#United States #Columbia #shareholder distribution #Mexico Fund #Expense Limitation

Recent Developments at The Mexico Fund, Inc.

On September 8, 2026, The Mexico Fund, Inc. (traded as NYSE: MXF) took significant steps to bolster its operational framework by renewing and reinforcing its Expense Limitation Agreement (ELA). This agreement, which was initially introduced on March 12, 2019, aims to enhance the fund's performance and maintain a competitive edge in providing exposure to Mexican equities for investors.

Key Details of the Expense Limitation Agreement

The renewed agreement reflects a commitment from both the Board of Directors and the investment advisor, Impulsora del Fondo México, S.C. Specifically, the agreement reduces the ordinary expense ratio from 1.40% to 1.35% for the fiscal year 2027, effective from November 1, 2026, until October 31, 2027. This adjustment is contingent upon the fund’s net assets exceeding $320 million.

In terms of fee structure, the advisor has pledged to waive fees and reimburse expenses as necessary to ensure the fund’s ordinary annual expense ratio does not exceed the stipulated 1.35%. Should the fund’s net assets dip below this threshold, the advisor has guaranteed to waive enough fees to keep the variable ordinary expenses at a 1.18% level, in addition to a specific fixed reimbursement amount of $544,000. The objective of these measures is to uphold a sustainable expense ratio while maximizing potential returns for investors.

Distribution Announcement

In addition to the updates on the ELA, the Board also declared a quarterly distribution of $0.35 per share for shareholders on record as of October 21, 2026, which will be payable in cash on October 29, 2026. This distribution underpins the fund's ongoing Managed Distribution Plan (MDP), a strategy that has been in place since 2008, aiming to deliver a predictable income stream to investors. Over the years, the MDP has successfully distributed a cumulative total of $29.03 per share.

Distributable income for any given fiscal period hinges on the total gains and losses the fund realizes throughout the year. The character of these distributions, which may include net investment income, capital gains, and returns of capital, can only be ascertained at the end of the fiscal year.

Performance Metrics

The fund’s recent performance metrics are also noteworthy. As of August 31, 2026, the average annual total return over a five-year period stood at an impressive 12.65%. The current annualized distribution rate for the fiscal year is 5.11%, indicating the fund's robust commitment to providing returns to its investors. Furthermore, the cumulative distribution rate for this fiscal year is 4.26%, showcasing the consistency of payouts.

Conclusion

Overall, these strategic moves by The Mexico Fund, Inc. signal a strong position for both management and investors leading into the next fiscal year. With a renewed focus on limiting expenses and ensuring shareholder trust through regular distributions, the fund demonstrates its dedication to fostering long-term growth and performance. Stakeholders are encouraged to keep a close watch on future developments as the fund aims to navigate the evolving marketplace and enhance its investment appeal.

For more specific purposes related to tax reporting and distribution sources, a Form 1099-DIV will be provided to shareholders following the end of the calendar year, outlining the pertinent details for federal income tax purposes. Investors can look forward to further performance updates and announcements from The Mexico Fund, Inc., as it continues to strive for excellence in investment management.