Pimco releases active municipal bond fund

The Pimco Intermediate Municipal Bond Strategy Fund uses active management to build a portfolio of primarily high quality, intermediate maturity municipal bonds. The income from these bonds is exempt from federal tax, alternative minimum tax and in some cases, state tax. The ETF will be managed by John Cummings, executive vice president and head of Pimco's municipal bond desk. Cummings says: "The US fiscal outlook will likely include higher marginal tax rates in the years to come, raising the need for tax-efficient investments." He adds that municipalities and states also face a...