N-Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

INVESTMENT COMPANY

Investment Company Act file number 811-03170

 

 

THE MEXICO FUND, INC.

(Exact name of Registrant as specified in charter)

 

 

1775 I Street, NW, Suite 1100

Washington, DC 20006

(Address of principal executive offices) (Zip code)

 

 

José Luis Gómez Pimienta

77 Aristoteles Street, 3rd Floor

Polanco D.F. 11560 Mexico

(Name and Address of Agent for Service)

 

 

Registrant’s telephone number, including area code: (202) 261-7941

Date of fiscal year end: October 31

Date of reporting period: January 31, 2012

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

Item 1. Schedule of Investments.

As of January 31, 2012 (Unaudited)

 

Shares Held           Value      Percent of
Net Assets		  
   COMMON STOCK - 94.51%      
   Airports      
  1,225,000       Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B    $ 8,032,325         2.33 % 
     

 

 

     

 

 

  
   Beverages      
  1,865,000       Arca Continental, S.A.B. de C.V.      8,626,211         2.50   
  540,000       Coca-Cola Femsa, S.A.B. de C.V. Series L      5,285,506         1.53   
  3,850,000       Fomento Económico Mexicano, S.A.B. de C.V. Series UBD      26,953,187         7.81   
  1,000,000       Grupo Modelo, S.A.B. de C.V. Series C      6,192,893         1.79   
     

 

 

     

 

 

  
        47,057,797         13.63   
     

 

 

     

 

 

  
   Building Materials      
  16,590,000       Cemex, S.A.B. de C.V. Series CPO      11,229,050         3.25   
     

 

 

     

 

 

  
   Chemical Products      
  3,000,000       Mexichem, S.A.B. de C.V.      10,364,414         3.00   
     

 

 

     

 

 

  
   Construction and Infrastructure      
  2,200,000       Empresas ICA, S.A.B. de C.V.      3,585,270         1.04   
     

 

 

     

 

 

  
   Consumer Products      
  2,200,000       Kimberly-Clark de México, S.A.B. de C.V. Series A      12,469,185         3.61   
     

 

 

     

 

 

  
   Financial Groups      
  1,470,000       Banregio Grupo Financiero, S.A.B. de C.V. Series O      3,567,502         1.04   
  2,700,000       Grupo Financiero Banorte, S.A.B. de C.V. Series O      10,749,831         3.11   
     

 

 

     

 

 

  
        14,317,333         4.15   
     

 

 

     

 

 

  
   Food      
  5,000,000       Grupo Bimbo, S.A.B. de C.V. Series A      11,114,859         3.22   
  1,500,000       Grupo Herdez, S.A.B. de C.V.      2,936,622         0.85   
     

 

 

     

 

 

  
        14,051,481         4.07   
     

 

 

     

 

 

  
   Health Care      
  3,000,000       Genomma Lab Internacional, S.A.B. de C.V. Series B      6,574,631         1.90   
     

 

 

     

 

 

  
   Holding Companies      
  1,000,000       Alfa, S.A.B. de C.V. Series A      13,119,366         3.80   
  1,620,000       Grupo Carso, S.A.B. de C.V. Series A1      4,836,803         1.40   
     

 

 

     

 

 

  
        17,956,169         5.20   
     

 

 

     

 

 

  
   Media      
  4,500,000       Grupo Televisa, S.A.B. Series CPO      17,740,464         5.14   
     

 

 

     

 

 

  
   Mining      
  4,712,082       Grupo México, S.A.B. de C.V. Series B      14,993,448         4.34   
  180,500       Industrias Peñoles, S.A.B. de C.V.      8,628,043         2.50   
     

 

 

     

 

 

  
        23,621,491         6.84   
     

 

 

     

 

 

  

Shares Held           Value     Percent of
Net Assets		  
   COMMON STOCK     
   Retail     
  104,500       First Cash Financial Services, Inc.      4,206,162        1.22   
  2,000,000       Grupo Comercial Chedraui, S.A.B. de C.V. Series B      4,898,203        1.42   
  1,620,000       El Puerto de Liverpool, S.A.B. de C.V. Series C-1      12,302,493        3.56   
  12,780,000       Wal-Mart de México, S.A.B. de C.V. Series V      39,450,129        11.42   
     

 

 

    

 

 

  
        60,856,987        17.62   
     

 

 

    

 

 

  
   Steel     
  315,400       Ternium, S.A.      7,150,027        2.07   
     

 

 

    

 

 

  
   Stock Exchange     
  3,200,000       Bolsa Mexicana de Valores, S.A.B. de C.V. Series A      5,970,442        1.73   
     

 

 

    

 

 

  
   Telecommunications Services     
  54,768,000       América Móvil, S.A.B. de C.V. Series L      63,560,704        18.41   
  90,000       NII Holdings, Inc.      1,809,921        0.52   
     

 

 

    

 

 

  
        65,370,625        18.93   
     

 

 

    

 

 

  
   Total Common Stock    $ 326,347,691        94.51 % 
     

 

 

    

 

 

  
Securities
Principal
Amount		                    
   SHORT-TERM SECURITIES – 5.62%     
   Repurchase Agreements     
  $11,761,503       BBVA Bancomer, S.A., 4.48%, dated 01/31/12, due 02/01/12 repurchase price $11,762,967 collateralized by Bonos del Gobierno Federal.    $ 11,761,503        3.41 % 
   Time Deposits     
   Comerica Bank, 0.12%, dated 01/31/12, due 02/01/12      7,644,693        2.21   
     

 

 

    

 

 

  
   Total Short-Term Securities      19,406,196        5.62   
     

 

 

    

 

 

  
   Total Investments      345,753,887        100.13   
     

 

 

    

 

 

  
   Liabilities in Excess of Other Assets      (445,665 )      (0.13 ) 
     

 

 

    

 

 

  
   Net Assets Equivalent to $25.84 per share on 13,362,856 shares of capital stock outstanding    $ 345,308,222        100.00 % 
     

 

 

    

 

 

  

Supplemental Information

Effective November 1, 2008, the Fund adopted authoritative guidance under GAAP which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The Fund has determined that the implementation did not have a material impact on the Fund’s financial statements.

This guidance establishes a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund´s own market assumptions (unobservable inputs).

These inputs are used in determining the value of the Fund’s investments and are summarized in the following fair value hierarchy:

 

  •  

Level 1—quoted prices in active markets for identical securities

 

  •  

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

  •  

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of January 31, 2012, in valuing the Fund’s assets and liabilities carried at fair value:

 

Valuation Inputs    LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

ASSETS:

            

Investments in Securities:

            

Equity Investments(a)

    $ 326,347,691         —         —  $           326,347,691   

Short Term Investments

      —         $ 19,406,196       —  $           19,406,196   

Total Investments in Securities

    $ 326,347,691       $ 19,406,196       —  $           345,753,887   

 

(a) For detailed industry descriptions, see the accompanying Schedule of Investments.

The following is a reconciliation of the change in value of Level 3 assets (for which significant unobservable inputs were used to determine fair value):

 

     Investments in
Securities		  

Balance as of 10/31/11

    $ —     

Realized gain (loss)

      —     

Change in unrealized appreciation (depreciation)

      —     

Net Purchases (Sales)

      —     

Transfers in and/or (out) of Level 3

    $ —     

Balance as of 1/31/12

      —     

Item 2. Controls and Procedures.

(a) Based on an evaluation of Registrant’s Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) (the “Disclosure Controls”), as of a date within 90 days prior to the filing date (the “Filing Date”) of this Form N-Q (the “Report”), the Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Disclosure Controls are effectively designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the Filing Date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant’s management, including the Registrant’s Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Filed as exhibits herewith are separate certifications for Registrant’s Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(a) under Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

By:  

/s/ José Luis Gómez Pimienta

  José Luis Gómez Pimienta
  President and Principal Executive Officer
  March 30, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ José Luis Gómez Pimienta

  José Luis Gómez Pimienta
  President and Principal Executive Officer
  March 30, 2012

 

By:  

/s/ Alberto Osorio

  Alberto Osorio
  Senior Vice President, Treasurer and Principal Financial Officer
  March 30, 2012