Pimco launches California, national investment-grade municipal funds

By Toni Weeks

San Diego, May 22 - Pimco Funds said it has launched two new municipal bond funds that invest primarily in investment-grade securities, according to an N-1A filing with the Securities and Exchange Commission.

The two funds will offer institutional, class P, administrative class and class D shares.

The Pimco California Municipal Bond Fund's shares will trade under the symbols PCTIX, PCTPX, PCTQX and PCTDX, respectively.

The Pimco National Intermediate Municipal Bond Fund's shares will trade under the ticker symbols PMNIX, PMNPX, PMNQX and PMNDX, respectively.

Joe Deane is the portfolio manager for both funds.

The California Municipal Bond Fund seeks high current income exempt from federal and California income tax by investing, under normal circumstances, at least 80% of its assets in debt securities whose interest is exempt from regular federal income tax and California income tax. The fund invests primarily in investment-grade debt securities but may invest up to 10% of its total assets in high-yield securities. The average portfolio duration of the fund will normally vary from seven to 12 years.

The total annual fund operating expenses for the California fund will be 0.44% for institutional class, 0.54% for class P, 0.69% for administrative class and 0.79% for class D shares.

The National Intermediate Municipal Bond Fund seeks maximum tax exempt income by investing, under normal circumstances, at least 80% of its assets in debt securities whose interest is exempt from federal income tax. The fund invests primarily in investment-grade debt securities but may invest up to 10% of its total assets in high-yield municipal or private activity bonds. The average portfolio duration of the fund will vary from three to nine years.

The total annual fund operating expenses for the national fund will be 0.45% for institutional class, 0.55% for class P, 0.45% for administrative class and 0.55% for class D shares.

Newport Beach, Calif.-based Pacific Investment Management Co. LLC, or PIMCO, is the investment adviser for the fund.

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