Shareholder Meeting Results: Majority Approves Fund Distributions in Puerto Rico

Approval of Fund Distribution in Puerto Rico

On September 26, 2025, a significant event unfolded at the special meeting of shareholders for the Tax Free Fund for Puerto Rico Residents, Inc. (TFF I), Puerto Rico Residents Tax-Free Fund, Inc. (PRRTFF I), and Puerto Rico Residents Tax-Free Fund VI, Inc. (PRRTFF VI). The meeting, held both in person in San Juan and virtually through a live webcast, gathered attention from shareholders eager to determine the future of these funds.

As the meeting commenced at 10:00 a.m. local time, approximately 67.26% (TFF I), 65.83% (PRRTFF I), and 68.29% (PRRTFF VI) of the outstanding shares were represented in the discussions, demonstrating strong shareholder engagement. The main focus of the meeting was two crucial proposals: the dissolution of each fund as an investment company, and the approval of dividend distributions from the sale of the funds' substantial securities.

The approval rates were notably high, signaling robust shareholder support for the board’s actions: 95.36% of shares voted in favor of TFF I’s dissolution, with similar support for PRRTFF I and PRRTFF VI, at 95.54% and 98.38%, respectively. Furthermore, the proposal to distribute proceeds from the sales garnered a decisive vote of 97.36% for TFF I, 95.45% for PRRTFF I, and an impressive 98.48% for PRRTFF VI.

This strong turnout and the overwhelming majority in favor of the proposals highlight the confidence shareholders have in the management’s decisions. The Boards expressed their satisfaction with the results, recognizing it as a clear endorsement from shareholders for the actions taken.

The strategy behind these proposals is grounded in a shifting financial landscape, where nimbleness and adaptability are key. By ceasing operations, each fund aims to streamline processes and focus on shareholder returns. The payouts from the securities sales will provide substantial benefits to shareholders, allowing them to reclaim their investments in a volatile market.

Investor relations representatives emphasized the importance of shareholder engagement in these decisions, which affect not merely the financial outcomes but the overarching trust and relationship between investors and fund management. This meeting serves as a case study in effective shareholder communication and governance.

The success of this special meeting and the decisions made will likely resonate within the Puerto Rican investment community, potentially influencing future financial strategies amid evolving market conditions. As the funds transition to dividends from their winding down, this will be a significant moment for shareholders and the broader investment environment in Puerto Rico.

In summary, the results reflect a collective belief in prudent management and a commitment to providing returns to investors. As companies continue to navigate complex financial terrains, this meeting stands as a testament to effective governance and shareholder democracy, reinforcing trust and accountability within investment structures.