N-Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

INVESTMENT COMPANY

Investment Company Act file number 811-03170

 

 

THE MEXICO FUND, INC.

(Exact name of Registrant as specified in charter)

 

 

1900 K Street, NW

Washington, DC 20006

(Address of principal executive offices) (Zip code)

 

 

José Luis Gómez Pimienta

77 Aristoteles Street, 3rd Floor

Polanco D.F. 11560 Mexico

(Name and Address of Agent for Service)

 

 

Registrant’s telephone number, including area code: (202) 261-7941

Date of fiscal year end: October 31

Date of reporting period: July 31, 2013

 

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

Item 1. Schedule of Investments.

As of July 31, 2013 (Unaudited)

 

Shares Held           Value      Percent of
Net Assets		  
   COMMON STOCK - 90.92%      
   Airports      
  700,000       Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B    $ 8,328,307         2.05 % 
     

 

 

     

 

 

  
   Beverages      
  1,500,000       Arca Continental, S.A.B. de C.V.      11,270,028         2.77   
  2,900,000       Fomento Económico Mexicano, S.A.B. de C.V. Series UBD      29,013,666         7.13   
  2,215,000       Organización Cultiba, S.A.B. de C.V. Series B      5,975,907         1.47   
     

 

 

     

 

 

  
        46,259,601         11.37   
     

 

 

     

 

 

  
   Building Materials      
  26,020,800       Cemex, S.A.B. de C.V. Series CPO      30,083,740         7.39   
     

 

 

     

 

 

  
   Chemical Products      
  3,650,000       Alpek, S.A.B. de C.V. Series A      8,290,763         2.04   
  3,190,000       Mexichem, S.A.B. de C.V.      14,975,361         3.68   
     

 

 

     

 

 

  
        23,266,124         5.72   
     

 

 

     

 

 

  
   Construction and Infrastructure      
  2,300,000       Empresas ICA, S.A.B. de C.V.      4,875,668         1.20   
     

 

 

     

 

 

  
   Consumer Products      
  6,000,000       Kimberly-Clark de México, S.A.B. de C.V. Series A      19,792,648         4.86   
     

 

 

     

 

 

  
   Energy      
  1,200,000       Infraestructura Energética Nova, S.A.B de C.V.      4,766,258         1.17   
     

 

 

     

 

 

  
   Financial Groups      
  1,200,000       Banregio Grupo Financiero, S.A.B. de C.V. Series O      7,295,005         1.79   
  4,649,930       Grupo Financiero Banorte, S.A.B. de C.V. Series O      29,637,278         7.28   
  3,954,000       Grupo Financiero Santander Mexicano, S.A.B de C.V. Series B      11,502,997         2.83   
     

 

 

     

 

 

  
        48,435,280         11.90   
     

 

 

     

 

 

  
   Food      
  3,000,000       Grupo Bimbo, S.A.B. de C.V. Series A      10,179,076         2.50   
  1,000,000       Grupo Herdez, S.A.B. de C.V.      3,225,730         0.79   
     

 

 

     

 

 

  
        13,404,806         3.29   
     

 

 

     

 

 

  
   Holding Companies      
  10,500,000       Alfa, S.A.B. de C.V. Series A      27,041,706         6.64   
  1,620,000       Grupo Carso, S.A.B. de C.V. Series A1      8,091,093         1.99   
  1,000,000       KUO, S.A.B. de C.V. Series B      2,113,572         0.52   
     

 

 

     

 

 

  
        37,246,371         9.15   
     

 

 

     

 

 

  

Shares Held           Value      Percent of
Net Assets		  
   COMMON STOCK - 90.92%      
   Media      
  3,042,000       Grupo Televisa, S.A.B. Series CPO      16,502,587         4.05   
     

 

 

     

 

 

  
   Mining      
  6,750,000       Grupo México, S.A.B. de C.V. Series B      20,861,805         5.13   
     

 

 

     

 

 

  
   Restaurants      
  2,700,000       Alsea, S.A.B. de C.V.      7,401,037         1.82   
     

 

 

     

 

 

  
   Retail      
  1,500,000       El Puerto de Liverpool, S.A.B. de C.V. Series C-1      17,359,802         4.27   
  2,740,000       Grupo Comercial Chedraui, S.A.B. de C.V. Series B      8,913,823         2.19   
  8,100,000       Wal-Mart de México, S.A.B. de C.V. Series V      22,234,920         5.46   
     

 

 

     

 

 

  
        48,508,545         11.92   
     

 

 

     

 

 

  
   Stock Exchange      
  3,200,000       Bolsa Mexicana de Valores, S.A.B. de C.V. Series A      8,610,745         2.12   
     

 

 

     

 

 

  
   Telecommunications Services      
  30,000,000       América Móvil, S.A.B. de C.V. Series L      31,668,238         7.78   
     

 

 

     

 

 

  
   Total Common Stock    $ 370,011,760         90.92 % 
     

 

 

     

 

 

  
   REAL ESTATE INVESTMENT TRUSTS - 3.31%      
  1,750,000       Fibra Shop Portafolios Inmobiliarios, S.A.P.I. de C.V. Series 13      2,398,484         0.59   
  3,985,000       Macquaire México Real Estate Management S.A. de C.V. Series 12      8,062,645         1.98   
  1,432,327       PLA Administradora Industrial, S. de R.L. de C.V. Series 13      2,996,952         0.74   
     

 

 

     

 

 

  
      $ 13,458,081         3.31   
     

 

 

     

 

 

  
   Total Equity Securities    $ 383,469,841         94.23 % 
     

 

 

     

 

 

  
Securities
Principal
Amount		                     
   SHORT-TERM SECURITIES - 5.68%      
   Repurchase Agreements      
  $15,793,404       BBVA Bancomer, S.A., 3.94%, dated 07/31/13, due 08/01/13 repurchase price $15,795,132 collateralized by Bonos del Gobierno Federal.    $ 15,793,404         3.88 % 
   Time Deposits      
  7,339,962       Comerica Bank, 0.03%, dated 07/31/13, due 08/01/13      7,339,962         1.80   
     

 

 

     

 

 

  
   Total Short-Term Securities      23,133,366         5.68   
     

 

 

     

 

 

  
   Total Investments      406,603,207         99.91   
   Other Assets in Excess of Liabilities      368,835         0.09   
     

 

 

     

 

 

  
   Net Assets Equivalent to $29.93 per share on 13,597,746 shares of capital stock outstanding    $ 406,972,042         100.00 % 
     

 

 

     

 

 

  

Supplemental Information

Effective November 1, 2008, the Fund adopted authoritative guidance under GAAP which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The Fund has determined that the implementation did not have a material impact on the Fund’s financial statements.

This guidance establishes a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs).

These inputs are used in determining the value of the Fund’s investments and are summarized in the following fair value hierarchy:

 

  •   Level 1—quoted prices in active markets for identical securities

 

  •   Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

  •   Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. An investment’s level within the fair value hierarchy is based on the lowest level of any input, both individually and in aggregate, that is significant to the fair value measurement.

The following is a summary of the inputs used as of July 31, 2013, in valuing the Fund’s assets and liabilities carried at fair value:

 

Valuation Inputs    LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

ASSETS:

            

Investments in Securities:

            

Equity Investments(a)

    $ 383,469,841         —           —         $ 383,469,841   

Short Term Investments(b)

      —         $ 23,133,366         —         $ 23,133,366   

Total Investments in Securities

    $ 383,469,841       $ 23,133,366         —         $ 406,603,207   

 

(a) For detailed industry descriptions, see the accompanying Schedule of Investments.
(b) These assets consist of time deposits and repurchase agreements with maturities of one business day. They are classified as Level 2 solely as a result of the Fund’s valuation technique for short-term investments, using amortized cost which approximates fair value, instead of quoted prices in active markets, and thereby may not present any higher risk than Level 1 assets.

The following is a reconciliation of the change in value of Level 3 assets (for which significant unobservable inputs were used to determine fair value):

 

     Investments in
Securities		  

Balance as of 10/31/12

    $ —     

Realized gain (loss)

      —     

Change in unrealized appreciation (depreciation)

      —     

Net Purchases (Sales)

      —     

Transfers in and/or (out) of Level 3

    $ —     

Balance as of 7/31/13

      —     

Equity Shelf Program

During the fiscal quarter ended July 31, 2013, the Fund sold 156,643 shares of its common stock through its Equity Shelf Program (“ESP”), with net proceeds to the Fund of $4,700,025.89. The commissions paid by the Fund to the sales agent, UBS Securities LLC, for such sales amounted to $47,592.63.

Item 2. Controls and Procedures.

(a) Based on an evaluation of Registrant’s Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) (the “Disclosure Controls”), as of a date within 90 days prior to the filing date (the “Filing Date”) of this Form N-Q (the “Report”), the Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Disclosure Controls are effectively designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the Filing Date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant’s management, including the Registrant’s Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

Filed as exhibits herewith are separate certifications for Registrant’s Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(a) under Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

By:  

/s/ José Luis Gómez Pimienta

  José Luis Gómez Pimienta
  President and Principal Executive Officer                        
  September 27, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ José Luis Gómez Pimienta

  José Luis Gómez Pimienta
  President and Principal Executive Officer
  September 27, 2013
By:  

/s/ Alberto Osorio

  Alberto Osorio
  Senior Vice President, Treasurer and Principal Financial Officer
  September 27, 2013