NPORT-EX 2 mxe.htm NPORT-EX
The Mexico Equity and Income Fund, Inc.
            
Schedule of Investments
            
April 30, 2020 (Unaudited)
            
             
MEXICO - 93.83%
  
Shares
    
Value
  
             
COMMON STOCKS - 67.02%
            
Beverages - 6.46%
            
Arca Continental, S.A.B. de C.V.
    
101,756
    
$
391,935
  
Fomento Economico Mexicano, S.A.B. de C.V. - Series UBD
    
82,739
      
534,760
  
             
926,695
  
Building Materials - 3.39%
                
Grupo Cementos de Chihuahua, S.A.B. de C.V.
    
167,707
      
486,817
  
Chemical Products - 6.63%
                
Alpek, S.A.B. de C.V. - Series A
    
628,368
      
298,789
  
Orbia Advance Corp., S.A.B. de C.V.
    
552,669
      
652,168
  
             
950,957
  
Construction and Infrastructure - 4.86%
                
Promotora y Operadora de Infraestructura, S.A.B. de C.V. - Series L
    
141,287
      
697,612
  
Energy - 8.41%
                
Infraestructura Energetica Nova, S.A.B. de C.V.
    
389,319
      
1,207,323
  
Financial Groups - 3.25%
                
Gentera, S.A.B. de C.V.
    
773,700
      
307,541
  
Grupo Financiero Banorte, S.A.B. de C.V. - Series O
    
58,256
      
159,315
  
             
466,856
  
Food - 2.15%
                
Gruma, S.A.B. de C.V. - Series B
    
32,478
      
308,313
  
Hotels, Restaurants, and Recreation - 2.87%
                
Grupe, S.A.B. de C.V. (a)(b)(c)(d)
    
329,084
      
412,362
  
Mining - 1.13%
                
Grupo Mexico, S.A.B. de C.V. - Series B
    
76,044
      
162,178
  
Railroads - 4.58%
                
GMexico Transportes, S.A.B. de C.V.
    
712,247
      
656,954
  
Real Estate Services - 1.93%
                
Corporacion Inmobiliaria Vesta, S.A.B. de C.V.
    
202,634
      
277,706
  
Retail - 6.59%
                
Organizacion Soriana, S.A.B. de C.V. - Class B
    
180,395
      
133,831
  
Wal-Mart de Mexico, S.A.B. de C.V.
    
337,836
      
812,595
  
             
946,426
  
Telecommunication - 14.77%
                
America Movil, S.A.B. de C.V. - Series L
    
3,499,587
      
2,119,994
  
TOTAL COMMON STOCKS (Cost $11,523,028)
            
9,620,193
  
                 
CAPITAL DEVELOPMENT CERTIFICATES - 8.48%
                
Atlas Discovery Trust II (b)(c)(d)
    
300,000
      
1,217,110
  
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $1,460,703)
            
1,217,110
  
                 
MEXICAN CORPORATE BONDS - 8.64%
                
Beverages - 8.64%
                
Coca-Cola Femsa, S.A.B. de C.V.
                
7.350%, 01/28/2028
    
30,010,000
      
1,241,096
  
TOTAL MEXICAN CORPORATE BONDS (Cost $1,575,214)
            
1,241,096
  
                 
MEXICAN GOVERNMENT NOTES/BONDS - 2.89%
                
Bonos de Desarrollo del Gobierno Federal
                
6.250%, 03/25/2021
    
10,000,000
      
414,624
  
TOTAL MEXICAN GOVERNMENT NOTES/BONDS (Cost $416,338)
            
414,624
  
                 
MEXICAN MUTUAL FUNDS - 0.35%
                
Scotiabankinverlat - Scotia Gubernamental S.A. de C.V. SIID (a)
    
316,084
      
50,494
  
TOTAL MEXICAN MUTUAL FUNDS (Cost $48,722)
            
50,494
  
                 
REAL ESTATE INVESTMENT TRUSTS - 6.45%
                
Financial Groups - 3.52%
                
CFE Capital, S. de R.L. de C.V.
    
636,927
      
505,556
  
Real Estate Services - 2.93%
                
Concentradora Fibra Danhos, S.A. de C.V.
    
544,350
      
420,555
  
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $1,344,352)
            
926,111
  
TOTAL MEXICO (Cost $16,368,357)
            
13,469,628
  
                 
UNITED STATES - 0.81%
                
                 
INVESTMENT COMPANIES - 0.81%
                
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class - 0.159% (e)
    
115,893
      
115,893
  
TOTAL INVESTMENT COMPANIES (Cost $115,893)
            
115,893
  
TOTAL UNITED STATES (Cost $115,893)
                
                 
Total Investments (Cost $16,484,250) - 94.64%
            
13,585,521
  
Other Assets in Excess of Liabilities - 5.36%
            
769,102
  
TOTAL NET ASSETS - 100.00%
          
$
14,354,623
  

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 $1,629,472, representing 11.35% of net assets.
(c)
  
Fair valued securities. The total market value of these securities were $1,629,472, representing 11.35% of net assets.
(d)
  
Level 3 securities. Value determined using significant unobservable inputs.
(e)
  
The rate shown represents the 7-day yield at April 30, 2020.

             
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 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 April 30, 2020:

   
Level 1
    
Level 2
    
Level 3*
    
Total
  
Equity
                        
Beverages
  
$
926,695
    
$
-
    
$
-
    
$
926,695
  
Building Materials
    
486,817
      
-
      
-
      
486,817
  
Capital Development Certificates
    
-
      
-
      
1,217,110
      
1,217,110
  
Chemical Products
    
950,957
      
-
      
-
      
950,957
  
Construction and Infrastructure
    
697,612
      
-
      
-
      
697,612
  
Energy
    
1,207,323
      
-
      
-
      
1,207,323
  
Financial Groups
    
466,856
      
-
      
-
      
466,856
  
Food
    
308,313
      
-
      
-
      
308,313
  
Hotels, Restaurants, and Recreation
    
-
      
-
      
412,362
      
412,362
  
Mining
    
162,178
      
-
      
-
      
162,178
  
Railroads
    
656,954
      
-
      
-
      
656,954
  
Real Estate Services
    
277,706
      
-
      
-
      
277,706
  
Retail
    
946,426
      
-
      
-
      
946,426
  
Telecommunication
    
2,119,994
      
-
      
-
      
2,119,994
  
Total Equity
  
$
9,207,831
    
$
-
    
$
1,629,472
    
$
10,837,303
  
                                 
Mexican Corporate Bonds
  
$
-
    
$
1,241,096
    
$
-
    
$
1,241,096
  
                                 
Mexican Government Notes/Bonds
  
$
-
    
$
414,624
    
$
-
    
$
414,624
  
                                 
Mexican Mutual Funds
  
$
50,494
    
$
-
    
$
-
    
$
50,494
  
                                 
Real Estate Investment Trusts
  
$
926,111
    
$
-
    
$
-
    
$
926,111
  
                                 
Short-Term Investments
  
$
115,893
    
$
-
    
$
-
    
$
115,893
  
Total Investments in Securities
  
$
10,300,329
    
$
1,655,720
    
$
1,629,472
    
$
13,585,521
  

* 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, 2019
  
$
997,355
    
$
1,641,479
  
Acquisitions
    
-
      
-
  
Dispositions
    
(228,060
)
    
-
  
Realized gain
    
81,529
      
-
  
Change in unrealized depreciation
    
(438,462
)
    
(424,369
)
Balance as of April 30, 2020
  
$
412,362
    
$
1,217,110
  
                 
Change in unrealized depreciation during the period for Level 3 investments held at April 30, 2020
  
$
(438,462
)
  
$
(424,369
)

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 April 30, 2020:

   
Fair Value April 30, 2020
    
Valuation Methodologies
    
Unobservable Input (1)
    
Range
  
Common Stock
  
$
412,362
    
Market Comparables
    
Liquidity Discount
    

$1.206-$2.388
  
Capital Development Certificates
  
$
1,217,110
    
Market Comparables/
Sum of the Parts Valuation
    
Liquidity Discount
    

$3.720-$5.944
  

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.