WEST PALM BEACH, Fla., Oct. 16, 2013 (GLOBE NEWSWIRE) -- The Florida securities arbitration lawyers at McCabe Rabin, P.A. are investigating the marketing and sales to investors of municipal bond funds holding a sizeable percentage of Puerto Rico debt, sold by brokerage firms including OppenheimerFunds, Fidelity, and UBS. Many of the funds with large holdings of Puerto Rico municipal bonds are referred to as "single state" funds that focus on one particular state. Oftentimes, the funds make no mention of Puerto Rico in their names. Specifically, the firm is investigating whether brokers made adequate disclosures to investors concerning the funds' exposure to Puerto Rico municipal bonds, the severity of the island's fiscal crisis, and the level of risk associated with holding Puerto Rico debt.
Some of the funds in question are the following:
- Western Asset New York Municipals
- Franklin Double Tax-Free Income
- Oppenheimer Rochester AMT-Free New York Municipal Fund
- Oppenheimer Rochester Arizona Municipal Fund
- Oppenheimer Rochester Limited Term New York Municipal Fund
- Oppenheimer Rochester Maryland Municipal Fund
- Oppenheimer New Jersey Municipal Fund
- Oppenheimer Rochester North Carolina Municipal Fund
- Oppenheimer Rochester Ohio Municipal Fund
- Oppenheimer Rochester Massachusetts Municipal Fund
- Oppenheimer Rochester Michigan Municipal Fund
- Oppenheimer Rochester Fund Municipals
- Oppenheimer Rochester Minnesota Municipal Fund
- Oppenheimer Rochester Intermediate Term Municipal Fund
- Oppenheimer Rochester Virginia Municipal Fund
Because Puerto Rico municipal bonds are exempt from federal, state and local income taxes, regardless of the state in which the bondholder resides, they have become a mainstay of many municipal bond fund portfolios. Unfortunately for investors in these bond funds, the island's eroding financial condition and high unemployment have caused a free fall in Puerto Rico's bond prices. The S&P Municipal Bond Puerto Rico Index has dropped nearly 22% this year. Conversely, the S&P National AMT-Free Municipal Bond Index has declined only 3.9% in the same period.
The securities arbitration attorneys at McCabe Rabin are investigating whether brokerage firms, adequately disclosed the nature and risk of investing in funds containing a significant percentage of Puerto Rico municipal bonds to potential investors.
Investors nationwide who have suffered a loss of $100,000 or more as a result of an investment in funds containing Puerto Rico municipal bonds purchased through a full service brokerage firm, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.