Short Duration Municipal Income Fund

PSDCX

Updated May 22, 2020

Objective

Seeks high current income exempt from federal income tax, consistent with preservation of capital

Primary Portfolio

Short and intermediate maturity municipal securities (exempt from federal income tax) (0-3 yr. avg. duration)

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Overview

Fund Overview

Tax advantages with lower volatility

The fund aims to deliver tax-efficient income by investing in an array of high-quality bonds issued by municipalities across the country. It focuses on short-duration bonds with less sensitivity to interest rate changes, which helps manage volatility.

Why Invest In This Fund

Potential for attractive tax-efficient income

The fund invests in investment-grade municipal bonds that generally are not subject to federal income tax or the alternative minimum tax (AMT). Average duration is typically less than three years.

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, executive vice president and head of municipal bond portfolio management at PIMCO and Rachel Betton, senior vice president. They are supported by PIMCO’s dedicated municipal bond portfolio team, robust credit resources and significant market presence.

PRIMARY BENCHMARK

Bloomberg Barclays 1-Year Municipal Bond Index

PRIMARY BENCHMARK DESCRIPTION

The Bloomberg Barclays 1-Year Municipal Bond Index is the 1 Year (1-2) component of the Municipal Bond Index. The Index is a rules-based, market-value-weighted index engineered for the long term tax-exempt bond market. To be included in the Index, bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody's, S&P and Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be investment-grade. They must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated-date after December 31, 1990, and must be at least one year from their maturity date. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the benchmark. It is not possible to invest directly in an index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

03/28/2002

CUSIP

693389868

RELATED

Managers

Rachel Betton began managing the fund on 3 January 2020.

David Hammer

Head of Municipal Bond Portfolio Management

View Profile for David Hammer

Rachel Betton

Portfolio Manager, Municipal Bonds

View Profile for Rachel Betton

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 04/30/2020 1.16%
1 - Day Distribution Yield as of 05/22/2020 -
30-Day SEC Yield as of 04/30/2020 0.69%
Latest Dividend Distribution ($ Share)2 as of 04/30/2020 $0.007973710
Dividend Distribution (YTD) 3 as of 04/30/2020 $0.028940360

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.
2Data does not include special cash dividends.
3Data 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 1.03%
Maximum CDSC 1.00%

Prices & Performance

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Daily Statistics

All data as of 05/22/2020

NAV $8.48 One Day Return 0.13%
Daily Change $0.01 Daily YTD Return 0.40%

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. The maximum offering price (MOP) returns take into account the contingent deferred sales charge (CDSC) for Class C shares, which for this fund is 1.00%. This charge may apply to shares redeemed during the first year of ownership.

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.