The Mexico Fund Inc (NYSE: MXF) announced on Monday that it will strengthen its discount control mechanism and introduce a conditional tender offer program. These measures aim to further narrow the discount between the fund's share price and its net asset value (NAV), thereby enhancing long-term returns for shareholders.
According to the announcement, the conditional tender offer will be activated during a three-year measurement period from July 1, 2026, to June 30, 2029, if either of the following conditions is met: the fund's total return investment performance based on NAV falls below the total return of its benchmark index, the MSCI Mexico Index; or the fund's average share price over the final twelve months of the measurement period trades below 90% of its NAV.
Upon triggering the tender offer, the fund will repurchase 20% of its then-outstanding shares at a price equal to 98% of NAV, minus applicable fees. If more than 20% of shares are tendered, the fund will purchase shares from tendering shareholders on a pro-rata basis.
This conditional tender offer is designed to complement the fund's existing managed distribution plan. In December 2025, the board significantly strengthened this plan by increasing the quarterly distribution by 40%, from $0.25 to $0.35 per share. Since the managed distribution plan's inception in September 2008, the fund has distributed a cumulative total of $28.68 per share in cash to shareholders as of June 29, 2026.
Mexico Fund Inc is a non-diversified, closed-end management investment company. Its investment objective is to achieve long-term capital appreciation through investments in securities, primarily equities, listed on the Mexican Stock Exchange. The fund provides a channel for investors seeking exposure to Mexican companies through a managed, non-diversified portfolio.
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