Popular Funds
Popular Funds is the family of registered closed-end investment funds managed by UBS Asset Managers of Puerto Rico as the investment adviser, with Popular, Inc. (NASDAQ: BPOP) serving as the primary distributor through its Banco Popular Puerto Rico network, providing Puerto Rico resident investors with access to investment-grade bond portfolios structured to generate income that is exempt from Puerto Rico, U.S. federal, and certain local income taxes. According to its website at popularfunds.com, the funds were established to meet the distinctive tax planning needs of Puerto Rico investors — U.S. citizens residing in Puerto Rico who are subject to Puerto Rico income tax but who qualify for significant income tax exemptions on Puerto Rico-source interest income — by constructing bond portfolios designed to maximize after-tax income within the parameters of the applicable Puerto Rico tax exemptions.
Popular Funds' investment strategies, described at popularfunds.com, center on portfolios of Puerto Rico municipal bonds, Puerto Rico agency bonds, U.S. government securities, and other fixed income instruments whose interest income qualifies for tax exemption under Puerto Rico law, managed to provide Puerto Rico investors with attractive after-tax income relative to fully taxable fixed income alternatives. The funds' advisory relationship with UBS Asset Managers of Puerto Rico brings institutional fixed income investment management expertise to the management of these specialized Puerto Rico tax-exempt portfolios, applying credit research, interest rate management, and portfolio construction skills to the universe of eligible securities that meet the funds' tax-exemption criteria. Popular, Inc.'s distribution through Banco Popular's branch network and financial advisors provides broad access to Puerto Rico's retail investor community.
Popular Funds serve Puerto Rico resident investors who seek tax-advantaged fixed income income through the distinctive tax benefits available to Puerto Rico investors holding qualifying Puerto Rico-source investments under the Puerto Rico Internal Revenue Code. According to popularfunds.com, the funds' closed-end structure provides investors with market-price liquidity through secondary trading while enabling the funds to maintain stable portfolios of longer-duration tax-exempt bonds without the liquidity management constraints of open-end mutual funds. Popular Funds' combination of Puerto Rico tax-exempt investment focus, UBS Asset Managers investment management expertise, Banco Popular distribution network, and registered closed-end fund transparency positions it as the leading vehicle for Puerto Rico resident investors seeking institutionally managed, tax-advantaged fixed income income through Puerto Rico-exempt bond portfolios.