PIMCO Intermediate Municipal Bond Strategy Fund

Fund Info

Print   

PIMCO Intermediate Municipal Bond Strategy Fund  (NYSE:MUNI)

As of 09/02/2010 $52.38 $52.43 Municipal  Intermediate  0.35%  0.48%  0.35% 
  Market
Price
NAV
Net Asset Value (NAV) represents an exchange-traded fund's (ETF) per-share value. The per-share value of an ETF is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of ETF shares outstanding. ETF shares are valued as of the close of regular trading (normally 4:00 p.m., Eastern Time) (the �NYSE Close�) on each business day.
 Fund
Category		 Duration
Category		 Management
Fees		 Expense Ratio
(gross)		 Expense Ratio
(net of fee waiver)
Documents
Objective: Seeks attractive tax-exempt income, consistent with preservation of capital.

Fund Information As of 09/02/2010

Ticker MUNI
CUSIP 72201R866
Inception Date 11/30/2009
Shares Outstanding 860,000
Total Net Assets $45,086,861
Daily Trading Volume
(in shares)		 10,391
Premium/Discount Average
(since inception)		 0.01%
Premium/Discount as
of market close		 -0.02%
Number of Holdings 90

Yield Information As of 09/01/2010

SEC 30-Day Yield
The 30 Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons among bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund's expenses.
 1.90%
Estimated Yield To Maturity
The Yield to Maturity is the rate of return anticipated on a bond if it is held until the maturity date. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. PIMCO calculates a Fund's Estimated Yield to Maturity by averaging the yield to maturity of each security held in the Fund on a market weighted basis by selecting each security's yield to maturity from PIMCO's analytics database or from Bloomberg. A Fund’s estimated yield to maturity may differ from its distribution yield or SEC yield due to a number of factors, including unsettled trades and Fund expenses.
 2.12%
Click Here to Access Annualized Performance Returns for one, five, and ten year periods (or the life of the Fund) based on NAV and closing price

Portfolio Information As of 08/31/2010

Effective Maturity
Weighted average of the maturities of the underlying bonds. The measure is computed by weighing each bond's maturity by its market value with respect to the portfolio and the likelihood of any of the bonds being called.
 6.10 years
Effective Duration
A portfolio's price sensitivity to changes in interest rates. An accurate predictor of price changes only for small, parallel shifts of the yield curve. For every 1 basis point fall (rise) in interest rates, a portfolio with duration of 1 year will rise (fall) in price by 1 bp.
 5.43
Fund Description

The Intermediate Municipal Bond Strategy Fund is an actively managed exchange-traded fund (ETF). Designed to be appropriate for investors seeking tax-exempt income, the Fund consists of a diversified portfolio of primarily intermediate duration, high credit quality bonds, which carry interest income that is exempt from federal tax and in some cases state tax. With this Fund, investors will see the names of the bonds owned daily. In addition, the Fund will not use options, futures or swaps.

Portfolio Management

John Cummings

Mr. Cummings is an executive vice president and head of the municipal bond desk in the Newport Beach office. Prior to joining PIMCO in 2002, he was vice president, municipal trading at Goldman Sachs and was responsible for a number of municipal sectors, including industrials, airlines, utilities, healthcare and high-yield. He has 28 years of investment experience and holds an MBA, as well as his undergraduate degree, from Rutgers University.

How to Invest

This fund is available for purchase anywhere ETFs are traded. For further information and to purchase this fund, please contact your broker. You can request this fund by name (PIMCO Intermediate Municipal Bond Strategy Fund) or ticker symbol (MUNI).

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher that performance shown. Investment return and principal value will fluctuate, so that Fund shares may be worth more or less than their original cost when sold or redeemed. Performance data current to the most recent month-end is available by clicking HERE or by calling 888-400-4ETF.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.

 

Annual Fund Operating Expenses (expenses that are deducted from Fund assets)(1)
Management
Fees		 Distribution
and/or Service
(12b-1) Fees(2)		 Other
Expenses(3)		 Total Annual
Fund Operating
Expenses		 Expense
Reduction(4)		 Net Annual
Fund Operating
Expenses
0.35% None 0.13% 0.48% (0.13)% 0.35%

1) Authorized Participants may be charged a $500 creation/redemption transaction fee and a variable charge as a percentage of the cash amount invested. See “Creations and Redemptions—Transaction Fees” for more information.
(2) The Fund has adopted a Distribution and Servicing (12b-1) Plan pursuant to which the Fund may bear a 12b-1 fee of up to 0.25%. However, no such fee is currently authorized to be paid by the Fund. See “Creations and Redemptions—Distribution and Servicing Plan” for more information.
(3) “Other Expenses” reflect estimated organizational expenses for the Fund’s first fiscal year.
(4) PIMCO has contractually agreed, through October 31, 2011, to waive its management fee, or reimburse the Fund, to the extent that organizational
expenses and pro rata Trustees’ fees exceed 0.0049% (the “Expense Limit”) of the Fund’s average net assets. Under the Expense Limitation Agreement,
which renews annually for a full year unless terminated by PIMCO upon at least 30 days’ notice prior to the end of the contract term, PIMCO may recoup
these waivers and reimbursements in future periods, not exceeding three years, provided organizational expenses and pro rata Trustees’ fees plus such recoupment, do not exceed the Expense Limit.

In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

Buying or selling Fund shares on an exchange may require the payment of brokerage commissions. Due to the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment returns. Investment in Fund shares may not be advisable for investors who expect to engage in frequent trading.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and the Market Price of the Fund on a given day, generally at the time the NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Fund is trading below the reported NAV, expressed as a percentage of the NAV. A discount or premium could be significant. The since inception premium/discount average is calculated by averaging the daily premium/discount since the inception of the fund. The daily premium/discount is the difference between the daily market price for shares of the Fund and the Fund's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated.

Average Volume As of 06/30/2010

in shares 24,002
in $ $1,208,821.25

Bid/Ask Spread As of 06/30/2010

in % 0.14%
in $ $0.06

Fund Tickers

NAV Per Share MUNI.NV
Und. Trading Value MUNI.IV
Shares Outstanding MUNI.SO
Est. Cash MUNI.EU
Total Cash MUNI.TC

 

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets ” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

Quarter End Performance (%) As of 06/30/2010See Month End Performance ›

 CumulativeAnnualized
 YTD1MO3MO6MO1YR3YR5YR10YRSINCE
INCEPT.
NAV Total Returns (After Fees)2.900.322.102.90--------2.50
Market Price Returns2.690.121.972.69--------2.38
Index Returns2.850.201.882.85--------2.81
Performance Difference (Fund NAV vs. Index)+0.05+0.12+0.22+0.05---------0.31
Performance Difference (Fund Market Price vs. Index)-0.16-0.08+0.09-0.16---------0.43
Volatility------------------

Quarter End After Tax Returns (%) As of 06/30/2010See Month End Performance ›

 CumulativeAnnualized
 YTD1MO3MO6MO1YR3YR5YR10YRSINCE
INCEPT.
2.290.041.772.29--------1.94
1.750.081.281.75--------1.54
Index2.850.201.882.85--------2.81

Month End Performance (%) As of 08/31/2010See Quarter End Performance ›

 CumulativeAnnualized
 YTD1MO3MO6MO1YR3YR5YR10YRSINCE
INCEPT.
NAV Total Returns (After Fees)7.052.204.375.19--------6.64
Market Price Returns6.992.264.305.17--------6.66
Index Returns6.191.913.464.59--------6.15
Performance Difference (Fund NAV vs. Index)+0.86+0.29+0.91+0.60--------+0.49
Performance Difference (Fund Market Price vs. Index)+0.80+0.35+0.84+0.58--------+0.51
Volatility------------------

Month End After Tax Returns (%) As of 08/31/2010See Quarter End Performance ›

 CumulativeAnnualized
 YTD1MO3MO6MO1YR3YR5YR10YRSINCE
INCEPT.
6.422.194.084.74--------6.06
4.531.472.803.34--------4.31
Index6.191.913.464.59--------6.15
Pre-Liquidation
Return after taxes on distributions. Assumes fund shares have not been sold.
Post-Liquidation
Return after taxes on distributions and sale of fund shares.
Pre-Liquidation
Return after taxes on distributions. Assumes fund shares have not been sold.
Post-Liquidation
Return after taxes on distributions and sale of fund shares.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher that performance shown. Investment return and principal value will fluctuate, so that Fund shares may be worth more or less than their original cost when sold or redeemed. Performance data current to the most recent month-end is available by clicking HERE or by calling 888-400-4ETF.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


The performance figures presented reflect the total return performance and reflect changes in share price and reinvestment of dividend and capital gain distributions. All periods longer than one year are annualized.

In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

Buying or selling Fund shares on an exchange may require the payment of brokerage commissions. Due to the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment returns. Investment in Fund shares may not be advisable for investors who expect to engage in frequent trading.

Barclays Capital 1-15 Year Municipal Bond Index consists of a broad selection of investment grade general obligation and revenue bonds of maturities ranging from 1 to 17 years. It is an unmanaged index representative of the tax-exempt bond market. It is not possible to invest directly in an unmanaged index.

Premium/Discount analysis for As of 06/30/2010

 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
0 - 0.49%4065.6%2134.4%
0.5% - 0.99%00.0%00.0%
1.0% - 1.49%00.0%00.0%
1.5% - 1.99%00.0%00.0%
2.0% - 2.49%00.0%00.0%
2.5% - 2.99%00.0%00.0%
3.0% - 3.49%00.0%00.0%
4.0% - 4.49%00.0%00.0%
4.5% - 4.99%00.0%00.0%
> 5.0%00.0%00.0%
Total4065.6%2134.4%
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
0 - 0.49%3961.9%2438.1%
0.5% - 0.99%00.0%00.0%
1.0% - 1.49%00.0%00.0%
1.5% - 1.99%00.0%00.0%
2.0% - 2.49%00.0%00.0%
2.5% - 2.99%00.0%00.0%
3.0% - 3.49%00.0%00.0%
4.0% - 4.49%00.0%00.0%
4.5% - 4.99%00.0%00.0%
> 5.0%00.0%00.0%
Total3961.9%2438.1%
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
0 - 0.49%1672.7%627.3%
0.5% - 0.99%00.0%00.0%
1.0% - 1.49%00.0%00.0%
1.5% - 1.99%00.0%00.0%
2.0% - 2.49%00.0%00.0%
2.5% - 2.99%00.0%00.0%
3.0% - 3.49%00.0%00.0%
4.0% - 4.49%00.0%00.0%
4.5% - 4.99%00.0%00.0%
> 5.0%00.0%00.0%
Total1672.7%627.3%

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher that performance shown. Investment return and principal value will fluctuate, so that Fund shares may be worth more or less than their original cost when sold or redeemed. Performance data current to the most recent month-end is available by clicking HERE or by calling 888-400-4ETF.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and the Market Price of the Fund on a given day, generally at the time the NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Fund is trading below the reported NAV, expressed as a percentage of the NAV. A discount or premium could be significant.

The since inception premium/discount average is calculated by averaging the daily premium/discount since the inception of the fund. The daily premium/discount is the difference between the daily market price for shares of the Fund and the Fund's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated.

The NAV of the Fund’s shares is determined by dividing the total value of the Fund’s portfolio investments and other assets, less any liabilities, by the total number of shares outstanding. Fund shares are valued as of the close of regular trading (normally 4:00 p.m., Eastern time) (the “NYSE Close”) on each business day. The price used to calculate market returns (“Market Price”) of the Fund generally is determined using the midpoint between the highest bid and the lowest offer on the national securities exchange on which shares of the Fund will be primarily listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of the Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of the Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

Buying or selling Fund shares on an exchange may require the payment of brokerage commissions. Due to the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment returns. Investment in Fund shares may not be advisable for investors who expect to engage in frequent trading.

Interest Rate Exposures As of 07/31/2010

Exposure Portfolio Index Definition
Effective Duration 5.5 5.7 A portfolio's price sensitivity to changes in interest rates. An accurate predictor of price changes only for small, parallel shifts of the yield curve. For every 1 basis point fall (rise) in interest rates, a portfolio with duration of 1 year will rise (fall) in price by 1 bp.
Bull Market Duration 5.5 5.5 A portfolio's effective duration after a 50 bp decline in rates. The extent to which a portfolio's duration exceeds its bull market duration is a gauge of contraction risk.
Bear Market Duration 5.5 5.9 A portfolio's effective duration after a 50 bp rise in rates. The extent to which a portfolio's bear market duration exceeds its duration is a gauge of extension risk.
Total Curve Duration 0.9 NA A portfolio's price sensitivity relative to the benchmark to changes in the slope of the yield curve, measured between the 2-30 year Government yields, holding the 10-year yield constant. For every 1 bp of steepening (flattening), a portfolio with curve duration of 1 year will rise (fall) in price by 1 bp relative to the benchmark.

Sector Exposures +As of 07/31/2010

Exposure Portfolio Index Definition
* As measured by spread duration, which represents a portfolio's price sensitivity to changes in spreads, or yield premiums, that affect the value of bonds that trade at a spread to Governments. These include mortgage-backed, corporate and emerging market bonds, as well as swaps.
Mortgage Spread Duration 0.0 0.0 The contribution of mortgages to spread duration. For every 1 bp of mortgage spread tightening (widening), a portfolio with mortgage spread duration of 1 year will rise (fall) in price by 1 bp.
Corporate Spread Duration 0.0 0.0 The contribution of corporate bonds to spread duration. For every 1 bp of corporate spread tightening (widening), a portfolio with corporate spread duration of 1 year will rise (fall) in price by 1 bp.
Emerging Markets Spread Duration 0.0 0.0 The contribution of emerging market bonds to spread duration. For every 1 bp of emerging market spread tightening (widening), a portfolio with an emerging market spread duration of 1 year will rise (fall) in price by 1 bp.

Key Rate DurationAs of 06/30/2010

Holding all other maturities constant, this measures the sensitivity of a security or the value of a portfolio to a 1% change in yield for a given maturity.
1 mo 0.0
3 mo 0.0
1 yr 0.0
2 yr 0.1
3 yr 0.2
5 yr 1.9

 

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.

 

In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets ” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

Sector AllocationAs of

 % of Market Value% of Duration
SectorFund+IndexFund+Index
Data will not be available until first month after fund inception date
+Fund inception date was 11/30/2009

Top 10 Holdings As of 09/01/2010

Description%SectorCouponMaturity
ENERGY NW ELEC-REF-3A 2.67%Municipal Bond5.0007/01/2017
TEXAS A&M UNIV-B 2.64%Municipal Bond5.0005/15/2016
AUSTIN ELEC UTIL-RF-A 2.63%Municipal Bond5.0011/15/2017
KY TPK AUTH 2.63%Municipal Bond5.0007/01/2016
CHICAGO WSTEWTR 2.62%Municipal Bond5.5001/01/2018
MI ST UNIV-REF-C 2.62%Municipal Bond5.0002/15/2016
OH TPK COMMN-REF-A 2.61%Municipal Bond5.5002/15/2016
KING CNTY HSP #2-REF 2.55%Municipal Bond5.0012/01/2015
MO ST HLTH-ST LUKES 2.44%Municipal Bond5.0011/15/2017
NYC WTR/SWR SER EE 2.39%Municipal Bond5.0006/15/2017
Summary25.80%of holdings in the top 10


Maturity DistributionAs of 07/31/2010
YearsFund %+Index %
0-12%0%
1-32%20%
3-58%15%
5-1086%31%
10-202%35%
20+0%-1%
Average6.18 yr7.89 yr
+Fund inception date was 11/30/2009

All Holdings Download as Spreadsheet › As of 09/01/2010

%DescriptionCoupon RateMaturity DateMarket PriceMarket ValuePar ValueCurrencySectorCUSIP
0.00%STATE STREET REPO 0.01012/01/2015100.0011USD Short Term Investment Fund9840608A4
1.26%ALLEGHENY HOSP-A 5.00005/15/2017113.79568,945500,000USD Municipal Bond01728AW93
0.38%ASPEN-REF-HSG 4.00012/01/2014113.03169,538150,000USD Municipal Bond045249VF3
2.63%AUSTIN ELEC UTIL-RF-A 5.00011/15/2017118.521,185,2101,000,000USD Municipal Bond052414LH0
1.05%AZ UNIV SER C 5.25007/01/2016118.67474,660400,000USD Municipal Bond04048RAJ5
1.16%BOWLING GREEN UNIV-A 3.00006/01/2014104.98524,890500,000USD Municipal Bond102885GJ3
1.33%CA ECON-REF-A ST GTD 5.00007/01/2018120.16600,815500,000USD Municipal Bond13067JLA7
0.66%CA WTR 5.00005/01/2016118.71296,780250,000USD Municipal Bond13066YQA0
1.34%CA WTR 5.00005/01/2018120.94604,715500,000USD Municipal Bond13066YQC6
0.48%CAMPBELL HOSP DIST 5.00012/01/2017108.91217,814200,000USD Municipal Bond13433QAF9
0.51%CARLSBAD SD-CABS 0.00005/01/201492.29230,728250,000USD Municipal Bond142665BY3
0.47%CHICAGO IL BRD ED-SCH-A FGIC 0.00012/01/201684.81212,035250,000USD Municipal Bond167501WR2
2.62%CHICAGO WSTEWTR 5.50001/01/2018118.111,181,0901,000,000USD Municipal Bond167727MJ2
0.92%CHICAGO WTR-RF-2ND LI 5.00011/01/2016118.04413,133350,000USD Municipal Bond167736VV6
1.79%CITIZENS PPTY-A1-HIGH 5.00006/01/2016107.62807,135750,000USD Municipal Bond176553ES0
1.33%DALLAS TX WTR & SWR 5.00010/01/2016120.16600,790500,000USD Municipal Bond2354162E3
0.64%DENVER ARPT 5.00011/15/2016115.68289,190250,000USD Municipal Bond249182AM8
0.65%DENVER ARPT SYS-A NATL-RE FGIC 4.00011/15/2016109.93291,325265,000USD Municipal Bond2491813H9
2.67%ENERGY NW ELEC-REF-3A 5.00007/01/2017120.301,202,9701,000,000USD Municipal Bond29270CVZ5
0.28%FL UNIV BRD GOVRNORS 5.50007/01/2018121.73127,819105,000USD Municipal Bond341583AK8
0.63%FLORIDA MUNI PWR AGY 5.00010/01/2015114.28285,705250,000USD Municipal Bond342816YK5
0.81%GARDEN ST PRESERV-A FSA 5.80011/01/2016121.40364,194300,000USD Municipal Bond365418BP6
0.93%GARLAND REF 5.00002/15/2015116.66419,980360,000USD Municipal Bond366119WU5
1.30%GLENWOOD SPR TAX-REF 5.00010/01/2018117.52587,605500,000USD Municipal Bond379290BW8
0.39%HALLSVILLE ISD-BLDG-A PSF-GTD 4.00002/15/2016113.29175,598155,000USD Municipal Bond406360MQ7
0.55%HOUSTON WTR-UNREF-A FSA 0.00012/01/202071.04248,626350,000USD Municipal Bond4424365V9
1.26%IA HGR ED-REF-PRIVATE 4.00012/01/2016113.99569,955500,000USD Municipal Bond462460J31
0.93%IL FIN-NORTHWESTERN-B 5.00008/15/2015111.40417,743375,000USD Municipal Bond45200FXB0
1.24%IL ST-B-BUILD 4.50006/15/2016111.43557,125500,000USD Municipal Bond452227CJ8
1.91%IL ST-BLD IL 5.00006/15/2016114.69860,160750,000USD Municipal Bond452227DJ7
1.25%IN FIN 4.00011/01/2016112.81564,070500,000USD Municipal Bond455057YA1
1.35%IN FIN AUTH-REF-A 5.00002/01/2018121.61608,060500,000USD Municipal Bond455057XJ3
0.78%IN FIN REF-SER A NATL-RE FGIC 5.00012/01/2017116.79350,382300,000USD Municipal Bond45470RAN6
0.78%INDIANAPOLIS IMP-RF-E AMBAC 5.00001/01/2016117.48352,452300,000USD Municipal Bond45528SSY3
1.29%INLAND PROTN FING-A 5.00007/01/2016116.69583,460500,000USD Municipal Bond45746RAG9
2.55%KING CNTY HSP #2-REF 5.00012/01/2015115.051,150,4801,000,000USD Municipal Bond494791NZ5
0.36%KING SD #1-A-SEATTLE SCH BD GTY 5.00006/01/2012107.92161,879150,000USD Municipal Bond494836GU7
1.33%KS ST DEV-E1 5.00011/01/2017119.60597,990500,000USD Municipal Bond48542K2J7
2.19%KY PWR ASSURED GTY 4.00009/01/2016109.86988,767900,000USD Municipal Bond491501CF7
2.63%KY TPK AUTH 5.00007/01/2016118.691,186,8801,000,000USD Municipal Bond491552VL6
0.29%LONG ISL PWR-GEN-D NATL-RE 5.00009/01/2012107.55129,058120,000USD Municipal Bond542690ZJ4
1.36%MA BAY TRN UNREF-C 5.50007/01/2017122.77613,845500,000USD Municipal Bond575579SH1
2.10%MA DEV-O-2-BRANDEIS 4.00010/01/2016111.43947,172850,000USD Municipal Bond57583RV51
1.33%MA WTR-REF-GEN-B GO OF AUTH 5.00008/01/2016120.00600,015500,000USD Municipal Bond576051BE5
0.67%MARIETTA 5.00002/01/2018121.00302,493250,000USD Municipal Bond567643NW7
0.74%MD ST DEPT TRANSN 5.00006/01/2016119.64335,000280,000USD Municipal Bond574204QZ9
0.86%MEAG SER B 4.00001/01/2018110.32386,127350,000USD Municipal Bond626207XR0
0.80%MECKLENBURG COPS-A 5.00002/01/2019119.50358,509300,000USD Municipal Bond583887CT9
0.55%MI MUN BD-B-ST AID 5.00003/21/2011100.10250,260250,000USD Municipal Bond59455TL75
2.62%MI ST UNIV-REF-C 5.00002/15/2016118.101,180,9901,000,000USD Municipal Bond594712QF1
1.97%MO JT ELEC UTIL-SER A 5.00001/01/2016111.26890,112800,000USD Municipal Bond606092BZ6
2.44%MO ST HLTH-ST LUKES 5.00011/15/2017109.991,099,9001,000,000USD Municipal Bond60635R7N1
0.65%NH HLTH UNIV SYS-A 5.00007/01/2016116.93292,330250,000USD Municipal Bond644614XG9
1.34%NM TAX-SER A 5.00007/01/2017120.44602,195500,000USD Municipal Bond647310J85
0.93%NY DORM-A-CITY UNIV NATL-RE FGIC 5.00007/01/2016113.76420,901370,000USD Municipal Bond64983RGJ0
0.52%NYC FIN-C1 5.00011/01/2015118.15236,306200,000USD Municipal Bond64971MLA8
2.39%NYC WTR/SWR SER EE 5.00006/15/2017120.531,078,708895,000USD Municipal Bond64972FZG4
0.62%NYS URBAN DEV-REF-D 5.00001/01/2014112.46281,143250,000USD Municipal Bond650035NV6
0.74%OH ST-A-MENTAL HLTH C NATL-RE 5.00008/01/2016111.64334,905300,000USD Municipal Bond677520CY2
2.61%OH TPK COMMN-REF-A 5.50002/15/2016117.671,176,6901,000,000USD Municipal Bond67760HCA7
0.59%OH TPK COMMN-REF-A 5.50002/15/2017118.72267,118225,000USD Municipal Bond67760HCB5
1.22%OR FACS-REF-A-SAMARIT 5.00010/01/2017110.11550,530500,000USD Municipal Bond68608JLM1
0.61%ORANGE HLTH-HSP-ORLAN 5.00010/01/2015109.63274,075250,000USD Municipal Bond68450LAM7
0.66%ORLANDO UTILS REF 5.00010/01/2017118.66296,658250,000USD Municipal Bond686507CV4
0.65%PA HGR ED TEMPLE UNIV 5.00004/01/2016117.05292,625250,000USD Municipal Bond70917REJ0
1.16%PA HGR ED-E-UNIV PITT 3.50005/15/2012104.57522,855500,000USD Municipal Bond70917RXY6
0.62%PIEDMONT PWR-REF-A2 5.00001/01/2015111.60278,995250,000USD Municipal Bond720175VQ8
1.07%PLEASANTON USD-REF AGM 3.50008/01/2015107.11482,004450,000USD Municipal Bond728837BD6
0.64%PR ELEC PWR-REF-JJ 5.37507/01/2016114.89287,215250,000USD Municipal Bond7452684V1
1.95%ROBBINSDALE ISD 281-A SD CRED PROG 5.00002/01/2017119.39877,546735,000USD Municipal Bond7702647V5
1.33%SAN ANTONIO-CTFS OBLG 5.00008/01/2016119.63598,140500,000USD Municipal Bond796237VD4
1.36%TAUNTON-REF-ST QUALIF ST AID WITHHLDG 5.00012/01/2018119.81611,041510,000USD Municipal Bond876672N93
2.64%TEXAS A&M UNIV-B 5.00005/15/2016119.261,192,5601,000,000USD Municipal Bond882135Z66
0.25%TEXAS ST TRANS COMMN 5.00004/01/2026112.73112,727100,000USD Municipal Bond88283LER3
2.05%TEXAS ST-VET HSG 4.00012/01/2015113.89922,493810,000USD Municipal Bond882722NU1
0.55%TN ENERGY 5.00002/01/202798.89247,233250,000USD Municipal Bond880443EE2
0.57%TX GAS ACQ SER A 5.25012/15/2023102.79256,968250,000USD Municipal Bond88256CAQ2
0.81%TX ST WTR ASSIST 5.00008/01/2020121.17363,504300,000USD Municipal Bond882722HE4
0.88%UNION CNTY COPS AMBAC 5.00006/01/2022110.46397,649360,000USD Municipal Bond906398CA8
0.78%UNIV N TX-FING SYS-A 5.00004/15/2015116.78350,340300,000USD Municipal Bond914729LD8
0.63%UNIV NC HOSP-REF-A 5.00002/01/2015112.80281,998250,000USD Municipal Bond914714BW9
1.22%VINCENNES UNIV FEE-J 4.00006/01/2016109.70548,500500,000USD Municipal Bond927277QA4
0.58%WA HGR ED-REF-A-GONZA 4.00004/01/2013105.29263,218250,000USD Municipal Bond939781G87
1.42%WA ST-2010C 5.00001/01/2016118.72641,088540,000USD Municipal Bond93974CNU0
0.26%WARSAW SCH BLDG-MTG-B ST AID-WITHHLDG 5.50001/15/2017117.46117,460100,000USD Municipal Bond93638RBV6
1.27%WI ST 4.00005/01/2018114.73573,655500,000USD Municipal Bond97705LZC4
0.57%WI ST-REF-1 MBIA 5.00005/01/2017114.93258,602225,000USD Municipal Bond97705LFY8
0.51%WYANDOTTE GOVT-REF-A 5.00009/01/2015114.01228,018200,000USD Municipal Bond982674EX7
0.00%NET UNSETTLED TRADES1 ------0--USD Net Cash--
1.00%OTHER2 ------452,132--USD Net Cash--
1 An unsettled trade is a trade for which payment has not yet been completed. The Net Unsettled Trades amount displays the value of all unsettled trades that will either be credited to (positive value) or debited from (negative value) the Fund at trade settlement.
2 Other includes accrued interest.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investment Strategies 

About the Strategy

Active Municipal Bond ETFs Q&A

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.