Mexico Equity & Income Fund Inc · NYSE:MXE

Mexico Equity & Income Fund — Investor Presentation (June 2018)

15 slides from Mexico Equity & Income Fund's investor presentation, Jun 15, 2018

  1. Slide 1: Pichardo Asset Management Quarterly Shareholders Presentation

    Pichardo Asset Management An Independent Portfolio Advisory Firm Quarterly Shareholders Presentation 27-year track record investing in Mexican equities June 15, 2018 Experience 1 Consistency Vision

  2. Slide 2: Index

    Index I. MXE‘s Performance.....................................................................................3-7 II. Portfolio Construction..................................................................................8-13 III. PAM‘s contacts.....................................................

  3. Slide 3: MXE's Performance

    I. MXE’s Performance The MXE’s Net U.S. Dollar Asset Value per Share Return with Dividends Reinvested Total Annual Average US Dollar Return through May 31, 2018 As of May 31, 2018 (dividends reinvested) Since Inception in Fund 1 Month YTD 1 Year 3 Years 5 Years 10 Years 8/30/90 1 1 1 1 1 1 2 MXE NAV

  4. Slide 4: Relative Sector Contribution: MXE vs. MEXBOL Index

    I. MXE’s Performance Relative Sector Contribution: MXE vs. MEXBOL Index Cumulative last twelve months, as of May 31, 2018 350 Financials 275 bps Consumer Discretionary 247 bps 300 350 250 300 200 250 200 150 150 100 100 50 50 0 0 -50 -50 300 Materials 246 bps Telecommunication Services 141 bps 160 2

  5. Slide 5: Relative Sector Contribution: MXE vs. MEXBOL Index

    I. MXE’s Performance Relative Sector Contribution: MXE vs. MEXBOL Index Cumulative last twelve months, as of May 31, 2018 80 Real Estate 4 bps Industrials -61 bps 0 60 40 -50 20 0 -100 -20 -150 -40 -60 -200 40 Utilities -119 bps Consumer Staples -123 bps 20 100 0 50 -20 0 -40 -50 -60 -100 -80 -150 -

  6. Slide 6: MXE Performance Comparison vs MEXBOL Index

    I. MXE’s Performance MXE Performance Comparison vs MEXBOL Index One Year through May 31, 2018 115 113 111 109 107 105 103 101 99 97 95 93 MXE NAV -9.26% 91 89 MEXBOL -13.03% 87 85 Source: PAM, Bloomberg Experience 6 Consistency Vision

  7. Slide 7: Turnover Ratio & Spread Performance vs. Mexbol Index

    I. MXE’s Performance Turnover Ratio & Spread Performance vs. Mexbol Index Ten Years to the Fund´s Fiscal Year End As of May 31, 2018 400% Turnover Spread 3,000 2,637 350% 2,000 300% 1,541 1,000 250% 665 477 211 269* 276 200% 61 0 150% -759 -720 -1,000 100% -2,000 -2,120 50% 0% -3,000 July-08 July-09

  8. Slide 8: Sector Overweight / Underweight vs. the Mexbol Index

    II. Portfolio Construction Sector Overweight / Underweight vs. the Mexbol Index as of May 31, 2018, in basis points Utilities 744 Real Estate 444 Materials 323 -131 Industrials -209 Telecommunication Services -328 Consumer Discretionary -424 Financials -1,338 Consumer Staples Source: PAM, Bloomberg

  9. Slide 9: MXE Portfolio's Total Asset Value Classified by Sector

    II. Portfolio Construction MXE Portfolio’s Total Asset Value Classified by Sector (%) As of May 31, 2018 Source: PAM, Bloomberg Experience 9 Consistency Vision

  10. Slide 10: Active Investment Strategy

    II. Portfolio Construction Active Investment Strategy As of May 31, 2018 bps Largest De-Indexation Lowest De-Indexation 3,000 2,500 2,000 1,500 1,000 500 0 MXE De-Indexed Investment Strategy Average Source: PAM, Bloomberg. Experience 10 Consistency Vision

  11. Slide 11: Disciplined Active Investment Strategy

    II. Portfolio Construction Disciplined Active Investment Strategy (%) Top Ten (January 2017 to May 2018) 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 MXE Top Ten (Less Concentration) MEXBOL Index Top Ten (High Concentration) Average Source: PAM, Bloomberg. Experience 11 Consistency Vision

  12. Slide 12: 12-month forward EV/EBITDA Valuation

    II. Portfolio Construction 12-month forward EV/EBITDA Valuation As of May 31, 2018 10.5x 15% 10% 9.5x 5% 0% 8.5x -5% -8% -10% 7.7x 7.5x -15% -20% 7.1x 6.5x -25% MEXBOL Index MXE´s Portfolio Premium/Discount Source: PAM, Bloomberg Experience 12 Consistency Vision

  13. Slide 13: 12-month Forward P/E Valuation

    II. Portfolio Construction 12-month Forward P/E Valuation As of May 31, 2018 21.0x 15% 20.0x 10% 19.0x 5% 18.0x 17.0x 0% 16.0x -5% -6% 15.0x 14.6x -10% 14.0x 13.6x 13.0x -15% MEXBOL Index MXE´s Portfolio Premium/Discount Source: PAM, Bloomberg Experience 13 Consistency Vision

  14. Slide 14: PAM's Contact Information

    III. PAM’s Contact Information Pichardo Asset Management, SA de CV An Independent Investment Advisory Firm www.paminversion.com Andres Bello 45, 22nd Floor, Polanco, 11550 CDMX, México Phone: + 52 (55) 52 61 46 00 /04/21/16 epichardo@paminversion.com Equity Portfolio Manager arodriguez@paminversion.

  15. Slide 15: Disclaimers

    IV. Disclaimers **THE MEXICO FUND, INC. (MXF) Closed-End Fund listed in the New York Stock Exchange in 1981 Investment Objective: Long-term capital appreciation through investments in securities, primarily equity, listed on The Mexican Stock Exchange. Expense ratio: 1.59 (For its fiscal year ended O

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