Certified Semi-annual Shareholder Report for Management Investment Companies (n-csrs)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-10379

PIMCO California Municipal Income Fund

(Exact name of registrant as specified in charter)

1633 Broadway, New York, NY 10019

(Address of principal executive offices)

Bijal Y. Parikh

Treasurer (Principal Financial & Accounting Officer)

650 Newport Center Drive

Newport Beach, CA 92660

(Name and address of agent for service)

Copies to:

David C. Sullivan

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199

Registrant’s telephone number, including area code: (844) 337-4626

Date of fiscal year end: December 31

Date of reporting period: June 30, 2022

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Table of Contents
Item 1.

Reports to Shareholders.

The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1).


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LOGO

 

PIMCO CLOSED-END FUNDS

Semiannual Report

 

June 30, 2022

 

PIMCO Municipal Income Fund | PMF | NYSE

 

PIMCO Municipal Income Fund II | PML | NYSE

 

PIMCO Municipal Income Fund III | PMX | NYSE

 

PIMCO California Municipal Income Fund | PCQ | NYSE

 

PIMCO California Municipal Income Fund II | PCK | NYSE

 

PIMCO California Municipal Income Fund III | PZC | NYSE

 

PIMCO New York Municipal Income Fund | PNF | NYSE

 

PIMCO New York Municipal Income Fund II | PNI | NYSE

 

PIMCO New York Municipal Income Fund III | PYN | NYSE

 


Table of Contents

Table of Contents

 

            Page  
     

Letter from the Chair of the Board & President

        2  

Important Information About the Funds

        4  

Financial Highlights

        18  

Statements of Assets and Liabilities

        24  

Statements of Operations

        26  

Statements of Changes in Net Assets

        28  

Statements of Cash Flows

        31  

Notes to Financial Statements

        70  

Glossary

        89  

Distribution Information

        90  

Changes to Boards of Trustees

        92  

Approval of Investment Management Agreement

        93  
     
Fund    Fund
Summary
     Schedule of
Investments
 
     

PIMCO Municipal Income Fund

     8        33  

PIMCO Municipal Income Fund II

     9        38  

PIMCO Municipal Income Fund III

     10        44  

PIMCO California Municipal Income Fund

     11        49  

PIMCO California Municipal Income Fund II

     12        53  

PIMCO California Municipal Income Fund III

     13        57  

PIMCO New York Municipal Income Fund

     14        61  

PIMCO New York Municipal Income Fund II

     15        64  

PIMCO New York Municipal Income Fund III

     16        67  


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Letter from the Chair of the Board & President

 

Dear Shareholder,

 

We hope that you and your family are remaining safe and healthy during these challenging times. We continue to work tirelessly to navigate markets and manage the assets that you have entrusted with us. Following this letter is the PIMCO Closed-End Funds Semiannual Report, which covers the six-month reporting period ended June 30, 2022. On the subsequent pages, you will find specific details regarding investment results and a discussion of the factors that most affected performance during the reporting period.

 

For the six-month reporting period ended June 30, 2022

 

The global economy continued to be affected by the COVID-19 pandemic (“COVID-19”) and its variants. Looking back, fourth quarter 2021 U.S. annualized gross domestic product (“GDP”) grew 6.9%. The economy then experienced a setback, as first quarter 2022 GDP growth was -1.6%. Finally, the Commerce Department’s initial estimate for second quarter 2022 GDP growth — released after the reporting period ended — was -0.9%.

 

In the U.S., the Federal Reserve Board (the “Fed”) took several steps to tighten monetary policy to combat elevated inflation. The Fed reduced the monthly pace of its net asset purchases of Treasury securities and agency mortgage-backed securities in November 2021 and again in December. The Fed ended its monthly asset purchases in mid-March 2022. The Fed then raised the federal funds rate 0.25% to a range between 0.25% and 0.50% in March 2022, its first rate hike since 2018. The central bank then raised rates 0.50% in its May 2022 meeting and 0.75% in its June meeting. Finally, on July 27, 2022 — after the reporting period ended — the Fed raised rates 0.75%, to a range between 2.25% and 2.50%.

 

Economies outside the U.S. also continued to be impacted by the pandemic. The war in Ukraine and its repercussions also led to increased uncertainties around the world. In its April 2022 World Economic Outlook Update, the International Monetary Fund (“IMF”) said it expects U.S. gross domestic product (“GDP”) growth to be 3.7% in 2022, compared to 5.7% in 2021. Elsewhere, the IMF expects 2022 GDP to grow 2.8% in the eurozone (from 5.3% in 2021), 3.7% in the U.K. (from 7.4% in 2021) and 2.4% in Japan (from 1.6% in 2021).

 

Several other central banks began tightening monetary policy during the period. In December 2021, the Bank of England (the “BoE”) surprised the market and raised rates for the first time since COVID-19 began. The BoE again raised rates at its meetings in February, March, May and June 2022. The European Central Bank (the “ECB”) indicated that it intended to raise rates at its September 2022 meeting. Elsewhere, the Bank of Japan (the “BoJ”) maintained its loose monetary policy and appears likely to remain accommodative in the near future given the headwinds facing its economy.

 

During the reporting period, short- and long-term U.S. Treasury yields moved sharply higher. The yield on the benchmark 10-year U.S. Treasury note was 2.98% on June 30, 2022, versus 1.52% on December 31, 2021. The Bloomberg Global Treasury Index (USD Hedged), which tracks fixed-rate, local currency government debt of investment grade countries, including developed and emerging markets, returned -8.07%. Meanwhile, the Bloomberg Global Aggregate Credit Index (USD Hedged), a widely used index of global investment grade credit bonds, returned -12.83%. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, were also weak. The ICE BofAML Developed Markets High Yield Constrained Index (USD Hedged), a widely used index of below-investment-grade bonds, returned -13.85%, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global (USD Hedged), returned -18.83%. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -14.53%.

 

The municipal (or “muni”) market experienced periods of volatility and generated a negative return. All told, the Bloomberg Municipal Bond Index (USD Unhedged) returned -8.98% during the six months ended June 30, 2022. The muni market was negatively impacted by sharply rising interest rates, along with fund outflows, as the current outflow cycle is now the worst on record.

 

       
2   PIMCO CLOSED-END FUNDS            


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Thank you for investing with us. We value your trust and will continue to work diligently to meet your investment needs. If you have questions regarding any of your PIMCO Closed-End Funds investments, please contact you financial advisor or call the Funds’ shareholder servicing agent at (844) 33-PIMCO. We also invite you to visit our website at pimco.com to learn more about our views.

 

Sincerely,

 

LOGO   LOGO
LOGO   LOGO
Deborah A. DeCotis   Eric D. Johnson
Chair of the Board of Trustees   President

 

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     3
    


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Important Information About the Funds              

 

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed-income securities and other instruments held by a Fund are likely to decrease in value. A wide variety of factors can cause interest rates or yields of U.S. Treasury securities (or yields of other types of bonds) to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that Fund management will anticipate such movement accurately. A Fund may lose money as a result of movement in interest rates.

 

As of the date of this report, interest rates in the United States and many parts of the world, including certain European countries, are ascending from historically low levels. Thus, the Funds currently face a heightened level of risk associated with rising interest rates and/or bond yields. This could be driven by a variety of factors, including but not limited to central bank monetary policies, changing inflation or real growth rates, general economic conditions, increasing bond issuances or reduced market demand for low yielding investments. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

 

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. In addition, in the current low interest rate environment, the market price of the Funds’ common shares may be particularly sensitive to changes in interest rates or the perception that there will be a change in interest rates. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact a Fund’s performance or cause a Fund to incur losses.

 

Classifications of the Funds’ portfolio holdings in this report are made according to financial reporting standards. The classification of a particular portfolio holding as shown in the Allocation Breakdown and Schedule of Investments and other sections of this report may differ from the classification used for the Funds’ compliance calculations, including those used in the Funds’ prospectus, investment objectives, regulatory, and other investment limitations and policies, which may be based on different asset class, sector or geographical classifications. Each Fund is separately monitored for compliance with respect to prospectus and regulatory requirements.

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.

 

Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance. In addition, COVID-19 and governmental responses to COVID-19 may negatively impact the capabilities of the Funds’ service providers and disrupt the Funds’ operations.

 

The United States’ enforcement of restrictions on U.S. investments in certain issuers and tariffs on goods from other countries, each with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

 

The United Kingdom’s withdrawal from the European Union may impact Fund returns. The withdrawal may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

 

The Funds may invest in certain instruments that rely in some fashion upon the London Interbank Offered Rate (“LIBOR”). LIBOR is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced plans to ultimately phase out the use of LIBOR. The transition may result in a reduction in the value of certain instruments held by a Fund or a reduction in the effectiveness of related Fund transactions such as hedges. There remains uncertainty regarding future utilization of LIBOR and the nature of any replacement rate (e.g., the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR and measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities). Any potential effects of the transition away from LIBOR on the Fund or on certain instruments in which the Fund invests can be difficult to ascertain, and they may vary depending on a variety of factors. The transition may also result in a reduction in the value of certain instruments held by a Fund or a reduction in the effectiveness of related Fund transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses to a Fund.

 

 

       
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Investing in the municipal bond market involves the risks of investing in debt securities generally and certain other risks. The amount of public information available about the municipal bonds in which a Fund may invest is generally less than that for corporate equities or bonds, and the investment performance of a Fund’s investment in municipal bonds may therefore be more dependent on the analytical abilities of PIMCO than its investments in taxable bonds. The secondary market for municipal bonds also tends to be less well-developed or liquid than many other securities markets, which may adversely affect a Fund’s ability to sell its bonds at attractive prices.

 

The ability of municipal issuers to make timely payments of interest and principal may be diminished during general economic downturns, by litigation, legislation or political events, or by the bankruptcy of the issuer. Issuers of municipal securities also might seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, a Fund could experience delays in collecting principal and interest and the Fund may not, in all circumstances, be able to collect all principal and interest to which it is entitled.

 

A fund that has substantial exposures to California municipal bonds may be affected significantly by economic, regulatory or political developments affecting the ability of California issuers to pay interest or repay principal. Certain issuers of California municipal bonds have experienced serious financial difficulties in the past and reoccurrence of these difficulties may impair the ability of certain California issuers to pay principal or interest on their obligations. Provisions of the California Constitution and State statutes that limit the taxing and spending authority of California governmental entities may impair the ability of California issuers to pay principal and/or interest on their obligations. While California’s economy is broad, it does have major concentrations in advanced technology, aerospace and defense-related manufacturing, trade, entertainment, real estate and financial services, and may be sensitive to economic problems affecting those industries. Future California political and economic developments, constitutional amendments, legislative measures, executive orders, administrative regulations, litigation and voter initiatives could have an adverse effect on the debt obligations of California issuers.

 

A fund that has substantial exposures to New York municipal bonds may be affected significantly by economic, regulatory or political developments affecting the ability of New York issuers to pay interest or repay principal. While New York’s economy is broad, it does have concentrations in the financial services industry, and may be sensitive to economic problems affecting that industry. Certain issuers of New York municipal bonds have experienced serious financial difficulties in the past and reoccurrence of these difficulties may impair the ability of certain New York issuers to pay principal or interest on their obligations. The financial health of New York City affects that of the

State, and when New York City experiences financial difficulty, it may have an adverse effect on New York municipal bonds held by a Fund. The growth rate of New York has at times been somewhat slower than the nation overall. The economic and financial condition of New York also may be affected by various financial, social, economic and political factors.

 

The common shares of the Funds trade on the New York Stock Exchange. As with any stock, the price of a Fund’s common shares will fluctuate with market conditions and other factors. If you sell your common shares of a Fund, the price received may be more or less than your original investment.

 

Shares of closed-end investment management companies, such as the Funds, frequently trade at a discount from their net asset value (“NAV”) and may trade at a price that is less than the initial offering price and/or the NAV of such shares. Further, if a Fund’s shares trade at a price that is more than the initial offering price and/or the NAV of such shares, including at a substantial premium and/or for an extended period of time, there is no assurance that any such premium will be sustained for any period of time and will not decrease, or that the shares will not trade at a discount to NAV thereafter.

 

The Funds may be subject to various risks as described in each Fund’s prospectus and in the Principal and Other Risks in the Notes to Financial Statements.

 

On each Fund Summary page in this Shareholder Report, the Average Annual Total Return table measures performance assuming that all dividend and capital gain distributions were reinvested. Total return is calculated by determining the percentage change in NAV or market price (as applicable) in the specified period. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. Total return for a period of more than one year represents the average annual total return. Performance at market price will differ from results at NAV. Although market price returns tend to reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about a Fund, market conditions, supply and demand for the Fund’s shares, or changes in the Fund’s dividends. Performance shown is net of fees and expenses. Historical NAV performance for a Fund may have been positively impacted by fee waivers or expense limitations in place during some or all of the periods shown, if applicable. Future performance (including total return or yield) and distributions may be negatively impacted by the expiration or reduction of any such fee waivers or expense limitations.

 

The dividend rate that a Fund pays on its common shares may vary as portfolio and market conditions change, and will depend on a number of factors, including without limit the amount of a Fund’s undistributed

 

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     5
    


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Important Information About the Funds   (Cont.)  

 

net investment income and net short- and long-term capital gains, as well as the costs of any leverage obtained by a Fund. As portfolio and market conditions change, the rate of distributions on the common shares and a Fund’s dividend policy could change. There can be no assurance that a change in market conditions or other factors will not result in a change in a Fund distribution rate or that the rate will be sustainable in the future.

 

The following table discloses the inception date and diversification status of each Fund:

 

Fund Name         Inception
Date
    Diversification
Status

PIMCO Municipal Income Fund

      06/29/01     Diversified

PIMCO Municipal Income Fund II

      06/28/02     Diversified

PIMCO Municipal Income Fund III

      10/31/02     Diversified

PIMCO California Municipal Income Fund

      06/29/01     Diversified

PIMCO California Municipal Income Fund II

      06/28/02     Diversified

PIMCO California Municipal Income Fund III

      10/31/02     Diversified

PIMCO New York Municipal Income Fund

      06/29/01     Non-diversified

PIMCO New York Municipal Income Fund II

      06/28/02     Diversified

PIMCO New York Municipal Income Fund III

      10/31/02     Non-diversified

 

An investment in a Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. It is possible to lose money on investments in the Funds.

 

The Trustees are responsible generally for overseeing the management of the Funds. The Trustees authorize the Funds to enter into service agreements with the Manager and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s prospectus or Statement of Additional Information (“SAI”), any press release or shareholder report, any contracts filed as exhibits to a Fund’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of a Fund creates a contract between or among any shareholders of a Fund, on the one hand, and the Fund, a service provider to the Fund, and/or the Trustees or officers of the Fund, on the other hand. The Trustees (or the Funds and their officers, service providers or other delegates acting under authority of the Trustees) may amend its most recent prospectus or use a new prospectus or SAI with respect to a Fund, adopt and disclose new or amended policies and other changes in press releases and shareholder reports and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder input or approval, except

in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement was specifically disclosed in a Fund’s prospectus, SAI or shareholder report and is otherwise still in effect.

 

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Funds as the policies and procedures that PIMCO will use when voting proxies on behalf of the Funds. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of each Fund, and information about how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30th, are available without charge, upon request, by calling the Funds at (844) 33-PIMCO, on the Funds’ website at www.pimco.com, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

 

The Funds file portfolio holdings information with the SEC on Form N-PORT within 60 days of the end of each fiscal quarter. The Funds’ complete schedules of securities holdings as of the end of each fiscal quarter will be made available to the public on the SEC’s website at www.sec.gov and on PIMCO’s website at www.pimco.com, and will be made available, upon request, by calling PIMCO at (844) 33-PIMCO.

 

SEC rules allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Investors may elect to receive all reports in paper free of charge by contacting their financial intermediary or, if invested directly with a Fund, investors can inform the Fund by calling (844) 33-PIMCO. Any election to receive reports in paper will apply to all funds held with the fund complex if invested directly with a Fund or to all funds held in the investor’s account if invested through a financial intermediary, such as a broker-dealer or bank.

 

In April 2020, the SEC adopted amended rules modifying the registration, communications, and offering processes for registered closed-end funds and interval funds. Among other things, the amendments: (1) permit qualifying closed-end funds to use a short-form registration statement to offer securities in eligible transactions and certain funds to qualify as Well Known Seasoned Issuers; (2) permit interval funds to pay registration fees based on net issuance of shares in a manner similar to mutual funds; (3) require closed-end funds and interval funds to include additional disclosures in their annual reports; and (4) require certain information to be filed in interactive data format. The new rules have phased compliance dates, with some requirements having already taken effect and others requiring compliance as late as February 1, 2023.

 

 

       
6   PIMCO CLOSED-END FUNDS            


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In October 2020, the SEC adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions that was applicable to the Funds as of the date of this report. Subject to certain exceptions, the rule requires funds that trade derivatives and other transactions that create future payment or delivery obligations to comply with a value-at-risk leverage limit and certain derivatives risk management program and reporting requirements. These requirements may limit the ability of the Funds to use derivatives and reverse repurchase agreements and similar financing transactions as part of their investment strategies and may increase the cost of the Funds’ investments and cost of doing business, which could adversely affect investors. The rule went into effect on February 19, 2021. The compliance date for the new rule and related recordkeeping requirements is August 19, 2022.

 

In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Investment Company Act of 1940 (the “Act”) without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also includes the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The effective date for the rule was January 19, 2021, and the compliance date for the rule was January 19, 2022.

 

In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition will apply in all contexts under the Act. The effective date for the rule was March 8, 2021. The compliance date for the new rule and the associated recordkeeping requirements is September 8, 2022.

 

In May 2022, the SEC proposed amendments to a current rule governing fund naming conventions. In general, the current rule requires funds with certain types of names to adopt a policy to invest at least 80% of their assets in the type of investment suggested by the name. The proposed amendments would expand the scope of the current rule in a number of ways that would result in an expansion of the types of fund names that would require the fund to adopt an 80% investment policy under the rule. Additionally, the proposed amendments would modify the circumstances under which a fund may deviate from its 80% investment policy and address the use and

valuation of derivatives instruments for purposes of the rule. The proposal’s impact on the Funds will not be known unless and until any final rulemaking is adopted.

 

In May 2022, the SEC proposed a framework that would require certain registered funds (such as the Funds) to disclose their environmental, social, and governance (“ESG”) investing practices. Among other things, the proposed requirements would mandate that funds meeting three pre-defined classifications (i.e., integrated, ESG focused and/or impact funds) provide prospectus and shareholder report disclosure related to the ESG factors, criteria and processes used in managing the fund. The proposal’s impact on the Funds will not be known unless and until any final rulemaking is adopted.

 

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     7
    


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PIMCO Municipal Income Fund

 

  Symbol on NYSE - PMF

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Health, Hospital & Nursing Home Revenue

    21.5%  

Highway Revenue Tolls

    8.9%  

Ad Valorem Property Tax

    7.8%  

Natural Gas Revenue

    6.3%  

Sales Tax Revenue

    5.7%  

Tobacco Settlement Funded

    5.3%  

Miscellaneous Revenue

    5.2%  

Electric Power & Light Revenue

    5.0%  

Industrial Revenue

    4.6%  

Sewer Revenue

    4.1%  

Local or Guaranteed Housing

    3.1%  

Special Assessment

    3.0%  

Income Tax Revenue

    2.8%  

Appropriations

    2.5%  

College & University Revenue

    1.9%  

Port, Airport & Marina Revenue

    1.3%  

Nuclear Revenue

    1.2%  

Lease (Appropriation)

    1.2%  

Transit Revenue

    1.1%  

Other

    6.4%  

Short-Term Instruments

    1.1%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $11.52  

NAV

    $10.30  

Premium/(Discount) to NAV

    11.84%  

Market Price Distribution Rate(2)

    5.63%  

NAV Distribution Rate(2)

    6.29%  

Total Effective Leverage(3)

    46.42%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022  
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(06/29/01)
 
LOGO   Market Price     (22.17)%       (18.76)%       1.95%       3.24%       5.42%  
LOGO   NAV     (20.54)%       (19.68)%       1.09%       4.12%       5.57%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2) 

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3) 

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO Municipal Income Fund’s investment objective is to seek to provide current income exempt from federal income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Select exposure to taxable municipal bonds contributed to performance, as holdings outperformed the general municipal market.

 

»   There were no other material contributors for the Fund.

 

»   Duration positioning detracted from performance, as benchmark municipal yields increased.

 

»   Exposure to the revenue segment detracted from performance, as the segment underperformed the general municipal market.

 

»   Exposure to the healthcare sector detracted from performance, as the sector underperformed the general municipal market.

 

       
8   PIMCO CLOSED-END FUNDS            


Table of Contents

PIMCO Municipal Income Fund II

 

  Symbol on NYSE - PML

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Health, Hospital & Nursing Home Revenue

    23.5%  

Highway Revenue Tolls

    10.0%  

Ad Valorem Property Tax

    6.9%  

Natural Gas Revenue

    6.6%  

Sales Tax Revenue

    5.5%  

Tobacco Settlement Funded

    5.1%  

Industrial Revenue

    4.2%  

Sewer Revenue

    4.0%  

College & University Revenue

    3.9%  

Income Tax Revenue

    2.9%  

Local or Guaranteed Housing

    2.9%  

Miscellaneous Revenue

    2.7%  

Water Revenue

    2.7%  

Appropriations

    2.6%  

Electric Power & Light Revenue

    2.2%  

Port, Airport & Marina Revenue

    2.2%  

Lease (Appropriation)

    1.8%  

Transit Revenue

    1.4%  

Fuel Sales Tax Revenue

    1.0%  

Other

    6.8%  

Short-Term Instruments

    1.1%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $10.74  

NAV

    $9.52  

Premium/(Discount) to NAV

    12.82%  

Market Price Distribution Rate(2)

    6.59%  

NAV Distribution Rate(2)

    7.44%  

Total Effective Leverage(3)

    46.03%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022  
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(06/28/02)
 
LOGO   Market Price     (24.15)%       (24.62)%       1.68%       4.26%       4.91%  
LOGO   NAV     (20.46)%       (19.73)%       1.32%       4.23%       4.68%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2) 

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3) 

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO Municipal Income Fund II’s investment objective is to seek to provide current income exempt from federal income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Select exposure to taxable municipal bonds contributed to performance, as holdings outperformed the general municipal market.

 

»   There were no other material contributors for this Fund.

 

»   Duration positioning detracted from performance, as benchmark municipal yields increased.

 

»   Exposure to the revenue segment detracted from performance, as the segment underperformed the general municipal market.

 

»   Exposure to the healthcare sector detracted from performance, as the sector underperformed the general municipal market.

 

        
SEMIANNUAL REPORT
 
  |     JUNE 30, 2022     9
    


Table of Contents

PIMCO Municipal Income Fund III

 

  Symbol on NYSE - PMX

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Health, Hospital & Nursing Home Revenue

    18.1%  

Highway Revenue Tolls

    8.7%  

Natural Gas Revenue

    7.0%  

Sales Tax Revenue

    6.6%  

Ad Valorem Property Tax

    6.5%  

Sewer Revenue

    5.8%  

Local or Guaranteed Housing

    5.1%  

Electric Power & Light Revenue

    4.2%  

Tobacco Settlement Funded

    3.9%  

Industrial Revenue

    3.8%  

Water Revenue

    3.6%  

College & University Revenue

    3.3%  

Appropriations

    3.1%  

Miscellaneous Revenue

    2.7%  

Port, Airport & Marina Revenue

    2.4%  

Income Tax Revenue

    2.4%  

Fuel Sales Tax Revenue

    1.8%  

Transit Revenue

    1.3%  

Nuclear Revenue

    1.3%  

General Fund

    1.3%  

Other

    6.4%  

Short-Term Instruments

    0.7%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $9.22  

NAV

    $8.70  

Premium/(Discount) to NAV

    5.98%  

Market Price Distribution Rate(2)

    5.99%  

NAV Distribution Rate(2)

    6.34%  

Total Effective Leverage(3)

    45.47%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022  
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(10/31/02)
 
LOGO   Market Price     (25.63)%       (25.75)%       0.80%       3.27%       4.30%  
LOGO   NAV     (21.59)%       (20.93)%       1.02%       4.58%       4.45%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2) 

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3) 

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO Municipal Income Fund III’s investment objective is to seek to provide current income exempt from federal income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Select exposure to taxable municipal bonds contributed to performance, as holdings outperformed the general municipal market.

 

»   There were no other material contributors for this Fund.

 

»   Duration positioning detracted from performance, as municipal yields increased.

 

»   Exposure to the revenue segment detracted from performance, as the segment underperformed the general municipal market.

 

»   Exposure to the special tax sector detracted from performance, as the sector underperformed the general municipal market.

 

       
10   PIMCO CLOSED-END FUNDS            


Table of Contents

PIMCO California Municipal Income Fund

 

  Symbol on NYSE - PCQ

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Ad Valorem Property Tax

    22.4%  

Health, Hospital & Nursing Home Revenue

    14.6%  

Electric Power & Light Revenue

    7.1%  

College & University Revenue

    5.9%  

Natural Gas Revenue

    5.9%  

Lease (Abatement)

    5.4%  

Sales Tax Revenue

    5.2%  

Local or Guaranteed Housing

    5.1%  

General Fund

    4.1%  

Tobacco Settlement Funded

    4.0%  

Port, Airport & Marina Revenue

    3.8%  

Water Revenue

    2.5%  

Lease (Non-Terminable)

    2.0%  

Sewer Revenue

    1.8%  

Transit Revenue

    1.8%  

Special Assessment

    1.2%  

Special Tax

    1.1%  

Highway Revenue Tolls

    1.1%  

Other

    2.2%  

Short-Term Instruments

    2.8%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $15.41  

NAV

    $10.90  

Premium/(Discount) to NAV

    41.38%  

Market Price Distribution Rate(2)

    5.06%  

NAV Distribution Rate(2)

    7.16%  

Total Effective Leverage(3)

    46.59%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022  
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(06/29/01)
 
LOGO   Market Price     (14.89)%       (15.17)%       3.37%       5.85%       6.57%  
LOGO   NAV     (20.08)%       (19.06)%       0.94%       4.10%       5.48%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2) 

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3) 

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO California Municipal Income Fund’s investment objective is to seek to provide current income exempt from federal and California income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Exposure to the pre-refunded segment contributed to performance, as the segment outperformed the general municipal market.

 

»   Select exposure to taxable municipal bonds contributed to performance, as holdings outperformed the general municipal market.

 

»   There were no other material contributors for this Fund.

 

»   Duration positioning detracted from performance, as municipal yields increased.

 

»   Exposure to the revenue segment detracted from performance, as the segment underperformed the general municipal market.

 

»   Exposure to the industrial revenue sector detracted from performance, as the sector underperformed the general municipal market.

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     11
    


Table of Contents

PIMCO California Municipal Income Fund II

 

  Symbol on NYSE - PCK

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Ad Valorem Property Tax

    25.6%  

Health, Hospital & Nursing Home Revenue

    13.7%  

Natural Gas Revenue

    8.1%  

Local or Guaranteed Housing

    5.9%  

General Fund

    5.6%  

Sales Tax Revenue

    5.0%  

Electric Power & Light Revenue

    4.9%  

Tobacco Settlement Funded

    4.6%  

Sewer Revenue

    4.4%  

Port, Airport & Marina Revenue

    3.8%  

College & University Revenue

    3.6%  

Lease (Abatement)

    3.3%  

Highway Revenue Tolls

    2.6%  

Lease (Non-Terminable)

    2.0%  

Special Assessment

    1.2%  

Special Tax

    1.1%  

Other

    4.3%  

Short-Term Instruments

    0.3%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $6.86  

NAV

    $6.85  

Premium/(Discount) to NAV

    0.15%  

Market Price Distribution Rate(2)

    5.60%  

NAV Distribution Rate(2)

    5.61%  

Total Effective Leverage(3)

    46.09%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022        
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(06/28/02)
 
LOGO   Market Price     (24.75)%       (25.31)%       (2.72)%       2.04%       2.81%  
LOGO   NAV     (22.92)%       (21.97)%       0.53%       4.29%       3.44%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2) 

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3) 

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO California Municipal Income Fund II’s investment objective is to seek to provide current income exempt from federal and California income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   There were no material contributors for this Fund.

 

»   Duration positioning detracted from performance, as benchmark municipal yields increased.

 

»   Exposure to the industrial revenue sector detracted from performance, as the sector underperformed the broad municipal market.

 

»   Exposure to the healthcare sector detracted from performance, as the sector underperformed the broad municipal market.

 

       
12   PIMCO CLOSED-END FUNDS            


Table of Contents

PIMCO California Municipal Income Fund III

 

  Symbol on NYSE - PZC

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Ad Valorem Property Tax

    22.7%  

Health, Hospital & Nursing Home Revenue

    15.5%  

Electric Power & Light Revenue

    7.9%  

Tobacco Settlement Funded

    6.1%  

Local or Guaranteed Housing

    6.0%  

Natural Gas Revenue

    5.3%  

College & University Revenue

    4.7%  

Sales Tax Revenue

    4.3%  

General Fund

    3.4%  

Port, Airport & Marina Revenue

    3.2%  

Lease (Abatement)

    3.2%  

Highway Revenue Tolls

    2.9%  

Lease (Non-Terminable)

    2.2%  

Special Tax

    1.8%  

Transit Revenue

    1.8%  

Sewer Revenue

    1.7%  

Special Assessment

    1.2%  

Water Revenue

    1.1%  

Miscellaneous Revenue

    1.1%  

Other

    2.9%  

Short-Term Instruments

    1.0%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $8.26  

NAV

    $8.05  

Premium/(Discount) to NAV

    2.61%  

Market Price Distribution Rate(2)

    5.52%  

NAV Distribution Rate(2)

    5.66%  

Total Effective Leverage(3)

    45.23%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022  
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(10/31/02)
 
LOGO   Market Price     (23.65)%       (24.49)%       (3.43)%       2.73%       3.41%  
LOGO   NAV     (19.05)%       (18.19)%       0.98%       4.08%       3.68%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2)

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3) 

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO California Municipal Income Fund III’s investment objective is to seek to provide current income exempt from federal and California income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Exposure to the pre-refunded segment contributed to performance, as the segment outperformed the general municipal market.

 

»   Select exposure to taxable municipal bonds contributed to performance, as holdings outperformed the general municipal market.

 

»   Select exposure to the tobacco sector contributed to performance, as holdings outperformed the general municipal market.

 

»   Duration positioning detracted from performance, as municipal yields increased.

 

»   Exposure to the revenue segment detracted from performance, as the segment underperformed the general municipal market.

 

»   Exposure to the industrial revenue sector detracted from performance, as the sector underperformed the general municipal market.

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     13
    


Table of Contents

PIMCO New York Municipal Income Fund

 

  Symbol on NYSE - PNF

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Water Revenue

    15.6%  

Income Tax Revenue

    12.4%  

Ad Valorem Property Tax

    11.7%  

Transit Revenue

    9.0%  

Health, Hospital & Nursing Home Revenue

    8.0%  

Tobacco Settlement Funded

    6.4%  

College & University Revenue

    6.1%  

Miscellaneous Revenue

    5.9%  

Sales Tax Revenue

    5.4%  

Local or Guaranteed Housing

    5.3%  

Port, Airport & Marina Revenue

    5.1%  

Industrial Revenue

    2.2%  

Highway Revenue Tolls

    2.0%  

Electric Power & Light Revenue

    1.5%  

Miscellaneous Taxes

    1.2%  

Other

    1.2%  

Short-Term Instruments

    1.0%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $9.16  

NAV

    $9.36  

Premium/(Discount) to NAV

    (2.14)%  

Market Price Distribution Rate(2)

    5.50%  

NAV Distribution Rate(2)

    5.38%  

Total Effective Leverage(3)

    43.96%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022  
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(06/29/01)
 
LOGO   Market Price     (23.57)%       (26.07)%       (2.17)%       2.40%       3.59%  
LOGO   NAV     (20.97)%       (20.24)%       (0.15)%       3.45%       3.97%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2) 

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3) 

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO New York Municipal Income Fund’s investment objective is to seek to provide current income exempt from federal, New York State and New York City income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Select exposure to taxable municipal bonds contributed to performance, as holdings outperformed the general municipal market.

 

»   There were no other material contributors for this Fund.

 

»   Duration positioning detracted from performance, as municipal yields increased.

 

»   Exposure to the revenue segment detracted from performance, as the segment underperformed the general municipal market.

 

»   Exposure to the special tax sector detracted from performance, as the sector underperformed the general municipal market.

 

       
14   PIMCO CLOSED-END FUNDS            


Table of Contents

PIMCO New York Municipal Income Fund II

 

  Symbol on NYSE - PNI

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Health, Hospital & Nursing Home Revenue

    10.7%  

Income Tax Revenue

    10.7%  

College & University Revenue

    10.7%  

Tobacco Settlement Funded

    9.6%  

Water Revenue

    6.7%  

Lease (Appropriation)

    6.3%  

Miscellaneous Revenue

    6.1%  

Port, Airport & Marina Revenue

    6.0%  

Transit Revenue

    5.9%  

Highway Revenue Tolls

    4.9%  

Sales Tax Revenue

    4.5%  

Local or Guaranteed Housing

    4.0%  

Ad Valorem Property Tax

    3.5%  

Electric Power & Light Revenue

    3.0%  

Industrial Revenue

    2.9%  

Other

    1.0%  

Short-Term Instruments

    3.5%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $8.74  

NAV

    $8.90  

Premium/(Discount) to NAV

    (1.80)%  

Market Price Distribution Rate(2)

    5.50%  

NAV Distribution Rate(2)

    5.40%  

Total Effective Leverage(3)

    46.48%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022        
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(06/28/02)
 
LOGO   Market Price     (21.04)%       (24.06)%       (1.02)%       1.75%       3.57%  
LOGO   NAV     (21.83)%       (20.95)%       0.13%       3.55%       4.02%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2)

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3)

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO New York Municipal Income Fund II’s investment objective is to seek to provide current income exempt from federal, New York State and New York City income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   There were no material contributors for this Fund.

 

»   Duration positioning detracted from performance, as benchmark municipal yields increased.

 

»   Exposure to the special tax sector detracted from performance, as the sector underperformed the broad municipal market.

 

»   Exposure to the transportation sector detracted from performance, as the sector underperformed the broad municipal market.

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     15
    


Table of Contents

PIMCO New York Municipal Income Fund III

 

  Symbol on NYSE - PYN

 

Allocation Breakdown

as of June 30, 2022§

 

Municipal Bonds & Notes

 

Income Tax Revenue

    13.3%  

Tobacco Settlement Funded

    13.0%  

Ad Valorem Property Tax

    11.1%  

Health, Hospital & Nursing Home Revenue

    10.0%  

Industrial Revenue

    7.0%  

Miscellaneous Revenue

    6.6%  

College & University Revenue

    6.1%  

Water Revenue

    6.1%  

Port, Airport & Marina Revenue

    5.9%  

Transit Revenue

    5.6%  

Sales Tax Revenue

    4.7%  

Local or Guaranteed Housing

    4.3%  

Electric Power & Light Revenue

    2.0%  

Highway Revenue Tolls

    1.2%  

Other

    2.0%  

Short-Term Instruments

    1.1%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information

as of (June 30, 2022)(1)

 

Market Price

    $7.84  

NAV

    $7.17  

Premium/(Discount) to NAV

    9.34%  

Market Price Distribution Rate(2)

    5.43%  

NAV Distribution Rate(2)

    5.94%  

Total Effective Leverage(3)

    43.47%  

 

 

 

Average Annual Total Return(1) for the period ended June 30, 2022        
        6 Month*     1 Year     5 Year     10 Year     Commencement
of Operations
(10/31/02)
 
LOGO   Market Price     (13.55)%       (23.23)%       0.51%       2.90%       2.79%  
LOGO   NAV     (19.99)%       (19.18)%       (0.15)%       3.29%       2.61%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

*

Cumulative return

 

(1) 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares.

 

(2) 

Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

(3) 

Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).

 

Investment Objective and Strategy Overview

 

PIMCO New York Municipal Income Fund III’s investment objective is to seek to provide current income exempt from federal, New York State and New York City income tax.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Select exposure to taxable municipal bonds contributed to performance, as holdings outperformed the general municipal market.

 

»   There were no other material contributors for this Fund.

 

»   Duration positioning detracted from performance, as benchmark municipal yields increased.

 

»   Exposure to the revenue segment detracted from performance, as the segment underperformed the general municipal market.

 

»   Exposure to the special tax sector detracted from performance, as the sector underperformed the general municipal market.

 

       
16   PIMCO CLOSED-END FUNDS            


Table of Contents

 

 

 

(THIS PAGE INTENTIONALLY LEFT BLANK)


Table of Contents
Financial Highlights              

 

          Investment Operations     Less Distributions
to Preferred
Shareholders(c)
          Less Distributions to Common Shareholders(d)        
                                           
Selected Per Share Data for the Year or
Period Ended^:
  Net Asset
Value
Beginning
of Year
or Period(a)
   

Net
Investment
Income
(Loss)(b)

    Net
Realized/
Unrealized
Gain (Loss)
    From Net
Investment
Income
    From Net
Realized
Capital
Gains
    Net Increase
(Decrease)
in Net Assets
Applicable
to Common
Shareholders
Resulting
from
Operations
    From Net
Investment
Income
    From Net
Realized
Capital
Gains
    Tax Basis
Return of
Capital
    Total     Increase
Resulting from
Tender of
ARPS(c)
 

PIMCO Municipal Income Fund

                     

01/01/2022 - 06/30/2022+

  $   13.33     $   0.35     $   (3.04   $   (0.02   $   0.00     $   (2.71   $   (0.32   $ 0.00     $   0.00     $   (0.32   $   0.00  

12/31/2021

    13.22       0.71       0.06       (0.01     0.00       0.76       (0.65     0.00       0.00       (0.65     0.00  

12/31/2020

    13.35       0.74       (0.07     (0.07     0.00       0.60       (0.65       (0.08     0.00       (0.73     0.00  

12/31/2019

    12.36       0.81       1.07       (0.16     0.00       1.72       (0.72     (0.01     0.00       (0.73     0.00  

12/31/2018

    12.87       0.89       (0.65     (0.16     0.00       0.08       (0.72     0.00       0.00       (0.72     0.13  

12/31/2017

    12.44       0.91       0.36       (0.10     0.00       1.17       (0.74     0.00       0.00       (0.74     0.00  

PIMCO Municipal Income Fund II

                     

01/01/2022 - 06/30/2022+

  $ 12.37     $ 0.31     $ (2.79   $ (0.02   $ 0.00     $ (2.50   $ (0.35   $ 0.00     $ 0.00     $ (0.35   $ 0.00  

12/31/2021

    12.42       0.66       0.00       0.00       0.00       0.66       (0.71     0.00       0.00       (0.71     0.00  

12/31/2020

    12.50       0.69       (0.01     (0.05     0.00       0.63       (0.71     0.00       0.00       (0.71     0.00  

12/31/2019

    11.62       0.77       1.01       (0.12     0.00       1.66       (0.78     0.00       0.00       (0.78     0.00  

12/31/2018

    12.13       0.81       (0.57     (0.13     0.00       0.11       (0.78     0.00       0.00       (0.78     0.16  

12/31/2017

    11.81       0.81       0.37       (0.08     0.00       1.10       (0.78     0.00       0.00       (0.78     0.00  

PIMCO Municipal Income Fund III

                     

01/01/2022 - 06/30/2022+

  $ 11.41     $ 0.30     $ (2.71   $ (0.02   $ 0.00     $ (2.43   $ (0.28   $ 0.00     $ 0.00     $ (0.28   $ 0.00  

12/31/2021

    11.36       0.59       0.01       0.00       0.00       0.60       (0.55     0.00       0.00       (0.55     0.00  

12/31/2020

    11.34       0.62       0.01       (0.05     0.00       0.58       (0.55     (0.01     0.00       (0.56     0.00  

12/31/2019

    10.49       0.72       0.87       (0.12     0.00       1.47       (0.62     0.00       0.00       (0.62     0.00  

12/31/2018

    11.06       0.76       (0.57     (0.13     0.00       0.06       (0.67     (0.11     0.00       (0.78     0.15  

12/31/2017

    10.67       0.77       0.38       (0.08     0.00       1.07       (0.68     0.00       0.00       (0.68     0.00  

PIMCO California Municipal Income Fund

                     

01/01/2022 - 06/30/2022+

  $ 14.08     $ 0.35     $ (3.12   $ (0.02   $ 0.00     $ (2.79   $ (0.39   $ 0.00     $ 0.00     $ (0.39   $ 0.00  

12/31/2021

    14.28       0.71       (0.12     (0.01     0.00       0.58       (0.78     0.00       0.00       (0.78     0.00  

12/31/2020

    14.20       0.74       0.20       (0.07     0.00       0.87       (0.78     (0.01     0.00       (0.79     0.00  

12/31/2019

    13.32       0.80       1.16       (0.16     0.00       1.80       (0.92     0.00       0.00       (0.92     0.00  

12/31/2018

    14.20       0.92       (0.94     (0.17     0.00       (0.19     (0.92     0.00       0.00       (0.92     0.23  

12/31/2017

    13.83       0.97       0.43       (0.11     0.00       1.29       (0.92     0.00       0.00       (0.92     0.00  

PIMCO California Municipal Income Fund II

                     

01/01/2022 - 06/30/2022+

  $ 9.11     $ 0.21     $ (2.27   $ (0.01   $ 0.00     $ (2.07   $ (0.19   $ 0.00     $ 0.00     $ (0.19   $ 0.00  

12/31/2021

    9.13       0.40       (0.04     0.00       0.00       0.36       (0.38     0.00       0.00       (0.38     0.00  

12/31/2020

    8.98       0.41       0.17       (0.04     0.00       0.54       (0.38     (0.01     0.00       (0.39     0.00  

12/31/2019

    8.29       0.50       0.87       (0.10     0.00       1.27       (0.42     (0.16     0.00       (0.58     0.00  

12/31/2018

    8.69       0.54       (0.57     (0.11     0.00       (0.14     (0.42     0.00       0.00       (0.42     0.16  

12/31/2017

    8.39       0.60       0.34       (0.07     0.00       0.87       (0.56     0.00       (0.01     (0.57     0.00  

PIMCO California Municipal Income Fund III

                     

01/01/2022 - 06/30/2022+

  $ 10.20     $ 0.25     $ (2.15   $ (0.02   $ 0.00     $ (1.92   $ (0.23   $ 0.00     $ 0.00     $ (0.23   $ 0.00  

12/31/2021

    10.29       0.52       (0.15     0.00       0.00       0.37       (0.46     0.00       0.00       (0.46     0.00  

12/31/2020

    10.20       0.52       0.09       (0.05     0.00       0.56       (0.46     (0.01     0.00       (0.47     0.00  

12/31/2019

    9.46       0.56       0.80       (0.11     0.00       1.25       (0.51     0.00       0.00       (0.51     0.00  

12/31/2018

    9.98       0.64       (0.68     (0.12     0.00       (0.16     (0.54     0.00       0.00       (0.54     0.18  

12/31/2017

    9.67       0.67       0.35       (0.08     0.00       0.94       (0.63     0.00       0.00       (0.63     0.00  

PIMCO New York Municipal Income Fund

                     

01/01/2022 - 06/30/2022+

  $ 12.13     $ 0.24     $ (2.74   $ (0.02   $ 0.00     $ (2.52   $ (0.25   $ 0.00     $ 0.00     $ (0.25   $ 0.00  

12/31/2021

    12.01       0.54       0.09       (0.01     0.00       0.62       (0.50     0.00       0.00       (0.50     0.00  

12/31/2020

    12.15       0.60       (0.17     (0.06     0.00       0.37       (0.50     (0.01     0.00       (0.51     0.00  

12/31/2019

    11.29       0.68       0.96       (0.13     0.00       1.51       (0.65     0.00       0.00       (0.65     0.00  

12/31/2018

    12.06       0.70       (0.77     (0.13     0.00       (0.20     (0.68     0.00       0.00       (0.68     0.11  

12/31/2017

    11.62       0.69       0.51       (0.08     0.00       1.12       (0.68     0.00       0.00       (0.68     0.00  

 

       
18   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
        

 

Common Share         
    
Ratios/Supplemental Data
 
                        Ratios to Average Net Assets Applicable to Common Shareholders     Portfolio
Turnover
Rate
 
Net Asset
Value End of
Year or
Period(a)
    Market Price
End of Year
or Period
    Total
Investment
Return(e)
        
    
Net Assets
Applicable
to Common
Shareholders
End of Year
or Period
(000s)
    Expenses(f)(g)     Expenses
Excluding
Waivers(f)(g)
    Expenses
Excluding
Interest
Expense(f)
    Expenses
Excluding
Interest
Expense
and
Waivers(f)
    Net
Investment
Income (Loss)(f)
 
                          
$   10.30     $   11.52       (22.17 )%    $   268,561       1.56 %*      1.56 %*      1.25 %*      1.25 %*      6.19 %*      11
  13.33       15.22       15.11       347,062       1.36       1.36       1.19       1.19       5.33       18  
  13.22       13.85       (2.99     343,020       1.59       1.59       1.23       1.23       5.71       21  
  13.35       15.10       26.76       345,113       1.92       1.92       1.18       1.18       6.20       16  
  12.36       12.55       2.22       318,313       1.77       1.77       1.23       1.23       7.16       24  
  12.87       13.00       (4.44     330,523       1.37       1.37       1.21       1.21       7.16       12  
 

    

    

 

 

                 
$ 9.52     $ 10.74       (24.15 )%    $ 604,911       1.55 %*      1.55 %*      1.13 %*      1.13 %*      5.94 %*      12
  12.37       14.61       7.47       783,316       1.30       1.30       1.08       1.08       5.32       13  
  12.42       14.30       (4.81     782,327       1.59       1.59       1.11       1.11       5.70       20  
  12.50       15.87       25.88       782,682       2.06       2.06       1.06       1.06       6.25       12  
  11.62       13.31       7.57       723,713       1.93       1.93       1.13       1.13       6.94       23  
  12.13       13.18       14.85       751,337       1.30       1.30       1.10       1.10       6.74       12  
 

    

    

 

 

                 
$ 8.70     $ 9.22       (25.63 )%    $ 289,932       1.62 %*      1.62 %*      1.20 %*      1.20 %*      6.18 %*      12
  11.41       12.75       12.32       379,521       1.37       1.37       1.15       1.15       5.18       9  
  11.36       11.89       (0.54     376,741       1.64       1.64       1.18       1.18       5.57       25  
  11.34       12.58       19.03       374,805       2.04       2.04       1.14       1.14       6.48       14  
  10.49       11.14       3.39       345,557       1.89       1.89       1.19       1.19       7.11       25  
  11.06       11.58       8.19       363,063       1.39       1.39       1.19       1.19       7.07       14  
 

    

    

 

 

                 
$ 10.90     $ 15.41       (14.89 )%    $ 206,377       1.66 %*      1.66 %*      1.26 %*      1.26 %*      5.85 %*      16
  14.08       18.58       7.99       266,321       1.44       1.44       1.20       1.20       5.05       11  
  14.28       17.98       (4.94     269,561       1.67       1.67       1.22       1.22       5.28       15  
  14.20       19.86       29.47       267,390       2.09       2.09       1.18       1.18       5.75       16  
  13.32       16.15       (0.66     250,306       2.10       2.10       1.23       1.23       6.80       29  
  14.20       17.28       16.74       266,019       1.60       1.60       1.21       1.21       6.86       13  
 

    

    

 

 

                 
$ 6.85     $ 6.86       (24.75 )%    $ 220,478       1.62 %*      1.62 %*      1.27 %*      1.27 %*      5.41 %*      14
  9.11       9.35       7.99       293,165       1.41       1.41       1.21       1.21       4.44       11  
  9.13       9.03       (5.58     293,591       1.62       1.62       1.23       1.23       4.68       19  
  8.98       10.00       36.01       288,138       1.99       1.99       1.18       1.18       5.61       16  
  8.29       7.83       (19.01     265,245       1.88       1.88       1.29       1.29       6.51       37  
  8.69       10.17       17.31       277,787       1.49       1.49       1.24       1.24       6.94       14  
 

    

    

 

 

                 
$ 8.05     $ 8.26       (23.65 )%    $ 180,556       1.66 %*      1.66 %*      1.26 %*      1.26 %*      5.77 %*      16
  10.20       11.10       13.11       228,733       1.45       1.45       1.21       1.21       5.06       13  
  10.29       10.25       (5.89     230,271       1.68       1.68       1.23       1.23       5.13       13  
  10.20       11.41       25.66       227,745       2.12       2.12       1.20       1.20       5.59       16  
  9.46       9.53       (3.49     210,974       2.13       2.13       1.25       1.25       6.70       21  
  9.98       10.44       (2.46     221,976       1.65       1.65       1.23       1.23       6.77       9  
 

    

    

 

 

                 
$ 9.36     $ 9.16       (23.57 )%    $ 73,502       1.46 %*      1.46 %*      1.26 %*      1.26 %*      4.69 %*      19
  12.13       12.29       9.70       95,190       1.25       1.25       1.20       1.20       4.44       23  
  12.01       11.68       (11.51     94,059       1.52       1.52       1.23       1.23       5.13       26  
  12.15       13.80       24.04       95,010       1.97       1.97       1.19       1.19       5.74       25  
  11.29       11.70       (2.90     87,913       1.81       1.81       1.27       1.27       6.11       22  
  12.06       12.78       13.44       93,564       1.55       1.55       1.30       1.30       5.73       22  

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     19
    


Table of Contents
Financial Highlights   (Cont.)  

 

          Investment Operations     Less Distributions
to Preferred
Shareholders(c)
          Less Distributions to Common Shareholders(d)        
                                           
Selected Per Share Data for the Year or
Period Ended^:
  Net Asset
Value
Beginning
of Year
or Period(a)
   

Net
Investment
Income
(Loss)(b)

    Net
Realized/
Unrealized
Gain (Loss)
    From Net
Investment
Income
    From Net
Realized
Capital
Gains
    Net Increase
(Decrease)
in Net Assets
Applicable
to Common
Shareholders
Resulting
from
Operations
    From Net
Investment
Income
    From Net
Realized
Capital
Gains
    Tax Basis
Return of
Capital
    Total     Increase
Resulting from
Tender of
ARPS(c)
 

PIMCO New York Municipal Income Fund II

                     

01/01/2022 - 06/30/2022+

  $   11.66     $   0.24     $   (2.74   $   (0.02   $   0.00     $   (2.52   $   (0.24   $   0.00     $   0.00     $   (0.24   $   0.00  

12/31/2021

    11.50       0.48       0.17       (0.01     0.00       0.64       (0.48     0.00       0.00       (0.48     0.00  

12/31/2020

    11.59       0.56       (0.12     (0.05     0.00       0.39       (0.48     0.00       0.00       (0.48     0.00  

12/31/2019

    10.67       0.63       0.93       (0.13     0.00       1.43       (0.51     0.00       0.00       (0.51     0.00  

12/31/2018

    11.17       0.71       (0.73     (0.15     0.00       (0.17     (0.57     0.00       (0.04     (0.61     0.28  

12/31/2017

    10.71       0.72       0.46       (0.10     0.00       1.08       (0.60     0.00       (0.02     (0.62     0.00  

PIMCO New York Municipal Income Fund III

                     

01/01/2022 - 06/30/2022+

  $ 9.20     $ 0.21     $ (2.01   $ (0.02   $ 0.00     $ (1.82   $ (0.21   $ 0.00     $ 0.00     $ (0.21   $ 0.00  

12/31/2021

    9.15       0.44       0.05       (0.01     0.00       0.48       (0.43     0.00       0.00       (0.43     0.00  

12/31/2020

    9.29       0.48       (0.14     (0.05     0.00       0.29       (0.42     0.00       (0.01     (0.43     0.00  

12/31/2019

    8.66       0.55       0.66       (0.13     0.00       1.08       (0.41     0.00       (0.04     (0.45     0.00  

12/31/2018

    9.27       0.57       (0.61     (0.13     0.00       (0.17     (0.49     0.00       (0.02     (0.51     0.07  

12/31/2017

    8.95       0.56       0.36       (0.08     0.00       0.84       (0.52     0.00       0.00       (0.52     0.00  

 

       
20   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
        

 

Common Share         
    
Ratios/Supplemental Data
 
                        Ratios to Average Net Assets Applicable to Common Shareholders     Portfolio
Turnover
Rate
 
Net Asset
Value End of
Year or
Period(a)
    Market Price
End of Year
or Period
    Total
Investment
Return(e)
        
    
Net Assets
Applicable
to Common
Shareholders
End of Year
or Period
(000s)
    Expenses(f)(g)     Expenses
Excluding
Waivers(f)(g)
    Expenses
Excluding
Interest
Expense(f)
    Expenses
Excluding
Interest
Expense
and
Waivers(f)
    Net
Investment
Income (Loss)(f)
 
 

    

    

 

 

                 
$ 8.90     $ 8.74       (21.04 )%    $ 99,655       1.78 %*      1.78 %*      1.38 %*      1.38 %*      4.84 %*      19
    11.66         11.35       8.87         130,581       1.57       1.57       1.31       1.31       4.18       14  
  11.50       10.87       (5.82     128,709       1.84       1.84       1.35       1.35       4.97       22  
  11.59       12.07       20.57       129,596       2.16       2.16       1.27       1.27       5.62       17  
  10.67       10.47       (7.67     119,014       2.15       2.15       1.40       1.40       6.64       24  
  11.17       12.00       5.77       124,295       1.63       1.63       1.35       1.35       6.51       16  
 

    

    

 

 

                 
$ 7.17     $ 7.84       (13.55 )%    $ 41,180       1.78 %*      1.78 %*      1.56 %*      1.56 %*      5.42 %*      17
  9.20       9.31       8.99       52,786       1.62       1.62       1.49       1.49       4.78       16  
  9.15       8.93       (2.75     52,414       1.80       1.80       1.49       1.49       5.32       27  
  9.29       9.63       16.76       53,135       2.19       2.19       1.47       1.47       6.06       14  
  8.66       8.65       (7.67     49,484       2.18       2.18       1.54       1.54       6.45       24  
  9.27       9.92       4.34       52,884       1.83       1.83       1.57       1.57       6.07       12  

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     21
    


Table of Contents
Financial Highlights   (Cont.)  

 

Ratios/Supplemental Data

 

    ARPS     RVMTP(5)  
Selected Per Share Data for the Year or
Period Ended^:
  Total Amount
Outstanding
    Asset Coverage per
Preferred Share(1)
    Involuntary
Liquidating
Preference per
Preferred  Share(2)
    Average
Market Value
per ARPS(3)
    Total Amount
Outstanding
    Asset Coverage per
Preferred Share(1)
    Involuntary
Liquidating
Preference per
Preferred  Share(2)
    Average
Market Value
per RVMTP(4)
 

PIMCO Municipal Income Fund

               
1/1/2022 - 6/30/2022+   $   166,700,000     $   60,330     $   25,000       N/A     $   23,300,000     $   241,320     $   100,000       N/A  
12/31/2021     166,700,000       70,665       25,000       N/A       23,300,000       282,660       100,000       N/A  
12/31/2020     166,700,000       70,133       25,000       N/A       23,300,000       280,530       100,000       N/A  
12/31/2019     166,700,000       70,395       25,000       N/A       23,300,000       281,580       100,000       N/A  
12/31/2018     166,700,000       66,868       25,000       N/A       23,300,000       267,440       100,000       N/A  
12/31/2017     190,000,000       68,475       25,000       N/A       N/A       N/A       100,000       N/A  

PIMCO Municipal Income Fund II

               
1/1/2022 - 6/30/2022+   $ 298,275,000     $ 66,203     $ 25,000       N/A     $ 68,700,000     $ 264,810     $ 100,000       N/A  
12/31/2021     298,275,000       78,363       25,000       N/A       68,700,000       313,450       100,000       N/A  
12/31/2020     298,275,000       78,293       25,000       N/A       68,700,000       313,170       100,000       N/A  
12/31/2019     298,275,000       78,308       25,000       N/A       68,700,000       313,230       100,000       N/A  
12/31/2018     298,275,000       74,285       25,000       N/A       68,700,000       297,110       100,000       N/A  
12/31/2017     367,000,000       76,136       25,000       N/A       N/A       N/A       100,000       N/A  

PIMCO Municipal Income Fund III

               
1/1/2022 - 6/30/2022+   $ 154,700,000     $ 63,343     $ 25,000       N/A     $ 34,300,000     $ 253,370     $ 100,000       N/A  
12/31/2021     154,700,000       75,200       25,000       N/A       34,300,000       300,800       100,000       N/A  
12/31/2020     154,700,000       74,833       25,000       N/A       34,300,000       299,330       100,000       N/A  
12/31/2019     154,700,000       74,565       25,000       N/A       34,300,000       298,260       100,000       N/A  
12/31/2018     154,700,000       70,693       25,000       N/A       34,300,000       282,740       100,000       N/A  
12/31/2017     189,000,000       73,007       25,000       N/A       N/A       N/A       100,000       N/A  

PIMCO California Municipal Income Fund

               
1/1/2022 - 6/30/2022+   $ 120,625,000     $ 59,410     $ 25,000       N/A     $ 29,300,000     $ 237,640     $ 100,000       N/A  
12/31/2021     120,625,000       69,408       25,000       N/A       29,300,000       277,630       100,000       N/A  
12/31/2020     120,625,000       69,948       25,000       N/A       29,300,000       279,790       100,000       N/A  
12/31/2019     120,625,000       69,580       25,000       N/A       29,300,000       278,320       100,000       N/A  
12/31/2018     120,625,000       66,725       25,000       N/A       29,300,000       266,870       100,000       N/A  
12/31/2017     150,000,000       69,320       25,000       N/A       N/A       N/A       100,000       N/A  

PIMCO California Municipal Income Fund II

               
1/1/2022 - 6/30/2022+   $ 128,675,000     $ 58,815     $ 25,000       N/A     $ 34,300,000     $ 235,260     $ 100,000       N/A  
12/31/2021     128,675,000       69,970       25,000       N/A       34,300,000       279,880       100,000       N/A  
12/31/2020     128,675,000       70,035       25,000       N/A       34,300,000       280,140       100,000       N/A  
12/31/2019     128,675,000       69,188       25,000       N/A       34,300,000       276,750       100,000       N/A  
12/31/2018     128,675,000       65,675       25,000       N/A       34,300,000       262,670       100,000       N/A  
12/31/2017     163,000,000       67,590       25,000       N/A       N/A       N/A       100,000       N/A  

PIMCO California Municipal Income Fund III

               
1/1/2022 - 6/30/2022+   $ 97,875,000     $ 61,108     $ 25,000       N/A     $ 27,100,000     $ 244,430     $ 100,000       N/A  
12/31/2021     97,875,000       70,755       25,000       N/A       27,100,000       283,020       100,000       N/A  
12/31/2020     97,875,000       71,063       25,000       N/A       27,100,000       284,250       100,000       N/A  
12/31/2019     97,875,000       70,545       25,000       N/A       27,100,000       282,180       100,000       N/A  
12/31/2018     97,875,000       67,188       25,000       N/A       27,100,000       268,720       100,000       N/A  
12/31/2017     125,000,000       69,379       25,000       N/A       N/A       N/A       100,000       N/A  

PIMCO New York Municipal Income Fund

               
1/1/2022 - 6/30/2022+   $ 41,025,000     $ 69,788     $ 25,000       N/A       N/A       N/A     $ 100,000       N/A  
12/31/2021     41,025,000       83,005       25,000       N/A       N/A       N/A       100,000       N/A  
12/31/2020     41,025,000       82,318       25,000       N/A       N/A       N/A       100,000       N/A  
12/31/2019     41,025,000       82,875       25,000       N/A       N/A       N/A       100,000       N/A  
12/31/2018     41,025,000       78,545       25,000       N/A       N/A       N/A       100,000       N/A  
12/31/2017     47,000,000       74,749       25,000       N/A       N/A       N/A       100,000       N/A  

 

       
22   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
        

 

    ARPS     RVMTP(5)  
Selected Per Share Data for the Year or
Period Ended^:
  Total Amount
Outstanding
    Asset Coverage per
Preferred Share(1)
    Involuntary
Liquidating
Preference per
Preferred Share(2)
    Average
Market Value
per ARPS(3)
    Total Amount
Outstanding
    Asset Coverage per
Preferred Share(1)
    Involuntary
Liquidating
Preference per
Preferred Share(2)
    Average
Market Value
per RVMTP(4)
 

PIMCO New York Municipal Income Fund II

               
1/1/2022 - 6/30/2022+   $   58,000,000     $   56,533     $   25,000       N/A     $   21,000,000     $   226,130     $   100,000       N/A  
12/31/2021     58,000,000       66,323       25,000       N/A       21,000,000       265,290       100,000       N/A  
12/31/2020     58,000,000       65,730       25,000       N/A       21,000,000       262,920       100,000       N/A  
12/31/2019     58,000,000       66,003       25,000       N/A       21,000,000       264,010       100,000       N/A  
12/31/2018     58,000,000       62,655       25,000       N/A       21,000,000       250,600       100,000       N/A  
12/31/2017     79,000,000       64,320       25,000       N/A       N/A       N/A       100,000       N/A  

PIMCO New York Municipal Income Fund III

               
1/1/2022 - 6/30/2022+   $ 29,450,000     $ 59,953     $ 25,000       N/A       N/A       N/A     $ 100,000       N/A  
12/31/2021     29,450,000       69,808       25,000       N/A       N/A       N/A       100,000       N/A  
12/31/2020     29,450,000       69,493       25,000       N/A       N/A       N/A       100,000       N/A  
12/31/2019     29,450,000       70,100       25,000       N/A       N/A       N/A       100,000       N/A  
12/31/2018     29,450,000       66,985       25,000       N/A       N/A       N/A       100,000       N/A  
12/31/2017     32,000,000       66,300       25,000       N/A       N/A       N/A       100,000       N/A  

 

^

A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

+

Unaudited

*

Annualized, except for organization expense, if any.

(a) 

Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds.

(b) 

Per share amounts based on average number of common shares outstanding during the year or period.

(c) 

Auction Rate Preferred Shareholders (“ARPS”). See Note 12, Auction Rate Preferred Shares, in the Notes to Financial Statements for more information

(d) 

The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions — Common Shares, in the Notes to Financial Statements for more information.

(e) 

Total investment return is calculated assuming a purchase of a common share at the market price on the first day and a sale of a common share at the market price on the last day of each year or period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Funds’ dividend reinvestment plan. Total investment return does not reflect brokerage commissions in connection with the purchase or sale of Fund shares.

(f) 

Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders. The expense ratio and net investment income do not reflect the effects of dividend payments to preferred shareholders.

(g) 

Ratio includes interest expense which primarily relates to participation in borrowing and financing transactions, interest paid to RVMTP shareholders and the amortization of debt issuance costs of RVMTP Shares. See Note 5, Borrowings and Other Financing Transactions and Note 12, Remarketable Variable Rate MuniFund Term Preferred Shares in the Notes to Financial Statements for more information.

1 

“Asset Coverage per Preferred Share” means the ratio that the value of the total assets of the Fund, less all liabilities and indebtedness not represented by ARPS or RVMTP, bears to the aggregate of the involuntary liquidation preference of ARPS or RVMTP, expressed as a dollar amount per ARPS or RVMTP.

2 

“Involuntary Liquidating Preference” means the amount to which a holder of ARPS or RVMTP would be entitled upon the involuntary liquidation of the Fund in preference to the Common Shareholders, expressed as a dollar amount per Preferred Share.

3 

The ARPS have no readily ascertainable market value. Auctions for the ARPS have failed since February 2008, there is currently no active trading market for the ARPS and the Fund is not able to reliably estimate what their value would be in a third-party market sale. The liquidation value of the ARPS represents its liquidation preference, which approximates fair value of the shares less any accumulated unpaid dividends. See Note 12, Auction Rate Preferred Shares, in the Notes to Financial Statements for more information.

4 

The RVMTP have no readily ascertainable market value. The liquidation value of the RVMTP represents its liquidation preference, which approximates fair value of the shares less any unamortized debt issuance costs. See Note 12, Remarketable Variable Rate MuniFund Term Preferred Shares, in the Notes to Financial Statements for more information.

5

Prior to July 14, 2021, RVMTP Shares were VMTP Shares. See Note 12, Remarketable Variable Rate MuniFund Term Preferred Shares.

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     23
    


Table of Contents
Statements of Assets and Liabilities           

 

(Amounts in thousands, except per share amounts)  

PIMCO
Municipal
Income

Fund

   

PIMCO
Municipal
Income

Fund II

   

PIMCO
Municipal
Income

Fund III

   

PIMCO
California
Municipal
Income

Fund

 

Assets:

       

Investments, at value

                               

Investments in securities*

  $ 503,677     $ 1,131,110     $ 527,064     $ 388,901  

Cash

    1       0       0       0  

Receivable for investments sold

    934       934       934       1,063  

Interest and/or dividends receivable

    5,854       12,708       6,258       5,158  

Other assets

    190       970       157       109  

Total Assets

    510,656       1,145,722       534,413       395,231  

Liabilities:

       

Borrowings & Other Financing Transactions

                               

Payable for tender option bond floating rate certificates

  $ 42,754     $ 148,988     $ 52,835     $ 30,121  

Remarketable Variable Rate MuniFund Term Preferred Shares, at liquidation value**

    23,258       68,623       34,249       29,253  

Payable for investments purchased

    7,568       20,393       706       7,297  

Distributions payable to common shareholders

    1,408       3,748       1,532       1,231  

Distributions payable to auction rate preferred shareholders

    42       71       39       17  

Accrued management fees

    267       550       280       208  

Other liabilities

    98       163       140       102  

Total Liabilities

    75,395       242,536       89,781       68,229  

Auction Rate Preferred Shares^

    166,700       298,275       154,700       120,625  

Net Assets Applicable to Common Shareholders

  $ 268,561     $ 604,911     $ 289,932     $ 206,377  

Net Assets Applicable to Common Shareholders Consist of:

       

Par value^^

  $ 0     $ 1     $ 0     $ 0  

Paid in capital in excess of par

    289,049       664,088       315,485       227,244  

Distributable earnings (accumulated loss)

    (20,488     (59,178     (25,553     (20,867

Net Assets Applicable to Common Shareholders

  $ 268,561     $ 604,911     $ 289,932     $ 206,377  

Net Asset Value Per Common Share(a)

  $ 10.30     $ 9.52     $ 8.70     $ 10.90  

Common Shares Outstanding

    26,081       63,519       33,306       18,939  

Auction Rate Preferred Shares Issued and Outstanding

    7       12       6       5  

Cost of investments in securities

  $   515,343     $   1,158,765     $   540,895     $   398,137  

* Includes repurchase agreements of:

  $ 5,434     $ 12,515     $ 3,770     $ 11,049  

** Includes unamortized debt issuance cost of

  $ 42     $ 77     $ 51     $ 47  

 

 

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

^ 

($0.00001 par value and $25,000 liquidation preference per share)

^^ 

($0.00001 per share)

(a) 

Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds.

 

       
24   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022 (Unaudited)

 

PIMCO

California
Municipal

Income

Fund II

   

PIMCO

California

Municipal

Income

Fund III

   

PIMCO

New York

Municipal

Income

Fund

   

PIMCO

New York

Municipal

Income

Fund II

   

PIMCO

New York

Municipal

Income

Fund III

 
       
                                     
$ 405,733     $ 326,937     $ 130,760     $ 186,044     $ 72,676  
  0       0       1       1       1  
  1,063       797       0       0       0  
  5,043       4,266       1,163       1,877       792  
  27       30       338       16       22  
  411,866       332,030       132,262       187,938       73,491  
       
                                     
$ 25,587     $ 24,154     $ 16,638     $ 7,587     $ 2,216  
  34,249       27,054       0       20,959       0  
  1,495       1,216       656       883       361  
  1,030       852       330       449       204  
  29       40       5       7       4  
  224       181       73       109       50  
  99       102       33       289       26  
  62,713       53,599       17,735       30,283       2,861  
  128,675       97,875       41,025       58,000       29,450  
$ 220,478     $ 180,556     $ 73,502     $ 99,655     $ 41,180  
              
$ 0     $ 0     $ 0     $ 0     $ 0  
  235,225       195,799       83,236       112,778       46,040  
  (14,747     (15,243     (9,734     (13,123     (4,860
$ 220,478     $ 180,556     $ 73,502     $ 99,655     $ 41,180  
$ 6.85       8.05     $ 9.36     $ 8.90     $ 7.17  
  32,202       22,437       7,852       1,1203       5,740  
  5       4       2       2       1  
$   409,559     $   334,715     $   136,825     $   190,612     $   74,961  
$ 1,023     $ 3,333     $ 1,275     $ 6,547     $ 798  
$ 51     $ 46     $ 0     $ 41     $ 0  

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     25
    


Table of Contents
Statements of Operations              

 

Six Months Ended June 30, 2022 (Unaudited)                        
(Amounts in thousands)  

PIMCO
Municipal
Income

Fund

   

PIMCO
Municipal
Income

Fund II

   

PIMCO
Municipal
Income

Fund III

   

PIMCO
California
Municipal
Income

Fund

 

Investment Income:

       

Interest

  $ 11,455     $ 24,977     $ 12,553     $ 8,533  

Total Income

    11,455       24,977       12,553       8,533  

Expenses:

       

Management fees

    1,699       3,517       1,789       1,319  

Trustee fees and related expenses

    36       77       38       28  

Interest expense

    458       1,392       668       459  

Auction agent fees and commissions

    86       144       81       59  

Auction rate preferred shares related expenses

    25       23       24       25  

Miscellaneous expense

    7       14       7       5  

Total Expenses

    2,311       5,167       2,607       1,895  

Net Investment Income (Loss)

    9,144       19,810       9,946       6,638  

Net Realized Gain (Loss):

       

Investments in securities

    (8,220     (20,732     (11,094     (11,633

Net Realized Gain (Loss)

    (8,220     (20,732     (11,094     (11,633

Net Change in Unrealized Appreciation (Depreciation):

       

Investments in securities

    (71,057     (156,402     (79,265     (47,549

Net Change in Unrealized Appreciation (Depreciation)

    (71,057     (156,402     (79,265     (47,549

Net Increase (Decrease) in Net Assets Resulting from Operations

  $   (70,133   $   (157,324   $   (80,413   $   (52,544

Distributions on Auction Rate Preferred Shares from Net Investment Income and/or Net Realized Capital Gains

  $ (559   $ (999   $ (519   $ (395

Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

  $ (70,692   $ (158,323   $ (80,932   $ (52,939

 

 

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

 

       
26   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
        

 

                           

PIMCO

California
Municipal

Income

Fund II

   

PIMCO

California

Municipal

Income

Fund III

   

PIMCO

New York

Municipal

Income

Fund

   

PIMCO

New York

Municipal

Income

Fund II

   

PIMCO

New York

Municipal

Income

Fund III

 
       
$ 8,630     $ 7,312     $ 2,494     $ 3,665     $ 1,636  
  8,630       7,312       2,494       3,665       1,636  
       
  1,428       1,142       467       691       320  
  31       24       9       14       5  
  424       390       81       220       49  
  79       48       19       32       15  
  24       25       13       25       14  
  6       4       2       2       1  
  1,992       1,633       591       984       404  
  6,638       5,679       1,903       2,681       1,232  
       
  (10,341     (8,345     (2,740     (4,328     (2,220
  (10,341     (8,345     (2,740     (4,328     (2,220
       
  (62,458     (40,219     (18,763     (26,397     (9,337
  (62,458     (40,219     (18,763     (26,397     (9,337
$   (66,161   $   (42,885   $   (19,600   $   (28,044   $ (10,325

$

(430

  $ (339   $ (135   $ (190   $ (97

$

(66,591

  $ (43,224   $ (19,735   $ (28,234   $   (10,422

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     27
    


Table of Contents
Statements of Changes in Net Assets              

 

   

PIMCO

Municipal Income Fund

   

PIMCO

Municipal Income Fund II

 
(Amounts in thousands)  

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
   

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
 

Increase (Decrease) in Net Assets from:

       

Operations:

       

Net investment income (loss)

  $ 9,144     $ 18,394     $ 19,810     $ 41,674  

Net realized gain (loss)

    (8,220     1,621       (20,732     1,889  

Net change in unrealized appreciation (depreciation)

    (71,057     (163     (156,402     (2,294

Net Increase (Decrease) in Net Assets Resulting from Operations

    (70,133     19852       (157,324     41,269  

Distributions on auction rate preferred shares from net investment income and/or realized capital gains

    (559     (172     (999     (294

Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

    (70,692     19,680       (158,323     40,975  

Distributions to Common Shareholders:

       

From net investment income and/or net realized capital gains

    (8,442     (16,840     (22,454     (44,718

Total Distributions to Common Shareholders(a)

    (8,442     (16,840     (22,454     (44,718

Common Share Transactions*:

       

Issued as reinvestment of distributions

    633       1,202       2,372       4,732  

Total increase (decrease) in net assets applicable to common shareholders

    (78,501     4,042         (178,405     989  

Net Assets Applicable to Common Shareholders:

       

Beginning of period

    347,062       343,020       783,316       782,327  

End of period

  $   268,561     $   347,062     $ 604,911     $   783,316  

*Common Share Transactions:

       

Shares issued as reinvestment of distributions

    53       87       201       339  

 

 

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

(a) 

The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions — Common Shares, in the Notes to Financial Statements for more information.

 

       
28   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
        

 

PIMCO

Municipal Income Fund III

   

PIMCO

California Municipal Income Fund

   

PIMCO

California Municipal Income Fund II

   

PIMCO

California Municipal Income Fund III

 

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
   

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
   

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
   

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
 
             
             
$ 9,946     $ 19,606     $ 6,638     $ 13,473     $ 6,638     $ 12,957     $ 5,679     $ 11,577  
  (11,094     652       (11,633     330       (10,341     168       (8,345     374  
  (79,265     (195     (47,549     (2,908     (62,458     (1,478     (40,219     (3,580
  (80,413     20,063       (52,544     10,895       (66,161     11,647       (42,885     8,371  

 

(519

    (154     (395     (121     (430     (127     (339     (96

 

(80,932

    19,909       (52,939     10,774       (66,591     11,520       (43,224     8,275  
             
  (9,187     (18,331     (7,382     (14,739     (6,182     (12,353     (5,114     (10,215
  (9,187     (18,331     (7,382     (14,739     (6,182     (12,353     (5,114     (10,215
             
  530       1,202       377       725       86       407       161       402  
  (89,589     2,780       (59,944     (3,240     (72,687     (426     (48,177     (1,538
             
  379,521       376,741       266,321       269,561       293,165       293,591       228,733       230,271  
$   289,932     $   379,521     $   206,377     $   266,321     $   220,478     $   293,165     $   180,556     $   228,733  
             
  50       101       24       42       11       44       18       38  

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     29
    


Table of Contents
Statements of Changes in Net Assets   (Cont.)  

 

   

PIMCO

New York Municipal Income Fund

   

PIMCO

New York Municipal Income Fund II

   

PIMCO

New York Municipal Income Fund III

 
(Amounts in thousands)  

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
   

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
   

Six Months Ended

June 30, 2022

(Unaudited)

    Year Ended
December 31, 2021
 

Increase (Decrease) in Net Assets from:

           

Operations:

           

Net investment income (loss)

  $ 1,903     $ 4,198     $ 2,681     $ 5,418     $ 1,232     $ 2,516  

Net realized gain (loss)

    (2,740     (368     (4,328     (388     (2,220     (13

Net change in unrealized appreciation (depreciation)

      (18,763     1,041       (26,397     2,106       (9,337     267  

Net Increase (Decrease) in Net Assets Resulting from Operations

    (19,600     4,871       (28,044     7,136       (10,325     2,770  

Distributions on auction rate preferred shares from net investment income and/or realized capital gains

    (135     (40     (190     (57     (97     (29

Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

    (19,735     4,831       (28,234     7,079       (10,422     2,741  

Distributions to Common Shareholders:

           

From net investment income and/or net realized capital gains

    (1,979     (3,951     (2,692     (5,380     (1,222     (2,441

Total Distributions to Common Shareholders(a)

    (1,979     (3,951     (2,692     (5,380     (1,222     (2,441

Common Share Transactions*:

           

Issued as reinvestment of distributions

    26       251       0       173       38       72  

Total increase (decrease) in net assets applicable to common shareholders

      (21,688     1,131         (30,926     1,872         (11,606     372  

Net Assets Applicable to Common Shareholders:

           

Beginning of period

    95,190       94,059       130,581       128,709       52,786       52,414  

End of period

  $ 73,502     $   95,190     $ 99,655     $   130,581     $ 41,180     $   52,786  

* Common Share Transactions:

           

Shares issued as reinvestment of distributions

    2       21       0       14       4       8  

 

 

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

(a) 

The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions — Common Shares, in the Notes to Financial Statements for more information.

 

       
30   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
Statements of Cash Flows              

 

Six Months Ended June 30, 2022 (Unaudited)                        
(Amounts in thousands)   PIMCO
Municipal
Income Fund
    PIMCO
Municipal
Income Fund II
    PIMCO
Municipal
Income Fund III
    PIMCO
California
Municipal
Income Fund
 

Cash Flows Provided by (Used for) Operating Activities:

       

Net increase (decrease) in net assets resulting from operations

  $ (70,133   $   (157,324   $ (80,413   $ (52,544

Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities:

       

Purchases of long-term securities

      (114,304     (282,403       (118,237     (98,712

Proceeds from sales of long-term securities

    127,117       326,792       159,821         133,068  

(Purchases) Proceeds from sales of short-term portfolio investments, net

    2,277       8,797       (4,401     (11,691

(Increase) decrease in receivable for investments sold

    (934     (934     (934     (1,063

(Increase) decrease in interest and/or dividends receivable

    71       592       312       37  

(Increase) decrease in other assets

    (136     (30     (94     2  

Increase (decrease) in payable for investments purchased

    7,568       20,393       706       7,297  

Increase (decrease) in accrued management fees

    (75     (162     (82     (57

Increase (decrease) in other liabilities

    (342     (61     (429     (320

Net Realized (Gain) Loss

                               

Investments in securities

    8,220       20,732       11,094       11,633  

Net Change in Unrealized (Appreciation) Depreciation

                               

Investments in securities

    71,057       156,402       79,265       47,549  

Net amortization (accretion) on investments

    (502     (161     (384     377  

Amortization of debt issuance cost

    4       1       3       4  

Net Cash Provided by (Used for) Operating Activities

    29,888       92,634       46,227       35,580  

Cash Flows Received from (Used for) Financing Activities:

       

Cash distributions paid to common shareholders*

    (7,806     (20,070     (8,655     (7,003

Cash distributions paid to auction rate preferred shareholders

    (521     (934     (483     (381

Proceeds from tender option bond transactions

    46,930       113,655       55,255       15,035  

Payments on tender option bond transactions

    (68,496     (185,303     (92,353     (43,238

Proceeds on Remarketable Variable Rate MuniFund Term Preferred Shares, Net

    6       17       9       7  

Net Cash Received from (Used for) Financing Activities

    (29,887     (92,635     (46,227     (35,580

Net Increase (Decrease) in Cash and Foreign Currency

    1       (1     0       0  

Cash and Foreign Currency:

       

Beginning of period

    0       1       0       0  

End of period

  $ 1     $ 0     $ 0     $ 0  

* Reinvestment of distributions to common shareholders

  $ 633     $ 2,372     $ 530     $ 377  

Supplemental Disclosure of Cash Flow Information:

       

Interest expense paid during the period

  $ 426     $ 1,243     $ 616     $ 429  

 

 

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

A Statement of Cash Flows is presented when a Fund has a significant amount of borrowing during the period, based on the average total borrowing outstanding in relation to total assets or when substantially all of a Fund’s investments are not classified as Level 1 or 2 in the fair value hierarchy.

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     31
    


Table of Contents
Statements of Cash Flows (Cont.)              

 

Six Months Ended June 30, 2022 (Unaudited)                              
(Amounts in thousands)   PIMCO
California
Municipal
Income Fund II
    PIMCO
California
Municipal
Income Fund III
    PIMCO
New York
Municipal
Income Fund
    PIMCO
New York
Municipal
Income Fund II
    PIMCO
New York
Municipal
Income Fund III
 

Cash Flows Provided by (Used for) Operating Activities:

         

Net increase (decrease) in net assets resulting from operations

  $   (66,161   $   (42,885   $   (19,600   $   (28,044   $   (10,325

Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities:

         

Purchases of long-term securities

    (87,725     (81,963     (35,292     (48,329     (18,790

Proceeds from sales of long-term securities

    102,677       103,511       43,439       57,247       28,884  

(Purchases) Proceeds from sales of short-term portfolio investments, net

    (520     (864     (11     (2,123     (673

(Increase) decrease in receivable for investments sold

    (1,063     (797     0       0       0  

(Increase) decrease in interest and/or dividends receivable

    (117     (77     161       73       59  

(Increase) decrease in other assets

    0       (1     474       (2     (15

Increase (decrease) in payable for investments purchased

    1,495       1,216       656       883       361  

Increase (decrease) in accrued management fees

    (66     (47     (22     (31     (14

Increase (decrease) in other liabilities

    (262     (240     (9     (305     (63

Net Realized (Gain) Loss

                                       

Investments in securities

    10,341       8,345       2,740       4,328       2,220  

Net Change in Unrealized (Appreciation) Depreciation

                                       

Investments in securities

    62,458       40,219       18,763       26,397       9,337  

Net amortization (accretion) on investments

    171       299       260       360       89  

Amortization of debt issuance cost

    3       4       0       5       0  

Net Cash Provided by (Used for) Operating Activities

    21,231       26,720       11,559       10,459       11,070  

Cash Flows Received from (Used for) Financing Activities:

         

Cash distributions paid to common shareholders*

    (6,096     (4,953     (1,953     (2,692     (1,183

Cash distributions paid to auction rate preferred shareholders

    (404     (301     (131     (184     (94

Proceeds from tender option bond transactions

    10,925       12,165       9,375       11,065       6,375  

Payments on tender option bond transactions

    (25,666     (33,637     (18,849     (18,653     (16,168

Proceeds on Remarketable Variable Rate MuniFund Term Preferred Shares, Net

    9       6       0       5       0  

Net Cash Received from (Used for) Financing Activities

    (21,232     (26,720     (11,558     (10,459     (11,070

Net Increase (Decrease) in Cash and Foreign Currency

    (1     0       1       0       0  

Cash and Foreign Currency:

         

Beginning of period

    1       0       0       1       1  

End of period

  $ 0     $ 0     $ 1     $ 1     $ 1  

* Reinvestment of distributions to common shareholders

  $ 86     $ 161     $ 26     $ 0     $ 38  

Supplemental Disclosure of Cash Flow Information:

         

Interest expense paid during the period

  $ 388     $ 365     $ 100     $ 207     $ 52  

 

 

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

A Statement of Cash Flows is presented when a Fund has a significant amount of borrowing during the period, based on the average total borrowing outstanding in relation to total assets or when substantially all of a Fund’s investments are not classified as Level 1 or 2 in the fair value hierarchy.

 

       
32   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund          June 30, 2022   (Unaudited)

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 187.5%

 

MUNICIPAL BONDS & NOTES 185.5%

 

ALABAMA 6.9%

 

Jefferson County, Alabama Sewer Revenue Bonds, Series 2013

 

0.000% due 10/01/2050 (d)

  $     15,000     $     15,184  

6.500% due 10/01/2053

      750         818  

Tuscaloosa County, Alabama Industrial Development Authority Revenue Bonds, Series 2019

 

4.500% due 05/01/2032

      1,282         1,157  

5.250% due 05/01/2044

      1,575         1,411  
       

 

 

 
            18,570  
       

 

 

 
ALASKA 0.0%

 

Alaska Industrial Development & Export Authority Revenue Bonds, Series 2007

 

6.000% due 12/01/2036 ^(b)

      900         18  
       

 

 

 
ARIZONA 4.2%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2019

 

4.500% due 01/01/2049

      900         568  

5.000% due 01/01/2043

      550         354  

5.500% due 01/01/2054

      1,500         940  

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

      1,100         1,199  

Industrial Development Authority of the County, Arizona of Pima Revenue Bonds, Series 2020

 

5.000% due 07/01/2055

      1,100         971  

Maricopa County, Arizona Industrial Development Authority Revenue Bonds, Series 2019

 

4.000% due 01/01/2044

      3,500         3,364  

Phoenix Civic Improvement Corp., Arizona Revenue Bonds, Series 2019

 

4.000% due 07/01/2049

      2,295         2,217  

5.000% due 07/01/2049

      1,700         1,793  
       

 

 

 
            11,406  
       

 

 

 
ARKANSAS 1.1%

 

Arkansas Development Finance Authority Revenue Bonds, (AMBAC Insured), Series 2006

 

0.000% due 07/01/2036 (c)

      5,500         3,047  
       

 

 

 
CALIFORNIA 9.2%

 

Bay Area Toll Authority, California Revenue Bonds, Series 2013

 

5.250% due 04/01/2053

      10,000         10,271  

Bay Area Toll Authority, California Revenue Bonds, Series 2014

 

5.000% due 10/01/2054

      3,000         3,196  

California County Tobacco Securitization Agency Revenue Bonds, Series 2002

 

6.000% due 06/01/2035

      1,150         1,150  

6.125% due 06/01/2038

      1,000         940  

California Health Facilities Financing Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2049

      2,000         1,874  

California State General Obligation Bonds, Series 2019

 

5.000% due 04/01/2045

      1,000         1,087  

Long Beach Bond Finance Authority, California Revenue Bonds, Series 2007

 

5.500% due 11/15/2030

      1,405         1,551  

Los Angeles Department of Airports, California Revenue Bonds, Series 2020

 

4.000% due 05/15/2048

      2,000         1,971  

M-S-R Energy Authority, California Revenue Bonds, Series 2009

 

6.125% due 11/01/2029

      1,880         2,099  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Morongo Band of Mission Indians, California Revenue Bonds, Series 2018

 

5.000% due 10/01/2042

  $     500     $     529  
       

 

 

 
            24,668  
       

 

 

 
COLORADO 6.3%

 

Colorado Health Facilities Authority Revenue Bonds, Series 2018

 

4.000% due 11/15/2048

      10,000         9,574  

Colorado Health Facilities Authority Revenue Bonds, Series 2019

 

4.000% due 08/01/2044

      2,000         1,843  

Colorado State Building Excellent School Certificates of Participation Bonds, Series 2018

 

4.000% due 03/15/2043

      1,015         1,006  

Harvest Crossing Metropolitan District No 4, Colorado General Obligation Bonds, Series 2022

 

7.250% due 12/01/2052

      1,250         1,187  

Public Authority for Colorado Energy Revenue Bonds, Series 2008

 

6.500% due 11/15/2038

      500         615  

Senac South Metropolitan District No 1, Colorado General Obligation Bonds, Series 2021

 

5.250% due 12/01/2051

      500         421  

Sisters of Charity of Leavenworth Health System, Inc. Obligated Group, Colorado Revenue Bonds, Series 2019

 

4.000% due 01/01/2040

      2,200         2,178  
       

 

 

 
            16,824  
       

 

 

 
CONNECTICUT 1.8%

 

Connecticut Special Tax Revenue State Special Tax Bonds, Series 2020

 

5.000% due 05/01/2035

      2,000         2,226  

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series 2012

 

5.000% due 07/01/2042

      2,500         2,500  
       

 

 

 
          4,726  
       

 

 

 
DELAWARE 2.0%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.461% due 07/01/2037

      4,940         4,499  

7.120% due 07/01/2037

      870         851  
       

 

 

 
          5,350  
       

 

 

 
DISTRICT OF COLUMBIA 1.1%

 

District of Columbia Revenue Bonds, Series 2022

 

5.500% due 02/29/2036

      1,625         1,757  

Metropolitan Washington Airports Authority Dulles Toll Road, District of Columbia Revenue Bonds, Series 2019

 

4.000% due 10/01/2049

      1,250         1,120  
       

 

 

 
          2,877  
       

 

 

 
FLORIDA 6.9%

 

Hillsborough County, Florida Industrial Development Authority Revenue Bonds, Series 2020

 

4.000% due 08/01/2055

      1,650         1,466  

Miami-Dade County, Florida Transit System Revenue Bonds, Series 2018

 

4.000% due 07/01/2044

      1,000         983  

4.000% due 07/01/2046

      1,000         975  

Miami-Dade County, Florida Water & Sewer System Revenue Bonds, Series 2019

 

4.000% due 10/01/2049 (e)

      2,500         2,383  

Orlando Utilities Commission, Florida Revenue Bonds, Series 2008

 

0.910% due 10/01/2033

      5,500         5,500  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Pasco County, Florida Water & Sewer Revenue Bonds, Series 2014

 

4.000% due 10/01/2044

  $     1,000     $     979  

Pompano Beach, Florida Revenue Bonds, Series 2020

 

4.000% due 09/01/2050

      1,500         1,237  

Putnam County Development Authority, Florida Revenue Bonds, Series 2018

 

5.000% due 03/15/2042

      1,000         1,083  

St Johns County, Florida Industrial Development Authority Revenue Bonds, Series 2020

 

4.000% due 08/01/2055

      1,400         1,404  

Tampa, Florida Revenue Bonds, Series 2016

 

4.000% due 11/15/2046

      2,500         2,433  
       

 

 

 
          18,443  
       

 

 

 
GEORGIA 5.2%

 

Atlanta Development Authority, Georgia Revenue Bonds, Series 2017

 

6.750% due 01/01/2035 ^(b)

      1,600         848  

Burke County, Georgia Development Authority Revenue Bonds, Series 2017

 

4.125% due 11/01/2045

      2,000         1,849  

Main Street Natural Gas, Inc., Georgia Revenue Bonds, Series 2019

 

5.000% due 05/15/2043

      2,000         2,070  

Municipal Electric Authority of Georgia Revenue Bonds, Series 2015

 

5.000% due 07/01/2060

      9,000         9,102  
       

 

 

 
            13,869  
       

 

 

 
HAWAII 0.5%

 

City & County Honolulu, Hawaii Wastewater System Revenue Bonds, Series 2018

 

4.000% due 07/01/2042

      1,485         1,479  
       

 

 

 
ILLINOIS 16.5%

 

Chicago Board of Education, Illinois General Obligation Bonds, Series 2012

 

5.000% due 12/01/2042

      3,000         3,000  

Chicago O’Hare International Airport, Illinois Revenue Bonds, Series 2018

 

5.000% due 01/01/2048

      3,000         3,133  

Chicago, Illinois General Obligation Bonds, Series 2003

 

5.500% due 01/01/2034

      1,750         1,807  

Chicago, Illinois General Obligation Bonds, Series 2007

 

5.500% due 01/01/2042

      2,400         2,470  

Chicago, Illinois General Obligation Bonds, Series 2015

 

5.375% due 01/01/2029

      6,700         6,942  

5.500% due 01/01/2034

      2,300         2,375  

Chicago, Illinois Revenue Bonds, Series 2002

 

5.000% due 01/01/2028

      2,000         2,136  

Illinois Finance Authority Revenue Bonds, Series 2017

 

5.000% due 02/15/2037 ^(b)

      945         638  

Illinois Finance Authority Revenue Bonds, Series 2019

 

5.000% due 11/01/2035

      1,000         953  

Illinois State General Obligation Bonds, Series 2018

 

4.625% due 05/01/2037

      2,000         2,018  

Illinois State General Obligation Notes, Series 2017

 

5.000% due 11/01/2027

      9,500         10,249  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM Insured), Series 2010

 

0.000% due 06/15/2045 (c)

      6,500         2,185  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM/CR Insured), Series 2017

 

0.000% due 12/15/2056 (c)

      2,445         454  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM/CR/NPFGC Insured), Series 2002

 

0.000% due 12/15/2040 (c)

      2,000         866  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series 2012

 

0.000% due 12/15/2051 (c)

      2,500         555  
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     33
    


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund   (Cont.)    

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series 2022

 

0.000% due 06/15/2036 (c)

  $     1,000     $     532  

Regional Transportation Authority, Illinois Revenue Bonds, Series 2018

 

5.000% due 06/01/2038 (e)

      3,500         3,894  
       

 

 

 
            44,207  
       

 

 

 
INDIANA 0.7%

 

Indiana Finance Authority Revenue Bonds, Series 2019

 

7.000% due 03/01/2039

      1,250         991  

Indiana Health & Educational Facilities Financing Authority Revenue Bonds, Series 2006

 

4.000% due 11/15/2046

      1,000         973  
       

 

 

 
          1,964  
       

 

 

 
IOWA 2.1%

 

Iowa Finance Authority Midwestern Disaster Area Revenue Refunding Bonds, Series 2022

 

5.000% due 12/01/2050

      2,530         2,569  

Iowa Finance Authority Revenue Bonds, Series 2014

 

5.400% due 11/15/2046 ^

      2,614         2,795  

Iowa Tobacco Settlement Authority Revenue Bonds, Series 2021

 

0.000% due 06/01/2065 (c)

      2,500         256  
       

 

 

 
            5,620  
       

 

 

 
KANSAS 1.2%

 

Lenexa, Kansas Tax Allocation Bonds, Series 2007

 

6.000% due 04/01/2027 ^(b)

      715         154  

University of Kansas Hospital Authority Revenue Bonds, Series 2015

 

4.000% due 09/01/2040 (e)

      3,085         3,030  
       

 

 

 
          3,184  
       

 

 

 
LOUISIANA 5.1%

 

East Baton Rouge Sewerage Commission, Louisiana Revenue Bonds, Series 2019

 

4.000% due 02/01/2045

      3,000         2,909  

Louisiana Gasoline & Fuels Tax State Revenue Bonds, Series 2017

 

4.000% due 05/01/2045 (e)

      4,000         4,017  

Louisiana Public Facilities Authority Revenue Bonds, Series 2017

 

5.000% due 05/15/2042

      3,750         3,882  

Louisiana Public Facilities Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2050

      750         691  

Parish of St James, Louisiana Revenue Bonds, Series 2010

 

6.350% due 07/01/2040

      1,250         1,387  

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      850         797  
       

 

 

 
            13,683  
       

 

 

 
MAINE 0.7%

 

Maine Health & Higher Educational Facilities Authority Revenue Bonds, Series 2013

 

5.000% due 07/01/2043

      1,000         1,031  

Maine Health & Higher Educational Facilities Authority Revenue Bonds, Series 2020

 

4.000% due 07/01/2050

      1,000         940  
       

 

 

 
          1,971  
       

 

 

 
MARYLAND 0.2%

 

Maryland Economic Development Corp. Revenue Bonds, Series 2020

 

5.000% due 07/01/2056

      500         501  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
MASSACHUSETTS 5.0%

 

Commonwealth of Massachusetts General Obligation Bonds, Series 2018

 

4.000% due 05/01/2040

  $     1,000     $     999  

Commonwealth of Massachusetts General Obligation Bonds, Series 2019

 

5.000% due 05/01/2045

      3,000         3,279  

Massachusetts Development Finance Agency Revenue Bonds, Series 2016

 

4.000% due 10/01/2046 (e)

      2,300           2,235  

5.000% due 01/01/2047

      1,000         1,017  

Massachusetts Development Finance Agency Revenue Bonds, Series 2019

 

5.000% due 09/01/2059

      3,000         3,123  

Massachusetts School Building Authority Revenue Bonds, Series 2012

 

5.250% due 02/15/2048 (e)

      2,500         2,713  
       

 

 

 
            13,366  
       

 

 

 
MICHIGAN 5.5%

 

Detroit City School District, Michigan General Obligation Bonds, (AGM/Q-SBLF Insured), Series 2001

 

6.000% due 05/01/2029

      1,405         1,596  

Michigan Finance Authority Hospital Revenue Refunding Bonds, Series 2022

 

4.000% due 04/15/2042

      1,000         989  

Michigan Finance Authority Revenue Bonds, Series 2017

 

4.000% due 12/01/2036 (e)

      3,000         2,975  

5.000% due 12/01/2031 (e)

      1,200         1,299  

Michigan Finance Authority Revenue Bonds, Series 2019

 

4.000% due 12/01/2048

      2,000         1,870  

4.000% due 02/15/2050

      1,750         1,640  

Michigan Finance Authority Revenue Bonds, Series 2020

 

0.000% due 06/01/2065 (c)

      13,400         1,227  

Michigan Finance Authority Revenue Bonds, Series 2021

 

5.000% due 12/01/2046 (e)

      2,328         2,427  

Michigan Finance Authority Revenue Notes, Series 2021

 

5.000% due 06/01/2027 (e)

      72         81  

Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2008

 

0.000% due 06/01/2058 (c)

      15,000         691  
       

 

 

 
            14,795  
       

 

 

 
MINNESOTA 0.7%

 

Duluth Economic Development Authority Health Care Facilities Revenue Bonds, Series 2022

 

5.250% due 06/15/2047

      500         516  

Rochester, Minnesota Revenue Bonds, Series 2018

 

4.000% due 11/15/2048

      1,500         1,461  
       

 

 

 
          1,977  
       

 

 

 
MISSOURI 1.6%

 

Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series 2018

 

4.000% due 11/15/2048

      3,000         2,813  

Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series 2019

 

4.000% due 02/15/2037

      510         510  

Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series 2021

 

4.000% due 07/01/2046

      1,000         969  
       

 

 

 
          4,292  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
NEBRASKA 1.0%

 

Central Plains Energy Project, Nebraska Revenue Bonds, Series 2017

 

5.000% due 09/01/2042

  $     2,400     $     2,555  
       

 

 

 
NEVADA 1.9%

 

Clark County, Nevada General Obligation Bonds,
Series 2018

 

4.000% due 07/01/2044 (e)

      4,200         4,146  

Reno, Nevada Revenue Bonds, Series 2018

 

0.000% due 07/01/2058 (c)

      10,500         1,012  
       

 

 

 
            5,158  
       

 

 

 
NEW JERSEY 15.9%

 

Federal Home Loan Mortgage Corp. Enhanced Receipt, New Jersey Revenue Bonds, Series 2019

 

3.870% due 11/15/2035 (f)

      2,983         2,922  

New Jersey Economic Development Authority Revenue Bonds, Series 2016

 

5.000% due 06/15/2041

      2,500         2,588  

New Jersey Economic Development Authority Special Assessment Bonds, Series 2002

 

5.750% due 04/01/2031

      16,550         15,314  

New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series 2013

 

5.500% due 07/01/2043

      2,000         2,051  

New Jersey Transportation Trust Fund Authority Revenue Bonds, (AGM Insured), Series 2006

 

0.000% due 12/15/2034 (c)

      1,500         918  

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series 2019

 

5.000% due 06/15/2044

      2,000         2,075  

5.250% due 06/15/2043

      1,000         1,052  

New Jersey Turnpike Authority Revenue Bonds,
Series 2017

 

5.000% due 01/01/2037

      3,000         3,255  

New Jersey Turnpike Authority Revenue Bonds,
Series 2019

 

5.000% due 01/01/2048

      1,500         1,620  

South Jersey Port Corp., New Jersey Revenue Bonds, Series 2017

 

5.000% due 01/01/2049

      250         257  

Tobacco Settlement Financing Corp., New Jersey Revenue Bonds, Series 2018

 

5.000% due 06/01/2029

      1,000         1,073  

5.000% due 06/01/2046

      6,000         6,003  

5.250% due 06/01/2046

      3,500         3,642  
       

 

 

 
            42,770  
       

 

 

 
NEW YORK 19.5%

 

Metropolitan Transportation Authority, New York Revenue Bonds, (AGM Insured), Series 2019

 

4.000% due 11/15/2049

      4,000         3,689  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2020

 

5.250% due 11/15/2055

      2,000         2,081  

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 2021

 

5.000% due 01/01/2058

      2,867         2,007  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2020

 

4.000% due 05/01/2045

      1,000         974  

New York City, General Obligation Bonds, Series 2018

 

5.000% due 12/01/2037

      750         812  

New York City, General Obligation Bonds, Series 2019

 

5.000% due 08/01/2039

      1,000         1,093  

New York City, New York General Obligation Bonds, Series 2018

 

5.000% due 04/01/2045 (e)

      4,800         5,095  
 

 

       
34   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022   (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

New York Liberty Development Corp. Revenue Bonds, Series 2005

 

5.250% due 10/01/2035

  $     10,000     $     11,236  

New York Liberty Development Corp. Revenue Bonds, Series 2007

 

5.500% due 10/01/2037

      3,000         3,470  

New York Liberty Development Corp. Revenue Bonds, Series 2014

 

5.000% due 11/15/2044

      1,000         976  

New York State Dormitory Authority Northwell Health Obligated Group Revenue Bonds, Series 2022

 

5.000% due 05/01/2052

      2,000         2,075  

New York State Dormitory Authority Revenue Bonds, Series 2017

 

4.000% due 02/15/2047 (e)

      3,000         2,872  

New York State Dormitory Authority Revenue Bonds, Series 2020

 

4.000% due 02/15/2040

      1,250         1,228  

New York State Dormitory Authority Revenue Bonds, Series 2021

 

4.000% due 03/15/2040

      3,000         2,948  

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

 

4.200% due 11/01/2054 (f)

      1,500         1,434  

New York State Thruway Authority Revenue Bonds, (AGM Insured), Series 2019

 

4.000% due 01/01/2053

      460         437  

New York State Thruway Authority Revenue Bonds, Series 2017

 

4.000% due 03/15/2047

      2,000         1,945  

New York State Thruway Authority Revenue Bonds, Series 2019

 

4.000% due 01/01/2050

      575         537  

New York State Thruway Authority Revenue Bonds, Series 2021

 

4.000% due 03/15/2043

      1,500         1,473  

New York State Urban Development Corp. Revenue Bonds, Series 2021

 

4.000% due 03/15/2047 (e)

      6,250         5,973  
       

 

 

 
            52,355  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      850         493  
       

 

 

 
OHIO 6.4%

 

American Municipal Power, Inc., Ohio Revenue Bonds, Series 2017

 

4.000% due 02/15/2042

      1,000         976  

Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series 2020

 

0.000% due 06/01/2057 (c)

      36,500         4,699  

Montgomery County, Ohio Dayton Children’s Hospital Revenue Bonds, Series 2021

 

4.000% due 08/01/2046

      2,250         2,068  

Ohio Air Quality Development Authority Dayton Power And Light Company Project Revenue Bonds , Series 2015

 

4.250% due 11/01/2040

      2,000         2,018  

Ohio State Turnpike Commission Revenue Bonds, Series 2013

 

5.000% due 02/15/2048

      5,000         5,104  

Ohio Water Development Authority Water Pollution Control Loan Fund Revenue Bonds, Series 2020

 

5.000% due 12/01/2050

      1,250         1,371  

Southern Ohio Port Authority Revenue Notes, Series 2020

 

6.500% due 12/01/2030

      1,000         913  
       

 

 

 
          17,149  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
OKLAHOMA 0.2%

 

Oklahoma Development Finance Authority Revenue Bonds, Series 2021

 

8.000% due 12/01/2041

  $     750     $     608  
       

 

 

 
OREGON 0.4%

 

Medford Hospital Facilities Authority, Oregon Revenue Bonds, Series 2020

 

4.000% due 08/15/2039

      500         484  

Washington & Multnomah Counties School District No 48J Beaverton, Oregon General Obligation Bonds, Series 2022

 

0.000% due 06/15/2048 (a)(c)

      2,310         673  
       

 

 

 
          1,157  
       

 

 

 
       
PENNSYLVANIA 7.4%

 

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2009

 

6.400% due 12/01/2038 ^(b)

      1,150         645  

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      1,500         1,720  

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2022

 

4.000% due 02/15/2041

      1,750         1,676  

Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series 2019

 

5.000% due 08/15/2049

      1,100         1,159  

Pennsylvania Turnpike Commission Revenue Bonds, Series 2018

 

5.000% due 12/01/2043

      4,250         4,537  

Pennsylvania Turnpike Commission Revenue Bonds, Series 2021

 

5.000% due 12/01/2046

      1,250         1,343  

5.000% due 12/01/2051

      1,750         1,874  

Philadelphia Authority for Industrial Development, Pennsylvania Revenue Bonds, Series 2017

 

5.500% due 12/01/2058

      1,000         936  

Philadelphia Hospitals & Higher Education Facilities Authority, Pennsylvania Revenue Bonds, Series 2012

 

5.625% due 07/01/2036

      5,000         5,000  

5.625% due 07/01/2042

      1,000         1,000  
       

 

 

 
            19,890  
       

 

 

 
PUERTO RICO 7.2%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (c)

      28,000         1,503  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043 (c)

      4,121         2,055  

1.000% due 11/01/2051

      2,129         918  

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (c)

      1,240         698  

4.000% due 07/01/2033

      417         383  

4.000% due 07/01/2035

      375         337  

4.000% due 07/01/2037

      322         286  

4.000% due 07/01/2041

      437         380  

5.750% due 07/01/2031

      440         481  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (c)

      214         197  

5.625% due 07/01/2027

      460         490  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2030 ^(b)

      1,295         716  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2046 (c)

      7,255         1,960  

0.000% due 07/01/2051 (c)

      13,350         2,671  

4.750% due 07/01/2053

      6,485         6,247  
       

 

 

 
          19,322  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
RHODE ISLAND 0.8%

 

Tobacco Settlement Financing Corp., Rhode Island Revenue Bonds, Series 2015

 

5.000% due 06/01/2040

  $     1,205     $     1,222  

5.000% due 06/01/2050

      1,000         1,011  
       

 

 

 
          2,233  
       

 

 

 
SOUTH CAROLINA 2.3%

 

South Carolina Public Service Authority Revenue Obligations Revenue Bonds, Series 2013

 

5.125% due 12/01/2043

      5,000         5,074  

5.500% due 12/01/2053

      1,100         1,119  
       

 

 

 
          6,193  
       

 

 

 
TENNESSEE 4.4%

 

Metropolitan Government of Nashville & Davidson County, Tennessee Health & Educational Facs Bd Revenue Bonds, Series 2020

 

4.000% due 11/01/2055

      1,000         788  

Shelby County, Tennessee Health Educational & Housing Facilities Board Revenue Bonds, Series 2019

 

5.750% due 10/01/2059

      700         642  

Tennessee Energy Acquisition Corp. Revenue Bonds, Series 2006

 

5.000% due 02/01/2027

      5,000         5,294  

5.250% due 09/01/2024

      5,000         5,206  
       

 

 

 
            11,930  
       

 

 

 
TEXAS 16.1%

 

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

 

7.500% due 12/01/2045

      590         474  

12.000% due 12/01/2045

      1,000         903  

Austin, Texas Airport System Revenue Bonds, Series 2022

 

5.000% due 11/15/2042

      1,075         1,151  

Austin, Texas Electric Utility Revenue Bonds, Series 2019

 

5.000% due 11/15/2044

      1,500         1,627  

Board of Regents of the University of Texas System Revenue Bonds, Series 2022

 

4.000% due 08/15/2052

      2,500         2,496  

Central Texas Turnpike System Revenue Bonds, Series 2015

 

0.000% due 08/15/2036 (c)

      1,250         668  

0.000% due 08/15/2037 (c)

      3,500         1,772  

Clifton Higher Education Finance Corp., Texas Revenue Bonds, Series 2018

 

6.125% due 08/15/2048

      1,000         1,020  

Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2013

 

5.000% due 04/01/2053

      5,500         5,719  

New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2017

 

4.000% due 08/15/2034 (e)

      300         298  

4.000% due 08/15/2035 (e)

      800         793  

4.000% due 08/15/2036 (e)

      600         595  

4.000% due 08/15/2037 (e)

      900         892  

4.000% due 08/15/2040 (e)

      900         891  

New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2021

 

5.500% due 01/01/2057

      825         705  

North Texas Tollway Authority Revenue Bonds, Series 2017

 

4.000% due 01/01/2043

      1,500         1,477  

5.000% due 01/01/2048

      1,250         1,313  

Rockwall Independent School District, Texas General Obligation Bonds, (PSF Insured), Series 2022

 

5.000% due 02/15/2052 (a)

      4,000         4,407  
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     35
    


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund   (Cont.)    

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

San Jacinto College District, Texas General Obligation Bonds, Series 2019

 

5.000% due 02/15/2044

  $     1,000     $     1,101  

Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series 2016

 

4.000% due 02/15/2047 (e)

      6,400         6,177  

Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series 2017

 

6.750% due 11/15/2047

      500         520  

Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series 2006

 

5.250% due 12/15/2023

      3,500         3,621  

Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series 2008

 

6.250% due 12/15/2026

      4,290         4,590  
       

 

 

 
            43,210  
       

 

 

 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

      2,420         2,445  
       

 

 

 
UTAH 3.0%

 

Salt Lake County, Utah Revenue Bonds, (AMBAC Insured), Series 2001

 

5.125% due 02/15/2033

      7,000         7,458  

Utah County, Utah Revenue Bonds, Series 2020

 

4.000% due 05/15/2043

      550         544  
       

 

 

 
          8,002  
       

 

 

 
VIRGINIA 5.0%

 

Fairfax County, Virginia Economic Development Authority Revenue Bonds, Series 2003

 

0.820% due 12/01/2033

      2,600         2,600  

Fairfax County, Virginia Industrial Development Authority Revenue Bonds, Series 2018

 

4.000% due 05/15/2048

      1,000         964  

Virginia Commonwealth Transportation Board Revenue Bonds, Series 2018

 

4.000% due 05/15/2041 (e)

      3,850         3,881  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (c)

  $     23,000     $     1,213  

5.500% due 07/01/2044

      1,000         980  

5.500% due 07/01/2049

      500         486  

Virginia Small Business Financing Authority Revenue Bonds, Series 2020

 

4.000% due 12/01/2049

      3,400         3,199  
       

 

 

 
            13,323  
       

 

 

 
WASHINGTON 0.7%

 

Washington State Convention Center Public Facilities District Revenue Bonds, Series 2018

 

4.000% due 07/01/2058

      2,155         1,918  
       

 

 

 
WEST VIRGINIA 1.3%

 

Monongalia County, West Virginia Commission Special District Revenue Bonds, Series 2017

 

5.500% due 06/01/2037

      1,000         1,017  

West Virginia Economic Development Authority Revenue Bonds, Series 2017

 

4.000% due 06/15/2040

      2,500         2,519  
       

 

 

 
          3,536  
       

 

 

 
WISCONSIN 6.4%

 

Public Finance Authority, Wisconsin Revenue Bonds, Series 2017

 

7.000% due 01/01/2050

      2,500         2,706  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2018

 

6.375% due 01/01/2048

      3,000         1,845  

7.000% due 07/01/2048

      750         621  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2020

 

0.000% due 01/01/2060 (c)

      7,500         510  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2021

 

4.000% due 03/31/2056

      1,100         865  

4.000% due 07/01/2056

      500         423  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Wisconsin Center District Revenue Bonds, (AGM Insured), Series 2020

 

0.000% due 12/15/2050 (c)

  $     10,000     $     2,584  

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2016

 

4.000% due 11/15/2046

      2,500         2,445  

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2017

 

4.000% due 08/15/2042 (e)

      2,000         1,979  

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2018

 

5.000% due 04/01/2044

      3,000         3,181  
       

 

 

 
          17,159  
       

 

 

 

Total Municipal Bonds & Notes (Cost $509,909)

      498,243  
 

 

 

 
SHORT-TERM INSTRUMENTS 2.0%

 

REPURCHASE AGREEMENTS (g) 2.0%

 

          5,434  
       

 

 

 
Total Short-Term Instruments
(Cost $5,434)
    5,434  
 

 

 

 
       
Total Investments in Securities (Cost $515,343)     503,677  
       
Total Investments 187.5% (Cost $515,343)

 

  $     503,677  
Auction Rate Preferred Shares (62.1)%     (166,700
Remarketable Variable Rate MuniFund Term Preferred Shares, at liquidation value (8.6)%

 

      (23,258
Other Assets and Liabilities, net (16.8)%     (45,158
 

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $       268,561  
   

 

 

 
 

NOTES TO SCHEDULE OF INVESTMENTS:    

 

*

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

^

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)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction.

 

(f)   RESTRICTED SECURITIES:

 

Issuer Description    Coupon   Maturity
Date
    Acquisition
Date
    Cost     Market
Value
    Market Value
as Percentage
of Net Assets
Applicable to
Common
Shareholders
 

Federal Home Loan Mortgage Corp. Enhanced Receipt, New Jersey Revenue Bonds, Series 2019

   3.870%     11/15/2035       10/26/2020       $  3,428     $ 2,922       1.09%  

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

   4.200     11/01/2054       11/18/2021       1,703       1,434       0.53  
        

 

 

   

 

 

   

 

 

 
         $  5,131     $   4,356       1.62%  
        

 

 

   

 

 

   

 

 

 

 

       
36   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022   (Unaudited)

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS

 

(g)  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     0.400     06/30/2022       07/01/2022     $     5,434     U.S. Treasury Notes 3.000% due 06/30/2024   $ (5,543   $ 5,434     $ 5,434  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

 

    $     (5,543   $     5,434     $     5,434  
           

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 5,434     $ 0     $ 0      $     5,434     $     (5,543   $     (109
 

 

 

   

 

 

   

 

 

        

Total Borrowings and Other Financing Transactions

  $     5,434     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

(1)

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Alabama

  $     0     $     18,570     $     0     $     18,570  

Alaska

    0       18       0       18  

Arizona

    0       11,406       0       11,406  

Arkansas

    0       3,047       0       3,047  

California

    0       24,668       0       24,668  

Colorado

    0       16,824       0       16,824  

Connecticut

    0       4,726       0       4,726  

Delaware

    0       5,350       0       5,350  

District of Columbia

    0       2,877       0       2,877  

Florida

    0       18,443       0       18,443  

Georgia

    0       13,869       0       13,869  

Hawaii

    0       1,479       0       1,479  

Illinois

    0       44,207       0       44,207  

Indiana

    0       1,964       0       1,964  

Iowa

    0       5,620       0       5,620  

Kansas

    0       3,184       0       3,184  

Louisiana

    0       13,683       0       13,683  

Maine

    0       1,971       0       1,971  

Maryland

    0       501       0       501  

Massachusetts

    0       13,366       0       13,366  

Michigan

    0       14,795       0       14,795  

Minnesota

    0       1,977       0       1,977  

Missouri

    0       4,292       0       4,292  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Nebraska

  $     0     $     2,555     $     0     $     2,555  

Nevada

    0       5,158       0       5,158  

New Jersey

    0       42,770       0       42,770  

New York

    0       52,355       0       52,355  

North Dakota

    0       493       0       493  

Ohio

    0       17,149       0       17,149  

Oklahoma

    0       608       0       608  

Oregon

    0       1,157       0       1,157  

Pennsylvania

    0       19,890       0       19,890  

Puerto Rico

    0       19,322       0       19,322  

Rhode Island

    0       2,233       0       2,233  

South Carolina

    0       6,193       0       6,193  

Tennessee

    0       11,930       0       11,930  

Texas

    0       43,210       0       43,210  

U.S. Virgin Islands

    0       2,445       0       2,445  

Utah

    0       8,002       0       8,002  

Virginia

    0       13,323       0       13,323  

Washington

    0       1,918       0       1,918  

West Virginia

    0       3,536       0       3,536  

Wisconsin

    0       17,159       0       17,159  

Short-Term Instruments

 

Repurchase Agreements

    0       5,434       0       5,434  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     503,677     $     0     $     503,677  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     37
    


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund II           

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 187.0%

 

MUNICIPAL BONDS & NOTES 184.9%

 

ALABAMA 7.2%

 

Jefferson County, Alabama Sewer Revenue Bonds, Series 2013

 

0.000% due 10/01/2050 (d)

  $     18,500     $     18,727  

6.500% due 10/01/2053

      18,000         19,636  

Tuscaloosa County, Alabama Industrial Development Authority Revenue Bonds, Series 2019

 

4.500% due 05/01/2032

      2,564         2,313  

5.250% due 05/01/2044

      3,300         2,957  
       

 

 

 
            43,633  
       

 

 

 
ARIZONA 10.1%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2019

 

4.500% due 01/01/2033

      740         512  

4.750% due 01/01/2038

      950         609  

5.125% due 01/01/2054

      1,500         962  

5.500% due 01/01/2054

      1,500         941  

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

      2,500         2,725  

Industrial Development Authority of the County, Arizona of Pima Revenue Bonds, Series 2020

 

5.000% due 07/01/2055

      2,400         2,118  

Maricopa County, Arizona Industrial Development Authority Revenue Bonds, Series 2019

 

4.000% due 01/01/2044

      7,700         7,401  

Phoenix Civic Improvement Corp., Arizona Revenue Bonds, Series 2019

 

4.000% due 07/01/2049

      5,210         5,033  

5.000% due 07/01/2049

      3,000         3,164  

Salt Verde Financial Corp., Arizona Revenue Bonds, Series 2007

 

5.000% due 12/01/2032

      12,430         13,432  

5.000% due 12/01/2037

      22,400         24,083  
       

 

 

 
            60,980  
       

 

 

 
CALIFORNIA 6.7%

 

Bay Area Toll Authority, California Revenue Bonds, Series 2013

 

5.250% due 04/01/2048

      5,000         5,137  

Bay Area Toll Authority, California Revenue Bonds, Series 2014

 

5.000% due 10/01/2054

      2,000         2,131  

California Health Facilities Financing Authority Revenue Bonds, Series 2011

 

0.740% due 03/01/2047

      1,000         1,000  

California Health Facilities Financing Authority Revenue Bonds, Series 2016

 

5.000% due 11/15/2046 (e)

      12,500         13,349  

California Health Facilities Financing Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2049

      4,000         3,748  

California State General Obligation Bonds, Series 2019

 

5.000% due 04/01/2045

      4,000         4,348  

Los Angeles Department of Airports, California Revenue Bonds, Series 2020

 

4.000% due 05/15/2048

      4,500         4,435  

M-S-R Energy Authority, California Revenue Bonds, Series 2009

 

6.500% due 11/01/2039

      1,750         2,164  

Morongo Band of Mission Indians, California Revenue Bonds, Series 2018

 

5.000% due 10/01/2042

      1,250         1,323  

West Valley-Mission Community College District, California General Obligation Bonds, Series 2022

 

4.000% due 08/01/2047 (a)

      3,000         2,917  
       

 

 

 
          40,552  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
COLORADO 3.5%

 

Colorado Health Facilities Authority Revenue Bonds, Series 2018

 

4.000% due 11/15/2048

  $     2,555     $     2,446  

Colorado Health Facilities Authority Revenue Bonds, Series 2019

 

4.000% due 08/01/2044

      4,000         3,687  

Colorado State Building Excellent School Certificates of Participation Bonds, Series 2018

 

4.000% due 03/15/2043

      3,250         3,222  

Harvest Crossing Metropolitan District No 4, Colorado General Obligation Bonds, Series 2022

 

7.250% due 12/01/2052

      3,500         3,323  

Public Authority for Colorado Energy Revenue Bonds, Series 2008

 

6.500% due 11/15/2038

      1,430         1,758  

Senac South Metropolitan District No 1, Colorado General Obligation Bonds, Series 2021

 

5.250% due 12/01/2051

      1,000         842  

Sisters of Charity of Leavenworth Health System, Inc. Obligated Group, Colorado Revenue Bonds, Series 2019

 

4.000% due 01/01/2040

      5,300         5,248  

Third Creek Metropolitan District No 1, Colorado General Obligation Bonds, Series 2022

 

4.750% due 12/01/2051

      775         609  
       

 

 

 
            21,135  
       

 

 

 
CONNECTICUT 1.3%

 

Connecticut Special Tax Revenue State Special Tax Bonds, Series 2020

 

4.000% due 05/01/2036

      3,500         3,521  

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series 2020

 

4.000% due 07/01/2045

      4,450         4,195  
       

 

 

 
            7,716  
       

 

 

 
DELAWARE 1.0%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.461% due 07/01/2037

      5,360         4,882  

7.120% due 07/01/2037

      945         924  
       

 

 

 
            5,806  
       

 

 

 
DISTRICT OF COLUMBIA 0.8%

 

District of Columbia Revenue Bonds, Series 2022

 

5.500% due 02/28/2037

      1,850         1,990  

Metropolitan Washington Airports Authority Dulles Toll Road, District of Columbia Revenue Bonds, Series 2019

 

4.000% due 10/01/2049

      3,500         3,134  
       

 

 

 
            5,124  
       

 

 

 
FLORIDA 6.2%

 

Central Florida Expressway Authority Revenue Bonds, Series 2018

 

5.000% due 07/01/2043

      2,865         3,053  

Florida’s Turnpike Enterprise Revenue Bonds, Series 2018

 

4.000% due 07/01/2048

      7,000         6,726  

Hillsborough County, Florida Industrial Development Authority Revenue Bonds, Series 2020

 

4.000% due 08/01/2055

      3,700         3,287  

Miami-Dade County, Florida Water & Sewer System Revenue Bonds, Series 2019

 

4.000% due 10/01/2048

      5,000         4,839  

4.000% due 10/01/2049 (e)

      5,000         4,767  

Palm Beach County, Florida Health Facilities Authority Revenue Bonds, Series 2022

 

5.000% due 11/01/2052 (a)

      2,850         2,882  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Pasco County, Florida Water & Sewer Revenue Bonds, Series 2014

 

4.000% due 10/01/2044

  $     2,500     $     2,447  

Pompano Beach, Florida Revenue Bonds, Series 2020

 

4.000% due 09/01/2050

      3,500         2,887  

Putnam County Development Authority, Florida Revenue Bonds, Series 2018

 

5.000% due 03/15/2042

      1,590         1,722  

South Miami Health Facilities Authority, Florida Revenue Bonds, Series 2017

 

5.000% due 08/15/2042 (e)

      3,000         3,143  

St Johns County, Florida Industrial Development Authority Revenue Bonds, Series 2020

 

4.000% due 08/01/2055

      1,600         1,604  
       

 

 

 
            37,357  
       

 

 

 
GEORGIA 6.1%

 

Atlanta Development Authority, Georgia Revenue Bonds, Series 2015

 

5.000% due 07/01/2044

      3,895         4,022  

Atlanta Development Authority, Georgia Revenue Bonds, Series 2017

 

6.750% due 01/01/2035 ^(b)

      3,750         1,987  

Fayette County, Georgia Hospital Authority Revenue Bonds, Series 2016

 

5.000% due 07/01/2046 (e)

      7,000         7,312  

Main Street Natural Gas, Inc., Georgia Revenue Bonds, Series 2019

 

5.000% due 05/15/2043

      3,500         3,623  

Municipal Electric Authority of Georgia Revenue Bonds, Series 2015

 

5.000% due 07/01/2060

      19,680         19,920  
       

 

 

 
            36,864  
       

 

 

 
ILLINOIS 19.1%

 

Chicago Board of Education, Illinois General Obligation Bonds, Series 2012

 

5.000% due 12/01/2042

      8,000         8,001  

Chicago O’Hare International Airport, Illinois Revenue Bonds, (AGM Insured), Series 2020

 

4.000% due 01/01/2040

      6,765         6,707  

Chicago O’Hare International Airport, Illinois Revenue Bonds, Series 2018

 

4.000% due 01/01/2044

      4,500         4,319  

Chicago Park District, Illinois General Obligation Bonds, Series 2020

 

4.000% due 01/01/2038

      1,435         1,359  

Chicago, Illinois General Obligation Bonds, Series 2007

 

5.500% due 01/01/2035

      10,000         10,320  

5.500% due 01/01/2042

      1,250         1,286  

Chicago, Illinois General Obligation Bonds, Series 2015

 

5.375% due 01/01/2029

      14,100         14,608  

5.500% due 01/01/2034

      5,200         5,370  

Chicago, Illinois Revenue Bonds, Series 2002

 

5.000% due 01/01/2029

      2,000         2,136  

Illinois Finance Authority Revenue Bonds, Series 2017

 

5.000% due 02/15/2037 ^(b)

      2,155         1,454  

Illinois Finance Authority Revenue Bonds, Series 2019

 

5.000% due 11/01/2035

      2,000         1,906  

Illinois State General Obligation Bonds, Series 2017

 

5.000% due 11/01/2029

      1,000         1,065  

Illinois State General Obligation Bonds, Series 2018

 

4.625% due 05/01/2037

      2,175         2,195  

5.000% due 05/01/2041

      1,500         1,543  

Illinois State General Obligation Notes, Series 2017

 

5.000% due 11/01/2025

      12,590         13,335  

5.000% due 11/01/2027

      6,140         6,624  

Illinois State Toll Highway Authority Revenue Bonds, Series 2016

 

5.000% due 01/01/2041 (e)

      12,500         13,133  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM Insured), Series 2010

 

0.000% due 06/15/2045 (c)

      10,000         3,361  
 

 

       
38   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022   (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM/CR Insured), Series 2017

 

0.000% due 12/15/2056 (c)

  $     5,540     $     1,028  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM/CR/NPFGC Insured), Series 2002

 

0.000% due 12/15/2040 (c)

      6,000         2,598  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series 2012

 

0.000% due 12/15/2051 (c)

      5,000         1,110  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series 2022

 

0.000% due 12/15/2036 (c)

      1,750         906  

0.000% due 06/15/2037 (c)

      1,000         503  

Regional Transportation Authority, Illinois Revenue Bonds, Series 2018

 

5.000% due 06/01/2038 (e)

      8,000         8,901  

Village of Channahon, Illinois Revenue Bonds, Series 2009

 

0.900% due 12/01/2034

      2,000         2,000  
       

 

 

 
            115,768  
       

 

 

 
INDIANA 0.5%

 

Indiana Finance Authority Revenue Bonds, Series 2019

 

7.000% due 03/01/2039

      2,500         1,982  

Indiana Health & Educational Facilities Financing Authority Revenue Bonds, Series 2006

 

4.000% due 11/15/2046

      1,000         973  
       

 

 

 
            2,955  
       

 

 

 
IOWA 1.2%

 

Iowa Finance Authority Midwestern Disaster Area Revenue Refunding Bonds, Series 2022

 

5.000% due 12/01/2050

      5,715         5,803  

Iowa Finance Authority Revenue Bonds, Series 2014

 

5.400% due 11/15/2046 ^

      708         757  

Iowa Tobacco Settlement Authority Revenue Bonds, Series 2021

 

0.000% due 06/01/2065 (c)

      7,500         769  
       

 

 

 
          7,329  
       

 

 

 
KANSAS 0.9%

 

University of Kansas Hospital Authority Revenue Bonds, Series 2015

 

4.000% due 09/01/2040 (e)

      5,500         5,403  
       

 

 

 
          5,403  
       

 

 

 
LOUISIANA 4.2%

 

East Baton Rouge Sewerage Commission, Louisiana Revenue Bonds, Series 2019

 

4.000% due 02/01/2045

      7,000         6,788  

Louisiana Gasoline & Fuels Tax State Revenue Bonds, Series 2017

 

4.000% due 05/01/2045 (e)

      7,000         7,030  

Louisiana Public Facilities Authority Revenue Bonds, Series 2017

 

5.000% due 05/15/2046

      5,000         5,159  

Louisiana Public Facilities Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2050

      1,500         1,382  

Parish of St James, Louisiana Revenue Bonds, Series 2010

 

6.350% due 10/01/2040

      2,800         3,106  

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      1,900         1,781  
       

 

 

 
            25,246  
       

 

 

 
MAINE 0.8%

 

Maine Health & Higher Educational Facilities Authority Revenue Bonds, Series 2013

 

5.000% due 07/01/2043

      2,715         2,799  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Maine Health & Higher Educational Facilities Authority Revenue Bonds, Series 2020

 

4.000% due 07/01/2045

  $     2,000     $     1,922  
       

 

 

 
            4,721  
       

 

 

 
MARYLAND 2.5%

 

Baltimore County, Maryland General Obligation Bonds, Series 2018

 

4.000% due 03/01/2045 (e)

      8,000         8,020  

Maryland Economic Development Corp. Revenue Bonds, Series 2020

 

5.000% due 07/01/2056

      1,405         1,408  

Maryland Stadium Authority Revenue Bonds, Series 2016

 

5.000% due 05/01/2041

      5,000         5,512  
       

 

 

 
            14,940  
       

 

 

 
MASSACHUSETTS 4.6%

 

Massachusetts Bay Transportation Authority Revenue Bonds, Series 2020

 

5.000% due 07/01/2050

      5,500         5,910  

Massachusetts Development Finance Agency Revenue Bonds, Series 2010

 

7.625% due 10/15/2037 ^(b)

      535         214  

Massachusetts Development Finance Agency Revenue Bonds, Series 2016

 

4.000% due 10/01/2046 (e)

      5,200         5,054  

5.000% due 01/01/2047

      2,500         2,543  

Massachusetts Development Finance Agency Revenue Bonds, Series 2019

 

5.000% due 09/01/2059

      6,000         6,245  

Massachusetts School Building Authority Revenue Bonds, Series 2012

 

5.250% due 02/15/2048 (e)

      7,500         8,139  
       

 

 

 
            28,105  
       

 

 

 
MICHIGAN 5.5%

 

Michigan Finance Authority Hospital Revenue Refunding Bonds, Series 2022

 

4.000% due 04/15/2042

      2,000         1,979  

Michigan Finance Authority Revenue Bonds, Series 2017

 

4.000% due 12/01/2040 (e)

      7,000         6,701  

5.000% due 12/01/2031 (e)

      2,600         2,815  

Michigan Finance Authority Revenue Bonds, Series 2019

 

4.000% due 12/01/2048

      4,000         3,739  

4.000% due 02/15/2050

      3,500         3,280  

Michigan Finance Authority Revenue Bonds, Series 2020

 

0.000% due 06/01/2065 (c)

      30,430         2,787  

4.800% due 09/01/2040

      185         160  

5.000% due 09/01/2050

      300         250  

Michigan Finance Authority Revenue Bonds, Series 2021

 

5.000% due 12/01/2046 (e)

      4,947         5,157  

Michigan Finance Authority Revenue Notes, Series 2020

 

4.300% due 09/01/2030

      115         106  

Michigan Finance Authority Revenue Notes, Series 2021

 

5.000% due 06/01/2027 (e)

      153         171  

Michigan State University Revenue Bonds, Series 2019

 

4.000% due 02/15/2044

      5,000         4,894  

Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2008

 

0.000% due 06/01/2058 (c)

      25,000         1,152  
       

 

 

 
            33,191  
       

 

 

 
MINNESOTA 0.9%

 

Duluth Economic Development Authority Health Care Facilities Revenue Bonds, Series 2022

 

5.250% due 06/15/2047

      2,000         2,063  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Rochester, Minnesota Revenue Bonds, Series 2018

 

4.000% due 11/15/2048

  $     3,500     $     3,410  
       

 

 

 
            5,473  
       

 

 

 
MISSISSIPPI 0.0%

 

Mississippi Development Bank Revenue Bonds, (AMBAC Insured), Series 1999

 

5.000% due 07/01/2024

      40         40  
       

 

 

 
MISSOURI 1.9%

 

Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series 2013

 

5.000% due 11/15/2044

      10,000         10,207  

Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series 2019

 

4.000% due 02/15/2039

      600         598  

5.000% due 02/15/2035

      500         532  
       

 

 

 
            11,337  
       

 

 

 
NEVADA 1.9%

 

Clark County, Nevada General Obligation Bonds, Series 2018

 

4.000% due 07/01/2044 (e)

      9,500         9,379  

Reno, Nevada Revenue Bonds, Series 2018

 

0.000% due 07/01/2058 (c)

      24,000         2,312  
       

 

 

 
            11,691  
       

 

 

 
NEW JERSEY 12.5%

 

Federal Home Loan Mortgage Corp. Enhanced Receipt, New Jersey Revenue Bonds, Series 2019

 

3.870% due 11/15/2035 (f)

      6,749         6,610  

New Jersey Economic Development Authority Revenue Bonds, Series 2016

 

5.000% due 06/15/2041

      5,000         5,176  

New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series 2009

 

0.680% due 07/01/2043

      19,070         19,070  

New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series 2013

 

5.500% due 07/01/2043

      4,000         4,102  

New Jersey Transportation Trust Fund Authority Revenue Bonds, (AGM Insured), Series 2006

 

0.000% due 12/15/2034 (c)

      2,500         1,530  

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series 2018

 

5.000% due 12/15/2036

      1,500         1,576  

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series 2019

 

5.000% due 06/15/2044

      3,500         3,631  

5.250% due 06/15/2043

      4,000         4,209  

New Jersey Turnpike Authority Revenue Bonds, Series 2017

 

5.000% due 01/01/2037

      6,000         6,509  

New Jersey Turnpike Authority Revenue Bonds, Series 2019

 

5.000% due 01/01/2048

      1,500         1,620  

South Jersey Port Corp., New Jersey Revenue Bonds, Series 2017

 

5.000% due 01/01/2049

      1,010         1,041  

Tobacco Settlement Financing Corp., New Jersey Revenue Bonds, Series 2018

 

5.000% due 06/01/2046

      12,300         12,306  

5.250% due 06/01/2046

      8,200         8,533  
       

 

 

 
            75,913  
       

 

 

 
NEW YORK 15.8%

 

Metropolitan Transportation Authority, New York Revenue Bonds, (AGM Insured), Series 2019

 

4.000% due 11/15/2049

      7,000         6,456  
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     39
    


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund II   (Cont.)    

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2017

 

4.000% due 11/15/2042

  $     10,000     $     9,146  

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 2021

 

5.000% due 01/01/2058

      751         526  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2020

 

4.000% due 05/01/2045

      2,000         1,948  

New York City Water & Sewer System, New York Revenue Bonds, Series 2012

 

0.900% due 06/15/2046

      10,000         10,000  

New York City Water & Sewer System, New York Revenue Bonds, Series 2020

 

4.000% due 06/15/2050

      3,000         2,923  

New York City, General Obligation Bonds, Series 2018

 

5.000% due 12/01/2037

      2,250         2,436  

New York Liberty Development Corp. Revenue Bonds, Series 2005

 

5.250% due 10/01/2035 (e)

      6,505         7,309  

New York Liberty Development Corp. Revenue Bonds, Series 2014

 

5.000% due 11/15/2044

      4,250         4,149  

New York State Dormitory Authority Northwell Health Obligated Group Revenue Bonds, Series 2022

 

5.000% due 05/01/2052

      5,000         5,189  

New York State Dormitory Authority Revenue Bonds, Series 2017

 

4.000% due 02/15/2047 (e)

      8,000         7,658  

New York State Dormitory Authority Revenue Bonds, Series 2020

 

4.000% due 02/15/2040

      2,500         2,457  

New York State Dormitory Authority Revenue Bonds, Series 2021

 

4.000% due 03/15/2040

      7,730         7,596  

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

 

4.200% due 11/01/2054 (f)

      3,500         3,345  

New York State Thruway Authority Revenue Bonds, (AGM Insured), Series 2019

 

4.000% due 01/01/2053

      1,040         987  

New York State Thruway Authority Revenue Bonds, Series 2017

 

4.000% due 03/15/2047

      5,375         5,228  

New York State Thruway Authority Revenue Bonds, Series 2019

 

4.000% due 01/01/2050

      1,305         1,219  

New York State Urban Development Corp. Revenue Bonds, Series 2021

 

4.000% due 03/15/2047 (e)

      14,250         13,618  

Port Authority of New York & New Jersey Revenue Bonds, Series 2016

 

5.250% due 11/15/2056

      3,300         3,517  
       

 

 

 
            95,707  
       

 

 

 
NORTH CAROLINA 0.5%

 

North Carolina Turnpike Authority Revenue Bonds, Series 2018

 

4.000% due 01/01/2039

      3,000           3,016  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      1,950           1,131  
       

 

 

 
OHIO 8.9%

 

Akron Bath Copley Joint Township Hospital District, Ohio Revenue Bonds, Series 2020

 

4.000% due 11/15/2038

      1,500         1,449  

Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series 2020

 

0.000% due 06/01/2057 (c)

      79,500         10,235  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Geisinger Authority, Ohio Revenue Bonds, Series 2017

 

4.000% due 02/15/2047 (e)

  $     22,580     $     21,299  

Montgomery County, Ohio Dayton Children’s Hospital Revenue Bonds, Series 2021

 

4.000% due 08/01/2046

      5,500         5,056  

Ohio Air Quality Development Authority Dayton Power And Light Company Project Revenue Bonds, Series 2015

 

4.250% due 11/01/2040

      3,000         3,028  

Ohio State Revenue Bonds, Series 2019

 

4.000% due 01/01/2040

      1,500         1,493  

Ohio State Turnpike Commission Revenue Bonds, Series 2013

 

5.000% due 02/15/2048

      6,000         6,125  

Ohio Water Development Authority Water Pollution Control Loan Fund Revenue Bonds, Series 2020

 

5.000% due 12/01/2050

      2,500         2,741  

Southern Ohio Port Authority Revenue Notes, Series 2020

 

6.500% due 12/01/2030

      2,600         2,373  
       

 

 

 
            53,799  
       

 

 

 
OKLAHOMA 1.1%

 

Oklahoma Development Finance Authority Revenue Bonds, Series 2018

 

5.500% due 08/15/2052

      2,000         1,869  

Oklahoma Development Finance Authority Revenue Bonds, Series 2021

 

8.000% due 12/01/2041

      1,750         1,418  

Oklahoma Water Resources Board Revenue Bonds, Series 2020

 

4.000% due 10/01/2049

      3,250         3,233  
       

 

 

 
            6,520  
       

 

 

 
OREGON 0.5%

 

Medford Hospital Facilities Authority, Oregon Revenue Bonds, Series 2020

 

4.000% due 08/15/2050

      1,500         1,405  

Washington & Multnomah Counties School District No 48J Beaverton, Oregon General Obligation Bonds, Series 2022

 

0.000% due 06/15/2048 (a)(c)

      5,195         1,513  
       

 

 

 
            2,918  
       

 

 

 
PENNSYLVANIA 7.2%

 

Monroeville Finance Authority, Pennsylvania Revenue Bonds, Series 2022

 

4.000% due 02/15/2042

      4,060         3,869  

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2009

 

6.400% due 12/01/2038 ^(b)

      2,500         1,403  

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      3,400         3,900  

Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series 2018

 

4.000% due 02/15/2043

      4,800         4,693  

Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series 2019

 

5.000% due 08/15/2049

      2,500         2,634  

Pennsylvania Turnpike Commission Revenue Bonds, Series 2013

 

5.000% due 12/01/2043

      10,000         10,385  

Pennsylvania Turnpike Commission Revenue Bonds, Series 2021

 

5.000% due 12/01/2046

      1,000         1,075  

5.000% due 12/01/2051

      6,000         6,424  

Philadelphia Authority for Industrial Development, Pennsylvania Revenue Bonds, Series 2017

 

5.500% due 12/01/2058

      1,000         936  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Philadelphia Hospitals & Higher Education Facilities Authority, Pennsylvania Revenue Bonds, Series 2012

 

5.625% due 07/01/2036

  $     1,000     $     1,000  

5.625% due 07/01/2042

      7,000         7,000  
       

 

 

 
            43,319  
       

 

 

 
PUERTO RICO 7.3%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (c)

      63,000         3,383  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043

      9,222         4,599  

0.000% due 11/01/2051

      4,763         2,054  

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (c)

      2,770         1,560  

4.000% due 07/01/2033

      931         856  

4.000% due 07/01/2035

      837         752  

4.000% due 07/01/2037

      719         638  

4.000% due 07/01/2041

      977         848  

5.750% due 07/01/2031

      982         1,075  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (c)

      479         439  

5.625% due 07/01/2027

      1,028         1,095  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2030 ^(b)

      2,950         1,630  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2007

 

5.000% due 07/01/2046 ^(b)

      3,000         1,657  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2046 (c)

      37,560         10,148  

4.750% due 07/01/2053

      9,735         9,378  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2019

 

4.784% due 07/01/2058

      4,470         4,281  
       

 

 

 
            44,393  
       

 

 

 
RHODE ISLAND 3.1%

 

Tobacco Settlement Financing Corp., Rhode Island Revenue Bonds, Series 2015

 

5.000% due 06/01/2050

      18,450           18,658  
       

 

 

 
SOUTH CAROLINA 1.7%

 

South Carolina Public Service Authority Revenue Obligations Revenue Bonds, Series 2013

 

5.500% due 12/01/2053

      10,000           10,171  
       

 

 

 
TENNESSEE 2.3%

 

Metropolitan Government of Nashville & Davidson County, Tennessee Health & Educational Facs Bd Revenue Bonds, Series 2020

 

4.000% due 11/01/2055

      2,000         1,577  

Metropolitan Nashville Airport Authority, Tennessee Revenue Bonds, Series 2019

 

4.000% due 07/01/2049

      2,000         1,883  

Shelby County, Tennessee Health Educational & Housing Facilities Board Revenue Bonds, Series 2019

 

5.750% due 10/01/2059

      1,550         1,422  

Tennessee Energy Acquisition Corp. Revenue Bonds, Series 2006

 

5.000% due 02/01/2023

      3,000         3,040  

5.000% due 02/01/2027

      6,000         6,352  
       

 

 

 
            14,274  
       

 

 

 
TEXAS 19.6%

 

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

 

7.500% due 12/01/2045

      1,345         1,080  

12.000% due 12/01/2045

      2,250         2,033  
 

 

       
40   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      JUNE 30, 2022   (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Austin, Texas Airport System Revenue Bonds, Series 2022

 

5.000% due 11/15/2042

  $     2,425     $     2,595  

Board of Regents of the University of Texas System Revenue Bonds, Series 2022

 

4.000% due 08/15/2052

      6,500         6,489  

Calhoun County, Texas Navigation Industrial Development Authority Revenue Notes, Series 2021

 

3.625% due 07/01/2026

      2,600         2,498  

Central Texas Turnpike System Revenue Bonds, Series 2015

 

0.000% due 08/15/2036 (c)

      2,500         1,337  

0.000% due 08/15/2037 (c)

      8,000         4,050  

Clifton Higher Education Finance Corp., Texas Revenue Bonds, Series 2018

 

6.125% due 08/15/2048

      1,750         1,785  

Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2013

 

5.000% due 04/01/2053

      21,000         21,838  

Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2018

 

5.000% due 10/01/2048 (e)

      7,500         8,003  

Lower Colorado River Authority, Texas Revenue Bonds, Series 2019

 

4.000% due 05/15/2049

      2,500         2,294  

New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2016

 

5.000% due 07/01/2046

      1,030         773  

New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2017

 

4.000% due 08/15/2034 (e)

      700         695  

4.000% due 08/15/2035 (e)

      1,400         1,388  

4.000% due 08/15/2036 (e)

      1,330         1,319  

4.000% due 08/15/2037 (e)

      1,620         1,606  

4.000% due 08/15/2040 (e)

      1,800         1,782  

New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2021

 

5.500% due 01/01/2057

      4,300         3,675  

North Texas Tollway Authority Revenue Bonds, Series 2017

 

4.000% due 01/01/2043

      3,590         3,535  

5.000% due 01/01/2048

      3,500         3,676  

North Texas Tollway Authority Revenue Bonds, Series 2018

 

5.000% due 01/01/2048

      1,000         1,049  

Rockwall Independent School District, Texas General Obligation Bonds, (PSF Insured), Series 2022

 

5.000% due 02/15/2052 (a)

      6,000         6,610  

San Antonio Public Facilities Corp., Texas Revenue Bonds, Series 2012

 

4.000% due 09/15/2042 (e)

      10,000         9,718  

San Jacinto College District, Texas General Obligation Bonds, Series 2019

 

5.000% due 02/15/2044

      1,010         1,112  

Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series 2016

 

4.000% due 02/15/2047 (e)

      13,600         13,127  

Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series 2017

 

6.750% due 11/15/2047

      1,000         1,041  

Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series 2008

 

6.250% due 12/15/2026

      12,800         13,694  
       

 

 

 
            118,802  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

  $     5,460     $     5,517  
       

 

 

 
UTAH 0.5%

 

Military Installation Development Authority, Utah Revenue Bonds, Series 2021

 

4.000% due 06/01/2052

      2,000         1,517  

Utah County, Utah Revenue Bonds, Series 2020

 

4.000% due 05/15/2043

      1,650         1,631  
       

 

 

 
          3,148  
       

 

 

 
VIRGINIA 5.7%

 

Fairfax County, Virginia Economic Development Authority Revenue Bonds, Series 2003

 

0.820% due 12/01/2033

      1,875         1,875  

Fairfax County, Virginia Industrial Development Authority Revenue Bonds, Series 2018

 

4.000% due 05/15/2048

      1,000         964  

James City County, Virginia Economic Development Authority Revenue Bonds, Series 2013

 

6.000% due 06/01/2043

      1,182         1,225  

University of Virginia Revenue Bonds, Series 2018

 

4.000% due 08/01/2048 (e)

      10,000         10,031  

Virginia Commonwealth Transportation Board Revenue Bonds, Series 2018

 

4.000% due 05/15/2041 (e)

      8,200         8,266  

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (c)

      51,000         2,691  

5.500% due 07/01/2044

      2,000         1,960  

5.500% due 07/01/2049

      500         486  

Virginia Small Business Financing Authority Revenue Bonds, Series 2020

 

4.000% due 12/01/2049

      7,800         7,338  
       

 

 

 
            34,836  
       

 

 

 
WASHINGTON 0.8%

 

Snohomish County, Washington Housing Authority Revenue Bonds, Series 2019

 

4.000% due 04/01/2044

      2,000         1,989  

Washington State Convention Center Public Facilities District Revenue Bonds, Series 2018

 

4.000% due 07/01/2058

      2,960         2,635  
       

 

 

 
          4,624  
       

 

 

 
WEST VIRGINIA 2.0%

 

Monongalia County, West Virginia Commission Special District Revenue Bonds, Series 2017

 

5.500% due 06/01/2037

      2,000         2,034  

West Virginia Economic Development Authority Revenue Bonds, Series 2017

 

4.000% due 06/15/2040

      7,110         7,164  

West Virginia State General Obligation Bonds, Series 2019

 

5.000% due 12/01/2041

      2,500         2,734  
       

 

 

 
            11,932  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
WISCONSIN 7.4%

 

Public Finance Authority, Wisconsin Revenue Bonds, Series 2017

 

7.000% due 01/01/2050

  $     4,500     $     4,871  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2018

 

6.375% due 01/01/2048

      4,000         2,460  

7.000% due 07/01/2048

      1,000         828  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2020

 

0.000% due 01/01/2060 (c)

      15,000         1,020  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2021

 

4.000% due 09/30/2051

      1,700         1,372  

4.000% due 03/31/2056

      900         708  

4.000% due 07/01/2056

      1,100         931  

4.500% due 06/01/2056

      1,000         749  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2022

 

5.000% due 10/01/2052

      7,500         7,969  

Wisconsin Center District Revenue Bonds, (AGM Insured), Series 2020

 

0.000% due 12/15/2050 (c)

      21,000         5,426  

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2016

 

4.000% due 11/15/2046

      15,585         15,249  

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2017

 

4.000% due 08/15/2042 (e)

      3,000         2,968  
       

 

 

 
          44,551  
       

 

 

 
Total Municipal Bonds & Notes     (Cost $1,146,250)       1,118,595  
 

 

 

 
SHORT-TERM INSTRUMENTS 2.1%

 

REPURCHASE AGREEMENTS (g) 2.1%

 

          12,515  
       

 

 

 
Total Short-Term Instruments
(Cost $12,515)
    12,515  
 

 

 

 
       
Total Investments in Securities (Cost $1,158,765)     1,131,110  
       
Total Investments 187.0% (Cost $1,158,765)

 

  $     1,131,110  
Auction Rate Preferred Shares (49.3)%

 

      (298,275
Remarketable Variable Rate MuniFund Term Preferred Shares, at liquidation value (11.4)%     (68,623
Other Assets and Liabilities, net (26.3)%       (159,301
 

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $     604,911  
   

 

 

 
 

NOTES TO SCHEDULE OF INVESTMENTS:    

 

*

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

^

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.

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     41
    


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund II   (Cont.)    

 

(e)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. See Note 5, Tender Option Bond Transactions, in the Notes to Financial Statements for more information.

 

(f)  RESTRICTED SECURITIES:

 

Issuer Description    Coupon     Maturity
Date
    Acquisition
Date
    Cost     Market
Value
    Market Value
as Percentage
of Net Assets
Applicable to
Common
Shareholders
 

Federal Home Loan Mortgage Corp. Enhanced Receipt, New Jersey Revenue Bonds, Series 2019

     3.870     11/15/2035       10/26/2020     $ 7,756     $ 6,610       1.09

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

     4.200       11/01/2054       11/18/2021       3,974       3,345       0.56  
        

 

 

   

 

 

   

 

 

 
         $     11,730     $     9,955       1.65
        

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS

 

(g)  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     0.400     06/30/2022       07/01/2022     $     12,515     U.S. Treasury Notes 3.000% due 06/30/2024   $ (12,765   $ 12,515     $ 12,515  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

 

    $     (12,765   $     12,515     $     12,515  
           

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 12,515     $ 0     $ 0      $     12,515     $     (12,765   $     (250
 

 

 

   

 

 

   

 

 

        

Total Borrowings and Other Financing Transactions

  $     12,515     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

(1)

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Alabama

  $ 0     $ 43,633     $ 0     $ 43,633  

Arizona

    0       60,980       0       60,980  

California

    0       40,552       0       40,552  

Colorado

    0       21,135       0       21,135  

Connecticut

    0       7,716       0       7,716  

Delaware

    0       5,806       0       5,806  

District of Columbia

    0       5,124       0       5,124  

Florida

    0       37,357       0       37,357  

Georgia

    0       36,864       0       36,864  

Illinois

    0       115,768       0       115,768  

Indiana

    0       2,955       0       2,955  

Iowa

    0       7,329       0       7,329  

Kansas

    0       5,403       0       5,403  

Louisiana

    0       25,246       0       25,246  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Maine

  $ 0     $ 4,721     $ 0     $ 4,721  

Maryland

    0       14,940       0       14,940  

Massachusetts

    0       28,105       0       28,105  

Michigan

    0       33,191       0       33,191  

Minnesota

    0       5,473       0       5,473  

Mississippi

    0       40       0       40  

Missouri

    0       11,337       0       11,337  

Nevada

    0       11,691       0       11,691  

New Jersey

    0       75,913       0       75,913  

New York

    0       95,707       0       95,707  

North Carolina

    0       3,016       0       3,016  

North Dakota

    0       1,131       0       1,131  

Ohio

    0       53,799       0       53,799  

Oklahoma

    0       6,520       0       6,520  

Oregon

    0       2,918       0       2,918  

Pennsylvania

    0       43,319       0       43,319  
 

 

       
42   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022   (Unaudited)

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Puerto Rico

  $ 0     $ 44,393     $ 0     $ 44,393  

Rhode Island

    0       18,658       0       18,658  

South Carolina

    0       10,171       0       10,171  

Tennessee

    0       14,274       0       14,274  

Texas

    0       118,802       0       118,802  

U.S. Virgin Islands

    0       5,517       0       5,517  

Utah

    0       3,148       0       3,148  

Virginia

    0       34,836       0       34,836  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Washington

  $ 0     $ 4,624     $ 0     $ 4,624  

West Virginia

    0       11,932       0       11,932  

Wisconsin

    0       44,551       0       44,551  

Short-Term Instruments

 

Repurchase Agreements

    0       12,515       0       12,515  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     1,131,110     $     0     $     1,131,110  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     43
    


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund III           

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 181.8%

 

MUNICIPAL BONDS & NOTES 180.5%

 

ALABAMA 10.3%

 

Jefferson County, Alabama Sewer Revenue Bonds, Series 2013

 

0.000% due 10/01/2050 (d)

  $     19,000     $     19,233  

6.500% due 10/01/2053

      7,500         8,182  

Tuscaloosa County, Alabama Industrial Development Authority Revenue Bonds, Series 2019

 

4.500% due 05/01/2032

      1,111         1,002  

5.250% due 05/01/2044

      1,625         1,456  
       

 

 

 
          29,873  
       

 

 

 
ARIZONA 8.4%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2019

 

4.500% due 01/01/2031

      675         493  

4.500% due 01/01/2032

      710         505  

4.500% due 01/01/2049

      750         473  

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

      1,200         1,308  

Industrial Development Authority of the County, Arizona of Pima Revenue Bonds, Series 2020

 

5.000% due 07/01/2055

      1,200         1,059  

Maricopa County, Arizona Industrial Development Authority Revenue Bonds, Series 2019

 

4.000% due 01/01/2044

      3,800         3,652  

Phoenix Civic Improvement Corp., Arizona Revenue Bonds, Series 2019

 

4.000% due 07/01/2049

      2,495         2,410  

5.000% due 07/01/2049

      1,770         1,867  

Salt Verde Financial Corp., Arizona Revenue Bonds, Series 2007

 

5.000% due 12/01/2037

        11,600         12,472  
       

 

 

 
            24,239  
       

 

 

 
CALIFORNIA 9.3%

 

Bay Area Toll Authority, California Revenue Bonds, Series 2013

 

5.250% due 04/01/2053

      12,000         12,325  

California Health Facilities Financing Authority Revenue Bonds, Series 2013

 

5.000% due 08/15/2052

      2,015         2,088  

California Health Facilities Financing Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2049

      2,000         1,874  

California State General Obligation Bonds, Series 2019

 

5.000% due 04/01/2045

      3,000         3,261  

Los Angeles Department of Airports, California Revenue Bonds, Series 2020

 

4.000% due 05/15/2048

      2,000         1,971  

M-S-R Energy Authority, California Revenue Bonds, Series 2009

 

6.500% due 11/01/2039

      2,000         2,473  

Morongo Band of Mission Indians, California Revenue Bonds, Series 2018

 

5.000% due 10/01/2042

      750         794  

Northern California Energy Authority Revenue Bonds, Series 2018

 

4.000% due 07/01/2049

      2,250         2,288  
       

 

 

 
          27,074  
       

 

 

 
COLORADO 3.7%

 

Colorado Health Facilities Authority Revenue Bonds, Series 2019

 

4.000% due 08/01/2044

      2,000         1,843  

Colorado Springs, Colorado Utilities System Revenue Bonds, Series 2020

 

4.000% due 11/15/2050

      2,500         2,464  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Colorado State Building Excellent School Certificates of Participation Bonds, Series 2018

 

4.000% due 03/15/2043

  $     1,250     $     1,239  

Harvest Crossing Metropolitan District No 4, Colorado General Obligation Bonds, Series 2022

 

7.250% due 12/01/2052

      1,250         1,187  

Public Authority for Colorado Energy Revenue Bonds, Series 2008

 

6.500% due 11/15/2038

      500         615  

Senac South Metropolitan District No 1, Colorado General Obligation Bonds, Series 2021

 

5.250% due 12/01/2051

      550         463  

Sisters of Charity of Leavenworth Health System, Inc. Obligated Group, Colorado Revenue Bonds, Series 2019

 

4.000% due 01/01/2040

        2,500         2,476  

Third Creek Metropolitan District No 1, Colorado General Obligation Bonds, Series 2022

 

4.750% due 12/01/2051

      500         393  
       

 

 

 
            10,680  
       

 

 

 
CONNECTICUT 1.8%

 

Connecticut Special Tax Revenue State Special Tax Bonds, Series 2020

 

5.000% due 05/01/2037

      2,000         2,217  

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series 2020

 

4.000% due 07/01/2045

      3,300         3,111  
       

 

 

 
          5,328  
       

 

 

 
DELAWARE 4.2%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.461% due 07/01/2037

      11,120         10,128  

7.120% due 07/01/2037

      1,965         1,921  
       

 

 

 
          12,049  
       

 

 

 
DISTRICT OF COLUMBIA 1.6%

 

District of Columbia General Obligation Bonds, Series 2019

 

5.000% due 10/15/2044

      650         709  

District of Columbia Revenue Bonds, Series 2022

 

5.500% due 08/31/2036

      1,800         1,946  

District of Columbia Water & Sewer Authority Revenue Bonds, Series 2019

 

5.000% due 10/01/2044

      500         549  

Metropolitan Washington Airports Authority Dulles Toll Road, District of Columbia Revenue Bonds, Series 2019

 

4.000% due 10/01/2049

      1,750         1,567  
       

 

 

 
          4,771  
       

 

 

 
FLORIDA 10.0%

 

Greater Orlando Aviation Authority, Florida Revenue Bonds, Series 2010

 

8.589% due 10/01/2039 (f)

      5,000         5,012  

Hillsborough County, Florida Industrial Development Authority Revenue Bonds, Series 2020

 

4.000% due 08/01/2055

      1,800         1,599  

Miami-Dade County, Florida Educational Facilities Authority Revenue Bonds, Series 2018

 

4.000% due 04/01/2053

      4,000         3,574  

Miami-Dade County, Florida Transit System Revenue Bonds, Series 2018

 

4.000% due 07/01/2044

      1,000         983  

Miami-Dade County, Florida Water & Sewer System Revenue Bonds, Series 2019

 

4.000% due 10/01/2049 (e)

      2,500         2,384  

North Miami Beach, Florida Water Revenue Bonds, Series 2020

 

5.000% due 08/01/2044

      3,000         3,321  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Pasco County, Florida Water & Sewer Revenue Bonds, Series 2014

 

4.000% due 10/01/2044

  $     1,500     $     1,468  

Pompano Beach, Florida Revenue Bonds, Series 2020

 

4.000% due 09/01/2050

      1,750         1,443  

Putnam County Development Authority, Florida Revenue Bonds, Series 2018

 

5.000% due 03/15/2042

      1,000         1,083  

South Miami Health Facilities Authority, Florida Revenue Bonds, Series 2017

 

4.000% due 08/15/2047 (e)

      3,750         3,524  

St Johns County, Florida Industrial Development Authority Revenue Bonds, Series 2020

 

4.000% due 08/01/2055

      3,500         3,509  

Tampa, Florida Revenue Bonds, Series 2020

 

0.000% due 09/01/2049 (c)

      2,600         685  

0.000% due 09/01/2053 (c)

      2,600         540  
       

 

 

 
            29,125  
       

 

 

 
GEORGIA 5.6%

 

Atlanta Development Authority, Georgia Revenue Bonds, Series 2017

 

6.750% due 01/01/2035 ^(b)

      1,750         927  

Fayette County, Georgia Hospital Authority Revenue Bonds, Series 2016

 

5.000% due 07/01/2046 (e)

      3,000         3,134  

Main Street Natural Gas, Inc., Georgia Revenue Bonds, Series 2019

 

5.000% due 05/15/2043

      2,000         2,070  

Municipal Electric Authority of Georgia Revenue Bonds, Series 2015

 

5.000% due 07/01/2060

        10,000         10,115  
       

 

 

 
          16,246  
       

 

 

 
ILLINOIS 18.0%

 

Chicago Board of Education, Illinois General Obligation Bonds, Series 2012

 

5.000% due 12/01/2042

      4,000         4,000  

Chicago O’Hare International Airport, Illinois Revenue Bonds, Series 2018

 

5.000% due 01/01/2048

      2,800         2,924  

5.000% due 01/01/2053

      1,000         1,036  

Chicago Park District, Illinois General Obligation Bonds, Series 2020

 

4.000% due 01/01/2036

      1,300         1,249  

Chicago, Illinois General Obligation Bonds, Series 2007

 

5.500% due 01/01/2035

      400         413  

5.500% due 01/01/2042

      1,000         1,029  

Chicago, Illinois General Obligation Bonds, Series 2015

 

5.375% due 01/01/2029

      7,200         7,459  

5.500% due 01/01/2034

      2,665         2,752  

Chicago, Illinois General Obligation Bonds, Series 2017

 

6.000% due 01/01/2038

      3,000         3,223  

Chicago, Illinois Revenue Bonds, Series 2002

 

5.000% due 01/01/2027

      1,750         1,869  

Illinois Finance Authority Revenue Bonds, Series 2017

 

5.000% due 02/15/2037 ^(b)

      1,030         695  

Illinois Finance Authority Revenue Bonds, Series 2019

 

5.000% due 11/01/2035

      1,010         963  

Illinois State General Obligation Bonds, Series 2018

 

4.625% due 05/01/2037

      2,000         2,018  

5.000% due 05/01/2041

      1,500         1,543  

Illinois State General Obligation Notes, Series 2017

 

5.000% due 11/01/2025

      1,150         1,218  

5.000% due 11/01/2027

      7,000         7,552  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM Insured), Series 2010

 

0.000% due 06/15/2045 (c)

      6,500         2,185  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM/CR Insured), Series 2017

 

0.000% due 12/15/2056 (c)

      2,685         498  
 

 

       
44   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022   (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM/CR/NPFGC Insured), Series 2002

 

0.000% due 12/15/2040 (c)

  $     2,000     $     866  

Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series 2012

 

0.000% due 12/15/2051 (c)

      2,500         555  

Regional Transportation Authority, Illinois Revenue Bonds, Series 2018

 

5.000% due 06/01/2038 (e)

      3,900         4,339  

Sales Tax Securitization Corp., Illinois Revenue Notes, Series 2020

 

5.000% due 01/01/2029

      3,500         3,879  
       

 

 

 
            52,265  
       

 

 

 
INDIANA 1.2%

 

Indiana Finance Authority Revenue Bonds, Series 2019

 

7.000% due 03/01/2039

      1,250         991  

Indiana Health & Educational Facilities Financing Authority Revenue Bonds, Series 2006

 

4.000% due 11/15/2046

      2,500         2,433  
       

 

 

 
          3,424  
       

 

 

 
IOWA 1.2%

 

Iowa Finance Authority Midwestern Disaster Area Revenue Refunding Bonds, Series 2022

 

5.000% due 12/01/2050

      2,755         2,798  

Iowa Finance Authority Revenue Bonds, Series 2014

 

5.400% due 11/15/2046 ^

      372         397  

Iowa Tobacco Settlement Authority Revenue Bonds, Series 2021

 

0.000% due 06/01/2065 (c)

        2,500         256  
       

 

 

 
          3,451  
       

 

 

 
KANSAS 0.7%

 

University of Kansas Hospital Authority Revenue Bonds, Series 2015

 

4.000% due 09/01/2040 (e)

      2,000         1,965  
       

 

 

 
          1,965  
       

 

 

 
LOUISIANA 4.9%

 

East Baton Rouge Sewerage Commission, Louisiana Revenue Bonds, Series 2019

 

4.000% due 02/01/2045

      3,100         3,006  

Louisiana Gasoline & Fuels Tax State Revenue Bonds, Series 2017

 

4.000% due 05/01/2045 (e)

      4,000         4,017  

Louisiana Public Facilities Authority Revenue Bonds, Series 2017

 

5.000% due 05/15/2042

      4,000         4,142  

Louisiana Public Facilities Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2050

      750         691  

Parish of St James, Louisiana Revenue Bonds, Series 2010

 

6.350% due 07/01/2040

      1,350         1,498  

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      950         890  
       

 

 

 
          14,244  
       

 

 

 
MAINE 0.9%

 

Maine Health & Higher Educational Facilities Authority Revenue Bonds, Series 2013

 

5.000% due 07/01/2043

      1,500         1,547  

Maine Health & Higher Educational Facilities Authority Revenue Bonds, Series 2020

 

4.000% due 07/01/2050

      1,000         940  
       

 

 

 
          2,487  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
MARYLAND 1.4%

 

Baltimore County, Maryland General Obligation Bonds, Series 2018

 

4.000% due 03/01/2045 (e)

  $     3,600     $     3,609  

Maryland Economic Development Corp. Revenue Bonds, Series 2020

 

5.000% due 07/01/2056

      500         501  
       

 

 

 
          4,110  
       

 

 

 
MASSACHUSETTS 4.6%

 

Commonwealth of Massachusetts General Obligation Bonds, Series 2018

 

4.000% due 05/01/2040

      1,000         999  

Commonwealth of Massachusetts General Obligation Bonds, Series 2019

 

5.000% due 05/01/2046

      3,000         3,274  

Massachusetts Bay Transportation Authority Revenue Bonds, Series 2020

 

5.000% due 07/01/2050

      1,500         1,612  

Massachusetts Development Finance Agency Revenue Bonds, Series 2010

 

7.625% due 10/15/2037 ^(b)

      275         110  

Massachusetts Development Finance Agency Revenue Bonds, Series 2016

 

4.000% due 10/01/2046 (e)

      2,500         2,430  

5.000% due 01/01/2047

      1,000         1,017  

Massachusetts Housing Finance Agency Revenue Bonds, Series 2003

 

5.125% due 06/01/2043

      525         525  

Massachusetts School Building Authority Revenue Bonds, Series 2012

 

5.250% due 02/15/2048 (e)

        3,000         3,255  
       

 

 

 
            13,222  
       

 

 

 
MICHIGAN 5.7%

 

Michigan Finance Authority Revenue Bonds, Series 2017

 

4.000% due 12/01/2036 (e)

      3,000         2,975  

4.000% due 12/01/2040 (e)

      500         479  

5.000% due 12/01/2031 (e)

      1,200         1,299  

Michigan Finance Authority Revenue Bonds, Series 2020

 

0.000% due 06/01/2065 (c)

      14,605         1,337  

Michigan Finance Authority Revenue Bonds, Series 2021

 

5.000% due 12/01/2046 (e)

      2,425         2,528  

Michigan Finance Authority Revenue Notes, Series 2021

 

5.000% due 06/01/2027 (e)

      75         84  

Michigan State University Revenue Bonds, Series 2019

 

4.000% due 02/15/2044

      2,500         2,447  

Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2008

 

0.000% due 06/01/2058 (c)

      12,500         576  

Michigan Trunk Line State Revenue Bonds, Series 2021

 

4.000% due 11/15/2044

      5,000         4,917  
       

 

 

 
          16,642  
       

 

 

 
MINNESOTA 0.6%

 

Rochester, Minnesota Revenue Bonds, Series 2018

 

4.000% due 11/15/2048

      1,750         1,705  
       

 

 

 
MISSOURI 0.2%

 

Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series 2019

 

5.000% due 02/15/2036

      425         454  

Jennings, Missouri Revenue Bonds, Series 2006

 

5.000% due 11/01/2023

      135         81  
       

 

 

 
          535  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
NEBRASKA 2.0%

 

Central Plains Energy Project, Nebraska Revenue Bonds, Series 2017

 

5.000% due 09/01/2042

  $     5,500     $     5,855  
       

 

 

 
NEVADA 1.9%

 

Clark County, Nevada General Obligation Bonds, Series 2018

 

4.000% due 07/01/2044 (e)

      4,545         4,487  

Reno, Nevada Revenue Bonds, Series 2018

 

0.000% due 07/01/2058 (c)

        11,000         1,060  
       

 

 

 
          5,547  
       

 

 

 
NEW JERSEY 10.7%

 

Federal Home Loan Mortgage Corp. Enhanced Receipt, New Jersey Revenue Bonds, Series 2019

 

3.870% due 11/15/2035 (g)

      3,256         3,189  

New Jersey Economic Development Authority Revenue Bonds, Series 2016

 

5.000% due 06/15/2041

      5,000         5,176  

New Jersey Economic Development Authority Special Assessment Bonds, Series 2002

 

6.500% due 04/01/2028

      4,326         4,374  

New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series 2013

 

5.500% due 07/01/2043

      2,000         2,051  

New Jersey Transportation Trust Fund Authority Revenue Bonds, (AGM Insured), Series 2006

 

0.000% due 12/15/2034 (c)

      3,200         1,959  

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series 2021

 

4.000% due 06/15/2036

      1,500         1,495  

South Jersey Port Corp., New Jersey Revenue Bonds, Series 2017

 

5.000% due 01/01/2049

      900         927  

Tobacco Settlement Financing Corp., New Jersey Revenue Bonds, Series 2018

 

5.000% due 06/01/2029

      1,200         1,288  

5.000% due 06/01/2046

      7,000         7,003  

5.250% due 06/01/2046

      3,500         3,642  
       

 

 

 
            31,104  
       

 

 

 
NEW YORK 13.4%

 

Metropolitan Transportation Authority, New York Revenue Bonds, (AGM Insured), Series 2019

 

4.000% due 11/15/2049

      2,120         1,955  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2017

 

4.000% due 11/15/2042

      5,500         5,031  

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 2021

 

5.000% due 01/01/2058

      785         549  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2019

 

4.000% due 05/01/2041

      1,110         1,101  

New York City Water & Sewer System, New York Revenue Bonds, Series 2020

 

4.000% due 06/15/2050

      4,000         3,898  

New York Liberty Development Corp. Revenue Bonds, Series 2007

 

5.500% due 10/01/2037

      1,700         1,966  

New York Liberty Development Corp. Revenue Bonds, Series 2014

 

5.000% due 11/15/2044

      1,000         976  

New York State Dormitory Authority Northwell Health Obligated Group Revenue Bonds, Series 2022

 

5.000% due 05/01/2052

      2,000         2,075  

New York State Dormitory Authority Revenue Bonds, Series 2017

 

4.000% due 02/15/2047 (e)

      1,000         957  
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     45
    


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund III   (Cont.)    

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

New York State Dormitory Authority Revenue Bonds, Series 2020

 

4.000% due 02/15/2040

  $     1,250     $     1,228  

New York State Dormitory Authority Revenue Bonds, Series 2021

 

4.000% due 03/15/2040

      3,000         2,948  

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

 

4.200% due 11/01/2054 (g)

      1,500         1,434  

New York State Thruway Authority Revenue Bonds, (AGM Insured), Series 2019

 

4.000% due 01/01/2053

      500         475  

New York State Thruway Authority Revenue Bonds, Series 2017

 

4.000% due 03/15/2047

      2,000         1,945  

New York State Thruway Authority Revenue Bonds, Series 2019

 

4.000% due 01/01/2041

        5,500         5,281  

4.000% due 01/01/2050

      620         579  

New York State Urban Development Corp. Revenue Bonds, Series 2021

 

4.000% due 10/01/2049 (e)

      6,750         6,451  
       

 

 

 
            38,849  
       

 

 

 
NORTH CAROLINA 0.9%

 

University of North Carolina Hospitals at Chapel Hill Revenue Bonds, Series 2016

 

4.000% due 02/01/2046

      2,500         2,472  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      940         545  
       

 

 

 
OHIO 9.5%

 

American Municipal Power, Inc., Ohio Revenue Bonds, Series 2017

 

4.000% due 02/15/2042

      1,000         976  

Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series 2020

 

0.000% due 06/01/2057 (c)

      39,500         5,085  

Geisinger Authority, Ohio Revenue Bonds, Series 2017

 

4.000% due 02/15/2047 (e)

      10,310         9,725  

Montgomery County, Ohio Dayton Children’s Hospital Revenue Bonds, Series 2021

 

4.000% due 08/01/2046

      2,250         2,068  

Ohio Air Quality Development Authority Dayton Power And Light Company Project Revenue Bonds , Series 2015

 

4.250% due 11/01/2040

      2,000         2,019  

Ohio State Turnpike Commission Revenue Bonds, Series 2013

 

5.000% due 02/15/2048

      5,000         5,104  

Ohio Water Development Authority Water Pollution Control Loan Fund Revenue Bonds, Series 2020

 

5.000% due 12/01/2050

      1,250         1,371  

Southern Ohio Port Authority Revenue Notes, Series 2020

 

6.500% due 12/01/2030

      1,400         1,278  
       

 

 

 
          27,626  
       

 

 

 
OKLAHOMA 1.3%

 

Oklahoma Development Finance Authority Revenue Bonds, Series 2018

 

5.500% due 08/15/2052

      1,600         1,496  

Oklahoma Development Finance Authority Revenue Bonds, Series 2021

 

8.000% due 12/01/2041

      1,000         810  

Oklahoma Water Resources Board Revenue Bonds, Series 2020

 

4.000% due 10/01/2049

      1,500         1,492  
       

 

 

 
          3,798  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
OREGON 0.4%

 

Medford Hospital Facilities Authority, Oregon Revenue Bonds, Series 2020

 

4.000% due 08/15/2039

  $     500     $     484  

Washington & Multnomah Counties School District No 48J Beaverton, Oregon General Obligation Bonds, Series 2022

 

0.000% due 06/15/2048 (a)(c)

        2,495         726  
       

 

 

 
            1,210  
       

 

 

 
PENNSYLVANIA 5.3%

 

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2009

 

6.400% due 12/01/2038 ^(b)

      1,350         758  

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      1,650         1,893  

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2022

 

4.000% due 02/15/2041

      1,825         1,748  

Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series 2019

 

5.000% due 08/15/2049

      1,350         1,422  

Pennsylvania Turnpike Commission Revenue Bonds, Series 2013

 

5.000% due 12/01/2043

      5,000         5,192  

Philadelphia Authority for Industrial Development, Pennsylvania Revenue Bonds, Series 2017

 

5.500% due 12/01/2058

      1,000         936  

Philadelphia, Pennsylvania Water & Wastewater Revenue Bonds, Series 2019

 

5.000% due 11/01/2054

      3,100         3,344  
       

 

 

 
          15,293  
       

 

 

 
PUERTO RICO 7.5%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (c)

      31,000         1,663  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043 (c)

      4,383         2,186  

1.000% due 11/01/2051

      2,305         994  

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (c)

      1,315         741  

4.000% due 07/01/2033

      442         406  

4.000% due 07/01/2035

      397         357  

4.000% due 07/01/2037

      341         302  

4.000% due 07/01/2041

      463         402  

5.750% due 07/01/2031

      466         510  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (c)

      227         208  

5.625% due 07/01/2027

      487         519  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2030 ^(b)

      1,425         787  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2007

 

5.000% due 07/01/2046 ^(b)

      2,000         1,105  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2046 (c)

      7,624         2,060  

0.000% due 07/01/2051 (c)

      13,350         2,671  

4.750% due 07/01/2053

      6,992         6,736  
       

 

 

 
            21,647  
       

 

 

 
SOUTH CAROLINA 2.4%

 

South Carolina Public Service Authority Revenue Obligations Revenue Bonds, Series 2013

 

5.125% due 12/01/2043

      5,000         5,074  

5.500% due 12/01/2053

      1,750         1,780  
       

 

 

 
          6,854  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
TENNESSEE 0.8%

 

Metropolitan Government of Nashville & Davidson County, Tennessee Health & Educational Facs Bd Revenue Bonds, Series 2020

 

4.000% due 11/01/2055

  $       1,000     $     789  

Metropolitan Nashville Airport Authority, Tennessee Revenue Bonds, Series 2019

 

4.000% due 07/01/2049

      1,000         941  

Shelby County, Tennessee Health Educational & Housing Facilities Board Revenue Bonds, Series 2019

 

5.750% due 10/01/2059

      750         688  
       

 

 

 
            2,418  
       

 

 

 
TEXAS 13.4%

 

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

 

7.500% due 12/01/2045

      650         522  

12.000% due 12/01/2045

      1,100         994  

Austin, Texas Electric Utility Revenue Bonds, Series 2019

 

5.000% due 11/15/2044

      1,585         1,719  

Bexar County Texas Hospital District, General Obligation Bonds, Series 2018

 

4.000% due 02/15/2043

      2,500         2,492  

Calhoun County, Texas Navigation Industrial Development Authority Revenue Notes, Series 2021

 

3.625% due 07/01/2026

      1,250         1,201  

Central Texas Turnpike System Revenue Bonds, Series 2015

 

0.000% due 08/15/2036 (c)

      1,250         668  

0.000% due 08/15/2037 (c)

      4,000         2,025  

Clifton Higher Education Finance Corp., Texas Revenue Bonds, Series 2018

 

6.125% due 08/15/2048

      1,000         1,020  

Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2013

 

5.000% due 04/01/2053

      4,500         4,680  

Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2018

 

5.000% due 10/01/2048 (e)

      4,000         4,269  

Houston, Texas Combined Utility System Revenue Bonds, Series 2019

 

4.000% due 11/15/2044

      1,500         1,476  

New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2017

 

4.000% due 08/15/2034 (e)

      300         298  

4.000% due 08/15/2035 (e)

      800         793  

4.000% due 08/15/2036 (e)

      600         595  

4.000% due 08/15/2037 (e)

      900         892  

4.000% due 08/15/2040 (e)

      900         891  

New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2021

 

5.500% due 01/01/2057

      2,400         2,051  

North Texas Tollway Authority Revenue Bonds, Series 2017

 

4.000% due 01/01/2043

      1,500         1,477  

5.000% due 01/01/2048

      1,250         1,313  

Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series 2017

 

6.750% due 11/15/2047

      500         520  

Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series 2006

 

5.250% due 12/15/2026

      150         161  

Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series 2008

 

6.250% due 12/15/2026

      6,345         6,788  

University of North Texas System Revenue Bonds, Series 2018

 

4.000% due 04/15/2050

      2,200         2,133  
       

 

 

 
            38,978  
       

 

 

 
 

 

       
46   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022   (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

  $       2,635     $     2,662  
       

 

 

 
UTAH 0.2%

 

Utah County, Utah Revenue Bonds, Series 2020

 

4.000% due 05/15/2043

      550         544  
       

 

 

 
VIRGINIA 5.9%

 

Fairfax County, Virginia Industrial Development Authority Revenue Bonds, Series 2018

 

4.000% due 05/15/2048

      1,000         964  

James City County, Virginia Economic Development Authority Revenue Bonds, Series 2013

 

6.000% due 06/01/2043

      577         597  

University of Virginia Revenue Bonds, Series 2018

 

4.000% due 08/01/2048 (e)

      5,000         5,016  

Virginia Commonwealth Transportation Board Revenue Bonds, Series 2018

 

4.000% due 05/15/2041 (e)

      4,000         4,032  

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (c)

      25,000         1,319  

5.500% due 07/01/2044

      1,000         980  

5.500% due 07/01/2049

      500         486  

Virginia Small Business Financing Authority Revenue Bonds, Series 2020

 

4.000% due 12/01/2049

      3,800         3,575  
       

 

 

 
            16,969  
       

 

 

 
WASHINGTON 2.4%

 

Seattle, Washington Municipal Light & Power Revenue Bonds, Series 2018

 

4.000% due 01/01/2046

      4,000         3,949  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Snohomish County, Washington Housing Authority Revenue Bonds, Series 2019

 

4.000% due 04/01/2044

  $       1,000     $     994  

Washington State Convention Center Public Facilities District Revenue Bonds, Series 2018

 

4.000% due 07/01/2058

      1,345         1,197  

Washington State Housing Finance Commission Revenue Bonds, Series 2018

 

5.000% due 07/01/2038

      825         712  
       

 

 

 
            6,852  
       

 

 

 
WEST VIRGINIA 0.7%

 

Monongalia County, West Virginia Commission Special District Revenue Bonds, Series 2017

 

5.500% due 06/01/2037

      1,000         1,017  

West Virginia State General Obligation Bonds, Series 2019

 

5.000% due 12/01/2041

      1,000         1,094  
       

 

 

 
          2,111  
       

 

 

 
WISCONSIN 6.4%

 

Public Finance Authority, Wisconsin Revenue Bonds, Series 2017

 

7.000% due 01/01/2050

      2,500         2,706  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2018

 

6.375% due 01/01/2048

      2,500         1,537  

7.000% due 07/01/2048

      750         621  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2020

 

0.000% due 01/01/2060 (c)

      7,500         510  

Public Finance Authority, Wisconsin Revenue Bonds, Series 2021

 

4.000% due 09/30/2051

      1,260         1,017  

4.000% due 07/01/2056

      650         550  

University of Wisconsin Hospitals & Clinics Authority Revenue Bonds, Series 2013

 

5.000% due 04/01/2038

      3,500         3,586  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Wisconsin Center District Revenue Bonds, (AGM Insured), Series 2020

 

0.000% due 12/15/2050 (c)

  $     9,410     $     2,431  

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2016

 

4.000% due 11/15/2046

      1,500         1,467  

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2017

 

4.000% due 08/15/2042 (e)

      2,000         1,979  

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2018

 

5.000% due 04/01/2044

      2,000         2,121  
       

 

 

 
          18,525  
       

 

 

 

Total Municipal Bonds & Notes (Cost $537,125)

            523,294  
       

 

 

 
SHORT-TERM INSTRUMENTS 1.3%

 

REPURCHASE AGREEMENTS (h) 1.3%

 

          3,770  
       

 

 

 
Total Short-Term Instruments
(Cost $3,770)
    3,770  
       

 

 

 
       
Total Investments in Securities (Cost $540,895)     527,064  
       
Total Investments 181.8% (Cost $540,895)

 

  $     527,064  
Auction Rate Preferred Shares (53.4)%     (154,700
Remarketable Variable Rate MuniFund Term Preferred Shares, at liquidation value (11.8)%     (34,249
Other Assets and Liabilities, net (16.6)%

 

      (48,183
       

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $     289,932  
       

 

 

 
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

*

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

^

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)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. See Note 5, Tender Option Bond Transactions, in the Notes to Financial Statements for more information.

(f)

Represents an investment in a tender option bond residual interest certificate purchased in a secondary market transaction. The interest rate shown bears an inverse relationship to the interest rate on a tender option bond floating rate certificate. The interest rate disclosed reflects the rate in effect on June 30, 2022.

 

(g)  RESTRICTED SECURITIES:

 

Issuer Description    Coupon     Maturity
Date
    Acquisition
Date
    Cost     Market
Value
   

Market Value

as Percentage

of Net Assets

Applicable to

Common

Shareholders

 

Federal Home Loan Mortgage Corp. Enhanced Receipt, New Jersey Revenue Bonds, Series 2019

     3.870     11/15/2035       10/26/2020     $ 3,742     $ 3,189       1.10

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

     4.200       11/01/2054       11/18/2021       1,703       1,434       0.49  
        

 

 

   

 

 

   

 

 

 
       $     5,445     $     4,623       1.59
      

 

 

   

 

 

   

 

 

 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     47
    


Table of Contents
Schedule of Investments   PIMCO Municipal Income Fund III   (Cont.)   June 30, 2022   (Unaudited)

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS

 

(h)  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     0.400     06/30/2022       07/01/2022     $     3,770     U.S. Treasury Notes 3.000% due 06/30/2024   $ (3,845   $ 3,770     $ 3,770  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

 

    $     (3,845   $     3,770     $     3,770  
   

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 3,770     $ 0     $ 0      $     3,770     $     (3,845   $     (75
 

 

 

   

 

 

   

 

 

        

Total Borrowings and Other Financing Transactions

  $     3,770     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

(1)

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Alabama

  $     0     $     29,873     $     0     $     29,873  

Arizona

    0       24,239       0       24,239  

California

    0       27,074       0       27,074  

Colorado

    0       10,680       0       10,680  

Connecticut

    0       5,328       0       5,328  

Delaware

    0       12,049       0       12,049  

District of Columbia

    0       4,771       0       4,771  

Florida

    0       29,125       0       29,125  

Georgia

    0       16,246       0       16,246  

Illinois

    0       52,265       0       52,265  

Indiana

    0       3,424       0       3,424  

Iowa

    0       3,451       0       3,451  

Kansas

    0       1,965       0       1,965  

Louisiana

    0       14,244       0       14,244  

Maine

    0       2,487       0       2,487  

Maryland

    0       4,110       0       4,110  

Massachusetts

    0       13,222       0       13,222  

Michigan

    0       16,642       0       16,642  

Minnesota

    0       1,705       0       1,705  

Missouri

    0       535       0       535  

Nebraska

    0       5,855       0       5,855  

Nevada

    0       5,547       0       5,547  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

New Jersey

  $ 0     $ 31,104     $ 0     $ 31,104  

New York

    0       38,849       0       38,849  

North Carolina

    0       2,472       0       2,472  

North Dakota

    0       545       0       545  

Ohio

    0       27,626       0       27,626  

Oklahoma

    0       3,798       0       3,798  

Oregon

    0       1,210       0       1,210  

Pennsylvania

    0       15,293       0       15,293  

Puerto Rico

    0       21,647       0       21,647  

South Carolina

    0       6,854       0       6,854  

Tennessee

    0       2,418       0       2,418  

Texas

    0       38,978       0       38,978  

U.S. Virgin Islands

    0       2,662       0       2,662  

Utah

    0       544       0       544  

Virginia

    0       16,969       0       16,969  

Washington

    0       6,852       0       6,852  

West Virginia

    0       2,111       0       2,111  

Wisconsin

    0       18,525       0       18,525  

Short-Term Instruments

 

Repurchase Agreements

    0       3,770       0       3,770  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     527,064     $     0     $     527,064  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

       
48   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund          June 30, 2022 (Unaudited)

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 188.4%

 

MUNICIPAL BONDS & NOTES 183.0%

 

ARIZONA 0.4%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

  $     850     $     926  
       

 

 

 
CALIFORNIA 160.0%

 

Bay Area Toll Authority, California Revenue Bonds, Series 2017

 

5.000% due 04/01/2056

      1,750         1,963  

California Community Housing Agency Revenue Bonds, Series 2019

 

5.000% due 04/01/2049

      3,925         3,590  

5.000% due 08/01/2049

      1,000         922  

California Community Housing Agency Revenue Bonds, Series 2022

 

4.500% due 08/01/2052

      1,000         886  

California County Tobacco Securitization Agency Revenue Bonds, Series 2002

 

6.000% due 06/01/2035

      2,290         2,290  

6.125% due 06/01/2038

      1,000         940  

California County Tobacco Securitization Agency Revenue Bonds, Series 2007

 

0.000% due 06/01/2057 (c)

      7,000         968  

California County Tobacco Securitization Agency Revenue Bonds, Series 2020

 

0.000% due 06/01/2055 (c)

      4,700         768  

California Educational Facilities Authority Revenue Bonds, Series 2017

 

5.000% due 04/01/2047

      800         847  

California Educational Facilities Authority Revenue Bonds, Series 2018

 

4.000% due 10/01/2039

      1,250         1,212  

5.000% due 10/01/2048

      1,000         1,057  

California Enterprise Development Authority Revenue Bonds, Series 2020

 

5.000% due 08/01/2050

      700         705  

California Health Facilities Financing Authority Revenue Bonds, (CM Insured), Series 2020

 

4.000% due 11/01/2040

      1,195         1,181  

California Health Facilities Financing Authority Revenue Bonds, Series 2012

 

5.000% due 08/15/2051

      7,300         7,331  

California Health Facilities Financing Authority Revenue Bonds, Series 2013

 

5.000% due 08/15/2052

      1,675         1,736  

California Health Facilities Financing Authority Revenue Bonds, Series 2015

 

5.000% due 08/15/2054

      1,300         1,347  

California Health Facilities Financing Authority Revenue Bonds, Series 2016

 

5.000% due 11/15/2046 (e)

      5,000         5,340  

5.000% due 08/15/2055

      6,000         6,237  

California Health Facilities Financing Authority Revenue Bonds, Series 2017

 

4.000% due 11/01/2038

      1,400         1,393  

California Health Facilities Financing Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2049

      3,500         3,280  

4.000% due 06/01/2050

      3,250         2,999  

California Health Facilities Financing Authority Revenue Bonds, Series 2021

 

4.000% due 08/15/2048

      2,500         2,444  

California Infrastructure & Economic Development Bank Revenue Bonds, Series 2013

 

5.000% due 02/01/2039

      10,000           10,196  

California Infrastructure & Economic Development Bank Revenue Bonds, Series 2020

 

0.000% due 01/01/2060 (c)

      5,250         370  

4.000% due 07/01/2050

      350         336  

4.000% due 11/01/2050

      860         781  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

California Municipal Finance Authority Revenue Bonds, Series 2018

 

5.000% due 05/15/2043

  $     500     $     517  

5.000% due 06/01/2043

      1,370         1,476  

5.000% due 06/01/2048

      1,370         1,468  

California Municipal Finance Authority Revenue Bonds, Series 2021

 

4.000% due 11/01/2036

      765         665  

4.000% due 02/01/2051

      1,650         1,491  

California Public Finance Authority Revenue Bonds, Series 2019

 

6.250% due 07/01/2054

      1,350         1,467  

California Public Finance Authority Revenue Bonds, Series 2022

 

0.520% due 07/15/2062

      2,500         2,500  

California State General Obligation Bonds, Series 2013

 

5.000% due 11/01/2043

      7,000         7,229  

California State General Obligation Bonds, Series 2017

 

4.000% due 11/01/2047

      2,750           2,720  

California State General Obligation Bonds, Series 2018

 

5.000% due 10/01/2047

      1,275         1,344  

California State General Obligation Bonds, Series 2021

 

5.000% due 09/01/2041

      1,500         1,691  

California State General Obligation Bonds, Series 2022

 

4.000% due 04/01/2049

      2,250         2,216  

California State General Obligation Notes, Series 2020

 

5.000% due 11/01/2028

      2,500         2,865  

California State General Obligation Notes, Series 2021

 

5.000% due 10/01/2029

      2,700         3,131  

California State University Revenue Bonds, Series 2015

 

5.000% due 11/01/2047

      8,000         8,343  

California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series 2018

 

4.000% due 07/01/2040

      1,000         968  

4.000% due 07/01/2043

      350         337  

4.000% due 07/01/2047

      1,750         1,683  

California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series 2021

 

4.000% due 11/01/2051

      800         767  

California Statewide Communities Development Authority Revenue Bonds, Series 2014

 

5.500% due 12/01/2054

      1,400         1,417  

California Statewide Communities Development Authority Revenue Bonds, Series 2016

 

4.000% due 08/15/2051

      225         211  

5.000% due 12/01/2046

      5,700         5,624  

California Statewide Communities Development Authority Revenue Bonds, Series 2018

 

4.000% due 07/01/2048

      1,000         961  

4.000% due 12/01/2057

      2,000         1,841  

5.000% due 03/01/2048

      1,700         1,762  

5.500% due 12/01/2058

      1,775         1,787  

California Statewide Financing Authority Revenue Bonds, Series 2002

 

6.000% due 05/01/2037

      2,880         2,925  

Chaffey Joint Union High School District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2047 (e)

      5,500         5,315  

Chino Valley Unified School District, California General Obligation Bonds, Series 2022

 

0.000% due 08/01/2036 (c)

      1,395         784  

0.000% due 08/01/2042 (c)

      1,500         614  

CMFA Special Finance Agency VII, California Revenue Bonds, Series 2021

 

3.000% due 08/01/2056

      2,500         1,808  

4.000% due 08/01/2047

      600         460  

CMFA Special Finance Agency, California Revenue Bonds, Series 2021

 

4.000% due 08/01/2045

      750         585  

CSCDA Community Improvement Authority, California Revenue Bonds, Series 2021

 

3.000% due 09/01/2056

      1,000         719  

3.000% due 02/01/2057

      500         361  

3.100% due 07/01/2045

      1,000         761  

4.000% due 08/01/2056

      250         205  

4.000% due 10/01/2056

      600         457  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

CSCDA Community Improvement Authority, California Revenue Bonds, Series 2022

 

0.000% due 09/01/2062 (d)

  $     2,000     $     1,048  

El Monte, California Certificates of Participation Bonds, (AMBAC Insured), Series 2001

 

5.250% due 01/01/2034 (f)

      13,625           13,664  

Foothill-Eastern Transportation Corridor Agency, California Revenue Bonds, Series 2014

 

3.950% due 01/15/2053

      860         768  

Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series 2018

 

5.000% due 06/01/2030

      2,000         2,279  

Hacienda La Puente Unified School District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2047

      2,000         1,924  

Hartnell Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2042

      3,400         3,341  

Hastings Campus Housing Finance Authority, California Revenue Bonds, Series 2020

 

5.000% due 07/01/2061

      2,000         1,953  

Hayward Unified School District, California General Obligation Bonds, Series 2015

 

5.000% due 08/01/2038

      6,000         6,364  

Imperial Irrigation District Electric System, California Revenue Bonds, Series 2016

 

5.000% due 11/01/2041 (e)

      6,000         6,459  

Long Beach Bond Finance Authority, California Revenue Bonds, Series 2007

 

5.500% due 11/15/2027

      1,000         1,093  

5.500% due 11/15/2030

      415         458  

Long Beach Community College District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2045

      500         488  

Los Angeles California Department of Water & Power Water System Revenue Bonds, Series 2012

 

5.000% due 07/01/2037

      4,100         4,100  

Los Angeles Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2041 (e)

      3,500         3,493  

Los Angeles County, California Metropolitan Transportation Authority Revenue Bonds, Series 2019

 

5.000% due 07/01/2044

      2,500         2,738  

Los Angeles County, California Metropolitan Transportation Authority Sales Tax Revenue Bonds, Series 2021

 

4.000% due 06/01/2037

      1,750         1,762  

Los Angeles County, California Sanitation Districts Financing Authority Revenue Bonds, Series 2016

 

4.000% due 10/01/2042

      1,500         1,446  

Los Angeles Department of Airports, California Revenue Bonds, Series 2021

 

5.000% due 05/15/2048

      2,500         2,720  

Los Angeles Department of Water & Power System, California Revenue Bonds, Series 2012

 

5.000% due 07/01/2043

      5,000         5,000  

Los Angeles Department of Water & Power System, California Revenue Bonds, Series 2014

 

5.000% due 07/01/2043

      2,000         2,066  

Los Angeles Department of Water & Power System, California Revenue Bonds, Series 2019

 

5.000% due 07/01/2049

      1,000         1,083  

Los Angeles Department of Water & Power, California Revenue Bonds, Series 2021

 

5.000% due 07/01/2041

      1,500         1,674  

M-S-R Energy Authority, California Revenue Bonds, Series 2009

 

6.500% due 11/01/2039

      15,345           18,970  

Monterey Peninsula Unified School District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2040

      3,000         2,974  

Mount San Antonio Community College District, California General Obligation Bonds, Series 2019

 

5.000% due 08/01/2041

      1,265         1,401  

5.000% due 08/01/2044

      1,700         1,872  
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     49
    


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund   (Cont.)  

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Mount San Jacinto Community College District, California General Obligation Bonds, Series 2018

 

4.000% due 08/01/2043

  $     5,300     $     5,180  

Municipal Improvement Corp. of Los Angeles, California Revenue Bonds, Series 2021

 

5.000% due 11/01/2038

      2,000         2,260  

Newport Mesa Unified School District, California General Obligation Bonds, (NPFGC Insured), Series 2007

 

0.000% due 08/01/2031 (c)

      1,750         1,290  

Northern California Energy Authority Revenue Bonds, Series 2018

 

4.000% due 07/01/2049

      2,300         2,339  

Orange County, California Local Transportation Authority Revenue Bonds, Series 2019

 

5.000% due 02/15/2041

      1,000         1,101  

Orange County, California Water District Certificates of Participation Bonds, Series 2003

 

0.700% due 08/01/2042

      2,000         2,000  

Pacifica School District, California General Obligation Bonds, Series 2018

 

4.000% due 08/01/2048

      1,750         1,684  

Palomar Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2046 (e)

      4,530         4,370  

Regents of the University of California Medical Center Pooled Revenue Bonds, Series 2013

 

5.000% due 05/15/2043

      2,000         2,048  

River Islands Public Financing Authority, California Special Tax Bonds, Series 2015

 

5.500% due 09/01/2045

      3,000         3,064  

Riverside, California Sewer Revenue Bonds, Series 2018

 

4.000% due 08/01/2038

      4,250         4,263  

Riverside, California Water Revenue Bonds, Series 2019

 

5.000% due 10/01/2048

      3,250         3,548  

Sacramento Area Flood Control Agency, California Special Assessment Bonds, Series 2016

 

5.000% due 10/01/2041 (e)

      2,800         3,010  

5.000% due 10/01/2047 (e)

      1,700         1,812  

Sacramento County, California Sanitation Districts Financing Authority Revenue Bonds, Series 2020

 

5.000% due 12/01/2050

      1,000         1,096  

Sacramento Municipal Utility District, California Revenue Bonds, Series 2019

 

5.000% due 08/15/2039

      1,000         1,104  

Sacramento Transportation Authority Sales Tax, California Revenue Bonds, Series 2009

 

0.620% due 10/01/2038

      1,900         1,900  

Sacramento, California Special Tax Bonds, Series 2021

 

4.000% due 09/01/2046

      1,200         1,063  

San Diego County, California Regional Airport Authority Revenue Bonds, Series 2021

 

4.000% due 07/01/2051

      750         719  

5.000% due 07/01/2051

      2,215         2,322  

San Diego Public Facilities Financing Authority Revenue Bonds, Series 2022

 

5.000% due 05/15/2047

      1,000         1,116  

San Diego Public Facilities Financing Authority, California Revenue Bonds, Series 2020

 

4.000% due 08/01/2045

      2,750         2,666  

San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2042 (e)

      5,500         5,486  

San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2044

      2,560           2,546  

San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2017

 

5.000% due 05/01/2047

      2,625           2,740  

San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2019

 

5.000% due 05/01/2039

      2,000         2,151  

5.000% due 05/01/2049

      2,000         2,109  

5.000% due 05/01/2050

      1,900         2,003  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

San Francisco, California City & County Certificates of Participation Bonds, Series 2015

 

4.000% due 09/01/2033

  $     2,000     $     2,017  

San Joaquin County Transportation Authority, California Revenue Bonds, Series 2017

 

4.000% due 03/01/2041 (e)

      2,200         2,173  

5.000% due 03/01/2041 (e)

      3,300         3,541  

San Jose Evergreen Community College District, California General Obligation Bonds, Series 2014

 

4.125% due 09/01/2043

      1,000         1,045  

San Jose Unified School District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2042

      1,000         985  

San Jose, California General Obligation Bonds, Series 2019

 

5.000% due 09/01/2041

      1,500         1,659  

San Mateo County, California Community College District General Obligation Bonds, (NPFGC Insured), Series 2006

 

0.000% due 09/01/2034 (c)

      3,000         1,960  

San Mateo County, California Community College District General Obligation Bonds, Series 2018

 

5.000% due 09/01/2045

      4,000         4,385  

San Mateo Foster City Public Financing Authority, California Revenue Bonds, Series 2019

 

4.000% due 08/01/2044

      1,540         1,498  

Santa Monica Community College District General Obligation Bonds, Series 2022

 

4.000% due 08/01/2045

      1,190         1,164  

Silicon Valley Tobacco Securitization Authority, California Revenue Bonds, Series 2007

 

0.000% due 06/01/2036 (c)

      1,000         454  

Tobacco Securitization Authority of Northern California Revenue Bonds, Series 2021

 

0.000% due 06/01/2060 (c)

      15,900         2,297  

4.000% due 06/01/2049

      200         201  

Tobacco Securitization Authority of Southern California Revenue Bonds, Series 2006

 

0.000% due 06/01/2046 (c)

      4,000         550  

University of California Revenue Bonds, Series 2017

 

5.000% due 05/15/2047

      5,000         5,296  

University of California Revenue Bonds, Series 2019

 

5.000% due 05/15/2049

      2,500         2,698  

Upland, California Certificates of Participation Bonds, Series 2017

 

4.000% due 01/01/2042

      3,250         2,992  

Washington Township Health Care District, California General Obligation Bonds, Series 2013

 

5.000% due 08/01/2043

      2,500         2,560  

West Valley-Mission Community College District, California General Obligation Bonds, Series 2022

 

4.000% due 08/01/2047 (a)

      2,000         1,945  
       

 

 

 
            330,142  
       

 

 

 
DELAWARE 1.4%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.167% due 10/01/2038

      2,730         2,370  

7.120% due 10/01/2038

      480         467  
       

 

 

 
          2,837  
       

 

 

 
ILLINOIS 6.2%

 

Chicago, Illinois General Obligation Bonds, Series 2007

 

5.500% due 01/01/2042

      2,000         2,058  

Chicago, Illinois General Obligation Bonds, Series 2015

 

5.250% due 01/01/2028

      3,400         3,522  

Chicago, Illinois General Obligation Bonds, Series 2017

 

6.000% due 01/01/2038

      2,500         2,686  

Illinois State General Obligation Bonds, Series 2012

 

5.000% due 08/01/2023

      1,500         1,538  

Illinois State General Obligation Bonds, Series 2020

 

4.125% due 10/01/2036

      2,000         1,940  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Illinois State General Obligation Notes, Series 2017

 

5.000% due 11/01/2027

  $     1,000     $     1,079  
       

 

 

 
            12,823  
       

 

 

 
LOUISIANA 0.3%

 

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      650         609  
       

 

 

 
MICHIGAN 0.4%

 

Michigan Finance Authority Revenue Bonds, Series 2020

 

0.000% due 06/01/2065 (c)

      10,535         965  
       

 

 

 
NEW YORK 2.6%

 

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2014

 

5.000% due 11/15/2039

      1,200         1,226  

Southwestern Community College District, California Revenue Bonds, Series 2021

 

4.000% due 08/01/2046

      4,300         4,148  
       

 

 

 
          5,374  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      650         377  
       

 

 

 
PENNSYLVANIA 0.6%

 

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      1,170         1,342  
       

 

 

 
PUERTO RICO 8.8%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (c)

      20,400         1,100  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043 (c)

      3,137         1,565  

0.000% due 11/01/2051 (c)

      1,242         536  

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (c)

      940         529  

4.000% due 07/01/2033

      316         290  

4.000% due 07/01/2035

      284         255  

4.000% due 07/01/2037

      244         217  

4.000% due 07/01/2041

      332         288  

5.750% due 07/01/2031

      334         365  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (c)

      163         149  

5.625% due 07/01/2027

      349         372  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2024 ^(b)

      1,500         829  

5.000% due 07/01/2030 ^(b)

      1,000         552  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2046 (c)

      22,775           6,154  

4.750% due 07/01/2053

      5,085         4,898  
       

 

 

 
          18,099  
       

 

 

 
TEXAS 0.5%

 

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

 

7.500% due 12/01/2045

      460         369  

12.000% due 12/01/2045

      800         723  
       

 

 

 
          1,092  
       

 

 

 
 

 

       
50   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022 (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

  $     1,860     $     1,879  
       

 

 

 
VIRGINIA 0.7%

 

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (c)

      17,000         897  

5.500% due 07/01/2044

      500         490  
       

 

 

 
          1,387  
       

 

 

 

Total Municipal Bonds & Notes
(Cost $387,088)

      377,852  
 

 

 

 
                  MARKET
VALUE
(000S)
 
SHORT-TERM INSTRUMENTS 5.4%

 

REPURCHASE AGREEMENTS (g) 5.4%

 

      $     11,049  
       

 

 

 
Total Short-Term Instruments
(Cost $11,049)
    11,049  
 

 

 

 
 
Total Investments in Securities
(Cost $398,137)
    388,901  
 
Total Investments 188.4%
(Cost $398,137)

 

  $     388,901  
Auction Rate Preferred Shares (58.4)%

 

        (120,625
Remarketable Variable Rate MuniFund Term Preferred Shares, at liquidation value (14.2)%     (29,253
Other Assets and Liabilities, net (15.8)%       (32,646
       

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $       206,377  
       

 

 

 

 

    

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

*

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

^

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)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. See Note 5, Tender Option Bond Transactions, in the Notes to Financial Statements for more information.

 

(f)  RESTRICTED SECURITIES:

 

Issuer Description    Coupon     Maturity
Date
    Acquisition
Date
    Cost     Market
Value
   

Market Value

as Percentage

of Net Assets

Applicable to

Common

Shareholders

 

El Monte, California Certificates of Participation Bonds, (AMBAC Insured), Series 2001

     5.250%       01/01/2034       08/02/2001     $     13,625     $     13,664       6.62%  
        

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS

 

(g)  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     0.400     06/30/2022       07/01/2022     $     11,049     U.S. Treasury Notes 3.000% due 06/30/2024   $ (11,270   $ 11,049     $ 11,049  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

  $     (11,270   $     11,049     $     11,049  
           

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 11,049     $ 0     $ 0      $     11,049     $     (11,270   $     (221
 

 

 

   

 

 

   

 

 

        

Total Borrowings and Other Financing Transactions

  $     11,049     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     51
    


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund   (Cont.)   June 30, 2022 (Unaudited)

 

(1)

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Arizona

  $ 0     $ 926     $ 0     $ 926  

California

    0           330,142       0           330,142  

Delaware

    0       2,837       0       2,837  

Illinois

    0       12,823       0       12,823  

Louisiana

    0       609       0       609  

Michigan

    0       965       0       965  

New York

    0       5,374       0       5,374  

North Dakota

        0       377           0       377  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Pennsylvania

  $ 0     $ 1,342     $ 0     $ 1,342  

Puerto Rico

    0       18,099       0       18,099  

Texas

    0       1,092       0       1,092  

U.S. Virgin Islands

    0       1,879       0       1,879  

Virginia

    0       1,387       0       1,387  

Short-Term Instruments

 

Repurchase Agreements

    0       11,049       0       11,049  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     388,901     $     0     $     388,901  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

       
52   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund II          June 30, 2022   (Unaudited)

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 184.0%

 

MUNICIPAL BONDS & NOTES 183.5%

 

ARIZONA 0.5%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

  $     940     $     1,025  
       

 

 

 
CALIFORNIA 159.3%

 

Bay Area Toll Authority, California Revenue Bonds, Series 2014

 

5.000% due 10/01/2054

      3,000         3,196  

Bay Area Toll Authority, California Revenue Bonds, Series 2017

 

4.000% due 04/01/2047

      3,000         2,931  

5.000% due 04/01/2056

      2,000         2,243  

California Community Housing Agency Revenue Bonds, Series 2019

 

5.000% due 04/01/2049

      4,400         4,025  

5.000% due 08/01/2049

      1,000         922  

California Community Housing Agency Revenue Bonds, Series 2022

 

4.500% due 08/01/2052

      1,000         886  

California County Tobacco Securitization Agency Revenue Bonds, Series 2002

 

5.875% due 06/01/2043

      1,120         1,120  

California County Tobacco Securitization Agency Revenue Bonds, Series 2007

 

0.000% due 06/01/2057 (b)

      9,000         1,244  

California County Tobacco Securitization Agency Revenue Bonds, Series 2020

 

0.000% due 06/01/2055 (b)

      5,100         834  

California Educational Facilities Authority Revenue Bonds, Series 2017

 

5.000% due 04/01/2047

      835         884  

California Educational Facilities Authority Revenue Bonds, Series 2018

 

5.000% due 10/01/2043

      1,300         1,381  

5.000% due 10/01/2048

      1,320         1,395  

California Enterprise Development Authority Revenue Bonds, Series 2020

 

5.000% due 08/01/2050

      750         755  

California Health Facilities Financing Authority Revenue Bonds, (CM Insured), Series 2020

 

4.000% due 11/01/2040

      1,285         1,270  

California Health Facilities Financing Authority Revenue Bonds, Series 2012

 

5.000% due 11/15/2034

      1,000         1,003  

5.000% due 08/15/2051

      5,555         5,579  

California Health Facilities Financing Authority Revenue Bonds, Series 2015

 

5.000% due 08/15/2054

      5,000         5,182  

California Health Facilities Financing Authority Revenue Bonds, Series 2016

 

4.000% due 10/01/2047

      1,500         1,407  

5.000% due 11/15/2046

      1,000         1,069  

5.000% due 08/15/2055

      6,275         6,523  

California Health Facilities Financing Authority Revenue Bonds, Series 2017

 

4.000% due 11/01/2038

      1,500         1,493  

California Health Facilities Financing Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2049

      3,750         3,514  

4.000% due 06/01/2050

      3,500         3,230  

California Health Facilities Financing Authority Revenue Bonds, Series 2021

 

4.000% due 08/15/2048

      2,700         2,640  

California Infrastructure & Economic Development Bank Revenue Bonds, Series 2013

 

5.000% due 02/01/2039

      10,000         10,196  

California Infrastructure & Economic Development Bank Revenue Bonds, Series 2020

 

0.000% due 01/01/2060 (b)

      6,250         441  

4.000% due 07/01/2050

      350         336  

4.000% due 11/01/2055

      915         826  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

California Municipal Finance Authority Revenue Bonds, Series 2017

 

5.000% due 01/01/2042

  $     1,750     $     1,797  

California Municipal Finance Authority Revenue Bonds, Series 2018

 

5.000% due 05/15/2043

      1,000         1,033  

5.000% due 06/01/2043

      1,465         1,578  

California Municipal Finance Authority Revenue Bonds, Series 2021

 

4.000% due 11/01/2036

      840         730  

4.000% due 02/01/2051

      850         768  

California Public Finance Authority Revenue Bonds, Series 2019

 

6.250% due 07/01/2054

      1,650         1,793  

California State General Obligation Bonds, Series 2013

 

5.000% due 11/01/2043

      7,000         7,229  

California State General Obligation Bonds, Series 2017

 

4.000% due 11/01/2047

      3,250         3,215  

California State General Obligation Bonds, Series 2018

 

4.000% due 10/01/2039

      4,500         4,512  

5.000% due 10/01/2047

      2,000         2,108  

California State General Obligation Bonds, Series 2020

 

4.000% due 03/01/2040

      3,350         3,363  

4.000% due 03/01/2046

      1,000         992  

California State General Obligation Notes, Series 2020

 

5.000% due 11/01/2028

      2,105         2,412  

California State General Obligation Notes, Series 2021

 

5.000% due 10/01/2029

      3,000         3,479  

California State Public Works Board Revenue Bonds, Series 2013

 

5.000% due 03/01/2038

      2,500         2,541  

California State University Revenue Bonds, Series 2015

 

5.000% due 11/01/2047

      5,000         5,214  

California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series 2018

 

4.000% due 07/01/2043

      1,350         1,301  

California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series 2021

 

4.000% due 11/01/2051

      900         863  

California Statewide Communities Development Authority Revenue Bonds, Series 2014

 

5.500% due 12/01/2054

      1,500         1,518  

California Statewide Communities Development Authority Revenue Bonds, Series 2016

 

4.000% due 08/15/2051

      225         211  

5.000% due 06/01/2046

      2,000         2,020  

5.000% due 12/01/2046

      2,000         1,973  

5.250% due 12/01/2056

      2,000         2,010  

California Statewide Communities Development Authority Revenue Bonds, Series 2018

 

4.000% due 07/01/2048

      1,000         961  

4.000% due 12/01/2053

      230         214  

4.000% due 12/01/2057

      2,000         1,841  

5.000% due 03/01/2048

      2,800         2,903  

5.500% due 12/01/2058

      7,200         7,250  

California Statewide Financing Authority Revenue Bonds, Series 2002

 

6.000% due 05/01/2037

      1,920         1,950  

Chino Valley Unified School District, California General Obligation Bonds, Series 2022

 

0.000% due 08/01/2037 (b)

      1,000         533  

0.000% due 08/01/2040 (b)

      1,400         637  

0.000% due 08/01/2043 (b)

      1,750         681  

0.000% due 08/01/2044 (b)

      1,405         520  

CMFA Special Finance Agency VII, California Revenue Bonds, Series 2021

 

3.000% due 08/01/2056

      1,000         723  

4.000% due 08/01/2047

      600         459  

CMFA Special Finance Agency, California Revenue Bonds, Series 2021

 

4.000% due 08/01/2045

      750         585  

CSCDA Community Improvement Authority, California Revenue Bonds, Series 2021

 

3.000% due 09/01/2056

      1,000         719  

3.000% due 12/01/2056

      1,500         1,083  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

3.000% due 02/01/2057

  $     500     $     361  

3.100% due 07/01/2045

      1,000         761  

4.000% due 08/01/2056

      250         205  

4.000% due 10/01/2056

      550         419  

CSCDA Community Improvement Authority, California Revenue Bonds, Series 2022

 

0.000% due 09/01/2062 (c)

      2,200         1,152  

Foothill-Eastern Transportation Corridor Agency, California Revenue Bonds, Series 2014

 

3.950% due 01/15/2053

      920         821  

Fremont Community Facilities District No. 1, California Special Tax Bonds, Series 2015

 

5.000% due 09/01/2045

      1,400         1,426  

Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series 2018

 

5.000% due 06/01/2030

      1,500         1,709  

5.000% due 06/01/2034

      4,500         5,128  

Hacienda La Puente Unified School District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2047

      3,000         2,886  

Hartnell Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2042

      3,500         3,439  

Hastings Campus Housing Finance Authority, California Revenue Bonds, Series 2020

 

5.000% due 07/01/2061

      2,650         2,588  

Hayward Unified School District, California General Obligation Bonds, Series 2015

 

5.000% due 08/01/2038

      3,000         3,182  

Long Beach Bond Finance Authority, California Revenue Bonds, Series 2007

 

5.500% due 11/15/2030

      460         508  

5.500% due 11/15/2037

      7,500         8,381  

Long Beach Community College District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2045

      550         536  

Los Angeles Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2041 (d)

      3,600         3,593  

Los Angeles County, California Facilities, Inc., Revenue Bonds, Series 2018

 

4.000% due 12/01/2048

      2,500         2,401  

Los Angeles County, California Metropolitan Transportation Authority Revenue Bonds,
Series 2019

 

5.000% due 07/01/2044

      2,700         2,957  

Los Angeles County, California Metropolitan Transportation Authority Sales Tax Revenue Bonds, Series 2021

 

4.000% due 06/01/2037

      2,000         2,014  

Los Angeles County, California Sanitation Districts Financing Authority Revenue Bonds, Series 2016

 

4.000% due 10/01/2042

      2,000         1,928  

Los Angeles Department of Airports, California Revenue Bonds, Series 2020

 

4.000% due 05/15/2048

      2,575         2,538  

Los Angeles Department of Airports, California Revenue Bonds, Series 2021

 

5.000% due 05/15/2048

      2,500         2,720  

Los Angeles Department of Water & Power System, California Revenue Bonds, Series 2014

 

5.000% due 07/01/2043

      3,000         3,100  

Los Angeles Department of Water & Power System, California Revenue Bonds, Series 2018

 

5.000% due 07/01/2043

      2,000         2,165  

Los Angeles Department of Water & Power, California Revenue Bonds, Series 2021

 

5.000% due 07/01/2041

      3,900         4,352  

Los Angeles, California Wastewater System Revenue Bonds, Series 2017

 

5.000% due 06/01/2039

      1,000         1,084  

M-S-R Energy Authority, California Revenue Bonds, Series 2009

 

6.500% due 11/01/2039

      16,445         20,329  

7.000% due 11/01/2034

      1,000         1,245  
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     53
    


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund II   (Cont.)    

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Mount San Antonio Community College District, California General Obligation Bonds, Series 2019

 

5.000% due 08/01/2041

  $     1,500     $     1,661  

5.000% due 08/01/2044

      1,850         2,037  

Mount San Jacinto Community College District, California General Obligation Bonds, Series 2018

 

4.000% due 08/01/2043

      4,400         4,301  

Municipal Improvement Corp. of Los Angeles, California Revenue Bonds, Series 2021

 

5.000% due 11/01/2038

      2,200         2,487  

Newport Mesa Unified School District, California General Obligation Bonds, (NPFGC Insured),
Series 2007

 

0.000% due 08/01/2031 (b)

      1,900         1,401  

Northern California Energy Authority Revenue Bonds, Series 2018

 

4.000% due 07/01/2049

      2,500         2,542  

Orange County, California Local Transportation Authority Revenue Bonds, Series 2019

 

5.000% due 02/15/2041

      3,000         3,302  

Pacifica School District, California General Obligation Bonds, Series 2018

 

4.000% due 08/01/2048

      2,000         1,924  

Palomar Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2046 (d)

      4,000         3,859  

Poway Unified School District, California General Obligation Bonds, Series 2011

 

0.000% due 08/01/2040 (b)

      11,000         5,293  

0.000% due 08/01/2046 (b)

      16,000         5,440  

River Islands Public Financing Authority, California Special Tax Bonds, Series 2015

 

5.500% due 09/01/2045

      3,000         3,064  

Riverside, California Sewer Revenue Bonds,
Series 2018

 

4.000% due 08/01/2038

      3,500         3,511  

Riverside, California Water Revenue Bonds,
Series 2019

 

5.000% due 10/01/2048

      3,540         3,865  

Sacramento Area Flood Control Agency, California Special Assessment Bonds, Series 2016

 

5.000% due 10/01/2041 (d)

      2,800         3,010  

5.000% due 10/01/2047 (d)

      1,700         1,812  

Sacramento County, California Sanitation Districts Financing Authority Revenue Bonds, Series 2020

 

5.000% due 12/01/2050

      1,200         1,315  

Sacramento Transportation Authority Sales Tax, California Revenue Bonds, Series 2015

 

0.730% due 10/01/2038

      600         600  

San Diego County, California Regional Airport Authority Revenue Bonds, Series 2021

 

4.000% due 07/01/2051

      1,000         959  

5.000% due 07/01/2051

      2,360         2,474  

San Diego Public Facilities Financing Authority Revenue Bonds, Series 2022

 

5.000% due 05/15/2047

      1,000         1,116  

San Diego Public Facilities Financing Authority, California Revenue Bonds, Series 2020

 

4.000% due 08/01/2038

      1,610         1,612  

4.000% due 08/01/2045

      1,250         1,212  

San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series 2017

 

5.000% due 08/01/2047

      1,000         1,074  

San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2044

      2,780         2,764  

San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2017

 

5.000% due 05/01/2047

      2,750         2,871  

San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2019

 

5.000% due 05/01/2050

      3,500         3,689  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

San Francisco, California City & County Certificates of Participation Bonds, Series 2015

 

4.000% due 09/01/2033

  $     1,530     $     1,543  

San Francisco, California City & County Certificates of Participation Bonds, Series 2019

 

4.000% due 04/01/2038

      3,000         3,014  

San Francisco, California City & County Public Utilities Commission Wastewater Revenue Bonds,
Series 2018

 

4.000% due 10/01/2043 (d)

      10,000         9,912  

San Jose Evergreen Community College District, California General Obligation Bonds, Series 2014

 

4.125% due 09/01/2043

      1,750         1,829  

San Jose Unified School District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2042

      1,000         985  

San Marcos Redevelopment Agency Successor Agency, California Tax Allocation Bonds, Series 2015

 

5.000% due 10/01/2032

      850         911  

5.000% due 10/01/2033

      1,125         1,205  

San Mateo County, California Community College District General Obligation Bonds, (NPFGC Insured), Series 2006

 

0.000% due 09/01/2034 (b)

      12,000         7,839  

San Mateo County, California Community College District General Obligation Bonds, Series 2018

 

5.000% due 09/01/2045 (d)

      11,900         13,047  

San Mateo Foster City Public Financing Authority, California Revenue Bonds, Series 2019

 

4.000% due 08/01/2044

      1,655         1,610  

Santa Ana Unified School District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2048

      1,750         1,671  

Santa Monica Community College District General Obligation Bonds, Series 2022

 

4.000% due 08/01/2045

      1,270         1,242  

Silicon Valley Tobacco Securitization Authority, California Revenue Bonds, Series 2007

 

0.000% due 06/01/2036 (b)

      1,000         454  

Tobacco Securitization Authority of Northern California Revenue Bonds, Series 2021

 

0.000% due 06/01/2060 (b)

      19,480         2,814  

4.000% due 06/01/2049

      405         406  

Tobacco Securitization Authority of Southern California Revenue Bonds, Series 2006

 

0.000% due 06/01/2046 (b)

      5,000         676  

University of California Revenue Bonds, Series 2019

 

5.000% due 05/15/2049

      2,000         2,158  

Upland, California Certificates of Participation Bonds, Series 2017

 

4.000% due 01/01/2042

      3,000         2,761  

Val Verde Unified School District, California General Obligation Bonds, (AGM Insured), Series 2021

 

4.000% due 08/01/2046

      800         782  

Washington Township Health Care District, California General Obligation Bonds, Series 2013

 

5.000% due 08/01/2043

      3,000         3,072  
       

 

 

 
            351,298  
       

 

 

 
DELAWARE 1.4%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.167% due 10/01/2038

      2,935         2,548  

7.120% due 10/01/2038

      525         511  
       

 

 

 
          3,059  
       

 

 

 
ILLINOIS 7.2%

 

Chicago, Illinois General Obligation Bonds, Series 2007

 

5.500% due 01/01/2042

      2,350         2,418  

Chicago, Illinois General Obligation Bonds, Series 2015

 

5.250% due 01/01/2028

      6,035         6,251  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Chicago, Illinois General Obligation Bonds, Series 2017

 

6.000% due 01/01/2038

  $     2,000     $     2,149  

Illinois State General Obligation Bonds, Series 2012

 

5.000% due 08/01/2023

      1,500         1,539  

Illinois State General Obligation Bonds, Series 2018

 

5.000% due 05/01/2035

      1,000         1,041  

Illinois State General Obligation Bonds, Series 2020

 

4.125% due 10/01/2036

      1,500         1,455  

Illinois State General Obligation Notes, Series 2017

 

5.000% due 11/01/2027

      1,000         1,079  
       

 

 

 
            15,932  
       

 

 

 
LOUISIANA 0.3%

 

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      725         679  
       

 

 

 
MICHIGAN 0.5%

 

Michigan Finance Authority Revenue Bonds,
Series 2020

 

0.000% due 06/01/2065 (b)

      11,360         1,040  
       

 

 

 
NEW YORK 3.3%

 

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2014

 

5.000% due 11/15/2039

      1,250         1,277  

New York Liberty Development Corp. Revenue Bonds, Series 2005

 

5.250% due 10/01/2035

      1,250         1,404  

Southwestern Community College District, California Revenue Bonds, Series 2021

 

4.000% due 08/01/2046

      4,850         4,679  
       

 

 

 
            7,360  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      720         418  
       

 

 

 
PENNSYLVANIA 1.0%

 

Berks County, Pennsylvania Industrial Development Authority Revenue Bonds, Series 2017

 

4.000% due 11/01/2050

      1,000         736  

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      1,275         1,462  
       

 

 

 
          2,198  
       

 

 

 
PUERTO RICO 7.7%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (b)

      24,300         1,292  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043 (b)

      3,447         1,719  

0.000% due 11/01/2051 (b)

      1,315         567  

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (b)

      1,055         594  

4.000% due 07/01/2033

      355         326  

4.000% due 07/01/2035

      319         287  

4.000% due 07/01/2037

      274         243  

4.000% due 07/01/2041

      372         323  

5.750% due 07/01/2031

      374         410  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (b)

      183         167  

5.625% due 07/01/2027

      392         417  
 

 

       
54   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022 (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2024 ^(a)

  $     1,570     $     867  

5.000% due 07/01/2030 ^(a)

      1,100         608  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2046 (b)

      14,685         3,968  

4.750% due 07/01/2053

      5,425         5,226  
       

 

 

 
            17,014  
       

 

 

 
TEXAS 0.5%

 

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

 

7.500% due 12/01/2045

      500         401  

12.000% due 12/01/2045

      850         768  
       

 

 

 
          1,169  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

  $     2,005     $     2,026  
       

 

 

 
VIRGINIA 0.7%

 

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (b)

        19,000         1,002  

5.500% due 07/01/2044

      500         490  
       

 

 

 
          1,492  
       

 

 

 

Total Municipal Bonds & Notes (Cost $408,536)

      404,710  
       

 

 

 
                  MARKET
VALUE
(000S)
 
SHORT-TERM INSTRUMENTS 0.5%

 

REPURCHASE AGREEMENTS (e) 0.5%

 

      $     1,023  
       

 

 

 
Total Short-Term Instruments
(Cost $1,023)
    1,023  
 

 

 

 
       
Total Investments in Securities
(Cost $409,559)
    405,733  
 
Total Investments 184.0%
(Cost $409,559)

 

  $     405,733  
       
Auction Rate Preferred Shares (58.4)%

 

      (128,675
Remarketable Variable Rate MuniFund Term Preferred Shares, at liquidation value (15.5)%     (34,249
Other Assets and Liabilities, net (10.1)%     (22,331
 

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $       220,478  
   

 

 

 
 

NOTES TO SCHEDULE OF INVESTMENTS:    

 

*

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

^

Security is in default.

(a)

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

(b)

Zero coupon security.

(c)

Security becomes interest bearing at a future date.

(d)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. See Note 5, Tender Option Bond Transactions, in the Notes to Financial Statements for more information.

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS

 

(e)  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     0.400     06/30/2022       07/01/2022     $     1,023     U.S. Treasury Notes 3.000% due 06/30/2024   $ (1,044   $ 1,023     $ 1,023  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

 

    $     (1,044   $     1,023     $     1,023  
   

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 1,023     $ 0     $ 0      $     1,023     $     (1,044   $     (21
 

 

 

   

 

 

   

 

 

        

Total Borrowings and Other Financing Transactions

  $     1,023     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

(1)

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     55
    


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund II   (Cont.)   June 30, 2022   (Unaudited)

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Arizona

  $     0     $ 1,025     $     0     $ 1,025  

California

    0           351,298       0           351,298  

Delaware

    0       3,059       0       3,059  

Illinois

    0       15,932       0       15,932  

Louisiana

    0       679       0       679  

Michigan

    0       1,040       0       1,040  

New York

    0       7,360       0       7,360  

North Dakota

    0       418       0       418  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Pennsylvania

  $ 0     $ 2,198     $ 0     $ 2,198  

Puerto Rico

    0       17,014       0       17,014  

Texas

    0       1,169       0       1,169  

U.S. Virgin Islands

    0       2,026       0       2,026  

Virginia

    0       1,492       0       1,492  

Short-Term Instruments

 

Repurchase Agreements

    0       1,023       0       1,023  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     405,733     $     0     $     405,733  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

       
56   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund III          June 30, 2022 (Unaudited)

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 181.1%

 

MUNICIPAL BONDS & NOTES 179.3%

 

ARIZONA 0.4%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

  $     730     $     796  
       

 

 

 
CALIFORNIA 156.4%

 

Bay Area Toll Authority, California Revenue Bonds, Series 2013

 

5.250% due 04/01/2048

      8,000         8,218  

California Community Housing Agency Revenue Bonds, Series 2019

 

5.000% due 04/01/2049

      3,700         3,384  

5.000% due 08/01/2049

      1,000         922  

California Community Housing Agency Revenue Bonds, Series 2022

 

4.500% due 08/01/2052

      1,000         886  

California County Tobacco Securitization Agency Revenue Bonds, Series 2002

 

5.875% due 06/01/2035

      3,935         3,987  

6.000% due 06/01/2042

      7,000         7,093  

California County Tobacco Securitization Agency Revenue Bonds, Series 2007

 

0.000% due 06/01/2057 (b)

      4,000         553  

California County Tobacco Securitization Agency Revenue Bonds, Series 2020

 

0.000% due 06/01/2055 (b)

      4,000         654  

California Educational Facilities Authority Revenue Bonds, Series 2017

 

5.000% due 04/01/2047

      700         741  

California Educational Facilities Authority Revenue Bonds, Series 2018

 

5.000% due 10/01/2043

      1,000         1,062  

California Enterprise Development Authority Revenue Bonds, Series 2020

 

5.000% due 08/01/2050

      600         604  

California Health Facilities Financing Authority Revenue Bonds, (CM Insured), Series 2020

 

4.000% due 11/01/2040

      1,020         1,008  

California Health Facilities Financing Authority Revenue Bonds, Series 2012

 

5.000% due 08/15/2051

      5,205         5,227  

California Health Facilities Financing Authority Revenue Bonds, Series 2015

 

5.000% due 08/15/2054

      3,000         3,109  

California Health Facilities Financing Authority Revenue Bonds, Series 2016

 

4.000% due 10/01/2047

      750         704  

5.000% due 11/15/2046 (d)

      5,000         5,340  

5.000% due 08/15/2055

      5,000         5,197  

California Health Facilities Financing Authority Revenue Bonds, Series 2017

 

4.000% due 11/01/2038

      1,220         1,214  

California Health Facilities Financing Authority Revenue Bonds, Series 2020

 

4.000% due 04/01/2049

      2,750         2,577  

4.000% due 06/01/2050

      3,250         2,999  

California Health Facilities Financing Authority Revenue Bonds, Series 2021

 

4.000% due 08/15/2048

      2,300         2,249  

California Infrastructure & Economic Development Bank Revenue Bonds, Series 2013

 

5.000% due 02/01/2039

      10,000         10,196  

California Infrastructure & Economic Development Bank Revenue Bonds, Series 2020

 

0.000% due 01/01/2060 (b)

      5,000         353  

4.000% due 11/01/2045

      850         788  

4.000% due 07/01/2050

      300         288  

California Municipal Finance Authority Revenue Bonds, Series 2018

 

5.000% due 06/01/2043

      1,165         1,255  

5.000% due 06/01/2048

      1,100         1,179  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

California Municipal Finance Authority Revenue Bonds, Series 2021

 

4.000% due 11/01/2036

  $     655     $     569  

4.000% due 02/01/2051

      1,500         1,356  

California Public Finance Authority Revenue Bonds, Series 2019

 

6.250% due 07/01/2054

      1,250         1,358  

California School Finance Authority Revenue Bonds, Series 2017

 

5.000% due 07/01/2047

      1,115         1,140  

California State General Obligation Bonds, Series 2013

 

5.000% due 11/01/2043

      5,000         5,164  

California State General Obligation Bonds, Series 2017

 

4.000% due 11/01/2047

      1,500         1,484  

California State General Obligation Bonds, Series 2018

 

5.000% due 10/01/2047

      2,000         2,108  

California State General Obligation Bonds, Series 2021

 

5.000% due 09/01/2041

      1,500         1,691  

California State General Obligation Bonds, Series 2022

 

4.000% due 04/01/2049

      1,750         1,724  

California State General Obligation Notes, Series 2019

 

5.000% due 04/01/2027

      1,615         1,811  

California State General Obligation Notes, Series 2021

 

5.000% due 10/01/2029

      2,000         2,319  

California State Public Works Board Revenue Bonds, Series 2013

 

5.000% due 03/01/2038

      2,500         2,541  

California State University Revenue Bonds, Series 2015

 

5.000% due 11/01/2047

      6,750         7,039  

California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series 2018

 

4.000% due 07/01/2047

      250         240  

California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series 2021

 

4.000% due 11/01/2051

      750         719  

California Statewide Communities Development Authority Revenue Bonds, Series 2014

 

5.500% due 12/01/2054

      3,600         3,643  

California Statewide Communities Development Authority Revenue Bonds, Series 2016

 

4.000% due 08/15/2051

      200         188  

5.000% due 06/01/2046

      1,000         1,010  

5.000% due 12/01/2046

      3,100         3,059  

California Statewide Communities Development Authority Revenue Bonds, Series 2018

 

4.000% due 03/01/2042

      2,500         2,405  

4.000% due 07/01/2048

      850         817  

4.000% due 12/01/2057

      2,000         1,840  

5.000% due 03/01/2048

      1,505         1,560  

Chaffey Joint Union High School District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2047 (d)

      4,500         4,349  

Chino Valley Unified School District, California General Obligation Bonds, Series 2022

 

0.000% due 08/01/2038 (b)

      1,300         657  

0.000% due 08/01/2039 (b)

      1,600         767  

0.000% due 08/01/2041 (b)

      1,935         835  

0.000% due 08/01/2046 (b)

      1,500         501  

Chino Valley Unified School District, California General Obligation Notes, Series 2022

 

0.000% due 08/01/2030 (b)

      1,135         854  

CMFA Special Finance Agency VII, California Revenue Bonds, Series 2021

 

3.000% due 08/01/2056

      1,500         1,085  

4.000% due 08/01/2047

      600         459  

CMFA Special Finance Agency, California Revenue Bonds, Series 2021

 

4.000% due 08/01/2045

      750         585  

CSCDA Community Improvement Authority, California Revenue Bonds, Series 2021

 

3.000% due 09/01/2056

      1,000         719  

3.000% due 12/01/2056

      800         578  

3.000% due 02/01/2057

      500         361  

3.100% due 07/01/2045

      1,000         761  

4.000% due 08/01/2056

      500         411  

4.000% due 10/01/2056

      750         572  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

CSCDA Community Improvement Authority, California Revenue Bonds, Series 2022

 

0.000% due 09/01/2062 (c)

  $     1,800     $     943  

Foothill-Eastern Transportation Corridor Agency, California Revenue Bonds, Series 2014

 

3.950% due 01/15/2053

      720         643  

Fremont Community Facilities District No. 1, California Special Tax Bonds, Series 2015

 

5.000% due 09/01/2045

      1,400         1,426  

Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series 2018

 

5.000% due 06/01/2030

      1,500         1,709  

Hartnell Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2042

      1,150         1,130  

Hastings Campus Housing Finance Authority, California Revenue Bonds, Series 2020

 

5.000% due 07/01/2061

      2,000         1,953  

Hayward Unified School District, California General Obligation Bonds, Series 2015

 

5.000% due 08/01/2038

      5,000         5,303  

Imperial Irrigation District Electric System, California Revenue Bonds, Series 2016

 

5.000% due 11/01/2041 (d)

      4,000         4,306  

Long Beach Bond Finance Authority, California Revenue Bonds, Series 2007

 

5.500% due 11/15/2030

      360         397  

Long Beach Community College District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2045

      450         439  

Long Beach Unified School District, California General Obligation Bonds, Series 2009

 

5.750% due 08/01/2033

      305         306  

Los Angeles California Department of Water & Power Water System Revenue Bonds, Series 2012

 

5.000% due 07/01/2037

      2,000         2,000  

Los Angeles Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2041 (d)

      2,900         2,894  

Los Angeles County, California Facilities, Inc., Revenue Bonds, Series 2018

 

4.000% due 12/01/2048

      2,000         1,921  

Los Angeles County, California Metropolitan Transportation Authority Revenue Bonds,
Series 2019

 

5.000% due 07/01/2044

      2,200         2,409  

Los Angeles County, California Metropolitan Transportation Authority Sales Tax Revenue Bonds, Series 2021

 

4.000% due 06/01/2037

      1,500         1,510  

Los Angeles County, California Sanitation Districts Financing Authority Revenue Bonds, Series 2016

 

4.000% due 10/01/2042

      1,185         1,142  

Los Angeles Department of Water & Power System, California Revenue Bonds, Series 2012

 

5.000% due 07/01/2043

      2,115         2,115  

Los Angeles Department of Water & Power System, California Revenue Bonds, Series 2014

 

5.000% due 07/01/2043

      1,000         1,033  

Los Angeles Department of Water & Power System, California Revenue Bonds, Series 2019

 

5.000% due 07/01/2049

      1,500         1,625  

Los Angeles Department of Water & Power, California Revenue Bonds, Series 2021

 

5.000% due 07/01/2041

      3,175         3,543  

M-S-R Energy Authority, California Revenue Bonds, Series 2009

 

6.500% due 11/01/2039

      9,825         12,146  

7.000% due 11/01/2034

      2,285         2,845  

Manteca Financing Authority, California Revenue Bonds, Series 2009

 

5.750% due 12/01/2036

      1,000         1,019  
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     57
    


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund III   (Cont.)  

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Monterey Peninsula Unified School District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2040

  $     2,545     $     2,523  

Mount San Antonio Community College District, California General Obligation Bonds, Series 2019

 

5.000% due 08/01/2044

      1,450         1,597  

Mount San Jacinto Community College District, California General Obligation Bonds, Series 2018

 

4.000% due 08/01/2043

      7,300         7,135  

Municipal Improvement Corp. of Los Angeles, California Revenue Bonds, Series 2021

 

5.000% due 11/01/2038

      1,790         2,023  

Newport Mesa Unified School District, California General Obligation Bonds, (NPFGC Insured),
Series 2007

 

0.000% due 08/01/2031 (b)

      1,485         1,095  

Northern California Energy Authority Revenue Bonds, Series 2018

 

4.000% due 07/01/2049

      2,000         2,034  

Oakland Redevelopment Agency Successor Agency, California Tax Allocation Bonds, (AGM Insured), Series 2015

 

5.000% due 09/01/2036

      800         854  

Orange County, California Local Transportation Authority Revenue Bonds, Series 2019

 

5.000% due 02/15/2041

      1,000         1,101  

Pacifica School District, California General Obligation Bonds, Series 2018

 

4.000% due 08/01/2048

      1,250         1,203  

Palomar Community College District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2046 (d)

      3,000         2,894  

Regents of the University of California Medical Center Pooled Revenue Bonds, Series 2013

 

5.000% due 05/15/2043

      5,000         5,119  

River Islands Public Financing Authority, California Special Tax Bonds, Series 2015

 

5.500% due 09/01/2045

      3,000         3,064  

Riverside, California Sewer Revenue Bonds,
Series 2018

 

4.000% due 08/01/2038

      2,000         2,006  

Riverside, California Water Revenue Bonds,
Series 2019

 

5.000% due 10/01/2048

      1,500         1,638  

Sacramento Area Flood Control Agency, California Special Assessment Bonds, Series 2016

 

5.000% due 10/01/2041 (d)

      2,200         2,365  

5.000% due 10/01/2047 (d)

      1,500         1,599  

Sacramento County, California Sanitation Districts Financing Authority Revenue Bonds, Series 2020

 

5.000% due 12/01/2050

      1,000         1,096  

Sacramento Municipal Utility District, California Revenue Bonds, Series 2013

 

5.000% due 08/15/2037

      3,000         3,100  

San Diego County, California Regional Airport Authority Revenue Bonds, Series 2013

 

5.000% due 07/01/2043

      1,325         1,369  

San Diego County, California Regional Airport Authority Revenue Bonds, Series 2021

 

4.000% due 07/01/2051

      550         528  

5.000% due 07/01/2051

      1,925         2,018  

San Diego Public Facilities Financing Authority Revenue Bonds, Series 2022

 

5.000% due 05/15/2047

      1,000         1,116  

San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series 2017

 

4.000% due 08/01/2042 (d)

      4,500         4,489  

San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2044

      2,160         2,148  

San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2017

 

5.000% due 05/01/2047

      2,125         2,218  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2019

 

5.000% due 05/01/2050

  $     4,100     $     4,321  

San Francisco, California City & County Certificates of Participation Bonds, Series 2015

 

4.000% due 09/01/2033

      1,500         1,512  

San Francisco, California City & County Redevelopment Agency Special Tax Bonds, Series 2013

 

5.000% due 08/01/2028

      1,505         1,507  

San Joaquin County Transportation Authority, California Revenue Bonds, Series 2017

 

4.000% due 03/01/2041 (d)

      1,800         1,778  

5.000% due 03/01/2041 (d)

      2,700         2,897  

San Jose Evergreen Community College District, California General Obligation Bonds, Series 2014

 

4.125% due 09/01/2043

      1,250         1,306  

San Jose Unified School District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2042

      1,000         985  

San Marcos Redevelopment Agency Successor Agency, California Tax Allocation Bonds, Series 2015

 

5.000% due 10/01/2034

      885         947  

San Mateo County, California Community College District General Obligation Bonds, (NPFGC Insured), Series 2006

 

0.000% due 09/01/2034 (b)

      2,530         1,653  

San Mateo County, California Community College District General Obligation Bonds, Series 2018

 

5.000% due 09/01/2045

      2,000         2,193  

San Mateo Foster City Public Financing Authority, California Revenue Bonds, Series 2019

 

4.000% due 08/01/2044

      1,290         1,255  

Santa Ana Unified School District, California General Obligation Bonds, Series 2019

 

4.000% due 08/01/2048

      1,250         1,193  

Santa Monica Community College District General Obligation Bonds, Series 2022

 

4.000% due 08/01/2045

      1,040         1,017  

Silicon Valley Tobacco Securitization Authority, California Revenue Bonds, Series 2007

 

0.000% due 06/01/2036 (b)

      1,000         454  

Tobacco Securitization Authority of Northern California Revenue Bonds, Series 2021

 

0.000% due 06/01/2060 (b)

      20,000         2,889  

4.000% due 06/01/2049

      200         201  

Tobacco Securitization Authority of Southern California Revenue Bonds, Series 2006

 

0.000% due 06/01/2046 (b)

      3,995         550  

Town of Hillsborough, California Certificates of Participation Bonds, Series 2006

 

0.750% due 06/01/2035

      2,800         2,800  

University of California Revenue Bonds, Series 2017

 

5.000% due 05/15/2042

      2,500         2,674  

University of California Revenue Bonds, Series 2018

 

4.000% due 05/15/2043

      1,050         1,039  

University of California Revenue Bonds, Series 2019

 

5.000% due 05/15/2049

      1,500         1,619  

Upland, California Certificates of Participation Bonds, Series 2017

 

4.000% due 01/01/2042

      2,250         2,071  

Val Verde Unified School District, California General Obligation Bonds, (AGM Insured), Series 2021

 

4.000% due 08/01/2046

      775         757  

Washington Township Health Care District, California General Obligation Bonds, Series 2013

 

5.000% due 08/01/2043

      2,500         2,560  
       

 

 

 
            282,333  
       

 

 

 
DELAWARE 1.4%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.167% due 10/01/2038

      2,380         2,066  

7.120% due 10/01/2038

      420         409  
       

 

 

 
          2,475  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
ILLINOIS 6.7%

 

Chicago, Illinois General Obligation Bonds, Series 2007

 

5.500% due 01/01/2035

  $     3,000     $     3,096  

Chicago, Illinois General Obligation Bonds, Series 2015

 

5.250% due 01/01/2028

      2,700         2,797  

5.500% due 01/01/2033

      2,500         2,584  

Illinois State General Obligation Bonds, Series 2012

 

5.000% due 08/01/2023

      1,400         1,436  

Illinois State General Obligation Bonds, Series 2017

 

5.000% due 12/01/2038

      1,000         1,034  

Illinois State General Obligation Notes, Series 2017

 

5.000% due 11/01/2027

      1,000         1,079  
       

 

 

 
            12,026  
       

 

 

 
LOUISIANA 0.1%

 

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      230         216  
       

 

 

 
MICHIGAN 0.5%

 

Michigan Finance Authority Revenue Bonds,
Series 2020

 

0.000% due 06/01/2065 (b)

      9,020         826  
       

 

 

 
NEW YORK 2.6%

 

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2014

 

5.000% due 11/15/2039

      1,050         1,072  

Southwestern Community College District, California Revenue Bonds, Series 2021

 

4.000% due 08/01/2046

      3,850         3,714  
       

 

 

 
          4,786  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      570         331  
       

 

 

 
PENNSYLVANIA 0.6%

 

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      1,005         1,153  
       

 

 

 
PUERTO RICO 7.8%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (b)

      18,000         968  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043 (b)

      2,729         1,361  

0.000% due 11/01/2051 (b)

      1,169         504  

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (b)

      820         462  

4.000% due 07/01/2033

      275         253  

4.000% due 07/01/2035

      247         222  

4.000% due 07/01/2037

      212         188  

4.000% due 07/01/2041

      289         251  

5.750% due 07/01/2031

      290         318  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (b)

      142         130  

5.625% due 07/01/2027

      304         324  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2003

 

5.000% due 07/01/2035 ^(a)

      1,790         989  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2030 ^(a)

      860         475  
 

 

       
58   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022 (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2046 (b)

  $     4,795     $     1,295  

0.000% due 07/01/2051 (b)

      10,680         2,137  

4.750% due 07/01/2053

      4,280         4,123  
       

 

 

 
            14,000  
       

 

 

 
TEXAS 0.5%

 

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

 

7.500% due 12/01/2045

      390         313  

12.000% due 12/01/2045

      650         587  
       

 

 

 
          900  
       

 

 

 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

      1,615         1,632  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
VIRGINIA 0.7%

 

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (b)

  $     15,000     $     791  

5.500% due 07/01/2044

      500         490  
       

 

 

 
          1,281  
       

 

 

 
WISCONSIN 0.5%

 

Wisconsin Center District Revenue Bonds, (AGM Insured), Series 2020

 

0.000% due 12/15/2060 (b)

      5,500         849  
       

 

 

 

Total Municipal Bonds & Notes
(Cost $331,382)

      323,604  
 

 

 

 
                  MARKET
VALUE
(000S)
 
SHORT-TERM INSTRUMENTS 1.8%

 

REPURCHASE AGREEMENTS (e) 1.8%

 

      $     3,333  
       

 

 

 
Total Short-Term Instruments
(Cost $3,333)
    3,333  
 

 

 

 
       
Total Investments in Securities
(Cost $334,715)
    326,937  
       
Total Investments 181.1%
(Cost $334,715)

 

  $     326,937  
Auction Rate Preferred Shares (54.2)%     (97,875
Variable Rate MuniFund Term Preferred Shares, at liquidation value (15.0)%     (27,054
Other Assets and Liabilities, net (11.9)%       (21,452
 

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $       180,556  
   

 

 

 
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

*

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

^

Security is in default.

(a)

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

(b)

Zero coupon security.

(c)

Security becomes interest bearing at a future date.

(d)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. See Note 5, Tender Option Bond Transactions, in the Notes to Financial Statements for more information.

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS

 

(e)  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     0.400     06/30/2022       07/01/2022     $     3,333     U.S. Treasury Notes 3.000% due 06/30/2024   $ (3,400   $ 3,333     $ 3,333  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

 

    $     (3,400   $     3,333     $     3,333  
           

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 3,333     $ 0     $ 0      $     3,333     $     (3,400   $     (67
 

 

 

   

 

 

   

 

 

    

 

 

     

Total Borrowings and Other Financing Transactions

  $     3,333     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

(1)

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     59
    


Table of Contents
Schedule of Investments   PIMCO California Municipal Income Fund III   (Cont.)   June 30, 2022 (Unaudited)

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3    

Fair

Value at
06/30/2022

 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Arizona

  $     0     $ 796     $     0     $ 796  

California

    0           282,333       0           282,333  

Delaware

    0       2,475       0       2,475  

Illinois

    0       12,026       0       12,026  

Louisiana

    0       216       0       216  

Michigan

    0       826       0       826  

New York

    0       4,786       0       4,786  

North Dakota

    0       331       0       331  
Category and Subcategory   Level 1     Level 2     Level 3    

Fair

Value at
06/30/2022

 

Pennsylvania

  $ 0     $ 1,153     $ 0     $ 1,153  

Puerto Rico

    0       14,000       0           14,000  

Texas

    0       900       0       900  

U.S. Virgin Islands

    0       1,632       0       1,632  

Virginia

    0       1,281       0       1,281  

Wisconsin

    0       849       0       849  

Short-Term Instruments

 

Repurchase Agreements

    0       3,333       0       3,333  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     326,937     $     0     $ 326,937  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

       
60   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
Schedule of Investments   PIMCO New York Municipal Income Fund          June 30, 2022   (Unaudited)

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 177.9%

 

MUNICIPAL BONDS & NOTES 176.2%

 

ARIZONA 0.5%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

  $     300     $     327  
       

 

 

 
CALIFORNIA 2.2%

 

California Health Facilities Financing Authority Revenue Bonds, Series 2016

 

5.000% due 11/15/2046 (d)

        1,500         1,602  
       

 

 

 
          1,602  
       

 

 

 
DELAWARE 1.4%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.167% due 10/01/2038

      980         851  

7.120% due 10/01/2038

      175         170  
       

 

 

 
          1,021  
       

 

 

 
ILLINOIS 4.1%

 

Chicago, Illinois General Obligation Bonds, Series 2007

 

5.500% due 01/01/2042

      885         911  

Chicago, Illinois General Obligation Bonds, Series 2017

 

6.000% due 01/01/2038

      1,000         1,074  

Illinois State General Obligation Notes, Series 2017

 

5.000% due 11/01/2025

      1,000         1,059  
       

 

 

 
            3,044  
       

 

 

 
LOUISIANA 0.3%

 

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      250         234  
       

 

 

 
MICHIGAN 0.5%

 

Michigan Finance Authority Revenue Bonds, Series 2020

 

0.000% due 06/01/2065 (c)

      3,630         333  
       

 

 

 
NEW YORK 155.0%

 

Brookhaven Local Development Corp., New York Revenue Bonds, Series 2020

 

4.000% due 11/01/2055

      600         546  

Broome County, New York Local Development Corp. Revenue Bonds, (AGM Insured), Series 2020

 

4.000% due 04/01/2050

      750         690  

Build NYC Resource Corp., New York Revenue Bonds, Series 2017

 

5.000% due 11/01/2047 (d)

      1,000         1,150  

Build NYC Resource Corp., New York Revenue Bonds, Series 2018

 

5.625% due 12/01/2050

      1,225         1,222  

Dutchess County Local Development Corp Revenue Bonds, Series 2022

 

4.000% due 07/01/2049

      765         721  

Housing Development Corp., New York Revenue Bonds, Series 2017

 

3.700% due 11/01/2047

      1,000         895  

Huntington Local Development Corp., New York Revenue Bonds, Series 2021

 

5.250% due 07/01/2056

      500         454  

Long Island Power Authority, New York Revenue Bonds, Series 2020

 

4.000% due 09/01/2039

      500         498  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2012

 

5.000% due 11/15/2042

      2,000           2,022  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2014

 

5.000% due 11/15/2039

  $     1,000     $     1,021  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2016

 

5.000% due 11/15/2031 (d)

      6,500         6,844  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2017

 

4.000% due 11/15/2035

      1,000         954  

4.000% due 11/15/2042

      1,000         915  

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

 

4.000% due 12/01/2046

      825         716  

Nassau County, New York General Obligation Bonds, (AGM Insured), Series 2018

 

5.000% due 04/01/2036

        2,000           2,183  

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 2021

 

5.000% due 01/01/2058

      1,092         764  

Nassau County, New York Tobacco Settlement Corp. Revenue Bonds, Series 2006

 

5.125% due 06/01/2046

      1,230         1,148  

New York City Industrial Development Agency, New York Revenue Bonds, Series 2020

 

4.000% due 03/01/2045

      1,800         1,652  

New York City Transitional Finance Authority Building Aid, New York Revenue Bonds, Series 2018

 

5.250% due 07/15/2036

      1,000         1,104  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2019

 

4.000% due 05/01/2044

      2,500         2,443  

5.000% due 11/01/2043

      1,030         1,112  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2021

 

4.000% due 02/01/2049

      3,000         2,899  

New York City Water & Sewer System, New York Revenue Bonds, Series 2003

 

0.880% due 06/15/2035

      4,750           4,750  

New York City Water & Sewer System, New York Revenue Bonds, Series 2019

 

5.000% due 06/15/2049 (d)

      9,000         9,682  

5.000% due 06/15/2049

      2,000         2,159  

New York City Water & Sewer System, New York Revenue Bonds, Series 2020

 

5.000% due 06/15/2050

      1,000         1,088  

New York City, General Obligation Bonds, Series 2013

 

5.000% due 08/01/2031

      2,000         2,066  

New York City, General Obligation Bonds, Series 2018

 

5.000% due 04/01/2043

      1,500         1,595  

New York City, General Obligation Bonds, Series 2019

 

5.000% due 08/01/2039

      1,000         1,093  

New York City, New York General Obligation Bonds, Series 2010

 

0.900% due 03/01/2039

      855         855  

New York City, New York General Obligation Bonds, Series 2016

 

0.840% due 08/01/2044

      1,000         1,000  

New York City, New York General Obligation Bonds, Series 2018

 

5.000% due 04/01/2045 (d)

      2,700         2,866  

New York City, New York Water & Sewer System Revenue Bonds, Series 2007

 

0.900% due 06/15/2036

      1,000         1,000  

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

 

0.000% due 06/01/2050 (c)

      20,000         3,926  

0.000% due 06/01/2055 (c)

      7,000         461  

New York Liberty Development Corp. Revenue Bonds, Series 2005

 

5.250% due 10/01/2035 (d)

      4,410         4,955  

New York Liberty Development Corp. Revenue Bonds, Series 2014

 

5.000% due 11/15/2044

      1,900         1,855  

New York Power Authority Revenue Bonds, Series 2020

 

4.000% due 11/15/2055

      1,500         1,426  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

New York State Dormitory Authority Memorial Sloan-Kettering Cancer Revenue Bonds, Series 2022

 

4.000% due 07/01/2051

  $       1,200     $       1,155  

New York State Dormitory Authority Northwell Health Obligated Group Revenue Bonds, Series 2022

 

5.000% due 05/01/2052

      750         778  

New York State Dormitory Authority Revenue Bonds, Series 2013

 

5.000% due 02/15/2029

      1,000         1,022  

New York State Dormitory Authority Revenue Bonds, Series 2017

 

4.000% due 02/15/2047 (d)

      1,000         957  

5.000% due 12/01/2031

      500         526  

New York State Dormitory Authority Revenue Bonds, Series 2018

 

4.000% due 03/15/2043

      1,000         979  

5.000% due 03/15/2037

      3,000         3,253  

New York State Dormitory Authority Revenue Bonds, Series 2019

 

5.000% due 03/15/2041

      2,000         2,137  

New York State Dormitory Authority Revenue Bonds, Series 2020

 

4.000% due 07/01/2050

      3,000         2,798  

New York State Dormitory Authority Revenue Bonds, Series 2021

 

4.000% due 03/15/2042

      1,000         980  

New York State Dormitory Authority Revenue Bonds, Series 2022

 

4.000% due 07/01/2049 (a)

      345         319  

5.000% due 07/15/2050 (a)

      345         348  

New York State Environmental Facilities Corp. Revenue Bonds, Series 2022

 

4.000% due 06/15/2047

      1,750           1,718  

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

 

4.200% due 11/01/2054 (e)

      2,000         1,912  

New York State Housing Finance Agency Revenue Bonds, Series 2010

 

0.890% due 05/01/2044

      2,000         2,000  

New York State Urban Development Corp. Revenue Bonds, Series 2019

 

5.000% due 03/15/2041

      500         542  

New York State Urban Development Corp. Revenue Bonds, Series 2020

 

5.000% due 03/15/2047

      1,500         1,619  

New York State Urban Development Corp. Revenue Bonds, Series 2021

 

4.000% due 03/15/2047 (d)

      1,000         956  

New York Transportation Development Corp. Revenue Bonds, Series 2022

 

4.000% due 12/01/2042

      1,670         1,524  

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

 

4.000% due 12/01/2049

      1,300         1,205  

5.000% due 12/01/2040

      350         379  

Port Authority of New York & New Jersey Revenue Bonds, Series 2016

 

5.250% due 11/15/2056

      4,500         4,796  

Port Authority of New York & New Jersey Revenue Bonds, Series 2020

 

4.000% due 07/15/2060

      350         315  

Schenectady County Capital Resource Corp. Union College Project Revenue Bonds Series 2022

 

5.000% due 07/01/2032

      340         386  

Suffolk County, New York Economic Development Corp. Revenue Bonds, Series 2021

 

5.125% due 11/01/2041

      350         303  

The Genesee County Funding Corporation Tax-Exempt Revenue Bonds, Series 2022

 

5.250% due 12/01/2052

      1,000         1,034  

Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series 2018

 

4.000% due 11/15/2048

      1,000         967  
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     61
    


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

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

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

 

5.000% due 11/15/2041

  $     840     $     916  

5.000% due 11/15/2043

      500         543  

Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series 2021

 

5.000% due 05/15/2051

        1,000         1,090  

Troy Capital Resource Corp., New York Revenue Bonds, Series 2020

 

5.000% due 09/01/2034

      1,200         1,292  

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

 

5.000% due 06/01/2041

      2,000         2,065  

Ulster County, New York Capital Resource Corp. Revenue Bonds, Series 2017

 

5.250% due 09/15/2047

      500         383  
       

 

 

 
            113,927  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      230         133  
       

 

 

 
PENNSYLVANIA 0.7%

 

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      425         488  
       

 

 

 
PUERTO RICO 8.1%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (c)

      7,700         410  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043

      1,121         559  

0.000% due 11/01/2051

      511         221  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (c)

  $     341     $     192  

4.000% due 07/01/2033

      113         104  

4.000% due 07/01/2035

      102         91  

4.000% due 07/01/2037

      87         78  

4.000% due 07/01/2041

      119         103  

5.750% due 07/01/2031

      119         131  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (c)

      58         53  

5.625% due 07/01/2027

      125         133  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2003

 

5.000% due 07/01/2042 ^(b)

      1,000         552  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2030 ^(b)

      355         196  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2046 (c)

      1,845         498  

4.750% due 07/01/2053

      2,760         2,659  
       

 

 

 
            5,980  
       

 

 

 
TEXAS 0.5%

 

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

 

7.500% due 12/01/2045

      160         129  

12.000% due 12/01/2045

      275         248  
       

 

 

 
          377  
       

 

 

 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

      665         672  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
VIRGINIA 1.1%

 

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (c)

  $     6,000     $     317  

5.500% due 07/01/2044

      500         490  
       

 

 

 
          807  
       

 

 

 
WISCONSIN 0.7%

 

Wisconsin Center District Revenue Bonds, (AGM Insured), Series 2020

 

0.000% due 12/15/2060 (c)

      3,500         540  
       

 

 

 

Total Municipal Bonds & Notes (Cost $135,550)

      129,485  
 

 

 

 
SHORT-TERM INSTRUMENTS 1.7%

 

REPURCHASE AGREEMENTS (f) 1.7%

 

          1,275  
       

 

 

 
Total Short-Term Instruments
(Cost $1,275)

 

      1,275  
       

 

 

 
       
Total Investments in Securities
(Cost $136,825)

 

      130,760  
       
Total Investments 177.9%
(Cost $136,825)

 

  $     130,760  
       

Auction Rate Preferred Shares (55.8)%

 

        (41,025
       
Other Assets and Liabilities, net (22.1)%

 

      (16,233
       

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $     73,502  
       

 

 

 
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

*

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

^

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)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. See Note 5, Tender Option Bond Transactions, in the Notes to Financial Statements for more information.

 

(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       $    2,271     $     1,912       2.60%  
        

 

 

   

 

 

   

 

 

 

 

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     0.400     06/30/2022       07/01/2022     $     1,275     U.S. Treasury Notes 3.000% due 06/30/2024   $ (1,301   $ 1,275     $ 1,275  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

 

    $     (1,301   $     1,275     $     1,275  
   

 

 

   

 

 

   

 

 

 

 

       
62   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      June 30, 2022   (Unaudited)

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 1,275     $ 0     $ 0      $     1,275     $     (1,301   $     (26
 

 

 

   

 

 

   

 

 

        

Total Borrowings and Other Financing Transactions

  $     1,275     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

(1)

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Arizona

  $     0     $ 327     $     0     $ 327  

California

    0       1,602       0       1,602  

Delaware

    0       1,021       0       1,021  

Illinois

    0       3,044       0       3,044  

Louisiana

    0       234       0       234  

Michigan

    0       333       0       333  

New York

    0           113,927       0           113,927  

North Dakota

    0       133       0       133  

Pennsylvania

    0       488       0       488  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Puerto Rico

  $ 0     $ 5,980     $ 0     $ 5,980  

Texas

    0       377       0       377  

U.S. Virgin Islands

    0       672       0       672  

Virginia

    0       807       0       807  

Wisconsin

    0       540       0       540  

Short-Term Instruments

 

Repurchase Agreements

    0       1,275       0       1,275  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     130,760     $     0     $     130,760  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     63
    


Table of Contents
Schedule of Investments   PIMCO New York Municipal Income Fund II           

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 186.7%

 

MUNICIPAL BONDS & NOTES 180.1%

 

ARIZONA 0.4%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

  $     400     $     436  
       

 

 

 
DELAWARE 1.4%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.167% due 10/01/2038

      1,330         1,154  

7.120% due 10/01/2038

      235         229  
       

 

 

 
          1,383  
       

 

 

 
ILLINOIS 3.2%

 

Chicago, Illinois General Obligation Bonds, Series 2017

 

6.000% due 01/01/2038

      2,000         2,149  

Illinois State General Obligation Notes, Series 2017

 

5.000% due 11/01/2025

        1,000         1,059  
       

 

 

 
            3,208  
       

 

 

 
LOUISIANA 0.3%

 

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      300         281  
       

 

 

 
MICHIGAN 0.5%

 

Michigan Finance Authority Revenue Bonds, Series 2020

 

0.000% due 06/01/2065 (c)

      4,985         457  
       

 

 

 
NEW YORK 163.5%

 

Brookhaven Local Development Corp., New York Revenue Bonds, Series 2020

 

4.000% due 11/01/2055

      800         729  

Build NYC Resource Corp., New York Revenue Bonds, Series 2017

 

5.000% due 11/01/2047 (d)

      2,000         2,300  

Build NYC Resource Corp., New York Revenue Bonds, Series 2018

 

5.625% due 12/01/2050

      1,800         1,796  

Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2015

 

5.000% due 07/01/2045

      3,000         3,082  

Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2016

 

4.000% due 07/01/2041

      3,200         2,932  

Housing Development Corp., New York Revenue Bonds, Series 2017

 

3.700% due 11/01/2047

      1,000         895  

Huntington Local Development Corp., New York Revenue Bonds, Series 2021

 

5.250% due 07/01/2056

      700         635  

Long Island Power Authority, New York Revenue Bonds, Series 2014

 

5.000% due 09/01/2044

      3,500         3,627  

Metropolitan Transportation Authority, New York Revenue Bonds, (AGM Insured), Series 2019

 

4.000% due 11/15/2046

      3,000         2,783  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2005

 

0.900% due 11/01/2035

      2,000         2,000  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2014

 

5.000% due 11/15/2039

      1,500         1,532  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2016

 

5.250% due 11/15/2056

      1,200         1,236  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2017

 

4.000% due 11/15/2035

  $     3,500     $     3,338  

Monroe County Industrial Development Corp., New York Revenue Bonds, Series 2013

 

5.000% due 07/01/2043

      1,750         1,807  

Monroe County Industrial Development Corp., New York Revenue Bonds, Series 2017

 

4.000% due 12/01/2041

      1,400         1,276  

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

 

4.000% due 12/01/2046

      1,140         989  

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 1999

 

0.620% due 01/01/2034

        4,175           4,175  

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 2021

 

5.000% due 01/01/2058

      1,638         1,147  

Nassau County, New York Tobacco Settlement Corp. Revenue Bonds, Series 2006

 

5.125% due 06/01/2046

      4,000         3,733  

New York City Housing Development Corp. Revenue Bonds, Series 2013

 

5.250% due 07/01/2031

      1,250         1,294  

New York City Industrial Development Agency, New York Revenue Bonds, Series 2020

 

4.000% due 03/01/2045

      2,400         2,202  

New York City Transitional Finance Authority Building Aid, New York Revenue Bonds, Series 2016

 

4.000% due 07/15/2040

      1,000         974  

New York City Transitional Finance Authority Building Aid, New York Revenue Bonds, Series 2018

 

5.250% due 07/15/2036

      2,000         2,208  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2017

 

4.000% due 02/01/2044

        2,000           1,955  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2018

 

4.000% due 08/01/2041

      685         679  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2019

 

4.000% due 05/01/2044

      1,500         1,466  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2020

 

4.000% due 05/01/2047

      1,550         1,503  

New York City Water & Sewer System, New York Revenue Bonds, Series 2018

 

5.000% due 06/15/2040

      2,300         2,484  

New York City Water & Sewer System, New York Revenue Bonds, Series 2019

 

5.000% due 06/15/2049 (d)

      3,000         3,227  

5.000% due 06/15/2049

      2,645         2,856  

New York City Water & Sewer System, New York Revenue Bonds, Series 2020

 

5.000% due 06/15/2050

      1,500         1,632  

New York City, General Obligation Bonds, Series 2013

 

5.000% due 08/01/2031

      2,000         2,066  

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

 

4.000% due 11/15/2045

      230         221  

5.000% due 11/15/2045

      1,000         1,037  

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

 

0.000% due 06/01/2050 (c)

      30,000         5,889  

0.000% due 06/01/2055 (c)

      9,000         592  

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

 

5.000% due 06/01/2036

      1,000         1,035  

5.000% due 06/01/2041

      1,000         1,030  

New York Liberty Development Corp. Revenue Bonds, Series 2005

 

5.250% due 10/01/2035 (d)

      7,250         8,146  

New York Liberty Development Corp. Revenue Bonds, Series 2014

 

5.000% due 11/15/2044

      4,000         3,905  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

New York Power Authority Revenue Bonds, Series 2020

 

4.000% due 11/15/2055

  $     2,135     $     2,030  

New York State Dormitory Authority Memorial Sloan-Kettering Cancer Revenue Bonds, Series 2022

 

4.000% due 07/01/2051

      1,500         1,443  

New York State Dormitory Authority Northwell Health Obligated Group Revenue Bonds, Series 2022

 

5.000% due 05/01/2052

      1,000         1,038  

New York State Dormitory Authority Revenue Bonds, (AMBAC Insured), Series 2005

 

5.500% due 05/15/2031

        7,490           8,972  

New York State Dormitory Authority Revenue Bonds, Series 2017

 

4.000% due 02/15/2047 (d)

      1,500         1,436  

5.000% due 12/01/2030

      1,000         1,057  

5.000% due 12/01/2033

      800         834  

New York State Dormitory Authority Revenue Bonds, Series 2018

 

4.000% due 08/01/2037

      2,750         2,525  

4.000% due 03/15/2043

      2,000         1,958  

5.000% due 03/15/2044

      2,625         2,811  

New York State Dormitory Authority Revenue Bonds, Series 2019

 

5.000% due 03/15/2041

      1,000         1,069  

5.000% due 07/01/2042

      1,000         1,089  

5.000% due 03/15/2047

      2,000         2,119  

New York State Dormitory Authority Revenue Bonds, Series 2020

 

4.000% due 02/15/2040

      1,500         1,474  

4.000% due 07/01/2050

      3,500         3,251  

New York State Dormitory Authority Revenue Bonds, Series 2022

 

4.000% due 07/01/2049 (a)

      465         430  

5.000% due 07/15/2050 (a)

      465         469  

New York State Environmental Facilities Corp. Revenue Bonds, Series 2022

 

4.000% due 06/15/2047

      2,250         2,209  

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

 

4.200% due 11/01/2054 (e)

      2,600         2,485  

New York State Thruway Authority Revenue Bonds, Series 2016

 

5.250% due 01/01/2056

      1,480         1,567  

New York State Thruway Authority Revenue Bonds, Series 2018

 

4.000% due 01/01/2036

      1,000         997  

New York State Thruway Authority Revenue Bonds, Series 2019

 

4.000% due 01/01/2050

      1,775         1,658  

New York State Urban Development Corp. Revenue Bonds, Series 2019

 

5.000% due 03/15/2041

      2,500         2,708  

New York State Urban Development Corp. Revenue Bonds, Series 2020

 

4.000% due 03/15/2049

      2,000         1,923  

New York State Urban Development Corp. Revenue Bonds, Series 2021

 

4.000% due 03/15/2047 (d)

      1,250         1,195  

New York Transportation Development Corp. Revenue Bonds, Series 2022

 

4.000% due 12/01/2042

        2,290           2,090  

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

 

5.250% due 05/15/2034

      500         515  

5.250% due 05/15/2040

      500         513  

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

 

5.000% due 12/01/2040

      1,450         1,569  

5.000% due 12/01/2043

      1,000         1,076  

Port Authority of New York & New Jersey Revenue Bonds, Series 2016

 

5.250% due 11/15/2056

      2,700         2,877  

Port Authority of New York & New Jersey Revenue Bonds, Series 2017

 

5.250% due 11/15/2057

      5,400         5,836  
 

 

       
64   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
      JUNE 30, 2022   (Unaudited)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Port Authority of New York & New Jersey Revenue Bonds, Series 2020

 

4.000% due 07/15/2060

  $     400     $     360  

Schenectady County Capital Resource Corp. Union College Project Revenue Bonds Series 2022

 

5.000% due 07/01/2032

      470         534  

Suffolk County, New York Economic Development Corp. Revenue Bonds, Series 2021

 

5.125% due 11/01/2041

      475         411  

Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series 2018

 

4.000% due 11/15/2048

      2,800         2,706  

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

 

5.000% due 11/15/2041

      1,000         1,091  

5.000% due 11/15/2043

      750         815  

Troy Capital Resource Corp., New York Revenue Bonds, Series 2020

 

5.000% due 09/01/2034

      1,800         1,938  

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

 

5.000% due 06/01/2035

        3,000         3,118  

5.000% due 06/01/2041

      500         516  

Ulster County, New York Capital Resource Corp. Revenue Bonds, Series 2017

 

5.250% due 09/15/2047

      1,000         766  

Westchester County, New York Local Development Corp. Revenue Bonds, Series 2014

 

5.500% due 05/01/2042

      1,000         1,021  
       

 

 

 
            162,912  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      320         186  
       

 

 

 
PENNSYLVANIA 0.6%

 

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      560         642  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
PUERTO RICO 7.7%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (c)

  $       10,200     $     547  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043

      1,517         756  

0.000% due 11/01/2051

      679         293  

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (c)

      460         259  

4.000% due 07/01/2033

      153         140  

4.000% due 07/01/2035

      137         123  

4.000% due 07/01/2037

      118         105  

4.000% due 07/01/2041

      160         139  

5.750% due 07/01/2031

      161         176  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (c)

      79         72  

5.625% due 07/01/2027

      169         180  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2030 ^(b)

      490         271  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2046 (c)

      2,830         765  

4.750% due 07/01/2053

      3,385         3,261  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2019

 

4.784% due 07/01/2058

      565         541  
       

 

 

 
            7,628  
       

 

 

 
TEXAS 0.5%

 

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

 

7.500% due 12/01/2045

      220         177  

12.000% due 12/01/2045

      400         361  
       

 

 

 
          538  
       

 

 

 
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

  $     905     $     914  
       

 

 

 
VIRGINIA 0.9%

 

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (c)

        8,000         422  

5.500% due 07/01/2044

      500         490  
       

 

 

 
          912  
       

 

 

 

Total Municipal Bonds & Notes
(Cost $184,065)

      179,497  
 

 

 

 
SHORT-TERM INSTRUMENTS 6.6%

 

REPURCHASE AGREEMENTS (f) 6.6%

 

          6,547  
       

 

 

 
Total Short-Term Instruments
(Cost $6,547)
    6,547  
 

 

 

 
       
Total Investments in Securities
(Cost $190,612)
    186,044  
       
 
Total Investments 186.7%
(Cost $190,612)

 

  $     186,044  
Auction Rate Preferred Shares (58.2)%

 

        (58,000
Remarketable Variable Rate Muni Fund Term Preferred Shares, at liquidation value (21.0)%     (20,959
Other Assets and Liabilities, net (7.5)%     (7,430
 

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $     99,655  
   

 

 

 
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

*

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

^

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)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. See Note 5, Tender Option Bond Transactions, in the Notes to Financial Statements for more information.

 

(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     $     2,952     $     2,485       2.49%  
        

 

 

   

 

 

   

 

 

 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     65
    


Table of Contents
Schedule of Investments   PIMCO New York Municipal Income Fund II   (Cont.)   June 30, 2022   (Unaudited)

 

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     0.400     06/30/2022       07/01/2022     $     6,547     U.S. Treasury Notes 3.000% due 06/30/2024   $ (6,678   $ 6,547     $ 6,547  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

 

    $     (6,678   $     6,547     $     6,547  
   

 

 

   

 

 

   

 

 

 

 

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 6,547     $ 0     $ 0      $     6,547     $     (6,678   $     (131
 

 

 

   

 

 

   

 

 

        

Total Borrowings and Other Financing Transactions

  $     6,547     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

(1)

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Arizona

  $     0     $ 436     $ 0     $ 436  

Delaware

    0       1,383       0       1,383  

Illinois

    0       3,208       0       3,208  

Louisiana

    0       281       0       281  

Michigan

    0       457       0       457  

New York

    0           162,912           0           162,912  

North Dakota

    0       186       0       186  

Pennsylvania

    0       642       0       642  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Puerto Rico

  $ 0     $ 7,628     $ 0     $ 7,628  

Texas

    0       538       0       538  

U.S. Virgin Islands

    0       914       0       914  

Virginia

    0       912       0       912  

Short-Term Instruments

 

Repurchase Agreements

    0       6,547       0       6,547  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     186,044     $     0     $     186,044  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

       
66   PIMCO CLOSED-END FUNDS      See Accompanying Notes  


Table of Contents
Schedule of Investments   PIMCO New York Municipal Income Fund III          June 30, 2022   (Unaudited)

 

(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
INVESTMENTS IN SECURITIES 176.5%

 

MUNICIPAL BONDS & NOTES 174.6%

 

ARIZONA 0.4%

 

Arizona Industrial Development Authority Revenue Bonds, Series 2020

 

7.750% due 07/01/2050

  $     150     $     163  
       

 

 

 
DELAWARE 1.4%

 

Affordable Housing Opportunities Trust, Delaware Revenue Bonds, Series 2022

 

3.167% due 10/01/2038

      550         477  

7.120% due 10/01/2038

      95         93  
       

 

 

 
          570  
       

 

 

 
ILLINOIS 5.8%

 

Chicago, Illinois General Obligation Bonds, Series 2015

 

5.250% due 01/01/2028

      1,900         1,968  

Illinois State General Obligation Bonds, Series 2012

 

5.000% due 08/01/2023

      400         410  
       

 

 

 
            2,378  
       

 

 

 
LOUISIANA 0.3%

 

Parish of St John the Baptist, Louisiana Revenue Bonds, Series 2017

 

2.375% due 06/01/2037

      130         122  
       

 

 

 
MICHIGAN 0.5%

 

Michigan Finance Authority Revenue Bonds, Series 2020

 

0.000% due 06/01/2065 (c)

      2,035         186  
       

 

 

 
NEW YORK 152.6%

 

Brookhaven Local Development Corp., New York Revenue Bonds, Series 2020

 

4.000% due 11/01/2055

      400         364  

Broome County, New York Local Development Corp. Revenue Bonds, (AGM Insured), Series 2020

 

4.000% due 04/01/2050

      250         230  

Build NYC Resource Corp., New York Revenue Bonds, Series 2018

 

5.625% due 12/01/2050

      125         125  

Dutchess County Local Development Corp Revenue Bonds, Series 2022

 

4.000% due 07/01/2049

      435         410  

Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2016

 

5.000% due 07/01/2046

      750         766  

Housing Development Corp., New York Revenue Bonds, Series 2017

 

3.700% due 11/01/2047

      500         448  

Huntington Local Development Corp., New York Revenue Bonds, Series 2021

 

5.250% due 07/01/2056

      300         272  

Long Island Power Authority, New York Revenue Bonds, Series 2020

 

4.000% due 09/01/2039

      500         498  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2013

 

5.000% due 11/15/2042

      2,000         2,017  

Metropolitan Transportation Authority, New York Revenue Bonds, Series 2014

 

5.000% due 11/15/2039

      2,000         2,042  

Monroe County Industrial Development Corp., New York Revenue Bonds, Series 2013

 

5.000% due 07/01/2043

      1,750         1,807  

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

 

4.000% due 12/01/2046

      465         404  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Nassau County, New York Industrial Development Agency Revenue Bonds, Series 2021

 

5.000% due 01/01/2058

  $     341     $     239  

New York City Housing Development Corp. Revenue Bonds, Series 2013

 

5.250% due 07/01/2031

      500         518  

New York City Industrial Development Agency, New York Revenue Bonds, (AGM Insured), Series 2021

 

4.000% due 01/01/2032

      1,000         1,027  

New York City Industrial Development Agency, New York Revenue Bonds, Series 2020

 

4.000% due 03/01/2045

      1,000         917  

New York City Transitional Finance Authority Building Aid, New York Revenue Bonds, Series 2018

 

5.250% due 07/15/2036

      1,000         1,104  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2013

 

5.000% due 11/01/2042

      2,000         2,034  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2015

 

0.650% due 02/01/2045

      500         500  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2020

 

4.000% due 05/01/2047

      500         485  

New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2021

 

4.000% due 02/01/2049

        1,200           1,159  

New York City Trust for Cultural Resources, New York Revenue Bonds, Series 2014

 

5.000% due 08/01/2043

      2,000         2,070  

New York City Water & Sewer System, New York Revenue Bonds, Series 2012

 

0.900% due 06/15/2046

      650         650  

5.000% due 06/15/2047

      2,500         2,517  

New York City Water & Sewer System, New York Revenue Bonds, Series 2020

 

5.000% due 06/15/2050

      250         272  

New York City, General Obligation Bonds, Series 2013

 

5.000% due 08/01/2031

      2,590         2,676  

New York City, General Obligation Bonds, Series 2017

 

0.620% due 10/01/2046

      400         400  

New York City, New York General Obligation Bonds, Series 2018

 

5.000% due 04/01/2045 (d)

      2,000         2,123  

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

 

5.000% due 11/15/2045

      500         519  

New York County, New York Tobacco Trust Revenue Bonds, Series 2001

 

5.750% due 06/01/2043

      330         336  

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

 

0.000% due 06/01/2050 (c)

      10,000         1,963  

0.000% due 06/01/2055 (c)

      7,500         494  

5.000% due 06/01/2042

      3,200         3,134  

New York Liberty Development Corp. Revenue Bonds, Series 2005

 

5.250% due 10/01/2035

      350         393  

New York Liberty Development Corp. Revenue Bonds, Series 2007

 

5.500% due 10/01/2037

      2,400         2,776  

New York Liberty Development Corp. Revenue Bonds, Series 2014

 

5.000% due 11/15/2044

      1,750         1,708  

New York Power Authority Revenue Bonds, Series 2020

 

4.000% due 11/15/2055

      1,000         951  

New York State Dormitory Authority Memorial Sloan-Kettering Cancer Revenue Bonds, Series 2022

 

4.000% due 07/01/2051

      750         722  

New York State Dormitory Authority Northwell Health Obligated Group Revenue Bonds, Series 2022

 

5.000% due 05/01/2052

      500         519  

New York State Dormitory Authority Revenue Bonds, Series 2013

 

5.000% due 02/15/2029

      750         766  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

New York State Dormitory Authority Revenue Bonds, Series 2017

 

4.000% due 02/15/2047 (d)

  $     500     $     479  

5.000% due 12/01/2036

        1,000           1,038  

New York State Dormitory Authority Revenue Bonds, Series 2018

 

5.000% due 03/15/2037

      1,000         1,084  

New York State Dormitory Authority Revenue Bonds, Series 2019

 

5.000% due 03/15/2047

      2,500         2,649  

New York State Dormitory Authority Revenue Bonds, Series 2020

 

4.000% due 07/01/2050

      1,500         1,399  

New York State Dormitory Authority Revenue Bonds, Series 2022

 

4.000% due 07/01/2049 (a)

      190         176  

5.000% due 07/15/2050 (a)

      190         191  

New York State Environmental Facilities Corp. Revenue Bonds, Series 2022

 

4.000% due 06/15/2047

      1,000         982  

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

 

4.200% due 11/01/2054 (e)

      1,000         956  

New York State Urban Development Corp. Revenue Bonds, Series 2021

 

4.000% due 03/15/2047 (d)

      500         478  

New York Transportation Development Corp. Revenue Bonds, Series 2022

 

4.000% due 12/01/2042

      940         858  

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

 

5.250% due 05/15/2034

      500         515  

5.250% due 05/15/2040

      500         513  

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

 

5.000% due 12/01/2040

      350         379  

5.000% due 12/01/2043

      500         538  

Port Authority of New York & New Jersey Revenue Bonds, Series 2016

 

5.250% due 11/15/2056

      2,500         2,664  

Port Authority of New York & New Jersey Revenue Bonds, Series 2018

 

5.000% due 07/15/2036

      500         552  

Port Authority of New York & New Jersey Revenue Bonds, Series 2020

 

4.000% due 07/15/2060

      250         225  

Schenectady County Capital Resource Corp. Union College Project Revenue Bonds Series 2022

 

5.000% due 07/01/2032

      190         216  

Suffolk County, New York Economic Development Corp. Revenue Bonds, Series 2021

 

5.125% due 11/01/2041

      200         173  

The Genesee County Funding Corporation Tax-Exempt Revenue Bonds, Series 2022

 

5.250% due 12/01/2052

      500         517  

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

 

5.000% due 11/15/2043

      750         815  

Troy Capital Resource Corp., New York Revenue Bonds, Series 2020

 

5.000% due 09/01/2034

      585         630  

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

 

5.000% due 06/01/2041

      2,000         2,065  

Ulster County, New York Capital Resource Corp. Revenue Bonds, Series 2017

 

5.250% due 09/15/2047

      500         383  
       

 

 

 
            62,830  
       

 

 

 
NORTH DAKOTA 0.2%

 

Grand Forks County, North Dakota Revenue Bonds, Series 2021

 

7.000% due 12/15/2043

      130         75  
       

 

 

 
 

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     67
    


Table of Contents
Schedule of Investments   PIMCO New York Municipal Income Fund III   (Cont.)    

 

        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 
PENNSYLVANIA 1.5%

 

Berks County, Pennsylvania Industrial Development Authority Revenue Bonds, Series 2017

 

4.000% due 11/01/2050

  $     500     $     368  

Pennsylvania Economic Development Financing Authority Revenue Bonds, Series 2021

 

9.000% due 04/01/2051

      225         258  
       

 

 

 
            626  
       

 

 

 
PUERTO RICO 8.7%

 

Children’s Trust Fund, Puerto Rico Revenue Bonds, Series 2008

 

0.000% due 05/15/2057 (c)

        4,400         234  

Commonwealth of Puerto Rico Bonds, Series 2022

 

0.000% due 11/01/2043

      607         303  

0.000% due 11/01/2051

      329         142  

Commonwealth of Puerto Rico General Obligation Bonds, Series 2021

 

0.000% due 07/01/2033 (c)

      187         105  

4.000% due 07/01/2033

      62         57  

4.000% due 07/01/2035

      56         50  

4.000% due 07/01/2037

      48         43  

4.000% due 07/01/2041

      65         57  

5.750% due 07/01/2031

      66         72  

Commonwealth of Puerto Rico General Obligation Notes, Series 2021

 

0.000% due 07/01/2024 (c)

      32         29  

5.625% due 07/01/2027

      69         73  

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2003

 

5.000% due 07/01/2042 ^(b)

      680         376  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

Puerto Rico Highway & Transportation Authority Revenue Bonds, Series 2005

 

5.000% due 07/01/2030 ^(b)

  $     200     $     110  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018

 

0.000% due 07/01/2051 (c)

      5,340         1,068  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2019

 

4.784% due 07/01/2058

      900         862  
       

 

 

 
            3,581  
       

 

 

 
TEXAS 0.5%

 

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

 

7.500% due 12/01/2045

      90         72  

12.000% due 12/01/2045

      150         136  
       

 

 

 
          208  
       

 

 

 
U.S. VIRGIN ISLANDS 0.9%

 

Matching Fund Special Purpose Securitization Corp., U.S. Virgin Islands Revenue Bonds, Series 2022

 

5.000% due 10/01/2039

      370         374  
       

 

 

 
VIRGINIA 1.1%

 

Virginia Small Business Financing Authority Revenue Bonds, Series 2019

 

0.000% due 07/01/2061 (c)

        4,000         211  
        PRINCIPAL
AMOUNT
(000S)
        MARKET
VALUE
(000S)
 

5.500% due 07/01/2044

  $     250     $     245  
       

 

 

 
          456  
       

 

 

 
WISCONSIN 0.7%

 

Wisconsin Center District Revenue Bonds, (AGM Insured), Series 2020

 

0.000% due 12/15/2060 (c)

        2,000         309  
       

 

 

 

Total Municipal Bonds & Notes (Cost $74,163)

      71,878  
 

 

 

 
SHORT-TERM INSTRUMENTS 1.9%

 

REPURCHASE AGREEMENTS (f) 1.9%

 

          798  
       

 

 

 
Total Short-Term Instruments
(Cost $798)
    798  
 

 

 

 
       
Total Investments in Securities
(Cost $74,961)
    72,676  
       
Total Investments 176.5%
(Cost $74,961)

 

  $     72,676  
Auction Rate Preferred Shares (71.5)%

 

        (29,450
Other Assets and Liabilities, net (5.0)%     (2,046
       

 

 

 
Net Assets Applicable to Common Shareholders 100.0%

 

  $     41,180  
       

 

 

 
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

*

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

^

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)

Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. See Note 5, Tender Option Bond Transactions, in the Notes to Financial Statements for more information.

 

(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     $     1,135     $     956       2.32%  
        

 

 

   

 

 

   

 

 

 

 

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     0.400     06/30/2022       07/01/2022     $     798     U.S. Treasury Notes 3.000% due 06/30/2024   $ (814   $ 798     $ 798  
           

 

 

   

 

 

   

 

 

 

Total Repurchase Agreements

 

    $     (814   $     798     $     798  
           

 

 

   

 

 

   

 

 

 

 

       
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BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

 

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2022:

 

Counterparty   Repurchase
Agreement
Proceeds
to be
Received(1)
    Payable for
Reverse
Repurchase
Agreements
    Payable for
Sale-Buyback
Transactions
     Total
Borrowings and
Other Financing
Transactions
    Collateral
Pledged/(Received)
    Net Exposure(2)  

Global/Master Repurchase Agreement

 

FICC

  $ 798     $ 0     $ 0      $     798     $     (814   $     (16
 

 

 

   

 

 

   

 

 

        

Total Borrowings and Other Financing Transactions

  $     798     $     0     $     0         
 

 

 

   

 

 

   

 

 

        

 

(1) 

Includes accrued interest.

(2)

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more information.

 

FAIR VALUE MEASUREMENTS

 

The following is a summary of the fair valuations according to the inputs used as of June 30, 2022 in valuing the Fund’s assets and liabilities:

 

Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Investments in Securities, at Value

 

Municipal Bonds & Notes

 

Arizona

  $     0     $ 163     $     0     $ 163  

Delaware

    0       570       0       570  

Illinois

    0       2,378       0       2,378  

Louisiana

    0       122       0       122  

Michigan

    0       186       0       186  

New York

    0           62,830       0           62,830  

North Dakota

    0       75       0       75  

Pennsylvania

    0       626       0       626  
Category and Subcategory   Level 1     Level 2     Level 3     Fair
Value at
06/30/2022
 

Puerto Rico

  $ 0     $ 3,581     $ 0     $ 3,581  

Texas

    0       208       0       208  

U.S. Virgin Islands

    0       374       0       374  

Virginia

    0       456       0       456  

Wisconsin

    0       309       0       309  

Short-Term Instruments

 

Repurchase Agreements

    0       798       0       798  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

  $     0     $     72,676     $     0     $     72,676  
 

 

 

   

 

 

   

 

 

   

 

 

 
 

 

There were no significant transfers into or out of Level 3 during the period ended June 30, 2022.

 

See Accompanying Notes     SEMIANNUAL REPORT     |     JUNE 30, 2022     69
    


Table of Contents
Notes to Financial Statements           

 

1. ORGANIZATION

 

PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II and PIMCO New York Municipal Income Fund III (each a “Fund” and collectively, the “Funds”) are organized as closed-end management investment companies registered under the Investment Company Act of 1940, as amended, and the rules and regulations thereunder (the “Act”). Each Fund was organized as a Massachusetts business trust on the dates shown in the table below. Pacific Investment Management Company LLC (“PIMCO” or the “Manager”) serves as the Funds’ investment manager.

 

Fund Name         Formation
Date
 

PIMCO Municipal Income Fund

      May 9, 2001  

PIMCO Municipal Income Fund II

      March 29, 2002  

PIMCO Municipal Income Fund III

      August 20, 2002  

PIMCO California Municipal Income Fund

      May 10, 2001  

PIMCO California Municipal Income Fund II

      March 29, 2002  

PIMCO California Municipal Income Fund III

      August 20, 2002  

PIMCO New York Municipal Income Fund

      May 10, 2001  

PIMCO New York Municipal Income Fund II

      March 29, 2002  

PIMCO New York Municipal Income Fund III

      August 20, 2002  

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Each Fund is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Funds is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as a Fund is informed of the ex-dividend date.

Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statements of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statements of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statements of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

 

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

 

(b) Distributions — Common Shares  The following table shows the anticipated frequency of distributions from net investment income to common shareholders.

 

          Distribution Frequency  
Fund Name         Declared     Distributed  

PIMCO Municipal Income Fund

      Monthly       Monthly  

PIMCO Municipal Income Fund II

      Monthly       Monthly  

PIMCO Municipal Income Fund III

      Monthly       Monthly  

PIMCO California Municipal Income Fund

      Monthly       Monthly  

PIMCO California Municipal Income Fund II

      Monthly       Monthly  

PIMCO California Municipal Income Fund III

      Monthly       Monthly  

PIMCO New York Municipal Income Fund

      Monthly       Monthly  

PIMCO New York Municipal Income Fund II

      Monthly       Monthly  

PIMCO New York Municipal Income Fund III

      Monthly       Monthly  

 

Each Fund intends to distribute at least annually to its shareholders all or substantially all of its net tax-exempt interest and any investment company taxable income, and may distribute its net capital gain.

 

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be

 

 

       
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different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on each Fund’s annual financial statements presented under U.S. GAAP.

 

Separately, if a Fund determines or estimates, as applicable, that a portion of a distribution may be comprised of amounts from sources other than net investment income in accordance with its policies, accounting records (if applicable), and accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund determines or estimates, as applicable, the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is determined or estimated, as applicable, that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between a Fund’s daily internal accounting records and practices, a Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, a Fund’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include but are not limited to, for certain Funds, the treatment of periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that a Fund may not issue a Section 19 Notice in situations where a Fund’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please visit www.pimco.com for the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

 

Distributions classified as a tax basis return of capital at a Fund’s fiscal year end, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statements of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statements of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

 

(c) New Accounting Pronouncements and Regulatory Updates  In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update (“ASU”), ASU 2020-04, which provides optional guidance to ease the potential accounting burden associated with transitioning away from the London Interbank Offered Rate and

other reference rates that are expected to be discontinued. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. In March 2021, the administrator for LIBOR announced the extension of the publication of a majority of the USD LIBOR settings to June 30, 2023. Management is continuously evaluating the potential effect a discontinuation of LIBOR could have on the Funds’ investments and has determined that it is unlikely the ASU’s adoption will have a material impact on the Funds’ financial statements.

 

In October 2020, the U.S. Securities and Exchange Commission (“SEC”) adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions that was applicable to the Funds as of the date of this report. Subject to certain exceptions, the rule requires funds that trade derivatives and other transactions that create future payment or delivery obligations to comply with a value-at-risk leverage limit and certain derivatives risk management program and reporting requirements. The rule went into effect on February 19, 2021. The compliance date for the new rule and the associated recordkeeping requirements is August 19, 2022. At this time, management is evaluating the implications of these changes on the financial statements.

 

In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Act without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also includes the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The effective date for the rule was January 19, 2021, and the compliance date for the rule was January 19, 2022. Management has implemented changes in connection with the rule and has determined that there is no material impact to the Funds’ financial statements.

 

In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition would apply in all contexts under the Act. The effective date for the rule was March 8, 2021. The compliance date for the new rule and the associated recordkeeping requirements is September 8, 2022. At this time, management is evaluating the implications of these changes on the financial statements.

 

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     71
    


Table of Contents
Notes to Financial Statements   (Cont.)    

 

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

(a) Investment Valuation Policies  The net asset value (“NAV”) of a Fund’s shares, is determined by dividing the total value of portfolio investments and other assets, less any liabilities, attributable to that Fund by the total number of shares outstanding of that Fund.

 

On each day that the New York Stock Exchange (“NYSE”) is open, Fund 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 Funds or their 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, each Fund reserves the right to either (i) calculate its NAV as of the earlier closing time or (ii) calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day. Each 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, each Fund reserves the right to calculate its NAV as of the normally scheduled close of regular trading on the NYSE 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 quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Funds’ approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by PIMCO to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using such data reflecting the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed

income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange, quotes obtained from a quotation reporting system, established market makers or pricing services. Swap agreements are valued on the basis of market-based prices supplied by Pricing Services or quotes obtained from brokers and dealers. A Fund’s investments in open-end management investment companies, other than exchange-traded funds, are valued at the NAVs of such investments.

 

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Funds’ Boards of Trustees (the “Board”) or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to PIMCO the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of a Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Manager, the responsibility for monitoring significant events that may materially affect the values of a Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

 

When a Fund uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Funds’ policy is intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, a Fund cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it

 

 

       
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were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a 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 a 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 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 Board or persons acting at their direction 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 each respective 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 a 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 each respective 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 and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ 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.

 

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.

 

When a fair valuation method is applied by PIMCO that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

 

Short-term debt instruments (such as commercial paper) 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.

 

4. SECURITIES AND OTHER INVESTMENTS

 

Investments in Securities

The Funds may utilize the investments and strategies described below to the extent permitted by each Fund’s respective investment policies.

 

Restricted Investments  are subject to legal or contractual restrictions on resale and may generally be sold privately, but may be required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the

 

 

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Table of Contents
Notes to Financial Statements   (Cont.)    

 

Securities Act of 1933. Disposal of restricted investments may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Funds as of June 30, 2022, as applicable, are disclosed in the Notes to Schedules of Investments.

 

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association, are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities which do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities of similar maturities.

 

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government. Instead, they are supported only by the discretionary authority of the U.S. Government to purchase the agency’s obligations.

 

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by a Fund to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. A Fund may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

 

The Funds may enter into the borrowings and other financing transactions described below to the extent permitted by each Fund’s respective investment policies.

 

The following disclosures contain information on a Fund’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by a Fund. The location of these instruments in each Fund’s financial statements is described below.

 

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, a Fund purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and a Fund to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by a Fund or counterparty at any time. The underlying securities for all repurchase agreements are held by a Fund’s custodian or designated subcustodians under tri-party repurchase agreements, and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statements of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statements of Operations. In periods of increased demand for collateral, the Fund may pay a fee for the receipt of collateral, which may result in interest expense to a Fund.

 

(b) Tender Option Bond Transactions  In a tender option bond transaction (“TOB”), a tender option bond trust (“TOB Trust”) issues floating rate certificates (“TOB Floater”) and residual interest certificates (“TOB Residual”) and utilizes the proceeds of such issuances to purchase a fixed rate municipal bond (“Fixed Rate Bond”) that is either owned or identified by the Fund. The TOB Floater is generally issued to third party investors (typically a money market fund) and the TOB Residual is generally issued to the Fund that sold or identified the Fixed Rate Bond. The TOB Trust divides the income stream provided by the Fixed Rate Bond to create two securities, the TOB Floater, which is a short-term security, and the TOB Residual, which is a longer-term security. The interest rates payable on the TOB Residual issued to the Fund bear an inverse relationship to the interest rate on the TOB Floater. The interest rate on the TOB Floater is reset by a remarketing process typically every 7 to 35 days. After income is paid on the TOB Floater at current rates, the residual income from the Fixed Rate Bond goes to the TOB Residual. Therefore, rising short-term rates result in lower income for the TOB Residual, and vice versa. In the case of a TOB Trust that utilizes the cash received (less transaction expenses) from the issuance of the TOB Floater

 

 

       
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and TOB Residual to purchase the Fixed Rate Bond from the Fund, the Fund may then invest the cash received in additional securities, generating leverage for the Fund. Other PIMCO-managed accounts may also contribute municipal bonds to a TOB Trust into which the Fund has contributed Fixed Rate Bonds. If multiple PIMCO-managed accounts participate in the same TOB Trust, the economic rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation in the TOB Trust.

 

The TOB Residual may be more volatile and less liquid than other municipal bonds of comparable maturity. In most circumstances the TOB Residual holder bears substantially all of the underlying Fixed Rate Bond’s downside investment risk and also benefits from any appreciation in the value of the underlying Fixed Rate Bond. Investments in a TOB Residual typically will involve greater risk than investments in Fixed Rate Bonds.

 

A TOB Residual held by a Fund provides the Fund with the right to: (i) cause the holders of the TOB Floater to tender their notes at par, and (ii) cause the sale of the Fixed Rate Bond held by the TOB Trust, thereby collapsing the TOB Trust. TOB Trusts are generally supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that provides for the purchase of TOB Floaters that cannot be remarketed. The holders of the TOB Floaters have the right to tender their certificates in exchange for payment of par plus accrued interest on a periodic basis (typically weekly) or on the occurrence of certain mandatory tender events. The tendered TOB Floaters are remarketed by a remarketing agent, which is typically an affiliated entity of the Liquidity Provider. If the TOB Floaters cannot be remarketed, the TOB Floaters are purchased by the TOB Trust either from the proceeds of a loan from the Liquidity Provider or from a liquidation of the Fixed Rate Bond.

 

The TOB Trust may also be collapsed without the consent of a Fund, as the TOB Residual holder, upon the occurrence of certain “tender option termination events” (or “TOTEs”) as defined in the TOB Trust agreements. Such termination events typically include the bankruptcy or default of the Fixed Rate Bond, a substantial downgrade in credit quality of the Fixed Rate Bond, or a judgment or ruling that interest on the Fixed Rate Bond is subject to Federal income taxation. Upon the occurrence of a termination event, the TOB Trust would generally be liquidated in full with the proceeds typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Floater up to par plus accrued interest owed on the TOB Floater and a portion of gain share, if any, with the balance paid out to the TOB Residual holder. In the case of a mandatory termination event, after the payment of fees, the TOB Floater holders would be paid before the TOB Residual holders (i.e., the Funds). In contrast, in the case of a TOTE, after payment of fees, the

TOB Floater holders and the TOB Residual holders would be paid pro rata in proportion to the respective face values of their certificates.

 

If there are insufficient proceeds from the liquidation of the TOB Trust, the party that would bear the losses would depend upon whether a Fund holds a non-recourse TOBs Residual or a recourse TOBs Residual. If a Fund holds a non-recourse TOBs Residual, the Liquidity Provider or holders of the TOBs Floaters would bear the losses on those securities and there would be no recourse to the Fund’s assets. If a Fund holds a recourse TOBs Residual, the Fund (and, indirectly, holders of the Fund’s Common Shares) would typically bear the losses. In particular, if a Fund holds a recourse TOBs Residual, it will typically have entered into an agreement pursuant to which the Fund would be required to pay to the Liquidity Provider the difference between the purchase price of any TOBs Floaters put to the Liquidity Provider by holders of the TOBs Floaters and the proceeds realized from the remarketing of those TOBs Floaters or the sale of the assets in the TOBs Issuer. Each Fund may invest in both non-recourse and recourse TOBs Residuals to leverage its portfolio.

 

Each Fund’s transfer of Fixed Rate Bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Floaters, less certain transaction expenses, is paid to a Fund. A Fund typically invests the cash received in additional municipal bonds. The Funds account for the transactions described above as secured borrowings by including the Fixed Rate Bonds in their Schedules of Investments, and account for the TOB Floater as a liability under the caption “Payable for tender option bond floating rate certificates” in the Funds’ Statements of Assets and Liabilities. Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by each Fund on an accrual basis and is shown as interest on the Statements of Operations. Interest expense incurred on the secured borrowing is shown as interest expense on the Statements of Operations.

 

The Funds may also purchase TOB Residuals in a secondary market transaction without transferring a fixed rate municipal bond into a TOB Trust. Such transactions are not accounted for as secured borrowings but rather as a security purchase with the TOB Residual being included in the Schedule of Investments.

 

In December 2013, regulators finalized rules implementing Section 619 (the “Volcker Rule”) and Section 941 (the “Risk Retention Rules”) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Both the Volcker Rule and the Risk Retention Rules apply to tender option bond programs. The Volcker Rule precludes banking entities from (i) sponsoring or acquiring interests in the trusts used to hold a municipal bond in the creation of TOB Trusts; and (ii) continuing to service or maintain relationships with existing programs involving TOB Trusts to the same extent and in the same capacity as existing

 

 

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programs. The Risk Retention Rules require the sponsor to a TOB Trust (e.g., a Fund) to retain at least five percent of the credit risk of the underlying assets supporting to the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect a Fund’s ability to engage in tender option bond trust transactions or increase the costs of such transactions in certain circumstances.

 

In response to these rules, industry participants explored various structuring alternatives for TOB Trusts established after December 31, 2013 and TOB Trusts established prior to December 31, 2013 (“Legacy TOB Trusts”) and agreed on a new tender option bond structure in which the Funds hire service providers to assist with establishing, structuring and sponsoring a TOB Trust. Service providers to a TOB Trust, such as administrators, liquidity providers, trustees and remarketing agents act at the direction of, and as agent of, the Funds as the TOB residual holders.

 

The Funds have restructured their Legacy TOB Trusts in conformity with regulatory guidelines. Under the new TOB Trust structure, the Liquidity Provider or remarketing agent will no longer purchase the tendered TOB Floaters, even in the event of failed remarketing. This may increase the likelihood that a TOB Trust will need to be collapsed and liquidated

in order to purchase the tendered TOB Floaters. The TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Floaters. Any loans made by the Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust and will be subject to an interest rate agreed upon with the liquidity provider.

 

For the period ended June 30, 2022, the Funds’ average leverage outstanding from the use of TOB transactions and the daily weighted average interest rate, including fees, were as follows:

 

Fund Name         Average
Leverage
Outstanding
(000s)
    Weighted
Average
Interest
Rate*
 

PIMCO Municipal Income Fund

    $ 65,529       0.89%  

PIMCO Municipal Income Fund II

        217,742       0.84%  

PIMCO Municipal Income Fund III

      90,413       0.94%  

PIMCO California Municipal Income Fund

      53,353       0.95%  

PIMCO California Municipal Income Fund II

      38,440       0.96%  

PIMCO California Municipal Income Fund III

      41,925       0.95%  

PIMCO New York Municipal Income Fund

      25,557       0.63%  

PIMCO New York Municipal Income Fund II

      13,903       1.02%  

PIMCO New York Municipal Income Fund III

      10,741       0.91%  

 

*

Annualized

 

 

6. PRINCIPAL AND OTHER RISKS

 

(a) Principal Risks

In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to such things as changes in the market (market risk) or failure or inability of the other party to a transaction to perform (credit and counterparty risk). See below for a detailed description of select principal risks. For a complete list of the principal risks the Funds may be subject to, please see the Principal Risks of the Funds section of the Funds’ annual report dated December 31, 2021.

 

        PIMCO
Municipal
Income
Fund
(PMF)
  PIMCO
Municipal
Income
Fund II
(PML)
  PIMCO
Municipal
Income
Fund III
(PMX)
  PIMCO
California
Municipal
Income
Fund
(PCQ)
  PIMCO
California
Municipal
Income
Fund II
(PCK)
  PIMCO
California
Municipal
Income
Fund III
(PZC)
  PIMCO
New York
Municipal
Income
Fund
(PNF)
  PIMCO
New York
Municipal
Income
Fund II
(PNI)
 

PIMCO
New York
Municipal
Income
Fund III

(PYN)

California State Specific Risk

          X   X   X      

Call Risk

    X   X   X   X   X   X   X   X   X

Counterparty Risk

    X   X   X   X   X   X   X   X   X

Credit Risk

    X   X   X   X   X   X   X   X   X

Cyber Security Risk

    X   X   X   X   X   X   X   X   X

Derivatives Risk

    X   X   X   X   X   X   X   X   X

High Yield Securities Risk

    X   X   X   X   X   X   X   X   X

Inflation/Deflation Risk

    X   X   X   X   X   X   X   X   X

Interest Rate Risk

    X   X   X   X   X   X   X   X   X

Issuer Risk

    X   X   X   X   X   X   X   X   X

Leverage Risk

    X   X   X   X   X   X   X   X   X

Distribution Risk

    X   X   X   X   X   X   X   X   X

Liquidity Risk

    X   X   X   X   X   X   X   X   X

Management Risk

    X   X   X   X   X   X   X   X   X

Market Risk

    X   X   X   X   X   X   X   X   X

Market Disruption Risk

    X   X   X   X   X   X   X   X   X

Municipal Bond Risk

    X   X   X   X   X   X   X   X   X

 

       
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        PIMCO
Municipal
Income
Fund
(PMF)
  PIMCO
Municipal
Income
Fund II
(PML)
  PIMCO
Municipal
Income
Fund III
(PMX)
  PIMCO
California
Municipal
Income
Fund
(PCQ)
  PIMCO
California
Municipal
Income
Fund II
(PCK)
  PIMCO
California
Municipal
Income
Fund III
(PZC)
  PIMCO
New York
Municipal
Income
Fund
(PNF)
  PIMCO
New York
Municipal
Income
Fund II
(PNI)
 

PIMCO
New York
Municipal
Income
Fund III

(PYN)

Municipal Project-Specific Risk

    X   X   X   X   X   X   X   X   X

New York State-Specific Risk

                X   X   X

Non-Diversification Risk

                X     X

Operational Risk

    X   X   X   X   X   X   X   X   X

Portfolio Turnover Risk

    X   X   X   X   X   X   X   X   X

Private Placements Risk

    X   X   X   X   X   X   X   X   X

Regulatory Changes Risk

    X   X   X   X   X   X   X   X   X

Regulatory Risk - LIBOR

    X   X   X   X   X   X   X   X   X

Reinvestment Risk

    X   X   X   X   X   X   X   X   X

Segregation and Coverage Risk

    X   X   X   X   X   X   X   X   X

Short Exposure Risk

    X   X   X   X   X   X   X   X   X

Structured Investments Risk

    X   X   X     X   X   X   X   X

Tax Risk

    X   X   X   X   X   X   X   X   X

Valuation Risk

    X   X   X   X   X   X   X   X   X

 

California State-Specific Risk  is the risk that by concentrating its investments in California Municipal Bonds, the Fund may be affected significantly by economic, regulatory or political developments affecting the ability of California issuers to pay interest or repay principal.

 

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Fund has invested in, the Fund may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

 

Counterparty Risk  is the risk that the Fund will be subject to credit risk with respect to the counterparties to the derivative contracts and other instruments entered into by the Fund or held by special purpose or structured vehicles in which the Fund invests. If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience significant delays in obtaining any recovery (including recovery of any collateral it has provided to the counterparty) in a dissolution, assignment for the benefit of creditors, liquidation, winding-up, bankruptcy, or other analogous proceeding.

 

Credit Risk  is the risk that the Fund could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or unwilling, to meet its financial obligations. Measures such as average

credit quality may not accurately reflect the true credit risk of the Fund. This is especially the case if the Fund consists of securities with widely varying credit ratings.

 

Cyber Security Risk  As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational and information security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and unintentional cyber events that may, among other things, cause a Fund to lose proprietary information, suffer data corruption and/or destruction or lose operational capacity, result in the unauthorized release or other misuse of confidential information, or otherwise disrupt normal business operations. Cyber security failures or breaches may result in financial losses to a Fund and its shareholders. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with a Fund’s ability to calculate its net asset value, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation costs; additional compliance and cyber security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.

 

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit, management , counterparty, operational and legal risks and valuation complexity. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Fund could lose more than the initial amount invested. The Fund’s use of derivatives may result in losses to the Fund, a reduction in the Fund’s returns and/or

 

 

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increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. The primary credit risk on derivatives that are exchange-traded or traded through a central clearing counterparty resides with the Fund’s clearing broker, or the clearinghouse itself.

 

High Yield Securities Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

 

Inflation/Deflation Risk  is the risk that the value of assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of payments at future dates. As inflation increases, the real value of the Fund’s portfolio could decline. Deflation Risk is the risk that prices throughout the economy decline over time. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the value of the Fund’s portfolio and common shares.

 

Interest Rate Risk  is the risk that fixed income securities and other instruments in the Fund’s portfolio will decline in value because of an increase in interest rates; a fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a short average portfolio duration.

 

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

 

Leverage Risk  is the risk that certain transactions of the Fund, such as reverse repurchase agreements, dollar rolls and/or borrowings (as well as from any future issuance of preferred shares), delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

 

Distribution Risk  is the risk that, to the extent a Fund seeks to maintain a level distribution rate, the Fund’s distribution rate may be affected by numerous factors, including but not limited to changes in realized and projected market returns, fluctuations in market interest rates, Fund performance, and other factors. For instance, during periods of low or declining interest rates, the Fund’s distributable income and dividend levels may decline for many reasons. There can be no assurance that a change in market conditions or other factors will

not result in a change in the Fund’s distribution rate or that the rate will be sustainable in the future.

 

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Fund may be unable to sell illiquid investments at an advantageous time or price or possibly require the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations, which could prevent the Fund from taking advantage of other investment opportunities. Additionally, the market for certain investments may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer.

 

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that actual or potential conflicts of interest, legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Fund and may cause PIMCO to restrict or prohibit participation in certain investments. There is no guarantee that the investment objective of the Fund will be achieved.

 

Market Risk  is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably due to factors affecting securities markets generally or particular industries.

 

Market Disruption Risk  A Fund is subject to investment and operational risks associated with financial, economic and other global market developments and disruptions, including those arising from war, terrorism, market manipulation, government interventions, defaults and shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental disasters, which can all negatively impact the securities markets, and cause a Fund to lose value. These events can also impair the technology and other operational systems upon which a Fund’s service providers, including PIMCO as a Fund’s investment adviser, rely, and could otherwise disrupt a Fund’s service providers’ ability to fulfill their obligations to a Fund. For example, the recent spread of an infectious respiratory illness caused by a novel strain of coronavirus (known as COVID-19) has caused volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities a Fund holds, and may adversely affect a Fund’s investments and operations. Please see the Important Information section for additional discussion of the COVID-19 pandemic.

 

Municipal Bond Risk  is the risk that the Fund may be affected significantly by the economic, regulatory or political developments affecting the ability of issuers of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (“Municipal Bonds”) to pay interest or repay principal.

 

 

       
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Municipal Project-Specific Risk  is the risk that the Fund may be more sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in the bonds of specific projects (such as those relating to education, health care, housing, transportation, and utilities), industrial development bonds, or in bonds from issuers in a single state.

 

New York State-Specific Risk  is the risk that by concentrating its investments in New York Municipal Bonds, the Fund maybe affected significantly by economic, regulatory or political developments affecting the ability of New York issuers to pay interest or repay principal.

 

Non-Diversification Risk  is the risk of focusing investments in a small number of issuers, including being more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be. Funds that are “non-diversified” may invest a greater percentage of their assets in the securities of a single issuer (such as bonds issued by a particular state) than funds that are “diversified.”

 

Operational Risk  An investment in a Fund, like any fund, can involve operational risks arising from factors such as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other events, any of which could have a material adverse effect on a Fund. While a Fund seeks to minimize such events through controls and oversight, there may still be failures that could cause losses to the Fund.

 

Portfolio Turnover Risk  is the risk that a high portfolio turnover will result in greater expenses to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may result in realization of taxable capital gains (including short-term capital gains, which are generally taxed to shareholders at ordinary income tax rates when distributed net of short-term capital losses and net long-term capital losses) and may adversely affect the Fund’s after-tax returns.

 

Private Placements Risk  is the risk that securities received in a private placement may be subject to strict restrictions on resale, and there may be no liquid secondary market or ready purchaser for such securities. Therefore, the Fund may be unable to dispose of such securities when it desires to do so, or at the most favorable time or price. Private placements may also raise valuation risks.

 

Regulatory Changes Risk  is the risk that financial entities, such as investment companies and investment advisers, are generally subject to extensive government regulation and intervention. Government regulation and/or intervention may change the way the Fund is

regulated, affect the expenses incurred directly by the Fund and the value of its investments, and limit and /or preclude the Fund’s ability to achieve its investment objectives. Government regulation may change frequently and may have significant adverse consequences. The Fund and the Investment Manager have historically been eligible for exemptions from certain regulations. However, there is no assurance that the Fund and the Investment Manager will continue to be eligible for such exemptions.

 

Regulatory Risk — LIBOR  is the risk related to the anticipated discontinuation of the London Interbank Offered Rate (“LIBOR”). Certain instruments held by the Fund rely in some fashion upon LIBOR. Although the transition process away from LIBOR has become increasingly well-defined in advance of the anticipated discontinuation date, there remains uncertainty regarding the nature of any replacement rate, and any potential effects of the transition away from LIBOR on the Fund or on certain instruments in which the Fund invests can be difficult to ascertain. The transition process may involve, among other things, increased volatility or illiquidity in markets for instruments that currently rely on LIBOR and may result in a reduction in the value of certain instruments held by the Fund.

 

Reinvestment Risk  is the risk that income from the Fund’s portfolio will decline if and when the Fund invests the proceeds from matured, traded or called debt obligations at market interest rates that are below the portfolio’s current earnings rate. The Fund also may choose to sell higher yielding portfolio securities and to purchase lower yielding securities to achieve greater portfolio diversification, because the portfolio managers believe the current holdings are overvalued or for other investment-related reasons.

 

Segregation and Coverage Risk  is the risk that certain portfolio management techniques may be considered senior securities unless steps are taken to segregate the Fund’s assets or otherwise cover its obligations. To avoid having these instruments considered senior securities, the Fund may segregate liquid assets with a value equal (on a daily mark-to-market basis) to its obligations under these types of leveraged transactions, enter into offsetting transactions or otherwise cover such transactions. The Fund may be unable to use such segregated assets for certain other purposes, which could result in the Fund earning a lower return on its portfolio than it might otherwise earn if it did not have to segregate those assets in respect of, or otherwise cover, such portfolio positions. To the extent the Fund’s assets are segregated or committed as cover, it could limit the Fund’s investment flexibility. Except as otherwise described in the principal investment strategies for the Fund, the Fund will no longer be required to engage in asset segregation or cover techniques as of August 19, 2022.

 

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the

 

 

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investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Fund.

 

Structured Investments Risk  is the risk that the Fund’s investment in structured products, including, structured notes, credit-linked notes and other types of structured products bear the risks of the underlying investments, index or reference obligation and are subject to counterparty risk. The Fund may have the right to receive payments only from the structured product, and generally does not have direct rights against the issuer or the entity that sold the assets to be securitized. Structured products generally entail risks associated with derivative instruments.

 

Tax Risk  is the risk that if, in any year, the Fund were to fail to qualify for treatment as a regulated investment company under the Tax Code, and were ineligible to or did not otherwise cure such failure, the Fund would be subject to tax on its taxable income at corporate rates and, when such income is distributed, shareholders would be subject to a further tax to the extent of the Fund’s current or accumulated earnings and profits.

 

Valuation Risk  is the risk that fair value pricing used when market quotations are not readily available may not result in adjustments to the prices of securities or other assets, or that fair value pricing may not reflect actual market value. It is possible that the fair value determined in good faith for a security or other asset will be materially different from quoted or published prices, from the prices used by others for the same security or other asset and/or from the value that actually could be or is realized upon the sale of that security or other asset.

 

(b) Other Risks

In general, a Fund may be subject to additional risks, including, but not limited to, risks related to government regulation and intervention in financial markets, operational risks, risks associated with financial, economic and global market disruptions, and cybersecurity risks. Please see the Important Information section of this report for additional discussion of certain regulatory and market developments that may impact a Fund’s performance.

 

7. MASTER NETTING ARRANGEMENTS

 

A Fund may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a Fund to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master

Agreement with a counterparty. For financial reporting purposes the Statements of Assets and Liabilities generally present derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

 

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statements of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statements of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. A Fund’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

 

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between a Fund and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedules of Investments.

 

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. The ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level

 

 

       
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or as required by regulation. Similarly, if required by regulation, a Funds may be required to post additional collateral beyond coverage of daily exposure. These amounts, if any, may (or if required by law, will) be segregated with a third-party custodian. To the extent a Fund is required by regulation to post additional collateral beyond coverage of daily exposure, it could potentially incur costs, including in procuring eligible assets to meet collateral requirements, associated with such posting. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedules of Investments.

 

8. FEES AND EXPENSES

 

(a) Management Fee  Pursuant to the Investment Management Agreement with PIMCO (the “Agreement”), and subject to the supervision of the Board, PIMCO is responsible for providing to each Fund investment guidance and policy direction in connection with the management of the Fund, including oral and written research, analysis, advice, and statistical and economic data and information. In addition, pursuant to the Agreement and subject to the general supervision of the Board, PIMCO, at its expense, provides or causes to be furnished most other supervisory and administrative services the Funds require, including but not limited to, expenses of most third-party service providers (e.g., audit, custodial, legal, transfer agency, printing) and other expenses, such as those associated with insurance, proxy solicitations and mailings for shareholder meetings, NYSE listing and related fees, tax services, valuation services and other services the Funds require for their daily operations.

 

Pursuant to the Agreement, PIMCO receives an annual fee, payable monthly, at the annual rates shown in the table below:

 

Fund Name         Annual
Rate(1)
 

PIMCO Municipal Income Fund

      0.705%  

PIMCO Municipal Income Fund II

      0.685%  

PIMCO Municipal Income Fund III

      0.705%  

PIMCO California Municipal Income Fund

      0.705%  

PIMCO California Municipal Income Fund II

      0.705%  

PIMCO California Municipal Income Fund III

      0.715%  

PIMCO New York Municipal Income Fund

      0.770%  

PIMCO New York Municipal Income Fund II

      0.735%  

PIMCO New York Municipal Income Fund III

      0.860%  

 

(1) 

Management fees calculated based on the Fund’s average daily NAV (including daily net assets attributable to any preferred shares of the Fund that may be outstanding).

 

(b) Fund Expenses  Each Fund bears other expenses, which may vary and affect the total level of expenses paid by shareholders, such as (i) salaries and other compensation or expenses, including travel expenses of any of the Fund’s executive officers and employees, if any, who are not officers, directors, shareholders, members, partners or employees of PIMCO or its subsidiaries or affiliates; (ii) taxes and governmental fees, if any, levied against the Fund; (iii) brokerage fees and commissions and other

portfolio transaction expenses incurred by or for the Fund (including, without limitation, fees and expenses of outside legal counsel or third-party consultants retained in connection with reviewing, negotiating and structuring specialized loans and other investments made by the Fund, subject to specific or general authorization by the Fund’s Board (for example, so-called “broken-deal costs” (e.g., fees, costs, expenses and liabilities, including, for example, due diligence-related fees, costs, expenses and liabilities, with respect to unconsummated investments))); (iv) expenses of the Fund’s securities lending (if any), including any securities lending agent fees, as governed by a separate securities lending agreement; (v) costs, including interest expenses, of borrowing money or engaging in other types of leverage financing, including, without limitation, through the use by the Fund of reverse repurchase agreements, tender option bonds, bank borrowings and credit facilities; (vi) costs, including dividend and/or interest expenses and other costs (including, without limitation, offering and related legal costs, fees to brokers, fees to auction agents, fees to transfer agents, fees to ratings agencies and fees to auditors associated with satisfying ratings agency requirements for preferred shares or other securities issued by the Fund and other related requirements in the Fund’s organizational documents) associated with the Fund’s issuance, offering, redemption and maintenance of preferred shares, commercial paper or other senior securities for the purpose of incurring leverage; (vii) fees and expenses of any underlying funds or other pooled vehicles in which the Fund invests; (viii) dividend and interest expenses on short positions taken by the Fund; (ix) fees and expenses, including travel expenses, and fees and expenses of legal counsel retained for their benefit, of Trustees who are not officers, employees, partners, shareholders or members of PIMCO or its subsidiaries or affiliates; (x) extraordinary expenses, including extraordinary legal expenses, that may arise, including expenses incurred in connection with litigation, proceedings, other claims, and the legal obligations of the Fund to indemnify its Trustees, officers, employees, shareholders, distributors, and agents with respect thereto; (xi) organizational and offering expenses of the Fund, including with respect to share offerings, such as rights offerings and shelf offerings, following the Fund’s initial offering, and expenses associated with tender offers and other share repurchases and redemptions; and (xii) expenses of the Fund which are capitalized in accordance with U.S. GAAP.

 

Each of the Trustees of the Funds who is not an “interested person” under Section 2(a)(19) of the Act, (the “Independent Trustees”) also serves as a trustee of a number of other closed-end funds for which PIMCO serves as investment manager (together with the Funds, the “PIMCO Closed-End Funds”), as well as PIMCO California Flexible Municipal Income Fund, PIMCO Flexible Emerging Markets Income Fund, PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund, each a closed end management investment company managed by PIMCO that is operated as an “interval fund” (the ”PIMCO Interval Funds”), and PIMCO Managed Accounts Trust,

 

 

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an open-end management investment company with multiple series for which PIMCO serves as investment adviser and administrator (“PMAT” and, together with the PIMCO Closed-End Funds and the PIMCO Interval Funds, the “PIMCO-Managed Funds”). In addition, during the reporting period, each of the Independent Trustees (other than Mr Kittredge and Ms. Vandecruze) also served as a trustee of certain funds for which Allianz Global Investors U.S. LLC (“AGI U.S.”), an affiliate of PIMCO, served as investment manager.

 

On May 17, 2022, AGI U.S. pleaded guilty in connection with the proceeding United States of America v. Allianz Global Investors U.S. LLC. AGI U.S. is an indirect subsidiary of Allianz SE. The conduct resulting in the matter described above occurred entirely within AGI U.S. and did not involve PIMCO or any personnel of PIMCO. Nevertheless, because of the disqualifying conduct of AGI U.S., their affiliate, PIMCO would have been disqualified from serving as the investment adviser to the Funds in the absence of SEC exemptive relief. PIMCO has received exemptive relief from the SEC to permit PIMCO to continue serving as investment adviser for U.S.-registered investment companies, including the Funds.

 

The Funds pay no compensation directly to any Trustee or any other officer who is affiliated with the Manager, all of whom receive remuneration for their services to the Funds from the Manager or its affiliates.

 

9. RELATED PARTY TRANSACTIONS

 

The Manager is a related party. Fees payable to this party are disclosed in Note 8, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statements of Assets and Liabilities.

10. GUARANTEES AND INDEMNIFICATIONS

 

Under each Fund’s organizational documents, each Trustee and officer is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts.

 

11. PURCHASES AND SALES OF SECURITIES

 

The length of time a Fund has held a particular security is not generally a consideration in investment decisions. A change in the securities held by a Fund is known as “portfolio turnover.” Each Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities, which are borne by the Fund. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates when distributed to shareholders). The transaction costs associated with portfolio turnover may adversely affect a Fund’s performance. The portfolio turnover rates are reported in the Financial Highlights.

 

 

Purchases and sales of securities (excluding short-term investments) for the period ended June 30, 2022, were as follows (amounts in thousands):

 

          U.S. Government/Agency     All Other  
Fund Name         Purchases     Sales     Purchases     Sales  

PIMCO Municipal Income Fund

    $     0     $     0     $ 62,704     $     71,283  

PIMCO Municipal Income Fund II

      0       0           154,790       185,453  

PIMCO Municipal Income Fund III

      0       0       70,706       86,432  

PIMCO California Municipal Income Fund

      0       0       68,515       101,986  

PIMCO California Municipal Income Fund II

      0       0       64,264       80,625  

PIMCO California Municipal Income Fund III

      0       0       56,666       77,630  

PIMCO New York Municipal Income Fund

      0       0       27,101       32,728  

PIMCO New York Municipal Income Fund II

      0       0       38,084       39,877  

PIMCO New York Municipal Income Fund III

      0       0       14,426       15,926  

 

 

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

 

12. PREFERRED SHARES

 

(a) Auction-Rate Preferred Shares  Each series of Auction-Rate Preferred Shares (“ARPS”) outstanding of each Fund has a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends. Dividends are accumulated daily at an annual rate that is typically reset every seven days through auction procedures (or through default procedures in the event of failed auctions). Distributions of net realized capital gains, if any, are paid at least annually.

 

       
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For the period ended June 30, 2022, the annualized dividend rates on the ARPS ranged from:

 

Fund Name         Shares
Issued and
Outstanding
    High     Low     As of
June 30, 2022
 

PIMCO Municipal Income Fund

         

Series A

      1,310       1.939%       0.078%       1.939%  

Series B

      1,367       1.939%       0.078%       1.939%  

Series C

      1,294       1.884%       0.078%       1.884%  

Series D

      1,388       1.939%       0.078%       1.939%  

Series E

      1,309       1.829%       0.078%       1.829%  

PIMCO Municipal Income Fund II

         

Series A

      2,279       1.939%       0.078%       1.939%  

Series B

      2,577       1.939%       0.078%       1.939%  

Series C

      2,422       1.884%       0.078%       1.884%  

Series D

      2,300       1.939%       0.078%       1.939%  

Series E

      2,353       1.829%       0.078%       1.829%  

PIMCO Municipal Income Fund III

         

Series A

      1,018       1.939%       0.078%       1.939%  

Series B

      1,190       1.939%       0.078%       1.939%  

Series C

      1,350       1.884%       0.078%       1.884%  

Series D

      1,334       1.939%       0.078%       1.939%  

Series E

      1,296       1.829%       0.078%       1.829%  

PIMCO California Municipal Income Fund

         

Series A

      1,575       1.939%       0.078%       1.939%  

Series B

      1,547       1.884%       0.078%       1.884%  

Series C

      1,703       1.829%       0.078%       1.829%  

PIMCO California Municipal Income Fund II

         

Series A

      1,154       1.939%       0.078%       1.939%  

Series B

      879       1.939%       0.078%       1.939%  

Series C

      1,235       1.884%       0.078%       1.884%  

Series D

      926       1.939%       0.078%       1.939%  

Series E

      953       1.829%       0.078%       1.829%  

PIMCO California Municipal Income Fund III

         

Series A

      1,920       1.939%       0.078%       1.939%  

Series B

      1,995       1.939%       0.078%       1.939%  

PIMCO New York Municipal Income Fund

         

Series A

      1,641       1.939%       0.078%       1.939%  

PIMCO New York Municipal Income Fund II

         

Series A

      1,178       1.884%       0.078%       1.884%  

Series B

      1,142       1.829%       0.078%       1.829%  

PIMCO New York Municipal Income Fund III

         

Series A

      1,178       1.939%       0.078%       1.939%  

 

Each Fund is subject to certain limitations and restrictions while ARPS are outstanding. Failure to comply with these limitations and restrictions could preclude a Fund from declaring or paying any dividends or distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of ARPS at their liquidation preference plus any accumulated, unpaid dividends.

 

Auction-Rate Preferred shareholders of each Fund, who are entitled to one vote per share, generally vote together with the common

shareholders of the Fund but vote separately as a class to elect two Trustees of the Fund and on certain matters adversely affecting the rights of the ARPS.

 

Since mid-February 2008, holders of ARPS issued by the Funds have been directly impacted by a lack of liquidity, which has similarly affected ARPS holders in many of the nation’s closed-end funds. Since then, regularly scheduled auctions for ARPS issued by the Funds have consistently “failed” because of insufficient demand (bids to buy shares) to meet the supply (shares offered for sale) at each auction. In a

 

 

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failed auction, ARPS holders cannot sell all, and may not be able to sell any, of their shares tendered for sale. While repeated auction failures have affected the liquidity for ARPS, they do not constitute a default or automatically alter the credit quality of the ARPS, and ARPS holders have continued to receive dividends at the defined “maximum rate,” as defined for the Funds in the table below.

 

Applicable %          Reference Rate          Maximum Rate  
            The higher of 30-day “AA”
Financial Composite  Commercial
Paper Rates
               
110%1     x     OR     =       Maximum Rate for the Funds  
            The Taxable Equivalent of
the Short-Term Municipal
Obligation Rate2
               

 

1 

150% if all or part of the dividend consists of taxable income or capital gain.

2 

“Taxable Equivalent of the Short-Term Municipal Obligation Rate” means 90% of the quotient of (A) the per annum rate expressed on an interest equivalent basis equal to the S&P 7 Day Index divided by (B) 1.00 minus the Marginal Tax Rate (expressed as a decimal).

 

The maximum rate is a function of short-term interest rates and is typically higher than the rate that would have otherwise been set through a successful auction. If the Funds’ ARPS auctions continue to fail and the “maximum rate” payable on the ARPS rises as a result of changes in short-term interest rates, returns for each Fund’s common shareholders could be adversely affected.

 

(b) Remarketable Variable Rate MuniFund Term Preferred Shares  On September 18, 2018, each of PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III and PIMCO New York Municipal Income Fund II (each, a “RVMTP Fund” and collectively,

the “RVMTP Funds”) issued a single series of Variable Rate MuniFund Term Preferred Shares, Series 2022 (the “VMTP Shares”).

 

On June 30, 2022, pursuant to the authority expressly vested in the Boards of Trustees of the RVMTP Funds, the Boards of Trustees of the RVMTP Funds authorized the redesignation (the “Redesignation”) of each Fund’s VMTP Shares as Remarketable Variable Rate MuniFund Term Preferred Shares, Series 2051 (the “RVMTP Shares”, and together with the ARPS, the “Preferred Shares”). Pursuant to such authority, the Redesignation occurred on July 14, 2021 (the “Redesignation Date”). As redesignated, the RVMTP Shares have a term of 30 years, subject to remarketing every three years and in certain other instances.

 

In the RVMTP Funds’ Statements of Assets and Liabilities, the RVMTP Shares’ aggregate liquidation preference is shown as a liability since they are considered debt of the issuer. Any costs directly related to the September 18, 2018 issuance of the VMTP Shares were considered debt issuance costs and have been amortized into interest expense as of the Redesignation Date. Any costs directly related to the Redesignation are considered debt issuance costs and are being amortized into interest expense on a straight-line basis through the Early Term Redemption Date (defined below). The liquidation value of the RVMTP Shares in each RVMTP Fund’s Statements of Assets and Liabilities is shown as a liability and represents its liquidation preference, which approximates fair value of the shares and is considered level 2 under the fair value hierarchy, less any unamortized debt issuance costs. The RVMTP Shares can be redeemed in whole or in part, at their liquidation preference of $100,000 per share plus any accumulated, unpaid dividends. No Preferred Shares were redeemed during the period ended June 30, 2022.

 

 

Dividends paid with respect to the RVMTP Shares, which are payable monthly, are treated as interest expense, are accrued daily and are reflected, with respect to the RVMTP Shares, as a component of interest expense in the Statements of Operations. For the period ended June 30, 2022, the amount of the RVMTP Shares outstanding, interest expense related to the dividends paid to RVMTP Shares (including amounts prior to and after the Redesignation) and the daily weighted average interest rate, including issuance costs, can be found in the table below.

 

Fund Name         RVMTP Shares
Outstanding
    Interest
Expense
    Weighted
Average
Interest
Rate*1
 

PIMCO Municipal Income Fund

      233     $   164       1.42

PIMCO Municipal Income Fund II

      687       472       1.39  

PIMCO Municipal Income Fund III

      343       239       1.40  

PIMCO California Municipal Income Fund

      293       205       1.41  

PIMCO California Municipal Income Fund II

      343       239       1.40  

PIMCO California Municipal Income Fund III

      271       190       1.41  

PIMCO New York Municipal Income Fund II

      210       148       1.43  

 

 

Amounts in thousands.

1

Annualized

*

The rate presented is inclusive of the amortized debt issuance cost. As a result, the rate shown may not fall into the range presented in the table below.

 

       
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For the period ended June 30, 2022, the dividend rate on the RVMTP Shares ranged from:

 

Fund Name         Shares
Issued and
Outstanding
    High     Low     As of
June 30, 2022
 

PIMCO Municipal Income Fund

         

Series 2051

      233       1.890%       0.960%       1.830%  

PIMCO Municipal Income Fund II

         

Series 2051

      687       1.890%       0.960%       1.830%  

PIMCO Municipal Income Fund III

         

Series 2051

      343       1.890%       0.960%       1.830%  

PIMCO California Municipal Income Fund

         

Series 2051

      293       1.890%       0.960%       1.830%  

PIMCO California Municipal Income Fund II

         

Series 2051

      343       1.890%       0.960%       1.830%  

PIMCO California Municipal Income Fund III

         

Series 2051

      271       1.890%       0.960%       1.830%  

PIMCO New York Municipal Income Fund II

         

Series 2051

      210       1.890%       0.960%       1.830%  

 

Each RVMTP Fund, at its option, may designate special terms applicable to all of the outstanding RVMTP Shares for a certain period (a “Special Terms Period”) pursuant to a notice of special terms. Such special terms may differ from those provided in the current governing documents of the RVMTP Shares and may include, without limitation, changes to the dividend rate, dividend payment dates and redemption provisions; provided that such special terms do not affect the parity ranking of the RVMTP Shares to any other class or series of Preferred Shares then outstanding with respect to dividends or distribution of assets upon dissolution, liquidation, or winding up of the affairs of the RVMTP Fund. No Special Terms Period with respect to a series of RVMTP Shares will become effective unless certain conditions are satisfied, including that all of the RVMTP Shares in such series are remarketed (except with respect to any RVMTP Shares whose holders have elected to retain their RVMTP Shares for the Special Terms Period).

 

In addition, a “Mandatory Tender Event” will occur on each date that is (i) 20 business days before each three-year anniversary since the Redesignation Date (each an “Early Term Redemption”, and the date on which such occurs, an “Early Term Redemption Date”), (ii) the date an RVMTP Fund delivers a notice designating a Special Terms Period, and (iii) 20 business days before the end of a Special Terms Period (provided that no subsequent Special Terms Period is designated). Upon the occurrence of a Mandatory Tender Event, all RVMTP Shares will be subject to mandatory tender (subject to the holders’ election to retain their RVMTP Shares) and the RVMTP Fund will issue or cause to be issued a notice of mandatory tender to the holders of the RVMTP Shares for remarketing on the corresponding Mandatory Tender Date. If any RVMTP Shares subject to a Mandatory Tender Event upon an Early Term Redemption Date of the RVMTP Shares or upon the end of a Special Terms Period (each, an “RVMTP Share Early Term Redemption Date”) have not been either retained by the holders or remarketed by

the Mandatory Tender Date, the RVMTP Fund will redeem such RVMTP Shares on the RVMTP Share Early Term Redemption Date.

 

With respect to the Mandatory Tender Events described in clauses (i), (ii) and (iii) above, the corresponding “Mandatory Tender Date” means, respectively: (i) the date that is 180 calendar days following the Early Term Redemption Date, (ii) the date on which the related Special Terms Period becomes effective, and (iii) the last day of the related Special Terms Period (subject, in each case, to the holders’ election to retain their RVMTP Shares). No Mandatory Tender Event occurred during the period ended June 30, 2022.

 

Each RVMTP Fund is subject to certain limitations and restrictions while the RVMTP Shares are outstanding. Failure to comply with these limitations and restrictions could preclude an RVMTP Fund from declaring or paying any dividends or distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of the RVMTP Shares at their liquidation preference plus any accumulated, unpaid dividends and other distributions. Any resulting suspension of payment of common share dividends may result in a tax penalty for the applicable RVMTP Fund and, in certain circumstances, the loss of treatment as a regulated investment company. Any such mandatory redemption will be conducted on a pro rata basis among each series of the RVMTP Shares and the ARPS based upon the proportion that the aggregate liquidation preference of any series bears to the aggregate liquidation preference of all outstanding series of such RVMTP Fund’s preferred shares. Under the terms of a purchase agreement between each RVMTP Fund and the investor in the RVMTP Shares, each RVMTP Fund is subject to various investment requirements. These requirements may be more restrictive than those to which the RVMTP Fund is otherwise subject in accordance with its investment objectives and policies. In addition, each RVMTP Fund is subject to certain restrictions on its

 

 

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investments imposed by guidelines of the rating agencies that rate the RVMTP Shares, which guidelines may be changed by the applicable rating agency, in its sole discretion, from time to time. These guidelines may impose asset coverage or portfolio composition requirements that are more stringent than those imposed on the RVMTP Fund by the Act.

 

Ratings agencies may change their methodologies for evaluating and providing ratings for shares of closed-end funds at any time and in their sole discretion, which may affect the rating (if any) of an RVMTP Fund’s shares. Fitch Ratings published ratings criteria relating to closed-end funds on December 4, 2020, which effectively result in a rating cap of “AA” for debt and preferred stock issued by all closed-end funds and a rating cap of “A” for (i) debt and preferred shares issued by closed-end funds exposed to emerging market debt, below-investment-grade and unrated debt, structured securities and equity, and (ii) closed-end funds with material exposure to “BBB” category rated assets. The updated ratings criteria cap the credit rating of each RVMTP Fund’s RVMTP Shares at AA. Accordingly, on April 30, 2021, Fitch Ratings announced that it had downgraded to “AA” from AAA” the long-term ratings assigned to each of the RVMTP Funds’ VMTP Shares. The long-term rating actions were driven by changes in the updated ratings criteria for closed-end funds rather than by any fundamental changes to the Funds’ credit profiles. In connection with the Redesignation, Fitch affirmed the “AA” long-term ratings assigned to each of the RVMTP Funds’ RVMTP Shares in April 2021. Fitch does not currently rate the Fund’s ARPS. In addition, future ratings downgrades by Moody’s or Fitch, as applicable, may result in an increase to the Funds’ Preferred Shares dividend rates.

Each RVMTP Fund is required to maintain certain asset coverage with respect to all outstanding senior securities of the RVMTP Fund which are stocks for purposes of the Act, including the RVMTP Shares and ARPS, as set forth in such RVMTP Fund’s governing documents and the Act. One such requirement under the Act is that a RVMTP Fund is not permitted to declare or pay common share dividends unless immediately thereafter the RVMTP Fund has a minimum asset coverage ratio of 200% with respect to all outstanding senior securities of the Fund which are stocks for purposes of the Act after deducting the amount of such common share dividends. The asset coverage per share for each RVMTP Fund is reported in the Financial Highlights and is disclosed as the product of the asset coverage ratio as of period end and the current liquidation preference.

 

With respect to the payment of dividends and as to the distribution of assets of each RVMTP Fund, ARPS and RVMTP Shares rank on parity with each other, and are both senior in priority to the RVMTP Funds’ outstanding common shares. Holders of preferred shares of each RVMTP Fund, who are entitled to one vote per share, including holders of RVMTP Shares and ARPS, generally vote together as one class with the common shareholders of each RVMTP Fund, but preferred shareholders (RVMTP Shares and ARPS together) vote separately as a class to elect two Trustees of each Fund, as required by the Act, and on certain matters adversely affecting the rights of preferred shareholders. Under the Act, preferred shareholders, including holders of the RVMTP Shares and ARPS, are also entitled to elect a majority of the trustees at any time when dividends on the preferred shares are unpaid for two full years.

 

 

The RVMTP Shares’ Dividend Rate (as defined below) is determined over the course of a seven-day period, which generally commences each Thursday and ends the following Wednesday (the “Rate Period”). The dividends per share for RVMTP Shares for a given Rate Period are dependent on the RVMTP Share dividend rate for that Rate Period (the “RVMTP Share Dividend Rate”). The RVMTP Share Dividend Rate is equal to the greater of (i) the sum of the Index Rate1 plus the Applicable Spread2 for the Rate Period plus the “Failed Remarketing Spread”3, if any, and (ii) the sum of (a) the product of the Index Rate multiplied by the Applicable Multiplier4 for such Rate Period plus (b) 0.92% plus (c) the Failed Remarketing Spread, if any.5

 

Dividend Rate          Rate Period Fraction   Liquidation Preference     Dividend  
            Number of days in the Rate Period (or a part thereof)                            

Dividend Rate

    x     Divided by   x     100,000       =       Dividends per RVMTP Share  
            Total number of days in the year                            

 

1 

The Index Rate is determined by reference to a weekly, high-grade index comprised of seven-day, tax-exempt variable rate demand notes, generally the Securities Industry and Financial Markets Association Municipal Swap Index.

2 

The Applicable Spread for a Rate Period is a percentage per year that is based on the long-term rating most recently assigned by the applicable ratings agency to the RVMTP Shares.

3 

In connection with a failed remarketing related to an Early Term Redemption, the Failed Remarketing Spread is (i) 0.75% for the first 59 days following the applicable Early Term Redemption Date, (ii) 1.00% for the 60th to the 89th day following such Early Term Redemption Date, (iii) 1.25% for the 90th to the 119th day following such Early Term Redemption Date, (iv) 1.50% for the 120th to the 149th day following such Early Term Redemption Date, and (v) 1.75% for the 150th day following such Early Term Redemption Date to the date of the associated mandatory redemption of the RVMTP Shares. In connection with a failed remarketing related to a Special Terms Period (each a “Failed Special Terms Period Remarketing”), the Failed Remarketing Spread means (i) for so long as two or more Failed Special Terms Period Remarketings have not occurred, 0.05%, and (ii) following the second occurrence of a Failed Special Terms Period Remarketing, 0.10% multiplied by the number of Failed Special Terms Period Remarketings that have occurred after the first Failed Special Terms Period Remarketing.

4 

The Applicable Multiplier for a Rate Period is a percentage that is based on the long-term rating most recently assigned by the applicable ratings agency to the RVMTP Shares.

5 

The Dividend Rate will in no event exceed 15% per year.

 

       
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    June 30, 2022   (Unaudited)

 

13. REGULATORY AND LITIGATION MATTERS

 

The Funds are not named as defendants in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against them.

 

The foregoing speaks only as of the date of this report.

 

14. FEDERAL INCOME TAX MATTERS

 

Each 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.

 

A 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 Funds’ tax positions for all open tax years. As of June 30, 2022, the Funds have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in future tax returns.

 

The Funds file U.S. federal, state, and local tax returns as required. The Funds’ 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.

 

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

 

 

As of their last fiscal year ended December 31, 2021, the Funds had the following post-effective capital losses with no expiration (amounts in thousands):

 

           Short-Term      Long-Term  

PIMCO Municipal Income Fund

     $   3,229      $ 722  

PIMCO Municipal Income Fund II

       9,543          3,377  

PIMCO Municipal Income Fund III

       3,002        0  

PIMCO California Municipal Income Fund

       0        0  

PIMCO California Municipal Income Fund II

       1,044        0  

PIMCO California Municipal Income Fund III

       726        897  

PIMCO New York Municipal Income Fund

       996        831  

PIMCO New York Municipal Income Fund II

       3,583        1,344  

PIMCO New York Municipal Income Fund III

       15        362  

 

 

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

 

As of June 30, 2022, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands):

 

           Federal
Tax Cost
     Unrealized
Appreciation
     Unrealized
(Depreciation)
     Net Unrealized
Appreciation/
(Depreciation)(1)
 

PIMCO Municipal Income Fund

     $ 515,343      $ 13,835      $ (25,501    $ (11,666

PIMCO Municipal Income Fund II

         1,159,247          25,212          (53,349        (28,137

PIMCO Municipal Income Fund III

       540,895        12,880        (26,711      (13,831

PIMCO California Municipal Income Fund

       398,137        4,170        (13,406      (9,236

PIMCO California Municipal Income Fund II

       409,559        10,756        (14,582      (3,826

PIMCO California Municipal Income Fund III

       334,715        3,706        (11,484      (7,778

PIMCO New York Municipal Income Fund

       136,825        1,666        (7,731      (6,065

PIMCO New York Municipal Income Fund II

       190,612        4,608        (9,176      (4,568

PIMCO New York Municipal Income Fund III

       74,961        1,481        (3,766      (2,285

 

 

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

(1) 

Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, interest accrued on defaulted securities, other interest adjustments, and inverse floater transactions.

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     87
    


Table of Contents
Notes to Financial Statements   (Cont.)   June 30, 2022   (Unaudited)

 

15. SUBSEQUENT EVENTS

 

In preparing these financial statements, the Funds’ management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

 

On July 1, 2022, the following distributions were declared to common shareholders payable August 1, 2022 to shareholders of record on July 11, 2022:

 

PIMCO Municipal Income Fund

    $   0.054000 per common share  

PIMCO Municipal Income Fund II

    $ 0.059000 per common share  

PIMCO Municipal Income Fund III

    $ 0.046000 per common share  

PIMCO California Municipal Income Fund

    $ 0.065000 per common share  

PIMCO California Municipal Income Fund II

    $ 0.032000 per common share  

PIMCO California Municipal Income Fund III

    $ 0.038000 per common share  

PIMCO New York Municipal Income Fund

    $ 0.042000 per common share  

PIMCO New York Municipal Income Fund II

    $ 0.040045 per common share  

PIMCO New York Municipal Income Fund III

    $ 0.035490 per common share  

On August 1, 2022, the following distributions were declared to common shareholders payable September 1, 2022 to shareholders of record on August 11, 2022:

 

PIMCO Municipal Income Fund

    $   0.054000 per common share  

PIMCO Municipal Income Fund II

    $ 0.059000 per common share  

PIMCO Municipal Income Fund III

    $ 0.046000 per common share  

PIMCO California Municipal Income Fund

    $ 0.065000 per common share  

PIMCO California Municipal Income Fund II

    $ 0.032000 per common share  

PIMCO California Municipal Income Fund III

    $ 0.038000 per common share  

PIMCO New York Municipal Income Fund

    $ 0.042000 per common share  

PIMCO New York Municipal Income Fund II

    $ 0.040045 per common share  

PIMCO New York Municipal Income Fund III

    $ 0.035490 per common share  

 

As of August 11, 2022, PML had an effective “shelf” registration statement on file with the SEC authorizing the Fund to issue an unlimited number of Common Shares in one or more offerings pursuant to Rule 415 under the Securities Act.

 

There were no other subsequent events identified that require recognition or disclosure.

 

 

       
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Table of Contents
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

       

Exchange Abbreviations:

               
OTC  

Over the Counter

       

Municipal Bond or Agency Abbreviations:

               
AGM  

Assured Guaranty Municipal

  CR  

Custodial Receipts

  PSF  

Public School Fund

AMBAC  

American Municipal Bond Assurance Corp.

  FHA  

Federal Housing Administration

  Q-SBLF  

Qualified School Bond Loan Fund

CM  

California Mortgage Insurance

  NPFGC  

National Public Finance Guarantee Corp.

  ST  

State

Other Abbreviations:

               
TBA  

To-Be-Announced

       

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     89
    


Table of Contents
Distribution Information    

 

For purposes of Section 19 of the Investment Company Act of 1940 (the “Act”), the Funds estimated the periodic sources of any dividends paid during the period covered by this report in accordance with good accounting practice. Pursuant to Rule 19a-1(e) under the Act, the table below sets forth the actual source information for dividends paid during the six month ended June 30, 2022 calculated as of each distribution period pursuant to Section 19 of the Act. The information below is not provided for U.S. federal income tax reporting purposes. The tax character of all dividends and distributions is reported on Form 1099-DIV (for shareholders who receive U.S. federal tax reporting) at the end of each calendar year.

 

See the Financial Highlights section of this report for the tax characterization of distributions determined in accordance with federal income tax regulations for the fiscal year.

 

PIMCO Municipal Income Fund                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0540      $ 0.0000      $ 0.0000      $ 0.0540  

February 2022

     $ 0.0540      $ 0.0000      $ 0.0000      $ 0.0540  

March 2022

     $ 0.0540      $ 0.0000      $ 0.0000      $ 0.0540  

April 2022

     $ 0.0540      $ 0.0000      $ 0.0000      $ 0.0540  

May 2022

     $ 0.0540      $ 0.0000      $ 0.0000      $ 0.0540  

June 2022

     $ 0.0540      $ 0.0000      $ 0.0000      $ 0.0540  
PIMCO Municipal Income Fund II                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0590      $ 0.0000      $ 0.0000      $ 0.0590  

February 2022

     $ 0.0514      $ 0.0000      $ 0.0076      $ 0.0590  

March 2022

     $ 0.0540      $ 0.0000      $ 0.0050      $ 0.0590  

April 2022

     $ 0.0524      $ 0.0000      $ 0.0066      $ 0.0590  

May 2022

     $ 0.0430      $ 0.0000      $ 0.0160      $ 0.0590  

June 2022

     $ 0.0425      $ 0.0000      $ 0.0165      $ 0.0590  
PIMCO Municipal Income Fund III                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0460      $ 0.0000      $ 0.0000      $ 0.0460  

February 2022

     $ 0.0460      $ 0.0000      $ 0.0000      $ 0.0460  

March 2022

     $ 0.0460      $ 0.0000      $ 0.0000      $ 0.0460  

April 2022

     $ 0.0460      $ 0.0000      $ 0.0000      $ 0.0460  

May 2022

     $ 0.0460      $ 0.0000      $ 0.0000      $ 0.0460  

June 2022

     $ 0.0460      $ 0.0000      $ 0.0000      $ 0.0460  
PIMCO California Municipal Income Fund                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0553      $ 0.0000      $ 0.0097      $ 0.0650  

February 2022

     $ 0.0546      $ 0.0000      $ 0.0104      $ 0.0650  

March 2022

     $ 0.0616      $ 0.0000      $ 0.0034      $ 0.0650  

April 2022

     $ 0.0561      $ 0.0000      $ 0.0089      $ 0.0650  

May 2022

     $ 0.0484      $ 0.0000      $ 0.0166      $ 0.0650  

June 2022

     $ 0.0443      $ 0.0000      $ 0.0207      $ 0.0650  

 

       
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Table of Contents
    (Unaudited)

 

PIMCO California Municipal Income Fund II                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0320      $ 0.0000      $ 0.0000      $ 0.0320  

February 2022

     $ 0.0315      $ 0.0000      $ 0.0005      $ 0.0320  

March 2022

     $ 0.0320      $ 0.0000      $ 0.0000      $ 0.0320  

April 2022

     $ 0.0320      $ 0.0000      $ 0.0000      $ 0.0320  

May 2022

     $ 0.0320      $ 0.0000      $ 0.0000      $ 0.0320  

June 2022

     $ 0.0293      $ 0.0000      $ 0.0027      $ 0.0320  
PIMCO California Municipal Income Fund III                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0380      $ 0.0000      $ 0.0000      $ 0.0380  

February 2022

     $ 0.0380      $ 0.0000      $ 0.0000      $ 0.0380  

March 2022

     $ 0.0380      $ 0.0000      $ 0.0000      $ 0.0380  

April 2022

     $ 0.0380      $ 0.0000      $ 0.0000      $ 0.0380  

May 2022

     $ 0.0380      $ 0.0000      $ 0.0000      $ 0.0380  

June 2022

     $ 0.0380      $ 0.0000      $ 0.0000      $ 0.0380  
PIMCO New York Municipal Income Fund III                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0317      $ 0.0000      $ 0.0038      $ 0.0355  

February 2022

     $ 0.0322      $ 0.0000      $ 0.0033      $ 0.0355  

March 2022

     $ 0.0348      $ 0.0000      $ 0.0007      $ 0.0355  

April 2022

     $ 0.0355      $ 0.0000      $ 0.0000      $ 0.0355  

May 2022

     $ 0.0287      $ 0.0000      $ 0.0068      $ 0.0355  

June 2022

     $ 0.0280      $ 0.0000      $ 0.0075      $ 0.0355  
PIMCO New York Municipal Income Fund                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0359      $ 0.0000      $ 0.0061      $ 0.0420  

February 2022

     $ 0.0351      $ 0.0000      $ 0.0069      $ 0.0420  

March 2022

     $ 0.0397      $ 0.0000      $ 0.0023      $ 0.0420  

April 2022

     $ 0.0405      $ 0.0000      $ 0.0015      $ 0.0420  

May 2022

     $ 0.0328      $ 0.0000      $ 0.0092      $ 0.0420  

June 2022

     $ 0.0320      $ 0.0000      $ 0.0100      $ 0.0420  
PIMCO New York Municipal Income Fund II                                  
           Net Investment
Income*
     Net Realized
Capital Gains*
     Paid-in Surplus or
Other Capital
Sources**
     Total (per
common share)
 

January 2022

     $ 0.0400      $ 0.0000      $ 0.0000      $ 0.0400  

February 2022

     $ 0.0400      $ 0.0000      $ 0.0000      $ 0.0400  

March 2022

     $ 0.0400      $ 0.0000      $ 0.0000      $ 0.0400  

April 2022

     $ 0.0400      $ 0.0000      $ 0.0000      $ 0.0400  

May 2022

     $ 0.0400      $ 0.0000      $ 0.0000      $ 0.0400  

June 2022

     $ 0.0400      $ 0.0000      $ 0.0000      $ 0.0400  

 

*

The source of dividends provided in the table differs, in some respects, from information presented in this report prepared in accordance with generally accepted accounting principles, or U.S. GAAP. For example, net earnings from certain interest rate swap contracts are included as a source of net investment income for purposes of Section 19(a). Accordingly, the information in the table may differ from information in the accompanying financial statements that are presented on the basis of U.S. GAAP and may differ from tax information presented in the footnotes. Amounts shown may include accumulated, as well as fiscal period net income and net profits.

**

Occurs when a fund distributes an amount greater than its accumulated net income and net profits. Amounts are not reflective of a fund’s net income, yield, earnings or investment performance.

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     91
    


Table of Contents
Changes to Boards of Trustees     (Unaudited)

 

Effective July 1, 2022, the Board of Trustees appointed Ms. Kathleen McCartney as a Class II Trustee of the Funds.

 

       
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Approval of Investment Management Agreement     (Unaudited)

 

PMF, PML, PMX, PNF, PNI, PCQ, PCK, PYN, PZC

 

The Investment Company Act of 1940, as amended (the “1940 Act”), requires that the Board of Trustees (the “Board” or the “Trustees”), including a majority of the Trustees who are not “interested persons,” as that term is defined in the 1940 Act (the “Independent Trustees”), of each of PIMCO Municipal Income Fund (“PMF”), PIMCO Municipal Income Fund II (“PML”), PIMCO Municipal Income Fund III (“PMX”), PIMCO New York Municipal Income Fund (“PNF”), PIMCO New York Municipal Income Fund II (“PNI”), PIMCO New York Municipal Income Fund III (“PYN”), PIMCO California Municipal Income Fund (“PCQ”), PIMCO California Municipal Income Fund II (“PCK”) and PIMCO California Municipal Income Fund III (“PZC”) (each, a “Fund” and, collectively, the “Funds”), voting separately, annually approve the continuation of the Investment Management Agreement between each Fund and Pacific Investment Management Company LLC (“PIMCO”) (each, an “Agreement” and, collectively, the “Agreements”). At an in-person meeting held on June 15-16, 2022 (the “Approval Meeting”), the Board, including the Independent Trustees, considered and unanimously approved the continuation of each Agreement for an additional one-year period commencing on August 1, 2022.

 

In addition to the Approval Meeting, the Contracts Committee (the “Committee”) and the Performance Committee of the Board held a joint meeting on May 16, 2022 to discuss materials provided by PIMCO in connection with the Trustees’ review of the Agreements. The annual contract review process also involved multiple discussions and meetings with members of the Committee and the full Committee (the Approval Meeting, together with such discussions and meetings, the “Contract Renewal Meetings”). Throughout the process, the Independent Trustees received legal advice from independent legal counsel that is experienced in 1940 Act matters and independent of PIMCO (“Independent Counsel”), and with whom they met separately from PIMCO during the Contract Renewal Meetings. Representatives from PIMCO attended portions of the Contract Renewal Meetings and responded to questions from the Independent Trustees. The Committee also received and reviewed a memorandum from Independent Counsel regarding the Trustees’ responsibilities in considering each Agreement and the fees paid thereunder.

 

In connection with their deliberations regarding the proposed continuation of the Agreements, the Board, including the Independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to reasonably be necessary to evaluate the terms of the Agreements. The Trustees also considered the nature, quality and extent of the various investment management, administrative and other services performed by PIMCO under the Agreements.

In evaluating each Agreement, the Board, including the Independent Trustees, reviewed extensive materials provided by PIMCO in response to questions, inclusive of follow-up inquiries, submitted by the Independent Trustees and Independent Counsel. The Board also met with senior representatives of PIMCO regarding its personnel, operations, and estimated profitability as they relate to the Funds. The Trustees also considered the broad range of information relevant to the annual contract review that is provided to the Board (including its various standing committees) at meetings throughout the year, including reports on investment performance based on net asset value (“NAV”), market value (both absolute and compared against its Broadridge Performance Universe (as defined below)) and distribution yield, use of leverage (if applicable), information regarding share price premiums and/or discounts, risks, and other portfolio information, including any use of derivatives, as well as periodic reports on, among other matters, pricing and valuation, quality and cost of portfolio trade execution, compliance, and shareholder and other services provided by PIMCO and its affiliates. To assist with their review, the Trustees reviewed summaries prepared by PIMCO that analyzed each Fund based on a number of factors, including fees/expenses, performance, distribution yield, and risk-based factors, as of December 31, 2021. Additionally, the Trustees considered the impact of significant market volatility that occurred before, during, and/or after the period for which information was requested in conducting its evaluation of PIMCO. They also considered, among other information, performance based on NAV and market value, investment objective and strategy, portfolio managers, assets under management, outstanding leverage, share price premium and/or discount information, annual fund operating expenses, total expense ratio and management fee comparisons between each Fund and its Broadridge Expense Group (as defined below), and estimated profitability to PIMCO from its relationship with each Fund. In considering the Broadridge Performance Universe and Broadridge Expense Group (both as defined below), the Trustees requested that PIMCO comment on whether the peer funds selected for each Fund by Broadridge Financial Solutions, Inc. (“Broadridge”) provided an appropriate comparison, and if not, whether PIMCO believes another peer group would provide a more appropriate comparison.

 

In addition to approving the continuation of each Agreement at the Approval Meeting, the Board noted that it had also approved, at a separate meeting of the Board on March 24-25, 2022, an immaterial amendment to each Agreement to provide that, by investing in PIMCO Funds: Private Account Portfolio Series – PIMCO Short-Term Floating NAV Portfolio III and/or PIMCO Funds: Private Account Portfolio Series — PIMCO Short Asset Portfolio, each a series of PIMCO Funds (the “Central Funds”), 0.005% of each Fund’s management fee will be designated as compensation for the investment advisory services

 

 

         SEMIANNUAL REPORT     |     JUNE 30, 2022     93
    


Table of Contents
Approval of Investment Management Agreement   (Cont.)  

 

PIMCO provides to the Central Funds, as applicable. The Trustees considered that the Central Funds are offered as cash management vehicles available only to the Funds and other registered investment companies (or series thereof) for which PIMCO serves as investment adviser and that the Central Funds do not pay an investment advisory fee to PIMCO. The Trustees considered that the fees payable by each Fund pursuant to the amendments will not increase or otherwise change, PIMCO’s level of services to the Funds under the Agreements will not be reduced in any way and that the amendments will have no effect on PIMCO’s profitability with respect to the Funds.

 

The Trustees’ conclusions as to the continuation of each Agreement were based on a comprehensive consideration of all information provided to the Trustees during the Contract Renewal Meetings and throughout the year and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, attributing different weights to various factors. The Trustees evaluated information available to them on a Fund-by-Fund basis, and their determinations were made separately in respect of each Fund.

 

Nature, Extent and Quality of Services

 

As part of their review, the Trustees received and considered descriptions of various functions performed by PIMCO for the Funds, such as portfolio management, compliance monitoring, portfolio trading practices, and oversight of third-party service providers. They also considered information regarding the overall organization and business functions of PIMCO, including, without limitation, information regarding senior management, portfolio managers and other personnel providing or proposed to provide investment management, administrative, and/or other services, and general corporate ownership and business operations unrelated to the Funds. The Trustees examined PIMCO’s abilities to provide high-quality investment management and other services to the Funds, noting PIMCO’s long history and experience in managing closed-end funds, such as the Funds, including experience monitoring discounts and premiums and complying with New York Stock Exchange (NYSE) requirements. Among other information, the Trustees considered the investment philosophy and research and decision-making processes of PIMCO; the breadth of each Fund’s investment universe; the experience of key advisory personnel of PIMCO responsible for portfolio management of the Funds; information regarding the Funds’ use of leverage; the ability of PIMCO to attract and retain capable personnel; the background and capabilities of the senior management and staff of PIMCO; the general process or philosophy for determining employee compensation; and the operational infrastructure, including technology and systems and cybersecurity measures, of PIMCO. The Trustees also considered actions

taken by PIMCO to manage the impact on each Fund and its portfolio holdings of market volatility during the time periods for which information was provided.

 

In addition, the Trustees noted the extensive range of services that PIMCO provides to the Funds beyond investment management services. In this regard, the Trustees reviewed the extent and quality of PIMCO’s services with respect to regulatory compliance and its ability to comply with the investment policies of the Funds; the compliance programs and risk controls of PIMCO (including the implementation of new policies and programs); the specific contractual obligations of PIMCO pursuant to the Agreements; the nature, extent, and quality of the supervisory and administrative services PIMCO is responsible for providing to the Funds; PIMCO’s risk management function; the time and resources PIMCO expends monitoring the leverage employed by the Funds, including the covenants and restrictions imposed by certain forms of leverage such as the Funds’ preferred shares; and conditions that might affect PIMCO’s ability to provide high-quality services to the Funds in the future under the Agreements, including, but not limited to, PIMCO’s financial condition and operational stability. The Trustees also took into account the entrepreneurial and business risk that PIMCO has undertaken as investment manager and sponsor of the Funds. Specifically, the Trustees considered that PIMCO’s responsibilities include continual management of investment, operational, enterprise, legal, regulatory, and compliance risks as they relate to the Funds. The Trustees also noted PIMCO’s activities under its contractual obligation to coordinate, oversee and supervise the Funds’ various outside service providers, including its negotiation of certain service providers’ fees and its due diligence and evaluation of service providers’ infrastructure, cybersecurity programs, compliance programs, and business continuity programs, among other matters. The Trustees also considered PIMCO’s ongoing development of its own infrastructure and information technology, including its proprietary software and applications, to support the Funds through, among other things, cybersecurity, business continuity planning, and risk management.

 

The Trustees concluded that PIMCO’s investment process, research capabilities and philosophy were well suited to each Fund given its investment objective and policies, that PIMCO would be able to continue to meet any reasonably foreseeable obligations under each Agreement, and that PIMCO would otherwise be able to continue to provide investment and non-investment services to each Fund of an appropriate extent and quality.

 

Fee and Expense Information

 

In assessing the reasonableness of each Fund’s fees and expenses under its Agreement, the Trustees requested and considered, among other information, the Fund’s management fee and its total expenses as a percentage of average net assets attributable to common shares

 

 

       
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and as a percentage of average total managed assets (including assets attributable both to common shares and specified leverage outstanding), in comparison to the management fees and other expenses of a group of industry peer funds identified by Broadridge as pursuing investment strategies with classifications/objectives similar to the Fund (for each Fund, its “Broadridge Expense Group”) as well as of a broader universe of peer funds identified by Broadridge (for each Fund, its “Broadridge Expense Universe”). In each case, the total expense ratio information was provided both inclusive and exclusive of interest and borrowing expenses. The Fund-specific fee and expense results discussed below were prepared and provided by Broadridge and were not independently verified by the Trustees. The Trustees noted that only leveraged closed-end funds were considered for inclusion in the Broadridge Expense Groups and Broadridge Expense Universes.

 

The Trustees considered information regarding the investment performance and fees for other funds and accounts managed by PIMCO, if any, including funds and accounts with comparable investment programs and/or principal investment strategies to those of the Funds, as well as certain other funds requested by the Trustees with broadly similar strategies and/or investment types. The Trustees considered information provided by PIMCO indicating that, in comparison to certain other products managed by PIMCO, including any open-end funds and exchange-traded funds with broadly similar strategies and/or investment types, there are additional portfolio management challenges in managing closed-end funds such as the Funds. For example, the challenges associated with managing closed-end funds may include investing in non-traditional and less liquid holdings, a greater use of leverage, issues relating to trading on a national securities exchange and managing a fund’s dividend practices. In addition, the Independent Trustees considered information provided by PIMCO as to the generally broader and more extensive services provided to the Funds in comparison to those provided to private funds or institutional or separate accounts; the higher demands placed on PIMCO to provide considerable shareholder services due to the volume of investors; the greater entrepreneurial, enterprise, and reputational risk in managing registered closed-end funds; and the expenses, and impact on PIMCO, associated with the more extensive regulatory and compliance requirements to which the Funds are subject in comparison to private funds or institutional or separate accounts. The Trustees were advised by PIMCO that, in light of these additional challenges and additional services, different pricing structures between closed-end funds and other products managed by PIMCO are to be expected, and that comparisons of pricing structures across these products may not always be apt comparisons, even where other products have comparable investment objectives and strategies to those of the Funds.

The Trustees also took into account that the Funds have preferred shares outstanding, which increases the amount of management fees payable by each Fund under its Agreement (because each Fund’s fees are calculated based on net assets, including assets attributable to preferred shares outstanding). In this regard, the Trustees took into account that PIMCO has a financial incentive for the Funds to use or continue to use leverage in the form of preferred shares, which may create a conflict of interest between PIMCO, on one hand, and the Funds’ common shareholders, on the other. Therefore, the Trustees noted that the total fees paid by each Fund to PIMCO under the Fund’s unified fee arrangement would therefore vary more with increases and decreases in leverage attributable to preferred shares than under a non-unified fee arrangement, all other things being equal. The Trustees considered information provided by PIMCO and related presentations as to why each Fund’s use of leverage continues to be appropriate and in the best interests of the respective Fund under current market conditions. The Trustees noted that each quarter they receive information from PIMCO comparing the recent, historical and projected costs of each Fund’s existing leverage arrangements against other available financing options, as well as information relating to PIMCO’s views regarding economic or other risks of maintaining those leverage arrangements and/or replacing them with alternate forms of financing. The Trustees also considered PIMCO’s representation that it will use leverage for the Funds solely as it determines to be in the best interests of the Funds from an investment perspective and without regard to the level of compensation PIMCO receives.

 

The Trustees noted that, for each Fund, the contractual and actual management fee rates for the Fund under its unified fee arrangement were above the median contractual and actual management fees of the other funds in its Broadridge Expense Group, calculated both on average net assets and on average total managed assets. However, in this regard, the Trustees took into account that each Fund’s unified fee arrangement covers substantially all of the Fund’s operating fees and expenses (“Operating Expenses”), and therefore, all other things being equal, would tend to be higher than the contractual management fee rates of other funds in the Broadridge Expense Group, which generally do not have a unified fee structure and instead incur Operating Expenses directly and in addition to the management fee. The Trustees determined that a comparison of each Fund’s total expense ratio with the total expense ratios of its Broadridge Expense Group would generally provide more meaningful comparisons than comparing contractual and actual management fee rates in isolation.

 

In this regard, the Trustees noted PIMCO’s view that the unified fee arrangements have benefited and will continue to benefit common shareholders because they provide an expense structure (including Operating Expenses) that is essentially fixed for the duration of the contractual period as a percentage of NAV (including assets

 

 

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Approval of Investment Management Agreement   (Cont.)  

 

attributable to preferred shares), making it more predictable under ordinary circumstances in comparison to other fee and expense structures, under which the Funds’ Operating Expenses (including certain third-party fees and expenses) could vary significantly over time. The Trustees also considered that the unified fee arrangements generally insulate the Funds and common shareholders from increases in applicable third-party and certain other expenses because PIMCO, rather than the Funds, would bear the risk of such increases (though the Trustees also noted that PIMCO would benefit from any reductions in such expenses).

 

Performance Information

 

Fund-specific comparative performance results for the Funds reviewed by the Trustees are discussed below. With respect to investment performance, the Trustees considered information regarding each Fund’s performance based on NAV and market value, as applicable, net of the Fund’s fees and expenses, both on an absolute basis and relative to the performance of its Broadridge Performance Universe (as defined below). The Trustees requested information provided by Broadridge regarding the investment performance of a broad universe of funds within the same investment classification/category that Broadridge determined are comparable to those of each Fund (for each Fund, its “Broadridge Performance Universe”). The comparative performance information was prepared and provided by Broadridge and was not independently verified by the Trustees. The Trustees also considered information regarding the Funds’ comparative yields and risk-adjusted returns. The Trustees recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. They further acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance. The Trustees considered information from PIMCO regarding the risks undertaken by each Fund, including the use of leverage, and PIMCO’s management and oversight of the Fund’s risk profile, including in instances where the Fund outperformed its Broadridge Performance Universe.

 

In addition, the Trustees considered matters bearing on the Funds and their advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting (by both the Board and its Performance Committee).

 

Profitability, Economies of Scale, and Fall-out Benefits

 

The Trustees considered estimated profitability analyses provided by PIMCO, which included, among other information, (i) PIMCO’s estimated pre- and post-distribution operating margin for each Fund, as well as PIMCO’s estimated pre- and post-distribution operating margin for all of the closed-end funds advised by PIMCO, including the

Funds (collectively, the “Estimated Margins”), in each case for the one-year period ended December 31, 2021; and (ii) a year-over-year comparison of PIMCO’s Estimated Margins for the one-year periods ended December 31, 2021, and December 31, 2020. The Trustees also took into account explanations from PIMCO regarding how certain of PIMCO’s corporate and shared expenses were allocated among the Funds and other funds and accounts managed by PIMCO for purposes of developing profitability estimates. Based on the profitability analyses provided by PIMCO, the Trustees determined, taking into account the various assumptions made, that such profitability did not appear to be excessive.

 

The Trustees also considered information regarding possible economies of scale in the operation of the Funds. The Trustees noted that the Funds do not currently have any breakpoints in their management fees. The Trustees considered that, as closed-end investment companies, the Funds do not continually offer new shares to raise additional assets (as does a typical open-end investment company), but may raise additional assets through follow-on offerings and dividend reinvestments and may also experience asset growth through investment performance and/or the increased use of leverage. The Trustees noted PIMCO’s assertion that it may share the benefits of potential economies of scale, if any, with the Funds and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology and cybersecurity measures, middle and back office support, legal and compliance, and fund administration logistics; senior management supervision and governance of those services; and the enhancement of services provided to the Funds in return for fees paid. The Trustees also considered that the unified fee arrangements provide inherent economies of scale because a Fund maintains competitive fixed unified fees even if the particular Fund’s assets decline and/or operating costs increase. The Trustees further considered that, in contrast, breakpoints may be used as a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Funds’ unified fee arrangements, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee arrangements protect shareholders, during the contractual period, from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure. The Trustees noted that PIMCO has made extensive investments in these areas.

 

Additionally, the Trustees considered so-called “fall-out benefits” to PIMCO, such as reputational value derived from serving as investment manager to the Funds and research, statistical and quotation services

 

 

       
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that PIMCO may receive from broker-dealers executing the Funds’ portfolio transactions on an agency basis.

 

Fund-by-Fund Analysis

 

With regard to the investment performance of each Fund and the fees charged to each Fund, the Board considered the following information. With respect to performance quintile rankings for a Fund compared to its Broadridge Performance Universe, the first quintile represents the highest (best) performance and the fifth quintile represents the lowest performance. The Board considered each Fund’s performance and fees in light of the limitations inherent in the methodology for determining such comparative groups.

 

PMF

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had first quintile performance for the one-, three-, five- and ten-year periods ended December 31, 2021.

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

 

PML

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had second quintile performance for the one-year period and first quintile performance for the three-, five- and ten-year periods ended December 31, 2021.

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

PMX

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had second quintile performance for the one-year period and first quintile performance for the three-, five- and ten-year periods ended December 31, 2021.

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

 

PCQ

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had first quintile performance for the one-, three-, five- and ten-year periods ended December 31, 2021.

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) was below the median total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets of the funds in its Broadridge Expense Group. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) was above the median total expense ratio (including interest and borrowing expenses) calculated on average total managed assets and below the median total expense ratio (including interest and borrowing expenses) calculated on average net assets of the funds in its Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

 

PCK

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had first quintile performance for the one-, three-, five- and ten-year periods ended December 31, 2021.

 

 

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Approval of Investment Management Agreement   (Cont.)  

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

 

PZC

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had first quintile performance for the one-, three-, five- and ten-year periods ended December 31, 2021.

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) was below the median total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets of the funds in its Broadridge Expense Group. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) was above the median total expense ratio (including interest and borrowing expenses) calculated on average total managed assets and below the median total expense ratio (including interest and borrowing expenses) calculated on average net assets of the funds in its Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

 

PNF

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had first quintile performance for the one, three-, five- and ten-year periods ended December 31, 2021.

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed

assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

 

PNI

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had first quintile performance for the one-, three-, five- and ten-year periods ended December 31, 2021.

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) was below the median total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets of the funds in its Broadridge Expense Group. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) was at the median total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets of the funds in its Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

 

PYN

 

With respect to the Fund’s common share total return performance (based on NAV) relative to its respective Broadridge Performance Universe, the Trustees noted that the Fund had first quintile performance for the one-, three-, five- and ten-year periods ended December 31, 2021.

 

The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) was below the median total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets of the funds in its Broadridge Expense Group. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) was above the median total expense ratio (including interest and borrowing expenses) calculated on both average total managed assets and average net assets of the funds in its Broadridge Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average total managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Broadridge Expense Group and Broadridge Expense Universe.

 

 

       
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Conclusion

 

After reviewing these and other factors described herein, the Trustees concluded, with respect to each Fund, within the context of their overall conclusions regarding the Agreements, and based on the information provided and related representations made by management, and in their business judgment, that they were satisfied with PIMCO’s responses and efforts relating to the investment performance of the Funds. The Trustees also concluded that the fees payable under the Agreements represent reasonable compensation in light of the nature, extent, and quality of the services provided by PIMCO. Based on their evaluation of factors that they deemed to be material, including, but not limited to, those factors described above, the Board, including the Independent Trustees, unanimously concluded that the continuation of the Agreements was in the interests of each Fund and its shareholders, and should be approved.

 

 

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General Information

 

Investment Manager

Pacific Investment Management Company LLC

650 Newport Center Drive,

Newport Beach, CA, 92660

 

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

 

Transfer Agent, Dividend Paying Agent and Registrar for Common Shares

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

 

Auction Agent, Transfer Agent, Dividend Paying Agent and Registrar for Auction Rate Preferred Shares

Deutsche Bank Trust Company Americas

60 Wall Street, 16th Floor

New York, NY 10005.

 

Transfer Agent, Dividend Paying Agent and Registrar for Variable Rate MuniFund Term Preferred Shares

The Bank of New York Mellon

240 Greenwich Street, 7E

New York, New York 10286

 

Legal Counsel

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199

 

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

 

This report is submitted for the general information of the shareholders of the Funds listed on the Report cover.


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LOGO

 

CEF4012SAR_063022


Table of Contents
Item 2.

Code of Ethics.

The information required by this Item 2 is only required in an annual report on this Form N-CSR.

 

Item 3.

Audit Committee Financial Expert.

The information required by this Item 3 is only required in an annual report on this Form N-CSR.

 

Item 4.

Principal Accountant Fees and Services.

The information required by this Item 4 is only required in an annual report on this Form N-CSR.

 

Item 5.

Audit Committee of Listed Registrants.

The information required by this Item 5 is only required in an annual report on this Form N-CSR.

 

Item 6.

Schedule of Investments.

The information required by this Item 6 is included as part of the semiannual reports to shareholders filed under Item 1 of this Form N-CSR.

 

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The information required by this Item 7 is only required in an annual report on this Form N-CSR.

 

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

 

  (a)

The information required by this Item 8(a) is only required in an annual report on this Form N-CSR.

 

  (b)

There have been no changes in any of the Portfolio Managers identified in the registrant’s previous annual report on Form N-CSR.

 

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None.

 

Item 10.

Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item.

 

Item 11.

Controls and Procedures.

 

  (a)

The principal executive officer and principal financial & accounting officer have concluded as of a date within 90 days of the filing date of this report, based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act), that the design of such procedures is effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

 

  (b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the last fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.


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None.

 

Item 13.

Exhibits.

 

(a)(1)

 

Exhibit 99.CODE—Code of Ethics is not applicable for semiannual reports.

(a)(2)

 

Exhibit 99.CERT—Certifications pursuant to Section  302 of the Sarbanes-Oxley Act of 2002.

(a)(3)

 

None.

(a)(4)

 

There was no change in the registrant’s independent public accountant for the period covered by the report.

(b)   

 

Exhibit 99.906CERT—Certifications pursuant to Section  906 of the Sarbanes-Oxley Act of 2002.


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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

PIMCO California Municipal Income Fund
By:   /s/     Eric D. Johnson
 

 

  Eric D. Johnson
  President (Principal Executive Officer)                        
Date: September 1, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:

  /s/     Eric D. Johnson
 

 

 

Eric D. Johnson

  President (Principal Executive Officer)
Date: September 1, 2022
By:   /s/     Bijal Y. Parikh
 

 

  Bijal Y. Parikh
  Treasurer (Principal Financial & Accounting Officer)
Date: September 1, 2022