NPORT-EX 2 flexiblemunicipalincomefund.htm PIMCO FLEXIBLE MUNICIPAL INCOME FUND

Schedule of Investments PIMCO Flexible Municipal Income Fund

September 30, 2020

(Unaudited)

 

(AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF SHARES, CONTRACTS AND UNITS, IF ANY)

 

 

PRINCIPAL
AMOUNT
(000s)

 

MARKET
VALUE
(000s)

INVESTMENTS IN SECURITIES 123.7% ¤

 

 

 

 

CORPORATE BONDS & NOTES 3.3%

 

 

 

 

BANKING & FINANCE 2.3%

 

 

 

 

Barclays PLC
8.000% due 06/15/2024 •(g)(i)

$

800

$

852

BNP Paribas S.A.
7.000% due 08/16/2028 •(g)

 

1,300

 

1,501

Credit Agricole S.A.
7.875% due 01/23/2024 •(g)(i)

 

800

 

887

Credit Suisse Group AG
7.250% due 09/12/2025 •(g)(i)

 

800

 

868

ING Groep NV
5.750% due 11/16/2026 •(g)(i)

 

900

 

936

Toll Road Investors Partnership LP
0.000% due 02/15/2043 (d)

 

12,000

 

3,550

UBS Group AG
7.000% due 02/19/2025 •(g)(i)

 

930

 

1,038

 

 

 

 

9,632

INDUSTRIALS 1.0%

 

 

 

 

Hackensack Meridian Health, Inc.
2.875% due 09/01/2050

 

4,000

 

3,930

Total Corporate Bonds & Notes (Cost $13,564)

 

 

 

13,562

MUNICIPAL BONDS & NOTES 108.4%

 

 

 

 

ALABAMA 1.8%

 

 

 

 

Central Etowah County, Alabama Solid Waste Disposal Authority Revenue Bonds, Series 2020
6.000% due 07/01/2045

 

1,000

 

1,000

Jefferson County, Alabama Sewer Revenue Bonds, (AGM Insured), Series 2013
0.000% due 10/01/2046 (f)

 

1,000

 

980

Jefferson County, Alabama Sewer Revenue Bonds, Series 2013

 

 

 

 

0.000% due 10/01/2046 (f)

 

1,000

 

989

0.000% due 10/01/2050 (f)

 

4,000

 

3,947

Selma Industrial Development Board, Alabama Revenue Bonds, Series 2019
2.000% due 11/01/2033

 

500

 

522

 

 

 

 

7,438

ARIZONA 1.7%

 

 

 

 

Arizona Industrial Development Authority Revenue Bonds, Series 2020
7.750% due 07/01/2050

 

1,030

 

1,039

Arizona Industrial Development Authority Revenue Notes, Series 2020

 

 

 

 

4.000% due 07/01/2022

 

345

 

331

6.250% due 07/01/2024

 

1,700

 

1,712

Salt Verde Financial Corp., Arizona Revenue Bonds, Series 2007
5.000% due 12/01/2037

 

3,000

 

4,053

 

 

 

 

7,135

ARKANSAS 0.6%

 

 

 

 

Arkansas Development Finance Authority Revenue Bonds, Series 2019
4.500% due 09/01/2049

 

2,445

 

2,475

CALIFORNIA 9.9%

 

 

 

 

California Community Housing Agency Revenue Bonds, Series 2019

 

 

 

 

5.000% due 04/01/2049

 

3,000

 

3,330

5.000% due 08/01/2049

 

1,000

 

1,114

California Community Housing Agency Revenue Bonds, Series 2020
5.000% due 08/01/2050

 

750

 

843

California County Tobacco Securitization Agency Revenue Bonds, Series 2020
0.000% due 06/01/2055 (d)

 

5,200

 

926

California Health Facilities Financing Authority Revenue Bonds, Series 2011
3.000% due 03/01/2041

 

1,720

 

1,828

California Infrastructure & Economic Development Bank Revenue Notes, Series 2016
5.000% due 07/01/2026

 

2,000

 

2,325

California Municipal Finance Authority Revenue Bonds, Series 2020
5.000% due 07/01/2052

 

1,000

 

1,080

California Municipal Finance Authority Revenue Notes, Series 2019
4.000% due 07/15/2029

 

1,500

 

1,484

 

 

 

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

California Pollution Control Financing Authority Revenue Bonds, Series 2019
7.500% due 12/01/2039

 

1,000

 

290

California Statewide Communities Development Authority Revenue Bonds, Series 2018
5.500% due 12/01/2058

 

2,500

 

2,799

Hastings Campus Housing Finance Authority, California Revenue Bonds, Series 2020
5.000% due 07/01/2061

 

2,000

 

2,057

Inland Empire Tobacco Securitization Corp., California Revenue Bonds, Series 2019
3.678% due 06/01/2038

 

4,605

 

4,901

Los Angeles Department of Airports, California Revenue Bonds, Series 2019
4.000% due 05/15/2049

 

4,430

 

4,909

Los Angeles Department of Airports, California Revenue Bonds, Series 2020
5.000% due 05/15/2039

 

1,000

 

1,261

Northern California Energy Authority Revenue Bonds, Series 2018
4.000% due 07/01/2049

 

2,500

 

2,778

Regents of the University of California Medical Center Pooled Revenue Bonds, Series 2020
3.706% due 05/15/2120

 

3,000

 

3,190

Santa Clara Unified School District, California General Obligation Bonds, Series 2019
4.000% due 07/01/2048

 

1,000

 

1,119

Tobacco Securitization Authority of Northern California Revenue Bonds, Series 2005
0.000% due 06/01/2045 (d)

 

5,000

 

943

Tobacco Securitization Authority of Southern California Revenue Bonds, Series 2019

 

 

 

 

0.000% due 06/01/2054 (d)

 

1,000

 

171

5.000% due 06/01/2031

 

500

 

656

5.000% due 06/01/2032

 

1,000

 

1,304

5.000% due 06/01/2048

 

1,000

 

1,178

 

 

 

 

40,486

COLORADO 0.8%

 

 

 

 

Colorado Health Facilities Authority Revenue Bonds, Series 2019
4.000% due 08/01/2049

 

1,000

 

1,094

Dominion Water & Sanitation District, Colorado Revenue Bonds, Series 2016
5.750% due 12/01/2036

 

1,000

 

1,043

Village Metropolitan District, Colorado General Obligation Bonds, Series 2020
5.000% due 12/01/2040

 

1,000

 

1,044

 

 

 

 

3,181

CONNECTICUT 2.8%

 

 

 

 

Connecticut Special Tax Revenue State Special Tax Bonds, Series 2020

 

 

 

 

4.000% due 05/01/2039

 

1,350

 

1,561

5.000% due 05/01/2035

 

1,500

 

1,926

Connecticut State General Obligation Bonds, Series 2019
5.000% due 04/15/2039

 

1,000

 

1,249

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series 2017
5.000% due 07/01/2057

 

5,065

 

5,631

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series 2020
5.000% due 01/01/2045

 

1,000

 

1,062

 

 

 

 

11,429

FLORIDA 2.6%

 

 

 

 

Capital Trust Agency Inc, Florida Revenue Bonds, Series 2020
0.000% due 01/01/2035 (d)

 

3,000

 

1,173

Central Florida Expressway Authority Revenue Bonds, Series 2019
5.000% due 07/01/2044

 

1,000

 

1,241

Florida Development Finance Corp. Revenue Bonds, Series 2019
6.500% due 01/01/2049

 

2,500

 

2,167

Lee Memorial Health System, Florida Revenue Bonds, Series 2019
5.000% due 04/01/2033

 

1,000

 

1,161

Mid-Bay Bridge Authority, Florida Revenue Bonds, Series 2015
5.000% due 10/01/2035

 

1,000

 

1,131

Osceola County, Florida Transportation Revenue Bonds, Series 2020
0.000% due 10/01/2034 (d)

 

1,850

 

1,203

Tampa, Florida Revenue Bonds, Series 2020

 

 

 

 

0.000% due 09/01/2042 (d)

 

1,000

 

457

0.000% due 09/01/2045 (d)

 

1,850

 

740

4.000% due 07/01/2039

 

1,200

 

1,368

 

 

 

 

10,641

GEORGIA 3.6%

 

 

 

 

Atlanta Department of Airport Passenger Facility Charge, Georgia Revenue Bonds, Series 2019
4.000% due 07/01/2040

 

4,000

 

4,522

Atlanta Development Authority, Georgia Revenue Bonds, Series 2017
7.000% due 01/01/2040

 

400

 

334

Burke County, Georgia Development Authority Revenue Bonds, Series 2013
2.925% due 11/01/2053

 

1,000

 

1,068

Burke County, Georgia Development Authority Revenue Bonds, Series 2017
4.125% due 11/01/2045

 

1,500

 

1,666

Development Authority of Monroe County, Georgia Revenue Bonds, Series 2013
1.500% due 01/01/2039

 

1,000

 

1,006

Houston Healthcare System, Inc., Georgia Revenue Bonds, Series 2016
5.000% due 10/01/2031

 

940

 

1,001

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

Main Street Natural Gas Inc., Georgia Revenue Bonds, Series 2018
0.934% (0.67*US0001M + 0.830%) due 08/01/2048 ~

 

1,000

 

1,001

Main Street Natural Gas, Inc., Georgia Revenue Bonds, Series 2019
4.000% due 03/01/2050

 

1,750

 

2,034

Municipal Electric Authority of Georgia Revenue Bonds, Series 2019
4.000% due 01/01/2049

 

2,000

 

2,238

 

 

 

 

14,870

ILLINOIS 15.9%

 

 

 

 

Chicago Board of Education, Illinois General Obligation Bonds, (NPFGC Insured), Series 1998
0.000% due 12/01/2028 (d)

 

1,245

 

973

Chicago Board of Education, Illinois General Obligation Bonds, Series 2015
5.250% due 12/01/2035

 

2,000

 

2,136

Chicago Board of Education, Illinois General Obligation Notes, Series 2019
0.000% due 12/01/2026 (d)

 

1,000

 

830

Chicago O'Hare International Airport, Illinois Revenue Bonds, Series 2017
5.000% due 01/01/2052

 

1,000

 

1,140

Chicago O'Hare International Airport, Illinois Revenue Notes, Series 2013
5.000% due 01/01/2021

 

2,000

 

2,020

Chicago Park District, Illinois General Obligation Bonds, Series 2011
5.000% due 01/01/2026

 

1,280

 

1,336

Chicago Park District, Illinois General Obligation Bonds, Series 2020
4.000% due 01/01/2034 (a)

 

1,200

 

1,322

Chicago Transit Authority, Illinois Revenue Bonds, Series 2020

 

 

 

 

3.912% due 12/01/2040

 

1,000

 

1,083

4.000% due 12/01/2050

 

1,000

 

1,084

Chicago, Illinois General Obligation Bonds, (NPFGC Insured), Series 1999
0.000% due 01/01/2027 (d)

 

1,000

 

843

Chicago, Illinois General Obligation Bonds, Series 2002
5.000% due 01/01/2024

 

1,915

 

2,013

Chicago, Illinois General Obligation Bonds, Series 2008
5.630% due 01/01/2022

 

1,000

 

1,010

Chicago, Illinois General Obligation Bonds, Series 2011
7.781% due 01/01/2035

 

3,475

 

4,234

Chicago, Illinois General Obligation Bonds, Series 2014

 

 

 

 

5.000% due 01/01/2027

 

1,700

 

1,773

5.000% due 01/01/2036

 

1,000

 

1,020

Chicago, Illinois General Obligation Bonds, Series 2017
6.000% due 01/01/2038

 

2,000

 

2,188

Chicago, Illinois General Obligation Bonds, Series 2019

 

 

 

 

5.000% due 01/01/2039

 

1,000

 

1,030

5.500% due 01/01/2049

 

500

 

537

Chicago, Illinois General Obligation Bonds, Series 2020
5.000% due 01/01/2031

 

1,000

 

1,069

Chicago, Illinois Waterworks Revenue Bonds, Series 2014
4.000% due 11/01/2032

 

50

 

53

Illinois Finance Authority Revenue Bonds, Series 2008
4.000% due 11/01/2030

 

2,000

 

2,283

Illinois Finance Authority Revenue Bonds, Series 2017
5.125% due 02/15/2045

 

250

 

213

Illinois Finance Authority Revenue Bonds, Series 2019
5.000% due 11/01/2049

 

2,100

 

2,190

Illinois Finance Authority Revenue Bonds, Series 2020

 

 

 

 

4.000% due 08/15/2040

 

1,750

 

2,030

4.750% due 10/15/2040

 

800

 

814

Illinois State General Obligation Bonds, (BABs), Series 2010
7.350% due 07/01/2035

 

1,105

 

1,253

Illinois State General Obligation Bonds, Series 2014
5.250% due 02/01/2029

 

950

 

1,001

Illinois State General Obligation Notes, Series 2017

 

 

 

 

5.000% due 11/01/2022

 

3,000

 

3,124

5.000% due 11/01/2027

 

3,530

 

3,832

Illinois State General Obligation Notes, Series 2018
5.000% due 10/01/2023

 

1,500

 

1,590

Illinois State General Obligation Notes, Series 2020

 

 

 

 

5.375% due 05/01/2023

 

1,250

 

1,329

5.500% due 05/01/2030

 

1,000

 

1,145

Illinois State Revenue Bonds, Series 2011
5.000% due 06/15/2029

 

1,000

 

1,020

Illinois State Revenue Bonds, Series 2013
5.000% due 06/15/2026

 

3,215

 

3,467

Illinois State Revenue Notes, Series 2013
5.000% due 06/15/2022

 

3,000

 

3,169

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (FGIC Insured), Series 2002
0.000% due 06/15/2034 (d)

 

1,000

 

629

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (NPFGC Insured), Series 2002
0.000% due 06/15/2035 (d)

 

2,000

 

1,208

Regional Transportation Authority, Illinois Revenue Bonds, (NPFGC Insured), Series 2003
5.750% due 06/01/2033

 

2,000

 

2,696

Sales Tax Securitization Corp., Illinois Revenue Bonds, Series 2020
2.957% due 01/01/2032

 

2,000

 

2,106

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

Sales Tax Securitization Corp., Illinois Revenue Notes, Series 2020
5.000% due 01/01/2028

 

2,000

 

2,440

 

 

 

 

65,233

INDIANA 1.9%

 

 

 

 

Indiana Finance Authority Revenue Bonds, Series 2012
3.000% due 11/01/2030

 

1,000

 

998

Indiana Finance Authority Revenue Bonds, Series 2019
7.000% due 03/01/2039

 

6,000

 

5,668

Indiana Health & Educational Facilities Financing Authority Revenue Bonds, Series 2006
5.000% due 11/15/2046

 

1,000

 

1,186

 

 

 

 

7,852

KENTUCKY 2.4%

 

 

 

 

Kentucky Economic Development Finance Authority Revenue Bonds, Series 2016
6.000% due 11/15/2036

 

685

 

602

Kentucky Public Energy Authority Revenue Bonds, Series 2018

 

 

 

 

4.000% due 04/01/2048

 

2,000

 

2,209

4.000% due 01/01/2049

 

2,500

 

2,803

Kentucky State Property & Building Commission Revenue Bonds, Series 2019

 

 

 

 

4.000% due 11/01/2035

 

1,000

 

1,145

4.000% due 11/01/2036

 

1,000

 

1,138

Owen County, Kentucky Revenue Bonds, Series 2019
2.450% due 06/01/2039

 

2,000

 

2,152

 

 

 

 

10,049

LOUISIANA 2.4%

 

 

 

 

Louisiana Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series 2010
6.500% due 11/01/2035

 

1,000

 

1,003

Louisiana Public Facilities Authority Revenue Bonds, Series 2017
0.000% due 10/01/2029 (f)

 

305

 

297

Parish of St James, Louisiana Revenue Bonds, Series 2010

 

 

 

 

6.350% due 07/01/2040

 

300

 

357

6.350% due 10/01/2040

 

2,200

 

2,619

Parish of St James, Louisiana Revenue Bonds, Series 2011
5.850% due 08/01/2041

 

2,500

 

2,738

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017
2.100% due 06/01/2037

 

2,750

 

2,768

 

 

 

 

9,782

MAINE 0.3%

 

 

 

 

Finance Authority of Maine Revenue Bonds, Series 2019
5.250% due 06/15/2034 ^(b)

 

500

 

275

Maine Health & Higher Educational Facilities Authority Revenue Bonds, Series 2013
5.000% due 07/01/2043

 

1,000

 

1,042

 

 

 

 

1,317

MARYLAND 0.3%

 

 

 

 

Maryland Department of Transportation State Revenue Bonds, Series 2019
4.000% due 10/01/2032

 

1,080

 

1,277

MASSACHUSETTS 0.5%

 

 

 

 

Massachusetts School Building Authority Revenue Bonds, Series 2019
5.000% due 02/15/2044

 

1,500

 

1,876

MICHIGAN 1.1%

 

 

 

 

Detroit City School District, Michigan General Obligation Bonds, (AGM/Q-SBLF Insured), Series 2001
6.000% due 05/01/2029

 

500

 

636

Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2008

 

 

 

 

0.000% due 06/01/2046 (d)

 

12,000

 

1,364

0.000% due 06/01/2058 (d)

 

50,000

 

2,476

 

 

 

 

4,476

MINNESOTA 0.3%

 

 

 

 

St Paul Park, Minnesota Revenue Bonds, Series 2018
5.000% due 05/01/2053

 

1,000

 

1,068

MISSOURI 0.3%

 

 

 

 

Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series 2019
4.000% due 02/15/2049

 

1,000

 

1,118

NEW HAMPSHIRE 0.6%

 

 

 

 

New Hampshire Business Finance Authority Revenue Notes, Series 2019
2.150% due 09/01/2025

 

1,000

 

1,039

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

New Hampshire Health and Education Facilities Authority Act Revenue Bonds, Series 2020
5.000% due 08/01/2059

 

1,000

 

1,454

 

 

 

 

2,493

NEW JERSEY 3.8%

 

 

 

 

Atlantic City, New Jersey General Obligation Bonds, Series 2015
6.375% due 03/01/2030

 

1,085

 

1,227

New Jersey Economic Development Authority Revenue Bonds, Series 2012
5.000% due 06/15/2023

 

500

 

518

New Jersey Economic Development Authority Revenue Notes, Series 2017
5.000% due 06/15/2027

 

1,450

 

1,717

New Jersey Economic Development Authority Revenue Notes, Series 2019
5.969% due 09/01/2026

 

4,750

 

5,615

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series 2010
0.000% due 12/15/2032 (d)

 

2,000

 

1,339

Tobacco Settlement Financing Corp., New Jersey Revenue Bonds, Series 2018

 

 

 

 

5.000% due 06/01/2046

 

3,470

 

3,924

5.250% due 06/01/2046

 

1,000

 

1,181

 

 

 

 

15,521

NEW YORK 14.0%

 

 

 

 

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2011
0.654% (0.67*US0001M + 0.550%) due 11/01/2041 ~

 

1,000

 

946

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2013
0.924% (0.67* US0001M + 0.820%) due 11/01/2026 ~

 

2,000

 

1,939

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2020
4.000% due 11/15/2049

 

1,250

 

1,214

Metropolitan Transportation Authority, New York Revenue Notes, Series 2020

 

 

 

 

4.000% due 02/01/2022

 

1,500

 

1,516

5.000% due 02/01/2023

 

1,030

 

1,063

New York City Housing Development Corp. Revenue Bonds, Series 2013
5.250% due 07/01/2031

 

1,000

 

1,125

New York City Housing Development Corp. Revenue Bonds, Series 2014
4.500% due 02/15/2048

 

3,500

 

3,662

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2019
4.000% due 11/01/2037

 

1,000

 

1,159

New York City, New York Industrial Development Agency Revenue Notes, (AGM Insured), Series 2020
5.000% due 03/01/2028 (a)

 

1,350

 

1,696

New York County, New York Tobacco Trust V Revenue Bonds, Series 2005
0.000% due 06/01/2055 (d)

 

16,000

 

884

New York Liberty Development Corp. Revenue Bonds, Series 2014
5.000% due 11/15/2044

 

4,000

 

4,105

New York Power Authority Revenue Bonds, Series 2020

 

 

 

 

4.000% due 11/15/2055

 

2,600

 

3,001

4.000% due 11/15/2060

 

1,500

 

1,724

New York State Dormitory Authority Revenue Bonds, Series 2019
5.000% due 05/01/2048

 

1,500

 

1,777

New York State Energy Research & Development Authority Revenue Bonds, Series 1994
3.500% due 10/01/2029

 

3,000

 

3,405

New York State Environmental Facilities Corp. Revenue Bonds, Series 2020
2.750% due 09/01/2050

 

1,000

 

1,009

New York State Thruway Authority Revenue Bonds, Series 2020
3.000% due 01/01/2048

 

1,000

 

1,039

New York State Urban Development Corp. Revenue Bonds, Series 2019
5.000% due 03/15/2042

 

1,000

 

1,217

New York Transportation Development Corp. Revenue Bonds, Series 2016
5.000% due 08/01/2031

 

3,500

 

3,498

New York Transportation Development Corp. Revenue Bonds, Series 2018

 

 

 

 

5.000% due 01/01/2031

 

1,580

 

1,712

5.000% due 01/01/2036

 

500

 

531

New York Transportation Development Corp. Revenue Bonds, Series 2020

 

 

 

 

4.375% due 10/01/2045

 

1,500

 

1,509

5.250% due 08/01/2031

 

3,000

 

3,101

New York Transportation Development Corp. Revenue Notes, Series 2018
5.000% due 01/01/2025

 

2,000

 

2,152

New York Transportation Development Corp. Revenue Notes, Series 2020
4.000% due 10/01/2030

 

1,500

 

1,536

Onondaga County, New York Trust for Cultural Resources Revenue Bonds, Series 2019
4.000% due 12/01/2049

 

1,325

 

1,519

Port Authority of New York & New Jersey Revenue Bonds, Series 2019
4.000% due 11/01/2059

 

2,000

 

2,185

Suffolk Tobacco Asset Securitization Corp., New York Revenue Bonds, Series 2008
0.000% due 06/01/2048 (d)

 

16,730

 

1,631

Troy Capital Resource Corp., New York Revenue Bonds, Series 2020
5.000% due 09/01/2035

 

1,000

 

1,217

TSASC Inc, New York Revenue Bonds, Series 2016
5.000% due 06/01/2045

 

1,250

 

1,298

TSASC Inc, New York Revenue Notes, Series 2017
5.000% due 06/01/2022

 

1,790

 

1,907

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

Yonkers Economic Development Corp., New York Revenue Bonds, Series 2019
5.000% due 10/15/2054

 

930

 

970

 

 

 

 

57,247

NORTH CAROLINA 3.6%

 

 

 

 

North Carolina Medical Care Commission Revenue Bonds, Series 2020
4.000% due 11/01/2052 (h)

 

10,800

 

12,108

North Carolina Turnpike Authority Revenue Bonds, Series 2019

 

 

 

 

0.000% due 01/01/2040 (d)

 

1,000

 

592

0.000% due 01/01/2042 (d)

 

1,500

 

821

4.000% due 01/01/2055

 

1,000

 

1,096

 

 

 

 

14,617

OHIO 7.1%

 

 

 

 

Adams County, Ohio Revenue Bonds, Series 2019
6.900% due 10/01/2049

 

2,500

 

2,555

Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series 2020

 

 

 

 

0.000% due 06/01/2057 (d)

 

25,000

 

3,524

3.000% due 06/01/2048

 

2,500

 

2,431

4.000% due 06/01/2048

 

2,500

 

2,735

5.000% due 06/01/2055

 

5,215

 

5,552

Franklin County, Ohio Convention Facilities Authority Revenue Bonds, Series 2019
5.000% due 12/01/2044

 

1,000

 

988

Montgomery County, Ohio Revenue Bonds, Series 2018
6.250% due 04/01/2049

 

2,185

 

1,113

Ohio Air Quality Development Authority Revenue Bonds, Series 2005
2.100% due 04/01/2028

 

1,000

 

1,037

Ohio Air Quality Development Authority Revenue Bonds, Series 2014
2.400% due 12/01/2038

 

1,000

 

1,036

Ohio Air Quality Development Authority Revenue Bonds, Series 2019
5.000% due 07/01/2049

 

1,000

 

1,023

Ohio Air Quality Development Authority Revenue Notes, Series 2019
3.250% due 09/01/2029

 

2,000

 

2,060

Ohio State Revenue Bonds, Series 2020

 

 

 

 

5.000% due 11/15/2032

 

1,040

 

1,272

5.000% due 11/15/2034

 

1,720

 

2,082

Southern Ohio Port Authority Revenue Notes, Series 2020
6.250% due 12/01/2025 (a)

 

1,500

 

1,491

 

 

 

 

28,899

OKLAHOMA 0.7%

 

 

 

 

Oklahoma Development Finance Authority Revenue Bonds, Series 2019
4.000% due 08/01/2035

 

1,000

 

1,045

Oklahoma Development Finance Authority Revenue Notes, Series 2020
1.625% due 07/06/2023

 

2,000

 

1,999

 

 

 

 

3,044

OREGON 2.7%

 

 

 

 

Clackamas County, Oregon Hospital Facility Authority Revenue Bonds, Series 2020
5.375% due 11/15/2055

 

750

 

799

Medford Hospital Facilities Authority, Oregon Revenue Bonds, Series 2020
4.000% due 08/15/2045 (h)

 

5,000

 

5,756

Oregon State Business Development Commission Revenue Bonds, Series 2017
6.500% due 04/01/2031 ^(b)

 

400

 

260

Oregon State Business Development Commission Revenue Bonds, Series 2020
0.000% due 04/01/2037 (f)

 

1,750

 

1,519

Salem-Keizer School District No 24J, Oregon General Obligation Bonds, Series 2020
0.000% due 06/15/2033 (f)

 

2,200

 

2,839

 

 

 

 

11,173

PENNSYLVANIA 5.2%

 

 

 

 

Berks County, Pennsylvania Industrial Development Authority Revenue Bonds, Series 2017
4.000% due 11/01/2050

 

2,000

 

1,935

Berks County, Pennsylvania Municipal Authority Revenue Bonds, Series 2020
5.000% due 02/01/2040

 

1,000

 

1,112

Blythe Township Solid Waste Authority, Pennsylvania Revenue Bonds, Series 2017
7.750% due 12/01/2037

 

2,000

 

2,208

Geisinger Authority, Pennsylvania Revenue Bonds, Series 2020
4.000% due 04/01/2050 (h)

 

10,000

 

11,302

Luzerne County, Pennsylvania Industrial Development Authority Revenue Bonds, Series 2019
2.450% due 12/01/2039

 

2,000

 

2,171

Pennsylvania Economic Development Financing Authority Revenue Notes, Series 2015
5.000% due 12/31/2022

 

1,000

 

1,091

Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series 2015
5.000% due 09/01/2045

 

1,000

 

1,112

Philadelphia Authority for Industrial Development, Pennsylvania Revenue Bonds, Series 2017
5.500% due 12/01/2058

 

500

 

518

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

 

 

 

 

21,449

PUERTO RICO 7.9%

 

 

 

 

Commonwealth of Puerto Rico General Obligation Bonds, Series 2001
5.125% due 07/01/2031 ^(b)

 

1,500

 

1,074

Commonwealth of Puerto Rico General Obligation Bonds, Series 2003
5.000% due 07/01/2033 ^(b)

 

1,425

 

1,017

Commonwealth of Puerto Rico General Obligation Bonds, Series 2012

 

 

 

 

5.000% due 07/01/2041 ^(b)

 

1,000

 

633

5.500% due 07/01/2039 ^(b)

 

1,000

 

665

Commonwealth of Puerto Rico General Obligation Bonds, Series 2014
8.000% due 07/01/2035 ^(b)

 

1,500

 

956

GDB Debt Recovery Authority of Puerto Rico Revenue Bonds, Series 2018
7.500% due 08/20/2040 ^(b)

 

5,724

 

3,950

Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds, Series 2012
5.250% due 07/01/2042

 

1,000

 

1,017

Puerto Rico Commonwealth Government Employees Retirement System Revenue Bonds, Series 2008
6.150% due 07/01/2038 ^(b)

 

1,000

 

155

Puerto Rico Convention Center District Authority Revenue Bonds, (AGC Insured), Series 2006
4.500% due 07/01/2036

 

1,500

 

1,500

Puerto Rico Electric Power Authority Revenue Bonds, Series 2007
5.000% due 07/01/2032 ^(b)

 

1,345

 

958

Puerto Rico Electric Power Authority Revenue Bonds, Series 2008
5.500% due 07/01/2038

 

2,500

 

1,787

Puerto Rico Electric Power Authority Revenue Bonds, Series 2010

 

 

 

 

5.250% due 07/01/2021 ^(b)

 

235

 

167

5.250% due 07/01/2022 ^(b)

 

600

 

428

5.250% due 07/01/2023 ^(b)

 

3,540

 

2,518

5.250% due 07/01/2027 ^(b)

 

500

 

356

5.250% due 07/01/2030 ^(b)

 

300

 

214

Puerto Rico Electric Power Authority Revenue Bonds, Series 2012
5.000% due 07/01/2029 ^(b)

 

335

 

239

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

 

 

 

0.000% due 07/01/2051 (d)

 

24,839

 

5,107

4.750% due 07/01/2053

 

1,000

 

1,043

5.000% due 07/01/2058

 

1,600

 

1,695

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2019

 

 

 

 

4.329% due 07/01/2040

 

750

 

766

4.550% due 07/01/2040

 

1,450

 

1,503

4.784% due 07/01/2058

 

4,490

 

4,694

 

 

 

 

32,442

RHODE ISLAND 0.1%

 

 

 

 

Tobacco Settlement Financing Corp., Rhode Island Revenue Bonds, Series 2007
0.000% due 06/01/2052 (d)

 

1,700

 

258

SOUTH CAROLINA 2.6%

 

 

 

 

South Carolina Jobs-Economic Development Authority Revenue Bonds, Series 2020

 

 

 

 

4.000% due 12/01/2044 (h)

 

5,000

 

5,691

5.000% due 12/01/2046

 

2,000

 

2,488

South Carolina Public Service Authority Revenue Bonds, Series 2013
5.784% due 12/01/2041

 

1,000

 

1,374

South Carolina State Housing Finance & Development Authority Revenue Bonds, (GNMA/FNMA/FHLMC Insured), Series 2014
3.800% due 07/01/2034

 

1,000

 

1,038

 

 

 

 

10,591

TENNESSEE 1.2%

 

 

 

 

Shelby County, Tennessee Health Educational & Housing Facilities Board Revenue Bonds, Series 2019
5.750% due 10/01/2059

 

1,000

 

928

Tennessee Energy Acquisition Corp. Revenue Bonds, Series 2017
4.000% due 05/01/2048

 

1,000

 

1,077

Tennessee Energy Acquisition Corp. Revenue Bonds, Series 2018
4.000% due 11/01/2049

 

2,500

 

2,852

 

 

 

 

4,857

TEXAS 5.1%

 

 

 

 

Brazoria County, Texas Industrial Development Corp. Revenue Bonds, Series 2019

 

 

 

 

7.000% due 03/01/2039

 

1,000

 

1,016

9.000% due 03/01/2039

 

2,600

 

2,916

Central Texas Turnpike System Revenue Bonds, Series 2015
5.000% due 08/15/2042

 

1,000

 

1,116

Dallas Fort Worth International Airport, Texas Revenue Bonds, Series 2014
5.250% due 11/01/2026

 

1,000

 

1,129

Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2020
4.000% due 10/01/2049

 

3,000

 

3,461

Houston, Texas Airport System Revenue Notes, Series 2020
5.000% due 07/15/2027

 

2,500

 

2,600

New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2019
5.000% due 12/01/2054

 

250

 

268

Northside Independent School District, Texas General Obligation Bonds, (PSF Insured), Series 2019
1.600% due 08/01/2049

 

250

 

260

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

San Antonio, Texas Electric & Gas Systems Revenue Bonds, Series 2019
1.750% due 12/01/2045

 

1,500

 

1,563

Texas Municipal Gas Acquisition and Supply Corp. I Revenue Bonds, Series 2006
1.618% due 12/15/2026 ~

 

3,000

 

2,895

Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds, Series 2019
5.000% due 12/31/2033

 

3,000

 

3,744

 

 

 

 

20,968

VIRGINIA 1.1%

 

 

 

 

Amelia County, Virginia Industrial Development Authority Revenue Bonds, Series 2002
3.000% due 04/01/2027

 

1,000

 

1,012

Virginia Small Business Financing Authority Revenue Bonds, Series 2017
5.000% due 12/31/2052

 

3,000

 

3,367

 

 

 

 

4,379

WASHINGTON 1.4%

 

 

 

 

Washington Health Care Facilities Authority Revenue Bonds, Series 2019

 

 

 

 

4.000% due 08/01/2044

 

3,000

 

3,314

5.000% due 08/01/2049

 

2,000

 

2,325

 

 

 

 

5,639

WEST VIRGINIA 0.2%

 

 

 

 

Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
0.000% due 06/01/2047 (d)

 

13,500

 

739

WISCONSIN 1.9%

 

 

 

 

Public Finance Authority, Wisconsin Revenue Bonds, Series 2017
7.000% due 01/01/2050

 

1,000

 

925

Public Finance Authority, Wisconsin Revenue Bonds, Series 2018
6.375% due 01/01/2048

 

2,000

 

1,626

Public Finance Authority, Wisconsin Revenue Bonds, Series 2019
5.875% due 10/01/2054

 

1,500

 

1,502

Public Finance Authority, Wisconsin Revenue Bonds, Series 2020

 

 

 

 

5.000% due 01/01/2055

 

1,000

 

1,004

5.250% due 03/01/2055

 

1,500

 

1,584

Public Finance Authority, Wisconsin Revenue Notes, Series 2017
6.250% due 08/01/2027

 

1,500

 

1,292

 

 

 

 

7,933

Total Municipal Bonds & Notes (Cost $423,387)

 

 

 

443,952

 

 

SHARES

 

 

MUTUAL FUNDS 2.1%

 

 

 

 

BlackRock MuniHoldings California Quality Fund, Inc.

 

44,466

 

622

BlackRock MuniHoldings Quality Fund, Inc.

 

20,390

 

263

BlackRock MuniYield California Fund, Inc.

 

21,277

 

295

BlackRock MuniYield California Quality Fund, Inc.

 

29,451

 

423

BlackRock New York Municipal Income Trust

 

40,759

 

553

Nuveen California Quality Municipal Income Fund

 

154,979

 

2,256

Nuveen Municipal Credit Income Fund

 

150,880

 

2,216

Nuveen Quality Municipal Income Fund

 

126,312

 

1,834

Total Mutual Funds (Cost $8,009)

 

 

 

8,462

PREFERRED SECURITIES 0.7%

 

 

 

 

BANKING & FINANCE 0.7%

 

 

 

 

Bank of America Corp.
5.875% due 03/15/2028 •(g)

 

1,040,000

 

1,124

JPMorgan Chase & Co.

 

 

 

 

5.000% due 08/01/2024 •(g)

 

800,000

 

799

6.100% due 10/01/2024 •(g)

 

1,000,000

 

1,052

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

Total Preferred Securities (Cost $2,997)

 

 

 

2,975

SHORT-TERM INSTRUMENTS 9.2%

 

 

 

 

REPURCHASE AGREEMENTS (j) 0.6%

 

 

 

2,395

 

 

PRINCIPAL
AMOUNT
(000s)

 

 

SHORT-TERM NOTES 2.4%

 

 

 

 

Federal Home Loan Bank
0.000% due 10/14/2020 - 11/27/2020 (d)(e)

$

7,900

 

7,900

Suffolk County, New York General Obligation Notes, Series 2020
5.000% due 03/19/2021

 

2,000

 

2,037

 

 

 

 

9,937

U.S. TREASURY BILLS 4.1%

 

 

 

 

0.102% due 10/08/2020 - 12/03/2020 (c)(d)

 

16,800

 

16,798

U.S. TREASURY CASH MANAGEMENT BILLS 2.1%

 

 

 

 

0.094% due 01/05/2021 (d)(e)

 

8,600

 

8,598

Total Short-Term Instruments (Cost $37,699)

 

 

 

37,728

Total Investments in Securities (Cost $485,656)

 

 

 

506,679

Total Investments 123.7% (Cost $485,656)

 

 

$

506,679

Remarketable Variable Rate MuniFund Term Preferred Shares, at liquidation value (12.2)%

 

 

 

(50,000)

Variable Rate MuniFund Term Preferred Shares, at liquidation value (6.0)%

 

 

 

(24,568)

Financial Derivative Instruments (k)(l) 0.0%(Cost or Premiums, net $0)

 

 

 

202

Other Assets and Liabilities, net (5.5)%

 

 

 

(22,628)

Net Assets Applicable to Common Shareholders 100.0%

 

 

$

409,685

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

* A zero balance may reflect actual amounts rounding to less than one thousand.

 

¤

The geographical classification of foreign (non-U.S.) securities in this report, if any, are classified by the country of incorporation of a holding. In certain instances, a security's country of incorporation may be different from its country of economic exposure.

^

Security is in default.

«

Security valued using significant unobservable inputs (Level 3).

~

Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

•

Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

(a)

When-issued security.

(b)

Security is not accruing income as of the date of this report.

(c)

Coupon represents a weighted average yield to maturity.

(d)

Zero coupon security.

(e)

Coupon represents a yield to maturity.

(f)

Security becomes interest bearing at a future date.

(g)

Perpetual maturity; date shown, if applicable, represents next contractual call date.

(h)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction.

(i)

Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(j)

REPURCHASE AGREEMENTS:

Counterparty

Lending
Rate

Settlement
Date

Maturity
Date

 

Principal
Amount

Collateralized By

 

Collateral
(Received)

 

Repurchase
Agreements,
at Value

 

Repurchase
Agreement
Proceeds
to be
Received

FICC

0.000%

09/30/2020

10/01/2020

$

2,395

U.S. Treasury Notes 1.750% due 07/31/2021

$

(2,443)

$

2,395

$

2,395

Total Repurchase Agreements

 

$

(2,443)

$

2,395

$

2,395

(k)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

FUTURES CONTRACTS:

SHORT FUTURES CONTRACTS

 

Variation Margin

Description

 

 

 

Expiration
Month

 

# of
Contracts

 

Notional
Amount

 

 

Unrealized
Appreciation/
(Depreciation)

 

Asset

 

Liability

U.S. Treasury 10-Year Note December Futures

12/2020

 

207

$

(28,883)

 

$

(18)

$

52

$

0

U.S. Treasury Ultra Long-Term Bond December Futures

12/2020

 

18

 

(3,993)

 

 

29

 

36

 

0

Total Futures Contracts

 

$

11

$

88

$

0

Cash of $551 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of September 30, 2020.

(l)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

SWAP AGREEMENTS:

TOTAL RETURN SWAPS ON SECURITIES

 

Swap Agreements, at Value

Counterparty

Pay/Receive(1)

Underlying
Reference

# of Shares

Financing Rate

Payment
Frequency

Maturity
Date

 

Notional
Amount

 

Premiums

Paid/

(Received)

 

Unrealized
Appreciation/
(Depreciation)

 

Asset

 

Liability

BRC

Receive

New Jersey Economic Development Authority «

N/A

0.799% (1-Month USD-LIBOR plus a specified spread)

Semi-Annual

03/15/2021

$

3,000

$

0

$

114

$

114

$

0

Total Swap Agreements

$

0

$

114

$

114

$

0

Schedule of Investments PIMCO Flexible Municipal Income Fund (Cont.)

September 30, 2020

(Unaudited)

 

(1)

Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net return on such underlying reference.

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of September 30, 2020 in valuing the Fund's assets and liabilities:

 

Category and Subcategory

Level 1

Level 2

Level 3

Fair Value
at 09/30/2020

Investments in Securities, at Value

Corporate Bonds & Notes

 

Banking & Finance

$

0

$

9,632

$

0

$

9,632

 

 

Industrials

 

0

 

3,930

 

0

 

3,930

 

Municipal Bonds & Notes

 

Alabama

 

0

 

7,438

 

0

 

7,438

 

 

Arizona

 

0

 

7,135

 

0

 

7,135

 

 

Arkansas

 

0

 

2,475

 

0

 

2,475

 

 

California

 

0

 

40,486

 

0

 

40,486

 

 

Colorado

 

0

 

3,181

 

0

 

3,181

 

 

Connecticut

 

0

 

11,429

 

0

 

11,429

 

 

Florida

 

0

 

10,641

 

0

 

10,641

 

 

Georgia

 

0

 

14,870

 

0

 

14,870

 

 

Illinois

 

0

 

65,233

 

0

 

65,233

 

 

Indiana

 

0

 

7,852

 

0

 

7,852

 

 

Kentucky

 

0

 

10,049

 

0

 

10,049

 

 

Louisiana

 

0

 

9,782

 

0

 

9,782

 

 

Maine

 

0

 

1,317

 

0

 

1,317

 

 

Maryland

 

0

 

1,277

 

0

 

1,277

 

 

Massachusetts

 

0

 

1,876

 

0

 

1,876

 

 

Michigan

 

0

 

4,476

 

0

 

4,476

 

 

Minnesota

 

0

 

1,068

 

0

 

1,068

 

 

Missouri

 

0

 

1,118

 

0

 

1,118

 

 

New Hampshire

 

0

 

2,493

 

0

 

2,493

 

 

New Jersey

 

0

 

15,521

 

0

 

15,521

 

 

New York

 

0

 

57,247

 

0

 

57,247

 

 

North Carolina

 

0

 

14,617

 

0

 

14,617

 

 

Ohio

 

0

 

28,899

 

0

 

28,899

 

 

Oklahoma

 

0

 

3,044

 

0

 

3,044

 

 

Oregon

 

0

 

11,173

 

0

 

11,173

 

 

Pennsylvania

 

0

 

21,449

 

0

 

21,449

 

 

Puerto Rico

 

0

 

32,442

 

0

 

32,442

 

 

Rhode Island

 

0

 

258

 

0

 

258

 

 

South Carolina

 

0

 

10,591

 

0

 

10,591

 

 

Tennessee

 

0

 

4,857

 

0

 

4,857

 

 

Texas

 

0

 

20,968

 

0

 

20,968

 

 

Virginia

 

0

 

4,379

 

0

 

4,379

 

 

Washington

 

0

 

5,639

 

0

 

5,639

 

 

West Virginia

 

0

 

739

 

0

 

739

 

 

Wisconsin

 

0

 

7,933

 

0

 

7,933

 

Mutual Funds

 

8,462

 

0

 

0

 

8,462

 

Preferred Securities

 

Banking & Finance

 

0

 

2,975

 

0

 

2,975

 

Short-Term Instruments

 

Repurchase Agreements

 

0

 

2,395

 

0

 

2,395

 

 

Short-Term Notes

 

0

 

9,937

 

0

 

9,937

 

 

U.S. Treasury Bills

 

0

 

16,798

 

0

 

16,798

 

 

U.S. Treasury Cash Management Bills

 

0

 

8,598

 

0

 

8,598

 

Total Investments

$

8,462

$

498,217

$

0

$

506,679

 

Financial Derivative Instruments - Assets

Exchange-traded or centrally cleared

 

88

 

0

 

0

 

88

 

Over the counter

 

0

 

0

 

114

 

114

 

 

$

88

$

0

$

114

$

202

 

Total Financial Derivative Instruments

$

88

$

0

$

114

$

202

 

Totals

$

8,550

$

498,217

$

114

$

506,881

 

 

There were no significant transfers into or out of Level 3 during the period ended September 30, 2020.

Notes to Financial Statements  

1. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies The net asset value (“NAV”) of the Fund's shares is determined by dividing the total value of portfolio investments and other assets attributable to the Fund, less any liabilities, by the total number of shares outstanding of the Fund.

 

On each day that the New York Stock Exchange (“NYSE”) is open, Fund shares are ordinarily valued as of the close of regular trading (normally 4:00 p.m., Eastern time) (“NYSE Close”). Information that becomes known to the Fund or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. If regular trading on the NYSE closes earlier than scheduled, the Fund reserves the right to either (i) calculate its NAV as of the earlier closing time or (ii) calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day. The Fund generally does not calculate its NAV on days during which the NYSE is closed. However, if the NYSE is closed on a day it would normally be open for business, the Fund reserves the right to calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day or such other time that the Fund may determine.

 

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Fund's approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Fund will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by Pacific Investment Management Company LLC (“PIMCO” or the “Manager”) to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Fund's investments in open-end management investment companies, other than exchange-traded funds, are valued at the NAVs of such investments.

 

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Fund’s Board of Trustees (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Fund may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Fund may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) relating to the foreign (non-U.S.) security being fair valued between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Fund is not open for business, which may result in the Fund's portfolio investments being affected when shareholders are unable to buy or sell shares.

 

Senior secured floating rate loans for which an active secondary market exists to a reliable degree are valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree are valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

 

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Fund's shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Fund is not open for business. As a result, to the extent that the Fund holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Fund's next calculated NAV.

 

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to PIMCO the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Fund's securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Manager, the responsibility for monitoring significant events that may materially affect the values of the Fund's securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

 

When the Fund uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Fund’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing, the Fund cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold.

 

 

Notes to Financial Statements (Cont.)

 

 

(b) Fair Value Hierarchy U.S. GAAP describes fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

 

• Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

 

• Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

 

• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

 

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Fund.

 

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Fund's assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Fund.

 

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

 

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services' internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

 

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

 

Level 3 trading assets and trading liabilities, at fair value When a fair valuation method is applied by PIMCO that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

 

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

 

2. FEDERAL INCOME TAX MATTERS

The Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

 

The Fund may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

 

In accordance with U.S. GAAP, the Manager has reviewed the Fund's tax positions for all open tax years. As of September 30, 2020, the Fund has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

 

The Fund files U.S. federal, state, and local tax returns as required. The Fund's tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

 

 

 

 

 

Glossary: (abbreviations that may be used in the preceding statements)       (Unaudited)
                     
Counterparty Abbreviations:                    
BRC   Barclays Bank PLC   FICC   Fixed Income Clearing Corporation         
                     
Currency Abbreviations:                    
USD (or $)   United States Dollar                
                     
Index/Spread Abbreviations:                    
US0001M   1 Month USD Swap Rate   US0003M   3 Month USD Swap Rate        
                     
Municipal Bond or Agency Abbreviations:                    
AGC   Assured Guaranty Corp.   FHLMC   Federal Home Loan Mortgage Corp.   NPFGC   National Public Finance Guarantee Corp.
AGM   Assured Guaranty Municipal   FNMA   Federal National Mortgage Association   PSF   Public School Fund
FGIC   Financial Guaranty Insurance Co.   GNMA   Government National Mortgage Association   Q-SBLF   Qualified School Bond Loan Fund
                     
Other  Abbreviations:                    
BABs   Build America Bonds   LIBOR   London Interbank Offered Rate   TBA   To-Be-Announced