UBS Puerto Rico Bond Fund Losses.
Have you lost money investing in the UBS Puerto Rico Bond Funds? Unfortunately, you are not alone.
Lufrano Law, LLC is currently investigating numerous claims involving the UBS Puerto Rico Bond Funds. If you lost money investing in the UBS Puerto Rico Bond Funds, then Lufrano Law, LLC may be able to help your recover some or all of your losses through a FINRA arbitration claim agains the brokerage firm who sold you the funds.
What are the UBS Puerto Rico Bond Funds?
The UBS Puerto Rico bond funds ("Funds") are a series of closed-end bond funds underwritten and managed by UBS' Puerto Rican asset-management arm, UBS Asset Managers of Puerto Rico, and sold to UBS' clients through their brokerage firm, UBS Financial Services Inc. of Puerto Rico. The UBS Puerto Rico bond funds were also sold through other Puerto Rican brokerage firms such as Banco Popular and Banco Santander.
A closed-end bond fund is typically established as a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO) - akin to how stocks are traditionally offered to investors. However, unlike regular stocks, closed-end funds represent an interest in a specific portfolio of securities, in this case primarily Puerto Rican municipal debt, that is actively managed by an asset manager. Also, unlike a regular stock, closed-end funds cannot be traded freely on an exchange, and often have significant restrictions on the ability to redeem shares (sell).
The Funds were sold exclusively to residents of Puerto Rico who received preferential tax-treament mostly due to the funds' underlying exposure to Puerto Rican municipal bond debt. According to UBS' marketing literature, "The objective of these funds [the UBS Puerto Rico closed-end bond funds] is to provide investors with current income consistent with the preservation of capital." [emphasis added].
Common Issues Related to the UBS Puerto Rico Bond Funds
Although UBS and other Puerto Rican brokerage firms, such as Banco Popular and Banco Santander, represented to their clients that the UBS Puerto Rico bond funds' primary objective was to preserve capital, many of the bond funds suffered staggering losses in the amount of 35% to 45% declines in value in 2013 alone.
Investors in the UBS Puerto Rico bond funds suffered such massive losses for a myriad of reasons; but many investors share the same common claims:
Funds Currently Investigated
Lufrano Law, LLC is currently investigating the following UBS Puerto Rico Funds:
The securities and investment fraud attorneys at Lufrano Law have the expertise, experience and resources necessary to review, investigate and aggressively pursue your securities and investment misconduct claims. If you suffered investment damages from investing in any of the Puerto Rico Bond Funds identified above, please contact us today for a free, no-commitment consultation.
SPEAK TO AN
We are always happy to see you Visit Our Showroom
Location: 818 Harrison Street, Ste. 210, Oak Park, IL 60304
Disclaimer: This is attorney advertising. The information on this website is for general purposes only and should not be interpreted to indicate a certain result will occur in your specific legal situation. Viewing information on this website is not legal advice and does not create an attorney-client relationship. In addition, sending us information about your legal needs does not establish an attorney-client relationship. The Supreme Court of Illinois does not recognize certifications of specialties in the practice of law and the certificate, award or recognition is not a requirement to practice law in Illinois.
© Copyright 2016.