Mexico Equity and Income Funds




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: 7/31/2004



Date of reporting period: 10/31/2004



 
     
 


 
Item 1. Schedule of Investments.
 
 

 
THE MEXICO EQUITY AND INCOME FUND, INC.
      
 
 
      
 
Schedule of Investments (unaudited)
    
October 31, 2004
   
 
    
 
MEXICO - 97.14%
Shares
  
Value
         
 
COMMON STOCKS - 90.80%
     
         
 
Communications - 15.83%
      
 
America Movil, S.A. de C.V. - Class L
1,173,300
 
$ 2,591,225
 
America Movil, S.A. de C.V. - Class L ADR
42,300
 
1,861,200
 
Telefonos de Mexico, S.A. de C.V. - Class L
640,300
 
1,098,744
 
Telefonos de Mexico, S.A. de C.V. - Class L ADR
18,302
 
626,660
       
6,177,829
         
 
Cement - 3.91%
      
 
Cemex, S.A. de C.V. CPO
264,042
 
1,526,637
         
 
Construction - 8.63%
      
 
Empresas ICA Sociedad Controladora, S.A. de C.V.*
4,193,200
 
1,465,270
 
SARE Holding, S.A. de C.V. - Class B*
610,900
 
375,034
 
Urbi, Desarrollos Urbanos, S.A. de C.V.*
410,200
 
1,529,080
       
3,369,384
         
 
Financial Groups - 4.76%
      
 
Grupo Financiero Banorte, S.A. de C.V. - Class O
395,300
 
1,857,775
         
 
Food, Beverage, and Tobacco - 17.53%
      
 
Alsea, S.A. de C.V.
795,150
 
1,539,589
 
Fomento Economico Mexicano, S.A. de C.V. ADR
4,550
 
200,655
 
Fomento Economico Mexicano, S.A. de C.V. UBD
157,000
 
694,011
 
Gruma S.A. - Class B
1,378,500
 
2,749,171
 
Grupo Embotelladoras Unidas, S.A. de C.V. - Class B
381,900
 
1,655,720
       
6,839,146
         
 
Industrial Conglomerates - 8.08%
      
 
Alfa, S.A. - Class A
486,800
 
1,893,129
 
Grupo IMSA, S.A. de C.V. UBC
30,000
 
72,940
 
Hylsamex, S.A. de C.V. - Class B*
89,900
 
196,751
 
Hylsamex, S.A. de C.V. - Class L*
376,479
 
824,270
 
Industrias CH, S.A. - Class B*
25,900
 
167,310
       
3,154,400
         
 
 

 
     
 

 
 
THE MEXICO EQUITY AND INCOME FUND, INC. 
      
         
 
Schedule of Investments - (continued) (unaudited)
    
October 31, 2004
         
   
Shares
  
Value
         
 
Media - 6.42%
      
 
Grupo Televisa, S.A. ADR
13,000
$ 715,000
 
Grupo Televisa, S.A. CPO
650,500
1,791,974
       
2,506,974
         
 
Mining - 7.61%
      
 
Grupo Mexico, S.A. de C.V. - Class B*
718,400
2,968,847
         
 
Paper & Related Products - 1.29%
      
 
Kimberly-Clark de Mexico, S.A. de C.V. - Class A
168,400
504,057
         
 
Retailing - 15.35%
      
 
Controladora Comercial Mexicana S.A. de C.V. UBC
650,000
699,443
 
Grupo Elektra, S.A. de C.V.
236,900
1,867,633
 
Grupo Gigante, S.A. de CV - SER*
916,000
595,695
 
Wal-Mart de Mexico, S.A. de C.V. - Class V
863,984
2,828,067
       
5,990,838
         
 
Specialty Stores - 1.39%
      
 
Corporativo Fragua, S.A. - Class B
173,100
540,339
         
         
 
TOTAL COMMON STOCKS (Cost $29,775,561)
    
35,436,226
 

 
     
 

 
 
THE MEXICO EQUITY AND INCOME FUND, INC. 
      
         
 
Schedule of Investments - (continued) (unaudited)
    
October 31, 2004
         
 
CORPORATE BONDS - 2.20%
Titles
  
Value
         
 
Hylsamex, S.A. de C.V., 8.7500%, 03/08/2009
14,015
 
$ 430,064
 
Hylsamex, S.A. de C.V., 8.7500%, 09/08/2009
14,015
 
430,064
 
TOTAL CORPORATE BONDS (Cost $738,530)
    
860,128
         
 
INVESTMENT COMPANIES - 4.02%
Shares
    
         
 
GBM Fondo Corporativo de Liquidez Inmediata S.A. de C.V.
      
 
SIID para Personas Morales - Class B*
11,459,494
 
1,569,219
 
TOTAL INVESTMENT COMPANIES (Cost $1,572,182)
      
         
 
STRUCTURED EQUITY NOTE - 0.12%
Titles
    
         
 
Mexico Bolsa IPC Index* (Cost $44,271)
50
 
45,894
         
         
 
TOTAL MEXICO
    
37,911,467
         
   
Principal
    
 
UNITED STATES - 2.26%
Amount
  
 
         
 
CORPORATE BOND - 2.06%
      
         
 
Monterrey Power S.A. de C.V., 9.6250%, 11/15/2009
      
 
(Cost $721,217)
$ 675,000
$ 803,149
         
 

 
     
 

 
THE MEXICO EQUITY AND INCOME FUND, INC. 
      
         
 
Schedule of Investments - (concluded) (unaudited)
    
October 31, 2004
         
 
INVESTMENT COMPANY - 0.20%
Shares
  
Value
         
 
First American Treasury Obligations Fund - Class A
      
 
(Cost $79,871)
79,871
 
$ 79,871
         
 
TOTAL UNITED STATES
    
883,020
         
 
TOTAL INVESTMENTS - 99.40% (Cost $32,931,632)
    
38,794,487
         
 
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.60%
    
231,642
         
 
TOTAL NET ASSETS - 100.00%
    
$ 39,026,129
         
 
Footnotes and Abbreviations
      
 
* - Non-Income producing security.
     
 
ADR - American Depository Receipts.
      
         
         



 
     
 

 
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 half-year 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.