Have you suffered investment losses in the UBS Puerto Rico Fixed Income Fund VI? Are you concerned about UBS Puerto Rico Fixed Income Fund VI’s current price valuation?  If so, The White Law Group may be able to help you recover your losses through a FINRA arbitration claim.

The White Law Group is investigating the liability that FINRA registered broker-dealers may have for recommending risky closed-end municipal bond fund investments like the UBS Puerto Rico Fixed Income Fund VI.

According to the Investment News, UBS’s proprietary closed-end bond funds in its Puerto Rico family of funds have suffered significant decreases in value.  The Investment News’ report quotes a UBS spokesperson that stated, “General weakness in municipal markets in the U.S. and Puerto Rico, and apprehension about the direction of interest rates have led to steep declines in Puerto Rico municipal bond and closed-end fund prices, and a lack of liquidity for these securities.”

There are certain features of closed-end funds that are distinct and make the investments potentially unsuitable for conservative and/or retired investors, including that:

–          Once a closed-end fund’s IPO is complete, fund shares are bought and sold primarily in the secondary market;

–          Closed-end funds pay a high sales load, often as high as 4.75%, on the initial offering;

–          The market price of a closed-end fund’s shares may trade at, below or above NAV (Net Asset Value).

–          Your Financial Advisor may also earn additional compensation in connection with secondary market transactions you make, sometimes as high as 3.5% of your purchase (a “mark up”), and up to 1.5% on a sale (a “mark down”).

It appears that UBS sold their UBS Puerto Rico Funds by highlighting the potential tax benefits.  According to UBS, qualifying Puerto Rico investors could “benefit from investing in securities issued by Puerto Rico Funds because they are tax exempt from Puerto Rico and United States estate and gift taxes and may provide tax-exempt or tax-advantaged income, depending on the type of fund and its investment specifications.”

UBS Puerto Rico Fixed Income Fund VI was formed in September 2008 with a stated objective of providing investors with current income, consistent with the preservation of capital.  While the Fund initially sold for $10 per share, according to Fund’s Second Quarter 2013 Quarterly Review, the NAV of the Fund is presently $9.76, representing a 0.24% loss in value to investors.

Brokerage firms and financial advisers have a fiduciary duty to perform due diligence on any investment and to insure that an investment is appropriate in light of the investor’s age, investment experience, and investment objectives. If a broker or brokerage firm fails in these responsibilities, investors may have an actionable claim to recover their investment losses in a claim through FINRA dispute resolution.

The White Law Group’s investigation into the improper sales of UBS Puerto Rico closed-end funds includes, but is not limited to, recommendations to invest in the following closed-end funds:

UBS Puerto Rico Fixed Income Fund I, Inc.

UBS Puerto Rico Fixed Income Fund II, Inc.

UBS Puerto Rico Fixed Income Fund III, Inc.

UBS Puerto Rico Fixed Income Fund IV, Inc.

UBS Puerto Rico Fixed Income Fund V, Inc.

UBS Puerto Rico Fixed Income Fund VI, Inc.

UBS Puerto Rico Investors Tax-Free Fund, Inc.

UBS Puerto Rico Investors Tax-Free Fund, Inc. III

UBS Puerto Rico AAA Portfolio Bond Fund, Inc.

UBS Puerto Rico AAA Portfolio Bond Fund II, Inc.

UBS Puerto Rico AAA Portfolio Target Maturity Fund, Inc.

UBS Tax Free Puerto Rico Target Maturity Fund Inc.

UBS Puerto Rico Mortgage-Backed & Government Securities Fund, Inc.

UBS Puerto Rico GNMA & US Government, Inc.

If you are concerned about your investment in UBS Puerto Rico Fixed Income Fund VI or another closed-end municipal bond fund investment and would like to speak to a securities attorney about whether you have a potential FINRA dispute resolution claim, please call The White Law Group’s Boca Raton, Florida office at 561-807-6804 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 Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://whitesecuritieslaw.com.