The Mexico Fund Inc. and its investment adviser have reached an agreement to reduce the company's expenses in response to fee trends in the asset management industry, according to a press release.

Impulsora Del Fondo Mexico SC, the fund's investment adviser, will waive fees and reimburse expenses to the extent necessary to keep the fund's ordinary annual expense ratio from exceeding 1.50% between April 1, 2019, and Oct. 31, 2020 — as long as the fund's net assets remain higher than $200 million.

The Mexico Fund's board believes the expense reduction effort, combined with the fund's better investment performance compared to the MSCI Mexico index, will provide investors with a competitive investment vehicle, the company said.

The agreement came in the wake of a stockholder proposal to terminate the investment advisory agreement with Impulsora Del Fondo México altogether. The proposal was shot down during a March 12 shareholder meeting, however, with only about 13% of The Mexico Fund's outstanding shares voting in favor of the move.

The Mexico Fund is a non-diversified, closed-end management investment company that provides exposure to Mexican equities.