COLUMBIA, Md., June 8, 2020 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF), announced that at its quarterly meeting, the Board of Directors (Board) decided to temporarily suspend the Fund´s Managed Distribution Plan (MDP).
Global financial markets have been severely affected by the "Covid-19" pandemic, and its effects on economic activity. The Mexican equity market and the value of the Mexican peso were no exception, generating a sharp decrease in the Fund's net assets. Despite a partial recovery since April 2020, unrealized capital losses as of May 31, 2020 were $123 million. The Board considered that under current circumstances of high uncertainty, it is in the best interest of Fund stockholders to temporarily suspend the MDP in order to preserve capital. This action will enable the Fund to maintain resources to take advantage of attractive investment opportunities that are being presented in the context of depressed equity valuations. In addition to the motivations mentioned above, the Fund has experienced a significant decrease in dividends received from portfolio issuers, as several of them have canceled or suspended previously announced distributions, given the current uncertain economic environment.
The Board understands the importance of distributions to Fund stockholders and will continue to review the Fund´s MDP regularly in order to reinstall 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.
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.
SOURCE The Mexico Fund, Inc.