Pimco launches MuniGO fund to zero in on quality municipal bonds

By Jennifer Chiou

New York, July 1 - Pimco announced the start of its Pimco MuniGO fund, which will focus on the highest-quality municipal bonds in an actively managed portfolio.

The fund is designed to offer attractive tax-exempt returns, according to a company release, which added that the MuniGO fund is the first mutual fund to offer investors a portfolio of intermediate maturity general obligation bonds from top-rated municipal issuers in addition to pre-refunded municipal bonds backed by U.S. Treasury and Agency securities.

Pimco executive vice president John Cummings, who heads the firm's municipal bond trading desk, is leading the fund.

"More than ever, municipal bonds are crucial for a wide array of portfolios, as investors face the potential for higher taxes and elevated risks across the financial markets," Cummings, the portfolio manager for the fund, said in the release.

"MuniGO taps into the many strengths of Pimco - including credit and yield curve analysis, portfolio construction and trade execution - to offer a unique fund that will focus on the highest-quality sectors of the municipal market."

The MuniGO fund aims to outperform its benchmark, the Barclays Capital Municipal GO Bond index, through active management of a portfolio of municipal bonds.

Pimco is an asset management firm based in Newport Beach, Calif.

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