Gurtin California Municipal Opportunistic Value Fund

GCMFX

Updated July 02, 2020

Objective

The Fund seeks to provide current income exempt from regular federal income tax and California state personal income taxes while seeking to preserve capital and liquidity.

Primary Portfolio

High-grade municipal securities (maintaining an investment-grade rating from at least one of the three major credit ratings agencies or Gurtin Municipal Bond Management's credit research team) that are exempt from federal and state income tax

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Overview

Prior to 07/01/2019 the fund's benchmark was ICE BofAML 7-12 Year U.S. Miscellaneous Municipal Securities Index.

Fund Overview

Higher potential tax-free income for California investors

The Fund seeks to provide current income exempt form regular federal income tax and California state personal income taxes while seeking to preserve capital and liquidity.

Why Invest In This Fund

A flexible approach to unlocking alpha

The Fund maintains a patient, disciplined, and opportunistic approach to finding value in high quality municipal bonds (i.e. maintaining an investment-grade rating from at least one of the three major credit ratings agencies or as rated internally by the sub-adviser, Gurtin Municipal Bond Management) and has the ability to invest across the entire municipal yield curve. Duration of the Fund will vary based on where along the yield curve there is perceived value in the market.

Disciplined discovery of high-grade opportunities in volatile markets

Using proprietary quantitative and credit research, the Fund seeks to take advantage of inefficiencies within the municipal bond market to identify value in mispriced callable bonds and in credits that the firm considers to be financially resilient yet misunderstood by the market. By capitalizing on periods of market dislocation, the Fund maintains a long-term goal of capturing value, while patiently waiting for opportunities to selectively purchase high-quality bonds which meet higher yield targets.

Minimizing exposure to excess fund flows for approved investors

Available to investors only through a select group of approved advisors, the Fund seeks to avoid the potential negative effects of excess mutual fund flows on fund investors. Through an approval process that involves advisor education, the Fund is structured to support coinvestment with like-minded buy-and-hold investors who understand the fund’s disciplined management approach.

Our Expertise

The Fund is jointly managed by Jim Grandinetti, Bill Gurtin, Michael Johnson, and Myles Grenier of Gurtin Municipal Bond Management (“Gurtin”), a PIMCO company. Mr. Grandinetti, head of portfolio management, is responsible for fund management and oversight. Mr. Gurtin, Founder, oversees fund strategy and defines structure parameters. Mr. Johnson, chief risk officer, defines the strategic forward vision of the Research and Portfolio Management departments. Mr. Grenier, CFA, conducts trades and analyses. Gurtin serves as a sub-adviser to the Funds.

PRIMARY BENCHMARK

Bloomberg Barclays California Municipal Bond Index

PRIMARY BENCHMARK DESCRIPTION

The Bloomberg Barclays California Municipal Bond Index is the California component of the Bloomberg Barclays Municipal Bond Index, which consists of a broad selection of investment-grade general obligation and revenue bonds of maturities ranging from one year to 30 years. It is an unmanaged index representative of the tax-exempt bond market. The index is made up of all investment-grade municipal bonds issued after 12/31/90 having a remaining maturity of at least one year. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

03/18/2019

CUSIP

72202G323

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Managers

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 05/31/2020 2.50%
1 - Day Distribution Yield as of 07/02/2020 -
30-Day SEC Yield
Subsidized2 as of 05/31/2020 1.47%
Unsubsidized2 as of 05/31/2020 1.44%
Latest Dividend Distribution ($ Share)3 as of 06/30/2020 $0.021523460
Dividend Distribution (YTD) 4 as of 06/30/2020 $0.125655910

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

Effective as of 07/31/2019
Gross Expense Ratio 0.63%
Net Expense Ratio 0.60%
The Net Expense Ratio reflects a contractual fee waiver and/or expense reduction, which is in place through 07/31/2021 and renews automatically for a full year unless terminated by PIMCO in accordance with the terms of the agreement. See the Fund's prospectus for more information.

Prices & Performance

locked

Daily Statistics

All data as of 07/02/2020

NAV $10.24 One Day Return 0.03%
Daily Change $0.00 Daily YTD Return 0.87%

All data as of

All data as of

Performance quoted represents past performance and is not a guarantee or a reliable indicator of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than average annual returns shown. Performance quoted does not reflect any sales charges, if applicable, and performance would be lower if it did.

Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index.

There is no assurance that any fund, including any fund that has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) a fund’s total return in excess of that of the fund’s benchmark between reporting periods or 2) a fund’s total return in excess of the fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a fund’s performance as compared to one or more previous reporting periods.

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Morningstar and Lipper

disclosures

Performance figures presented reflect the total return performance after fees and reflect changes in share price and reinvestment of dividend and capital gain distributions on the payable date. All periods longer than one year are annualized.
PIMCO Gurtin California Municipal Opportunistic Value Fund was a privately offered fund managed by Gurtin (the “Private Predecessor Fund”) that was reorganized into a fund registered under the Investment Company Act of 1940 (the “1940 Act”) that was also managed by Gurtin (the “Registered Predecessor Fund,” together with the Private Predecessor Fund, the “Predecessor Funds”) on or about November 3, 2014. The Private Predecessor Fund was organized on November 16, 2009 and commenced operations on May 3, 2010 and had an investment objective and strategies that were, in all material respects, identical to those of the Registered Predecessor Fund, and was managed by Gurtin in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Registered Predecessor Fund. However, the Private Predecessor Fund was not registered as an investment company under the 1940 Act, and the Private Predecessor Fund was not subject to certain investment limitations, diversification requirements, liquidity requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986 which, if applicable, may have adversely affected its performance. The Registered Predecessor Fund commenced operations on or about November 3, 2014 and had an investment objective and strategies that were, in all material respects, identical to those of the Fund, and was managed by Gurtin in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. The Fund's performance for periods prior to the commencement of operations on March 18, 2019 is that of the Predecessor Funds. The Fund's performance for the period from May 3, 2010 to November 2, 2014 is that of the Private Predecessor Fund. The Fund's performance for the period from November 3, 2014 to March 15, 2019 is that of the Registered Predecessor Fund. The performance of the Private Predecessor Fund was calculated net of the Private Predecessor Fund's fees and expenses. The performance of the Predecessor Funds has not been restated to reflect the fees, estimated expenses and fee waivers and/or expense limitations of the Fund. If restated, the performance may have been higher or lower than the performance shown. The performance of each class of shares of the Fund will differ as a result of the different levels of fees and expenses applicable to each class of shares.
Daily YTD return is from the most recent calendar year end.
Growth of $10,000 is calculated at NAV and assumes that all dividend and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. Results are not indicative of future performance.
A rating is not a recommendation to buy, sell or hold a fund. © 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.Past performance is not a guarantee or a reliable indicator of future results.
Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Morningstar, Inc.® 2017. All rights reserved. The information contained herein: (1) is proprietary to Morningstar (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Lipper Category returns and rankings are calculated by Lipper Inc., a Reuters Company, which is a nationally recognized organization that compares the performance of mutual funds with similar investment objectives. The Category returns represent the average performance of included funds, while rankings compare an individual fund's returns to those of the other funds in its category. Both are based on total return performance, with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front- or back-end sales charges. Rankings begin with the actual share class inception. Rankings are relative to a peer group and do not necessarily mean that the fund had high total returns.

Portfolio Composition

All data as of unless otherwise stated

Maturity %

0-1 yrs 12.23
1-3 yrs 18.88
3-5 yrs 30.81
5-10 yrs 37.93
10-20 yrs 0.00
20+ yrs 0.16
Effective Maturity (yrs) 4.32

Duration in Years

Effective Duration (yrs) 4.28

Sector Allocation
Market Value %

State/Local GO 26.20
Pre-Refunded 3.92
Education Rev. 3.04
Hospital Rev. 11.94
Housing Rev. 0.00
Ind Dev/Pollution Ctrl 0.00
Lease Rev. 12.69
Power Rev. 5.81
Resource Recovery 0.44
Special Tax 3.16
Transportation 18.07