ps00079-folleto hojas fondo montado final …...popular core equity fund quarterly report 09/30/19 -...
TRANSCRIPT
Popular Family of Funds4Q2019
POPULAR FAMILY OF FUNDS1
QUARTERLY UPDATE | FOURTH QUARTER 2019
CONTENTS:Popular Core Equity Fund 3Popular Total Return Fund 5Popular Income Plus Fund 7Popular High Grade Fixed-Income Fund 9
15%.
manages investment assets in excess of $1 billion on behalf of its clients, which
3
POPULAR CORE EQUITY FUND
FUND FACTS
Category• Large-Cap Equity
• Open-End Daily NAV3
Fund Overview4
5 The Popular Core Equity Fund is
Who Should Invest•
• Puerto Rico residents seeking long-term growth of capital
• growth and value companies concentrated in the large-cap sector
Who Should Not Invest• Investors who are not Puerto Rico residents
•
•
Advantages• Exempt from estate taxes2
• 2
• 2
Management• Popular Asset Management
Date
Class A Class C
Ticker Symbol Po PCREQ Po PCREC
6 1.57% 2.29%
Sales Charges6 Class A Class C
Maximum Sales Charge (Load) imposed on Purchases sales 5.00% 0.30%
None 1.00%
05/26/2005
15%
POPULAR CORE EQUITY FUNDQUARTERLY REPORT 09/30/19 - 12/31/19
Number of Wtd. Avg.Market Cap. Beta Dividend Yield Price to Turnover
152 $278.2 billion 1.03 1.81% 22.2 5.5 17%
Holdings5
Top Holdings as % of P
Microsoft 4.43%
Apple 4.56%
UnitedHealth Group 1.87%
3.04%
Amazon.com
Alphabet (Google)
2.74%
JP Morgan 1.92%
Johnson & Johnson 1.79%
Facebook 1.73%
Berkshire Hathaway 1.65%
Bank of America 1.47%
Top Ten 25.20%
Sectors5
P
Technology 23.9%
Financial Services 21.0%
14.6%Health Care
Consumer Discretionary 13.5%
Energy
8.7%Producer Durables
5.8%
Utilities
5.3%Consumer Staples
4.2%
Materials & Processing 3.0%
NAV Movement Combined7
05/26/2005 - 12/31/2019 Class A & C Shares
T 4 T US large-The Popular Core E Puerto Rico in 2005. Except as otherwise noted,
Returns8
Fund performance as of 12/31/2019
3-Month 1-Year
Class A Shares (POPCREQ) 9.56% 29.86%
Class C Shares (POPCREC) 9.40% 28.97%
D
Sales Charges6
Class A Class C
Maximum Sales Charge (Load) imposed on Purchases Sales 5.00% 0.30%
Maximum Deferred Sales Charge (Load) on Redemptions None 1.00%
Max.Sales Charge6
6
5.00% Class A 1.57%Class C 2.29%
4
12.57% 11.38%
11.78% 10.60%
3-Year Annualized
8.74%
7.97%
Annualized10-Year
Annualized5-Year
Sector Returns3,5
Sector Name 3-Month Return
12-Month Return Best / Worst Contributor for the Quarter
Financial Services
14.4% 50.3% Apple ↑32% Oracle Systems ↓ 3%Technology
10.4% 32.1% JP Morgan ↑20% CoreLogic ↓6%↓4%Health Care 14.4% 20.8% UnitedHealth Group ↑36% Baxter Intl
4.5% 27.9% Amazon.com ↑6% The Home Depot ↓5%Producer Durables 5.5% 29.3% United Rentals Boeing ↓
↓14%
Energy 5.5% 11.8% Halliburton Equitrans Midstream
Consumer Staples 3.5% 27.6% ↑24% Kimberly Clark 2%U 0.8% 26.4% AT&T 5% Vistra Energy
Materials & Processing 6.4% 24.6% Linde Advansix
Altria Group ↓
14%↓
↓ 22%↑
10%↑
↑31% 4%↑34%
the information provided is as of December 31, 2019.
5.006.007.008.009.00
10.0011.0012.0013.0014.0015.0016.0017.0018.0019.0020.0021.0022.0023.0024.0025.0026.0027.0028.00
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POPULAR TOTAL RETURN FUNDFUND FACTS
5
Category• Large-Cap Equity
• Open-End Daily NAV3
Fund Overview4 The
5
fund incorporated in Puerto Rico in 2001.
Who Should Invest•
• Puerto Rico residents seeking long-term growth of capital
•
Who Should Not Invest• Investors who are not Puerto Rico residents
•
•
Advantages• Exempt from estate taxes2
• 2
• 2
Management• Popular Asset Management
Date
Class A Class C
Ticker Symbol Po PTRFA Po PTRFC
6 1.10% 1.85%
Sales Charges6 Class A Class C
Maximum Sales Charge (Load) imposed on purchases 5.00% None
None 1.00%
03/27/2001
15%
As of 12/31/2019
POPULAR TOTAL RETURN FUNDQUARTERLY REPORT 09/30/19 - 12/31/19
NAV Movement9
03/27/2001 - 12/31/2019
5
4
5
open-end fund incorporated in Puerto Rico in 2001. E
Returns8
Fund performance as of 12/31/2019
3-Month 1-Year 3-Year Annualized
5-Year Annualized
10-Year Annualized
Class A Shares (POPCREQ) 6.68% 21.88% 9.66% 7.11% 8.40%
Class C Shares (POPCREC) 6.50% 21.01% 8.85% 6.32% 7.53%
December 31, 2019.
6
Max. Sales Charge6 5.00%
Expense Ratio6 Class A 1.10%Class C 1.85%
Sales Charges6
Class A Class C
Maximum Sales Charge (Load) imposed on purchases Sales 5.00% None
Maximum Deferred Sales Charge None 1.00%
6
The Popular Total Return Fund is a nondiversified
13%Developed MarketsInternational Stocks
3%Emerging MarketsInternational Stocks
Fixed Income 13%
51%8%
U.S. Large-Cap StocksU.S. Mid-Cap Stocks
U.S. Small-Cap Stocks 4%Cash & Equivalents 8%
Asset Class Returns3,5
Asset Class Index3-Month
Return12-Month
Return Best / Worst Contributors for the Quarter
U.S. Large-Cap Stocks S&P 500
Apple ↑32% McDonalds
The Home Depot
↓ 7%↑14% ↓ 5%
UnitedHealth Group
Zebra Technologies
Domino's Pizza
↑36% Boeing
Southwest Gas
UGI
↓ 14%
U.S. Mid-Cap Stocks S&P 400
↑24% ↓ 16%↑20% ↓ 10%
Fair Isaac ↑23% Cyrusone ↓ 17%
U.S. Small-Cap Stocks Russell 2000
Arrowhead Pharmaceuticals ↑ 125% Vonage Holdings ↓ 34%Medicines Company ↑70% Intelsat ↓ 69%
↑
↑
155% Shake Shack ↓
↓
39%
Developed MarketsMSCI EAFE Ireland Belgium 1%
1%Emerging Markets
MSCI Emerging Markets Hungary Chile
Barclays Aggregate
9.07% 31.49%
7.06% 26.20%
9.94% 25.52%
8.17% 22.01%
11.84% 18.42%
0.18% 8.72% Corporate
22%
19%
Microsoft
Reata Pharmaceuticals
US TreasuryFixed Income
↑
1%↑
↓ 9%
7.00 7.50 8.00 8.50 9.00 9.50
10.00 10.50 11.00 11.50 12.00 12.50 13.00 13.50 14.00 14.50 15.00 15.50 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50 20.00 20.50 21.00 21.50 22.00 22.50 23.00
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↓
POPULAR INCOME PLUS FUNDFUND FACTS
7
Category• 2
2
3• Open-End Daily NAV
Fund Overview• 4 of the Fund is to provide Puerto Rico residents with a high level of current income10 that is
consistent with the tax advantages provided by Puerto Rico Investment Companies.
•
• into credit default swaps (“CDSs”) in order to obtain exposure to the U.S. corporate debt market.11
• 2
• The Fund may issue up to 50% of its total assets in debt. This strategy, also known as leverage, may present
Who Should Invest• 2
10• Puerto Rico residents seeking a monthly dividend
• Puerto Rico residents who want exposure to the main components of the bond market including the corporate bond sector
Who Should Not Invest• Investors who are not Puerto Rico residents
•
Advantages• The Fund provides tax exempt and taxable income (taxable income is taxed at a rate of 15%)2
• Exempt from estate taxes2
Management• Popular Asset Management
Date
Class A Class C
Ticker Symbol Po PIPFA Po PIPFC
6 1.20% 2.02%
Sales Charges6 Class A Class C
Maximum Sales Charge (Load) imposed on purchases 4.00% None
None 1.00%
07/03/2007
12
15%
The Fund is a nondiversified and open-ended and redemptions.3
POPULAR INCOME PLUS FUNDQUARTERLY REPORT 09/30/19 - 12/31/19
Objective and Characteristics
NAV
A Shares C Shares
December 31, 2019 U.S. $3.80 U.S. $3.85
Qtr. High / Low U.S. $3.81 / U.S. $3.78 U.S. $3.87 / U.S. $3.84
September 30, 2019 U.S. $3.80 U.S. $3.86
July 3, 2007
Total Assets U.S. $67,495,313
Net Assets U.S. $48,856,184
Assets Leverage Ratio: 27.2%
Portfolio Characteristics
Portfolio Duration Only 3.13Portfolio Duration with Leverage 4.32
Portfolio Duration with Leverage 3.90and Hedges
Average Asset Quality AAAverage Life 6.39Market Value of Credit Default Swaps
0.00%
Expense R 6
6
Class C2.02%
Class A1.20%
A Shares C Shares
Last 3 mos. 0.79% 0.49%
Last 12 mos. 14.80% 13.43%
Since inception (Annualized) -0.39% -1.19%
Total Return8
As of 12/31/2019
Dividend Yield 10
As of 12/31/2019
Over $10.00 / Share A Shares C Shares
Current (end of Qtr.) 1.20% 1.15%
Last 3 mos. 1.20% 1.15%
Avg. since inception 5.12% 4.50%
Last 12 mos. 1.20% 1.15%
5
As of 12/31/2019
The main objective of the Fund is to provide Puerto Rico residents with a high level of current income that is consistent with the tax advantages provided
redemptions. (”CDSs”) in order to obtain exposure to the U.S. corporate debt market. The Fund invests in a combination of taxable and tax-exempt instruments. The 11
10
12tax rate applicable on the taxable income portion is 15%. The Fund may issue up to 50% of its total assets in debt. The strategy, also known as leverage, may
by Puerto Rico Investment Companies. 3
4
No less than 95% of the Fund’s assets at the time of purchase are rated investment grade. The Fund intends to enter in credit default swaps
2
The Fund is nondiversified and open-ended, providing liquidity to its investors through daily subscriptions and
involve certain additional risks. Except as otherwise noted, the information provided is as of December 31, 2019.
THE INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISK, FEES, EXPENSES AND CHARGES CAREFULLY BEFORE INVESTING. THIS INFORMATION IS CONTAINED IN THE FUND PROSPECTUS WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING. A COPY OF THE PROSPECTUS CAN BE OBTAINED FROM YOUR FINANCIAL ADVISOR OR AT HTTP://WWW.POPULAR.COM. THE PERFORMANCE DATA CALCULATION DOES NOT INCLUDE SALES LOAD. IF THE SALES LOAD WERE REFLECTED, IT WOULD REDUCE THE PERFORMANCE QUOTED. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC, HAS NO BANK GUARANTEE AND MAY LOSE VALUE. PAST PERFORMANCE DOES NOT GUARANTEE SIMILAR FUTURE RESULTS. FUND PERFORMANCE MAY CHANGE OVER TIME, AND CURRENTLY, MAY BE HIGHER OR LOWER THAN STATED. SHARES OF THE FUND MAY ONLY BE PURCHASED BY INDIVIDUALS WHO HAVE THEIR PRINCIPAL RESIDENCE IN PUERTO RICO OR ENTITIES WHOSE PRINCIPAL OFFICE AND PLACE OF BUSINESS ARE LOCATED IN PUERTO RICO. PLEASE REFER TO THE BACK OF THE BROCHURE, SPECIFICALLY TO THE LEGAL NOTES SECTION, FOR IMPORTANT DISCLOSURES REGARDING AN INVESTMENT IN ANY OF THE FUNDS.
8
69.0%
P.R. Munis - Below Investment Grade
P.R. MBS (AAA)
13.9%
P. R. Munis (BBB or better) 3.5%
10.8%U.S. Corporates (BBB or better)
U. S. Agencies (AAA) 2.8%
1.07%
September 30, 2016.
D
pen-End Daily NAV3
15%
15%
14
POPULAR HIGH GRADE FIXED-INCOME FUND14
QUARTERLY REPORT 09/30/19 - 12/31/19
5
As of 12/31/2019 As of 12/31/2019
Growth of a $10,000 Investment 13
THE INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISK, FEES, EXPENSES AND CHARGES CAREFULLY BEFORE INVESTING. THIS INFORMATION IS CONTAINED IN THE FUND PROSPECTUS WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING. A COPY OF THE PROSPECTUS CAN BE OBTAINED FROM YOUR FINANCIAL ADVISOR OR AT HTTP://WWW.POPULAR.COM. THE PERFORMANCE DATA CALCULATION DOES NOT INCLUDE SALES LOAD. IF THE SALES LOAD WERE REFLECTED, IT WOULD REDUCE THE PERFORMANCE QUOTED. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC, HAS NO BANK GUARANTEE AND MAY LOSE VALUE. PAST PERFORMANCE DOES NOT GUARANTEE SIMILAR FUTURE RESULTS. FUND PERFORMANCE MAY CHANGE OVER TIME, AND CURRENTLY, MAY BE HIGHER OR LOWER THAN STATED. SHARES OF THE FUND MAY ONLY BE PURCHASED BY INDIVIDUALS WHO HAVE THEIR PRINCIPAL RESIDENCE IN PUERTO RICO OR ENTITIES WHOSE PRINCIPAL OFFICE AND PLACE OF BUSINESS ARE LOCATED IN PUERTO RICO. PLEASE REFER TO THE BACK OF THE BROCHURE, SPECIFICALLY TO THE LEGAL NOTES SECTION, FOR IMPORTANT DISCLOSURES REGARDING AN INVESTMENT IN ANY OF THE FUNDS.
10
4
Current (end of Qtr.) 2.10%
Last 3 mos. 2.10%
Last 12 mos. 2.09%
Avg. 4.91%
Last 3 mos.
Since inception (Annualized)
-0.12%
Last 12 mos. 11.21%
3.14%
NAV
December 31, 2019 U.S. $5.99
Qtr. High / Low U.S. $6.07 / $5.99
September 30, 2019 U.S. $6.05
September 24, 2002
Total Assets U.S. $135,450,506
Net Assets U.S. $100,162,094
Assets Leverage R 25.7%
As of 12/31/2019
Dividend Yield10
Over $10.00 / share
Total Return8
5.287.14
and Hedges 5.09
Average Asset Quality AAAverage Life 8.96
Max. Sales Charge6
6
3.75%Expense 6 1.07%
Puerto capital. T 3 No less
AAA or have similar quality. Tinstruments. T 2 The Fund may issue up to 50% of its total assets in debt. The strategy, also known
12 Except as otherwise noted, the information provided is as of December 31, 2019.
10
15%
A s of 12/31/2019
U.S. Agencies / Treasures (AAA) 7.0%
U.S. Munis (A or AA) 3.8%
P.R. MBS (AAA) 46.7%U.S. Munis (AAA) 18.7%
P.R. Munis - Below Investment Grade 8.8%9.5%
U.S. Corporates (AAA) 5.5%
Sep-02
Dec-02
Mar-03Jun-03
Sep-03
Dec-03
Mar-04Jun-04
Sep-04
Dec-04
Mar-05Jun-05
Sep-05
Dec-05
Mar-06Jun-06
Sep-06
Dec-06
Mar-07Jun-07
Sep-07
Dec-07
Mar-08Jun-08
Sep-08
Dec-08
Mar-09Jun-09
Sep-09
Dec-09
Mar-10Jun-10
Sep-10
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Sep-11
Dec-11
Mar-12Jun-12
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Mar-13Jun-13
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Mar-17Jun-17
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Mar-19Jun-19
Sep-19
Dec-19
$10,000
$11,000
$12,000
$13,000
$14,000
$15,000
$16,000
$17,000
11
1.
Funds entails certain fees, charges and expenses. contained in the f . An
not registered broker-dealers. Investment products are not insured by the FDIC, are not obligations of, or guaranteed by Banco Popular de Puerto Rico and involve risks, including possible loss of principal invested.
and Popular, Inc. The brokerage products and services are offered by Popular Securities, a registered broker/
2.
3. No market presently exists for the shares of the Fund and no secondary market is expected to develop. However, the Fund has adopted a policy whereby, shares may be redeemed on any
4.
is suitable for long-term investors.
5.
6. Certain fees, charges and expenses may apply to an investment in the fund. There is no guarantee that actual expenses will be the same as those included and that various fees payable to the
7.
8.
9.
10.
any such future dividend will be the same.
11. The Fund intends to enter into CDSs. These are a type of swap contract. Use of these instruments may involve certain costs and risks such as, but not limited to; liquidity risk, interest rate risk,
12.
special risks. For more details regarding the risks associated with leverage, please see the Fund Prospectus.
13.
14.
..
.
The graph represents the overall NAV movement for all Fund Classes and does not necessarily correspond to the NAV movement of each individual Fund Class during the periods depicted in As of 12/31/2019, the NAV for Class A and C shares was U.S. $22.69, and $22.45, respectively.
The graph represents the overall NAV movement for all Fund Classes and does not necessarily correspond to the NAV movement of each individual Fund Class during the periods depicted in As of 12/31/2019, the NAV for Class A and C shares was U.S. $27.04, and $25.73, respectively.
POPULAR FAMILY OF FUNDSLEGAL NOTES
dealer and member of FINRA and SIPC. Popular Securities is a subsidiary of Popular, Inc. and an affiliate of Banco Popular de Puerto Rico. Popular, Inc. and Banco Popular de Puerto Rico are
On December 13, 2013, the Fund's shareholders approved a change in the Fund's investment objective, which allows for the investment of up to 80% of the Fund's total assets in Non-Puerto Rico Assets. On May 1, 2014, the Office of the Commissioner of Financial Institutions approved and issued an amended and restated ruling to the Fund in order to implement the change in the Fund's investment policy. Accordingly, the Fund will no longer invest 67% of its assets in certain Puerto Rico securities and 33% of its assets in certain obligations considered Non-Puerto Rico Assets. As a result, shareholders and prospective investors should consider the information set forth in the Prospectus before investing in the Fund, particularly theinformation regarding the Fund's new investment strategy.
CDSs, please see the Fund Prospectus.
POPULAR FAMILY OF FUNDSNOTES
