THE MEXICO FUND, INC. PAYS DISTRIBUTION
Rhea-AI Summary
The Mexico Fund (NYSE: MXF) has announced a cash distribution of $0.22 per share to stockholders of record as of April 22, 2025, payable on April 30, 2025. The distribution breakdown includes:
- Net Investment Income: 46.34% ($0.1020 per share)
- Net Realized Short-Term Capital Gains: 8.23% ($0.0181)
- Net Realized Long-Term Capital Gains: 10.10% ($0.0222)
- Return of Capital: 35.33% ($0.0777)
The fund's performance metrics show a 21.15% average annual total return for the 5-year period ended March 31, 2025. The current annualized distribution rate stands at 3.00%, with a fiscal year-to-date cumulative total return of 2.08%. The fund operates under a Managed Distribution Plan (MDP), with distributions subject to final tax reporting through Form 1099-DIV.
Positive
- Strong 5-year average annual total return of 21.15%
- Distribution of $0.22 per share to stockholders
- Net investment income comprises 46.34% of distribution
- Combined capital gains represent 18.33% of distribution
Negative
- High return of capital at 35.33% of distribution, potentially unsustainable
- Low current fiscal year cumulative total return of 2.08%
- Modest current annualized distribution rate of 3.00%
- Low cumulative distribution rate of 1.24% for current fiscal year
Insights
MXF continues its scheduled $0.22 distribution with 35.33% sourced from return of capital amid strong 5-year returns but modest recent performance.
The Mexico Fund's announced
This return of capital component warrants attention as it effectively returns investors' principal rather than distributing earned income. While this maintains the distribution level, it can potentially affect the fund's NAV over time if not supported by adequate performance.
The fund's impressive
With a current annualized distribution rate of
For income-focused investors, this distribution maintains expected yield while the return of capital component offers potential tax advantages, though it requires monitoring within the context of overall fund performance.
As a general matter, 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 an estimate of the sources of the April 30, 2025, distribution and distributions paid in the current fiscal year:
Distribution Estimates | April 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 | 46.34 % | 46.34 % | ||
Net Realized Short-Term Capital Gains | 8.23 % | 8.23 % | ||
Net Realized Long-Term Capital Gains | 10.10 % | 10.10 % | ||
Return of Capital | 35.33 % | 35.33 % | ||
Total Distribution | 100.00 % | 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 March 31, 20252 | 21.15 % |
Current Annualized Distribution Rate (current fiscal year)3 | 3.00 % |
Current Fiscal Year Cumulative Total Return4 | 2.08 % |
Cumulative Distribution Rate (current fiscal year)5 | 1.24 % |
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 March 31, 2025, 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, 2024 through March 31, 2025, including distributions paid and assuming reinvestment of those distributions.
5 Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2024, through March 31, 2025) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of March 31, 2025.
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.
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SOURCE The Mexico Fund, Inc.
FAQ
What is the Mexico Fund (MXF) distribution amount for April 30, 2025?
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