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Pimco Funds changing the names of four municipal bond funds and other change

edited February 19 in Fund Discussions
See link for table of affected funds:

https://www.sec.gov/Archives/edgar/data/810893/000119312521047719/d125452d497.htm

Here is the other change as noted by @msf :

...In addition, effective March 1, 2021, the second paragraph of the “Purchases, Redemptions and Exchanges — Eligibility” section of the Prospectus is deleted in its entirety and replaced by the following:

In order to protect the interests of shareholders, PIMCO may find it necessary to limit new purchases of shares of each of the PIMCO National Municipal Opportunistic Value Fund and PIMCO California Municipal Opportunistic Value Fund when PIMCO determines that allowing additional inflows into those Funds could negatively affect a Fund’s ability to meet the applicable Fund’s investment objective. PIMCO may close the PIMCO National Municipal Opportunistic Value Fund and/or the PIMCO California Municipal Opportunistic Value Fund to (i) initial purchases by new investors or (ii) initial purchases by new investors and subsequent purchases by existing shareholders, in PIMCO’s sole discretion. Such a closure will not affect the rights of existing shareholders with respect to shares of the Funds held as of the date of the closure. In addition, during such a closure, the purchase of additional shares of the applicable Fund through dividend reinvestments will continue to be permitted. If the PIMCO California Municipal Opportunistic Value Fund and/or the PIMCO National Municipal Opportunistic Value Fund is closed, PIMCO may re-open the applicable Fund(s) to (i) subsequent purchases by existing shareholders or (ii) initial purchases by new investors and subsequent purchases by existing shareholders, as appropriate in light of market conditions, as determined by PIMCO in its sole discretion. Notice will be provided regarding such closures or re-openings.

In addition, effective March 1, 2021, the final paragraph of the “Purchases, Redemptions and Exchanges” section of the SAI is deleted in its entirety and replaced by the following:

In order to protect the interests of shareholders, PIMCO may find it necessary to limit new purchases of shares of each of the PIMCO National Municipal Opportunistic Value Fund and PIMCO California Municipal Opportunistic Value Fund when PIMCO determines that allowing additional inflows into those Funds could negatively affect a Fund’s ability to meet the applicable Fund’s investment objective. PIMCO may close the

PIMCO National Municipal Opportunistic Value Fund and/or the PIMCO California Municipal Opportunistic Value Fund to (i) initial purchases by new investors or (ii) initial purchases by new investors and subsequent purchases by existing shareholders, in PIMCO’s sole discretion. Such a closure will not affect the rights of existing shareholders with respect to shares of the Funds held as of the date of the closure. In addition, during such a closure, the purchase of additional shares of the applicable Fund through dividend reinvestments will continue to be permitted. If the PIMCO California Municipal Opportunistic Value Fund and/or the PIMCO National Municipal Opportunistic Value Fund is closed, PIMCO may re-open the applicable Fund(s) to (i) subsequent purchases by existing shareholders or (ii) initial purchases by new investors and subsequent purchases by existing shareholders, as appropriate in light of market conditions, as determined by PIMCO in its sole discretion. Notice will be provided regarding such closures or re-openings.

Comments

  • These are funds acquired from Gurtin Funds two years ago. PIMCO retained Gurtin as their submanager. The name change appears to be purely cosmetic for now, i.e. no change in management.

    The more significant section adds that PIMCO may soft or hard close the two "Opportunistic" funds.

    Wild speculation based on no additional information: Gurtin feels that it may not be able to manage the funds if they grow much larger, and PIMCO is debating whether to drop Gurtin or comply with its desire to slow inflows. I can't recall PIMCO closing any of its funds.
  • Per the PIMCO fundsite, the Gurtin funds are available only to certain advisors who employ a buy-and-hold strategy to avoid excess mutual fund flows.
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