Rochester Puerto Rico Holdings, By Fund

Many people have been curious about our exact holdings in Puerto Rico. It should be noted that not all bonds with “Puerto Rico” in the name represent direct exposure to the credit risks embodied by either the current economic and fiscal situation on-island in Puerto Rico, such as MSA-backed “tobacco bonds”. Therefore, what is displayed below is the Funds’ exposure to economic risks specifically related to Puerto Rican government-backed credits.

The following displays sector allocation (%), by market value, as of June 30, 2014.

Note:

  • Puerto Rico Electric Power Authority (PREPA) bonds are categorized in the Electric Utilities sector.
  • Puerto Rico Aqueduct & Sewer Authority (PRASA) bonds are categorized in the Sewer Utilities sector.
  • Puerto Rico Highways & Transportation Authority (PRHTA) bonds are categorized in the Highways/Commuter Facilities sector.
  • Puerto Rico Sales Tax Financing Corporation (COFINA) bonds are categorized in the Sales Tax Revenue sector.

To view these holdings, click here.

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RW2863.007.0714

Holdings are subject to change and are dollar-weighted based on total net assets. 

Fixed income investing entails credit and interest rate risks. Interest rate risk is the risk that rising interest rates, or an expectation of rising interest rates in the near future, will cause the values of a fund’s investments to decline. Risks associates with rising interest rates are heightened given that rates in the U.S. are at, or near, historic lows. When interest rates rise, bond prices fall and a fund’s share price can fall. Municipal bonds are subject to default on income and principal payments. Further, a portion of some funds’ distributions may be taxable and may increase alternative minimum tax (AMT) for investors subject to that tax; distributions from net realized capital gains are taxable as capital gains.

The funds invest in below-investment-grade debt securities, which may entail greater credit risks, as described in each fund’s prospectus. These securities (sometimes called “junk bonds”) may be subject to greater price fluctuations and risks of loss of income and principal than investment-grade municipal securities. The funds may invest substantially in municipal securities within a single state or related to similar type projects, which can increase volatility and exposure to regional issues. The funds may also invest substantially in Puerto Rico and other U.S. territories, commonwealths and possessions, and could be exposed to their local political and economic conditions.

 

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