PIMCO has launched the PIMCO Short Term Municipal Bond Strategy Fund, an actively managed exchange-traded fund. The fund will invest in high-quality, short-maturity, alternative minimum tax-free municipal bonds whose income is exempt from federal and, in some cases, state tax. John Cummings, executive vice president and head of the municipal bond desk at PIMCO, will manage the fund.
“As cities and states face ever-greater challenges in managing their budgets, issuer-specific credit analysis has become essential to succeeding as a municipal bond investors,” Cummings said. “PIMCO will look to use its proved credit expertise to provide investors with a carefully selected, diversified portfolio of short maturity municipal bonds with the complete transparency and accessibility of an ETF.”