The Mexico Fund, Inc. Announces Change in Distribution Rate of Its Managed Distribution Plan and Declares Distribution

WASHINGTON, DC--(Marketwired - Sep 13, 2016) - The Mexico Fund, Inc. (NYSE: MXF) announced today that the Board of Directors (Board) approved a change in the quarterly distribution payable under the Fund´s Managed Distribution Plan (MDP), effective with the distribution to be paid in October 2016. The Board implemented the MDP in September 2008, and believes it has served the Fund and its stockholders well; since then, the Fund has made quarterly cash distributions during 33 consecutive quarters for a total of $21.50 per share. Under the guidance of Impulsora del Fondo México, S.C., the Fund's Investment Adviser since inception in 1981, the annual return of the Fund's net asset value (NAV) has outperformed the MSCI Mexico Index, the Fund's benchmark, over the past 1, 3, 5 and 10 year periods ended August 31, 2016.

Since July 2014, the Mexican peso began a downward trend, depreciating 29.6% until August 31, 2016, affected by the overall strength of the US Dollar, which appreciated 17.9% during this period (measured by the DXY Index). Other factors that have affected the value of the Mexican peso are the following: the expected normalization of interest rates in the United States, the significant decline in the price of oil and other commodity prices, low global and domestic GDP growth and the recent decline in the outlook of Mexican debt by credit agencies. As a result, the significant unrealized capital gains in the Fund at the time of the adoption of the MDP and up to October 2014 have now reversed to unrealized losses.

Accordingly, the Board has decided to adjust the rate of the MDP from 6% to 3% of the Fund's NAV per share at the end of the previous calendar year, effective with the distribution to be paid in October 2016. The new distribution rate is better aligned with the past 5 and 10 year annual rates of return in the Fund´s NAV of 1.6% and 4.4%, respectively, as of August 31, 2016. Despite the current environment, the Board maintains a positive view on the long-term perspectives of the Mexican economy and the Fund.

Accordingly, the Board declares a distribution of $0.1415 per share to stockholders of record on October 18, 2016, which is payable in cash on October 27, 2016. This distribution is the third corresponding to the fiscal year 2016. It is estimated that this distribution will be fully comprised of return of capital.

Under the Fund's MDP, the Fund pays quarterly distributions at an annual rate of 3% of the Fund's NAV per share recorded on the last business day of the previous calendar year. The Board has ratified the continuation of the Fund's MDP during fiscal year 2016 at the revised annual rate of 3%, with distributions to be based on the Fund's NAV per share as of December 31, 2015. The remaining distribution for fiscal year 2016 is expected to be made during January 2017. The Board may amend or terminate the MDP at any time without prior notice to stockholders.

The amount of distributable income for each fiscal period depends on the aggregate gains and losses realized by the Fund during the entire year. Distributions may consist of net investment income, capital gains and return of capital, but the character of these distributions cannot be determined until after the end of the Fund's fiscal year.

However, under the Investment Company Act of 1940, the Fund is required to indicate the source of each distribution to stockholders. The following table sets forth (A) an estimate of the source of the October 2016 distribution and (B) an estimate of the source of distributions for the current fiscal year:

Distribution Estimates		October 2016				Fiscal Year-to-date (YTD)1
Source		Per Share Amount		Percent of Current Distribution		Per Share Amount		Percent of Fiscal Year Distributions
Net Investment Income		-		-		-		-
Net Realized Short-Term Capital Gains		-		-		-		-
Net Realized Long-Term Capital Gains		-		-		$0.4084		39.00%
Return of Capital		$0.1415		100.00%		$0.6389		61.00%
Total Distribution		$0.1415		100.00%		$1.0473		100.00%

Information regarding the Fund's performance and distribution rates is set forth below:

Average Annual Total Return for the 5-year period ended on August 31, 20162		2.56%
Current Annualized Distribution Rate (current fiscal year)3		5.80%
Current Fiscal Year Cumulative Total Return4		(4.90)%
Cumulative Distribution Rate (current fiscal year)5		4.83%

1 The Fund's current fiscal year began on November 1, 2015.

2 Average Annual Total Return represents the simple arithmetic average of the Annual NAV Total Returns of the Fund for the last five years. Annual NAV Total Return is the percentage change in the Fund's NAV over a year including distributions paid and assuming reinvestment of those distributions.

3 The Current Annualized Distribution Rate is the Cumulative Distribution Rate as of August 31, 2016, annualized as a percentage of the Fund's NAV at the same date.

4 Current Fiscal Year Cumulative Total Return is the percentage change in the Fund's NAV from November 1, 2015, through August 31, 2016, including distributions paid and assuming reinvestment of those distributions.

5 Cumulative Distribution Rate for the Fund's current fiscal period (November 1, 2015 through August 31, 2016) measured on the dollar value of distributions in the period as a percentage of the Fund's NAV as of August 31, 2016.

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's MDP.

The amounts and sources of distributions reported above are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report the distribution for federal income tax purposes.

For further information, contact the Fund's Investor Relations office at +52-55-9138-3350, or by email at investor-relations@themexicofund.com. 

The Mexico Fund, Inc. is a non-diversified closed-end management investment company with the investment objective of long-term capital appreciation through investments in securities, primarily equity, listed on the Mexican Stock Exchange. The Fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program.

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Fund's filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Fund undertakes no obligation to release publicly any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Mexico Fund or any other person that the events or circumstances described in such statement are material.