Pimco Municipal Income Fund II of Beneficial Interest
Find Ratings Reports- Last Ratings Update:02/29/2024
- Price as of 02/29/2024 :$8.55
- Net Assets:$598.63 Million
- NAV:$8.92
- Premium-4.15%
- Peer Rank:110 of 116
- Investment Rating:D-
- Performance:E+
- RiskC+
We rate PIMCO Municipal Income Fund II at D-. Negative factors that influence this rating include a high expense structure. The fund invests approximately 92% of its assets in bonds and may be considered for investors seeking a Municipal - National strategy.
Total return ranks well below peers over the last three years. The PIMCO Municipal Income Fund II has returned an annual rate of 3.91% since inception. More recently, the fund has generated a total return of -4.41% in the last five years, -11.09% in the last three years, and 0.02% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 7% of them. It has also outpaced 7% of its competitors on a three year basis and 14% of them over the last year for the period ending 2/29/2024. On a year to date basis, PML has returned 4.21%.
Downside risk has been above average. PML has a draw down risk of -52.97%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 21.5%. This fund has experienced a high level of volatility in its monthly performance over the last 36 months.
High expense ratio hinders performance. On total assets of $598.64 million, PML maintains a high expense ratio compared to its Municipal - National peers of 2.28% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As PML is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The PIMCO Municipal Income Fund II has been managed by David Hammer for the last 9 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 25% of other fund managers.