The Mexico Fund, Inc. Announces Measures to Further Reduce its Expenses

COLUMBIA, Md., Nov. 3, 2020 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF) announced today that the Board of Directors of the Fund (the "Board" of the "Fund") and Impulsora del Fondo México, S.C. ("Impulsora"), the Fund's investment adviser, have further strengthened the Fund´s Expense Limitation Agreement ("ELA") between the Fund and Impulsora, which was initially announced on March 12, 2019 and further enhanced during March 2020, in order to support the continued long-term performance of the Fund and to further the interests of Fund stockholders by continuing to deliver a competitive investment vehicle providing exposure to Mexican equities.

Under the initial ELA, Impulsora agreed to waive fees and/or reimburse expenses (excluding amounts payable via the performance adjustment factor under the Fund's Investment Advisory Agreement, taxes, interest, brokerage fees and any non-recurring expenses) to the extent necessary so that the Fund's ordinary annual expense ratio does not exceed 1.50% beginning on April 1, 2019 through October 31, 2020, so long as Fund net assets remain greater than $200 million.

Additionally, as the Board and Impulsora announced on March 13, 2020, starting in March 2020, Directors' fees have been capped at 11 basis points of Fund net assets, representing a decrease of approximately 21% on Directors' compensation at current levels of Fund net assets. In addition, starting in March 2020, Impulsora agreed to continue waiving 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.

Despite these significant reductions in Fund expenses during the last two years, the Board and Impulsora have agreed to further reduce Fund expenses starting on November 1, 2020, as follows: (i) a decrease in the minimum amount paid by the Fund under the Fund Services Agreement from the current amount of $337,500 or $7.0 million Mexican pesos, whichever is less, to $270,000, equivalent to an 18% reduction at the current level of Fund assets and exchange rate, and (ii) Impulsora will maintain its commitment to a 1.50% ordinary expense ratio for fiscal 2021, (excluding amounts payable via the performance adjustment factor under the Fund's Investment Advisory Agreement, taxes, interest, brokerage fees and any non-recurring expenses), but now with a lower threshold for Fund net assets of $180 million, instead of the prior threshold of $200 million.

In addition to the significant reduction in expenses, it is important to highlight the strong investment performance of the Fund relative to its benchmark, the MSCI Mexico Index, as of October 31, 2020, as shown in the table below.

The Board believes that the Fund´s expense reduction efforts, combined with superior relative investment performance, provides investors with a competitive investment vehicle.

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.

^[1] Performance figures takes into account reinvestment of distributions

SOURCE THE MEXICO FUND INC

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