PIMCO High Yield Municipal Bond Fund Overview and Details

The PIMCO High Yield Municipal Bond Fund is designed to provide investors with a high level of income and relatively low volatility.

It focuses on investing in high-yield municipal bonds, which are typically issued by local governments and other tax-exempt entities to finance infrastructure projects.

The fund's investment objective is to provide current income exempt from federal income tax.

By investing in a diversified portfolio of high-yield municipal bonds, the fund aims to generate returns that are competitive with other high-yield bond investments.

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PIMCO High Yield Municipal Bond I is an actively managed fund that seeks high current income exempt from federal income tax. It was launched in 2006.

The fund invests at least 80% of its assets in debt securities whose interest is exempt from federal income tax. It may also invest in higher rated municipal bonds.

The fund has a diverse portfolio with 818 securities, and the top 10 holdings constitute 18.3% of the fund's assets. This suggests a well-diversified investment strategy.

The fund's managers have an average tenure of 5.5 years, with the longest tenure being 9.4 years. This indicates a stable and experienced management team.

Here are the key fund managers:

The PIMCO High Yield Municipal Bond Fund is a solid investment option for those looking for tax-exempt income. It was launched in 2006 and has been actively managed since then.

The fund invests at least 80% of its assets in debt securities whose interest is exempt from federal income tax, also known as Municipal Bonds. It may also invest in higher rated Municipal Bonds.

The fund's investment approach is thoughtful, repeatable, and effective, thanks to a knowledgeable and collaborative team. This team is led by Manager David Hammer, who has been at the helm since 2015.

Here are some key details about the fund:

The fund's team has an average tenure of 5.5 years, indicating a stable and experienced team.

PIMCO High Yield Municipal Bond I (PHMIX) is an actively managed fund launched in 2006. It seeks high current income exempt from federal income tax, with total return as a secondary objective.

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The fund invests at least 80% of its assets in Municipal Bonds, which are debt securities exempt from federal income tax. It may also invest in higher rated Municipal Bonds and up to 30% of its assets in "private activity" bonds.

The fund has 1 primary benchmark: the Bloomberg Municipal TR USD index, which it tracks with a weighting of 100%. PHMIX has 818 securities in its portfolio, with the top 10 holdings constituting 18.3% of the fund's assets.

The fund is part of the Fixed Income global asset class and is within the Municipal Bond fund group. It has 7.0% of its portfolio invested in foreign issues and 0.0% allocated to domestic stock, foreign stock, and preferred stocks.

Here's a breakdown of the fund's allocation:

PHMIX is considered a diversified fund, meeting the SEC requirement. However, it does not have an ESG focus in its investment selection and management.

The PIMCO High Yield Municipal Bond I fund is actively managed, which means the investment team is actively making decisions to try and achieve the fund's goals.

The fund was launched in 2006, and its primary objective is to generate high current income that is exempt from federal income tax.

Here are some key details about the fund's management team:

The fund's managers have a good amount of experience, with the longest-tenured manager having over 9 years of experience.

Assets Under Management is a crucial factor to consider when evaluating a fund's performance.

The PIMCO High Yield Municipal Bond I fund has a significant $2 billion in total assets, which is above the $667 million average for the High Yield Muni category.

Having a large amount of assets can sometimes make it difficult for the manager to implement their desired active strategy, especially in smaller investment categories.

A higher asset base can also lead to increased expenses, which can negatively impact your returns.

On the other hand, the fund's large asset base is accompanied by a high trailing dividend yield of 4.59%, which is above the 4.09% category average.

The Bond Sector Breakdown reveals some interesting insights into the composition of bond investments.

Municipal bonds hold the largest share at 84.73%. This is a significant portion of the overall bond sector.

Cash & Equivalents make up 10.86% of the bond sector, with a return range of 0.00% to 10.86%.

Corporate bonds are a relatively small part of the bond sector, accounting for 2.11% of the total.

Securitized bonds, on the other hand, have a much wider return range, from 0.00% to 22.44%.

The Derivative sector is not a significant contributor, making up only 0.00% of the bond sector.

The Government sector is also a minor contributor, with a return range of 0.00% to 0.09%.

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The PIMCO High Yield Municipal Bond fund has an expense ratio of 0.56%, which is 42% lower than its category average. This puts the fund's expense ratio grade at A, making it a great choice for investors looking to minimize fees.

The fund's management fees are also relatively low, at 0.60% of assets under management. This is lower than the category average, making it a cost-effective option.

One thing to note is that the fund's administrative fees are also relatively low, at 0.30% of assets under management. This is lower than the category average, making it a great choice for investors looking to minimize fees.

Here's a breakdown of the fund's operational fees:

The fund's portfolio turnover rate is also relatively low, at 34%, which is lower than the category average of 41%. This suggests that the fund is holding onto its assets for a longer period of time, which can help to minimize fees and maximize returns.

The PIMCO High Yield Municipal Bond Fund has had a mixed performance over the years, with returns ranging from -16.6% to 3.8%.

In 2024, the fund's return was -0.1%, which is slightly better than the category return low of -3.6%. This puts the fund at 79.60% in its category.

The fund's performance in 2023 was a notable improvement, with a return of 3.8%. This was significantly better than the category return low of -6.2% and the category return high of 7.5%.

Here's a breakdown of the fund's performance in previous years:

The fund's performance in 2022 was the weakest, with a return of -16.6%. This was significantly worse than the category return high of -3.5% and the category return low of -26.9%.

The PIMCO High Yield Municipal Bond Fund is designed to provide a high level of current income exempt from federal income tax.

With a focus on high yield municipal bonds, this fund typically invests in securities with lower credit ratings, which can be riskier.

PIMCO's investment strategy is to actively manage the fund's portfolio to minimize losses and maximize returns, but this approach can also increase the risk of losses.

The fund's concentration in high yield municipal bonds can be beneficial in times of economic growth, as these bonds often perform well in a strong economy.

However, the fund's high yield focus also means it's more susceptible to interest rate changes, which can impact the value of the bonds.

PIMCO's investment team has a long history of managing municipal bond funds, which can be a benefit in navigating the complexities of this market.

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The PIMCO High Yield Municipal Bond Fund offers a compelling investment opportunity, especially when it comes to dividend and distribution. The fund's dividend yield is 3.40%, which is a significant percentage of the overall return.

The category low for dividend yield is 0.00%, while the category high is 5.94%. This puts the PIMCO fund's dividend yield at 63.18% of the category high, indicating a relatively strong position.

In terms of dividend yield, the PIMCO fund is a solid choice for investors looking for a steady stream of income.

The PIMCO High Yield Municipal Bond I fund is an actively managed investment that seeks high current income exempt from federal income tax, with total return as a secondary objective.

The fund invests at least 80% of its assets in debt securities whose interest is exempt from federal income tax, specifically Municipal Bonds. This is a key aspect of the fund's strategy, as it allows investors to potentially earn tax-free income.

The fund's sector breakdown reveals that Municipal Bonds make up the largest portion of its portfolio, with a weighting of 84.73%. This is followed by Cash & Equivalents, which accounts for 10.86% of the portfolio.

Here's a breakdown of the fund's sector allocation:

The fund's management team has a combined tenure of 14.9 years, with the longest tenure being 9.4 years. This level of experience suggests a high degree of stability and continuity in the fund's management.