. The Board has approved continuation of the Managed Distribution Plan for 2026 but may amend or terminate it at any time without prior notice. The amount and sources of distributions depend on gains and losses realized during the fiscal year and may include net investment income, capital gains, and return of capital. The amounts and sources reported are estimates and are not provided for tax reporting purposes.