Description

The Mexico Fund, Inc. (the “Fund”) 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. The Fund’s shares are listed and traded on the New York Stock Exchange (“NYSE”) under the symbol “MXF.”

Managed Distribution Plan (“MDP”)

On June 8, 2020, the Fund announced that its Board of Directors (the “Board”) decided to temporarily suspend the Fund´s MDP. Global financial markets have recovered during recent months; however, the overall economic activity remains affected by the “Covid-19” pandemic, and the Fund still maintains a significant amount of unrealized capital losses, which would result in substantial distributions from return of capital. Under this scenario, the Board considered that it is in the best interest of Fund stockholders to maintain temporarily suspended the Fund´s MDP. Nevertheless, the Board will continue to review the Fund´s MDP regularly in order to reinstate it as soon as deemed advisable by the Board. In addition, the Fund will continue to distribute to shareholders all of its net investment income and net realized capital gains, if any, at least annually, even while the Fund´s MDP remains suspended. The Fund’s Board of Directors may amend or terminate the MDP at any time without prior notice to stockholders. You should not draw any conclusions about the Fund’s investment performance from the amount of distributions or from the terms of the Fund’s MDP.

Highlights

These figures represent past performance. Past performance does not guarantee future results. The Fund's investment return and principal value will fluctuate so that an investor's shares, at the time of sale, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above.

Top Ten Holdings (64.95% of Net Assets)
1 América Móvil	13.55%	6 Cemex	5.50%
2 Grupo México	9.08%	7 Orbia Advance Corporation	3.96%
3 Grupo Financiero Banorte	8.48%	8 Alfa	3.76%
4 Wal-Mart de México	7.58%	9 Kimberly-Clark de México	3.37%
5 Fomento Económico Mexicano	6.42%	10 Gruma	3.25%

Holdings are subject to change and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities shown.

Fund Manager´s Comments

Global equity markets registered positive returns during May 2021. The MSCI World Index and the MSCI Emerging Markets Index increased 1.3% and 2.1%, respectively, during the month. In the United States, the DJIA and the S&P 500 increased 1.9% and 0.5%, respectively; the interest rate on the 10-year Treasury note decreased 4 basis points to 1.59% and the U.S. dollar depreciated 1.6% (measured by the DXY Index⁵). In Mexico, the MSCI Mexico Index increased 8.3% and the Mexican peso appreciated 1.5% to Ps. $19.95, whereas the Fund’s NAV increased 6.3%, underperforming its benchmark during the month; however, the Fund’s NAV has outperformed its benchmark in long term periods from one to ten years shown in the performance table of the prior page.

In local news, Mexico´s Central Bank maintained unchanged its overnight interest rate at 4.00%. Mexico´s official GDP⁶ for the first quarter of 2021 reported an annual decrease of 2.8%; however, it kept its sequential recovery, increasing 0.8% relative to the fourth quarter of 2020. Fitch Ratings affirmed Mexico´s investment grade credit rating of ‘BBB-’ with a stable outlook, supported by a relatively stable and robust external finances, although the rating is affected by a constrained growth potential.

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The information presented in this report has been derived from the sources indicated. Neither The Mexico Fund, Inc. nor its Adviser, Impulsora del Fondo México, S.C., has independently verified or confirmed the information presented herein.

An investment in the Fund entails special risk considerations, including among others the risks of foreign investments, Mexican investments, market illiquidity and volatility, market corrections, risks associated with the Mexican economy, political factors and security, currency exchange rate fluctuations, NAV discount risk, foreign custody risk, dollar denominated investments risk and risks associated with the concentration of the Mexican equity market. Investors should consider their investment goals, time horizons and risk tolerance before investing in the Fund. An investment in the Fund is not appropriate for all investors, and the Fund is not intended to be a complete investment program. Investors should carefully review and consider the Fund's investment objective, risks, charges and expenses before investing.