Industry description
The investment seeks maximum total return, consistent with preservation of capital and prudent investment management.
The fund invests at least 80% of its assets in debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal and California income tax. It invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in junk bonds that are rated Caa or higher by Moody's, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. The fund may invest in derivative instruments.