PIMCO Municipal Income Fund III (NYSE: PMX) is a closed-end management investment company that seeks to provide shareholders with a high level of tax-exempt income. Launched in 2007, the fund primarily invests in investment-grade municipal bonds issued by U.S. state and local governments. With oversight from Pacific Investment Management Company LLC (“PIMCO”), one of the world’s largest fixed income managers, PMX aims to balance income generation with capital preservation for its investors.
The fund’s portfolio is diversified across various sectors, including general obligation bonds, revenue bonds, and essential infrastructure projects such as utilities, transportation and healthcare facilities. By focusing on high-quality issuers and conducting rigorous credit analysis, PMX strives to mitigate credit and interest rate risks. The fund may also selectively allocate to unrated or below-investment-grade municipal securities when the PIMCO research team identifies opportunities for enhanced yield potential.
In order to enhance income, PMX employs leverage within prudent limits, borrowing against its assets to purchase additional municipal securities. The fund implements risk management techniques and maintains a disciplined approach to portfolio construction, seeking to preserve its net asset value while delivering consistent distributions. Shares of the fund trade on the NYSE, offering investors daily liquidity along with the potential benefits of an actively managed municipal bond portfolio.
Management of PIMCO Municipal Income Fund III is led by PIMCO’s municipal bond specialists based in Newport Beach, California, supported by a global team of analysts and traders. The fund’s board of trustees provides independent oversight of operations, compliance and shareholder interests. Leveraging PIMCO’s extensive resources and proprietary research capabilities, PMX strives to be a core allocation for investors seeking tax-advantaged income and professional municipal bond management.
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