THE MEXICO FUND, INC. DECLARES DISTRIBUTION

Rhea-AI Summary

The Mexico Fund (NYSE: MXF) has declared a distribution of $0.22 per share to stockholders of record on January 22, 2025, payable on January 30, 2025. The Board approved continuing the Fund's Managed Distribution Plan (MDP) for 2025. The distribution breakdown includes: 45.52% from net investment income, 4.41% from short-term capital gains, 13.93% from long-term capital gains, and 36.14% as return of capital.

Since implementing the MDP in September 2008, the Fund has distributed $27.04 per share. The Fund's 5-year average annual total return through November 30, 2024, was 6.99%, with a current fiscal year cumulative total return of 0.45% from November 1, 2024, through November 30, 2024.

Positive

• Maintaining consistent dividend distribution of $0.22 per share
• Strong 5-year average annual total return of 6.99%
• 63.86% of distribution comes from actual earnings (investment income and capital gains)

Negative

• 36.14% of distribution represents return of capital, indicating earnings don't fully cover the dividend
• Low current fiscal year cumulative total return of 0.45%

Insights

Financial Analyst

The Mexico Fund's latest distribution announcement of $0.22 per share represents a mix of income sources, with 45.52% coming from net investment income and 18.34% from capital gains. The substantial 36.14% return of capital component warrants attention, as it suggests the fund is partially returning investors' principal. The fund's 5-year average annual total return of 6.99% and current fiscal year return of 0.45% indicate modest performance. The continuation of the Managed Distribution Plan (MDP) into 2025 provides predictable income streams, though investors should note the relatively high return of capital portion in the current distribution. Since 2008, the fund has distributed $27.04 per share, demonstrating a consistent income-focused approach.

Investment Fund Specialist

The distribution's composition reveals important insights about the fund's income generation capabilities. With less than half coming from net investment income and a significant return of capital component, this suggests potential challenges in generating sufficient organic returns to fully support the distribution level. The YTD performance of 0.45% is relatively modest and investors should carefully monitor whether future distributions maintain similar source compositions. The continuation of the MDP provides distribution stability but may not be sustainable if the return of capital portion remains elevated. This could potentially impact the fund's long-term NAV if investment performance doesn't improve.

COLUMBIA, Md., Dec. 13, 2024 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF), announced that the Board of Directors (Board) declared a distribution of $0.22 per share to stockholders of record on January 22, 2025, which is payable in cash on January 30, 2025.

The Board has approved the continuation of the Fund's MDP during 2025. 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 $27.04 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 2025 distribution and (B) an estimate of the source of distributions for the current fiscal year:

Distribution Estimates	January 2025		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	$0.1002	45.52 %	$0.1002	45.52 %
Net Realized Short-Term Capital Gains	$0.0097	4.41 %	$0.0097	4.41 %
Net Realized Long-Term Capital Gains	$0.0306	13.93 %	$0.0306	13.93 %
Return of Capital	$0.0795	36.14 %	$0.0795	36.14 %
Total Distribution	$0.2200	100.00 %	$0.2200	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, 20242	6.99 %
Current Annualized Distribution Rate (current fiscal year)3	-
Current Fiscal Year Cumulative Total Return4	0.45 %
Cumulative Distribution Rate (current fiscal year)5	-

¹ The Fund's current fiscal year began on November 1, 2024.

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, 2024, 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 $0.2200 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, 2024, through November 30, 2024, including distributions paid and assuming reinvestment of those distributions.

⁵ Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2024, through November 30, 2024) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of November 30, 2024. As of the date of this press release, this rate is zero because the $0.2200 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

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-declares-distribution-302329535.html

SOURCE The Mexico Fund, Inc.

FAQ

What is the amount and payment date of MXF's latest dividend distribution?

The Mexico Fund (MXF) declared a distribution of $0.22 per share, payable on January 30, 2025, to stockholders of record on January 22, 2025.

How much has MXF distributed in total since starting its Managed Distribution Plan?

Since implementing the Managed Distribution Plan (MDP) in September 2008, The Mexico Fund has paid a total of $27.04 per share in cash distributions to stockholders.

What is the source breakdown of MXF's January 2025 distribution?

The January 2025 distribution consists of 45.52% net investment income, 4.41% short-term capital gains, 13.93% long-term capital gains, and 36.14% return of capital.

What is MXF's 5-year average annual total return as of November 2024?

The Mexico Fund's average annual total return for the 5-year period ended November 30, 2024, was 6.99%.

What is MXF's current fiscal year cumulative total return?

The Mexico Fund's current fiscal year cumulative total return from November 1, 2024, through November 30, 2024, is 0.45%.