NEW YORK, Oct. 9, 2013 (GLOBE NEWSWIRE) -- Law Office of Christopher J. Gray, P.C. has filed a Financial Industry Regulatory Authority ("FINRA") arbitration claim involving a retiree's investment in a closed-end Puerto Rico municipal bond fund that was structured by UBS Puerto Rico, a unit of the Swiss bank UBS AG (NYSE:UBS) . The Gray Firm is actively interviewing other investors who were sold closed-end Puerto Rico municipal bond funds and have experienced unexpected losses.
Investors have reported that financial advisors in Puerto Rico sold them UBS closed-end municipal bond funds based on the representation that the funds paid a steady yield of dividends, but were safe and that investors' principal was not at risk because of the secure municipal bonds backed by the Puerto Rico government in which the funds were invested.
However, Puerto Rico municipal bonds have been anything but secure of late. As a result, several UBS closed-end funds have lost significant value due to their leveraged exposure to the underlying municipal bonds as well as selling pressure in the market for the funds. Shares that steadily paid dividends and appeared to maintain their value for several years have suddenly collapsed in value by 50% or more. Some investors who borrowed money from credit lines offered by brokerage firms have reportedly received margin calls and even had their UBS Puerto Rico fund shares liquidated.
Clients who invested in the following funds may wish to consider attempting to recover their losses through the FINRA arbitration process: Tax-Free Puerto Rico Fund, Tax-Free Puerto Rico Fund II, Tax-Free Puerto Rico Target Maturity Fund, Puerto Rico AAA Portfolio Target Maturity Fund, Inc., Puerto Rico AAA Portfolio Bond Fund, Puerto Rico AAA Portfolio Bond Fund II, Puerto Rico GNMA & U.S. Government Target Maturity Fund, Puerto Rico Mortgage-Backed & U.S. Government Securities Fund, Puerto Rico Fixed Income Fund, Puerto Rico Fixed Income Fund II, Puerto Rico Fixed Income Fund III, Puerto Rico Fixed Income Fund IV, Puerto Rico Fixed Income Fund V, Puerto Rico Fixed Income Fund VI, Puerto Rico Short Term Investment Fund, Multi-Select Securities Puerto Rico Fund, UBS IRA Select Growth & Income Puerto Rico Fund, Puerto Rico Investors Family of Funds, Puerto Rico Investors Tax-Free Fund, Puerto Rico Investors Tax-Free Fund II, Puerto Rico Investors Tax-Free Fund III, Puerto Rico Investors Tax-Free Fund IV, Puerto Rico Investors Tax-Free Fund V, Puerto Rico Investors Tax-Free Fund VI, Puerto Rico Tax-Free Target Maturity Fund, Puerto Rico Tax-Free Target Maturity Fund II, Inc., Puerto Rico Investors Bond Fund I.
Attorneys at Law Office of Christopher J. Gray, P.C. are available to review possible cases involving UBS Puerto Rico closed-end funds. Investors may contact the firm at (866) 966-9598 or firstname.lastname@example.org for a confidential, no-obligation consultation. Additional information concerning FINRA arbitration claims is accessible at www.investorlawyers.net.
Source:Law Office of Christopher J. Gray, P.C.