June 06, 2012 09:00 ET

PIMCO Launches Two New Municipal Bond Funds

Expansion of Municipal Bond Platform Includes California Fund and National Intermediate Fund

NEWPORT BEACH, CA--(Marketwire - Jun 6, 2012) - PIMCO, a leading global investment management firm, is launching two municipal bond funds, the PIMCO California Municipal Bond Fund and the PIMCO National Intermediate Municipal Bond Fund. These funds expand PIMCO's suite of municipal offerings for investors seeking tax-efficient strategies backed by the firm's deep research and time-tested investment process. Both funds will be managed by Joe Deane, head of PIMCO's municipal bond portfolio management, based in the firm's New York office.

The municipal bond market continues to evolve. More than ever, deep credit research is critical as issuers are exposed to more challenging national and local conditions. The medium-term fiscal outlook could well involve changes to the tax regime, cuts to federal aid to the states, and a different environment for both state and local governments. Accordingly, investors looking for high-quality tax-efficient income ahead need the support of an investment manager with the resources and capabilities to navigate the changing and vast municipal landscape.

"The municipal bond market has changed substantially since the financial crisis of 2008 and is now a credit-by-credit market," said Mr. Deane. "More than ever before there's a premium on credit research to properly evaluate bond valuations, the financial strength of municipalities and therefore the likely capital preservation of an investors' principal."

The PIMCO California Municipal Bond Fund and PIMCO National Intermediate Municipal Bond Fund broaden PIMCO's suite of municipal investment strategies, which combine the firm's top-down macroeconomic outlook and bottom-up market and credit analysis to pursue risk-focused, tax-advantaged income.

Mr. Deane oversees PIMCO's $55 billion of municipal investments and has more than 40 years experience in municipal bond investing. He was named Morningstar Fixed Income Fund Manager of the Year for 1996 and was a finalist in 2007.

Institutional shares of the PIMCO California Municipal Bond Fund will trade under the ticker symbol PCTIX. Additional shares include "P" shares (PCTPX), "A" shares (PCTTX), "D" shares (PCTDX) and "C" shares (PCTGX). Institutional shares of the PIMCO National Intermediate Municipal Bond Fund will trade under the ticker symbol PMNIX. Additional shares include "P" shares (PMNPX), "A" shares (PMNTX), "D" shares (PMNDX) and "C" shares (PMNNX).

PIMCO is a leading global investment management firm, with offices in 11 countries throughout North America, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.

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 financial advisor or PIMCO representative, by visiting or by calling (888)87-PIMCO. Please read them carefully before you invest or send money.

A word about risk: Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth more or less than the original cost when redeemed. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax. A fund concentrating in a single state is subject to greater risk of adverse economic conditions and regulatory changes than a fund with broader geographical diversification. The California Municipal Bond Fund may invest its assets in debt securities exempt from regular federal income tax and California income tax. 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. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. 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. The Funds are non-diversified, which means that they may invest assets in a smaller number of issuers than a diversified fund.

The value of most bond funds and fixed income securities are impacted by changes in interest rates. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise.

There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market.

The Morningstar Fixed Income Fund Manager of the Year (1996 and 2007) award is based on the strength of the manager, performance, strategy, and firm's stewardship.

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. ©2012, PIMCO.

PIMCO advised funds are distributed by PIMCO Investments LLC.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statement.

Contact Information

  • Contact:
    Michael Reid
    Media Relations