Schedule of Investments PIMCO New York Municipal Income Fund II

September 30, 2023

(Unaudited)

 

(AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF SHARES, CONTRACTS, UNITS AND OUNCES, IF ANY)

 

 

PRINCIPAL
AMOUNT
(000s)

 

MARKET
VALUE
(000s)

INVESTMENTS IN SECURITIES 175.8% ¤

 

 

 

 

MUNICIPAL BONDS & NOTES 171.7%

 

 

 

 

ARIZONA 0.0%

 

 

 

 

Arizona Industrial Development Authority Revenue Bonds, Series 2020
7.750% due 07/01/2050 ^(b)

$

400

$

24

DELAWARE 1.5%

 

 

 

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

 

 

 

3.167% due 10/01/2038

 

1,330

 

1,047

7.120% due 10/01/2038

 

235

 

211

 

 

 

 

1,258

ILLINOIS 1.2%

 

 

 

 

Chicago, Illinois General Obligation Bonds, Series 2017
6.000% due 01/01/2038

 

1,000

 

1,039

INDIANA 1.0%

 

 

 

 

Indiana Finance Authority Revenue Bonds, Series 2022
4.500% due 12/15/2046

 

850

 

849

NEW HAMPSHIRE 1.1%

 

 

 

 

New Hampshire Business Finance Authority Revenue Notes, Series 2023
5.087% due 07/20/2027

 

990

 

989

NEW YORK 158.8%

 

 

 

 

Battery Park City Authority, New York Revenue Bonds, Series 2019
4.030% due 11/01/2038

 

400

 

400

Brookhaven Local Development Corp., New York Revenue Bonds, Series 2020
4.000% due 11/01/2055

 

800

 

586

Build NYC Resource Corp., New York Revenue Bonds, Series 2018
5.625% due 12/01/2050

 

1,770

 

1,474

Build NYC Resource Corp., New York Revenue Bonds, Series 2023
5.250% due 07/01/2062

 

1,250

 

1,176

Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2015
5.000% due 07/01/2045

 

3,000

 

3,007

Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2017
4.000% due 07/01/2046

 

590

 

517

Housing Development Corp., New York Revenue Bonds, Series 2017
3.700% due 11/01/2047

 

1,000

 

782

Hudson Yards Infrastructure Corp., New York Revenue Bonds, Series 2021
4.000% due 02/15/2039

 

1,400

 

1,352

Huntington Local Development Corp., New York Revenue Bonds, Series 2021
5.250% due 07/01/2056

 

700

 

521

Long Island Power Authority, New York Revenue Bonds, Series 2014
5.000% due 09/01/2044

 

3,500

 

3,510

Long Island Power Authority, New York Revenue Bonds, Series 2023
5.000% due 09/01/2048

 

1,300

 

1,336

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2014
5.000% due 11/15/2039

 

1,500

 

1,487

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2016
5.000% due 11/15/2051

 

1,370

 

1,375

Monroe County Industrial Development Corp., New York Revenue Bonds, Series 2017
4.000% due 12/01/2041

 

1,400

 

1,186

Monroe County Industrial Development Corp., New York Revenue Bonds, Series 2020

 

 

 

 

4.000% due 12/01/2046

 

1,140

 

893

4.000% due 07/01/2050

 

1,000

 

880

Nassau County, New York General Obligation Bonds, Series 2022
4.250% due 04/01/2052

 

2,245

 

1,999

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 1999
4.150% due 01/01/2034

 

1,775

 

1,775

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 2021
5.000% due 01/01/2058 ^(b)

 

1,638

 

392

Nassau County, New York Tobacco Settlement Corp. Revenue Bonds, Series 2006
5.125% due 06/01/2046

 

4,000

 

3,489

New York City Municipal Water Finance Authority, New York Revenue Bonds, (BABs), Series 2009
4.550% due 06/15/2041

 

1,300

 

1,300

New York City Transitional Finance Authority Building Aid, New York Revenue Bonds, Series 2016
4.000% due 07/15/2040

 

1,000

 

926

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2017
4.000% due 02/01/2044

 

2,000

 

1,805

 

 

 

Schedule of Investments PIMCO New York Municipal Income Fund II (Cont.)

September 30, 2023

(Unaudited)

 

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2018
4.000% due 08/01/2041

 

685

 

630

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2019
4.800% due 11/01/2044

 

1,000

 

1,000

New York City Water & Sewer System, New York Revenue Bonds, Series 2016
4.000% due 06/15/2046

 

1,130

 

1,004

New York City Water & Sewer System, New York Revenue Bonds, Series 2018
5.000% due 06/15/2040

 

2,300

 

2,356

New York City Water & Sewer System, New York Revenue Bonds, Series 2019
5.000% due 06/15/2049

 

2,645

 

2,687

New York City, New York Health and Hospitals Corp. Revenue Bonds, Series 2008
4.100% due 02/15/2031

 

250

 

250

New York City, New York Housing Development Corp. Revenue Bonds, Series 2006
4.050% due 03/15/2036

 

300

 

300

New York City, New York Municipal Water Finance Authority Revenue Bonds, Series 2020
4.000% due 06/15/2050

 

1,000

 

874

New York City, New York Municipal Water Finance Authority Revenue Bonds, Series 2023

 

 

 

 

5.250% due 06/15/2048 (a)

 

900

 

946

5.250% due 06/15/2053 (a)

 

900

 

941

New York Convention Center Development Corp. Revenue Bonds, Series 2015

 

 

 

 

4.000% due 11/15/2045

 

230

 

193

5.000% due 11/15/2045

 

1,000

 

992

New York County, New York Tobacco Trust Revenue Bonds, Series 2005

 

 

 

 

0.000% due 06/01/2050 (c)

 

30,000

 

5,725

0.000% due 06/01/2055 (c)

 

9,000

 

615

New York County, New York Tobacco Trust Revenue Bonds, Series 2016

 

 

 

 

5.000% due 06/01/2036

 

1,000

 

1,011

5.000% due 06/01/2041

 

1,000

 

996

New York Liberty Development Corp. Revenue Bonds, Series 2005
5.250% due 10/01/2035

 

3,130

 

3,406

New York Liberty Development Corp. Revenue Bonds, Series 2014
5.000% due 11/15/2044

 

4,000

 

3,709

New York Liberty Development Corp. Revenue Bonds, Series 2021
2.875% due 11/15/2046

 

605

 

408

New York Power Authority Revenue Bonds, (AGM Insured), Series 2022
4.000% due 11/15/2047

 

1,250

 

1,094

New York Power Authority Revenue Bonds, Series 2020
4.000% due 11/15/2055

 

3,135

 

2,728

New York State Dormitory Authority Memorial Sloan-Kettering Cancer Revenue Bonds, Series 2022
4.000% due 07/01/2051

 

1,500

 

1,294

New York State Dormitory Authority Revenue Bonds, (AMBAC Insured), Series 2005
5.500% due 05/15/2031

 

1,490

 

1,659

New York State Dormitory Authority Revenue Bonds, Series 2017

 

 

 

 

4.000% due 02/15/2047

 

750

 

667

5.000% due 12/01/2030

 

1,000

 

953

5.000% due 12/01/2033

 

800

 

760

New York State Dormitory Authority Revenue Bonds, Series 2018

 

 

 

 

4.000% due 08/01/2037

 

2,750

 

2,446

4.000% due 03/15/2043

 

2,000

 

1,818

5.000% due 03/15/2044

 

2,625

 

2,665

New York State Dormitory Authority Revenue Bonds, Series 2019

 

 

 

 

5.000% due 03/15/2041

 

1,000

 

1,021

5.000% due 07/01/2042

 

1,000

 

1,024

5.000% due 03/15/2047

 

2,000

 

2,025

New York State Dormitory Authority Revenue Bonds, Series 2020

 

 

 

 

4.000% due 02/15/2040

 

1,500

 

1,395

4.000% due 07/01/2050

 

4,665

 

3,988

5.000% due 07/01/2053

 

1,000

 

1,016

New York State Dormitory Authority Revenue Bonds, Series 2022

 

 

 

 

4.000% due 07/01/2049

 

465

 

383

5.000% due 07/15/2050

 

465

 

422

New York State Dormitory Authority Revenue Bonds, Series 2023
5.000% due 07/01/2048

 

400

 

408

New York State Environmental Facilities Corp. Revenue Bonds, Series 2022
4.000% due 06/15/2047

 

2,250

 

2,033

New York State Housing Finance Agency Revenue Bonds, (FHA Insured), Series 2020
4.200% due 11/01/2054 (e)

 

2,600

 

2,090

New York State Thruway Authority Revenue Bonds, Series 2016
5.250% due 01/01/2056

 

1,480

 

1,488

New York State Thruway Authority Revenue Bonds, Series 2018
4.000% due 01/01/2036

 

1,000

 

978

New York State Thruway Authority Revenue Bonds, Series 2019
4.000% due 01/01/2050

 

1,775

 

1,507

New York State Thruway Authority Revenue Bonds, Series 2022
5.000% due 03/15/2055

 

1,000

 

1,009

New York State Urban Development Corp. Revenue Bonds, Series 2019
5.000% due 03/15/2041

 

2,500

 

2,579

New York State Urban Development Corp. Revenue Bonds, Series 2020
4.000% due 03/15/2049

 

2,000

 

1,737

New York State Urban Development Corp. Revenue Bonds, Series 2021
4.000% due 03/15/2047

 

1,250

 

1,105

New York Transportation Development Corp. Revenue Bonds, Series 2016
5.250% due 01/01/2050

 

1,165

 

1,143

New York Transportation Development Corp. Revenue Bonds, Series 2020
5.000% due 10/01/2040

 

1,200

 

1,153

Schedule of Investments PIMCO New York Municipal Income Fund II (Cont.)

September 30, 2023

(Unaudited)

 

New York Transportation Development Corp. Revenue Bonds, Series 2022
4.000% due 12/01/2042

 

2,290

 

1,958

Niagara Tobacco Asset Securitization Corp., New York Revenue Bonds, Series 2014

 

 

 

 

5.250% due 05/15/2034

 

500

 

495

5.250% due 05/15/2040

 

500

 

485

Onondaga County, New York Trust for Cultural Resources Revenue Bonds, Series 2019

 

 

 

 

5.000% due 12/01/2040

 

1,450

 

1,510

5.000% due 12/01/2043

 

1,000

 

1,034

Port Authority of New York & New Jersey Revenue Bonds, Series 2017
5.250% due 10/15/2057

 

6,865

 

7,043

Port Authority of New York & New Jersey Revenue Bonds, Series 2020
4.000% due 07/15/2060

 

400

 

323

Port Authority of New York & New Jersey Revenue Bonds, Series 2023
5.000% due 12/01/2043

 

630

 

639

Schenectady County Capital Resource Corp. Union College Project, New York Revenue Notes, Series 2022
5.000% due 07/01/2032

 

470

 

513

Suffolk County, New York Economic Development Corp. Revenue Bonds, Series 2021
5.125% due 11/01/2041

 

475

 

377

Suffolk Tobacco Asset Securitization Corp., New York Revenue Bonds, Series 2021

 

 

 

 

0.000% due 06/01/2066 (c)

 

5,000

 

466

4.000% due 06/01/2050

 

750

 

625

Triborough Bridge & Tunnel Authority Sales Tax, New York Revenue Bonds, Series 2022
4.000% due 05/15/2057

 

1,250

 

1,079

Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series 2018
4.000% due 11/15/2048

 

2,800

 

2,477

Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series 2019

 

 

 

 

5.000% due 11/15/2041

 

1,000

 

1,024

5.000% due 11/15/2043

 

750

 

765

Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series 2021
5.000% due 11/15/2056

 

2,810

 

2,832

Troy Capital Resource Corp., New York Revenue Bonds, Series 2020
5.000% due 09/01/2034

 

1,800

 

1,872

Trust for Cultural Resources of The City of New York Revenue Bonds, Series 2008
3.780% due 04/01/2029

 

710

 

710

TSASC, Inc., New York Revenue Bonds, Series 2017

 

 

 

 

5.000% due 06/01/2035

 

3,000

 

3,060

5.000% due 06/01/2041

 

500

 

501

Ulster County, New York Capital Resource Corp. Revenue Bonds, Series 2017
5.250% due 09/15/2047

 

1,000

 

710

Westchester County, New York Local Development Corp. Revenue Bonds, Series 2014
5.500% due 05/01/2042

 

1,000

 

995

 

 

 

 

136,292

NORTH DAKOTA 0.2%

 

 

 

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021
7.000% due 12/15/2043 ^(b)

 

320

 

160

PENNSYLVANIA 0.7%

 

 

 

 

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021
9.000% due 04/01/2051

 

560

 

612

PUERTO RICO 4.2%

 

 

 

 

Children's Trust Fund, Puerto Rico Revenue Bonds, Series 2008
0.000% due 05/15/2057 (c)

 

10,200

 

604

Commonwealth of Puerto Rico Bonds, Series 2022

 

 

 

 

0.000% due 11/01/2043

 

1,438

 

748

0.000% due 11/01/2051

 

293

 

151

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021
4.000% due 07/01/2041

 

550

 

444

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2022

 

 

 

 

0.000% due 07/01/2053 (d)

 

1,456

 

905

5.000% due 07/01/2062

 

46

 

44

Puerto Rico Highway & Transportation Authority Revenue Notes, Series 2022
0.000% due 07/01/2032 (c)

 

30

 

19

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018
0.000% due 07/01/2051 (c)

 

3,900

 

727

 

 

 

 

3,642

TEXAS 1.6%

 

 

 

 

Angelina & Neches River Authority, Texas Revenue Bonds, Series 2021

 

 

 

 

7.500% due 12/01/2045

 

220

 

139

12.000% due 12/01/2045

 

400

 

334

Texas Water Development Board Revenue Bonds, Series 2022
5.000% due 10/15/2057

 

890

 

914

 

 

 

 

1,387

VIRGINIA 0.7%

 

 

 

 

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

 

 

 

0.000% due 07/01/2061 (c)

 

8,000

 

160

Schedule of Investments PIMCO New York Municipal Income Fund II (Cont.)

September 30, 2023

(Unaudited)

 

5.500% due 07/01/2044

 

500

 

438

 

 

 

 

598

WISCONSIN 0.7%

 

 

 

 

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2022
4.000% due 12/01/2051

 

720

 

606

Total Municipal Bonds & Notes (Cost $160,009)

 

 

 

147,456

SHORT-TERM INSTRUMENTS 4.1%

 

 

 

 

REPURCHASE AGREEMENTS (f) 4.1%

 

 

 

3,496

Total Short-Term Instruments (Cost $3,496)

 

 

 

3,496

Total Investments in Securities (Cost $163,505)

 

 

 

150,952

Total Investments 175.8% (Cost $163,505)

 

 

$

150,952

Auction Rate Preferred Shares (59.5)%

 

 

 

(51,100)

Remarketable Variable Rate MuniFund Term Preferred Shares, at liquidation value (17.3)%

 

 

 

(14,884)

Other Assets and Liabilities, net 1.0%

 

 

 

875

Net Assets Applicable to Common Shareholders 100.0%

 

 

$

85,843

Schedule of Investments PIMCO New York Municipal Income Fund II (Cont.)

September 30, 2023

(Unaudited)

 

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

* A zero balance may reflect actual amounts rounding to less than one thousand.

 

¤

The geographical classification of foreign (non-U.S.) securities in this report, if any, are classified by the country of incorporation of a holding. In certain instances, a security's country of incorporation may be different from its country of economic exposure.

^

Security is in default.

(a)

When-issued security.

(b)

Security is not accruing income as of the date of this report.

(c)

Zero coupon security.

(d)

Security becomes interest bearing at a future date.

(e)

RESTRICTED SECURITIES:

Issuer Description

Coupon

Maturity
Date

Acquisition
Date

 

Cost

 

Market
Value

Market Value

as Percentage

of Net Assets

Applicable to

Common

Shareholders

New York State Housing Finance Agency Revenue Bonds, (FHA Insured), Series 2020

4.200

%

11/01/2054

11/18/2021

$

2,909

$

2,090

2.43

%

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(f)

REPURCHASE AGREEMENTS:

Counterparty

Lending
Rate

Settlement
Date

Maturity
Date

 

Principal
Amount

Collateralized By

 

Collateral
(Received)

 

Repurchase
Agreements,
at Value

 

Repurchase
Agreement
Proceeds
to be
Received
(1)

FICC

2.600%

09/29/2023

10/02/2023

$

3,496

U.S. Treasury Notes 0.250% due 09/30/2025

$

(3,566)

$

3,496

$

3,496

Total Repurchase Agreements

 

$

(3,566)

$

3,496

$

3,496

(1)

Includes accrued interest.

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of September 30, 2023 in valuing the Fund's assets and liabilities:

 

Category and Subcategory

Level 1

Level 2

Level 3

Fair Value
at 09/30/2023

Investments in Securities, at Value

Municipal Bonds & Notes

 

Arizona

$

0

$

24

$

0

$

24

 

 

Delaware

 

0

 

1,258

 

0

 

1,258

 

 

Illinois

 

0

 

1,039

 

0

 

1,039

 

 

Indiana

 

0

 

849

 

0

 

849

 

 

New Hampshire

 

0

 

989

 

0

 

989

 

 

New York

 

0

 

136,292

 

0

 

136,292

 

 

North Dakota

 

0

 

160

 

0

 

160

 

 

Pennsylvania

 

0

 

612

 

0

 

612

 

 

Puerto Rico

 

0

 

3,642

 

0

 

3,642

 

 

Texas

 

0

 

1,387

 

0

 

1,387

 

 

Virginia

 

0

 

598

 

0

 

598

 

 

Wisconsin

 

0

 

606

 

0

 

606

 

Short-Term Instruments

 

Repurchase Agreements

 

0

 

3,496

 

0

 

3,496

 

Total Investments

$

0

$

150,952

$

0

$

150,952

 

 

There were no significant transfers into or out of Level 3 during the period ended September 30, 2023.

 

 

Notes to Financial Statements

 

1. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies The net asset value (“NAV”) of the Fund's shares, or each of its share classes as applicable, is determined by dividing the total value of portfolio investments and other assets attributable to the Fund or class, less any liabilities, as applicable, by the total number of shares outstanding.

 

On each day that the New York Stock Exchange (“NYSE”) is open, the Fund’s shares are ordinarily valued as of the close of regular trading (normally 4:00 p.m., Eastern time) (“NYSE Close”). Information that becomes known to the Fund or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. If regular trading on the NYSE closes earlier than scheduled, the Fund may calculate its NAV as of the earlier closing time or calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day. The Fund generally does not calculate its NAV on days during which the NYSE is closed. However, if the NYSE is closed on a day it would normally be open for business, the Fund may calculate its NAV as of the normally scheduled NYSE Close for that day or such other time that the Fund may determine.

 

For purposes of calculating NAV, portfolio securities and other assets for which market quotations are readily available are valued at market value. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. Market value is generally determined on the basis of official closing prices or the last reported sales prices. The Fund will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close.

 

Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the “Act”). As a general principle, the fair value of a security or other asset is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Pursuant to Rule 2a-5, the Board of Trustees has designated Pacific Investment Management Company LLC (“PIMCO”) as the valuation designee (“Valuation Designee”) for the Fund to perform the fair value determination relating to all Fund investments. PIMCO may carry out its designated responsibilities as Valuation Designee through various teams and committees. The Valuation Designee’s policies and procedures govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value Fund portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services, quotation reporting systems, valuation agents and other third-party sources (together, “Pricing Sources”).

 

Fair valuation may require subjective determinations about the value of a security. While the Fund’s and Valuation Designee's policies and procedures are intended to result in a calculation of the Fund's NAV that fairly reflects security values as of the time of pricing, the Fund cannot ensure that fair values accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold.

 

(b) Fair Value Hierarchy U.S. GAAP describes fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2 or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

 

• Level 1 — Quoted prices (unadjusted) in active markets or exchanges for identical assets and liabilities.

 

• Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

 

• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Valuation Designee that are used in determining the fair value of investments.

 

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Fund.

 

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Fund's assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Fund.

 

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1, Level 2 and Level 3 trading assets and trading liabilities, at fair value The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1, Level 2 and Level 3 of the fair value hierarchy are as follows:

 

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities, non-U.S. bonds, and short-term debt instruments (such as commercial paper, time deposits, and certificates of deposit) are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Sources that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Sources' internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

 

 

 

Notes to Financial Statements (Cont.)

 

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

 

Short-term debt instruments (such as commercial paper, time deposits, and certificates of deposit) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

 

When a fair valuation method is applied by PIMCO that uses significant unobservable inputs, investments will be priced by a method that the Valuation Designee believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

 

2. FEDERAL INCOME TAX MATTERS

The Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

 

The Fund may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

 

In accordance with U.S. GAAP, the Manager has reviewed the Fund's tax positions for all open tax years. As of September 30, 2023, the Fund has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

 

The Fund files U.S. federal, state, and local tax returns as required. The Fund's tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

 

 

 

 

Glossary: (abbreviations that may be used in the preceding statements)   (Unaudited)
                     
Counterparty Abbreviations:    
FICC   Fixed Income Clearing Corporation                 
                     
Currency Abbreviations:    
USD (or $)   United States Dollar                
                     
Municipal Bond or Agency Abbreviations:    
AGM   Assured Guaranty Municipal   AMBAC   American Municipal Bond Assurance Corp.   FHA   Federal Housing Administration
                     
Other  Abbreviations:    
BABs   Build America Bonds   TBA   To-Be-Announced        


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