Quarterly Notice of Portfolio Holdings

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: 7/31/2006



Date of reporting period: 4/30/2006 
 
 
Item 1. Schedule of Investments.
 
The Mexico Equity and Income Fund, Inc.
         
Schedule of Investments
  
April 30, 2006 (Unaudited)
         
MEXICO - 98.84%
  
Shares
  
Value
         
COMMON STOCKS - 95.87%
        
         
Airlines - 4.86%
        
Grupo Aeroportuario del Pacifico, S.A. de C.V. - Class B (a)
  
1,048,600
$
3,478,121
Grupo Aeroportuario del Sureste, S.A. de C.V. - Class B
  
199,900
  
773,410
       
4,251,531
Cement - 8.24%
        
Cemex, S.A. de C.V. CPO
  
598,937
  
4,047,932
Corporacion Moctezuma, S.A. de C.V.
  
500,000
  
1,039,078
Grupo Cementos de Chihuahua, S.A. de C.V.
 
650,000
  
2,114,299
       
7,201,309
Communications - 13.63%
        
America Movil, S.A. de C.V. - Class L
  
413,600
  
764,230
America Movil, S.A. de C.V. - Class L - ADR
 
72,670
  
2,682,250
America Telecom, S.A. de C.V. - Class A1 (a)
  
1,370,000
  
8,465,715
       
11,912,195
Financial Groups - 4.06%
        
Grupo Financiero Banorte, S.A. de C.V. - Class O
  
1,360,400
  
3,552,343
         
Food, Beverage & Tobacco - 9.28%
        
Alsea, S.A. de C.V.
  
758,994
  
3,223,196
Gruma, S.A. de C.V.
 
592,300
  
1,855,971
Grupo Bimbo, S.A. de C.V. - Class A
  
968,400
  
3,029,230
       
8,108,397
Housing - 14.13%
        
Consorcio ARA, S.A. de C.V.
 
225,900
  
1,194,662
Corporacion GEO, S.A. de C.V. (a)
  
1,055,500
  
3,956,873
SARE Holding, S.A. de C.V. (a)
  
2,841,306
  
3,345,129
Urbi, Desarrollos Urbanos, S.A. de C.V. (a)
  
471,300
  
3,854,717
       
12,351,381
Industrial Conglomerates - 9.22%
        
Grupo IMSA, S.A. de C.V. UBC
  
354,000
  
1,194,660
Industrias CH, S.A. (a)
  
1,340,100
  
3,680,961
Mexichem, S.A. de C.V.
 
2,327,900
  
3,186,599
       
8,062,220
Infrastructure - 12.32%
        
Carso Infraestructura y Construccion, S.A. (a)
  
4,236,800
  
3,081,657
Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)
  
1,117,650
  
3,481,958
Grupo Mexicano de Desarrollo, S.A. (a)
  
64,600
  
93,391
Impulsora del Desarrollo y el Empleo en America Latina, S.A. de C.V. (a)
  
1,009,023
  
991,929
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)
  
4,235,900
  
3,123,103
       
10,772,038
 
 
 
 
Schedule of Investments (continued)
  
April 30, 2006 (Unaudited)
         
Common Stocks (continued)
  
Shares
  
Value
         
Media - 3.07%
        
Grupo Televisa, S.A. - ADR
 
100,400
  
2,128,480
Grupo Televisa, S.A. - CPO
  
130,400
  
554,237
       
2,682,717
         
Mining - 5.18%
        
Grupo Mexico, S.A. de C.V. - Class B
  
1,292,300
  
4,526,991
         
Retailing - 11.88%
        
Grupo Elektra, S.A. de C.V.
 
331,700
  
3,577,595
Organizacion Soriana, S.A. de C.V. - Class B (a)
  
245,700
  
1,107,787
Wal-Mart de Mexico, S.A. de C.V. - Class V
  
2,000,854
  
5,703,812
       
10,389,194
         
TOTAL COMMON STOCKS (Cost $67,599,979)
      
83,810,316
         
CORPORATE BONDS - 0.83%
  
Titles
    
TVACB-04, 10.4500%, 12/15/2011 (b)
  
11,265,000
  
724,637
         
TOTAL CORPORATE BONDS (Cost $1,000,000)
      
724,637
         
TREASURY OBLIGATIONS - 1.88%
  
Shares
    
Mexican Cetes, 7.5000%, 02/15/2007
 
19,260,000
  
1,641,970
         
TOTAL TREASURY OBLIGATIONS (Cost $1,709,684)
      
1,641,970
         
INVESTMENT COMPANIES - 0.26%
        
GBM Fondo de Mercado de Dinero S.A. de C.V. SIID para Personas Fisicas (a)
  
102,772
  
227,702
         
TOTAL INVESTMENT COMPANIES (Cost $227,918)
      
227,702
         
TOTAL MEXICO (Cost $70,537,580)
      
86,404,625
         
UNITED STATES - 1.14%
        
         
INVESTMENT COMPANIES - 1.14%%
        
First American Treasury Obligations Fund, 4.0156%
$
1,000,738
  
1,000,738
         
TOTAL INVESTMENT COMPANIES (Cost $1,000,738)
      
1,000,738
         
TOTAL UNITED STATES (Cost $1,000,738)
      
1,000,738
         
Total Investments (Cost $71,538,318) - 99.98%
      
87,405,363
         
Other Assets in Excess of Liabilities - 0.02%
      
16,309
         
TOTAL NET ASSETS - 100.00%
    
$
87,421,672
 
 
 
ADR American Depositary Receipt
(a)
Non-Income Producing Security
(b)
Fair Valued Security
 
 
The cost basis of investments for federal income tax purposes at April 30, 2006 was as follows:
 
     
Cost of investments*
$71,538,318
  
Gross unrealized appreciation
17,362,090
  
Gross unrealized depreciation
(1,480,825)
  
Net unrealized appreciation
$15,881,265
  
     
*Because tax adjustments are calculated annually, the above table reflects the tax
adjustments outstanding at the Fund's previous fiscal year end. For the previous
fiscal year's federal income tax information, please refer to the Notes to Financial
Statements section in the Fund's most recent semi-annual or annual report.
 
For certain federal income tax information, as well as other information regarding securities valuation and other significant accounting policies, please refer to the footnotes to the Fund’s most recent semi-annual or annual report.
 
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 quarter 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.
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant) The Mexico Equity and Income Fund, Inc.                                      

By (Signature and Title) _/s/ Maria Eugenia Pichardo                                         
                                                                    Maria Eugenia Pichardo, President

Date        6/21/2006                                                                                                         



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title) _/s/ Maria Eugenia Pichardo                                         
                                                                   Maria Eugenia Pichardo, President

Date        6/21/2006                                                                                                         


By (Signature and Title) __/s/ Gerald Hellerman                                                    
                                                                      Gerald Hellerman, Chief Financial Officer

Date        6/22/2006