Mexico Equity and Income Fund Loses Three Directors
March 26, 2001
The closed-end Mexico Equity and Income Fund has, for the fourth time in less than a year, failed to garner enough votes to liquidate the fund. At the most recent shareholder meeting, March 16, three of the fund's directors, who promised to resign if the required two-thirds of shareholders did not approve the fund's liquidation, did in fact resign, according to Advantage Advisers of New York, the fund's U.S. adviser.
The fund continues as a closed-end fund and has one remaining independent director, Phil Goldstein, the closed-end fund shareholder activist and principal of Opportunity Partners of Pleasantville, NY. Goldstein first won election to the fund's board last year.
Goldstein said in a telephone interview that he believed other remedies besides a full liquidation of the fund would help reduce the fund's persistent double-digit discount. But the other directors did not agree, he said.
"They [the other directors] thought that the fund wouldn't be viable and fund expenses would be too high," he said. Advantage Advisers declined to comment.
Goldstein said he would be seeking regulatory approval to do some, "innovative things" aimed at reducing the discount.