PIMCO Funds Call for Special Shareholder Meeting to Elect New Trustees

Shareholders will decide on key trustee appointments at the upcoming joint special meeting in November.

September 20, 2024

Overview of the Special Meeting:

PIMCO, a leading investment management firm, has announced a joint special meeting of shareholders scheduled for November 18, 2024. The meeting, to be held at PIMCO’s headquarters in Newport Beach, California, will focus on electing trustees for several funds under the firm's management. These include the PIMCO California Flexible Municipal Income Fund, PIMCO Flexible Credit Income Fund, PIMCO Flexible Emerging Markets Income Fund, PIMCO Flexible Municipal Income Fund, and the PIMCO Managed Accounts Trust.

The special meeting is a key event for shareholders, offering a chance to vote on crucial trustee positions that will influence the future governance of the funds. Shareholders from various categories, such as common and preferred classes, will be eligible to vote either individually or as a single class on the proposed trustee appointments.

The central agenda item for the meeting is the election of three trustees: Kathleen A. McCartney, Libby D. Cantrill, and David Flattum. These candidates are proposed to take on significant roles in overseeing the strategic decisions and performance of the respective funds. The boards of each of the PIMCO funds have unanimously endorsed all three nominees, emphasizing the importance of stable leadership and informed governance in navigating the funds' future.

Trustees play a pivotal role in guiding fund strategies and maintaining oversight over the performance and adherence to investment policies. With their varying experience and qualifications, the nominees are seen as fitting leaders who can carry forward the funds' objectives and growth potential.

Nominee Backgrounds and Governance Strategy

The three nominees bring diverse expertise and governance experience to the table. Kathleen A. McCartney is categorized as an Independent Trustee, offering an impartial perspective to the board’s decision-making. In contrast, Libby D. Cantrill and David Flattum are identified as "Interested Trustees" due to their affiliations with PIMCO and its affiliates. Mr. Flattum is a new candidate for the board, recommended to fill the anticipated vacancy resulting from the retirement of David N. Fisher.

PIMCO's approach to fund governance emphasizes a balance between independent and affiliated oversight. Each board maintains a supermajority of independent trustees, accounting for approximately 71% of the overall membership. This structure aims to ensure a comprehensive review of fund policies, performance, and adherence to fiduciary responsibilities.

Shareholder Participation and Voting Process

All eligible shareholders are encouraged to participate in the election, with voting available through multiple channels, including in-person attendance, mail, internet, or telephone submissions. The board emphasizes the importance of timely voting to facilitate an efficient meeting and to reflect shareholder perspectives on the future direction of the funds.

The special meeting and subsequent trustee election mark a crucial step in shaping the governance and strategy of PIMCO's funds. Shareholder votes will influence the leadership that steers fund performance, oversees management practices, and upholds the funds’ long-term objectives.