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California Intermediate Municipal Bond Strategy

Strategy Overview
Municipal bonds are debt securities issued by or on behalf of state and local governments, their agencies and authorities, and other instrumentalities. The interest income of most municipal issues is exempt from Federal income taxes. Additionally, the interest income of municipal issues of a specific state will generally not be taxable for state income tax purposes for residents of that state.

On a tax-adjusted basis, municipal bonds may offer greater returns than taxable debt sectors, such as Treasuries and corporate bonds, having similar credit ratings and maturities. In addition to providing the potential for attractive tax-adjusted yields, municipal debt generally has high credit quality. During credit-sensitive time periods, such as a recession, municipal debt default frequencies tend to be lower than corporate debt. The potential for higher tax-adjusted yields than corporate bonds and low credit default risk make municipal bonds an attractive asset class.

Applications for California Municipal Bond Strategy

Investment Philosophy

Sources of Added Value

How To Invest

David Hammer

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Municipals

Fixed Income

Disclosures

Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. PIMCO strategies utilize derivatives which may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of an overall portfolio. There is no guarantee that this investment strategy will work under all market conditions and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market. Diversification does not ensure against loss. Please consult your tax and/or legal counsel for specific tax questions and concerns.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.