POPULAR INCOME PLUS FUND1

QUARTERLY REPORT 12/31/19 - 03/31/20

Objective and Characteristics

Portfolio Characteristics

Portfolio Duration Only 2.91Portfolio Duration with Leverage 4.11

Portfolio Duration with Leverage 4.11and Hedges

Average Asset Quality AAAverage Life 5.67Market Value of Credit Default Swaps

0.00%

Expense R 10

10

Class C2.02%

Class A1.20%

A Shares C Shares

Last 3 mos. -1.86% -1.87%

Last 12 mos. 6.71% 5.88%

Since inception (Annualized) -0.53% -1.31%

Total Return9

As of 03/31/2020

Dividend Yield2,8

As of 03/31/2020

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 5.05% 4.44%

Last 12 mos. 1.20% 1.15%

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 4

2

tax 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

6

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

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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 March 31, 2020.

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As of 03/31/2020

NAV

A Shares C Shares

March 31, 2020 U.S. $3.70 U.S. $3.75

Qtr. High / Low U.S. $3.94 / U.S. $3.56 U.S. $4.00 / U.S. $3.61

December 31, 2019 U.S. $3.80 U.S. $3.85

July 3, 2007

Total Assets U.S. $65,420,083

Net Assets U.S. $46,314,207

Assets Leverage Ratio: 28.7%

70.0%

P.R. Munis - Below Investment Grade

P.R. MBS (AAA)

12.7%

P. R. Munis (BBB or better) 3.4%

10.6%U.S. Corporates (BBB or better)

U. S. Agencies (AAA) 3.3%

POPULAR INCOME PLUS FUND1

1. T P P .sutcepsorPuerto R

Puerto Rico. An investment in the Funds entails certain fees, charges and expenses.

APopular de Puerto R

long-term investors and may not be suitable for all investors. The Fund should not be viewed as a vehicle for trading purposes. Tthe Investment Company Act of Puerto Rico and may invest up to 25% of its assets (or more in certain limited circumstances) in a single issuer. The Funds are also authorized to

T Prospectus. The Fund is not registered as an investment company with the U E Uand Exchange Commission. P Each of the Funds is an affiliate of Banco Popular de Puerto Rico, Popular Securities, and Popular, Inc. The brokerage products and services are offered by Popular Securities, a registered broker/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 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.

2. T The Fund should not be viewed as a vehicle for trading purposes. Investment in the Fund is designed primarily for and is suitable for long-term investors. Tdate. Tare likely to be greater in a Fund having a leveraged capital structure, as contemplated for the Fund. T

stock) to the shareholders of the Fund’s common stock. T

3. No market presently exist 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 business day. R Asset Value per share, as calculated for the Fund, as of the close of trading on the New York Stock E

4. The Fund intends to enter into CDSs. They are a type of swap contract. Use of these instruments may involve certain costs and risk such as, but not limited to; liquidity

5. T Please refer to the Fund’s ptax consequences of an investment in the Fund. P Popular de Puerto Rprofessional should be sought.

6. Tincluding entering into repurchase agreements. T

Prospectus.

7. T An investment in the Fund is

8. T Past dividends paid by the Fund do not guarantee that future dividends will be declared and/or that the amount of any such future dividend will be the same.

9. Performance data quoted represents past performance. Tthe performance quoted. Pstated. TThis fund was created on July 3, 2007. The data provided has not been audited. T

10. 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 fund’s service providers may be voluntarily waived. T

THIS REPORT IS EXCLUSIVELY FOR SHAREHOLDERS AND NOT FOR PUBLIC DISTRIBUTION.

. . .

risk, interest rate risk, valuation risk, counterparty risk, credit risk, correlation risk and market risk. For more information, regarding the risk associated with CDSs, pleasesee the Fund Prospectus.