More problems for Puerto Rico bond investors

The mess in Puerto Rico continues to pile up.  The commonwealth has been able to stave off a bail out but the island remains indebted more than $70 billion dollars, or about 68% of its gross domestic product. Unfortunately for investors, it appears that the problems in Puerto Rico will seep in to other investments, including bond funds that invested their underlying assets in Puerto Rico bonds.

According to Morningstar and various reports, the following funds have a high concentration of their underlying investments invested in Puerto Rico bonds:

Franklin Double Tax-Free Income A (FPRTX) which has $110,282,812 invested. This is reportedly 47.2% of the total$233,553,864 investment.

Oppenheimer Rochester MD Municipal A (ORMDX) which has $23,093,065 invested. This is reportedly 36.9% if the total $62,603,594 in the fund.

Oppenheimer Rochester VA Municipal A (ORVAX) which has $40,736,112 invested. This is reportedly 33.8% of the total $120,667,805 in the fund.

Oppenheimer Rochester Fund Municipals A (RMUNX) which has $1,376,856,503 invested. This is reportedly 22.3% of the total $6,185,980,085 in the fund.

Oppenheimer Rochester LtdTerm NY MunisA (LTNYX) which has $726,558,930 invested. This is reportedly 20.6% of the total $3,515,612,163 in the fund.

Oppenheimer Rochester Michigan Muni A (ORMIX) which has $10,105,790 invested. This is reportedly 19.5% of the total $51,801,240 in the fund.

Oppenheimer Rochester Ltd Term Muni A (OPITX) which has $608,173,909 invested. This is reportedly 19.2% of the total $3,160,840,263 in the fund.

Oppenheimer Rochester AZ Municipal A (ORAZX) which has $12,059,832 invested. This is reportedly 18.8% of the total $64,312,517 in the fund.

Oppenheimer Rochester NC Municipal A (OPNCX) which has $15,577,530 invested. This is reportedly 17.3% of the total $89,810,812 in the fund.

Oppenheimer Rochester NJ Municipal A (ONJAX) which has $82,876,129 invested. This is reportedly 17.3% of the total $479,016,636 in the fund.

Oppenheimer Rochester AMT-Free NY MuniA (OPNYX) which has $190,431,569 invested. This is reportedly 16.3% of the total $1,166,986,059 in the fund.

Oppenheimer Rochester MA Municipal A (ORMAX) which has $9,850,542 invested. This is reportedly 16.1% of the total $61,339,160 in the fund.

Wells Fargo Advantage WI Tax-Free Inv (SWFRX) which has $24,420,696 invested. This is reportedly 15.3% of the total $160,092,126 in the fund.

Oppenheimer Rochester Ohio Municipal A (OROHX) which has $10,310,176 invested. This is reportedly 14.6% of the total $70,479,154 in the fund.

Oppenheimer Rochester PA Municipal A (OPATX) which has $123,108,661 invested. This is reportedly 13.9% of the total $883,561,556 in the fund.

Alpine High Yield Managed Dur Muni A (AAHMX) which has $5,835,739 invested. This is reportedly 13.8% of the total $42,105,336 in the fund.

Oppenheimer Rochester High Yld Muni A (ORNAX) which has $715,302,841 invested. This is reportedly 13.2% of the total $5,406,587,424 in the fund.

Oppenheimer Rochester Ltd Term CA MuniA (OLCAX) which has $89,003,199 invested. This is reportedly 12.9% of the total $687,146,588 in the fund.

MainStay High Yield Municipal Bond A (MMHAX) which has $215,681,931 invested. This is reportedly 12.9% of the total $1,727,077,784 in the fund.

Oppenheimer Rochester CA Municipal A (OPCAX) which has $150,523,359 invested. This is reportedly 11.4% of the total $1,328,984,067 in the fund.

The White Law Group is investigating the liability that brokerage firms may have for recommending these risky bond funds. Brokerage firms are required to perform adequate due diligence on any investment they recommend and to adequately disclose the risks of any investment. Additionally, brokerage firms are required to ensure that all investment recommendations made are suitable in light of the client’s age, investment experience, investment objectives, net worth, and income.

If you are concerned about your bond investments and would like to speak to a securities attorney about your potential to recover your investment losses, please call our Chicago office at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.  For more information on the firm, visit http://whitesecuritieslaw.com.