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: July 31, 2011

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 July 31, 2011 (Unaudited)

 

Shares Held         Value      Percent of
Net Assets		  
   COMMON STOCK — 95.20%      
   Airports      

800,500

    Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B    $ 4,777,598         1.20 % 

2,000,000

    Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Series B      4,039,061         1.01   
     

 

 

     

 

 

  
        8,816,659         2.21   
     

 

 

     

 

 

  
   Beverages      

1,269,927

    Arca Continental, S.A.B. de C.V.      6,959,201         1.74   

4,307,000

    Fomento Económico Mexicano, S.A.B. de C.V. Series UBD      31,126,052         7.80   

700,000

    Grupo Modelo, S.A.B. de C.V. Series C      4,319,154         1.08   
     

 

 

     

 

 

  
        42,404,407         10.62   
     

 

 

     

 

 

  
   Building Materials      

20,888,400

    Cemex, S.A.B. de C.V. Series CPO      14,702,369         3.68   
     

 

 

     

 

 

  
   Chemical Products      

3,300,000

    Mexichem, S.A.B. de C.V.      14,239,992         3.57   
     

 

 

     

 

 

  
   Commercial Banks      

2,565,000

    Compartamos, S.A.B. de C.V.      4,614,001         1.16   
     

 

 

     

 

 

  
   Construction and Infrastructure      

3,000,000

    Empresas ICA, S.A.B. de C.V.      6,099,494         1.53   

1,500,000

    OHL México, S.A.B. de C.V.      3,223,580         0.80   
     

 

 

     

 

 

  
        9,323,074         2.33   
     

 

 

     

 

 

  
   Consumer Products      

2,200,000

    Kimberly-Clark de México, S.A.B. de C.V. Series A      13,760,076         3.45   
     

 

 

     

 

 

  
   Financial Groups      

1,470,000

    Banregio Grupo Financiero, S.A.B. de C.V. Series O      3,995,859         1.00   

3,700,000

    Grupo Financiero Banorte, S.A.B. de C.V. Series O      16,170,987         4.05   
     

 

 

     

 

 

  
        20,166,846         5.05   
     

 

 

     

 

 

  
   Food      

5,000,000

    Grupo Bimbo, S.A.B. de C.V. Series A      12,031,972         3.01   
     

 

 

     

 

 

  
   Health Care      

3,400,000

    Genomma Lab Internacional, S.A.B. de C.V. Series B      7,805,103         1.95   
     

 

 

     

 

 

  
   Holding Companies      

1,400,000

    Alfa, S.A.B. de C.V. Series A      20,585,920         5.15   
     

 

 

     

 

 

  
   Media      

4,000,000

    Grupo Televisa, S.A.B. Series CPO      17,795,729         4.46   
     

 

 

     

 

 

  
   Mining      

8,000,000

    Grupo México, S.A.B. de C.V. Series B      29,469,809         7.38   

270,000

    Industrias Peñoles, S.A.B. de C.V.      11,646,071         2.92   
     

 

 

     

 

 

  
        41,115,880         10.30   
     

 

 

     

 

 

  

Shares Held         Value      Percent of
Net Assets		  
   COMMON STOCK      
   Retail      

104,500

    First Cash Financial Services, Inc.      4,521,708         1.13   

2,000,000

    Grupo Comercial Chedraui, S.A.B. de C.V. Series B      6,075,634         1.52   

1,671,000

    Grupo Famsa, S.A.B. de C.V. Series A      2,221,279         0.56   

1,000,000

    Organización Soriana, S.A.B. de C.V. Series B      2,773,659         0.69   

1,620,000

    El Puerto de Liverpool, S.A.B. de C.V. Series C-1      13,094,841         3.28   

12,780,000

    Wal-Mart de México, S.A.B. de C.V. Series V      35,262,232         8.83   
     

 

 

     

 

 

  
        63,949,353         16.01   
     

 

 

     

 

 

  
   Steel      

106,600

    Ternium, S.A.      3,090,341         0.77   
     

 

 

     

 

 

  
   Stock Exchange      

4,300,000

    Bolsa Mexicana de Valores, S.A.B. de C.V. Series A      8,467,798         2.12   
     

 

 

     

 

 

  
   Telecommunications Services      

60,010,000

    América Móvil, S.A.B. de C.V. Series L      77,317,450         19.36   
     

 

 

     

 

 

  
   Total Common Stock    $ 380,186,970         95.20 % 
     

 

 

     

 

 

  

 

Securities

Principal

Amount

                  
   SHORT-TERM SECURITIES — 4.95%     
   Repurchase Agreements     

$16,091,645

    BBVA Bancomer, S.A., 4.40%, dated 07/29/11, due 08/01/11 repurchase price $16,097,545 collateralized by Bonos del Gobierno Federal.    $ 16,091,645        4.03 % 
   Time Deposits     
   Comerica Bank, 0.10%, dated 07/29/11, due 08/01/11      3,653,555        0.92   
     

 

 

    

 

 

  
   Total Short-Term Securities      19,745,200        4.95   
     

 

 

    

 

 

  
   Total Investments      399,932,170        100.15   
     

 

 

    

 

 

  
   Liabilities in Excess of Other Assets      (583,172 )      (0.15 ) 
     

 

 

    

 

 

  
   Net Assets Equivalent to $29.89 per share on 13,362,856 shares of capital stock outstanding    $ 399,348,998        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 July 31, 2011, 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)

    $ 380,186,970         —           —         $ 380,186,970   

Short Term Investments

      —         $ 19,745,200         —         $ 19,745,200   

Total Investments in Securities

    $ 380,186,970       $ 19,745,200         —         $ 399,932,170   

 

(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 10/31/10

    $ —     

Realized gain (loss)

      —     

Change in unrealized appreciation (depreciation)

      —     

Net Purchases (Sales)

      —     

Transfers in and/or (out) of Level 3

    $ —     

Balance as of 7/31/11

      —     

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
    September 23, 2011

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
    September 23, 2011
By:      

/s/ Alberto Osorio

    Alberto Osorio
 

  Senior Vice President, Treasurer and

  Principal Financial Officer

    September 23, 2011