Municipal Bond Fund

PFMIX

Updated April 25, 2019

Objective

Seeks high current income exempt from federal income tax, consistent with preservation of capital; capital appreciation is a secondary objective

Primary Portfolio

Investment grade municipal securities, with average portfolio duration normally varying within (negative) 2 years to positive 4 years of the portfolio duration of the securities comprising the Bloomberg Barclays Municipal Bond Index

Overview

Fund Overview

High quality income potential

This fund seeks high levels of income exempt from federal, and in some cases, state taxes. It may be especially attractive to investors in high tax brackets. Capital appreciation is a secondary goal.

Why Invest In This Fund

Potential for attractive tax-efficient income

The fund pursues attractive tax-efficient income by investing across the full maturity spectrum of the national municipal bond market. It seeks to minimize exposure to the alternative minimum tax (AMT). The fund’s average portfolio duration normally varies within -2 to +4 years of the portfolio duration of the securities comprising the Bloomberg Barclays Municipal Bond Index.

Targeting opportunities in a transformed municipal market

PIMCO is uniquely qualified to respond to recent changes in the municipal bond market, with an extensive network of credit research capabilities to address concerns about creditworthiness, which is critical to municipal bond investing. Additionally, PIMCO has the market presence to provide access to the new issue and secondary markets.

Active management

PIMCO has been managing municipal bonds since 1997. Today we are among the largest investors in the market, with an expert municipal bond team constantly analyzing macro-economic, technical, and fundamental trends within the marketplace.

Our Expertise

The fund is managed by David Hammer, an executive vice president and head of municipal bond portfolio management at PIMCO. He is supported by PIMCO’s dedicated municipal bond portfolio team, robust credit resources and significant market presence.

PRIMARY BENCHMARK

Bloomberg Barclays Municipal Bond Index

PRIMARY BENCHMARK DESCRIPTION

Bloomberg Barclays Municipal Bond Index 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

12/31/1997

CUSIP

693391658

RELATED

Managers

David Hammer

Head of Municipal Bond Portfolio Management

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Yields & Distributions