UBS Puerto Rico executives announced Wednesday the creation of the U.S. Municipal & Income Fund Inc., an additional investment alternative to its existing portfolio of funds.
UBS Financial Services Incorporated of Puerto Rico is distributing the fund exclusively.
“We have designed a new fund to further broaden our offering of investment alternatives to address the needs of investors in Puerto Rico,” said Carlos V. Ubiñas, CEO of UBS Financial Services Incorporated of Puerto Rico. “The fund seeks to provide monthly income through the distribution of dividends consistent with the preservation of capital.”
The fund offers tax benefits under the Puerto Rico tax code, while it invests up to 80 percent of its assets in U.S. municipal securities and at least 20 percent in Puerto Rico taxable securities, Ubiñas explained.
“It is a great addition to the family of funds,” he said.
Generally, the fund is 100 percent exempt from estate taxes in Puerto Rico and the United States. The investment advisor of the fund is UBS Asset Managers of Puerto Rico, which manages the UBS family of funds in Puerto Rico.
Meanwhile, Nuveen Asset Management, LLC will manage the U.S. municipal bond portion. A recognized leader in the U.S. municipal bond market, Nuveen is responsible for more than $90 billion of municipal assets as of Dec. 31, 2012, and draws upon its history of financing Puerto Rico’s infrastructure and essential services, dating back more than 80 years ago, the company said in a statement.
The U.S. Municipal & Income Fund invests at least 95 percent of its assets in investment grade instruments and is an open-end fund that offers daily purchases and redemptions of shares exclusively for Puerto Rico’s residents, Ubiñas concluded.