PIMCO To Begin Trading It’s Intermediate Municipal Bond Strategy Fund (MUNI) Tomorrow (Tuesday)

Home > PIMCO To Begin Trading It’s Intermediate Municipal Bond Strategy Fund (MUNI) Tomorrow (Tuesday)

PIMCO To Begin Trading It’s Intermediate Municipal Bond Strategy Fund (MUNI) Tomorrow (Tuesday)

November 30th, 2009

PIMCO Intermediate Municipal Bond Strategy Fund will begin trading tomorrow under the symbol (MUNI). The Intermediate Municipal Bond Strategy Fund is an actively managed exchanged-traded fund (ETF). Designed to be appropriate for investors seeking tax-exempt income, the Fund consists of a diversified portfolio of primarily intermediate duration, high credit quality bonds, which carry interest income that is exempt from federal tax and in some cases state tax. With this Fund, investors will see the names of the bonds owned daily. In addition, the Fund will not use options, futures or swaps.

The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in a diversified portfolio of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (“Municipal Bonds”). Municipal Bonds generally are issued by or on behalf of states and local governments and their agencies, authorities and other instrumentalities.

The Fund does not intend to invest in securities whose interest is subject to the federal alternative minimum tax. The Fund may only invest in U.S. dollar-denominated investment grade debt securities, rated Baa or higher by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. The Fund may invest 25% or more of its total assets in Municipal Bonds that finance similar projects, such as those relating to education, health care, housing, transportation, and utilities, and 25% or more of its total assets in industrial development bonds. The average portfolio duration of this Fund normally varies from three to eight years, based on PIMCO’s forecast for interest rates. The portfolio manager focuses on bonds with the potential to offer attractive current income, typically looking for bonds that can provide consistently attractive current yields or that are trading at competitive market prices. The Fund may purchase and sell securities on a when-issued, delayed delivery or forward commitment basis. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls).

Annual Fund Operating Expenses (expenses that are deducted from Fund assets)⁽¹⁾
Management Fees	Distribution and/or Service (12b-1) Fees⁽²⁾	Other Expenses⁽³⁾	Total Annual Fund Operating Expenses	Expense Reduction⁽⁴⁾	Net Annual Fund Operating Expenses
0.35%	None	0.13%	0.48%	(0.13)%	0.35%