The Mexico Equity and Income Fund, Inc. | ||||||
Schedule of Investments | ||||||
October 31, 2023 (Unaudited) | ||||||
MEXICO - 100.19% | Shares | Value | ||||
COMMON STOCKS - 87.34% | ||||||
Airlines - 1.91% | ||||||
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. - Series A (a) | 1,814,363 | $ | 1,034,536 | |||
Airports - 4.98% | ||||||
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. - Series B | 99,300 | 758,038 | ||||
Grupo Aeroportuario del Pacifico, S.A.B. de C.V. - Series B | 69,807 | 814,305 | ||||
Grupo Aeroportuario del Sureste, S.A.B. de C.V. - Series B | 52,568 | 1,132,913 | ||||
2,705,256 | ||||||
Auto Parts and Equipment - 3.84% | ||||||
Nemak, S.A.B. de C.V. (a) | 11,794,005 | 2,086,798 | ||||
Beverages - 15.72% | ||||||
Arca Continental, S.A.B. de C.V. | 500,836 | 4,491,107 | ||||
Fomento Economico Mexicano, S.A.B. de C.V. - Series UBD | 357,158 | 4,042,468 | ||||
8,533,575 | ||||||
Building Materials - 10.88% | ||||||
Cemex, S.A.B. de C.V. - Series CPO (a) | 7,424,489 | 4,459,882 | ||||
Grupo Cementos de Chihuahua, S.A.B. de C.V. | 162,242 | 1,444,601 | ||||
5,904,483 | ||||||
Communication Services - 8.59% | ||||||
America Movil, S.A.B. de C.V. (a) | 5,648,565 | 4,665,103 | ||||
Construction and Infrastructure - 1.69% | ||||||
Promotora y Operadora de Infraestructura, S.A.B. de C.V. | 64,184 | 525,391 | ||||
Promotora y Operadora de Infraestructura, S.A.B. de C.V. - Series L | 69,065 | 394,531 | ||||
919,922 | ||||||
Consumer Products - 1.83% | ||||||
Kimberly-Clark de Mexico, S.A.B. de C.V. - Series A | 542,000 | 993,572 | ||||
Financial Groups - 5.78% | ||||||
Grupo Financiero Banorte, S.A.B. de C.V. - Series O | 253,398 | 2,056,531 | ||||
Regional, S.A.B. de C.V. | 142,106 | 1,081,027 | ||||
3,137,558 | ||||||
Food - 3.78% | ||||||
Grupo Bimbo, S.A.B. de C.V. - Series A | 504,304 | 2,052,572 | ||||
Hotels, Restaurants, and Recreation - 2.82% | ||||||
Alsea, S.A.B. de C.V. (a) | 340,890 | 1,129,556 | ||||
Grupe, S.A.B. de C.V. (a)(b)(c)(d) | 200,604 | 400,340 | ||||
1,529,896 | ||||||
Mining - 3.79% | ||||||
Grupo Mexico, S.A.B. de C.V. - Series B | 504,100 | 2,055,936 | ||||
Railroads - 3.80% | ||||||
GMexico Transportes, S.A.B. de C.V. | 526,573 | 1,085,916 | ||||
Grupo Traxion, S.A.B. de C.V. (a) | 661,594 | 977,584 | ||||
2,063,500 | ||||||
Real Estate Services - 3.32% | ||||||
Corporacion Inmobiliaria Vesta, S.A.B. de C.V. | 575,398 | 1,804,163 | ||||
Retail - 14.61% | ||||||
El Puerto de Liverpool, S.A.B. de C.V. - Series C1 | 312,922 | 1,590,905 | ||||
Grupo Comercial Chedraui, S.A. de C.V. | 431,787 | 2,506,803 | ||||
La Comer, S.A.B. de C.V. - Series UBC | 414,000 | 825,520 | ||||
Wal-Mart de Mexico, S.A.B. de C.V. | 841,189 | 3,010,812 | ||||
7,934,040 | ||||||
TOTAL COMMON STOCKS (Cost $45,624,427) | 47,420,910 | |||||
EXCHANGE TRADED FUNDS - 2.07% | ||||||
iShares NAFTRAC | 414,200 | 1,122,514 | ||||
TOTAL EXCHANGE TRADED FUNDS (Cost $1,111,881) | 1,122,514 | |||||
CAPITAL DEVELOPMENT CERTIFICATES - 1.59% | ||||||
Atlas Discovery Trust II (a)(b)(c)(d) | 300,000 | 861,265 | ||||
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $2,147) | 861,265 | |||||
MEXICAN MUTUAL FUNDS - 0.14% | ||||||
Scotiabankinverlat - Scotia Gubernamental, S.A. de C.V. S.I.I.D. (a) | 279,057 | 73,441 | ||||
TOTAL MEXICAN MUTUAL FUNDS (Cost $73,091) | 73,441 | |||||
REAL ESTATE INVESTMENT TRUSTS - 9.05% | ||||||
Macquarie Mexico Real Estate Management, S.A. de C.V. | 1,187,924 | 1,840,956 | ||||
PLA Administradora Industrial, S. de R.L. de C.V. | 1,129,754 | 1,833,524 | ||||
Prologis Property Mexico, S.A. de C.V. | 346,257 | 1,240,871 | ||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $4,970,301) | 4,915,351 | |||||
UNITED STATES - 0.14% | ||||||
INVESTMENT COMPANIES - 0.14% | ||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class, 5.252% (e) | 75,545 | 75,545 | ||||
TOTAL INVESTMENT COMPANIES (Cost $75,545) | 75,545 | |||||
TOTAL UNITED STATES (Cost $75,545) | ||||||
Total Investments (Cost $51,857,392) - 100.32% | 54,469,026 | |||||
Liabilities in Excess of Other Assets - (0.32)% | (172,413) | |||||
TOTAL NET ASSETS - 100.00% | $ | 54,296,613 |
Percentages are stated as a percent of net assets. |
(a) | Non-income producing security. | ||||
(b) | Illiquid securities. The total market value of these securities were $1,261,605, representing 2.32% of net assets. | ||||
(c) | Fair valued securities. The total market value of these securities were $1,261,605 representing 2.32% of net assets. | ||||
(d) | Level 3 securities. Value determined using significant unobservable inputs. | ||||
(e) | The rate shown represents the 7-day yield at October 31, 2023. |
FAIR VALUE MEASUREMENTS | ||||||||||
The Fund follows the FASB ASC Topic 820 hierarchy, under which various inputs are used in determining the value of the Fund’s investments. | ||||||||||
The basis of the hierarchy is dependent upon various “inputs” used to determine the value of the Fund’s investments. These inputs are summarized | ||||||||||
in the three broad levels listed below: | ||||||||||
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. | ||||||||||
Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either | ||||||||||
directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for | ||||||||||
similar instruments, interest rates, prepayment speeds, credit risks, yield curves, default rates and similar data. | ||||||||||
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing | ||||||||||
the company's own assumptions about the assumptions a market participant would use in valuing the asset or | ||||||||||
liability , and would be based on the best information available. | ||||||||||
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, | ||||||||||
the type of security, whether the security is new and not yet established in the marketplace, the liquidity of the markets, and other characteristics | ||||||||||
particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market | ||||||||||
the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest | ||||||||||
for instruments categorized in level 3. | ||||||||||
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the | ||||||||||
fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to | ||||||||||
the fair value measurement in its entirety. | ||||||||||
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. | ||||||||||
The following is a summary of the inputs used to value the Fund's investments carried at fair value as of October 31, 2023: |
Level 1 | Level 2 | Level 3* | Total | |||||||||||||
Equity | ||||||||||||||||
Airlines | $ | 1,034,536 | $ | 1,034,536 | ||||||||||||
Airports | 2,705,256 | 2,705,256 | ||||||||||||||
Auto Parts and Equipment | 2,086,798 | 2,086,798 | ||||||||||||||
Beverages | 8,533,575 | 8,533,575 | ||||||||||||||
Building Materials | 5,904,483 | 5,904,483 | ||||||||||||||
Capital Development Certificates | 861,265 | 861,265 | ||||||||||||||
Communication Services | 4,665,103 | 4,665,103 | ||||||||||||||
Construction and Infrastructure | 919,922 | 919,922 | ||||||||||||||
Consumer Products | 993,572 | 993,572 | ||||||||||||||
Financial Groups | 3,137,558 | 3,137,558 | ||||||||||||||
Food | 2,052,572 | 2,052,572 | ||||||||||||||
Hotels, Restaurants, and Recreation | 1,129,556 | 400,340 | 1,529,896 | |||||||||||||
Mining | 2,055,936 | 2,055,936 | ||||||||||||||
Railroads | 2,063,500 | 2,063,500 | ||||||||||||||
Real Estate Services | 1,804,163 | 1,804,163 | ||||||||||||||
Retail | 7,934,040 | 7,934,040 | ||||||||||||||
Total Equity | $ | 47,020,570 | $ | - | $ | 1,261,605 | $ | 48,282,175 | ||||||||
Exchange Traded Funds | $ | 1,122,514 | $ | - | $ | - | $ | 1,122,514 | ||||||||
Mexican Mutual Funds | $ | 73,441 | $ | - | $ | - | $ | 73,441 | ||||||||
Real Estate Investment Trusts | ||||||||||||||||
Industrial | $ | 4,915,351 | $ | - | $ | - | $ | 4,915,351 | ||||||||
Short-Term Investments | $ | 75,545 | $ | - | $ | - | $ | 75,545 | ||||||||
Total Investments in Securities | $ | 53,207,421 | $ | - | $ | 1,261,605 | $ | 54,469,026 |
* The Fund measures Level 3 activity as of the beginning and end of each financial reporting period. | ||||||||||
Level 3 Reconciliation Disclosure | ||||||||||
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. |
Description | Common Stock | Capital Development Certificates | ||||||
Balance as of July 31, 2023 | $ | 430,679 | $ | 2,263,261 | ||||
Acquisitions | - | - | ||||||
Dispositions | - | - | ||||||
Realized gain | - | - | ||||||
Corporate Action | - | - | ||||||
Change in unrealized appreciation/(depreciation) | (30,339 | ) | (1,401,996 | ) | ||||
Balance as of October 31, 2023 | $ | 400,340 | $ | 861,265 | ||||
Change in unrealized appreciation/(depreciation) during the period for Level 3 investments held at October 31, 2023 | $ | (30,339 | ) | $ | (1,401,996 | ) |
The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and | ||||||||
categorized within Level 3 as of October 31, 2023: |
Fair Value October 31, 2023 | Valuation Methodologies | Unobservable Input (1) | Impact to valuation from an increase to input | Range | |||||||||
Common Stock | $ | 400,340 | Lower of Market Comparables or bid/ask | Liquidity Discount | Significant changes in the liquidity discount would have resulted in direct and proportional changes in the fair value of the security. | 30% | |||||||
Capital Development Certificates | $ | 861,265 | Market Comparables / Sum of the Parts Valuation (2) | Liquidity Discount | Significant changes in the liquidity discount would have resulted in direct and proportional changes in the fair value of the security. | 15% |
1 | In determining certain of these inputs, management evaluates a variety of factors including economic conditions, foreign exchange rates, industry and market developments, market valuations of comparable companies and company specific developments. | |||||||||
2 | For the Sum of the Parts valuation, the valuation provides a range of values for a company's equity by aggregating each of its business units (private and public) and arriving at a single total enterprise value. |