Unassociated Document



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, 2009



Date of reporting period:  April 30, 2009
 
 
 
 
Item 1. Schedule of Investments.
THE MEXICO EQUITY AND INCOME FUND, INC.
            
             
Schedule of Investments
        
April 30, 2009
  
         
(Unaudited)
  
MEXICO - 104.57%
  
Shares
    
Value
  
             
COMMON STOCKS - 80.39%
            
             
Airlines - 3.90%
            
Grupo Aeroportuario del Sureste, S.A.B. de C.V.
     639,700       1,991,475  
              1,991,475  
                 
Cement - 2.58%
                
Corporacion Moctezuma, S.A. de C.V.
     352,417       594,764  
Grupo Cementos de Chihuahua, S.A. de C.V.
     335,552       724,283  
              1,319,047  
                 
Communications - 8.71%
                
America Movil, S.A. de C.V. - Class L
     2,717,800       4,452,893  
              4,452,893  
                 
Financial Groups - 1.86%
                
Corporativo GBM SAB de CV
     4,845,125       951,056  
              951,056  
                 
Food, Beverage, and Tobacco - 8.73%
                
Embotelladoras Arca S.A.
     354,938       799,035  
Fomento Economico Mexicano, S.A. de C.V.
     710,000       2,005,650  
Grupo Bimbo, S.A.B. de C.V.
     366,652       1,657,981  
              4,462,666  
                 
Housing - 1.22%
                
Corp GEO S.A. de C.V.
     447,400       625,537  
              625,537  
                 
Industrial Conglomerates - 13.86%
                
Industrias CH, S.A. - Class B (a)
     375,118       826,260  
Kimberly-Clark de Mexico, S.A.B. de C.V.
     833,200       3,012,097  
Mexichem, S.A. de C.V.
     3,650,500       3,249,648  
              7,088,005  
                 
Infrastructure - 16.83%
                
Carso Infraestructura y Construccion, S.A.
     1,025,769       520,834  
Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)
     812,595       1,473,807  
Grupo Mexicano de Desarrollo, S.A. (a)
     1,792,915       883,081  
Impulsora del Desarrollo y el Empleo en America Latina, S.A. de C.V.
     861,000       693,490  
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)
     3,234,793       5,037,524  
              8,608,736  
                 
Media - 4.72%
                
Grupo Televisa, S.A. CPO
     590,569       1,829,113  
Grupo Televisa, S.A. - ADR
     37,765       584,602  
              2,413,715  
                 
Mining - 4.71%
                
Industrias Penoles, S.A.
     220,983       2,408,468  
              2,408,468  
                 
Real Estate Developer - 10.47%
                
GMD Resorts SAB de CV (c)
     1,464,623       456,139  
Grupe, S.A. de C.V. (a)(b)(c)
     3,468,919       4,899,603  
              5,355,742  
                 
Waste Management - 2.80%
                
Promotora Ambiental, S.A. de C.V. (a)
     1,882,812       1,431,952  
              1,431,952  
                 
TOTAL COMMON STOCKS (Cost $50,629,018)
           $ 41,109,292  
                 
 
 
 
 
 
Schedule of Investments (continued)
        
April 30, 2009
  
             
SHORT-TERM INVESTMENTS - 24.18%
  
Principal
    
Value
  
             
Mexican BACMEXT
     11,862,537 *   $ 858,663  
0.000% Coupon, 5.417% Effective Yield, 05/05/2009 (c)
                
Mexican BACMEXT
     30,034,883 *     2,173,329  
0.000% Coupon, 5.445% Effective Yield, 05/07/2009 (c)
                
Mexican INAFIN
     33,906,810 *     2,454,727  
0.000% Coupon, 4.742% Effective Yield, 05/04/2009 (c)
                
Mexican INAFIN
     37,760,374 *     2,732,347  
0.000% Coupon, 5.445% Effective Yield, 05/07/2009 (c)
                
Mexican BI CETES
     3,500,000       2,524,273  
0.000% Coupon, 5.565% Effective Yield, 05/28/2009 (c)
                
El Puerto de Liverpool SA de CV
     22,386,300 *     1,621,706  
9.240%, 02/11/2010
                
                 
TOTAL SHORT-TERM INVESTMENTS (Cost $12,205,327)
       12,365,045  
                 
TOTAL MEXICO (Cost $62,834,345)
           $ 53,474,337  
                 
UNITED STATES - 0.88%
  
Shares
          
                 
INVESTMENT COMPANIES - 0.88%
                
                 
First American Treasury Obligation - Class A, 2.132%
     441,625     $ 441,625  
First American Treasury Obligation - Class Y, 2.132%
     9,655       9,655  
                 
TOTAL INVESTMENT COMPANIES (Cost $451,280)
             451,280  
                 
TOTAL UNITED STATES (Cost $451,280)
             451,280  
                 
TOTAL INVESTMENTS - 105.45% (Cost $63,285,625)
             53,925,617  
                 
LIABILITIES IN EXCESS OF OTHER ASSETS - (5.45)%
       (2,785,770 )
                 
TOTAL NET ASSETS - 100.00%
           $ 51,139,847  
                 
 
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.
      
*   Principal Amount in Mexican Pesos
      
       
The cost basis of investments for federal income tax purposes at April 30, 2009 was as follows:
  
       
Cost of investments**
$
63,285,625
  
Gross unrealized appreciation
  
4,159,399
  
Gross unrealized depreciation
  
(13,519,407
) 
Net unrealized appreciation
 $
(9,360,008
)
       
 
**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 (Unaudited)
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, 2008 through April 30, 2009, as defined in Section (2)(a)(3) of the Investment Company Act of 1940.
         
Issuer Name
    
Grupe, S.A.de C.V.
         
August 1, 2008
        
    Shares
    
                   3,849,668
  
    Cost
   $
5,374,063
  
         
Gross Additions
        
    Shares
    
                                —
  
    Cost
   $
—
  
         
Gross Deductions
        
    Shares
    
                      380,749
  
    Cost
   $
378,269
  
         
April 30, 2009
        
    Shares
    
                   3,468,919
  
    Cost
   $
4,995,794
  
    Market Value
   $
4,899,603
  
Realized gain (loss)
   $
—
  
Investment income
   $
—
  
         
 
FAS 157 – Summary of Fair Value Exposure at April 30, 2009
  
         
Various inputs are used in determining the value of the Fund’s investments. These inputs are
summarized in the three broad levels listed below:
  
         
 
Level 1 - Quoted prices in active markets for identical securities.
 
Level 2 - Other significant observable inputs (including quoted prices for similar
 
  securities, interest rates, prepayment speeds, credit risk, etc.)
 
Level 3 - Significant unobservable inputs (including the Fund’s own assumptions in
 
  determining the fair value of investments.)
  
         
The inputs or methodology used for valuing securities are not an indication of the risk associated
with investing in those securities.
    
         
The following is a summary of the inputs used, as of April 30, 2009, in valuing the Fund’s investments
carried at fair value:
      
         
Description
  
Level 1
Level 2
Level 3
         
Invesments in Securities
      
    Unaffiliated Issuers
$36,660,973
                                12,365,045
                       —
    Affiliated Issuers
                                 4,899,603
                                              —
                                                    —
Total
  
$41,560,576
$12,365,045
$0
 
 
 
 
 
 
 
 
 
 
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 Rule 13a-15(b) or Rule 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 1940 Act) that occurred during the Registrant's last fiscal quarter that have materially affected, or are 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 1940 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 27, 2009                                                                          



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 27, 2009                                                                          

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

Date    May 19, 2009