Mexico Fund Increases Quarterly Distribution to $0.35 per Share
The Mexico Fund announced that the Board of Directors increased the Fund's quarterly distribution from $0.25 per share to $0.35 per share, representing a significant increase of 40.0% and a 7.2% annualized distribution rate relative to its market price as of November 30, 2025. Accordingly, the Board has approved the continuation of the Fund's MDP and declared a distribution of $0.35 per share to stockholders of record on January 21, 2026, which is payable in cash on January 29, 2026.
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- Policy Review: The Mexican government is reviewing its oil shipments to Cuba amid concerns that continuing these supplies could provoke U.S. President Trump, despite previous assurances from President Sheinbaum to maintain them.
- Supply Dependency: Cuba heavily relies on Mexico for oil, especially after Venezuelan shipments ceased due to U.S. tanker blockades; halting these imports could lead to a humanitarian crisis in Cuba.
- Trump's Pressure: During a recent call, Trump questioned President Sheinbaum about oil and fuel shipments to Cuba, prompting an internal policy reassessment in Mexico, although he did not explicitly demand a halt to the shipments.
- Humanitarian Impact: Stopping oil imports could exacerbate Cuba's energy shortages and frequent blackouts, potentially triggering a mass migration crisis towards Mexico, thereby straining bilateral relations.
- Significant NAV Growth: In fiscal year 2025, the Mexico Fund's net asset value (NAV) per share increased by 31.17%, while its market price surged by 46.48%, outperforming the MSCI Mexico Index's 38.34%, demonstrating the fund's strong market performance and the effectiveness of its investment management team.
- Increased Distributions: The Board has decided to raise the quarterly distribution from $0.25 to $0.35 per share, representing a 40% increase, which translates to an attractive annualized distribution rate of 7.2% relative to the market price as of November 30, 2025, enhancing investor returns.
- Expense Limitation Agreement Renewed: The Fund's Expense Limitation Agreement has been renewed for fiscal year 2026 with a cap on the ordinary expense ratio set at 1.40%, while the actual expense ratio for fiscal year 2025 was 1.38%, ensuring effective cost control for the Fund.
- Long-Term Investment Objective: The Mexico Fund aims for long-term capital appreciation through investments in Mexican securities, providing a non-diversified portfolio for investors looking to engage with the Mexican market, reflecting its strategic positioning in the Latin American investment landscape.
- Significant NAV Growth: The Mexico Fund reported a 31.17% increase in NAV per share for fiscal year 2025, reflecting sustained strong performance since the current management team took over in December 2008, which enhances investor confidence.
- Outstanding Market Price Performance: As of October 31, 2025, the fund's market price was $19.39, outperforming the benchmark MSCI Mexico Index's growth of 38.34%, demonstrating the fund's competitive edge in long-term investments.
- Substantial Dividend Increase: The Board decided to raise the quarterly distribution from $0.25 to $0.35 per share, representing a 40% increase, which not only boosts investor returns but also results in an attractive annualized distribution rate of 7.2%, drawing more investor interest.
- Expense Limitation Agreement Renewal: The fund renewed its expense limitation agreement for fiscal year 2026 with a cap on the ordinary expense ratio at 1.40%, while the actual ratio for 2025 was 1.38%, indicating effective cost control that aids in enhancing overall investment returns.
- Distribution Increase: The Mexico Fund's Board raised the quarterly distribution from $0.25 to $0.35 per share, marking a significant 40% increase that is likely to boost investor confidence and attract more capital inflows.
- Annualized Distribution Rate: The new distribution level corresponds to a 7.2% annualized distribution rate relative to the market price as of November 30, 2025, enhancing the fund's appeal and stability, which may encourage long-term investor participation.
- Ongoing Distribution Plan: The Board's approval to continue the Managed Distribution Plan (MDP) indicates confidence in future earnings while providing shareholders with stable cash flow, thereby strengthening investor trust.
- Historical Distribution Total: Since the MDP's implementation in September 2008, the fund has paid a total of $27.98 per share in cash distributions, demonstrating its ongoing distribution capability and commitment to shareholders.
Protests Against Crime and Corruption: Thousands protested in Mexico, led by Gen Z, demanding government action against violent crime and corruption following the murder of Uruapan Mayor Carlos Manzo.
Violence and Injuries: The protests turned violent in Mexico City, resulting in around 120 injuries, including 100 police officers, and 20 arrests after a group of hooded individuals instigated violence.
Youth Organization and Political Dynamics: The demonstrations were organized by youth groups like Generación Z México, emphasizing a non-partisan approach, although opposition parties later joined the protests.
Government Response: President Claudia Sheinbaum accused right-wing parties of attempting to infiltrate the Gen Z movement, leading to some influencers withdrawing their support for the protests.
Distribution Announcement: The Mexico Fund, Inc. announced a cash distribution of $0.25 per share to stockholders, effective October 30, 2025, for those on record as of October 22, 2025.
Source of Distributions: The distribution consists of net investment income, capital gains, and return of capital, with specific estimates provided for each source.
Fund Performance Metrics: The Fund reported an average annual total return of 19.11% over the past five years and a current annualized distribution rate of 3.32% for the fiscal year.
Investment Objective: The Mexico Fund aims for long-term capital appreciation through investments in securities listed on the Mexican Stock Exchange, catering to investors interested in Mexican companies.









