TAX-FREE FIXED INCOME FUND V FOR PUERTO RICO RESIDENTS

FUND PERFORMANCE

A TRACK RECORD OF CONSISTENT, TAX-ADVANTAGED INCOME

The Fund’s investment objective is to provide its shareholders with current income, as consistent with the preservation of capital. In fact, since inception the Fund has distributed $8.32 per share in cumulative dividends to its shareholders.  As of June 30, 2021, the Fund's yield was 2.8%.

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THE BOARD'S OVERSIGHT OF THE FUND'S PERFORMANCE

As a result of prudent investment management, overseen by its Board, the Fund has managed significant market challenges, while maximizing dividends and net returns.

It performed well from its inception in March 2005 through 2012.  Current, special and capital gains dividends in addition to strong price performance generated gross investment returns near 70%.

The crash of the Puerto Rico municipal bond market beginning in 2013 through the end of 2015 affected all investors in these markets, as reflected in the Fund’s returns during that period.  However, under the Board’s leadership, the Fund continued to deliver monthly tax-advantaged income, conducting share repurchases to provide liquidity to selling shareholders while accreting value to those who held their investment.

Though the Puerto Rico bond markets have not yet recovered, the Fund has performed positively since the end 2015, as it has continued to provide its shareholders with monthly income.

THE FUND'S Positive outlook

Today, the Board believes the outlook for the Fund is positive. As the Puerto Rico bond market emerges, both the income and liquidity of the Fund can be expected to improve. At the current Board’s direction, the Fund continues to work tirelessly to maximize shareholder returns, including proceeding with a registration with the U.S. Securities and Exchange Commission under the Investment Company Act of 1940, which may contribute to increased liquidity and reduced market discount to NAV, paving the way for further positive returns. The Board is keenly aware of the need for liquidity in the Fund shares and will continue to make achieving this a strategic priority.