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Municipal Bonds at PIMCO

Unlock the potential of municipal bonds

Explore PIMCO’s wide range of tax-advantaged strategies to help you earn income and keep more of it

Muni Managed Account Strategies

The Difference Is Discipline

The municipal bond market is highly inefficient because it’s dominated by smaller investors. By applying institutional discipline to this market, we believe we are better equipped to help clients meet a range of objectives from capital preservation to maximized tax-exempt income. Additionally, we offer select separately managed accounts that can be customized for:

  • location_on State Specificity
  • verified_user Tax Loss Harvesting
  • eco ESG/Impact Investing

We recently acquired Gurtin Municipal bond Management, a specialized muni bond and SMA manager, as the latest step in a multi-year expansion of our municipals platform. Learn more.

PIMCO Flexible Municipal Income Fund

One of the first municipal interval funds in the industry, the PIMCO Flexible Municipal Income Fund (“MuniFlex”) aims to deliver higher after-tax yield than traditional municipal strategies.

Learn more
  • PMF

    Municipal Income Fund

    Morningstar Category
    Muni National Long
    5-star Rating

    Overall Morningstar Rating™ among 58 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund
  • PML

    Municipal Income Fund II

    Morningstar Category
    Muni National Long
    5-star Rating

    Overall Morningstar Rating™ among 58 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund
  • PMX

    Municipal Income Fund III

    Morningstar Category
    Muni National Long
    5-star Rating

    Overall Morningstar Rating™ among 58 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund
  • PCQ

    California Municipal Income Fund

    Morningstar Category
    Muni California Long
    5-star Rating

    Overall Morningstar Rating™ among 15 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund
  • PCK

    California Municipal Income Fund II

    Morningstar Category
    Muni California Long
    5-star Rating

    Overall Morningstar Rating™ among 15 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund
  • PZC

    California Municipal Income Fund III

    Morningstar Category
    Muni California Long
    5-star Rating

    Overall Morningstar Rating™ among 15 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund
  • PNF

    New York Municipal Income Fund

    Morningstar Category
    Muni New York Long
    4-star Rating

    Overall Morningstar Rating™ among 17 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund
  • PNI

    New York Municipal Income Fund II

    Morningstar Category
    Muni New York Long
    5-star Rating

    Overall Morningstar Rating™ among 17 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund
  • PYN

    New York Municipal Income Fund III

    Morningstar Category
    Muni New York Long
    5-star Rating

    Overall Morningstar Rating™ among 17 funds. Based on risk-adjusted returns as of 10/31/2020

    View fund

PIMCO's Municipals Platform

Backed by the power of one of the world’s premier fixed income managers

$50B

In firm-wide dedicated municipal bond holdings

30+

Dedicated municipal bond team members

21 years

Experience managing municipal bond assets

65+

Firm-wide credit analysts supporting dedicated municipal team

Viewpoints

Munis May Not Be As Niche As You Think

Evaluating municipal bonds in isolation may be an incomplete approach. David Hammer, head of municipal bond portfolio management, explains how macroeconomic views can meaningfully contribute to the assessment of individual municipal bonds as well as the asset class as a whole.

Resources

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Learn More About Our Municipal Strategies

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Disclosures

All data as of 30 September 2020, unless otherwise indicated. Includes assets and employee data from Gurtin acquisition in January 2019

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative. Click here for a complete list of the PIMCO Funds prospectuses and summary prospectuses. For ETFs click here. Please read them carefully before you invest or send money.

Managed Accounts: The managed account strategies described in this material are offered by Pacific Investment Management Company LLC and Gurtin Municipal Bond Management, (a PIMCO Company), and are available exclusively through financial professionals. Managed accounts have a minimum asset level and may not be suitable for all investors. For more information about this product, contact your financial advisor. Financial professionals seeking more information should contact their managed accounts department or call their PIMCO representative.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the ETF. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. Shares of an ETF are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Investment policies, management fees and other information can be found in the individual ETF’s prospectus. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions. Due to the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment returns. Investment in Fund shares may not be advisable for investors who expect to engage in frequent trading. Current holdings are subject to risk. Holdings are subject to change at any time. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield and Net Asset Value (NAV) will fluctuate with changes in market conditions. Investments may be worth more or less than the original cost when redeemed. Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager’s investment decisions might not produce the desired results. ETF shares may be bought or sold throughout the day at their market price on the exchange on which they are listed. However, there can be no guarantee that an active trading market for PIMCO ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. Premiums (when market price is above NAV) or discounts (when market price is below NAV) reflect the differences (expressed as a percentage) between the NAV and the Market Price of the Fund on a given day, generally at the time the NAV is calculated. A discount or premium could be significant. Data in chart format displaying the frequency distribution of discounts and premiums of the Market Price against the NAV can be found for each Fund at pimcoetfs.com.

Interval funds are an unlisted closed-end fund. Limited liquidity is provided to shareholders only through the fund’s quarterly offers to repurchase between 5% to 25% of its outstanding shares at net asset value (subject to applicable law and approval of the Board of Trustees, the Fund currently expects to offer to repurchase 10% of outstanding shares per quarter). There is no secondary market for the fund’s shares and none is expected to develop. Investors should consider shares of the fund to be an illiquid investment. It is important to note that differences exist between the fund’s daily internal accounting records, the fund’s financial statements prepared in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. It is possible that the fund may not issue a Section 19 Notice in situations where the fund’s financial statements prepared later and in accordance with U.S. GAAP or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please see the fund’s most recent shareholder report for more details. The fund’s distribution rate may be affected by numerous factors, including changes in realized and projected market returns, fund performance, and other factors. There can be no assurance that a change in market conditions or other factors will not result in a change in the fund distribution rate at a future time. An investment in an interval fund is not suitable for all investors. Unlike typical closed-end funds an interval fund’s shares are not typically listed on a stock exchange. Although interval funds provide limited liquidity to investors by offering to repurchase a limited amount of shares on a periodic basis, investors should consider shares of the Fund to be an illiquid investment. Investments in interval funds are therefore subject to liquidity risk as an investor may not be able to sell the shares at an advantageous time or price. The Fund anticipates that no secondary market will develop for its shares. There is no guarantee that an investor will be able to tender all of their requested Fund shares in a periodic repurchase offer.

Closed-end funds, unlike open-end funds, are not continuously offered. After the initial public offering, shares are sold on the open market through a stock exchange. Closed-end funds may be leveraged and carry various risks depending upon the underlying assets owned by a fund. Investment policies, management fees and other matters of interest to prospective investors may be found in each closed-end fund annual and semi-annual report. For additional information, please contact your investment professional.

A word about risk:

The PIMCO funds are not federally guaranteed and it is possible to lose money investing in a fund. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Income from municipal bonds is exempt from federal tax but 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. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Derivatives 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.

Morningstar Rating™ as of 31 October 2020 for the institutional share class; other classes may have different performance characteristics. A rating is not a recommendation to buy, sell or hold a fund. The Gurtin California Municipal Intermediate Value Fund was rated against the following numbers of Muni California Intermediate funds over the following time periods: Overall 3 Stars (64 funds rated); 3 Yrs. 3 Stars (64 funds rated). The Gurtin California Municipal Opportunistic Value Fund was rated against the following numbers of Muni California Intermediate funds over the following time periods: Overall 3 Stars (64 funds rated); 3 Yrs. 3 Stars (64 funds rated); 5 Yrs. 3 Stars (56 funds rated). The Gurtin National Municipal Intermediate Value Fund was rated against the following numbers of Muni National Interm funds over the following time periods: Overall 3 Stars (242 funds rated); 3 Yrs. 3 Stars (242 funds rated). The Gurtin National Municipal Opportunistic Value Fund was rated against the following numbers of Muni National Interm funds over the following time periods: Overall 3 Stars (242 funds rated); 3 Yrs. 4 Stars (242 funds rated); 5 Yrs. 3 Stars (218 funds rated). The PIMCO California Intermediate Municipal Bond Fund was rated against the following numbers of Muni California Intermediate funds over the following time periods: Overall 3 Stars (64 funds rated); 3 Yrs. 4 Stars (64 funds rated); 5 Yrs. 3 Stars (56 funds rated); 10 Yrs. 3 Stars (49 funds rated). The PIMCO California Municipal Bond Fund was rated against the following numbers of Muni California Long funds over the following time periods: Overall 4 Stars (95 funds rated); 3 Yrs. 5 Stars (95 funds rated); 5 Yrs. 4 Stars (78 funds rated). The PIMCO California Short Duration Municipal Income Fund was rated against the following numbers of Muni Single State Short funds over the following time periods: Overall 2 Stars (36 funds rated); 3 Yrs. 2 Stars (36 funds rated); 5 Yrs. 3 Stars (33 funds rated); 10 Yrs. 2 Stars (29 funds rated). The PIMCO High Yield Municipal Bond Fund was rated against the following numbers of High Yield Muni funds over the following time periods: Overall 5 Stars (176 funds rated); 3 Yrs. 5 Stars (176 funds rated); 5 Yrs. 5 Stars (151 funds rated); 10 Yrs. 4 Stars (98 funds rated). The PIMCO Municipal Bond Fund was rated against the following numbers of Muni National Long funds over the following time periods: Overall 4 Stars (146 funds rated); 3 Yrs. 4 Stars (146 funds rated); 5 Yrs. 4 Stars (131 funds rated); 10 Yrs. 4 Stars (105 funds rated). The PIMCO National Intermediate Municipal Bond Fund was rated against the following numbers of Muni National Intermediate funds over the following time periods: Overall 4 Stars (242 funds rated); 3 Yrs. 3 Stars (242 funds rated); 5 Yrs. 4 Stars (218 funds rated). The PIMCO New York Municipal Bond Fund was rated against the following numbers of Muni New York Intermediate funds over the following time periods: Overall 5 Stars (49 funds rated); 3 Yrs. 5 Stars (49 funds rated); 5 Yrs. 5 Stars (46 funds rated); 10 Yrs. 5 Stars (41 funds rated). The PIMCO Short Duration Municipal Income Fund was rated against the following numbers of Muni National Short funds over the following time periods: Overall 4 Stars (196 funds rated); 3 Yrs. 4 Stars (196 funds rated); 5 Yrs. 4 Stars (178 funds rated); 10 Yrs. 3 Stars (134 funds rated). The PIMCO Intermediate Municipal Bond Active ETF was rated against the following numbers of Muni National Interm funds over the following time periods: Overall 3 Stars (242 funds rated); 3 Yrs. 4 Stars (242 funds rated); 5 Yrs. 4 Stars (218 funds rated); 10 Yrs. 2 Stars (160 funds rated). The PIMCO Short Term Municipal Bond Active ETF was rated against the following numbers of Muni National Short funds over the following time periods: Overall 3 Stars (196 funds rated); 3 Yrs. 4 Stars (196 funds rated); 5 Yrs. 3 Stars (178 funds rated); 10 Yrs. 3 Stars (134 funds rated). The PIMCO California Municipal Income Fund was rated against the following numbers of Muni California Long funds over the following time periods: Overall 5 Stars (15 funds rated); 3 Yrs. 5 Stars (15 funds rated); 5 Yrs. 5 Stars (15 funds rated); 10 Yrs. 4 Stars (15 funds rated). The PIMCO California Municipal Income Fund II was rated against the following numbers of Muni California Long funds over the following time periods: Overall 5 Stars (15 funds rated); 3 Yrs. 4 Stars (15 funds rated); 5 Yrs. 4 Stars (15 funds rated); 10 Yrs. 5 Stars (15 funds rated). The PIMCO California Municipal Income Fund III was rated against the following numbers of Muni California Long funds over the following time periods: Overall 5 Stars (15 funds rated); 3 Yrs. 5 Stars (15 funds rated); 5 Yrs. 5 Stars (15 funds rated); 10 Yrs. 5 Stars (15 funds rated). The PIMCO Municipal Income Fund was rated against the following numbers of Muni National Long funds over the following time periods: Overall 5 Stars (58 funds rated); 3 Yrs. 4 Stars (58 funds rated); 5 Yrs. 5 Stars (58 funds rated); 10 Yrs. 5 Stars (54 funds rated). The PIMCO Municipal Income Fund II was rated against the following numbers of Muni National Long funds over the following time periods: Overall 5 Stars (58 funds rated); 3 Yrs. 5 Stars (58 funds rated); 5 Yrs. 5 Stars (58 funds rated); 10 Yrs. 5 Stars (54 funds rated). The PIMCO Municipal Income Fund III was rated against the following numbers of Muni National Long funds over the following time periods: Overall 5 Stars (58 funds rated); 3 Yrs. 5 Stars (58 funds rated); 5 Yrs. 5 Stars (58 funds rated); 10 Yrs. 5 Stars (54 funds rated). The PIMCO New York Municipal Income Fund was rated against the following numbers of Muni New York Long funds over the following time periods: Overall 4 Stars (17 funds rated); 3 Yrs. 4 Stars (17 funds rated); 5 Yrs. 5 Stars (17 funds rated); 10 Yrs. 4 Stars (17 funds rated). The PIMCO New York Municipal Income Fund II was rated against the following numbers of Muni New York Long funds over the following time periods: Overall 5 Stars (17 funds rated); 3 Yrs. 5 Stars (17 funds rated); 5 Yrs. 5 Stars (17 funds rated); 10 Yrs. 5 Stars (17 funds rated). The PIMCO New York Municipal Income Fund III was rated against the following numbers of Muni New York Long funds over the following time periods: Overall 5 Stars (17 funds rated); 3 Yrs. 4 Stars (17 funds rated); 5 Yrs. 4 Stars (17 funds rated); 10 Yrs. 5 Stars (17 funds rated). Past performance is no guarantee of future results. The 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.® 2018. 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.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation.

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. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.

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