Mexico Fund : November 2021 Monthly Summary Report - Form 8-K

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")

The Board of Directors of the Fund has authorized quarterly distributions of $0.18 per share under the MDP. With each distribution, the Fund will issue a notice to stockholders and an accompanying press release, which will provide detailed information regarding the amount and composition of the distribution and other information required by the Fund's MDP exemptive order. 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

Total Net Assets (million)1	$248.19	Daily Average Number of Shares Traded2	20,904
NAV per share1	$16.54	Outstanding Shares3	15,005,224
Closing price2	$14.03	Expense Ratio (4/30/2021)	1.56%
Discount	15.18%	Portfolio Turnover (4/30/2021)	9.21%

Performance1	Cumulative	Annualized
1 Month	YTD	1 Year	3 Years	5 Years	10 Years
MXF Market Price	-6.28%	5.13%	12.90%	8.08%	4.12%	2.06%
MXF NAV	-4.94%	6.09%	13.13%	8.04%	4.13%	2.26%
MSCI Mexico Index	-5.64%	8.47%	15.75%	7.04%	3.27%	0.41%

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.

1 Source: Impulsora del Fondo México, S.C. Performance figures take into account reinvestments of distributions.

2 Source: NYSE. Shares traded figure represents average volume traded on U.S. consolidated markets during the month.

3 During November 2021, the Fund repurchased no shares.

Top Ten Holdings (65.79% of Net Assets)
1 América Móvil	15.19%	6 Cemex	4.82%
2 Grupo México	8.76%	7 Gruma	3.91%
3 Wal-Mart de México	8.48%	8 Alfa	3.86%
4 Grupo Financiero Banorte	6.74%	9 Orbia Advance Corporation	3.75%
5 Fomento Económico Mexicano	6.59%	10 Ternium	3.69%

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 negative returns during November 2021. The MSCI World Index and the MSCI Emerging Markets Index decreased 0.6% and 3.6%, respectively, during the month. In the United States, the Federal Reserve (the "Fed") maintained unchanged its target interest rate at a range of between 0.00% and 0.25%. However, it decided to begin reducing the amount of its monthly government asset purchases starting in November 2021, due to progress in economic activity and higher inflation. For its part, the U.S. House of Representatives approved an infrastructure plan containing additional investments of $550 billion over the next five years. The DJIA and the S&P 500 decreased 3.7% and 0.8%, respectively; the interest rate on the 10-year Treasury note decreased 11 basis points to 1.44% and the U.S. dollar appreciated 1.9% (measured by the DXY Index⁴). In Mexico, the MSCI Mexico Index decreased 5.6%, driven by a 4.1% depreciation of the Mexican peso to Ps. $21.45, whereas the Fund's NAV decreased 4.9%, outperforming its benchmark during the month and during long term periods from three to ten years, as shown in the performance table of the prior page.

In local news, Mexico´s Central Bank ("Banxico") increased its overnight interest rate by 25 basis points for the fourth consecutive time, raising it to 5.00%. Regarding Banxico´s Board composition, the President revoked the appointment of Arturo Herrera as next governor and nominated in his place current Deputy Finance Minister, Victoria Rodríguez, which would replace Alejandro Díaz de León, as his term expires on December 31, 2021. Ms. Rodríguez ratified that she would comply with Banxico's autonomy and will maintain the Bank's sole objective to combat inflation. Official GDP⁵ for the third quarter of 2021 increased 4.7% on an annual basis, which results in an annual expansion of 7.2% during the first three quarters of 2021. Fitch Ratings affirmed Mexico´s 'BBB-' credit rating, supported by a prudent macroeconomic framework and stable external finances and debt levels. The International Monetary Fund renewed Mexico´s two-year Flexible Credit Line ("FCL") for up to $50 billion, a recognition of a solid economic policy. The amount was reduced from $61 billion based on Mexico´s request due to improved economic prospects and as part of Mexico´s strategy to exit the FCL in an orderly and gradually manner.

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.

Important Risk Disclosure

All performance shown is historical. Closed-end funds are traded on the secondary market through one of the stock exchanges. Shares of closed-end funds may trade above (premium) or below (discount) the NAV of the fund's portfolio. The NAV is the value of an entity's assets less the value of its liabilities. The Market Price is the current price at which an asset can be bought or sold. There is no assurance that the Fund will achieve its investment objective.

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.

4 DXY Index computes the value of the U.S. dollar relative to a basket of foreign currencies.

5 Official GDP figures are seasonally adjusted.