Apr 07. 15:07
PIMCO Registers the PIMCO California Flexible Municipal Income Fund
Love paying California income taxes? No? PIMCO just registered a fund for you.
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.
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