mxe_nq.htm



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 




Investment Company Act file number  811-06111



The Mexico Equity and Income Fund, Inc.
(Exact name of registrant as specified in charter)



615 East Michigan Street
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)



Mr. Gerald Hellerman
C/O U.S. Bancorp Fund Services, LLC
615 E. Michigan Street
Milwaukee, WI 53202
(Name and address of agent for service)



866-700-6104
Registrant's telephone number, including area code



Date of fiscal year end: 7/31/2008



Date of reporting period:  10/31/2007
 
Item 1. Schedule of Investments.
THE MEXICO EQUITY AND INCOME FUND, INC.
            
         
October 31, 2007
  
Schedule of Investments (Unaudited)
            
             
MEXICO - 97.93%
  
Shares
    
Value
  
             
COMMON STOCKS - 96.43%
            
             
Airlines - 1.33%
            
Grupo Aeroportuario del Centro Norte, S.A. de C.V.
    
256,500
     $
989,916
  
Grupo Aeroportuario del Pacifico, S.A. de C.V. - Class B
    
174,500
      
917,465
  
Grupo Aeroportuario del Sureste, S.A. de C.V. - Class B
    
116,900
      
693,342
  
             
2,600,722
  
                 
Cement - 4.02%
                
Cemex, S.A. de C.V. CPO
    
1,301,900
      
3,951,183
  
Corporacion Moctezuma, S.A. de C.V.
    
500,000
      
1,594,373
  
Grupo Cementos de Chihuahua, S.A. de C.V.
    
415,600
      
2,326,580
  
             
7,872,136
  
                 
Communications - 11.90%
                
America Movil, S.A. de C.V. - Class L
    
4,680,644
      
14,868,315
  
America Movil, S.A. de C.V. - Class L ADR
    
60,070
      
3,927,977
  
Axtel, S.A. de C.V. CPO (a)
    
1,725,609
      
4,487,797
  
             
23,284,090
  
                 
Financial Groups - 7.82%
                
GBM Grupo Bursatil Mexicano, S.A. de C.V. Casa de Bolsa (a)
    
4,909,767
      
6,124,258
  
Grupo Financiero Banorte, S.A. de C.V. - Class O
    
1,991,000
      
9,179,607
  
             
15,303,865
  
                 
Food, Beverage, and Tobacco - 3.27%
                
Fomento Economico Mexicano, S.A. de C.V.
    
1,821,900
      
6,399,077
  
                 
Housing - 5.51%
                
Desarrolladora Homex, S.A. de C.V. (a)
    
9,500
      
89,801
  
Desarrolladora Homex, S.A. de C.V. - ADR (a)
    
40,500
      
2,288,655
  
Consorcio ARA, S.A. de C.V.
    
2,166,800
      
2,438,603
  
SARE Holding, S.A. de C.V. (a)
    
3,430,106
      
5,961,066
  
             
10,778,125
  
                 
Industrial Conglomerates - 5.75%
                
Alfa, S.A. - Class A
    
362,800
      
2,416,171
  
Industrias CH, S.A. - Class B (a)
    
756,700
      
3,009,058
  
Mexichem, S.A. de C.V.
    
1,414,360
      
5,820,597
  
             
11,245,826
  
                 
Infrastructure - 26.31%
                
Carso Infraestructura y Construccion, S.A. de C.V. (a)
    
6,671,100
      
7,207,603
  
Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)
    
2,325,750
      
16,200,089
  
Grupo Mexicano de Desarrollo, S.A. (a)
    
1,867,600
      
6,785,540
  
Impulsora del Desarrollo y el Empleo en America Latina, S.A. de C.V. (a)
    
4,000,600
      
6,205,855
  
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)
    
4,134,500
      
15,083,897
  
             
51,482,985
  
                 
Media - 1.82%
                
Grupo Televisa, S.A. CPO
    
344,200
      
1,686,055
  
Grupo Televisa, S.A. - ADR
    
75,500
      
1,876,175
  
             
3,562,230
  
                 
                 
Schedule of Investments (continued)
                
                 
COMMON STOCKS (continued)
  
Shares
    
Value
  
                 
Mining - 7.58%
                
Grupo Mexico, S.A. - Series B
    
1,076,200
     $
9,759,229
  
Industrias Penoles, S.A.
    
211,300
      
5,071,795
  
             
14,831,023
  
                 
Real Estate Developer - 6.31%
                
Grupe, S.A. de C.V. (a)(b)
    
4,071,100
      
12,351,708
  
             
12,351,708
  
                 
Retailing - 9.54%
                
Wal-Mart de Mexico, S.A. de C.V. - Class V
    
4,608,790
      
18,677,216
  
                 
Shipping - 0.34%
                
Grupo TMM, S.A. - ADR (a)
    
216,800
      
665,576
  
                 
Waste Management - 4.93%
                
Promotora Ambiental, S.A. de C.V. (a)
    
2,702,000
      
9,654,978
  
                 
TOTAL COMMON STOCKS (Cost $121,034,165)
           $
188,709,557
  
                 
                 
INVESTMENT COMPANIES - 1.50%
  
Shares
          
                 
GBM Fondo de Mercado de Dinero S.A. de C.V., SIID para Personas Fisicas (a)
    
900,760
      
2,236,188
  
                 
Inversion Horizonte S.A. de C.V. SIID
    
5,820,732
      
704,928
  
                 
TOTAL INVESTMENT COMPANIES (Cost $2,919,727)
           $
2,941,116
  
                 
TOTAL MEXICO (Cost $123,953,892)
           $
191,650,673
  
                 
                 
UNITED STATES - 0.23%
  
Shares
          
                 
INVESTMENT COMPANIES - 0.23%
                
                 
First American Treasury Obligation - Class A, 3.797%
    
455,544
      
455,544
  
                 
TOTAL INVESTMENT COMPANIES (Cost $455,544)
           $
455,544
  
                 
TOTAL UNITED STATES (Cost $455,544)
           $
455,544
  
                 
TOTAL INVESTMENTS - 98.17% (Cost $124,409,436)
           $
192,106,217
  
                 
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.83%
            
3,588,638
  
                 
TOTAL NET ASSETS - 100.00%
           $
195,694,854
  
                 
Footnotes and Abbreviations
                
ADR - American Depository Receipts.
                
(a) Non-income producing security.
                
(b) Affiliated company.
                
                 

The cost basis of investments for federal income tax purposes at October 31, 2007 was as follows:

Cost of investments*
 $
192,106,217
  
Gross unrealized appreciation
  
68,375,003
  
Gross unrealized depreciation
  
(678,222)
  
Net unrealized appreciation
 $
67,696,781
  
        

*Because tax adjustments are calculated annually, the above table reflects the tax adjustments outstanding at the Fund's previous
   fiscal year end. For the previous fiscal year's federal income tax information, please refer to the Notes to Financial Statements
   section in the Fund's most recent semi-annual or annual report.   
 
 
Item 2. Controls and Procedures.
 
(a)  
The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(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 Registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.


 
Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)).  Filed herewith.

 
 
 

 



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)  The Mexico Equity and Income Fund, Inc.            

By (Signature and Title) /s/ Maria Eugenia Pichardo                  
Maria Eugenia Pichardo, President

Date  December 17, 2007                                                                  



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)   /s/ Maria Eugenia Pichardo                
Maria Eugenia Pichardo, President

Date  December 17, 2007                                                                  

By (Signature and Title)   /s/ Gerald Hellerman                            
Gerald Hellerman, Chief Financial Officer

Date  December 17, 2007