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THE MEXICO FUND, INC.
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(Name of Registrant as Specified In Its Charter)
THE MEXICO FUND, INC.
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FOR: The Mexico Fund, Inc.
CONTACT: Eduardo Solano
The Mexico Fund, Inc.
Investor Relations Vice President
011-52-55-5282-8900
INVESTOR RELATIONS: Gordon McCoun
Media: Brian Maddox
Morgen-Walke Associates
212-850-5600
FOR IMMEDIATE RELEASE
INSTITUTIONAL SHAREHOLDER SERVICES RECOMMENDS INVESTORS WITHHOLD
ON LAXEY NOMINEES TO THE MEXICO FUND BOARD
-- Advises Shareholders to Approve the Mexico Fund's Performance
Fee Proposal and the Share Repurchase Program--
Washington, D.C., March 5, 2002 -- The Mexico Fund, Inc. (NYSE: MXF) today
announced that Institutional Shareholders Services ("ISS"), a provider of proxy
advisory services, has recommended to investors that they withhold their vote
for the Laxey slate of directors and noted in their report that, "By most
standards, the current board of MXF is independent. With seven directors, all
but one of whom is independent, and both auditing and nominating committees, the
fund looks to be well run...The fund and the board are structurally sound,
following `best practice' standards as described by the Investment Company
Institute."
In addition, ISS advised shareholders to vote with the Mexico Fund management
and support adding a performance fee component to the Fund's advisory fee and
adopting a share repurchase policy. They further recommended that investors vote
against a shareholder proposal to convert the Fund to an open-end investment
management company. Finally, ISS recommended that shareholders vote to terminate
the investment advisory agreement.
Juan Gallardo T., Chairman of the Board of the Mexico Fund, commented, "We are
pleased that ISS has viewed favorably the majority of the Board's proposals and
has recommended that shareholders withhold their votes on the slate of Directors
put forth by Laxey Partners. Contrary to its recent statements, Laxey has not
received the broad support of ISS. ISS has sided with the position of the Board
on the key issues of the performance fee for the investment manager, the share
repurchase program and remaining a closed-ended fund."
- more -
The Board has taken its role very seriously and has recommended that
shareholders vote with the Fund for the adoption of the performance fee and
share repurchase program. The Board believes that terminating the investment
advisory contract could be disruptive to the proposals that they have
recommended and may have an impact on the Fund's ability to move the share
repurchase policy forward in a timely manner. Based on ISS' conclusion that the
Fund has `combined reasonable performance returns with relatively low fees,' and
its support for the performance fee proposal, the Board believes that removing
the investment advisor is totally inconsistent with ISS' own analysis and
counter productive to the Board's goals of increasing value for all of our
shareholders.
For further information, contact the Fund's Investor Relations office at
011-52-55-5282-8900, 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.
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