<p>Notes to Financial Statements--
October 31, 2001
1. Operations and Significant Accounting Policies:
The Fund is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a closed-
end management investment company. On October 16, 2000, the Fund received shareholder approval to
convert from a diversified to a non-diversified investment company under the 1940 Act. The investment objective
of the Fund is to seek long term capital appreciation through investment in securities, primarily equity, listed on the
Mexican Stock Exchange.
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period.
Actual results could differ from those estimates. The following is a summary of significant accounting policies
followed by the Fund.
Valuation of investments -- Investments traded on the Mexican Stock Exchange are valued at the closing price
reported by the Mexican Stock Exchange. The closing price represents the weighted average for the last ten
minutes of operations in any business day. Short-term securities are carried at cost, plus accrued interest, which
approximates market value. All other securities are valued in accordance with methods determined by the Board
of Directors. If the Board of Directors believes that the price of a security obtained under the Fund's valuation
procedures does not represent the amount that the Fund reasonably expects to receive on a current sale of the
security, the Fund will value the security based on a method that the Board believes accurately reflects fair value.
Security transactions and investment income -- Security transactions are recorded on the date which the
transactions are entered into (the trade date). Dividend income is recorded on the ex-dividend dat