PIMCO California Flexible Municipal Income Fund

Last Updated 03/19/2024

This fund recently launched or we are in the process of collecting the data

Shows hypothetical growth of $1000 since inception

Nav Per Share

0%

Current Yield

0.00%

Total Return

06/21/2022

Inception

$56,197,707

Total Managed Assets*

CAFLX

Ticker

$1,000,000

Minimum Investment

%

Net Expense Ratio

*represents total managed funds for the fund complex

About The Fund

PIMCO registered the PIMCO California Flexible Municipal Income Fund (the "Fund") on 2/17/22, with the goal of providing attractive current income that's exempt from both federal and California income tax. The move is understandable, given that California leads the nation in income tax rates, at 13.30%, over 200 basis points more than the runner-up (Hawaii).


In pursuit of this objective, the Fund expects to invest at least 80% of net assets into municipal bonds and other municipal securities that it believes are exempt from both federal and California income taxes, with no cap on exposure to bonds that are below investment grade. The Fund will offer 5 share classes, including Institutional Shares with a $1 million minimum, and retail-friendly shares with an entry point of $2500.


Notably, the Fund has elected to repurchase 10% of outstanding shares each quarter, offering more liquidity than the common 5% to 25% (but probably 5%) approach from most interval funds. The Fund also allows shareholders to use these tender offer events to buy shares of other PIMCO funds at NAV, the first time we've seen this approach.


PIMCO, based in Newport Beach, CA, manages products spanning fixed income, equities, alternative investments, ESG funds, ETFs, and interval funds with over $2.2 trillion under management.



From the Fund's prospectus:


The Fund: PIMCO California Flexible Municipal Income Fund (the “Fund”) is a newly organized, non-diversified, closed-end management investment company that continuously offers its shares of beneficial interest, par value of $0.00001 per share (the “Common Shares”) and is operated as an “interval fund.” The Fund currently has five separate classes of Common Shares: Institutional Class, Class A-1, Class A-2, Class A-3 and Class A-4.


Investment Objectives: The Fund seeks to provide high current income exempt from federal and California income tax. Capital appreciation is a secondary objective.


Investment Strategy: The Fund attempts to achieve these objectives by investing, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of municipal bonds and other municipal securities, the interest from which, in the opinion of bond counsel for the issuer at the time of issuance (or on the basis of other authority believed by PIMCO to be reliable), is exempt from federal income tax and California income tax (i.e., excluded from gross income for income tax purposes but not necessarily exempt from the alternative minimum tax or from the income taxes of any other state or of a local government), as described under “Portfolio Contents” below. To a lesser extent, the Fund also expects to invest in a full range of preferred securities with an emphasis on preferred securities that, at the time of issuance, are eligible to pay dividends that qualify for certain favorable federal income tax treatment.


The Fund does not target a specific duration or maturity for the municipal bonds and other securities in which it invests, and the Fund’s average portfolio duration, as calculated by PIMCO, may vary significantly depending on market conditions and other factors. There is no limit on the maturity or duration of any individual security in which the Fund may invest.



Adviser: PIMCO


Legal Counsel: Ropes & Gray LLP


Partner: David C. Sullivan


Distributor: PIMCO Investments LLC

Fund Materials

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HISTORICAL DATA

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