Funds Containing Puerto Rico Municipal Bonds

Puerto Rico

McCabe Rabin, P.A. is investigating how brokerage firms marketed and sold bond funds containing a significant amount of Puerto Rico debt to potential investors. Some of the brokerage firms who include Puerto Rico debt in their bond funds are OppenheimerFunds, Fidelity, and UBS. Many of the funds in question are “single state” funds that focus on one particular state and make no mention of Puerto Rico in the name.

Some of the funds include, but are not limited to, the following:

  • Oppenheimer Rochester AMT-Free New York
  • Oppenheimer Rochester Arizona
  • Oppenheimer Rochester Limited Term New York
  • Oppenheimer Rochester Maryland
  • Oppenheimer New Jersey
  • Oppenheimer Rochester North Carolina
  • Oppenheimer Rochester Ohio
  • Oppenheimer Rochester Massachusetts
  • Oppenheimer Rochester Michigan
  • Oppenheimer Rochester Fund Municipals
  • Oppenheimer Rochester Minnesota
  • Oppenheimer Rochester Intermediate Term Municipal Fund
  • Oppenheimer Rochester Virginia
  • Western Asset New York Municipals
  • Franklin Double Tax-Free Income

Puerto Rico municipal bonds are popular with many municipal bond fund managers because they are exempt from federal, state and local income taxes. Unfortunately for the bond funds’ investors, the island’s crumbling financial condition and high unemployment rate have caused a free fall in the underlying bonds’ prices. The S&P National AMT-Free Municipal Bond Index has declined 3.9% this year, while the S&P Municipal Bond Puerto Rico Index has dropped nearly 22%.

The securities arbitration attorneys at McCabe Rabin are investigating whether brokerage firms such as Oppenheimer, Fidelity, and UBS made adequate disclosures to investors concerning their funds’ exposure to Puerto Rico municipal bonds, the severity of the island’s fiscal crisis, and the level of risk associated with holding Puerto Rico debt.

Investors nationwide who purchased a municipal bond fund containing Puerto Rico debt, such as the funds identified above, from a full-service brokerage firm, and who have lost $100,000 or more, and who may have a FINRA arbitration claim, may contact McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

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