Investment fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses in U.S. mutual funds that contained Puerto Rico bonds. Massachusetts securities regulators are currently investigating these investments and claim that many investors may have been unaware of the exposure to the Puerto Rico fiscal crisis.
According to securities arbitration lawyers, many state-specific municipal bond funds contained Puerto Rico debt and, as a result, other investigations may ensue. According to Massachusetts Secretary of the Commonwealth, William Galvin, the investigation includes three large fund managers: OppenheimerFunds (a unit of MassMutual Life Insurance Co.), UBS Financial Services and Fidelity Investments. The investigation is regarding how these managers sold and disclosed the risk of mutual funds containing heavy concentrations of the Puerto Rico bonds.
“Puerto Rico is currently on the verge of insolvency and many of its obligations are at or near junk rating, thus the risks associated with its municipal debt obligation are disproportionately high,” Galvin notes.
Investment fraud lawyers say the bonds are attractive to managers of mutual funds because they are state-, federal- and local income tax-exempt in all U.S. states. Some of the funds currently being investigated by securities fraud attorneys are:
- Puerto Rico Mortgage Backed & US Govt. Fund
- Puerto Rico Fixed Income Funds I-VI
- Puerto Rico AAA Portfolio Bond Funds I and II
- Puerto Rico AAA Portfolio Target Maturity Fund
- Puerto Rico Investors Bond Fund II
- Puerto Rico Investor’s Tax-Free Funds I-VI
- Puerto Rico GNMA &US Gov. Target Maturity Fund
- Puerto Rico Tax-Free Target Maturity Fund I and II
- Tax-Free Puerto Rico Target Maturity Fund
- Tax-Free Puerto Rico Funds I and II
If you suffered significant losses in UBS Puerto Rico closed-end bond funds through OppenheimerFunds, UBS Financial Services, Fidelity Investments or another fund manager, you may be able to recover your losses through FINRA securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray at (866) 966-9598, or by e-mail at newcases@investorlawyers.net for a no-cost, confidential consultation.