POPULAR HIGH GRADE FIXED-INCOME FUND1

QUARTERLY REPORT 12/31/20 - 03/31/21

September 24, 2002

Total Assets U.S. $121,326,974

Net Assets U.S. $91,637,797

Assets Leverage Ratio 24.1%

NAV

March 31, 2021 U.S. $6.00

Qtr. High / Low U.S. $6.20 / $5.99

December 31, 2020 U.S. $6.18

Dividend Yield2,7

Over $10.00 / share A s of 03/31/2021

Current (end of Qtr.) 2.10%

Last 3 mos. 2.10%

Last 12 mos. 2.10%

Avg. 3.54%

Total Return8

As of 03/31/2021

Last 3 mos. -2.07%

Last 12 mos. 4.37%

3.17%

6

As of 03/31/2021 As of 03/31/2021

Growth of a $10,000 Investment 9

Objective and Characteristics

Portfolio Characteristics

since inception

Since Inception (Annualized)

Portfolio Duration Only 5.24Portfolio Duration with Leverage 6.94Portfolio Duration with Leverage and Hedges 6.94

Average Asset Quality AAAverage Life 8.97

Max. Sales Charge10

10

3.75%Expense Ratio10 1.07%

The main objective of the Fund is to provide Puerto Rico resident-investors with a high level of current monthly income, consistent with the preservation of capital. 3

than 90% of the Fund’s assets at the time of purchase are rated AAA or have similar quality. The Fund’s invests in a combination of taxable and tax-exempt The Fund is a nondiversified and open-ended fund wich provides liquidity to its investors through daily subscriptions and redemptions. No less

instruments. The tax rate applicable on the taxable income portion is 15%. 4

2

The Fund may issue debt up to 50% of its total assets in debt. The strategy, also know 5 as leverage, may involve certain additional risks. Except as otherwise noted, the information provided is as of March 31, 2021.

U.S. Agencies / Treasures (AAA) 8.2%

U.S. Munis (From BBB to AA) 4.3%

P.R. MBS (AAA) 42.6%U.S. Munis (AAA) 19.9%

P.R. Munis - Below Investment GradeP.R. Munis - (AA or better)

10.5%10.5%

U.S. Corporates (AAA) 4.0%

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

$17,000

$18,000

March-03

March-04

March-05

March-06

March-07

March-08

March-09

March-10

March-11

March-12

March-13

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March-15

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March-18

March-19

March-20

March-21

1. T 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.S. Securities and Exchange Commission, and the Shares offered by the Fund are also not registered with the U.S. Securities and Exchange Commission. Please consult with your broker to determine whether an investment in the Funds is suitable for your investment goals and objectives. 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 registeredbroker/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.

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 the information regarding the Fund's new investment strategy.

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

5. Tincluding entering into repurchase agreements. T

Prospectus.

6. T An investment in the Fund is

7. 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.

8. Performance data quoted represents past performance. Tperformance quoted. PT This fund was created on September 24, 2002. The data provided has not been audited. T

9. 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.

POPULAR HIGH GRADE FIXED-INCOME FUND1

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