M&A - Puerto Rico Residents Bond Fund I
Form Type: N-14 8C
Filing Date: 2025-05-09
Corporate Action: Merger
Type: New
Accession Number: 000119312525116210
Filing Summary: Puerto Rico Residents Bond Fund I has initiated a registration statement regarding a series of proposed reorganizations involving several Target Funds to consolidate their assets into the Acquiring Fund, Puerto Rico Residents Bond Fund I. This includes asset transfers from Target Funds to the Acquiring Fund in exchange for shares, leading to the liquidation and termination of the Target Funds. Shareholders will gain the ability to directly redeem shares at net asset value (NAV) through bi-annual repurchase offers. Proposed changes involve an increase in the advisory fee from 0.30% to 0.60% of the Fund’s average weekly gross assets, although further details on comparative fees are provided. The Board unanimously recommends voting in favor of the proposals as they align with the shareholders’ best interests. The meeting is set for 2025-05-09, where votes will be collected virtually to decide on these mergers and the updated advisory contract, which would maintain the same terms except for the advisory fees and is aimed at optimizing the funds’ management efficiency and costs.
Additional details:
Target Fund Names: Puerto Rico Residents Tax-Free Fund, Inc., Puerto Rico Residents Tax-Free Fund II, Inc., Puerto Rico Residents Tax-Free Fund III, Inc., Puerto Rico Residents Tax-Free Fund IV, Inc., Puerto Rico Residents Tax-Free Fund V, Inc., Puerto Rico Residents Tax-Free Fund VI, Inc.
Acquiring Fund Name: Puerto Rico Residents Bond Fund I
Repurchase Program Details: bi-annual repurchase offers at the then-current net asset value per share (less a fee not exceeding 2%)
Investment Advisory Fee Current: 0.30% of average weekly gross assets
Investment Advisory Fee Proposed: 0.60% of average weekly gross assets
Shareholder Meeting Date: 2025-05-09
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