Mexico Fund's FY25 Semi-Annual Report: 13.22% NAV return, 14.21% market price return.

• Mexico Fund reports 13.22% NAV return in H1 FY25. • Outperformed MSCI Mexico Index by 2.01%. • Fund's market price returned 14.21% in H1 FY25. • NAV outperformed benchmark in 5- and 10-year periods. • Portfolio management team has outperformed since Dec 2008.

The Mexico Fund (NYSE: MXF) has released its fiscal 2025 Semi-Annual Report for the period ended April 30, 2025. The Fund's Net Asset Value (NAV) achieved a total return of 13.22%, while its market price registered a 14.21% return, slightly underperforming its benchmark MSCI Mexico Index's 15.23% return [1].

The Fund's Board of Directors increased the quarterly distribution by 13.6% from $0.22 to $0.25 per share, representing a 6.4% annualized distribution rate. As of April 30, 2025, the Fund's market price was $15.53 with a NAV of $19.46, reflecting a discount of 20.20%. The Fund maintained its expense ratio cap at 1.40% for fiscal year 2025 [1].

Despite short-term underperformance, the long-term track record remains solid. The Fund's NAV has outperformed its benchmark over the crucial 5-year, 10-year, and since-December 2008 periods. This demonstrates consistent value-add from the portfolio management team that assumed control in 2008 [1].

A key positive development is the 13.6% increase in quarterly distribution from $0.22 to $0.25 per share. This represents an annualized yield of 6.4% based on the April 30 market price, making it attractive in the current yield environment [1].

The fund continues to trade at a significant discount to NAV at 20.20%, marginally improved from 20.44% at fiscal year-end 2024. This persistent discount indicates potential opportunity for value investors but also suggests ongoing market concerns about Mexican market exposure [1].

Expense control remains disciplined with the ordinary expense ratio capped at 1.40%, which the Fund successfully maintained during the reporting period. This cost discipline helps preserve returns for shareholders, particularly important for a single-country fund with inherently higher risk profile [1].

References:
[1] https://www.stocktitan.net/news/MXF/the-mexico-fund-inc-issues-its-2025-semi-annual-n9ggsme2hlve.html