The Mexico Fund, Inc. : Declares Distribution and Maintains Its Commitment to a Competitive Expense Ratio

COLUMBIA, Maryland, March 13, 2020 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF) announced that the Board of Directors (Board) declared a distribution of $0.18 per share to stockholders of record on April 23, 2020, which is payable in cash on April 30, 2020.

Global equity markets have decreased significantly during calendar year 2020, affected by the "Covid-19" virus and its impact on global economic activity. In addition, OPEC members failed to agree with non-OPEC members to a reduction in oil production, triggering a sharp decrease in the price of oil. As a result, risk aversion has increased significantly, with a severe effect on equity valuations.

In light of the current difficult environment, the Board decided to adjust the Fund's Managed Distribution Plan (MDP). The Fund will now a pay a quarterly distribution of $0.18 per share; this amount represents an annualized distribution rate of 7.6% relative to the market price of $9.53 as of March 12, 2020. 

In addition, the Fund's Board of Directors and its Investment Adviser remain committed to maintaining a competitive expense ratio through the Expense Limitation Agreement (ELA) announced on March 12, 2019, which was set in place for the period April 1st, 2019, through October 31st, 2020, as long as Fund net assets remained above $200 million. To further support a competitive expense ratio for the Fund, starting in March 2020, Directors' fees will be capped at 11 basis points of Fund net assets, from 14 basis points until February 2020, representing a decrease of approximately 30% on Directors' compensation at current levels of Fund net assets. In addition, Impulsora del Fondo México, S.C., the Fund's investment adviser, will continue to waive a portion of its fees through October 31, 2020, when applicable, even when Fund net assets are below the prior threshold of $200 million, in an amount necessary to maintain an ordinary operating expense ratio of 1.50% at a hypothetical Fund net asset  level of $200 million. Due to the recent decline in the Fund's net assets to below $200 million, the Fund's current actual ordinary operating expense ratio will be above 1.50%.

Under the Fund's MDP, the Fund pays quarterly distributions of $0.18 per share. The Board has ratified the continuation of the Fund's MDP during 2020. The Board may amend or terminate the MDP at any time without prior notice to stockholders. Since the implementation of the MDP in September 2008, the Fund has paid a total of $24.10 per share in cash distributions to stockholders.

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 (A) an estimate of the source of the April 2020 distribution and (B) an estimate of the source of distributions for the current fiscal year:

Distribution Estimates	April 2020		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	$0.0660	36.67%	$0.1319	30.67%
Net Realized Short-Term Capital Gains	$0.0173	9.61%	$0.0346	8.05%
Net Realized Long-Term Capital Gains	-	-	-	-
Return of Capital	$0.0967	53.72%	$0.2635	61.28%
Total Distribution	$0.1800	100.00%	$0.4300	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 February 29, 20202	(3.77)%
Current Annualized Distribution Rate (current fiscal year)3	5.34%
Current Fiscal Year Cumulative Total Return4	(6.35)%
Cumulative Distribution Rate (current fiscal year)5	1.76%

¹The Fund's current fiscal year began on November 1, 2019.

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 February 29, 2020, 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, 2019, through February 29, 2020, including distributions paid and assuming reinvestment of those distributions.

⁵ Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2019, through February 29, 2020) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of February 29, 2020.

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:
Alberto Gómez Pimienta
[phone]
Email: [e-mail]

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.