This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TheStreet.com Ratings: Country Fund Favorite

Exchange-traded funds have recently become the favorites of the fund world. But investors should not forget that closed-end funds can offer the same performance figures, if not better.

TheStreet.com Ratings uses proprietary quantitative models to generate ratings on approximately 470 closed-end funds and 130 ETFs. Over a number of years, the output from our models has consistently shown that foreign/international funds have been among the top performers in either category. A subset of these foreign funds are the so-called country funds, which are distinguished by their specific focus on a particular country, as opposed to a region.

My pick among the top-ranked closed-end country funds is the Mexico Equity & Income Fund (MXE). Its returns are outstanding: year to date it has achieved 30.26%, over one year it has returned 57.95%, and its three-year record is 45.97%. The fund's sponsor is Phicardo Asset Management, and Gerald Hellerman is its manager.

The fund's top holdings include America Telecolm SA, Cemex (CX - Get Report) and Empresas ICA (ICA - Get Report).

The mystery of closed-end funds is that some discounts that exist between the share price and net asset value (NAV), or the sum of assets minus liabilities in the portfolio, do not narrow irrespective of the fund's performance. MXE is no exception, with the share price of $20.42 trading at a nearly 14% discount to its NAV of $23.73.

Since August 2005, the fund's discount has oscillated between 16% and 9%. The 9% discount was recorded in May 2006, and has since increased to the current 13.3%. Two things in particular may have caused the increase -- the market jitters earlier this year regarding emerging economies and the recent political chaos in Mexico.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CX $9.16 1.10%
ICA $3.12 2.63%
MXE $12.35 0.73%
WMT $71.86 -0.03%
AAPL $126.44 -0.13%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs