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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION ------------------------------------------------
Washington, D.C. 20549 | OMB APPROVAL |
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FORM N-17f-2 | OMB Number: 3235-0360 |
| Expires: July 31, 1994 |
Certificate of Accounting of Securities and Similar | Estimated average burden |
Investments in the Custody of | hours per response 0.05 |
Management Investment Companies ------------------------------------------------
Pursuant to Rule 17f-2 [17 CFR 270.17F-2]
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| 1. Investment Company Act File Number: | Date examination completed: |
| | |
| 811-06134 | August 7, 1998 |
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| 2. State identification Number: |
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| | AL | AK | AZ | AR | CA | CO |
| |------------------|------------------|------------------|------------------|------------------|-------------------|
| | CT | DE | DC | FL | GA | HI |
| |------------------|------------------|------------------|------------------|------------------|-------------------|
| | ID | IL | IN | IA | KS | KY |
| |------------------|------------------|------------------|------------------|------------------|-------------------|
| | LA | ME | MD | MA | MI | MN |
| |------------------|------------------|------------------|------------------|------------------|-------------------|
| | MS | MO | MT | NE | NV | NH |
| |------------------|------------------|------------------|------------------|------------------|-------------------|
| | NJ | NM | NY | NC | ND | OH |
| |------------------|------------------|------------------|------------------|------------------|-------------------|
| | OK | OR | PA | RI | SC | SD |
| |------------------|------------------|------------------|------------------|------------------|-------------------|
| | TN | TX | UT | VT | VA | WA |
| |------------------|------------------|------------------|---------------------------------------------------------|
| | WV | WI | WY | PUERTO RICO |
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| | Other (specify): |
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| 3. Exact name of investment company as specified in registration statement: |
| |
| The Emerging Mexico Fund, Inc. |
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| 4. Name under which business is conducted, if different from above: |
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| 5. Address of principal executive office (number, street, city, state, zip code): |
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| 1285 Avenue of the Americas, New York, New York 10019 |
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of securities or similar investments.
INVESTMENT COMPANY
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with Rule 17f-2 under the Act and applicable
state law, examines securities and similar investments in the custody of the investment company.
ACCOUNTANT
3. Submit this Form to the Securities and Exchange Commission and appropriate state securities administrators when filing
the certificate of accounting required by Rule 17f-2 under the Act and applicable state law. File the original and one
copy with the Securities and Exchange Commission's principal office in Washington, D.C., one copy with the regional
office for the region in which the investment company's principal business operations are conducted, and one copy with
the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
SEC 2198 (11-91)
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REPORT OF INDEPENDENT ACCOUNTANTS
August 7, 1998
To the Board of Directors of
The Emerging Mexico Fund, Inc.
We have examined management's assertion about The Emerging Mexico Fund, Inc.'s
(the "Fund") compliance with the requirements of subsections (b) and (c) of Rule
17f-2 under the Investment Company Act of 1940 ("the Act") as of June 30, 1998
included in the accompanying Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940. Management is
responsible for the Fund's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Fund's compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and accordingly included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of June 30, 1998, and the period from February 28, 1998 through
June 30, 1998, with respect to agreement of purchases and sales of securities
and similar investments:
o Confirmation of all securities and similar investments owned by the Fund
and in the control of Banco Santander de Negocios Mexico, S.A. in Mexico
("BSNM"), the Fund's sub-custodian, with Indeval, Mexico, the central
depository in Mexico; such depository is not affiliated with the Fund or
BSNM. It was not possible to physically inspect or perform other procedures
directed to the Fund's securities because they are maintained by BSNM and
Indeval under an omnibus nominee account for all of BSNM's custodial
customers;
o Reconciliation of confirmation results as to all such securities and
similar investments to the books and records of the Fund and the Custodian;
and
o Agreement of three security and/or investment purchases and three security
and/or investment sales or maturities from the books and records of the
Fund to broker confirmations.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
specified requirements.
In our opinion, management's assertion that The Emerging Mexico Fund, Inc. was
in compliance with the above mentioned provisions of Rule 17f-2 of the
Investment Company Act of 1940 as of June 30, 1998 is fairly stated, in all
material respects.
This report is intended solely for the information and use of management of The
Emerging Mexico Fund, Inc. and the Securities and Exchange Commission and should
not be used for any other purpose.
PricewaterhouseCoopers LLP
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MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH
CERTAIN PROVISIONS OF THE INVESTMENT COMPANY ACT OF 1940
We, as members of management of The Emerging Mexico Fund, Inc. (the "Fund"), are
responsible for complying with the requirements of subsections (b) and (c) of
Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act of 1940. We are also responsible for
establishing and maintaining an effective internal control structure over
compliance with those requirements. We have performed an evaluation of the
Fund's compliance with the requirements of subsections (b) and (c) of Rule 17f-2
as of June 30, 1998.
Based on this evaluation, we assert that the Fund was in compliance with those
provisions of Rule 17f-2 of the Investment Company Act of 1940 as of June 30,
1998 with respect to securities and similar investments reflected in the
investment account of the Fund.
THE EMERGING MEXICO FUND, INC.
By:
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Gonzalo de Las Heras, President
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C. William Maher, Treasurer
