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
Index I. MXE‘s Performance.....................................................................................3-7 II. Portfolio Construction..................................................................................8-13 III. PAM‘s contacts............................................................................................14 IV. Disclaimer....................................................................................................15 2
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 -12.11% 1 -5.57% 1 -9.26% 1 -5.81% 1 -3.42% 1 -0.13% 1 11.30% 2 MXE NAV -6.27% 3 -4.22% 3 -2.94% 3 2.67% 3 6.35% 3 6.65% 3 19.33% 3 MXE NAV Return in Mexican Pesos -11.07% 1 -5.26% 1 -10.42% 1 -6.26% 1 -3.87% 1 0.92% 1 11.61% 2 MXE Market Price -6.23% 3 -1.41% 3 -6.51% 3 -8.26% 3 -9.19% 3 -6.36% 3 -6.73% 3 MXN Appreciation/Depreciation MEXBOL Index -12.90% -10.24% -13.03% -6.72% -5.69% -1.64% 9.06% MXF NAV -12.25% -7.53% -8.95% -5.23% -5.26% -0.81% 7.82% MXF Market Price -12.00% -7.17% -10.31% -8.67% -8.24% 0.19% 8.41% MXE NAV Excess Return vs. Mexbol 79 467 377 91 227 151 224 Index in Basis points Since Inception Discount to NAV, as of Cummulative to May 31, 2018 YTD 1 Year 3 Years 5 Years 10 Years in 8/30/90 May 31, 2018. -5.26% 1 -10.42% 1 -17.62% 1 -17.90% 1 9.54% 1 2114.35% 3 MXE Common Share Market Price -13.06% MXF Common Share Market Price -7.17% -10.31% -23.81% -34.95% 1.95% 839.48% -12.74% Source: US Bancorp 1 ; Thomson 2 ; PAM 3 ; Bloomberg. **MXF: See disclaimer on page 41. Performance data represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that the investor’s shares, when sold may be worth more or less than their original cost. Performance data to the most recent month end may be obtained by calling U.S. Bancorp Fund Services, LLC, (414)765-4255, or by consulting the Fund’s web page: www.mxefund.com. Experience 3 3 3 Consistency Vision
I. MXE’s Performance Relative Sector Contribution: MXE vs. MEXBOL Index Cumulative last twelve months, as of May 31, 2018 Financials 275 bps Consumer Discretionary 247 bps 350 300 350 250 300 250 200 200 150 150 100 100 50 50 0 0 -50 -50 Materials 246 bps Telecommunication Services 141 bps 300 160 250 140 200 120 100 150 80 100 60 50 40 0 20 0 -50 Source: PAM, Bloomberg Experience 4 4 4 Consistency Vision
I. MXE’s Performance Relative Sector Contribution: MXE vs. MEXBOL Index Cumulative last twelve months, as of May 31, 2018 Real Estate 4 bps Industrials -61 bps 80 0 60 40 -50 20 0 -100 -20 -150 -40 -60 -200 Utilities -119 bps Consumer Staples -123 bps 40 20 100 0 50 -20 0 -40 -50 -100 -60 -150 -80 -200 -100 -250 -120 -300 -140 Source: PAM, Bloomberg Experience 5 5 5 Consistency Vision
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
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% 3,000 Turnover Spread 2,637 350% 2,000 1,541 300% 1,000 250% 665 477 269* 211 276 61 200% 0 150% -759 -1,000 -720 100% -2,000 -2,120 50% 0% -3,000 July-08 July-09 July-10 July-11 July-12 July-13 July-14 July-15 July-16 July-17 July.-May. '18** *Spread performance for the July 2017 through May 2018 period Source: PAM, Bloomberg ** 159.73% Cumulative Turnover Ratio for the July 2017 through May 2018 period. Experience 7 7 7 Consistency Vision
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 Telecommunication Services -209 Consumer Discretionary -328 -424 Financials Consumer Staples -1,338 Source: PAM, Bloomberg Experience 8 8 8 Consistency Vision
II. Portfolio Construction MXE Portfolio’s Total Asset Value Classified by Sector (%) As of May 31, 2018 Source: PAM, Bloomberg Experience 9 Consistency Vision
II. Portfolio Construction Active Investment Strategy As of May 31, 2018 Largest De-Indexation bps 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
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
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
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
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.com Macro Strategist & Debt Portfolio Manager destevez@paminversion.com Assistant Portfolio Manager Bank Analyst & Business Development jelizalde@paminversion.com Assistant Portfolio Manager Industrials & Airports Analyst lcalzada@paminversion.com Compliance imartin@paminversion.com Investor Relations Director Experience 14 Consistency Vision
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 October 31, 2017*) Portfolio turnover rate: 31.40% (For its fiscal year ended October 31, 2017*) Outstanding shares 15,025,910 (As of October 31, 2017*) Repurchase of stock: During fiscal year 2017, the Fund repurchased 1,900 Fund shares in the open market, equivalent to 0.01% of the Fund’s outstanding shares at the end of fiscal year 2017. Total net assets: US$ 263,243,584.00 (As of October 31, 2017*) Under the MDP, the Fund pays a quarterly amount of $0.13 per share. Accordingly, the Board declared a dividend distribution of $0.13 per share payable in cash on January 26, 2018 to stockholders of record on January 16, 2018. *Last available data The information contained herein reflects the opinion of “Pichardo Asset Management” and as such should not be taken to be fundamental analysis or a decision-making model. Neither should the information be interpreted as a solicitation, offer or recommendation to buy or sell financial securities. It is also subject to changes without prior notification and estimates cannot be guaranteed, past performance does not guarantee future performance. The registry maintained by PAM as an Independent Advisor to the securities supervisory authorities, both in Mexico and the United States, do not imply their recognition and / or approval of the information contained in this document. 15 Experience Consistency Vision
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