By Craig McCann, PhD and Susan Song
We’ve written extensively about the investment carnage caused by UBS Puerto Rico’s management and sales of closed end municipal bonds funds. A summary of our findings can be found here: UBS Puerto Rico’s Bond Fund Debacle: What We Know So Far .
Others will have to decide whether UBS was just incompetent or also wolfishly indifferent to Puerto Rico investors but recent evidence demonstrates that UBS Asset Managers of Puerto Rico continues to be, at least, incompetent.
The fourteen closed end funds listed in Figure 1 were solely managed by UBS Asset Managers of Puerto Rico.
Figure 1. Closed End Funds Solely Managed by UBS Asset Managers of Puerto Rico
Figure 2. Closed End Funds Co-Managed with Popular Asset Management
available here , for 1st quarter 2015 here and 2nd quarter 2015 here. Figure 3 is the cover page for the first quarter of 2015.
Figure 3. First Quarter 2015 Quarterly Review Cover Page
Figure 4a. First Quarter 2015 Quarterly Review UBS PR Fixed Income Fund VI (page 44 of 115 in 1Q2015 pdf.)
Figure 4b. Fourth Quarter 2014 Quarterly Review UBS PR Fixed Income Fund VI (page 44 of 115 in 4Q2014 pdf.)
The problem is with UBS Asset Managers of Puerto Rico since only the 14 funds solely managed by UBS Asset Managers of Puerto Rico listed in Figure 1 have these incorrect Quarterly Reviews.
Compare the data in the Quarterly Reviews for the UBS Puerto Rico Investors Tax Free Fund IV - one of the nine funds co-managed by Popular listed in Figure 2 - for the 1st quarter 2015 in Figure 5a with the data for the 4th quarter 2014 in Figure 5b. For this Popular fund, the 1st quarter 2015 data in all sections of the review are March 31, 2015 values not December 31, 2014 values.
Figure 5a. First Quarter 2015 Quarterly Review Puerto Rico Investors Tax-Free Fund IV (page 74 of 115 in 1Q2015 pdf.)
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