SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Exact name of registrant as specified in charter)
(Address of principal executive offices) (Zip code)
(Name and address of agent for service)
1
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Letter to Stockholders
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13
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Relevant Economic Information
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15
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Allocation of Portfolio Assets
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16
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Schedule of Investments
|
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19
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Statement of Assets & Liabilities
|
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20
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Statement of Operations
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21
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Statements of Changes in Net Assets
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22
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Financial Highlights
|
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23
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Notes to Financial Statements
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49
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Report of Independent Registered Public Accounting Firm
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50
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Additional Information
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55
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Dividends and Distributions
|
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57
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Results of Annual Stockholders Meeting
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58
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Privacy Policy
|
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60
|
Management of the Fund
|
1.
|
Industrial sector main mover was a leading transportation and logistics company, with operations in three business segments: mobility of cargo, logistics & technology, and mobility of
personnel. Such company has been directly impacted by nearshoring investment.
|
2.
|
Real Estate refers to Service Management Companies -industrial parks for manufacturing with the potential to increase GLA on increased demand due to supply chain renaissance.
|
3.
|
The CKD Atlas discovery has yielded a US dollar 8.9% IRR since inception, in December 2009 and it exited H+ accounting on October 5, 2023, and TRAXION on September 1, 2023, which accounted for
approximately 80% of the underlying securities in the trust as of June 30, 2022.
|
Eugenia Pichardo
|
David Estevez
|
Senior Portfolio Manager
|
Analyst, and Portfolio Manager
|
*
|
The Direct Impact component encompasses the portion that corresponds to Traxion within the Atlas Discovery Americas II Trust, ‘ADMEXCK-09’.
|
•
|
The stock’s net asset value (NAV) is the value of a fund’s assets minus its liabilities. The term “net asset value” is commonly used concerning closed-end funds and is used to determine the
value of the assets held.
|
|
•
|
The market price of the ordinary share of a closed-end fund is determined in the open market by buyers and sellers and is the price at which investors may purchase or sell the common shares of a
closed-end fund, which fluctuates throughout the day. The common share market price may differ from the Fund’s Net Asset Value; shares of a closed-end fund may trade at a premium to (higher than) or a discount to (lower than) NAV. The
difference between the market price and NAV is a discount.
|
|
•
|
A basis point (bps) is one-hundredth of a percentage point (0.01%).
|
|
•
|
Premium/Discount: The share price of an investment trust can differ from the net asset value (NAV). If the current share price is above the NAV, the investment trust is said to be trading at a
premium, i.e. it costs more to buy the shares than the underlying investments are worth. When the share price is below the NAV, this is known as trading at a discount.
|
|
•
|
MEXBOL, or the IPC (Indice de Precios y Cotizaciones), is a capitalization-weighted index of the Mexican stock exchange’s leading stocks.
|
|
•
|
MSCI-Mexico Net Total Return Index: The Morgan Stanley Capital International Index Mexico is a free float capitalization-weighted index that tracks the Mexican Stock Market. One cannot invest
directly in an index.
|
|
•
|
MSCI World: The MSCI World Index is a free-float weighted equity index.
|
•
|
MSCI EM Latin-America: The MSCI EM Latin America Index is a free-float weighted equity index.
|
|
•
|
MSCI EM Global: The MSCI EM (Emerging Markets) Index is a free-float weighted equity index that captures large and mid-cap representation across Emerging Markets (E.M.) countries. The index
covers approximately 85% of each country’s free float-adjusted market capitalization.
|
|
•
|
Brazil: IBOVESPA Stock Exchange Index is a gross total return index weighted by free-float market cap & is comprised of the most liquid stocks traded on the Sao Paulo Stock Exchange. It has
been divided ten times by a factor of 10 since January 1, 1985.
|
|
•
|
China: Shanghai Shenzhen CSI 300 Index is a free-float weighted index consisting of 300 A-share stocks listed on the Shanghai or Shenzhen Stock Exchanges. The index has a base level of 1000 on
12/31/2004.
|
|
•
|
BANXICO: Banco de Mexico is the Central Bank of Mexico. By constitutional mandate, it is autonomous in both its operations and management. Its primary function is to provide domestic currency to
the Mexican economy, and its main priority is to ensure the stability of the domestic currency’s purchasing power.
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|
•
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Reference Rate: is an interest rate benchmark used to set other interest rates. Various types of transactions use different reference rate benchmarks, but the most common include the Fed Funds
Rate, LIBOR, the prime rate, and the rate on benchmark U.S., among others.
|
|
•
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INEGI: The National Institute of Statistics and Geography.
|
|
•
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OECD: Organization for Economic Co-operation and Development.
|
|
•
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Gross Domestic Product (GDP): is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the
income earned from that production, or the total amount spent on final goods and services (less imports).
|
|
•
|
Nearshoring: is a strategy in which a company moves all or part of its production closer to the final consumer, reducing costs and avoiding logistical setbacks. In the last couple of years, many
businesses around the world have started to look at this as an alternative, primarily to avoid supply chain issues.
|
|
•
|
Foreign Direct Investment: is an ownership stake in a foreign company or project made by an investor, company, or government from another country.
|
|
•
|
Gross Fixed Investment: measures the total value of all acquisitions of fixed assets, both tangible and intangible, obtained as a result of a production process. The value represents a
year-over-year change in the gross fixed investment, obtained by aggregating the constant values of machinery and equipment of both national and foreign origin and of construction.
|
|
•
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Forward Price to Earnings Ratio (P/E): The regular P/E ratio is a current stock price over its earnings per share. The forward P/E ratio is the current stock price over its “predicted” earnings
per share. If the forward P/E ratio is higher than the current P/E ratio, it indicates decreased expected earnings.
|
|
•
|
Earnings per Share (EPS): The portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company’s profitability.
|
|
•
|
Consumer Price Index (INPC): Is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. Its calculated
by taking price changes for each item in the predetermined basket of goods and averaging them.
|
Real Activity (billion US$)
|
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||
Real GDP Growth (y-o-y)
|
3.10
|
%
|
4.80
|
%
|
-8.30
|
%
|
-0.05
|
%
|
2.19
|
%
|
|||||
Industrial Production (y-o-y)
|
3.30
|
%
|
6.71
|
%
|
-3.15
|
%
|
-0.83
|
%
|
-2.84
|
%
|
|||||
Trade Balance (US billions)
|
-$26.42
|
-$11.49
|
$34.48
|
$5.41
|
-$13.59
|
||||||||||
Exports (US billions)
|
$578.19
|
$494.23
|
$417.67
|
$460.70
|
$450.71
|
||||||||||
Export growth (y-o-y)
|
16.90
|
%
|
18.52
|
%
|
-9.34
|
%
|
2.22
|
%
|
10.08
|
%
|
|||||
Imports (US billions)
|
$604.61
|
$505.72
|
$383.19
|
$455.30
|
$464.30
|
||||||||||
Import growth (y-o-y)
|
19.60
|
%
|
32.05
|
%
|
-15.84
|
%
|
-1.94
|
%
|
10.44
|
%
|
|||||
Financial Variables and Prices
|
|||||||||||||||
28-Day CETES (T-bills)/Average
|
7.66
|
%
|
4.45
|
%
|
5.30
|
%
|
7.85
|
%
|
7.63
|
%
|
|||||
Exchange rate (Pesos/US$)Average
|
20.11
|
20.29
|
21.47
|
19.25
|
19.24
|
||||||||||
Inflation IPC, 12 month trailing
|
7.82
|
%
|
7.36
|
%
|
3.15
|
%
|
2.83
|
%
|
4.83
|
%
|
|||||
Mexbol Index
|
|||||||||||||||
USD Return
|
-1.09
|
%
|
20.94
|
%
|
-2.35
|
%
|
12.05
|
%
|
-13.71
|
%
|
|||||
Market Cap- (US billions)
|
$326.47
|
$326.47
|
$282.91
|
$285.98
|
$259.58
|
||||||||||
EV/EBITDA
|
7.29
|
x
|
7.29
|
x
|
8.42
|
x
|
7.37
|
x
|
7.77
|
x
|
|||||
Fund’s NAV & Common Share
|
|||||||||||||||
Market Price Performance
|
|||||||||||||||
NAV per share
|
4.85
|
%
|
-4.05
|
%
|
-3.25
|
%
|
8.48
|
%
|
-5.65
|
%
|
|||||
Share Price
|
-1.57
|
%
|
-8.42
|
%
|
-16.03
|
%
|
16.37
|
%
|
-1.84
|
%
|
Net asset value returns
|
1 year
|
5 years
|
10 years
|
The Mexico Equity and Income Fund, Inc.
|
42.99%
|
2.47%
|
1.23%
|
Market price returns
|
|||
The Mexico Equity and Income Fund, Inc.
|
35.79%
|
-1.06%
|
-0.75%
|
Index returns
|
|||
MSCI Mexico Index
|
41.44%
|
6.87%
|
2.32%
|
Share price as of 7/31/2023
|
|||
Net asset value
|
|
||
Market price
|
|
Allocation of Portfolio Assets
|
July 31, 2023
(Unaudited)
|
(Calculated as a percentage of Total Investments)
|
July 31, 2023
|
|
Schedule of Investments
|
MEXICO – 98.86%
|
Shares
|
Value
|
||||||
COMMON STOCKS – 86.80%
|
||||||||
Airlines – 1.83%
|
||||||||
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. – Series A (a)
|
998,802
|
$
|
1,201,306
|
|||||
Airports – 6.38%
|
||||||||
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. – Series B
|
121,100
|
1,365,403
|
||||||
Grupo Aeroportuario del Pacifico, S.A.B. de C.V. – Series B
|
69,807
|
1,330,064
|
||||||
Grupo Aeroportuario del Sureste S.A.B. de C.V.
|
52,568
|
1,486,910
|
||||||
4,182,377
|
||||||||
Auto Parts and Equipment – 4.29%
|
||||||||
Nemak, S.A.B. de C.V. (a)
|
11,716,151
|
2,812,716
|
||||||
Beverages – 13.31%
|
||||||||
Arca Continental, S.A.B. de C.V.
|
392,436
|
3,931,625
|
||||||
Fomento Economico Mexicano, S.A.B. de C.V. – Series UBD
|
422,858
|
4,792,475
|
||||||
8,724,100
|
||||||||
Building Materials – 5.59%
|
||||||||
Cemex, S.A.B. de C.V. – Series CPO (a)
|
2,752,896
|
2,091,182
|
||||||
Grupo Cementos de Chihuahua, S.A.B. de C.V.
|
162,242
|
1,576,203
|
||||||
3,667,385
|
||||||||
Chemical Products – 3.42%
|
||||||||
Alpek, S.A.B. de C.V. – Series A
|
961,712
|
995,884
|
||||||
Orbia Advance Corp., S.A.B. de C.V.
|
548,665
|
1,244,777
|
||||||
2,240,661
|
||||||||
Communication Services – 2.85%
|
||||||||
America Movil SAB de CV (a)
|
1,780,494
|
1,866,090
|
||||||
Construction and Infrastructure – 2.46%
|
||||||||
Promotora y Operadora de Infraestructura, S.A.B. de C.V.
|
112,027
|
1,160,478
|
||||||
Promotora y Operadora de Infraestructura, S.A.B. de C.V. – Series L
|
69,065
|
454,831
|
||||||
1,615,309
|
||||||||
Consumer Finance – 2.69%
|
||||||||
Gentera, S.A.B. de C.V.
|
1,361,825
|
1,766,428
|
July 31, 2023
|
|
Schedule of Investments (continued)
|
COMMON STOCKS (continued)
|
Shares
|
Value
|
||||||
Consumer Products – 1.94%
|
||||||||
Kimberly-Clark de Mexico, S.A.B. de C.V. – Series A
|
542,000
|
$
|
1,272,705
|
|||||
Financial Groups – 9.93%
|
||||||||
Grupo Financiero Banorte, S.A.B. de C.V. – Series O
|
570,341
|
5,405,722
|
||||||
Regional, S.A.B. de C.V.
|
142,106
|
1,107,061
|
||||||
6,512,783
|
||||||||
Food – 1.81%
|
||||||||
Grupo Bimbo, S.A.B. de C.V. – Series A
|
228,204
|
1,183,063
|
||||||
Hotels, Restaurants, and Recreation – 1.15%
|
||||||||
Alsea, S.A.B. de C.V. (a)
|
93,000
|
322,737
|
||||||
Grupe, S.A.B. de C.V. (a)(b)(c)
|
200,604
|
430,679
|
||||||
753,416
|
||||||||
Mining – 6.21%
|
||||||||
Grupo Mexico, S.A.B. de C.V. – Series B
|
783,000
|
4,070,010
|
||||||
Railroads – 7.02%
|
||||||||
GMexico Transportes, S.A.B. de C.V.
|
655,673
|
1,562,338
|
||||||
Grupo Traxion S.A.B. de C.V. (a)
|
1,418,241
|
3,039,753
|
||||||
4,602,091
|
||||||||
Real Estate Services – 2.93%
|
||||||||
Corporacion Inmobiliaria Vesta, S.A.B. de C.V.
|
528,498
|
1,917,364
|
||||||
Retail – 12.99%
|
||||||||
El Puerto de Liverpool, S.A.B. de C.V. – Series C – 1
|
144,612
|
906,448
|
||||||
Grupo Comercial Chedraui, S.A. de C.V.
|
591,087
|
3,461,450
|
||||||
La Comer S.A.B. de C.V. – Series UBC
|
414,000
|
1,029,252
|
||||||
Wal-Mart de Mexico, S.A.B. de C.V.
|
748,765
|
3,117,134
|
||||||
8,514,284
|
||||||||
TOTAL COMMON STOCKS (Cost $42,925,850)
|
56,902,088
|
July 31, 2023
|
|
Schedule of Investments (concluded)
|
CAPITAL DEVELOPMENT CERTIFICATES – 3.45%
|
Shares
|
Value
|
||||||
Atlas Discovery Trust II (a)(b)(c)(d)
|
300,000
|
$
|
2,263,261
|
|||||
TOTAL CAPITAL DEVELOPMENT CERTIFICATES (Cost $2,147)
|
2,263,261
|
|||||||
MEXICAN MUTUAL FUNDS – 0.04%
|
||||||||
Scotiabankinverlat – Scotia Gubernamental S.A. de C.V. SIID (a)
|
83,740
|
23,127
|
||||||
TOTAL MEXICAN MUTUAL FUNDS (Cost $22,882)
|
23,127
|
|||||||
REAL ESTATE INVESTMENT TRUSTS – 8.57%
|
||||||||
Macquarie Mexico Real Estate Management S.A. de C.V.
|
1,187,924
|
2,304,906
|
||||||
PLA Administradora Industrial S de R.L. de C.V.
|
1,000,000
|
2,033,443
|
||||||
Prologis Property Mexico, S.A. de C.V.
|
346,257
|
1,282,671
|
||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $4,722,133)
|
5,621,020
|
|||||||
UNITED STATES – 0.28%
|
||||||||
INVESTMENT COMPANIES – 0.28%
|
||||||||
Morgan Stanley Institutional Liquidity Funds –
|
||||||||
Government Portfolio – Institutional Class – 5.245% (e)
|
185,236
|
185,236
|
||||||
TOTAL INVESTMENT COMPANIES (Cost $185,236)
|
185,236
|
|||||||
TOTAL UNITED STATES (Cost $185,236)
|
185,236
|
|||||||
Total Investments (Cost $47,858,248) – 99.14%
|
64,994,732
|
|||||||
Other Assets in Excess of Liabilities – 0.86%
|
561,177
|
|||||||
TOTAL NET ASSETS – 100.00%
|
$
|
65,555,909
|
(a)
|
Non-income producing security.
|
(b)
|
Illiquid securities. The total market value of these securities were $2,693,940, representing 4.11% of net assets.
|
(c)
|
Fair valued securities. The total market value of these securities were $2,693,940 representing 4.11% of net assets.
|
(d)
|
Level 3 securities. Value determined using significant unobservable inputs.
|
(e)
|
The rate shown represents the 7-day yield at July 31, 2023.
|
July 31, 2023
|
|
Statement of Assets & Liabilities
|
ASSETS:
|
||||
Investments, at value (cost $47,858,248)
|
$
|
64,994,732
|
||
Receivable for investment sold
|
2,736,784
|
|||
Interest receivable
|
863
|
|||
Other Assets
|
3,912
|
|||
Total Assets
|
67,736,291
|
|||
LIABILITIES:
|
||||
Payables:
|
||||
Payable for securities purchased
|
1,994,990
|
|||
Advisory
|
55,837
|
|||
Audit
|
34,318
|
|||
Director
|
16,353
|
|||
Legal
|
16,173
|
|||
Printing and mailing
|
15,183
|
|||
Administration
|
14,934
|
|||
NYSE
|
10,741
|
|||
Custody
|
7,957
|
|||
Fund accounting
|
7,328
|
|||
CCO
|
5,867
|
|||
Transfer Agent
|
520
|
|||
Accrued expenses and other liabilities
|
181
|
|||
Total Liabilities
|
2,180,382
|
|||
Net Assets
|
65,555,909
|
|||
Net Asset Value Per Common Share ($65,555,909 /
) |
$
|
|
||
NET ASSETS CONSIST OF:
|
||||
Common stock, $0.001 par value;
shares outstanding ( shares authorized) |
4,400
|
|||
Paid-in capital
|
53,757,904
|
|||
Total distributable earnings
|
11,793,605
|
|||
Net Assets
|
$
|
65,555,909
|
Statement of Operations
|
For the Year Ended
July 31, 2023
|
INVESTMENT INCOME
|
||||
Dividends(1)
|
$
|
3,060,880
|
||
Interest
|
17,699
|
|||
Total Investment Income
|
3,078,579
|
|||
EXPENSES AND FEES
|
||||
Advisory (Note B)
|
582,410
|
|||
Directors’ (Note B)
|
183,190
|
|||
Administration (Note B)
|
81,705
|
|||
CCO (Note B)
|
65,719
|
|||
Legal
|
51,439
|
|||
Fund accounting (Note B)
|
43,824
|
|||
Custodian (Note B)
|
40,950
|
|||
Audit
|
34,319
|
|||
Printing and mailing
|
26,922
|
|||
NYSE
|
25,631
|
|||
Insurance
|
25,163
|
|||
Transfer Agent (Note B)
|
17,536
|
|||
Miscellaneous
|
130
|
|||
Total Expenses
|
1,178,938
|
|||
NET INVESTMENT INCOME
|
1,899,641
|
|||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
|
||||
Net realized gain from investments and foreign currency transactions
|
2,460,197
|
|||
Net change in unrealized appreciation on investments and foreign currency transactions
|
15,326,147
|
|||
Net gain from investments and foreign currency transactions
|
17,786,344
|
|||
Net increase in net assets resulting from operations
|
$
|
19,685,985
|
(1)
|
Net of $220,219 in dividend withholding tax.
|
For the
|
For the
|
|||||||
Year Ended
|
Year Ended
|
|||||||
July 31, 2023
|
July 31, 2022
|
|||||||
INCREASE (DECREASE) IN NET ASSETS
|
||||||||
Operations:
|
||||||||
Net investment income
|
$
|
1,899,641
|
$
|
487,740
|
||||
Net realized gain on investments and foreign currency transactions
|
2,460,197
|
2,016,366
|
||||||
Net change in unrealized appreciation (depreciation) in value
|
||||||||
of investments and foreign currency transactions
|
15,326,147
|
(5,666,897
|
)
|
|||||
Net increase (decrease) in net assets resulting from operations
|
19,685,985
|
(3,162,791
|
)
|
|||||
Capital Share Transactions:
|
||||||||
Proceeds from common stock sold through rights offering
|
—
|
23,262,339
|
||||||
Increase in net assets from capital share transactions
|
—
|
23,262,339
|
||||||
Total increase in net assets
|
19,685,985
|
20,099,548
|
||||||
Net Assets:
|
||||||||
Beginning of year
|
45,869,924
|
25,770,376
|
||||||
End of year
|
$
|
65,555,909
|
$
|
45,869,924
|
For the Year Ended July 31,
|
||||||||||||||||||||
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||||
Per Share Operating Performance
|
||||||||||||||||||||
Net asset value, beginning of year
|
$
|
10.42
|
$
|
14.43
|
$
|
9.04
|
$
|
11.03
|
$
|
13.32
|
||||||||||
Net investment income (loss)
|
0.43
|
0.43
|
(0.18
|
)
|
(0.08
|
)
|
0.11
|
|||||||||||||
Net realized and unrealized gains (losses) on
|
||||||||||||||||||||
investments and foreign currency transactions
|
4.05
|
(1.50
|
)
|
5.57
|
(2.27
|
)
|
(2.45
|
)
|
||||||||||||
Net increase (decrease) from investment operations
|
4.48
|
(1.07
|
)
|
5.39
|
(2.35
|
)
|
(2.34
|
)
|
||||||||||||
Less: Distributions
|
||||||||||||||||||||
Dividends from net investment income
|
—
|
—
|
—
|
(0.12
|
)
|
0.00
|
(2)
|
|||||||||||||
Distributions from net realized gains
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Total dividends and distributions
|
—
|
—
|
—
|
(0.12
|
)
|
—
|
||||||||||||||
Capital Share Transactions
|
||||||||||||||||||||
Anti-dilutive effect of Common
|
||||||||||||||||||||
Share Repurchase Program
|
—
|
—
|
—
|
—
|
0.01
|
|||||||||||||||
Anti-dilutive effect of Tender Offer
|
—
|
—
|
—
|
0.48
|
0.04
|
|||||||||||||||
Dilutive effect of Common Share Rights Offering
|
—
|
(2.94
|
)
|
—
|
—
|
—
|
||||||||||||||
Total capital share transactions
|
—
|
(2.94
|
)
|
—
|
0.48
|
0.05
|
||||||||||||||
Net Asset Value, end of year
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Per share market value, end of year
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total Investment Return Based on
|
||||||||||||||||||||
Market Value, end of year(1)
|
35.79
|
%
|
-36.30
|
%
|
60.23
|
%
|
-24.50
|
%
|
-9.38
|
%
|
||||||||||
Ratios/Supplemental Data
|
||||||||||||||||||||
Net assets, end of year (000’s)
|
$
|
65,556
|
$
|
45,870
|
$
|
25,770
|
$
|
16,158
|
$
|
57,059
|
||||||||||
Ratios of expenses to average net assets:
|
2.13
|
%
|
2.32
|
%
|
3.89
|
%
|
2.61
|
%
|
2.09
|
%
|
||||||||||
Ratios of net investment income (loss)
|
||||||||||||||||||||
to average net assets:
|
3.43
|
%
|
1.12
|
%
|
-1.56
|
%
|
-0.38
|
%
|
0.79
|
%
|
||||||||||
Portfolio turnover rate
|
159.02
|
%
|
153.01
|
%
|
217.50
|
%
|
372.66
|
%
|
233.24
|
%
|
(1)
|
Total investment return is calculated assuming a purchase of common stock at the current market price on the first day and a sale at the current market price on the last day of each period
reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at the closing market price on the dividend ex-date. Total investment does not reflect brokerage commissions.
|
(2)
|
Less than 0.5 cents per share.
|
July 31, 2023
|
|
Notes to Financial Statements
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
Interest income on debt issued by the Mexican federal government is generally not subject to withholding. Withholding tax on interest from other debt obligations such as publicly traded bonds
and loans by banks or insurance companies is at a rate of 4.9% under the tax treaty between Mexico and the United States.
|
|
Gains realized from the sale or disposition of debt securities may be subject to a 4.9% withholding tax. Gains realized by the Fund from the sale or disposition of equity securities that are
listed and traded on the Mexican Stock Exchange (“MSE”) are exempt from Mexican withholding tax if sold through the stock exchange. Gains realized on transactions outside of the MSE may be subject to withholding at a rate of 25% (20% rate
prior to January 1, 2002) of the value of the shares sold or, upon the election of the Fund, at 35% (40% rate prior to January 1, 2002) of the gain. If the Fund has owned less than 25% of the outstanding stock of the issuer of the equity
securities within the 12 month period preceding the disposition, then such disposition will not be subject to capital gains taxes as provided for in the treaty to avoid double taxation between Mexico and the United States.
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
Level 1 – |
Unadjusted quoted prices in active markets for identical assets or liabilities that the company 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 risk, 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.
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
Level 1
|
Level 2*
|
Level 3*
|
Total
|
|||||||||||||
Equity
|
||||||||||||||||
Airlines
|
$
|
1,201,306
|
$
|
—
|
$
|
—
|
$
|
1,201,306
|
||||||||
Airports
|
4,182,377
|
—
|
—
|
4,182,377
|
||||||||||||
Auto Parts and Equipment
|
2,812,716
|
—
|
—
|
2,812,716
|
||||||||||||
Beverages
|
8,724,100
|
—
|
—
|
8,724,100
|
||||||||||||
Building Materials
|
3,667,385
|
—
|
—
|
3,667,385
|
||||||||||||
Capital Development Certificates
|
—
|
—
|
2,263,261
|
2,263,261
|
||||||||||||
Consumer Finance
|
1,766,428
|
—
|
—
|
1,766,428
|
||||||||||||
Chemical Products
|
2,240,661
|
—
|
—
|
2,240,661
|
||||||||||||
Communications Services
|
1,866,090
|
—
|
—
|
1,866,090
|
||||||||||||
Construction and Infrastructure
|
1,160,478
|
454,831
|
—
|
1,615,309
|
||||||||||||
Consumer Products
|
1,272,705
|
—
|
—
|
1,272,705
|
||||||||||||
Financial Groups
|
6,512,783
|
—
|
—
|
6,512,783
|
||||||||||||
Food
|
1,183,063
|
—
|
—
|
1,183,063
|
||||||||||||
Hotels, Restaurants, and Recreation
|
322,737
|
—
|
430,679
|
753,416
|
||||||||||||
Mining
|
4,070,010
|
—
|
—
|
4,070,010
|
||||||||||||
Railroads
|
4,602,091
|
—
|
—
|
4,602,091
|
||||||||||||
Real Estate Services
|
1,917,364
|
—
|
—
|
1,917,364
|
||||||||||||
Retail
|
8,514,284
|
—
|
—
|
8,514,284
|
||||||||||||
Total Equity
|
$
|
56,016,578
|
$
|
454,831
|
$
|
2,693,940
|
$
|
59,165,349
|
||||||||
Mexican Mutual Funds
|
$
|
23,127
|
$
|
—
|
$
|
—
|
$
|
23,127
|
||||||||
Real Estate Investment Trusts
|
$
|
5,621,020
|
$
|
—
|
$
|
—
|
$
|
5,621,020
|
||||||||
Short-Term Investments
|
$
|
185,236
|
$
|
—
|
$
|
—
|
$
|
185,236
|
||||||||
Total Investments in Securities
|
$
|
61,845,961
|
$
|
454,831
|
$
|
2,693,940
|
$
|
64,994,732
|
*
|
The Fund measures Level 3 activity as of the beginning and end of each financial reporting period.
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
Capital
|
||||||||
Common
|
Development
|
|||||||
Category
|
Stock
|
Certificates
|
||||||
Balance as of July 31, 2022
|
$
|
472,623
|
$
|
2,909,530
|
||||
Acquisitions
|
—
|
—
|
||||||
Dispositions
|
(114,510
|
)
|
(946,148
|
)
|
||||
Realized gain (loss)
|
23,144
|
(512,407
|
)
|
|||||
Change in unrealized appreciation/depreciation
|
49,422
|
812,286
|
||||||
Balance as of July 31, 2023
|
$
|
430,679
|
$
|
2,263,261
|
||||
Change in unrealized appreciation/depreciation during
|
||||||||
the period for Level 3 investments held at July 31, 2023
|
$
|
49,422
|
$
|
812,286
|
Fair Value
|
Impact to
|
||||
July 31,
|
Valuation
|
Unobservable
|
valuation from an
|
||
2023
|
Methodologies
|
Input(1)
|
increase to input
|
Range
|
|
Common Stock
|
$430,679
|
Lower of Market
|
Liquidity
|
Significant changes in
|
30%
|
Comparables
|
Discount
|
the liquidity discount
|
|||
or bid/ask
|
would have resulted in
|
||||
direct and proportional
|
|||||
changes in the fair
|
|||||
value of the security.
|
|||||
Capital
|
|||||
Development
|
|||||
Certificates
|
$2,263,261
|
Market
|
Liquidity
|
Significant changes in
|
15%
|
Comparables/
|
Discount
|
the liquidity discount
|
|||
Sum of the Parts
|
would have resulted in
|
||||
Valuation(2)
|
direct and proportional
|
||||
changes in the fair
|
|||||
value of the security.
|
(1)
|
In determining 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.
|
(2)
|
For the Sum of the Parts valuation, the valuation provides a range of values for a company’s equity by aggregating each of its business units (private and public) and arriving at a single total
enterprise value.
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
Total distributable earnings
|
|
$(129,312
|
)
|
|
Paid-in Capital
|
129,312
|
(i)
|
market value of investment securities, assets and liabilities at the current Mexican peso exchange rate on the valuation date, and
|
|
(ii)
|
purchases and sales of investment securities, income and expenses at the Mexican peso exchange rate prevailing on the respective dates of such transactions. Fluctuations in foreign currency
rates, however, when determining the gain or loss upon the sale of foreign currency denominated debt obligations pursuant to U.S. Federal income tax regulations; such amounts are categorized as foreign exchange gain or loss for income tax
reporting purposes.
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
Distributions paid from:
|
7/31/23
|
7/31/22
|
||||||
Ordinary Income
|
$
|
—
|
$
|
—
|
||||
Long-Term Capital Gain
|
—
|
—
|
||||||
Total
|
$
|
—
|
$
|
—
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
Cost of Investments for tax purposes(a)
|
$
|
49,719,296
|
|||
Gross tax unrealized appreciation on investments
|
17,544,779
|
||||
Gross tax unrealized depreciation on investments
|
(2,269,343
|
)
|
|||
Net tax unrealized appreciation (depreciation) on investments
|
15,275,436
|
||||
Unrealized appreciation/depreciation on foreign currency
|
(4,957
|
)
|
|||
Undistributed ordinary income
|
2,097,370
|
||||
Undistributed long-term capital gains
|
—
|
||||
Total distributable earnings
|
2,097,370
|
||||
Other accumulated losses
|
$
|
(5,574,244
|
)
|
||
Total accumulated earnings
|
$
|
11,793,605
|
(a)
|
Represents cost for federal income tax purposes. Differences between the Fund’s cost basis of investments at July 31, 2023, for book and tax purposes, relates primarily to the deferral of losses
related to wash sales and PFIC’s.
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (continued)
|
July 31, 2023
|
|
Notes to Financial Statements (concluded)
|
Additional Information
|
July 31, 2023
(Unaudited)
|
July 31, 2023
|
|
Additional Information (continued)
|
(Unaudited)
|
July 31, 2023
|
|
Additional Information (continued)
|
(Unaudited)
|
July 31, 2023
|
|
Additional Information (continued)
|
(Unaudited)
|
July 31, 2023
|
|
Additional Information (concluded)
|
(Unaudited)
|
Dividends and Distributions
|
July 31, 2023
(Unaudited)
|
July 31, 2023
|
|
Dividends and Distributions (concluded)
|
(Unaudited)
|
Results of Annual
|
|
|
|
Stockholders Meeting
|
July 31, 2023
(Unaudited) |
1.
|
Election of Directors
|
Shares Voted
|
% Voted
|
||
1 (a) Glenn Goodstein
|
|||
For
|
1,999,415
|
59.90%
|
|
Against
|
1,303,767
|
39.06%
|
|
Withheld
|
34,679
|
1.04%
|
|
Shares Voted
|
% Voted
|
||
1 (b) Gerald Hellerman
|
|||
For
|
1,826,377
|
54.72%
|
|
Against
|
1,482,811
|
44.42%
|
|
Withheld
|
28,673
|
0.86%
|
2.
|
To amend the Fund’s fundamental investment restriction related to borrowing or issuing senior securities to allow borrowing and issuing as permitted by the Investment Company
Act of 1940.
|
Shares Voted
|
% Voted
|
||
For
|
1,533,684
|
45.95%
|
|
Against
|
684,785
|
20.52%
|
|
Withheld
|
22,342
|
0.67%
|
|
Broker Non-Vote
|
1,097,051
|
24.93%
|
Privacy Policy
|
July 31, 2023
(Unaudited)
|
FACTS
|
WHAT DOES THE MEXICO EQUITY AND INCOME FUND, INC. (THE “FUND”), AND SERVICE PROVIDERS TO THE FUND, ON THE FUND’S BEHALF, DO WITH YOUR PERSONAL INFORMATION?
|
|||
Why?
|
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we
collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
|
|||
What?
|
The types of personal information we, and our service providers, on our behalf, collect and share depends on the product or service you have with us. This information can include:
|
|||
• Social Security number
|
||||
• account balances
|
||||
• account transactions
|
||||
• transaction history
|
||||
• wire transfer instructions
|
||||
• checking account information
|
||||
When you are no longer our customer, we continue to share your information as described in this notice.
|
||||
How?
|
All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’
personal information; the reasons the Fund, and our service providers, on our behalf, choose to share; and whether you can limit this sharing.
|
Reasons we can share your personal information
|
Does the Fund share?
|
Can you limit this sharing?
|
|
For our everyday business purposes –
|
|||
such as to process your transactions, maintain your account(s),
|
|||
respond to court orders and legal investigations, or report to
|
|||
credit bureaus
|
Yes
|
No
|
|
For our marketing purposes –
|
|||
to offer our products and services to you
|
No
|
We don’t share
|
|
For joint marketing with other financial companies
|
No
|
We don’t share
|
|
For our affiliates’ everyday business purposes –
|
|||
information about your transactions and experiences
|
Yes
|
No
|
|
For our affiliates’ everyday business purposes –
|
|||
information about your creditworthiness
|
No
|
We don’t share
|
|
For our affiliates to market to you
|
No
|
We don’t share
|
|
For nonaffiliates to market to you
|
No
|
We don’t share
|
Questions?
|
Call (414) 516-1514
|
July 31, 2023
|
|
Privacy Policy (concluded)
|
(Unaudited)
|
What we do
|
|||
Who is providing this notice?
|
The Mexico Equity and Income Fund, Inc. (the “Fund”)
|
||
How does the Fund, and the
|
To protect your personal information from unauthorized access and use,
|
||
Fund’s service providers, on the
|
we and our service providers use security measures that comply with
|
||
Fund’s behalf, protect my
|
federal law. These measures include computer safeguards and secured
|
||
personal information?
|
files and buildings.
|
||
How does the Fund, and the
|
We collect your personal information, for example, when you:
|
||
Fund’s service providers, on
|
• open an account
|
||
the Fund’s behalf, collect my
|
• provide account information
|
||
personal information?
|
• give us your contact information
|
||
• make a wire transfer
|
|||
We also collect your information from others, such as credit bureaus, affiliates, or other companies.
|
|||
Why can’t I limit all sharing?
|
Federal law gives you the right to limit only
|
||
• sharing for affiliates’ everyday business purposes – information about your creditworthiness
|
|||
• affiliates from using your information to market to you
|
|||
• sharing for nonaffiliates to market to you
|
|||
State laws and individual companies may give you additional rights to limit sharing.
|
|||
Definitions
|
|||
Affiliates
|
Companies related by common ownership or control. They can be financial and nonfinancial companies.
|
||
• None
|
|||
Nonaffiliates
|
Companies not related by common ownership or control. They can be financial and nonfinancial companies.
|
||
• The Fund does not share with nonaffiliates so they can market to you.
|
|||
Joint marketing
|
A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
|
||
• The Fund does not jointly market.
|
Management of the Fund
|
July 31, 2023
(Unaudited)
|
Term of
|
|||||
Year
|
Position(s)
|
Office/Length
|
Principal Occupation
|
Other Directorships
|
|
Name and Address
|
Born
|
with the Fund
|
of Time Served
|
During the Past Five Years
|
Held by Director
|
Gerald Hellerman
|
1937
|
Director
|
2022* /
|
Managing Director of
|
Trustee, High Income
|
615 E. Michigan Street
|
Since 2001
|
Hellerman Associates
|
Securities Fund;
|
||
Milwaukee, WI 53202
|
(a financial and corporate
|
Director, Swiss
|
|||
consulting firm) since 1993
|
Helvetia Fund, Inc.;
|
||||
(which terminated activities
|
Director, Special
|
||||
as of December 31, 2013).
|
Opportunities
|
||||
Fund, Inc.; Trustee,
|
|||||
Fiera Capital
|
|||||
Series Trust;
|
|||||
Trustee, Crossroads
|
|||||
Liquidating Trust
|
|||||
(until 2020);
|
|||||
Director,
|
|||||
MVC Capital
|
|||||
(until 2020).
|
July 31, 2023
|
|
Management of the Fund (continued)
|
(Unaudited)
|
Term of
|
|||||
Year
|
Position(s)
|
Office/Length
|
Principal Occupation
|
Other Directorships
|
|
Name and Address
|
Born
|
with the Fund
|
of Time Served
|
During the Past Five Years
|
Held by Director
|
Phillip Goldstein
|
1945
|
Chairman
|
2023* /
|
Since its inception in 2009,
|
Chairman, High
|
615 E. Michigan Street
|
Since 2000
|
Mr. Goldstein has been a
|
Income Securities
|
||
Milwaukee, WI 53202
|
Partner in Bulldog Investors,
|
Fund; Director, Swiss
|
|||
LLP, the investment advisor
|
Helvetia Fund, Inc.;
|
||||
of Special Opportunities
|
Director, Brookfield
|
||||
Fund, Inc. and separately-
|
DTLA Fund Office
|
||||
managed accounts.
|
Trust Investor;
|
||||
He is also a Partner in Ryan
|
Chairman, Special
|
||||
Heritage, LLP; a Principal
|
Opportunities Fund,
|
||||
of the former general
|
Inc.; Trustee,
|
||||
partner of several private
|
Crossroads
|
||||
investment partnerships in
|
Liquidating Trust
|
||||
the Bulldog Investors
|
(until 2020);
|
||||
group of private funds;
|
Director,
|
||||
and a Principal of the
|
MVC Capital, Inc.
|
||||
managing general partner
|
(until 2020).
|
||||
of Bulldog Investors
|
|||||
General Partnership.
|
|||||
Glenn Goodstein
|
1963
|
Director
|
2022* /
|
Investment Advisor
|
None
|
615 E. Michigan Street
|
Since 2001
|
Representative, The
|
|||
Milwaukee, WI 53202
|
Investment House, LLC;
|
||||
held numerous executive
|
|||||
positions with Automatic
|
|||||
Data Processing until 1996.
|
July 31, 2023
|
|
Management of the Fund (continued)
|
(Unaudited)
|
Term of
|
|||||
Year
|
Position(s)
|
Office/Length
|
Principal Occupation
|
Other Directorships
|
|
Name and Address
|
Born
|
with the Fund
|
of Time Served
|
During the Past Five Years
|
Held by Director
|
Rajeev Das
|
1968
|
Director
|
2024* /
|
Since 2004, Mr. Das has
|
Trustee, High Income
|
615 E. Michigan Street
|
Since 2001
|
been a Principal and the
|
Securities Fund.
|
||
Milwaukee, WI 53202
|
Head Trader of Bulldog
|
||||
Investors, LLP, the investment
|
|||||
adviser to the Special
|
|||||
Opportunities Fund, Inc.,
|
|||||
and separately managed
|
|||||
accounts. Principal of Ryan
|
|||||
Heritage, LLP. Secretary of
|
|||||
the Swiss Helvetia Fund.
|
|||||
Vice President of Special
|
|||||
Opportunities Fund, Inc.
|
|||||
Richard Abraham
|
1955
|
Director
|
2024* /
|
Since 1998, Mr. Abraham
|
None
|
615 E. Michigan Street
|
Since 2015
|
has been self employed as
|
|||
Milwaukee, WI 53202
|
a securities trader.
|
||||
Stephanie Darling
|
1970
|
Chief
|
Indefinite /
|
General Counsel and Chief
|
None
|
615 E. Michigan Street
|
Compliance
|
Since 2020
|
Compliance Officer of
|
||
Milwaukee, WI 53202
|
Officer
|
Bulldog Investors, LLP and
|
|||
Ryan Heritage, LLP;
|
|||||
Chief Compliance Officer
|
|||||
of Swiss Helvetia Fund, Inc.,
|
|||||
High Income Securities Fund,
|
|||||
and Special Opportunities
|
|||||
Fund, Inc.; Principal, the Law
|
|||||
Office of Stephanie Darling;
|
|||||
Editor-in-Chief, The
|
|||||
Investment Lawyer.
|
|||||
Maria Eugenia Pichardo
|
1950
|
President
|
Indefinite /
|
Portfolio Manager of the
|
None
|
Andres Bello No. 45 – 22 Floor
|
Since 2004
|
Fund since the Fund’s
|
|||
Col. Chapultepec Polanco
|
Inception; President and
|
||||
Del. Miguel Hidalgo
|
General Partner, Pichardo
|
||||
Mexico, CDMX (D.F.),
|
Asset Management, S.A. de
|
||||
C.P. 11560
|
C.V. since 2003; Managing
|
||||
Director, Acciones y Valores
|
|||||
de Mexico, S.A. de C.V.
|
|||||
from 1979-2002.
|
July 31, 2023
|
|
Management of the Fund (concluded)
|
(Unaudited)
|
Term of
|
|||||
Year
|
Position(s)
|
Office/Length
|
Principal Occupation
|
Other Directorships
|
|
Name and Address
|
Born
|
with the Fund
|
of Time Served
|
During the Past Five Years
|
Held by Director
|
Luis Calzada
|
1965
|
Secretary
|
Indefinite /
|
Portfolio Administration
|
None
|
Andres Bello No. 45 – 22 Floor
|
Since 2022
|
& Compliance
|
|||
Col. Chapultepec Polanco
|
Pichardo Asset Management
|
||||
Mexico, CDMX (D.F.),
|
S.A. de C.V.
|
||||
C.P. 11560
|
|||||
Elisa Estevez
|
1991
|
Chief
|
Indefinite /
|
Corporate Risk
|
None
|
Andres Bello No. 45 – 22 Floor
|
Financial
|
Since 2021
|
Management, Pichardo
|
||
Col. Chapultepec Polanco
|
Officer
|
Asset Management
|
|||
Mexico, CDMX (D.F.),
|
S.A. de C.V.
|
||||
C.P. 11560
|
*
|
In accordance with the Fund’s Articles of Incorporation, the terms of the Fund’s Board of Directors are staggered. The Board of Director’s are divided into three classes: Class I, Class II and
Class III, each having a term of three years. Each year the term of office of one Class expires. The effect of these staggered terms is to limit the ability of other entities or persons to acquire control of the Fund by delaying the
replacement of a majority of the Board of Directors.
|
Monumento a La Independencia Mexico City, Mexico. CANVA. 2021
|
|
|
|
http://www.mxefund.com
|
FYE 7/31/2023
|
FYE 7/31/2022
|
|
Audit Fees
|
$31,000
|
$31,000
|
Audit-Related Fees
|
$0
|
$0
|
Tax Fees
|
$3,300
|
$3,300
|
All Other Fees
|
$0
|
$0
|
FYE 7/31/2023
|
FYE 7/31/2022
|
|
Audit-Related Fees
|
0%
|
0%
|
Tax Fees
|
0%
|
0%
|
All Other Fees
|
0%
|
0%
|
Non-Audit Related Fees
|
FYE 7/31/2023
|
FYE 7/31/2022
|
Registrant
|
$3,300
|
$3,300
|
Registrant’s Investment Adviser
|
$0
|
$0
|
(a)
|
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
|
(b)
|
Not applicable.
|
Portfolio Manager
Name
|
Registered
Investment Company
(dollar amount and
number of accounts)
|
Other Pooled
Investments (dollar
amount and number
of accounts)
|
Other Accounts
(dollar amount and
number of
accounts)
|
Ms. Maria Eugenia Pichardo
|
$65,552,507.94 (1)
|
$21,177,264.71(2)
|
$2,244,681.28(1)
|
Portfolio Manager Name
|
Dollar Range of Equity
Securities in the Fund
(None, $1-$10,000,
$10,001-$50,000, $50,001-
$100,000, $100,001 -
$500,000, $500,001 to
$1,000,000, Over
$1,000,000)
|
Aggregate Dollar Range of
Securities in all Registered
Investment Companies
Overseen by Portfolio
Manager in Family of
Investment Companies
|
Ms. Maria Eugenia Pichardo
|
None
|
None
|
Period
|
(a)
Total Number of
Shares (or Units)
Purchased
|
(b)
Average Price Paid
per Share (or Unit)
|
(c)
Total Number of
Shares (or Units)
Purchased as Part
of Publicly
Announced Plans
or Programs
|
(d)
Maximum Number
(or Approximate
Dollar Value) of
Shares (or Units)
that May Yet Be
Purchased Under
the Plans or
Programs
|
2/1/23 to 2/28/23
|
0
|
$0.00
|
0
|
0
|
3/1/23 to 3/31/23
|
0
|
$0.00
|
0
|
0
|
4/1/23 to 4/30/23
|
0
|
$0.00
|
0
|
0
|
5/1/23 to 5/31/23
|
0
|
$0.00
|
0
|
0
|
6/1/23 to 6/30/23
|
0
|
$0.00
|
0
|
0
|
7/1/23 to 7/31/23
|
0
|
$0.00
|
0
|
0
|
Total
|
0
|
$0.00
|
0
|
0
|
(a)
|
The Registrant’s President and Chief Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of
the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and
procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s
service provider.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
|