Highlights

Aims to pursue high-yielding, high quality opportunities that can arise from the temporary mispricing of nonstandard municipal structures during market dislocations

Invests in complex bond structures across the yield curve, adjusting duration depending on where we believe we can find the most value given market conditions

Offers two funding options, both seeking to maximize absolute-value: Traditional, which takes a patient capital call approach, and Fully Funded, which invests more quickly and strategically repositions as appropriate opportunities arise

Strives to maximize the tax-efficiency of Municipal Opportunistic Value portfolios by providing the option of National or California state-specification

Benefits from our specialized separately managed accounts (SMA) team, which is committed to providing premier service tailored to the needs of our SMA clients

Investment Process

Utilizing our disciplined investment research process, PIMCO aims to uncover value and protect principal in clients’ municipal investment portfolios through comprehensive credit and quantitative research. Leveraging our quantitative research to calculate what we believe are more accurate valuations of non-standard bond structures, we identify attractive investment opportunities. By way of holistic fundamental credit research, we also aim to select securities possessing underlying credit strength that may be misaligned with market perception, positioning us to capture alpha while mitigating downside risk.

Municipal Bond Philosophy

Taking a 360-degree view, we seek to maximize tax-efficient income and help preserve principal by investing in high quality municipal bonds. Our muni experts identify opportunities and potential risks in the municipal bond market using fundamental bottom-up analysis informed by PIMCO’s top-down global macroeconomic outlook. By applying institutional discipline to a muni market traditionally comprised of smaller investors, we believe our muni platform is distinctly positioned to capitalize on market inefficiencies to unlock potential in clients’ muni portfolios. Supported by our specialized team of muni SMA experts, our muni SMA clients may additionally benefit from our belief that individual clients should receive individualized service.

In seeking to maximize income in line with its absolute-value mandate, PIMCO's Municipal Opportunistic Value strategy employs a patient investment approach and strategically seeks to find value across the entire municipal yield curve. Our team applies time-tested expertise managing this strategy to actively invest at times when we believe current market conditions offer a sufficient volume of investment opportunities that meet our strict yield targets. As such opportunities often arise during fleeting periods of market dislocation and illiquidity, we depend on our analytical dexterity to quickly and accurately price and assess the credit risk of the complex securities we uncover. We believe our expertise in pricing structures that may be misunderstood by the broader market makes us well equipped to quickly secure high quality bonds with an aim to capture above-market yields during volatile periods. Taking a contrarian view to municipal investing, the strategy leverages our full breadth of capabilities to identify what we believe are attractive municipal bond investments within the investment grade market that others may have missed.