FIRST PUERTO RICO TAX-EXEMPT TARGET MATURITY FUND III, INC.
PORTFOLIO HOLDINGS
January 31, 2016 (UNAUDITED)
Coupon
DESCRIPTION
Puerto Rico Assets: 52.53%(a)
Maturity
Date
S&P
Rating
Moody's
Rating
Puerto Rico Commonwealth, Agencies Bonds and Notes
PUERTO RICO SALES TAX FING CORP
PR S/TAX CAB-SER C
PUERTO RICO SALES TAX FING CORP
PR S/TAX CAB-SER C
PUERTO RICO SALES TAX FING CORP
PR S/TAX CAB-SER C
PUERTO RICO SALES TAX FING CORP
PR S/TAX CAB-SER C
PUERTO RICO SALES TAX FING CORP
PR S/TAX CAB-SER C
PUERTO RICO SALES TAX FING CORP
PR S/TAX SER C
PUERTO RICO SALES TAX FING CORP
PR S/TAX CAB-CONV
PUERTO RICO SALES TAX FING CORP
PR S/TAX CAB-CONV
PUERTO RICO HOUSING FIN CORP
COLL MTGE OBLG
PUERTO RICO PUBLIC FIN CORP
PUERTO RICO PUB FIN-A
PUERTO RICO CMWLTH GOVT DEV BANK
SENIOR NOTE-H
PUERTO RICO CMWLTH GOVT DEV BANK
SENIOR NOTE-H
PUERTO RICO CMWLTH GOVT DEV BANK
SENIOR NOTE-A
PUERTO RICO CMWLTH GOVT DEV BANK
SENIOR NOTE-H
0.00%
0.00%
0.00%
0.00%
0.00%
6.00%
0.00%
0.00%
0.00%
4.00%
4.50%
4.15%
5.50%
4.90%
8/1/2022
8/1/2023
8/1/2024
8/1/2025
8/1/2026
8/1/2032
8/1/2025
8/1/2026
1/1/2017
8/1/2018
8/1/2019
8/1/2017
8/1/2020
8/1/2021
CC
CC
CC
CC
CC
CC
CC
CC
AA+
D
CC
CC
CC
CC
Caa3
Caa3
Caa3
Caa3
Caa3
Caa3
Ca
Ca
NR
C
Ca
Ca
Ca
Ca
Puerto Rico Collateralized Mortgage Obligations
DEUTSCHE MORTGAGE SECURITIES
DMSI 2006-PR1 2AF VAR
DEUTSCHE MORTGAGE SECURITIES
DMSI 2006-PR1 4AF2 VAR
PRIME MORTGAGE TRUST
PRIME 2006-DR1 1A1
PRIME MORTGAGE TRUST
PRIME 2006-DR1 1A2
0.70%
0.78%
5.50%
6.00%
4/15/2036
4/15/2036
5/25/2035
5/25/2035
CCC
CCC
CCC
CCC
U.S. Assets: 47.47%(a)
U.S. Government Agencies and Instrumentalities
FEDERAL FARM CREDIT BANK
FEDERAL FARM CREDIT BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL FARM CREDIT BANK
2.90%
2.94%
2.80%
3.30%
2.72%
8/23/2021
10/3/2023
10/17/2023
12/1/2026
9/19/2022
U.S. Collateralized Mortgage Obligation
BEAR STEARNS ADJUSTABLE RATE
2.90%
1.25%
BSARM 2004-8 14A1 VAR
U.S. Treasury Notes / Bills
US TREASURY N/B
U.S. State and Municipal Obligations
ILLINOIS ST
ILLINOIS ST
NEW HAMPSHIRE ST TURNPIKE SYS
PHILADELPHIA PA AUTH FOR INDLD
PHILADELPHIA PA AUTH FOR INDL
UNIV OF CALIFORNIA CA RGTS MED
TOTAL
DESCRIPTION
IL ST-BAB-3-AGM-CR
IL ST-TXB-3-BABS
NH TPK TXB-A-BABS
PHILA AUTH INDL-REF
PHILADELPHIA DEV-B-ZE
UNIV CA-BABS
Face/
Shares
Amount
Fair Value
%
Unrealized
appreciation /
(depreciation)
950,000
1,430,000
1,980,000
19,120,000
13,880,000
15,125,000
9,235,000
6,130,000
400,000
500,000
925,000
85,000
1,880,000
1,690,000
73,330,000
343,929
467,238
587,090
5,164,694
3,544,536
8,955,513
3,670,913
2,375,375
391,224
73,750
258,917
24,727
524,802
470,074
26,852,779
0.67%
0.90%
1.14%
9.99%
6.86%
17.33%
7.10%
4.60%
0.76%
0.14%
0.50%
0.05%
1.02%
0.91%
51.96%
(298,967)
(444,041)
(601,100)
(5,640,012)
(3,841,990)
(6,169,488)
(5,081,472)
(3,510,497)
(658)
(383,689)
(636,427)
(58,827)
(1,326,508)
(1,164,265)
(29,157,939)
B3
B3
B2
B2
41,893
268,669
24,460
9,239
344,261
39,955
222,451
24,646
9,373
296,424
0.08%
0.43%
0.05%
0.02%
0.57%
(1,938)
(46,067)
186
134
(47,685)
AA+
AA+
AA+
AA+
AA+
Aaa
Aaa
Aaa
Aaa
Aaa
140,000
325,000
1,000,000
2,500,000
530,000
4,495,000
148,739
342,828
1,052,715
2,682,410
554,300
4,780,992
0.29%
0.66%
2.04%
5.19%
1.07%
9.25%
7,937
17,960
57,256
189,634
24,628
297,415
11/25/2034
BB-
Caa2
40,143
40,143
38,354
38,354
0.07%
0.07%
11/30/2018
AA+
Aaa
1,000,000
1,000,000
1,008,125
1,008,125
1.95%
1.95%
926
926
5.83%
4/1/2021
5.95% 4/1/2022
6.26% 11/1/2029
3.96%
4/15/2026
0.00%
4/15/2018
6.46% 5/15/2029
AA
AA
A+
A+
A+
AA-
A2
A2
A1
A2
A2
Aa3
295,000
5,000,000
930,000
5,000,000
3,760,000
2,685,000
17,670,000
326,028
5,357,952
1,032,998
5,112,450
3,555,118
3,320,809
18,705,355
0.63%
10.37%
2.00%
9.89%
6.88%
6.43%
36.19%
26,786
463,857
100,920
112,450
151,236
625,236
1,480,485
96,879,404
51,682,029
100.00%
(27,428,548)
(1,749)
(1,749)
FIRST PUERTO RICO TAX-EXEMPT TARGET MATURITY FUND III, INC.
PORTFOLIO HOLDINGS
January 31, 2016 (UNAUDITED)
DESCRIPTION
P.R. Obligations
Sales Tax Financing
Housing Finance Corp
Public Finance Corp.
GDB Notes
CMOs
Total
Maturity
Date
Coupon
Portfolio Holdings Summary
U.S. Obligations
48.58%
Federal Home Loan Bank
0.76%
Federal Farm Credit Bank
0.14%
CMO
2.47%
Treasury Notes / Bills
0.57%
State and Municipals
52.53%
Total
S&P
Rating
Moody's
Rating
Face/
Shares
Amount
Fair Value
%
Credit Quality
S&P
7.23%
2.02%
0.07%
1.95%
36.19%
47.47%
AA+
AA
AAA+
BBCCC
CC
D
Unrealized
appreciation /
(depreciation)
Moody's
11.96%
11.00%
6.43%
18.77%
0.07%
0.57%
51.06%
0.14%
Aaa
Aa3
A1
A2
B2
B3
Ca
Caa2
Caa3
C
NR
11.20%
6.43%
2.00%
27.77%
0.07%
0.51%
14.17%
0.07%
36.89%
0.14%
0.76%
* Holdings are subject to change without notice and may not be representative of current or future allocations.
(a) Percentages are based on fair value.
Before you invest, you should review the Fund’s prospectus, which contains more information about the Fund and its risks. Yo u can find the Fund’s prospectus and other information
about the Fund including its most recent reports to shareholders, online at www.santandersecurities.com. You can also get th is information at no cost by calling 1(888) 756-0003 or
from your financial consultant.
The Fund is a non-diversified investment company registered under the Puerto Rico Investment Companies Act. An investment in the Fund is not equivalent to an investment in the
underlying securities of the Fund. The shares are offered for sale exclusively to individuals whose main residence is located in Puerto Rico and persons, other than individuals, whose
principal office and place of business are located in Puerto Rico. The shares may be offered for sale and sold only in Puerto Rico. Past performance is not predictive of future
performance. An investment in the Fund is not a deposit or an obligation of a bank (including Banco Santander Puerto Rico), a nd is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. An investment in the shares of the Fund is designed and is suitable on ly for long-term investors, and may not be suitable for
all investors. Investors in the shares should not view the Fund as a vehicle for trading purposes. An investment in the Fund is suitable only for investors who can bear the risks
associated with the limited liquidity, and potential illiquidity, of the shares. The Fund is subject to risks that may resul t in a loss of all or part of your investment in the Fund. The
Fund’s shares have limited liquidity, and may not be readily marketable in certain situations. The risk of illiquidity will b e particularly acute in the event that the Fund’s net asset value
deteriorates rapidly, including as a result of declines in the value of Puerto Rico fixed -income securities from downgrades to their credit rating or otherwise. The shares of the Fund
are subject to market risk, including the loss of principal. The investment return and principal value of an investment in t he Fund will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Market volatility can significantly impact short -term performance. As a non-diversified investment company, the Fund may invest a greater
portion of its assets in a single issuer or asset class and as such may be susceptible to loss due to adverse occurrences aff ecting that issuer or asset class. The Fund’s utilization of
leverage creates certain additional risks to investors including higher volatility in the net asset value and market value of its shares of common stock and in the dividend rate paid by
the Fund on its shares. Please see “Risk Factors and Special Considerations” and “Risk Factors and Special Considerations of Leverage” in the prospectus for a more detailed description
of the Fund’s risks.
The Fund may enter into various types of transactions with affiliated parties as described in the Fund’s prospectus. All tran sactions with affiliates are subject to procedures adopted by
the Board of Directors from time to time and, particularly, the independent directors of the Board, in an effort to address p otential conflict of interest. There is no assurance that the
procedures will be effective. Any claim against the Fund or its directors and officers by any investor in the securities issu ed by the Fund will be subject to the jurisdiction of the courts
of the Commonwealth of Puerto Rico.
NOT FDIC INSURED | NOT BANK GUARANTEE | MAY LOSE VALUE | FOR RESIDENTS OF PUERTO RICO ONLY