THE MEXICO FUND, INC. ISSUES ITS 2025 SEMI-ANNUAL REPORT

Rhea-AI Summary

The Mexico Fund (NYSE: MXF) has released its fiscal 2025 Semi-Annual Report for the period ended April 30, 2025. The Fund's NAV achieved a total return of 13.22%, while its market price registered a 14.21% return, slightly underperforming its benchmark MSCI Mexico Index's 15.23% return.

The Fund's Board of Directors increased the quarterly distribution by 13.6% from $0.22 to $0.25 per share, representing a 6.4% annualized distribution rate. As of April 30, 2025, the Fund's market price was $15.53 with a NAV of $19.46, reflecting a discount of 20.20%. The Fund maintained its expense ratio cap at 1.40% for fiscal year 2025.

Positive

• Quarterly distribution increased by 13.6% to $0.25 per share
• Strong NAV total return of 13.22% in first half of fiscal 2025
• Market price total return of 14.21% in first half of fiscal 2025
• NAV outperformed benchmark for 5-year, 10-year, and since December 2008 periods
• Expense ratio maintained at capped level of 1.40%

Negative

• Fund underperformed MSCI Mexico Index in first half of 2025 (13.22% vs 15.23%)
• Significant discount to NAV at 20.20%
• Negative 1-year returns across market price (-8.40%) and NAV (-9.86%)

Insights

Investment Fund Analyst

Mexico Fund reports 13.22% NAV return, increases quarterly distribution by 13.6% to $0.25 per share with NAV outperforming benchmarks long-term.

The Mexico Fund has released its semi-annual results showing mixed performance. For the first half of fiscal 2025, the Fund posted a 13.22% NAV total return, underperforming its benchmark MSCI Mexico Index which returned 15.23%. However, the Fund's market price saw a stronger 14.21% total return over the same period.

Despite short-term underperformance, the long-term track record remains solid. The Fund's NAV has outperformed its benchmark over the crucial 5-year, 10-year, and since-December 2008 periods. This demonstrates consistent value-add from the portfolio management team that assumed control in 2008.

A key positive development is the 13.6% increase in quarterly distribution from $0.22 to $0.25 per share. This represents an annualized yield of 6.4% based on the April 30 market price, making it attractive in the current yield environment.

The fund continues to trade at a significant discount to NAV at 20.20%, marginally improved from 20.44% at fiscal year-end 2024. This persistent discount indicates potential opportunity for value investors but also suggests ongoing market concerns about Mexican market exposure.

Expense control remains disciplined with the ordinary expense ratio capped at 1.40%, which the Fund successfully maintained during the reporting period. This cost discipline helps preserve returns for shareholders, particularly important for a single-country fund with inherently higher risk profile.

COLUMBIA, Maryland, June 26, 2025 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF), today issued its fiscal 2025 Semi-Annual Report for the period ended April 30, 2025.

A full version of the report is available at the company´s website – www.themexicofund.com

Semi-Annual Report 2025 Highlights

During the first half of fiscal year 2025, the Fund's NAV per share registered a total return of 13.22%, compared with a return of 15.23% registered by its benchmark, the Morgan Stanley Capital International ("MSCI") Mexico Index, while the Fund´s market price registered a total return of 14.21%. As of April 30, 2025, the Fund´s NAV outperformed its benchmark during the five- and ten-year periods and since December 2008, when the current portfolio management team assumed investment management responsibilities, as shown in the table below:

	Annualized % Return in USD
	1-year	3-years	5-years	10-years	Dec-08
MXF Market Price	-8.40	6.46	17.37	1.76	7.33
MXF NAV	-9.86	7.94	18.05	3.00	7.44
MSCI Mexico Index	-7.25	8.46	17.43	2.41	5.99

 

As of April 30, 2025, the Fund's market price and NAV per share were $15.53 and $19.46, respectively, reflecting a discount of 20.20%, compared with a discount of 20.44% at the end of fiscal year 2024.

The Board of Directors increased the Fund´s quarterly distribution from $0.22 per share to $0.25 per share, representing an increase of 13.6% and a 6.4% annualized distribution rate relative to its market price as of April 30, 2025. Accordingly, the Fund has declared a distribution of $0.25 per share to be paid on July 30, 2025 to stockholders of record as of July 22, 2025.

The Fund´s Expense Limitation Agreement was renewed for fiscal year 2025 with a cap on the ordinary expense ratio (which excludes the performance component of the Investment Advisory fee, among other extraordinary expenses) of 1.40%, so long as Fund net assets remain greater than $260 million. The Fund's ordinary expense ratio during the first half of fiscal year 2025 was 1.40%, in line with the limit of 1.40%.

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.

CONTACT:

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

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

 

View original content:https://www.prnewswire.com/news-releases/the-mexico-fund-inc-issues-its-2025-semi-annual-report-302492421.html

SOURCE The Mexico Fund, Inc.

FAQ

What was The Mexico Fund's (MXF) performance in the first half of fiscal 2025?

The Fund's NAV achieved a total return of 13.22% and market price returned 14.21%, slightly below its benchmark MSCI Mexico Index return of 15.23%.

What is the new quarterly dividend for The Mexico Fund (MXF)?

The Fund increased its quarterly distribution by 13.6% to $0.25 per share, representing a 6.4% annualized distribution rate, payable on July 30, 2025.

What is The Mexico Fund's (MXF) current discount to NAV?

As of April 30, 2025, the Fund traded at a 20.20% discount to NAV, with a market price of $15.53 and NAV of $19.46.

How has The Mexico Fund (MXF) performed compared to its benchmark over longer periods?

The Fund's NAV has outperformed the MSCI Mexico Index over the five-year period (18.05% vs 17.43%), ten-year period (3.00% vs 2.41%), and since December 2008 (7.44% vs 5.99%).

What is The Mexico Fund's (MXF) expense ratio for fiscal 2025?

The Fund maintained its ordinary expense ratio at 1.40%, in line with the Expense Limitation Agreement cap for funds with net assets greater than $260 million.