COLUMBIA, Md., Sept. 8, 2026 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF), announced today that its Board of Directors (the "Board") and Impulsora del Fondo México, S.C., the Fund's investment advisor (the "Advisor"), have renewed and strengthened the Fund's Expense Limitation Agreement ("ELA"). The ELA was initially announced on March 12, 2019, with the objective to support the 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.
The Board and the Advisor have agreed to renew the Fund´s ELA for fiscal year 2027, committing to maintain a 1.35% ordinary expense ratio, reduced from 1.40%, beginning on November 1, 2026, through October 31, 2027, so long as Fund net assets remain greater than $320 million. Under the ELA, the Advisor will 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 that the Fund's ordinary annual expense ratio does not exceed 1.35% in the period. When Fund net assets are below the threshold of $320 million, the Advisor will still waive fees in an amount necessary to maintain the expense ratio of the Fund's variable ordinary expenses at 1.18%, in addition to the amount of $544,000. These figures represent the expense ratio of the Fund's variable ordinary expenses and the maximum amount of the Fund's fixed ordinary expenses necessary to maintain a total ordinary operating expense ratio of 1.35% when Fund net assets are $320 million.
In addition, the Fund announced that the Board declared a distribution of $0.35 per share to stockholders of record on October 21, 2026, which is payable in cash on October 29, 2026.
The Board has approved the continuation of the Fund's Managed Distribution Plan ("MDP") during 2026. 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 $29.03 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 October 2026 distribution and (B) an estimate of the source of distributions for the current fiscal year:
Distribution Estimates
October 2026 Fiscal Year-to-date ( YTD)(1)
Source Per Share Amount Percent of Current Per Share Amount Percent of Fiscal Year
Distribution Distributions
Net Investment Income $0.1737 49.62 % $0.6948 49.62 %
Net Realized Short-Term Capital Gains $0.0205 5.85 % $0.0818 5.85 %
Net Realized Long-Term Capital Gains $0.1532 43.78 % $0.6129 43.78 %
Return of Capital $0.0026 0.75 % $0.0105 0.75 %
Total Distribution $0.3500 100.00 % $1.4000 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 August 31, 2026(2) 12.65 %
Current Annualized Distribution Rate (current fiscal year)(3) 5.11 %
Current Fiscal Year Cumulative Total Return4 16.85 %
Cumulative Distribution Rate (current fiscal year)5 4.26 %
1 The Fund's current fiscal year began on November 1, 2025.
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 August 31, 2026, 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, 2025, through August 31, 2026, including distributions paid and assuming reinvestment of those distributions.
5 Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2025, through August 31, 2026) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of August 31, 2026.
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:
Tofi Dayan The Mexico Fund, Inc.
+5255-9138-3350
Email: investor-relations@themexicofund.com
Patricia Baronowski Pristine Advisers, LLC
+1-631-756-2486
Email: pbaronowski@pristineadvisers.com
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.
