Flexible Municipal Income Fund

PMFLX

Updated June 19, 2019

Objective

The Fund seeks to provide high current income exempt from federal income tax.

Overview

Fund Overview

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.

DIVIDEND FREQUENCY

Quarterly with Daily Accrual

SHARE CLASS INCEPTION

03/15/2019

CUSIP

72203E103

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For investors seeking tax-efficient high income and capital appreciation, MuniFlex offers a compelling new option.

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Understanding Interval Funds

A type of closed-end fund that offers to repurchase at periodic intervals a limited percentage of outstanding shares, interval funds offer a number of potential benefits to investors.

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Managers

David Hammer

Head of Municipal Bond Portfolio Management

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Rachel Betton

Portfolio Manager, Municipal Bonds

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Yields & Distributions

Historical Prices & Distributions

1 - Day Distribution Yield as of 06/19/2019 -
30 - Day SEC Yield2 as of 06/19/2019 -
30 - Day SEC Yield (Unsubsidized)2 as of 05/31/2019 2.89%
NAV Distribution Rate as of 03/29/2019 0.34%
Latest Distribution ($ Share)3 as of 03/29/2019 $0.008756500
Distribution (YTD) 4 as of 03/29/2019 $0.008756500
Distributions Footnotes & Disclosures

disclosures

1The distribution yield for monthly paying Funds is calculated by annualizing actual dividends distributed for the monthly period ended on the date shown and dividing by the net asset value on the last business day for the same period. The distribution yield for quarterly paying Funds is calculated by taking the average of the prior four quarterly distribution yields. The quarterly distribution yields are calculated by annualizing actual dividends distributed for the quarterly period ended on the most recent quarterly distribution date and dividing by the net asset value for the same date. The distribution yield for annual paying Funds is calculated by taking the annual distribution divided by the Fund’s net asset value on ex-date. The yield is annualized if the Fund incepted less than a year ago. The yield does not include long- or short-term capital gains distributions.
2The Subsidized yield includes contractual expense reimbursements and it would be lower without those reimbursements. The Unsubsidized 30 Day SEC yield excludes contractual expense reimbursements.
3Data does not include special cash dividends.
4Data is based on distributions since the most recent calendar year end and does not include special cash dividends.
The 30 day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days.

Fees & Expenses