THE MEXICO FUND, INC. ISSUES ITS 2025 ANNUAL REPORT

The Mexico Fund, Inc. (NYSE: MXF) recently published its Annual Report for fiscal year 2025, which ended on October 31, 2025. The report highlights a strong performance, with the Fund's net asset value (NAV) per share achieving a total return of 31.17% and market price seeing an impressive 46.48% increase. These results exceeded the Morgan Stanley Capital International (MSCI) Mexico Index's increase of 38.34% during the same period. The Fund's market price per share reached $19.39, while the NAV per share hit $22.02, reducing the discount to NAV from 20.44% at the end of fiscal year 2024 to 11.94%.

The Board of Directors announced a significant increase in the Fund's quarterly distributions, raising it from $0.25 to $0.35 per share—an increase of 40%—translating into an annualized distribution rate of 7.2% based on the market price. A distribution payment is scheduled for January 29, 2026, to shareholders of record as of January 21, 2026.

Additionally, the Fund's Expense Limitation Agreement was renewed for fiscal year 2026, maintaining an ordinary expense ratio cap of 1.40%, contingent upon net assets exceeding $260 million. For fiscal 2025, the Fund maintained an ordinary expense ratio of 1.38%, below this limit.

The Mexico Fund, Inc. is designed for long-term capital appreciation through investments primarily in equity securities listed on the Mexican Stock Exchange, catering to investors looking to include Mexican companies in their portfolios. The Fund cautions that any forward-looking statements within the report reflect its current expectations and are subject to various risks and uncertainties.

The Mexico Fund, Inc. (NYSE: MXF) released its 2025 Annual Report, showcasing robust performance metrics that may attract investor interest. Over the fiscal year, the Fund delivered a noteworthy total return on market price of 46.48%, significantly outperforming the MSCI Mexico Index’s return of 38.34%. The Fund’s NAV per share also demonstrated healthy growth with a 31.17% return. Such performance indicates effective management and a favorable environment for Mexican equities.

As of October 31, 2025, the Fund's shares traded at $19.39, with an NAV of $22.02, positioning the Fund at an 11.94% discount to NAV, an improvement from a 20.44% discount at the end of the previous fiscal year. This narrowing discount may signal increasing investor confidence and presents a compelling entry point for prospective investors seeking exposure to the Mexican market.

Moreover, the Fund's board recently decided to increase its quarterly distributions from $0.25 to $0.35 per share, resulting in an impressive annualized distribution rate of 7.2%. Such a healthy yield, paired with solid long-term returns—annualized at 18.42% over the past five years—positions MXF as a viable option for those pursuing income-focused investments.

The Fund's ongoing expense limitations, with an ordinary expense ratio of 1.38%, further imbue confidence as management maintains operational efficiency. However, prospective investors should remain vigilant about the inherent risks in the Mexican market, including economic fluctuations and political dynamics.

In summary, given its strong performance, narrowing discount to NAV, and attractive distribution increase, The Mexico Fund, Inc. presents a compelling opportunity for investors looking to diversify with a focus on the Mexican equity market. Investors should, however, conduct their due diligence and consider market conditions before making investment decisions.