mexeq_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: July 31, 2008



Date of reporting period:  4/30/2008
 
Item 1. Schedule of Investments.
THE MEXICO EQUITY AND INCOME FUND, INC.
            
                 
 
Schedule of Investments (Unaudited)
        
April 30, 2008
  
                 
 
MEXICO - 95.76%
  
Shares
      
     Value
  
                 
 
COMMON STOCKS - 94.66%
              
                 
 
Cement - 2.01%
              
 
Corporacion Moctezuma, S.A. de C.V.
397,213
        $
                   1,037,270
  
 
Grupo Cementos de Chihuahua, S.A. de C.V.
385,854
      
1,967,759
  
             
3,005,029
  
                 
 
Communications - 6.91%
              
 
America Movil, S.A. de C.V. - Class L
1,425,000
      
4,139,650
  
 
America Movil, S.A. de C.V. - Class L ADR
55,771
      
 3,232,487
  
 
Axtel, S.A. de C.V. CPO (a)
  
1,602,100
      
 2,963,245
  
             
 10,335,382
  
                 
 
Financial Groups - 2.49%
              
 
Corporativo GBM SAB de CV
  
3,775,500
      
3,721,956
  
                 
 
Food, Beverage, and Tobacco - 5.75%
            
 
Embotelladoras Arca S.A.
  
393,600
      
 1,501,037
  
 
Fomento Economico Mexicano, S.A. de C.V.
1,625,700
      
7,098,754
  
             
8,599,791
  
                 
 
Housing - 13.12%
              
 
Corp GEO S.A. de C.V.
  
713,900
      
 2,666,724
  
 
Consorcio ARA, S.A. de C.V.
  
6,140,500
      
6,433,950
  
 
Desarrolladora Homex, S.A. de C.V. (a)
535,300
      
5,327,610
  
 
SARE Holding, S.A. de C.V. (a)
  
2,619,711
      
3,621,576
  
 
Urbi, Desarrollos Urbanos, S.A. de C.V.
495,800
      
 1,588,734
  
             
19,638,594
  
                 
 
Industrial Conglomerates - 13.54%
              
 
Industrias CH, S.A. - Class B (a)
  
1,536,641
      
7,029,249
  
 
Mexichem, S.A. de C.V.
  
1,849,606
      
13,241,513
  
             
20,270,762
  
                 
 
Infrastructure - 22.86%
              
 
Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)
2,172,300
      
13,153,405
  
 
Grupo Mexicano de Desarrollo, S.A. (a)
1,964,600
      
5,244,552
  
 
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)
4,400,283
      
15,816,057
  
             
34,214,014
  
                 
 
Media - 4.88%
              
 
Grupo Televisa, S.A. CPO
  
1,131,064
      
5,579,430
  
 
Grupo Televisa, S.A. - ADR
  
70,096
      
1,729,969
  
             
7,309,399
  
                 
 
Mining - 10.65%
              
 
Grupo Mexico, S.A. - Series B
  
1,985,266
      
14,511,772
  
 
Industrias Penoles, S.A.
  
48,677
      
1,434,263
  
             
 15,946,035
  
                 
 
 
 
Schedule of Investments (continued)
          
April 30, 2008
  
                 
 
COMMON STOCKS (continued)
  
 Shares
      
 Value
  
                 
                 
 
Real Estate Developer - 8.52%
              
 
GMD Resorts SAB de CV
  
1,663,600
        $
 1,808,132
  
 
Grupe, S.A. de C.V. (a)(b)
  
4,071,100
      
 10,945,539
  
             
                    12,753,671
  
                 
 
Shipping - 0.15%
              
 
Grupo TMM S.A. - ADR
  
120,535
      
229,017
  
                 
 
Waste Management - 3.78%
              
 
Promotora Ambiental, S.A. de C.V. (a)
1,944,125
      
5,653,277
  
                 
 
TOTAL COMMON STOCKS (Cost $99,770,777)
      
  $
   141,676,927
  
                 
 
INVESTMENT COMPANIES - 0.82%
Shares
          
                 
 
GBM Fondo de Mercado de Dinero S.A. de C.V., SIID(a)
472,619
        $
  1,221,657
  
                 
 
TOTAL INVESTMENT COMPANIES (Cost $1,220,290)
      
1,221,657
  
                 
 
SHORT-TERM INVESTMENTS - 0.28%
            
                 
 
Mexican CETES
  
4,594,580
    
  $
  412,353
  
 
0.000% Coupon, 7.345% Effective Yield, 02/19/2009 (c)
          
                 
 
TOTAL SHORT-TERM INVESTMENTS (Cost $401,922)
      
 412,353
  
                 
 
TOTAL MEXICO (Cost $101,392,989)
          $
143,310,937
  
                 
 
UNITED STATES - 0.69%
  
Shares
          
                 
 
INVESTMENT COMPANIES - 0.69%
            
                 
 
First American Treasury Obligation - Class A, 1.252%
1,039,965
    
  $
    1,039,965
  
                 
 
TOTAL INVESTMENT COMPANIES (Cost $1,039,965)
      
 1,039,965
  
                 
 
TOTAL UNITED STATES (Cost $1,039,965)
        
1,039,965
  
                 
 
TOTAL INVESTMENTS - 96.45% (Cost $102,432,954)
      
144,350,902
  
                 
 
OTHER ASSETS IN EXCESS OF LIABILITIES - 3.55%
      
5,308,481
  
                 
 
TOTAL NET ASSETS - 100.00%
        
  $
149,659,383
  
                 

 
 
Footnotes and Abbreviations
 
ADR - American Depository Receipts.
 
(a) Non-income producing security.
 
(b) Affiliated company.
 
(c) Effective yield based on the purchase price. The calculation assumes the security
 
      is held to maturity.
 
 
The cost basis of investments for federal income tax purposes at April 30, 2008 was as follows:
         
Cost of investments*
 $
102,432,954
    
Gross unrealized appreciation
  
42,610,314
    
Gross unrealized depreciation
  
(692,365
 )  
Net unrealized appreciation
 $
41,917,948
    
         
 
*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.
 
TRANSACTIONS WITH AFFILIATES
The following issuer is affiliated with the Fund; that is, the Fund held 5% or more of the outstanding voting shares during the period
from August 1, 2007 through April 30, 2008.  As defined in Section (2)(a)(3) of the Investment Company Act of 1940, such issuers are:
           
 
Issuer Name
  
Grupe, S.A.de C.V.
  
           
 
August 1, 2007
        
 
    Shares
  
 4,071,300
    
 
    Cost
 $
  5,548,588
    
           
 
Gross Additions
        
 
    Shares
  
 —
    
 
    Cost
 $
   —
    
           
 
Gross Deductions
        
 
    Shares
  
    200
    
 
    Cost
 $
 158
    
           
 
February 29, 2008
    
 
    Shares
  
  4,071,100
    
 
    Cost
 $
  5,548,430
    
 
    Market Value
  $
 10,945,539
    
 
Realized gain (loss)
 $
   441
    
 
Investment income
  $
  —
    
           
 
* As a result of the Fund's beneficial ownership of this common stock, regulators require that the Fund state that it may be deemed
 
   an affiliate of the respective issuer.
    
           

 
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   May 26, 2008                                                                              



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   May 26, 2008                                                                              


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

Date   May 27, 2008