PIMCO Flexible Municipal Income Fund seeks to provide high current income exempt from federal income tax, with capital appreciation as a secondary objective. The fund seeks to opportunistically exploit structural illiquidity in the municipal market and utilizes a flexible, multi-sector tax-efficient approach across the municipal credit spectrum. Its interval fund structure, which offers periodic repurchases rather than providing daily liquidity, gives the fund the flexibility to play offense to try to capitalize on dislocations in periods of municipal market stress by executing investment strategies that may be less liquid and more suited to longer holding periods.
The fund will invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of municipal bonds and other municipal securities, the interest from which is exempt from federal income tax, in the opinion of bond counsel for the issuer at the time of issuance (or on the basis of other authority believed by PIMCO to be reliable).It also has the flexibility to invest the balance of its assets (i.e., not towards the 80% policy noted above) in securities and assets that produce taxable income, such as preferred securities that, at the time of issuance, are eligible to pay dividends that qualify for certain favorable federal income tax treatment. The fund may also invest up to 5% of its total assets in municipal closed-end funds that invest primarily in municipal bonds of the types in which it may invest directly. The fund does not target a specific duration or maturity for the municipal bonds and other securities in which it invests, and the fund’s average portfolio duration, as calculated by PIMCO, may vary significantly depending on market conditions and other factors. (See the fund’s prospectus for more detailed portfolio information.)
The fund is an interval fund and as such offers limited expected share repurchases. The fund has adopted a fundamental investment policy to make quarterly offers to repurchase between 5% and 25% of its outstanding common shares at net asset value, reduced by any applicable repurchase fee. Subject to applicable law and approval of the Board of Trustees, for each quarterly repurchase offer, the fund currently expects to offer to repurchase 10% of the fund’s outstanding common shares at net asset value. Even though the fund will make periodic repurchase offers for its outstanding common shares, as more fully described in the funds’ prospectus, investors should consider common shares of the fund to be an illiquid investment.
Quarterly with Daily Accrual
SHARE CLASS INCEPTION