More on PML
*** This is NOT investment advice!*****
I just received a request for more information on my muni-bond investment vehicle, PIMCO's Municipal Income Fund II (PML). Here's a quick rundown of the stats:
- Yield = 6.43% (tax free for Federal taxes)
- Price Variability - in it's 3.5 year history it's been as low as 13 and it's high has been 15.80
- Dividend Variability - a few months it was lower and a few higher. Check it out your self.
- It's a closed-end, exchange traded fund
My tax equivalent yield (yield / (1-marginal tax rate)) for this is very close to 9%. This is not state tax free for me due to the fact that most bonds are not Virginia-based.
He's what I love about this fund:
- Great almost tax-free yield
- Dividents come monthly
- Exchange traded so I can quickly exit and reinvest elsewhere as I see fit
- Closed-end funds such as this are not impacted by big fund inflows or outflows
- It's managed by PIMCO - arguably the best bond fund managers in the world
- 80% of the bonds are rated as investment quality
I'm using this fund as a parking lot for my cash holdings and I'm pretty happy with it.