Short Duration Municipal Income Fund


Updated July 02, 2020


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)



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.


Bloomberg Barclays 1-Year Municipal Bond Index


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.


Monthly with Daily Accrual