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  • Writer's pictureJerremy Alexander Newsome


PIMCO Municipal Income Fund PML

PIMCO is a global investment firm, started the year 1971 in Newport Beach, California, which now has offices in 11 countries of North America, Europe and Asia. Assets Under Management (AUM) total about $1.47 trillion and there are about 2200 employees. Yes, Pacific Investment Management Co. was co-founded by Mr. William "Bill" Gross, the well-known financier and stamp collector.

One of their closed-end funds, presented here, is PIMCO Muni Income Fund II (PML) which operates to provide monthly income, free of federal taxes, to investors by investing in and trading municipal bonds. The fund holds mostly long-term bonds and uses investor money along with borrowed dollars (leverage) to generate income which is then paid out each month to shareholders. PML might be suitable for someone who wants the reward of "tax-free" bond income and who understands the risks of this style fund.

Additional information is as follows:

1) 52-week high/low is $14.08 to 11.57

2) price today about $12.60

3) monthly distribution $.0650 per share

4) distribution annualized about 6.19 percent based on market price

5) earnings per share $.81 per year

6) trading volume (90-day average) over 215,000

7) Net Asset Value about $11.89 (note this is below market price)

8) about 35% of total assets is borrowed money (leverage)

9) net assets are about $730 million

10) total expense ratio about 1.11%

11) started June, 2002

12) total holdings, end 2016, were 233

13) at least 80% of bonds in the fund are of investment grade

14) about 85% of holdings mature in more than 15 years

15) annual turnover about 10%

Writer comments are as follows:

1) If/when interest rates increase then this type fund may be less attractive to investors

2) If/when tax rates are reduced there may be less investor interest in"tax-free" funds

3) If interest rates are increased then the cost of the fund's leverage will likely increase

4) This fund has traded above net asset value for over a year

Information presented here is believed to be accurate, but is not, and cannot be guaranteed because the information is taken from sources such as PIMCO website,, and/or stockbroker website. This writer does not own PML and has no plan to purchase PML. This presentation is intended for reader interest/entertainment only and does not encourage or discourage investment in PML. EACH READER MUST CONDUCT THEIR OWN RESEARCH BEFORE MAKING ANY INVESTMENT.


Ed Reed

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