N-CSR
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: 811-21076
PIMCO Municipal Income Fund II
(Exact name of registrant as specified in charter)
1633 Broadway, New York, NY 10019
(Address of principal executive offices)
Trent W. Walker
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: December 31, 2018
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.
| 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).
PIMCO CLOSED-END FUNDS
Annual Report
December 31, 2018
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
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual
shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website, pimco.com/literature, and you will be notified by mail each time
a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be
affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by visiting pimco.com/edelivery or by contacting your financial intermediary, such as a
broker-dealer or bank.
Beginning January 1, 2019, you may elect to receive all future reports in paper free of charge. If you own these shares through a financial
intermediary, such as a broker-dealer or bank, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can inform the Fund that you wish
to continue receiving paper copies of your shareholder reports by calling 844.337.4626. Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Fund or to all funds held in your
account if you invest through a financial intermediary, such as a broker-dealer or bank.
Table of Contents
Letter from the Chair of the Board & President
Dear Shareholder,
Following this letter is the PIMCO Closed-End Funds Annual Report, which covers the
12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during
the reporting period.
For the 12-month reporting period ended December 31,
2018
The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of
2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year.
Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.
The Federal
Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The
Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.
Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central
Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of
Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”
The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates
at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on
December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of
U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index
returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned
-4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned
-6.21% over the period.
The municipal (or “muni”) market experienced periods of volatility during the
reporting period. After declining over the first two months, the muni market posted positive returns during five of the next six months. The muni market then fell over the next two months, but finished strongly by rallying in November and December
2018. As was the case with the taxable U.S. bond market, munis were negatively impacted by rising interest rates, which tempered their gains during the year. All told, the Bloomberg Barclays Municipal Bond Index returned 1.28% during the 12 months
ended December 31, 2018.
Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work
diligently to meet your broad investment needs. For any questions regarding your PIMCO Closed-End Funds investments, please contact your 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 global viewpoints.
Sincerely,
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| Deborah A. DeCotis |
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Peter G. Strelow |
| Chair of the Board of Trustees |
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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.
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ANNUAL REPORT |
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DECEMBER 31, 2018 |
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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 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 U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Funds currently face a heightened level of interest rate
risk, especially since the Federal Reserve Board has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Federal Reserve Board continues to raise interest rates, there is a risk that
rates across the financial system may rise. 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.
Additionally, the
United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.
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. Laws, referenda, ordinances or regulations enacted in the future by Congress or state legislatures or the applicable governmental entity could extend the time for
payment of principal and/or interest, or impose other constraints on enforcement of such obligations, or on the ability of municipal issuers to levy taxes. 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. To enforce its rights in
the event of a default in the payment of interest or repayment of principal, or both, a Fund may take possession of and manage the assets securing the issuer’s obligations on such securities, which may increase the Fund’s operating
expenses. Any income derived from the Fund’s ownership or operation of such assets may not be tax-exempt.
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 high 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 use of derivatives may subject the Funds to greater
volatility than investments in traditional securities. The Funds may use derivative instruments for hedging purposes or as part of an investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk, interest
rate risk, market risk, call risk, credit risk, leverage risk, management risk and the risk that a Fund may not be able to close out a position when it would be most advantageous to do so. Changes in regulation relating to a Fund’s use of
derivatives and related instruments could potentially limit or impact a Fund’s ability to invest in derivatives, limit a Fund’s ability to employ certain strategies that use derivatives and/or adversely affect the value or performance of
derivatives and the Fund. Certain derivative transactions may have a leveraging effect on a Fund. For example, a small investment in a derivative instrument may have a significant impact on a Fund’s exposure to interest rates, currency exchange
rates or other investments. As a result, a relatively small price movement in an asset, instrument or component of the index underlying a derivative instrument may cause an immediate and substantial loss or gain, which translates into heightened
volatility in a Fund’s net asset value (“NAV”). A Fund may engage in such transactions regardless of whether the Fund owns the asset, instrument or components of the index underlying the derivative instrument. A Fund may invest a
significant portion of its assets in these types of instruments. If it does, a Fund’s investment exposure could far exceed the value of its portfolio securities and its investment performance could be primarily dependent upon securities it does
not own.
A Fund’s use of leverage creates the opportunity for increased income for the Fund’s common shareholders, but
also creates special risks. Leverage is a speculative technique that may expose a Fund to greater risk and increased costs. If shorter-term interest rates rise relative to the rate of return on a Fund’s portfolio, the interest and other costs
of leverage to the Fund could exceed the rate of return on the debt obligations and other investments held by the Fund, thereby reducing return to the Fund’s common shareholders. In addition, fees and expenses of any form of leverage used by a
Fund will be borne entirely by its common shareholders (and not by preferred shareholders, if any) and will reduce the investment return of the Fund’s common shares. Moreover, to make payments of interest and other loan costs, the
Funds may be forced to sell portfolio securities when it is not otherwise advantageous to do so. In addition, because the fees received by PIMCO are based on the daily net asset value of the
Funds (including any assets attributable to any preferred shares that may be outstanding), PIMCO has a financial incentive for the Funds to use certain forms of leverage, which may create a conflict of interest between PIMCO, on the one hand, and
the Funds’ common shareholders, on the other hand. There can be no assurance that a Fund’s use of leverage will result in a higher yield on its common shares, and it may result in losses. Leverage creates several major types of risks for a
Fund’s common shareholders, including (1) the likelihood of greater volatility of net asset value and market price of the Fund’s common shares, and of the investment return to the Fund’s common shareholders, than a comparable
portfolio without leverage; (2) the possibility either that the Fund’s common share dividends will fall if the interest and other costs of leverage rise, or that dividends paid on the Fund’s common shares will fluctuate because such
costs vary over time; and (3) the effects of leverage in a declining market or a rising interest rate environment, as leverage is likely to cause a greater decline in the net asset value of the Fund’s common shares than if the Fund were
not leveraged and may result in a greater decline in the market value of the Fund’s common shares. Moreover, to make payments of interest and other loan costs, a Fund may be forced to sell portfolio securities when it is not otherwise
advantageous to do so.
There is a risk that a Fund investing in a tender option bond program will not be considered the owner of
a tender option bond for federal income tax purposes, and thus will not be entitled to treat such interest as exempt from federal income tax. Certain tender option bonds may be illiquid or may become illiquid as a result of, among other things, a
credit rating downgrade, a payment default or a disqualification from tax-exempt status. A Fund’s investment in the securities issued by a tender option bond trust may involve greater risk and volatility
than an investment in a fixed rate bond, and the value of such securities may decrease significantly when market interest rates increase. Tender option bond trusts could be terminated due to market, credit or other events beyond the Funds’
control, which could require the Funds to dispose of portfolio investments at inopportune times and prices. A Fund may use a tender option bond program as a way of achieving leverage in its portfolio, in which case the Fund will be subject to
leverage risk.
High-yield bonds (commonly referred to as “junk bonds”) typically have a lower credit rating than other
bonds. Lower-rated bonds generally involve a greater risk to principal than higher-rated bonds. Further, markets for lower-rated bonds are typically less liquid than for higher-rated bonds, and public information is usually less abundant in markets
for lower-rated bonds. Thus, high yield investments increase the chance
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ANNUAL REPORT |
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DECEMBER 31, 2018 |
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5 |
Important Information About the Funds (Cont.)
that a Fund will lose money. PIMCO does not rely solely on credit ratings, and develops its own analysis of issuer credit quality. A Fund may purchase unrated securities (which are not rated by a
rating agency) if PIMCO determines that the security is of comparable quality to a rated security that a Fund may purchase. Unrated securities may be less liquid than comparable rated securities and involve the risk that PIMCO may not accurately
evaluate the security’s comparative credit quality, which could result in a Fund’s portfolio having a higher level of credit and/or high yield risk than PIMCO has estimated or desires for the Fund, and could negatively impact the
Fund’s performance and/or returns. Certain Funds may invest a substantial portion of their assets in unrated securities and therefore may be particularly subject to the associated risks. Analysis of the creditworthiness of issuers of high yield
securities may be more complex than for issuers of higher-quality debt obligations. To the extent that a Fund invests in high yield and/or unrated securities, the Fund’s success in achieving its investment objectives may depend more heavily on
the portfolio manager’s creditworthiness analysis than if the Fund invested exclusively in higher-quality and rated securities. The Funds may hold defaulted securities that may involve special considerations including bankruptcy proceedings,
other regulatory and legal restrictions affecting the Funds’ ability to trade, and the availability of prices from independent pricing services or dealer quotations. Defaulted obligations might be repaid only after lengthy workout or bankruptcy
proceedings, during which the issuer might not make any interest or other payments. Defaulted securities are often illiquid and may not be actively traded. Sales of securities in bankrupt companies at an acceptable price may be difficult and
differences compared to the value of the securities used by the Funds could be material. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.
Variable and floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates
do not rise as much, or as quickly, as interest rates in general. Conversely floating rate securities will not generally increase in value if interest rates decline. Inverse floating rate securities may decrease in value if interest rates increase.
Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When a Fund holds variable or floating rate securities, a decrease (or, in the case of inverse floating rate
securities, an increase) in market interest rates will adversely affect the income received from such securities and the NAV of the Funds’ shares.
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 breaches may involve unauthorized access to a Fund’s digital information systems (e.g., through
“hacking” or malicious software coding), but may also result from outside attacks such as denial-of-service attacks (i.e., efforts to make network services
unavailable to intended users). In addition, cyber security breaches involving a Fund’s third party service providers (including but not limited to advisers, sub-advisers, administrators, transfer agents,
custodians, distributors and other third parties), trading counterparties or issuers in which a Fund invests can also subject a Fund to many of the same risks associated with direct cyber security breaches. Moreover, cyber security breaches
involving trading counterparties or issuers in which a Fund invests could adversely impact such counterparties or issuers and cause the Fund’s investment to lose value.
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.
Like with
operational risk in general, the Funds have established business continuity plans and risk management systems designed to reduce the risks associated with cyber security. However, there are inherent limitations in these plans and systems, including
that certain risks may not have been identified, in large part because different or unknown threats may emerge in the future. As such, there is no guarantee that such efforts will succeed, especially because the Funds do not directly control the
cyber security systems of issuers in which a Fund may invest, trading counterparties or third party service providers to the Funds. There is also a risk that cyber security breaches may not be detected. The Funds and their shareholders could be
negatively impacted as a result.
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 and may trade at a price that is less than the initial offering price of such shares. Further, if a Fund’s shares trade at a price that is more than the initial offering price and/or the net asset value 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 net
asset value thereafter.
The Funds may be subject to various risks, including, but not limited to, the following: asset
allocation risk, credit risk, stressed securities risk, distressed and defaulted securities risk, corporate bond risk, high yield risk, market risk, issuer risk, liquidity risk, equity securities and related market risk, mortgage-related and other
asset-backed securities risk, extension risk, prepayment risk, privately issued mortgage-related securities risk, mortgage market/ subprime risk, currency risk, redenomination risk, non-diversification risk,
management risk, municipal bond risk, tender option bond risk, inflation-indexed security risk, senior debt risk, loans, participations and assignments risk, reinvestment risk, real estate risk, U.S. Government securities risk, foreign (non-U.S.) government securities risk, valuation risk, segregation and cover risk, focused investment risk, credit default swaps risk, event-linked securities risk, counterparty risk, preferred securities risk,
confidential information access risk, other investment companies risk, private placements risk, inflation/deflation risk, regulatory risk, tax risk, recent economic conditions risk, market disruptions and geopolitical risk, potential conflicts of
interest involving allocation of investment opportunities, repurchase agreements risk, securities lending risk, zero-coupon bond and
payment-in-kind securities risk, portfolio turnover risk, smaller company risk, short sale risk and convertible securities risk. A description of certain of these risks
is available in the Notes to Financial Statements of this report.
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.
The following table discloses the commencement of operations and diversification status of
each Fund:
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| Fund Name |
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Commencement
of Operations |
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Diversification
Status |
| PIMCO Municipal Income Fund |
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06/29/01 |
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Diversified |
| PIMCO Municipal Income Fund II |
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06/28/02 |
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Diversified |
| PIMCO Municipal Income Fund III |
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10/31/02 |
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Diversified |
| PIMCO California Municipal Income Fund |
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06/29/01 |
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Diversified |
| PIMCO California Municipal Income Fund II |
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06/28/02 |
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Diversified |
| PIMCO California Municipal Income Fund III |
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10/31/02 |
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Diversified |
| PIMCO New York Municipal Income Fund |
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06/29/01 |
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Non-diversified |
| PIMCO New York Municipal Income Fund II |
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06/28/02 |
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Non-diversified |
An investment in a Fund is not a deposit of a bank 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 Investment 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 original or any subsequent 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 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 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. The Proxy Policy has been adopted by the Funds
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ANNUAL REPORT |
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DECEMBER 31, 2018 |
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7 |
Important Information About the Funds (Cont.)
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 30, 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 http://www.sec.gov.
Each Fund files a complete schedule of its portfolio holdings with the SEC for the first and third quarters of its fiscal year on Form N-Q. A copy of each Fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and is available without charge, upon request by calling the Funds at
(844) 33-PIMCO and on the Funds’ website at www.pimco.com.
The SEC adopted a rule
that, beginning in 2021, will generally allow funds to fulfill their obligation to deliver shareholder reports to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically
available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of a Fund’s shareholder reports going forward may be found on the front cover of
this report.
PIMCO Municipal Income Fund
Allocation Breakdown as of 12/31/2018†§
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| Municipal Bonds & Notes |
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| Health, Hospital & Nursing Home Revenue |
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24.2% |
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| Highway Revenue Tolls |
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10.0% |
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| Tobacco Settlement Funded |
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|
7.1% |
|
|
|
| Natural Gas Revenue |
|
|
6.2% |
|
|
|
| Ad Valorem Property Tax |
|
|
5.9% |
|
|
|
| Miscellaneous Revenue |
|
|
5.6% |
|
|
|
| Electric Power & Light Revenue |
|
|
5.0% |
|
|
|
| Sales Tax Revenue |
|
|
4.1% |
|
|
|
| College & University Revenue |
|
|
3.9% |
|
|
|
| Industrial Revenue |
|
|
3.7% |
|
|
|
| Port, Airport & Marina Revenue |
|
|
3.5% |
|
|
|
| Special Assessment |
|
|
3.1% |
|
|
|
| Miscellaneous Taxes |
|
|
2.8% |
|
|
|
| Sewer Revenue |
|
|
2.6% |
|
|
|
| Income Tax Revenue |
|
|
2.3% |
|
|
|
| General Fund |
|
|
1.8% |
|
|
|
| Appropriations |
|
|
1.6% |
|
|
|
| Water Revenue |
|
|
1.5% |
|
|
|
| Nuclear Revenue |
|
|
1.1% |
|
|
|
| Other |
|
|
3.4% |
|
|
|
| Short-Term Instruments |
|
|
0.6% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial
derivative instruments, if any.
|
Fund Information (as of December 31,
2018)(1)
|
|
|
|
|
| Market Price |
|
|
$12.55 |
|
|
|
| NAV |
|
|
$12.36 |
|
|
|
| Premium/(Discount) to NAV |
|
|
1.54% |
|
|
|
| Market Price Distribution rate(2) |
|
|
5.71% |
|
|
|
| NAV Distribution rate(2) |
|
|
5.79% |
|
|
|
| Total Effective Leverage(3) |
|
|
47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended December 31, 2018 |
|
|
|
|
|
|
| |
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/29/01) |
|
| Market Price |
|
|
2.22% |
|
|
|
7.14% |
|
|
|
12.68% |
|
|
|
5.95% |
|
| NAV |
|
|
1.72% |
|
|
|
8.43% |
|
|
|
12.56% |
|
|
|
6.67% |
|
All Fund returns are net of fees and expenses.
| (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 made on Form 1099 DIV
sent to shareholders each January. |
| (3) |
Represents total effective leverage outstanding, as a percentage of total managed assets.
Total effective leverage consists of auction rate and variable rate munifund term 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 during the reporting period:
| » |
|
Select exposure within the revenue segment contributed to performance. |
| » |
|
Auction-rate preferred shares tendered at a discount contributed to performance. |
| » |
|
Select exposure within the special tax sector contributed to performance. |
| » |
|
Duration positioning detracted from performance, as municipal yields rose. |
| » |
|
Exposure to the electric utility sector detracted from performance, as the sector underperformed the general
municipal market. |
| » |
|
Lack of exposure to the housing sector detracted from performance, as the sector outperformed the general municipal
market. |
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
9 |
PIMCO Municipal Income Fund II
Allocation Breakdown as of 12/31/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
22.2% |
|
|
|
| Highway Revenue Tolls |
|
|
9.1% |
|
|
|
| Tobacco Settlement Funded |
|
|
8.8% |
|
|
|
| Ad Valorem Property Tax |
|
|
6.1% |
|
|
|
| Natural Gas Revenue |
|
|
6.0% |
|
|
|
| Electric Power & Light Revenue |
|
|
5.1% |
|
|
|
| Industrial Revenue |
|
|
5.1% |
|
|
|
| College & University Revenue |
|
|
4.7% |
|
|
|
| Miscellaneous Taxes |
|
|
4.5% |
|
|
|
| Miscellaneous Revenue |
|
|
4.3% |
|
|
|
| Sales Tax Revenue |
|
|
4.0% |
|
|
|
| Sewer Revenue |
|
|
3.6% |
|
|
|
| Income Tax Revenue |
|
|
2.0% |
|
|
|
| General Fund |
|
|
1.7% |
|
|
|
| Appropriations |
|
|
1.4% |
|
|
|
| Port, Airport & Marina Revenue |
|
|
1.2% |
|
|
|
| Water Revenue |
|
|
1.1% |
|
|
|
| Transit Revenue |
|
|
1.0% |
|
|
|
| Other |
|
|
5.5% |
|
|
|
| Short-Term Instruments |
|
|
2.6% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial
derivative instruments, if any.
|
Fund Information (as of December 31,
2018)(1)
|
|
|
|
|
| Market Price |
|
|
$13.31 |
|
|
|
| NAV |
|
|
$11.62 |
|
|
|
| Premium/(Discount) to NAV |
|
|
14.54% |
|
|
|
| Market Price Distribution rate(2) |
|
|
5.86% |
|
|
|
| NAV Distribution rate(2) |
|
|
6.71% |
|
|
|
| Total Effective Leverage(3) |
|
|
48% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended December 31, 2018 |
|
|
|
|
|
|
| |
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/28/02) |
|
| Market Price |
|
|
7.57% |
|
|
|
11.40% |
|
|
|
14.66% |
|
|
|
6.14% |
|
| NAV |
|
|
2.38% |
|
|
|
8.23% |
|
|
|
12.52% |
|
|
|
5.61% |
|
All Fund returns are net of fees and expenses.
| (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 made on Form 1099 DIV
sent to shareholders each January. |
| (3) |
Represents total effective leverage outstanding, as a percentage of total managed assets.
Total effective leverage consists of auction rate and variable rate munifund term 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 during the reporting period:
| » |
|
Select exposure to the revenue segment contributed to performance. |
| » |
|
Auction-rate preferred shares tendered at a discount contributed to performance. |
| » |
|
Select exposure to the special tax sector contributed to performance. |
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher.
|
| » |
|
Exposure to the electric utility sector detracted from performance, as the sector underperformed the broader
municipal market. |
| » |
|
Lack of exposure to the housing sector detracted from performance, as the sector outperformed the broader municipal
market. |
|
|
|
|
|
|
|
|
|
| 10 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
PIMCO Municipal Income Fund III
Allocation Breakdown as of 12/31/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
22.0% |
|
|
|
| Tobacco Settlement Funded |
|
|
9.8% |
|
|
|
| Highway Revenue Tolls |
|
|
7.8% |
|
|
|
| College & University Revenue |
|
|
6.0% |
|
|
|
| Ad Valorem Property Tax |
|
|
5.9% |
|
|
|
| Natural Gas Revenue |
|
|
5.8% |
|
|
|
| Electric Power & Light Revenue |
|
|
5.1% |
|
|
|
| Sewer Revenue |
|
|
3.9% |
|
|
|
| Miscellaneous Revenue |
|
|
3.9% |
|
|
|
| General Fund |
|
|
3.3% |
|
|
|
| Industrial Revenue |
|
|
3.3% |
|
|
|
| Recreational Revenue |
|
|
3.3% |
|
|
|
| Sales Tax Revenue |
|
|
3.3% |
|
|
|
| Income Tax Revenue |
|
|
2.9% |
|
|
|
| Port, Airport & Marina Revenue |
|
|
2.2% |
|
|
|
| Appropriations |
|
|
2.1% |
|
|
|
| Water Revenue |
|
|
2.0% |
|
|
|
| Transit Revenue |
|
|
1.4% |
|
|
|
| Nuclear Revenue |
|
|
1.1% |
|
|
|
| Other |
|
|
4.6% |
|
|
|
| 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 December 31,
2018)(1)
|
|
|
|
|
| Market Price |
|
|
$11.14 |
|
|
|
| NAV |
|
|
$10.49 |
|
|
|
| Premium/(Discount) to NAV |
|
|
6.20% |
|
|
|
| Market Price Distribution rate(2) |
|
|
6.01% |
|
|
|
| NAV Distribution rate(2) |
|
|
6.38% |
|
|
|
| Total Effective Leverage(3) |
|
|
47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended December 31, 2018 |
|
|
|
|
|
|
| |
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(10/31/02) |
|
| Market Price |
|
|
3.39% |
|
|
|
9.30% |
|
|
|
13.80% |
|
|
|
5.32% |
|
| NAV |
|
|
2.04% |
|
|
|
9.48% |
|
|
|
12.30% |
|
|
|
5.45% |
|
All Fund returns are net of fees and expenses.
| (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 made on Form 1099 DIV
sent to shareholders each January. |
| (3) |
Represents total effective leverage outstanding, as a percentage of total managed assets.
Total effective leverage consists of auction rate and variable rate munifund term 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 during the reporting period:
| » |
|
Select exposure within the revenue segment contributed to performance. |
| » |
|
Auction-rate preferred shares tendered at a discount contributed to performance. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market.
|
| » |
|
Duration positioning detracted from performance, as municipal yields rose over the period.
|
| » |
|
Exposure to the electric utility sector detracted from performance, as the sector underperformed the general
municipal market. |
| » |
|
Lack of exposure to the housing sector detracted from performance, as the sector underperformed the general
municipal market. |
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
11 |
PIMCO California Municipal Income Fund
Allocation Breakdown as of 12/31/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
| Ad Valorem Property Tax |
|
|
23.8% |
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
22.7% |
|
|
|
| Electric Power & Light Revenue |
|
|
8.6% |
|
|
|
| College & University Revenue |
|
|
8.1% |
|
|
|
| Lease (Abatement) |
|
|
7.8% |
|
|
|
| Tobacco Settlement Funded |
|
|
6.8% |
|
|
|
| Natural Gas Revenue |
|
|
5.7% |
|
|
|
| Local or Guaranteed Housing |
|
|
2.9% |
|
|
|
| Water Revenue |
|
|
2.0% |
|
|
|
| General Fund |
|
|
1.9% |
|
|
|
| Port, Airport & Marina Revenue |
|
|
1.7% |
|
|
|
| Transit Revenue |
|
|
1.3% |
|
|
|
| Sewer Revenue |
|
|
1.2% |
|
|
|
| Hotel Occupancy Tax |
|
|
1.2% |
|
|
|
| Special Assessment |
|
|
1.0% |
|
|
|
| Other |
|
|
3.2% |
|
|
|
| Short-Term Instruments |
|
|
0.1% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial
derivative instruments, if any.
|
Fund Information (as of December 31,
2018)(1)
|
|
|
|
|
| Market Price |
|
|
$16.15 |
|
|
|
| NAV |
|
|
$13.32 |
|
|
|
| Premium/(Discount) to NAV |
|
|
21.25% |
|
|
|
| Market Price Distribution rate(2) |
|
|
5.72% |
|
|
|
| NAV Distribution rate(2) |
|
|
6.94% |
|
|
|
| Total Effective Leverage(3) |
|
|
49% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended December 31, 2018 |
|
|
|
|
|
|
| |
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/29/01) |
|
| Market Price |
|
|
(0.66)% |
|
|
|
11.03% |
|
|
|
13.79% |
|
|
|
7.17% |
|
| NAV |
|
|
0.42% |
|
|
|
7.76% |
|
|
|
11.04% |
|
|
|
6.55% |
|
All Fund returns are net of fees and expenses.
| (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 made on Form 1099 DIV
sent to shareholders each January. |
| (3) |
Represents total effective leverage outstanding, as a percentage of total managed assets.
Total effective leverage consists of auction rate and variable rate munifund term 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 during the reporting period:
| » |
|
Auction-rate preferred shares tendered at a discount contributed to performance. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market.
|
| » |
|
Exposure to the lease-backed sector contributed to performance, as the sector outperformed the general municipal
market. |
| » |
|
Duration positioning detracted from performance, as municipal yields rose. |
| » |
|
Exposure to the industrial revenue sector detracted from performance, as the sector underperformed the general
municipal market. |
| » |
|
Exposure to the education sector detracted from performance, as the sector underperformed the general municipal
market. |
|
|
|
|
|
|
|
|
|
| 12 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
PIMCO California Municipal Income Fund II
Allocation Breakdown as of 12/31/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
| Ad Valorem Property Tax |
|
|
29.2% |
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
18.6% |
|
|
|
| Natural Gas Revenue |
|
|
6.9% |
|
|
|
| General Fund |
|
|
6.7% |
|
|
|
| Electric Power & Light Revenue |
|
|
6.3% |
|
|
|
| Tobacco Settlement Funded |
|
|
5.3% |
|
|
|
| Sewer Revenue |
|
|
3.7% |
|
|
|
| Lease (Abatement) |
|
|
3.2% |
|
|
|
| Tax Increment/Allocation Revenue |
|
|
3.0% |
|
|
|
| Port, Airport & Marina Revenue |
|
|
3.0% |
|
|
|
| College & University Revenue |
|
|
2.7% |
|
|
|
| Local or Guaranteed Housing |
|
|
2.5% |
|
|
|
| Highway Revenue Tolls |
|
|
1.9% |
|
|
|
| Special Tax |
|
|
1.3% |
|
|
|
| Hotel Occupancy Tax |
|
|
1.1% |
|
|
|
| Special Assessment |
|
|
1.0% |
|
|
|
| Other |
|
|
2.9% |
|
|
|
| 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 December 31,
2018)(1)
|
|
|
|
|
| Market Price |
|
|
$7.83 |
|
|
|
| NAV |
|
|
$8.29 |
|
|
|
| Premium/(Discount) to NAV |
|
|
(5.55)% |
|
|
|
| Market Price Distribution rate(2) |
|
|
5.36% |
|
|
|
| NAV Distribution rate(2) |
|
|
5.07% |
|
|
|
| Total Effective Leverage(3) |
|
|
47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended December 31, 2018 |
|
|
|
|
|
|
| |
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/28/02) |
|
| Market Price |
|
|
(19.01)% |
|
|
|
3.56% |
|
|
|
10.36% |
|
|
|
3.14% |
|
| NAV |
|
|
0.32% |
|
|
|
8.83% |
|
|
|
11.20% |
|
|
|
4.28% |
|
All Fund returns are net of fees and expenses.
| (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 made on Form 1099 DIV
sent to shareholders each January. |
| (3) |
Represents total effective leverage outstanding, as a percentage of total managed assets.
Total effective leverage consists of auction rate and variable rate munifund term 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 during the reporting period:
| » |
|
Auction-rate preferred shares tendered at a discount contributed to performance. |
| » |
|
Exposure to the general obligation segment contributed to performance, as the segment outperformed the broader
municipal market. |
| » |
|
Select exposure to the special tax sector contributed to performance. |
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher.
|
| » |
|
Exposure to the industrial revenue sector detracted from performance, as the sector underperformed the broader
municipal market. |
| » |
|
Exposure to the education sector detracted from performance, as the sector underperformed the broader municipal
market. |
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
13 |
PIMCO California Municipal Income Fund III
Allocation Breakdown as of 12/31/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
24.4% |
|
|
|
| Ad Valorem Property Tax |
|
|
22.8% |
|
|
|
| College & University Revenue |
|
|
8.6% |
|
|
|
| Tobacco Settlement Funded |
|
|
7.6% |
|
|
|
| Electric Power & Light Revenue |
|
|
6.5% |
|
|
|
| Natural Gas Revenue |
|
|
4.7% |
|
|
|
| Water Revenue |
|
|
4.3% |
|
|
|
| General Fund |
|
|
2.8% |
|
|
|
| Highway Revenue Tolls |
|
|
2.7% |
|
|
|
| Lease (Abatement) |
|
|
2.5% |
|
|
|
| Port, Airport & Marina Revenue |
|
|
2.4% |
|
|
|
| Sewer Revenue |
|
|
2.1% |
|
|
|
| Local or Guaranteed Housing |
|
|
1.8% |
|
|
|
| Special Tax |
|
|
1.6% |
|
|
|
| Transit Revenue |
|
|
1.2% |
|
|
|
| Special Assessment |
|
|
1.0% |
|
|
|
| Other |
|
|
3.0% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial
derivative instruments, if any.
|
Fund Information (as of December 31,
2018)(1)
|
|
|
|
|
| Market Price |
|
|
$9.53 |
|
|
|
| NAV |
|
|
$9.46 |
|
|
|
| Premium/(Discount) to NAV |
|
|
0.74% |
|
|
|
| Market Price Distribution rate(2) |
|
|
5.67% |
|
|
|
| NAV Distribution rate(2) |
|
|
5.71% |
|
|
|
| Total Effective Leverage(3) |
|
|
48% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended December 31,
2018 |
|
|
|
|
|
|
| |
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(10/31/02) |
|
| Market Price |
|
|
(3.49)% |
|
|
|
7.30% |
|
|
|
12.16% |
|
|
|
4.02% |
|
| NAV |
|
|
0.29% |
|
|
|
8.17% |
|
|
|
11.10% |
|
|
|
4.45% |
|
All Fund returns are net of fees and expenses.
| (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 made on Form 1099 DIV
sent to shareholders each January. |
| (3) |
Represents total effective leverage outstanding, as a percentage of total managed assets.
Total effective leverage consists of auction rate and variable rate munifund term 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 during the reporting period:
| » |
|
Auction-rate preferred shares tendered at a discount contributed to performance. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market.
|
| » |
|
Exposure to the pre-refunded sector contributed to performance, as the sector outperformed the general municipal
market. |
| » |
|
Duration positioning detracted from performance, as municipal yields rose over the period.
|
| » |
|
Exposure to the industrial revenue sector detracted from performance, as the sector underperformed the general
municipal market. |
| » |
|
Select exposure within the healthcare sector detracted from performance. |
|
|
|
|
|
|
|
|
|
| 14 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
PIMCO New York Municipal Income Fund
Allocation Breakdown as of 12/31/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
| College & University Revenue |
|
|
11.6% |
|
|
|
| Industrial Revenue |
|
|
10.8% |
|
|
|
| Tobacco Settlement Funded |
|
|
10.0% |
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
9.8% |
|
|
|
| Ad Valorem Property Tax |
|
|
9.2% |
|
|
|
| Transit Revenue |
|
|
8.6% |
|
|
|
| Water Revenue |
|
|
7.6% |
|
|
|
| Miscellaneous Revenue |
|
|
7.6% |
|
|
|
| Miscellaneous Taxes |
|
|
5.0% |
|
|
|
| Income Tax Revenue |
|
|
4.7% |
|
|
|
| Highway Revenue Tolls |
|
|
3.8% |
|
|
|
| Electric Power & Light Revenue |
|
|
3.8% |
|
|
|
| Port, Airport & Marina Revenue |
|
|
3.2% |
|
|
|
| Recreational Revenue |
|
|
2.1% |
|
|
|
| Other |
|
|
1.7% |
|
|
|
| Short-Term Instruments |
|
|
0.5% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial
derivative instruments, if any.
|
Fund Information (as of December 31,
2018)(1)
|
|
|
|
|
| Market Price |
|
|
$11.70 |
|
|
|
| NAV |
|
|
$11.29 |
|
|
|
| Premium/(Discount) to NAV |
|
|
3.63% |
|
|
|
| Market Price Distribution rate(2) |
|
|
5.85% |
|
|
|
| NAV Distribution rate(2) |
|
|
6.06% |
|
|
|
| Total Effective Leverage(3) |
|
|
43% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended December 31, 2018 |
|
|
|
|
|
|
| |
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/29/01) |
|
| Market Price |
|
|
(2.90)% |
|
|
|
9.00% |
|
|
|
12.11% |
|
|
|
4.81% |
|
| NAV |
|
|
(0.66)% |
|
|
|
7.84% |
|
|
|
10.25% |
|
|
|
4.91% |
|
All Fund returns are net of fees and expenses.
| (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 made on Form 1099 DIV
sent to shareholders each January. |
| (3) |
Represents total effective leverage outstanding, as a percentage of total managed assets.
Total effective leverage consists of auction rate 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 during the reporting period:
| » |
|
Auction-rate preferred shares tendered at a discount contributed to performance. |
| » |
|
Exposure to pre-refunded debt contributed to performance, as the sector outperformed the general municipal market.
|
| » |
|
Exposure to the healthcare sector contributed to performance, as the sector outperformed the general municipal
market. |
| » |
|
Duration positioning detracted from performance, as municipal yields rose. |
| » |
|
Exposure to the transportation sector detracted from performance, as the sector underperformed the general
municipal market. |
| » |
|
Lack of exposure to the housing sector detracted from performance, as the sector outperformed the general municipal
market. |
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
15 |
PIMCO New York Municipal Income Fund II
Allocation Breakdown as of 12/31/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
| College & University Revenue |
|
|
12.9% |
|
|
|
| Tobacco Settlement Funded |
|
|
10.5% |
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
9.9% |
|
|
|
| Port, Airport & Marina Revenue |
|
|
7.9% |
|
|
|
| Water Revenue |
|
|
7.1% |
|
|
|
| Miscellaneous Revenue |
|
|
6.9% |
|
|
|
| Income Tax Revenue |
|
|
6.7% |
|
|
|
| Industrial Revenue |
|
|
6.3% |
|
|
|
| Miscellaneous Taxes |
|
|
4.4% |
|
|
|
| Ad Valorem Property Tax |
|
|
4.3% |
|
|
|
| Lease (Abatement) |
|
|
4.3% |
|
|
|
| Electric Power & Light Revenue |
|
|
3.7% |
|
|
|
| Recreational Revenue |
|
|
3.4% |
|
|
|
| Transit Revenue |
|
|
2.9% |
|
|
|
| Sales Tax Revenue |
|
|
1.9% |
|
|
|
| Highway Revenue Tolls |
|
|
1.7% |
|
|
|
| Other |
|
|
2.8% |
|
|
|
| Short-Term Instruments |
|
|
2.4% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial
derivative instruments, if any.
|
Fund Information (as of December 31,
2018)(1)
|
|
|
|
|
| Market Price |
|
|
$10.47 |
|
|
|
| NAV |
|
|
$10.67 |
|
|
|
| Premium/(Discount) to NAV |
|
|
(1.87)% |
|
|
|
| Market Price Distribution rate(2) |
|
|
5.81% |
|
|
|
| NAV Distribution rate(2) |
|
|
5.70% |
|
|
|
| Total Effective Leverage(3) |
|
|
47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended December 31, 2018 |
|
|
|
|
|
|
| |
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/28/02) |
|
| Market Price |
|
|
(7.67)% |
|
|
|
6.96% |
|
|
|
11.32% |
|
|
|
4.50% |
|
| NAV |
|
|
1.09% |
|
|
|
8.38% |
|
|
|
10.58% |
|
|
|
5.07% |
|
All Fund returns are net of fees and expenses.
| (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 made on Form 1099 DIV
sent to shareholders each January. |
| (3) |
Represents total effective leverage outstanding, as a percentage of total managed assets.
Total effective leverage consists of auction rate and variable rate munifund term 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 during the reporting period:
| » |
|
Auction-rate preferred shares tendered at a discount contributed to performance. |
| » |
|
Select exposure to the revenue segment contributed to performance. |
| » |
|
Select exposure to the special tax sector contributed to performance. |
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher.
|
| » |
|
Exposure to the transportation sector detracted from performance, as the sector underperformed the broader
municipal market. |
| » |
|
Exposure to the electric utility sector detracted from performance, as the sector underperformed the broader
municipal market. |
|
|
|
|
|
|
|
|
|
| 16 |
|
PIMCO CLOSED-END FUNDS |
|
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(THIS PAGE INTENTIONALLY LEFT BLANK)
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ANNUAL REPORT |
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DECEMBER 31, 2018 |
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17 |
Financial Highlights
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Investment Operations |
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Less Distributions to
ARPS(b) |
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Less Distributions to Common Shareholders(c) |
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Selected Per Share Data for the Year
or Period Ended^: |
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Net Asset
Value
Beginning
of Year
or Period |
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Net
Investment
Income(a) |
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Net
Realized/
Unrealized
Gain (Loss) |
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From Net
Investment
Income |
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From Net
Realized
Capital
Gains |
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Net Increase
(Decrease)
in Net Assets
Applicable
to Common
Shareholders
Resulting
from
Operations |
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From Net
Investment
Income |
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From Net
Realized
Capital
Gains |
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Tax Basis
Return of
Capital |
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Total |
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Increase
Resulting from
Tender of
ARPS(b) |
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| PIMCO Municipal Income Fund |
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| 12/31/2018 |
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$ |
12.87 |
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$ |
0.89 |
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$ |
(0.65 |
) |
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$ |
(0.16 |
) |
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$ |
0.00 |
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$ |
0.08 |
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$ |
(0.72 |
) |
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$ |
0.00 |
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$ |
0.00 |
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$ |
(0.72 |
) |
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$ |
0.13 |
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| 12/31/2017 |
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12.44 |
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0.91 |
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0.36 |
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(0.10 |
) |
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0.00 |
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1.17 |
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(0.74 |
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0.00 |
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0.00 |
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(0.74 |
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0.00 |
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| 12/31/2016 |
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13.26 |
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0.90 |
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(0.68 |
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(0.06 |
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0.00 |
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0.16 |
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(0.98 |
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0.00 |
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0.00 |
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(0.98 |
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0.00 |
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05/01/2015 -
12/31/2015(g) |
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13.15 |
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0.65 |
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0.12 |
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(0.01 |
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0.00 |
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0.76 |
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(0.65 |
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0.00 |
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0.00 |
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(0.65 |
)(j) |
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0.00 |
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| 04/30/2015 |
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12.57 |
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0.93 |
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0.64 |
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(0.01 |
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0.00 |
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1.56 |
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(0.98 |
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0.00 |
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0.00 |
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(0.98 |
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0.00 |
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| 04/30/2014 |
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13.75 |
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0.94 |
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(1.13 |
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(0.01 |
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0.00 |
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(0.20 |
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(0.98 |
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0.00 |
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0.00 |
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(0.98 |
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0.00 |
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| PIMCO Municipal Income Fund II |
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| 12/31/2018 |
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$ |
12.13 |
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$ |
0.81 |
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$ |
(0.57 |
) |
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$ |
(0.13 |
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$ |
0.00 |
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$ |
0.11 |
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$ |
(0.78 |
) |
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$ |
0.00 |
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$ |
0.00 |
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$ |
(0.78 |
) |
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$ |
0.16 |
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| 12/31/2017 |
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11.81 |
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0.81 |
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0.37 |
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(0.08 |
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0.00 |
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1.10 |
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(0.78 |
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0.00 |
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0.00 |
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(0.78 |
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0.00 |
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| 12/31/2016 |
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12.39 |
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0.79 |
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(0.55 |
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(0.04 |
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0.00 |
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0.20 |
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(0.78 |
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0.00 |
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0.00 |
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(0.78 |
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0.00 |
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| 06/01/2015 - 12/31/2015(h) |
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12.11 |
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0.47 |
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0.28 |
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(0.01 |
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0.00 |
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0.74 |
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(0.46 |
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0.00 |
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0.00 |
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(0.46 |
)(j) |
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0.00 |
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| 05/31/2015 |
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11.94 |
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0.81 |
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0.15 |
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(0.01 |
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0.00 |
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0.95 |
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(0.78 |
) |
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0.00 |
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0.00 |
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(0.78 |
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0.00 |
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| 05/31/2014 |
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12.17 |
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0.81 |
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(0.25 |
) |
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(0.01 |
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0.00 |
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0.55 |
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(0.78 |
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0.00 |
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0.00 |
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(0.78 |
) |
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0.00 |
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| PIMCO Municipal Income Fund III |
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| 12/31/2018 |
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$ |
11.06 |
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$ |
0.76 |
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$ |
(0.57 |
) |
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$ |
(0.13 |
) |
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$ |
0.00 |
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$ |
0.06 |
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$ |
(0.67 |
) |
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$ |
(0.11 |
) |
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$ |
0.00 |
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$ |
(0.78 |
) |
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$ |
0.15 |
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| 12/31/2017 |
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10.67 |
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0.77 |
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0.38 |
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(0.08 |
) |
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0.00 |
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1.07 |
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(0.68 |
) |
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0.00 |
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0.00 |
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(0.68 |
) |
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0.00 |
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| 12/31/2016 |
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11.13 |
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0.77 |
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(0.44 |
) |
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(0.04 |
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0.00 |
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0.29 |
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(0.75 |
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0.00 |
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0.00 |
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(0.75 |
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0.00 |
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| 10/01/2015 - 12/31/2015(i) |
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10.88 |
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0.20 |
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0.24 |
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(0.00 |
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0.00 |
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0.44 |
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(0.19 |
) |
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0.00 |
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0.00 |
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(0.19 |
)(j) |
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0.00 |
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| 09/30/2016 |
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10.78 |
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0.78 |
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0.08 |
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(0.01 |
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0.00 |
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0.85 |
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(0.75 |
) |
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0.00 |
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0.00 |
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(0.75 |
) |
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0.00 |
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| 09/30/2015 |
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9.58 |
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0.75 |
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1.25 |
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(0.01 |
) |
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0.00 |
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1.99 |
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(0.79 |
) |
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0.00 |
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0.00 |
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(0.79 |
) |
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0.00 |
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| PIMCO California Municipal Income Fund |
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| 12/31/2018 |
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$ |
14.20 |
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$ |
0.92 |
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$ |
(0.94 |
) |
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$ |
(0.17 |
) |
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$ |
0.00 |
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$ |
(0.19 |
) |
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$ |
(0.92 |
) |
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$ |
0.00 |
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$ |
0.00 |
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$ |
(0.92 |
) |
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$ |
0.23 |
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| 12/31/2017 |
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|
13.83 |
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|
0.97 |
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|
0.43 |
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(0.11 |
) |
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0.00 |
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1.29 |
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(0.92 |
) |
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|
0.00 |
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|
0.00 |
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(0.92 |
) |
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|
0.00 |
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| 12/31/2016 |
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|
14.61 |
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0.95 |
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(0.75 |
) |
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(0.06 |
) |
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0.00 |
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|
0.14 |
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(0.92 |
) |
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|
0.00 |
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|
0.00 |
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(0.92 |
) |
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|
0.00 |
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| 05/01/2015 - 12/31/2015(g) |
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14.33 |
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0.65 |
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0.26 |
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(0.01 |
) |
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0.00 |
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0.90 |
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(0.62 |
) |
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0.00 |
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0.00 |
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(0.62 |
)(j) |
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0.00 |
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| 04/30/2015 |
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|
13.77 |
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0.95 |
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|
0.54 |
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(0.01 |
) |
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|
0.00 |
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|
1.48 |
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(0.92 |
) |
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|
0.00 |
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|
0.00 |
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(0.92 |
) |
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|
0.00 |
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| 04/30/2014 |
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|
14.71 |
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|
0.99 |
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(1.00 |
) |
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|
(0.01 |
) |
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|
0.00 |
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|
(0.02 |
) |
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|
(0.92 |
) |
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|
0.00 |
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|
0.00 |
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(0.92 |
) |
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|
0.00 |
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| PIMCO California Municipal Income Fund II |
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| 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 |
|
|
|
|
|
|
|
|
|
|
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|
| 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 |
|
|
|
|
|
|
|
|
|
|
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|
|
| 12/31/2016 |
|
|
8.95 |
|
|
|
0.62 |
|
|
|
(0.53 |
) |
|
|
(0.04 |
) |
|
|
0.00 |
|
|
|
0.05 |
|
|
|
(0.61 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.61 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
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|
|
| 06/01/2015 - 12/31/2015(h) |
|
|
8.69 |
|
|
|
0.38 |
|
|
|
0.27 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.64 |
|
|
|
(0.38 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.38 |
)(j) |
|
|
0.00 |
|
|
|
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|
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|
|
|
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|
| 05/31/2015 |
|
|
8.61 |
|
|
|
0.66 |
|
|
|
0.08 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.73 |
|
|
|
(0.65 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.65 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 05/31/2014 |
|
|
8.93 |
|
|
|
0.68 |
|
|
|
(0.26 |
) |
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.41 |
|
|
|
(0.66 |
) |
|
|
0.00 |
|
|
|
(0.07 |
) |
|
|
(0.73 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12/31/2016 |
|
|
10.31 |
|
|
|
0.65 |
|
|
|
(0.53 |
) |
|
|
(0.04 |
) |
|
|
0.00 |
|
|
|
0.08 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 10/01/2015 - 12/31/2015(i) |
|
|
10.08 |
|
|
|
0.17 |
|
|
|
0.24 |
|
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
0.41 |
|
|
|
(0.18 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.18 |
)(j) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 09/30/2016 |
|
|
10.02 |
|
|
|
0.68 |
|
|
|
0.11 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.78 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 09/30/2015 |
|
|
9.09 |
|
|
|
0.69 |
|
|
|
0.97 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.65 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12/31/2016 |
|
|
12.10 |
|
|
|
0.70 |
|
|
|
(0.45 |
) |
|
|
(0.05 |
) |
|
|
0.00 |
|
|
|
0.20 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
05/01/2015 -
12/31/2015(g) |
|
|
11.92 |
|
|
|
0.47 |
|
|
|
0.18 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.64 |
|
|
|
(0.46 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.46 |
)(j) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 04/31/2015 |
|
|
11.20 |
|
|
|
0.68 |
|
|
|
0.73 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.40 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 04/31/2014 |
|
|
12.04 |
|
|
|
0.67 |
|
|
|
(0.82 |
) |
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
(0.16 |
) |
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
| 18 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share |
|
|
Ratios/Supplemental Data |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
Net Asset
Value End of
Year or
Period |
|
|
Market Price
End of Year
or Period |
|
|
Total
Investment
Return(d) |
|
|
Net Assets
Applicable
to Common
Shareholders
(000s) |
|
|
Expenses(e)(f) |
|
|
Expenses
Excluding
Waivers(e)(f) |
|
|
Expenses
Excluding
Interest
Expense(e) |
|
|
Expenses
Excluding
Interest
Expense
and
Waivers(e) |
|
|
Net
Investment
Income (Loss)(e) |
|
|
ARPS
Asset
Coverage
Per Share(b) |
|
|
VMTP
Asset Coverage
Per Share** |
|
|
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
12.36 |
|
|
$ |
12.55 |
|
|
|
2.22 |
% |
|
$ |
318,313 |
|
|
|
1.77 |
% |
|
|
1.77 |
% |
|
|
1.23 |
% |
|
|
1.23 |
% |
|
|
7.16 |
% |
|
$ |
66,868 |
|
|
$ |
267,440 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
12.87 |
|
|
|
13.00 |
|
|
|
(4.44 |
) |
|
|
330,523 |
|
|
|
1.37 |
|
|
|
1.37 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
7.16 |
|
|
|
68,475 |
|
|
|
N/A |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
12.44 |
|
|
|
14.39 |
|
|
|
(0.71 |
) |
|
|
318,473 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
1.18 |
|
|
|
1.18 |
|
|
|
6.72 |
|
|
|
66,896 |
|
|
|
N/A |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
13.26 |
|
|
|
15.45 |
|
|
|
5.27 |
|
|
|
338,342 |
|
|
|
1.22 |
* |
|
|
1.22 |
* |
|
|
1.21 |
* |
|
|
1.21 |
* |
|
|
7.42 |
* |
|
|
69,516 |
|
|
|
N/A |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
13.15 |
|
|
|
15.38 |
|
|
|
21.47 |
|
|
|
334,775 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
1.22 |
|
|
|
1.22 |
|
|
|
7.12 |
|
|
|
69,049 |
|
|
|
N/A |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
12.57 |
|
|
|
13.58 |
|
|
|
(8.45 |
) |
|
|
319,155 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
1.27 |
|
|
|
1.27 |
|
|
|
7.74 |
|
|
|
66,993 |
|
|
|
N/A |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
11.62 |
|
|
$ |
13.31 |
|
|
|
7.57 |
% |
|
$ |
723,713 |
|
|
|
1.93 |
% |
|
|
1.93 |
% |
|
|
1.13 |
% |
|
|
1.13 |
% |
|
|
6.94 |
% |
|
$ |
74,285 |
|
|
$ |
297,110 |
|
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
12.13 |
|
|
|
13.18 |
|
|
|
14.85 |
|
|
|
751,337 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
1.10 |
|
|
|
1.10 |
|
|
|
6.74 |
|
|
|
76,136 |
|
|
|
N/A |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.81 |
|
|
|
12.22 |
|
|
|
3.90 |
|
|
|
727,513 |
|
|
|
1.16 |
|
|
|
1.16 |
|
|
|
1.08 |
|
|
|
1.08 |
|
|
|
6.27 |
|
|
|
74,548 |
|
|
|
N/A |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
12.39 |
|
|
|
12.51 |
|
|
|
6.56 |
|
|
|
760,212 |
|
|
|
1.11 |
* |
|
|
1.11 |
* |
|
|
1.10 |
* |
|
|
1.10 |
* |
|
|
6.57 |
* |
|
|
76,782 |
|
|
|
N/A |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
12.11 |
|
|
|
12.19 |
|
|
|
6.15 |
|
|
|
742,133 |
|
|
|
1.16 |
|
|
|
1.16 |
|
|
|
1.11 |
|
|
|
1.11 |
|
|
|
6.65 |
|
|
|
75,553 |
|
|
|
N/A |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.94 |
|
|
|
12.25 |
|
|
|
7.76 |
|
|
|
730,088 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
1.16 |
|
|
|
1.16 |
|
|
|
7.22 |
|
|
|
74,733 |
|
|
|
N/A |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
10.49 |
|
|
$ |
11.14 |
|
|
|
3.39 |
% |
|
$ |
345,557 |
|
|
|
1.89 |
% |
|
|
1.89 |
% |
|
|
1.19 |
% |
|
|
1.19 |
% |
|
|
7.11 |
% |
|
$ |
70,693 |
|
|
$ |
282,740 |
|
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.06 |
|
|
|
11.58 |
|
|
|
8.19 |
|
|
|
363,063 |
|
|
|
1.39 |
|
|
|
1.39 |
|
|
|
1.19 |
|
|
|
1.19 |
|
|
|
7.07 |
|
|
|
73,007 |
|
|
|
N/A |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10.67 |
|
|
|
11.37 |
|
|
|
5.33 |
|
|
|
349,423 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
1.13 |
|
|
|
1.13 |
|
|
|
6.80 |
|
|
|
71,211 |
|
|
|
N/A |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.13 |
|
|
|
11.51 |
|
|
|
6.70 |
|
|
|
363,382 |
|
|
|
1.19 |
* |
|
|
1.19 |
* |
|
|
1.17 |
* |
|
|
1.17 |
* |
|
|
7.09 |
* |
|
|
73,123 |
|
|
|
N/A |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10.88 |
|
|
|
10.97 |
|
|
|
9.65 |
|
|
|
355,368 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
1.17 |
|
|
|
1.17 |
|
|
|
7.14 |
|
|
|
72,006 |
|
|
|
N/A |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10.78 |
|
|
|
10.71 |
|
|
|
10.69 |
|
|
|
351,139 |
|
|
|
1.29 |
|
|
|
1.29 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
7.47 |
|
|
|
71,447 |
|
|
|
N/A |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
13.32 |
|
|
$ |
16.15 |
|
|
|
(0.66 |
)% |
|
$ |
250,306 |
|
|
|
2.10 |
% |
|
|
2.10 |
% |
|
|
1.23 |
% |
|
|
1.23 |
% |
|
|
6.80 |
% |
|
$ |
66,725 |
|
|
$ |
266,870 |
|
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
14.20 |
|
|
|
17.28 |
|
|
|
16.74 |
|
|
|
266,019 |
|
|
|
1.60 |
|
|
|
1.60 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
6.86 |
|
|
|
69,320 |
|
|
|
N/A |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
13.83 |
|
|
|
15.68 |
|
|
|
5.96 |
|
|
|
258,476 |
|
|
|
1.29 |
|
|
|
1.29 |
|
|
|
1.17 |
|
|
|
1.17 |
|
|
|
6.49 |
|
|
|
68,070 |
|
|
|
N/A |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
14.61 |
|
|
|
15.70 |
|
|
|
4.60 |
|
|
|
272,345 |
|
|
|
1.24 |
* |
|
|
1.24 |
* |
|
|
1.21 |
* |
|
|
1.21 |
* |
|
|
6.76 |
* |
|
|
70,388 |
|
|
|
N/A |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
14.33 |
|
|
|
15.66 |
|
|
|
16.08 |
|
|
|
266,838 |
|
|
|
1.32 |
|
|
|
1.32 |
|
|
|
1.22 |
|
|
|
1.22 |
|
|
|
6.67 |
|
|
|
69,473 |
|
|
|
N/A |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
13.77 |
|
|
|
14.38 |
|
|
|
0.61 |
|
|
|
255,751 |
|
|
|
1.36 |
|
|
|
1.36 |
|
|
|
1.27 |
|
|
|
1.27 |
|
|
|
7.55 |
|
|
|
67,624 |
|
|
|
N/A |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
8.29 |
|
|
$ |
7.83 |
|
|
|
(19.01 |
)% |
|
$ |
265,245 |
|
|
|
1.88 |
% |
|
|
1.88 |
% |
|
|
1.29 |
% |
|
|
1.29 |
% |
|
|
6.51 |
% |
|
$ |
65,675 |
|
|
$ |
262,670 |
|
|
|
37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
8.69 |
|
|
|
10.17 |
|
|
|
17.31 |
|
|
|
277,787 |
|
|
|
1.49 |
|
|
|
1.49 |
|
|
|
1.24 |
|
|
|
1.24 |
|
|
|
6.94 |
|
|
|
67,590 |
|
|
|
N/A |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
8.39 |
|
|
|
9.20 |
|
|
|
(1.58 |
) |
|
|
267,645 |
|
|
|
1.37 |
|
|
|
1.37 |
|
|
|
1.22 |
|
|
|
1.22 |
|
|
|
6.84 |
|
|
|
66,042 |
|
|
|
N/A |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
8.95 |
|
|
|
9.94 |
|
|
|
6.19 |
|
|
|
285,097 |
|
|
|
1.25 |
* |
|
|
1.25 |
* |
|
|
1.23 |
* |
|
|
1.23 |
* |
|
|
7.42 |
* |
|
|
68,724 |
|
|
|
N/A |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
8.69 |
|
|
|
9.75 |
|
|
|
9.85 |
|
|
|
276,525 |
|
|
|
1.32 |
|
|
|
1.32 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
7.48 |
|
|
|
67,411 |
|
|
|
N/A |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
8.61 |
|
|
|
9.52 |
|
|
|
(1.76 |
) |
|
|
273,289 |
|
|
|
1.41 |
|
|
|
1.41 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
8.51 |
|
|
|
66,915 |
|
|
|
N/A |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
9.46 |
|
|
$ |
9.53 |
|
|
|
(3.49 |
)% |
|
$ |
210,974 |
|
|
|
2.13 |
% |
|
|
2.13 |
% |
|
|
1.25 |
% |
|
|
1.25 |
% |
|
|
6.70 |
% |
|
$ |
67,188 |
|
|
$ |
268,720 |
|
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
9.98 |
|
|
|
10.44 |
|
|
|
(2.46 |
) |
|
|
221,976 |
|
|
|
1.65 |
|
|
|
1.65 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
6.77 |
|
|
|
69,379 |
|
|
|
N/A |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
9.67 |
|
|
|
11.34 |
|
|
|
1.27 |
|
|
|
214,646 |
|
|
|
1.33 |
|
|
|
1.33 |
|
|
|
1.19 |
|
|
|
1.19 |
|
|
|
6.31 |
|
|
|
67,922 |
|
|
|
N/A |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10.31 |
|
|
|
11.92 |
|
|
|
10.76 |
|
|
|
228,221 |
|
|
|
1.25 |
* |
|
|
1.25 |
* |
|
|
1.21 |
* |
|
|
1.21 |
* |
|
|
6.44 |
* |
|
|
70,641 |
|
|
|
N/A |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10.08 |
|
|
|
10.94 |
|
|
|
12.80 |
|
|
|
223,030 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
6.68 |
|
|
|
69,605 |
|
|
|
N/A |
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10.02 |
|
|
|
10.40 |
|
|
|
19.73 |
|
|
|
221,415 |
|
|
|
1.37 |
|
|
|
1.37 |
|
|
|
1.26 |
|
|
|
1.26 |
|
|
|
7.29 |
|
|
|
69,282 |
|
|
|
N/A |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
11.29 |
|
|
$ |
11.70 |
|
|
|
(2.90 |
)% |
|
$ |
87,913 |
|
|
|
1.81 |
% |
|
|
1.81 |
% |
|
|
1.27 |
% |
|
|
1.27 |
% |
|
|
6.11 |
% |
|
$ |
78,545 |
|
|
|
N/A |
|
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
12.06 |
|
|
|
12.78 |
|
|
|
13.44 |
|
|
|
93,564 |
|
|
|
1.55 |
|
|
|
1.55 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
5.73 |
|
|
|
74,749 |
|
|
|
N/A |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.62 |
|
|
|
11.91 |
|
|
|
5.71 |
|
|
|
89,825 |
|
|
|
1.36 |
|
|
|
1.36 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
5.69 |
|
|
|
72,769 |
|
|
|
N/A |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
12.10 |
|
|
|
11.90 |
|
|
|
7.23 |
|
|
|
93,205 |
|
|
|
1.27 |
* |
|
|
1.27 |
* |
|
|
1.26 |
* |
|
|
1.26 |
* |
|
|
5.82 |
* |
|
|
74,574 |
|
|
|
N/A |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.92 |
|
|
|
11.54 |
|
|
|
7.72 |
|
|
|
91,832 |
|
|
|
1.39 |
|
|
|
1.39 |
|
|
|
1.31 |
|
|
|
1.31 |
|
|
|
5.78 |
|
|
|
73,847 |
|
|
|
N/A |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.20 |
|
|
|
11.36 |
|
|
|
(3.21 |
) |
|
|
86,211 |
|
|
|
1.46 |
|
|
|
1.46 |
|
|
|
1.40 |
|
|
|
1.40 |
|
|
|
6.28 |
|
|
|
70,857 |
|
|
|
N/A |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
19 |
Financial Highlights (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Investment Operations |
|
|
Less Distributions to
ARPS(b) |
|
|
|
|
|
Less Distributions to Common Shareholders(c) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Per Share Data for the Year
or Period Ended^: |
|
Net Asset
Value
Beginning
of Year
or Period |
|
|
Net
Investment
Income(a) |
|
|
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(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12/31/2016 |
|
|
11.41 |
|
|
|
0.72 |
|
|
|
(0.57 |
) |
|
|
(0.05 |
) |
|
|
0.00 |
|
|
|
0.10 |
|
|
|
(0.76 |
) |
|
|
0.00 |
|
|
|
(0.04 |
) |
|
|
(0.80 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/01/2015 - 12/31/2015(h) |
|
|
11.28 |
|
|
|
0.43 |
|
|
|
0.17 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.59 |
|
|
|
(0.46 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.46 |
)(j) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 05/31/2015 |
|
|
10.98 |
|
|
|
0.75 |
|
|
|
0.36 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.10 |
|
|
|
(0.80 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.80 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 05/31/2014 |
|
|
11.32 |
|
|
|
0.75 |
|
|
|
(0.28 |
) |
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.46 |
|
|
|
(0.80 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.80 |
) |
|
|
0.00 |
|
| ^ |
A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.
|
| ** |
Variable Rate MuniFund Term Preferred Shares (“VMTP”). See Note 12, Variable Rate
MuniFund Term Preferred Shares, in the Notes to the Financial Statements for more information. |
| (a) |
Per share amounts based on average number of common shares outstanding during the year or
period. |
| (b) |
Auction Rate Preferred Shares (“ARPS”). See Note 12, Auction Rate Preferred Shares,
in the Notes to Financial Statements for more information. |
| (c) |
The tax characterization of distributions is determined in accordance with Federal income tax
regulations. See Note 2, Distributions — Common Shares, in the Notes to Financial Statements for more information. |
| (d) |
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. |
| (e) |
Calculated on the basis of income and expenses applicable to both common and preferred shares
relative to the average net assets of common shareholders. |
| (f) |
Ratio includes interest expense which primarily relates to participation in borrowing and
financing transactions, dividends paid to VMTP shareholders and the amortization of debt issuance costs of VMTP Shares. See Note 5, Borrowings and Other Financing Transactions and Note 12, Variable Rate MuniFund Term Preferred Shares in the Notes to
Financial Statements for more information. |
| (g) |
Fiscal year end changed from April 30th
to December 31st. |
| (h) |
Fiscal year end changed from May 31st to
December 31st. |
| (i) |
Fiscal year end changed from September
30th to December 31st. |
| (j) |
Total distributions for the period ended December 31, 2015 may be lower than prior
fiscal years due to fiscal year end changes resulting in a reduction of the amount of days in the period ended December 31, 2015. |
|
|
|
|
|
|
|
|
|
| 20 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share |
|
|
Ratios/Supplemental Data |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
Net Asset
Value End of
Year or
Period |
|
|
Market Price
End of Year
or Period |
|
|
Total
Investment
Return(d) |
|
|
Net Assets
Applicable
to Common
Shareholders
(000s) |
|
|
Expenses(e)(f) |
|
|
Expenses
Excluding
Waivers(e)(f) |
|
|
Expenses
Excluding
Interest
Expense(e) |
|
|
Expenses
Excluding
Interest
Expense
and
Waivers(e) |
|
|
Net
Investment
Income (Loss)(e) |
|
|
ARPS
Asset
Coverage
Per Share(b) |
|
|
VMTP
Asset Coverage
Per Share** |
|
|
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
10.67 |
|
|
$ |
10.47 |
|
|
|
(7.67 |
)% |
|
$ |
119,014 |
|
|
|
2.15 |
% |
|
|
2.15 |
% |
|
|
1.40 |
% |
|
|
1.40 |
% |
|
|
6.64 |
% |
|
$ |
62,655 |
|
|
$ |
250,600 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.17 |
|
|
|
12.00 |
|
|
|
5.77 |
|
|
|
124,295 |
|
|
|
1.63 |
|
|
|
1.63 |
|
|
|
1.35 |
|
|
|
1.35 |
|
|
|
6.51 |
|
|
|
64,320 |
|
|
|
N/A |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10.71 |
|
|
|
11.98 |
|
|
|
3.28 |
|
|
|
118,817 |
|
|
|
1.42 |
|
|
|
1.42 |
|
|
|
1.33 |
|
|
|
1.33 |
|
|
|
6.22 |
|
|
|
62,593 |
|
|
|
N/A |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.41 |
|
|
|
12.35 |
|
|
|
4.36 |
|
|
|
126,085 |
|
|
|
1.35 |
* |
|
|
1.35 |
* |
|
|
1.33 |
* |
|
|
1.33 |
* |
|
|
6.48 |
* |
|
|
64,898 |
|
|
|
N/A |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
11.28 |
|
|
|
12.32 |
|
|
|
9.89 |
|
|
|
124,424 |
|
|
|
1.40 |
|
|
|
1.40 |
|
|
|
1.33 |
|
|
|
1.33 |
|
|
|
6.65 |
|
|
|
64,373 |
|
|
|
N/A |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10.98 |
|
|
|
12.01 |
|
|
|
7.83 |
|
|
|
120,520 |
|
|
|
1.51 |
|
|
|
1.51 |
|
|
|
1.45 |
|
|
|
1.45 |
|
|
|
7.30 |
|
|
|
63,139 |
|
|
|
N/A |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
21 |
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* |
|
$ |
589,458 |
|
|
$ |
1,380,355 |
|
|
$ |
641,533 |
|
|
$ |
486,937 |
|
| Cash |
|
|
0 |
|
|
|
0 |
|
|
|
1 |
|
|
|
1 |
|
| Interest and/or dividends receivable |
|
|
7,664 |
|
|
|
16,222 |
|
|
|
7,774 |
|
|
|
6,899 |
|
| Other assets |
|
|
46 |
|
|
|
1,020 |
|
|
|
55 |
|
|
|
45 |
|
| Total Assets |
|
|
597,168 |
|
|
|
1,397,597 |
|
|
|
649,363 |
|
|
|
493,882 |
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Borrowings & Other Financing
Transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for tender option bond floating rate
certificates |
|
$ |
86,762 |
|
|
$ |
298,694 |
|
|
$ |
112,388 |
|
|
$ |
91,729 |
|
| Variable Rate MuniFund Term Preferred Shares, at liquidation
value** |
|
|
23,130 |
|
|
|
68,328 |
|
|
|
34,087 |
|
|
|
29,106 |
|
| Payable for investments purchased |
|
|
0 |
|
|
|
3,045 |
|
|
|
0 |
|
|
|
0 |
|
| Distributions payable to common shareholders |
|
|
1,537 |
|
|
|
4,048 |
|
|
|
1,835 |
|
|
|
1,446 |
|
| Distributions payable to auction rate preferred
shareholders |
|
|
68 |
|
|
|
122 |
|
|
|
62 |
|
|
|
45 |
|
| Accrued management fees |
|
|
294 |
|
|
|
613 |
|
|
|
310 |
|
|
|
232 |
|
| Other liabilities |
|
|
364 |
|
|
|
759 |
|
|
|
424 |
|
|
|
393 |
|
| Total Liabilities |
|
|
112,155 |
|
|
|
375,609 |
|
|
|
149,106 |
|
|
|
122,951 |
|
|
|
|
|
|
| Auction Rate Preferred Shares ($0.00001 par value and
$25,000 liquidation preference per share) |
|
|
166,700 |
|
|
|
298,275 |
|
|
|
154,700 |
|
|
|
120,625 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders |
|
$ |
318,313 |
|
|
$ |
723,713 |
|
|
$ |
345,557 |
|
|
$ |
250,306 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders Consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par value^ |
|
$ |
0 |
|
|
$ |
1 |
|
|
$ |
0 |
|
|
$ |
0 |
|
| Paid in capital in excess of par |
|
|
286,423 |
|
|
|
651,991 |
|
|
|
313,665 |
|
|
|
226,580 |
|
| Distributable earnings (accumulated loss) |
|
|
31,890 |
|
|
|
71,721 |
|
|
|
31,892 |
|
|
|
23,726 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders |
|
$ |
318,313 |
|
|
$ |
723,713 |
|
|
$ |
345,557 |
|
|
$ |
250,306 |
|
|
|
|
|
|
| Net Asset Value Per Common Share |
|
$ |
12.36 |
|
|
$ |
11.62 |
|
|
$ |
10.49 |
|
|
$ |
13.32 |
|
|
|
|
|
|
| Common Shares Outstanding |
|
|
25,751 |
|
|
|
62,282 |
|
|
|
32,943 |
|
|
|
18,784 |
|
|
|
|
|
|
| Auction Rate Preferred Shares Issued and
Outstanding |
|
|
7 |
|
|
|
12 |
|
|
|
6 |
|
|
|
5 |
|
|
|
|
|
|
| Cost of investments in securities |
|
$ |
559,144 |
|
|
$ |
1,322,995 |
|
|
$ |
608,202 |
|
|
$ |
470,414 |
|
|
|
|
|
|
| * Includes repurchase agreements of: |
|
$ |
3,248 |
|
|
$ |
36,462 |
|
|
$ |
1,750 |
|
|
$ |
229 |
|
|
|
|
|
|
| ** Includes unamortized debt issuance cost of: |
|
$ |
170 |
|
|
$ |
372 |
|
|
$ |
213 |
|
|
$ |
193 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
|
|
|
|
|
|
|
|
|
| 22 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
496,094 |
|
|
$ |
405,137 |
|
|
$ |
151,743 |
|
|
$ |
222,793 |
|
| |
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1 |
|
| |
6,380 |
|
|
|
5,515 |
|
|
|
2,022 |
|
|
|
2,701 |
|
| |
25 |
|
|
|
28 |
|
|
|
531 |
|
|
|
11 |
|
| |
502,499 |
|
|
|
410,680 |
|
|
|
154,296 |
|
|
|
225,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
72,613 |
|
|
$ |
73,334 |
|
|
$ |
24,755 |
|
|
$ |
26,348 |
|
| |
34,087 |
|
|
|
26,915 |
|
|
|
0 |
|
|
|
20,840 |
|
| |
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| |
1,120 |
|
|
|
1,003 |
|
|
|
444 |
|
|
|
566 |
|
| |
53 |
|
|
|
44 |
|
|
|
22 |
|
|
|
17 |
|
| |
248 |
|
|
|
197 |
|
|
|
82 |
|
|
|
119 |
|
| |
458 |
|
|
|
338 |
|
|
|
55 |
|
|
|
602 |
|
| |
108,579 |
|
|
|
101,831 |
|
|
|
25,358 |
|
|
|
48,492 |
|
|
|
|
|
| |
128,675 |
|
|
|
97,875 |
|
|
|
41,025 |
|
|
|
58,000 |
|
|
|
|
|
| $ |
265,245 |
|
|
$ |
210,974 |
|
|
$ |
87,913 |
|
|
$ |
119,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
| |
235,767 |
|
|
|
196,136 |
|
|
|
82,603 |
|
|
|
113,648 |
|
| |
29,478 |
|
|
|
14,838 |
|
|
|
5,310 |
|
|
|
5,366 |
|
|
|
|
|
| $ |
265,245 |
|
|
$ |
210,974 |
|
|
$ |
87,913 |
|
|
$ |
119,014 |
|
|
|
|
|
| $ |
8.29 |
|
|
$ |
9.46 |
|
|
$ |
11.29 |
|
|
$ |
10.67 |
|
|
|
|
|
| |
31,997 |
|
|
|
22,293 |
|
|
|
7,790 |
|
|
|
11,158 |
|
|
|
|
|
| |
5 |
|
|
|
4 |
|
|
|
2 |
|
|
|
2 |
|
|
|
|
|
| $ |
470,449 |
|
|
$ |
390,699 |
|
|
$ |
147,348 |
|
|
$ |
214,178 |
|
|
|
|
|
| $ |
3,336 |
|
|
$ |
190 |
|
|
$ |
742 |
|
|
$ |
5,433 |
|
|
|
|
|
| $ |
213 |
|
|
$ |
185 |
|
|
$ |
0 |
|
|
$ |
160 |
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
23 |
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
|
$ |
28,650 |
|
|
$ |
64,634 |
|
|
$ |
31,677 |
|
|
$ |
22,664 |
|
| Total Income |
|
|
28,650 |
|
|
|
64,634 |
|
|
|
31,677 |
|
|
|
22,664 |
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Management fees |
|
|
3,598 |
|
|
|
7,502 |
|
|
|
3,808 |
|
|
|
2,849 |
|
| Trustee fees and related expenses |
|
|
45 |
|
|
|
95 |
|
|
|
48 |
|
|
|
36 |
|
| Interest expense |
|
|
1,743 |
|
|
|
5,826 |
|
|
|
2,471 |
|
|
|
2,221 |
|
| Auction agent fees and commissions |
|
|
203 |
|
|
|
422 |
|
|
|
230 |
|
|
|
153 |
|
| Auction rate preferred shares related expenses |
|
|
109 |
|
|
|
236 |
|
|
|
134 |
|
|
|
119 |
|
| Miscellaneous expense |
|
|
3 |
|
|
|
19 |
|
|
|
17 |
|
|
|
10 |
|
| Total Expenses |
|
|
5,701 |
|
|
|
14,100 |
|
|
|
6,708 |
|
|
|
5,388 |
|
|
|
|
|
|
| Net Investment Income (Loss) |
|
|
22,949 |
|
|
|
50,534 |
|
|
|
24,969 |
|
|
|
17,276 |
|
|
|
|
|
|
| Net Realized Gain (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
4,438 |
|
|
|
6,957 |
|
|
|
2,476 |
|
|
|
6,731 |
|
|
|
|
|
|
| Net Realized Gain (Loss) |
|
|
4,438 |
|
|
|
6,957 |
|
|
|
2,476 |
|
|
|
6,731 |
|
|
|
|
|
|
| Net Change in Unrealized Appreciation (Depreciation): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
(21,320 |
) |
|
|
(43,230 |
) |
|
|
(21,517 |
) |
|
|
(24,288 |
) |
|
|
|
|
|
| Net Change in Unrealized Appreciation
(Depreciation) |
|
|
(21,320 |
) |
|
|
(43,230 |
) |
|
|
(21,517 |
) |
|
|
(24,288 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Resulting from
Operations |
|
$ |
6,067 |
|
|
$ |
14,261 |
|
|
$ |
5,928 |
|
|
$ |
(281 |
) |
|
|
|
|
|
| Distributions on Auction Rate Preferred Shares from Net
Investment and/or Net Realized Capital Gains |
|
$ |
(4,241 |
) |
|
$ |
(8,007 |
) |
|
$ |
(4,132 |
) |
|
$ |
(3,267 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common
Shareholders Resulting from Operations |
|
$ |
1,826 |
|
|
$ |
6,254 |
|
|
$ |
1,796 |
|
|
$ |
(3,548 |
) |
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
|
|
|
|
|
|
|
|
|
| 24 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
22,380 |
|
|
$ |
18,835 |
|
|
$ |
7,099 |
|
|
$ |
10,518 |
|
| |
22,380 |
|
|
|
18,835 |
|
|
|
7,099 |
|
|
|
10,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
3,030 |
|
|
|
2,416 |
|
|
|
1,038 |
|
|
|
1,459 |
|
| |
37 |
|
|
|
30 |
|
|
|
12 |
|
|
|
18 |
|
| |
1,564 |
|
|
|
1,883 |
|
|
|
484 |
|
|
|
893 |
|
| |
220 |
|
|
|
125 |
|
|
|
45 |
|
|
|
101 |
|
| |
132 |
|
|
|
110 |
|
|
|
44 |
|
|
|
91 |
|
| |
18 |
|
|
|
1 |
|
|
|
3 |
|
|
|
17 |
|
| |
5,001 |
|
|
|
4,565 |
|
|
|
1,626 |
|
|
|
2,579 |
|
|
|
|
|
| |
17,379 |
|
|
|
14,270 |
|
|
|
5,473 |
|
|
|
7,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
3,696 |
|
|
|
3,287 |
|
|
|
(443 |
) |
|
|
(198 |
) |
|
|
|
|
| |
3,696 |
|
|
|
3,287 |
|
|
|
(443 |
) |
|
|
(198 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(21,961 |
) |
|
|
(18,393 |
) |
|
|
(5,572 |
) |
|
|
(8,010 |
) |
|
|
|
|
| |
(21,961 |
) |
|
|
(18,393 |
) |
|
|
(5,572 |
) |
|
|
(8,010 |
) |
|
|
|
|
| $ |
(886 |
) |
|
$ |
(836 |
) |
|
$ |
(542 |
) |
|
$ |
(269 |
) |
|
|
|
|
| $ |
(3,525 |
) |
|
$ |
(2,691 |
) |
|
$ |
(1,045 |
) |
|
$ |
(1,679 |
) |
|
|
|
|
| $ |
(4,411 |
) |
|
$ |
(3,527 |
) |
|
$ |
(1,587 |
) |
|
$ |
(1,948 |
) |
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
25 |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
PIMCO
Municipal Income Fund |
|
|
PIMCO
Municipal Income Fund II |
|
|
|
|
|
|
| (Amounts in thousands†) |
|
Year Ended
December 31, 2018 |
|
|
Year Ended
December 31, 2017 |
|
|
Year Ended
December 31, 2018 |
|
|
Year Ended
December 31, 2017 |
|
|
|
|
|
|
| Increase (Decrease) in Net Assets from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
$ |
22,949 |
|
|
$ |
23,408 |
|
|
$ |
50,534 |
|
|
$ |
50,249 |
|
| Net realized gain (loss) |
|
|
4,438 |
|
|
|
(1,751 |
) |
|
|
6,957 |
|
|
|
751 |
|
| Net change in unrealized appreciation (depreciation) |
|
|
(21,320 |
) |
|
|
10,872 |
|
|
|
(43,230 |
) |
|
|
22,225 |
|
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common
Shareholders Resulting from Operations |
|
|
6,067 |
|
|
|
32,529 |
|
|
|
14,261 |
|
|
|
73,225 |
|
|
|
|
|
|
| Distributions on auction rate preferred shares from net
investment income and/or net realized capital gains* |
|
|
(4,241 |
) |
|
|
(2,622 |
) |
|
|
(8,007 |
) |
|
|
(5,064 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common
Shareholders Resulting from Operations |
|
|
1,826 |
|
|
|
29,907 |
|
|
|
6,254 |
|
|
|
68,161 |
|
|
|
|
|
|
| Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income and/or net realized capital
gains* |
|
|
(18,413 |
) |
|
|
(18,916 |
) |
|
|
(48,454 |
) |
|
|
(48,197 |
) |
| Tax basis return of capital |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
| Total Distributions to Common Shareholders(a) |
|
|
(18,413 |
) |
|
|
(18,916 |
) |
|
|
(48,454 |
) |
|
|
(48,197 |
) |
|
|
|
|
|
| Auction Rate Preferred Share Transactions**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Increase (Decrease) resulting from tender of Auction Rate
Preferred Shares |
|
|
3,495 |
|
|
|
0 |
|
|
|
10,309 |
|
|
|
0 |
|
|
|
|
|
|
| Common Share Transactions***: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issued as reinvestment of distributions |
|
|
882 |
|
|
|
1,059 |
|
|
|
4,267 |
|
|
|
3,860 |
|
|
|
|
|
|
| Total increase (decrease) in net assets applicable to
common shareholders |
|
|
(12,210 |
) |
|
|
12,050 |
|
|
|
(27,624 |
) |
|
|
23,824 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of year |
|
|
330,523 |
|
|
|
318,473 |
|
|
|
751,337 |
|
|
|
727,513 |
|
| End of year |
|
$ |
318,313 |
|
|
$ |
330,523 |
|
|
$ |
723,713 |
|
|
$ |
751,337 |
|
|
|
|
|
|
| *** Common Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares issued as reinvestment of distributions |
|
|
71 |
|
|
|
80 |
|
|
|
347 |
|
|
|
314 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
| * |
See Note 2, New Accounting Pronouncements, in the Notes to Financials Statements for more
information. |
| ** |
See Note 12, Auction Rate Preferred Shares, in the Notes to Financials Statements.
|
| (a) |
The tax characterization of distributions is determined in accordance with Federal income tax
regulations. See Note 2, Distributions—Common Shares, in the Notes to Financial Statements for more information. |
|
|
|
|
|
|
|
|
|
| 26 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PIMCO
Municipal Income Fund III |
|
|
PIMCO
California Municipal Income Fund |
|
|
PIMCO
California Municipal Income Fund II |
|
|
PIMCO
California Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2018 |
|
|
Year Ended
December 31, 2017 |
|
|
Year Ended
December 31, 2018 |
|
|
Year Ended
December 31, 2017 |
|
|
Year Ended
December 31, 2018 |
|
|
Year Ended
December 31, 2017 |
|
|
Year Ended
December 31, 2018 |
|
|
Year Ended
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
24,969 |
|
|
$ |
25,374 |
|
|
$ |
17,276 |
|
|
$ |
18,076 |
|
|
$ |
17,379 |
|
|
$ |
19,045 |
|
|
$ |
14,270 |
|
|
$ |
14,805 |
|
| |
2,476 |
|
|
|
8,779 |
|
|
|
6,731 |
|
|
|
1,030 |
|
|
|
3,696 |
|
|
|
3,228 |
|
|
|
3,287 |
|
|
|
2,790 |
|
| |
(21,517 |
) |
|
|
3,381 |
|
|
|
(24,288 |
) |
|
|
7,068 |
|
|
|
(21,961 |
) |
|
|
7,655 |
|
|
|
(18,393 |
) |
|
|
4,888 |
|
|
|
|
|
|
|
|
|
| |
5,928 |
|
|
|
37,534 |
|
|
|
(281 |
) |
|
|
26,174 |
|
|
|
(886 |
) |
|
|
29,928 |
|
|
|
(836 |
) |
|
|
22,483 |
|
|
|
|
|
|
|
|
|
| |
(4,132 |
) |
|
|
(2,608 |
) |
|
|
(3,267 |
) |
|
|
(2,067 |
) |
|
|
(3,525 |
) |
|
|
(2,249 |
) |
|
|
(2,691 |
) |
|
|
(1,727 |
) |
|
|
|
|
|
|
|
|
| |
1,796 |
|
|
|
34,926 |
|
|
|
(3,548 |
) |
|
|
24,107 |
|
|
|
(4,411 |
) |
|
|
27,679 |
|
|
|
(3,527 |
) |
|
|
20,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(25,618 |
) |
|
|
(22,157 |
) |
|
|
(17,335 |
) |
|
|
(17,290 |
) |
|
|
(13,435 |
) |
|
|
(17,701 |
) |
|
|
(12,026 |
) |
|
|
(13,997 |
) |
| |
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
(434 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
| |
(25,618 |
) |
|
|
(22,157 |
) |
|
|
(17,335 |
) |
|
|
(17,290 |
) |
|
|
(13,435 |
) |
|
|
(18,135 |
) |
|
|
(12,026 |
) |
|
|
(13,997 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
5,145 |
|
|
|
0 |
|
|
|
4,406 |
|
|
|
0 |
|
|
|
5,149 |
|
|
|
0 |
|
|
|
4,069 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1,171 |
|
|
|
871 |
|
|
|
764 |
|
|
|
726 |
|
|
|
155 |
|
|
|
598 |
|
|
|
491 |
|
|
|
562 |
|
|
|
|
|
|
|
|
|
| |
(17,506 |
) |
|
|
13,640 |
|
|
|
(15,713 |
) |
|
|
7,543 |
|
|
|
(12,542 |
) |
|
|
10,142 |
|
|
|
(10,993 |
) |
|
|
7,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
363,063 |
|
|
|
349,423 |
|
|
|
266,019 |
|
|
|
258,476 |
|
|
|
277,787 |
|
|
|
267,645 |
|
|
|
221,967 |
|
|
|
214,646 |
|
| $ |
345,557 |
|
|
$ |
363,063 |
|
|
$ |
250,306 |
|
|
$ |
266,019 |
|
|
$ |
265,245 |
|
|
$ |
277,787 |
|
|
$ |
210,974 |
|
|
$ |
221,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
109 |
|
|
|
78 |
|
|
|
51 |
|
|
|
45 |
|
|
|
18 |
|
|
|
63 |
|
|
|
50 |
|
|
|
52 |
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
27 |
Statements of Changes in Net Assets (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
PIMCO
New York Municipal Income Fund |
|
|
PIMCO
New York Municipal Income Fund II |
|
|
|
|
|
|
| (Amounts in thousands†) |
|
Year Ended
December 31, 2018 |
|
|
Year Ended
December 31, 2017 |
|
|
Year Ended
December 31, 2018 |
|
|
Year Ended
December 31, 2017 |
|
|
|
|
|
|
| Increase (Decrease) in Net Assets from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
$ |
5,473 |
|
|
$ |
5,321 |
|
|
$ |
7,939 |
|
|
$ |
8,009 |
|
| Net realized gain (loss) |
|
|
(443 |
) |
|
|
3,276 |
|
|
|
(198 |
) |
|
|
2,001 |
|
| Net change in unrealized appreciation (depreciation) |
|
|
(5,572 |
) |
|
|
749 |
|
|
|
(8,010 |
) |
|
|
3,059 |
|
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common
Shareholders Resulting from Operations |
|
|
(542 |
) |
|
|
9,346 |
|
|
|
(269 |
) |
|
|
13,069 |
|
|
|
|
|
|
| Distributions on auction rate preferred shares from net
investment income and/or net realized capital gains* |
|
|
(1,045 |
) |
|
|
(651 |
) |
|
|
(1,679 |
) |
|
|
(1,088 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common
Shareholders Resulting from Operations |
|
|
(1,587 |
) |
|
|
8,695 |
|
|
|
(1,948 |
) |
|
|
11,981 |
|
|
|
|
|
|
| Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income and/or net realized capital
gains* |
|
|
(5,318 |
) |
|
|
(5,298 |
) |
|
|
(6,284 |
) |
|
|
(6,662 |
) |
| Tax basis return of capital |
|
|
0 |
|
|
|
0 |
|
|
|
(495 |
) |
|
|
(271 |
) |
|
|
|
|
|
| Total Distributions to Common Shareholders(a) |
|
|
(5,318 |
) |
|
|
(5,298 |
) |
|
|
(6,779 |
) |
|
|
(6,933 |
) |
|
|
|
|
|
| Auction Rate Preferred Share Transactions**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Increase (Decrease) resulting from tender of Auction Rate
Preferred Shares |
|
|
896 |
|
|
|
0 |
|
|
|
3,150 |
|
|
|
0 |
|
|
|
|
|
|
| Common Share Transactions***: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issued as reinvestment of distributions |
|
|
358 |
|
|
|
342 |
|
|
|
296 |
|
|
|
430 |
|
|
|
|
|
|
| Total increase (decrease) in net assets applicable to
common shareholders |
|
|
(5,651 |
) |
|
|
3,739 |
|
|
|
(5,281 |
) |
|
|
5,478 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of year |
|
|
93,564 |
|
|
|
89,825 |
|
|
|
124,295 |
|
|
|
118,817 |
|
| End of year |
|
$ |
87,913 |
|
|
$ |
93,564 |
|
|
$ |
119,014 |
|
|
$ |
124,295 |
|
|
|
|
|
|
| *** Common Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares issued as reinvestment of distributions |
|
|
31 |
|
|
|
28 |
|
|
|
28 |
|
|
|
37 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
| * |
See Note 2, New Accounting Pronouncements, in the Notes to Financials Statements for more
information. |
| ** |
See Note 12, Auction Rate Preferred Shares, in the Notes to Financials Statements.
|
| (a) |
The tax characterization of distributions is determined in accordance with Federal income tax
regulations. See Note 2, Distributions—Common Shares, in the Notes to Financial Statements for more information. |
|
|
|
|
|
|
|
|
|
| 28 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
|
$ |
6,067 |
|
|
$ |
14,261 |
|
|
$ |
5,928 |
|
|
$ |
(281 |
) |
|
|
|
|
|
| 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 |
|
|
(196,975 |
) |
|
|
(481,012 |
) |
|
|
(252,070 |
) |
|
|
(175,011 |
) |
| Proceeds from sales of long-term securities |
|
|
154,838 |
|
|
|
340,974 |
|
|
|
200,982 |
|
|
|
169,345 |
|
| (Purchases) Proceeds from sales of short-term portfolio
investments, net |
|
|
752 |
|
|
|
(36,462 |
) |
|
|
(1,750 |
) |
|
|
71 |
|
| (Increase) decrease in receivable for investments
sold |
|
|
15 |
|
|
|
590 |
|
|
|
2,100 |
|
|
|
0 |
|
| (Increase) decrease in interest and/or dividends
receivable |
|
|
(349 |
) |
|
|
(1,642 |
) |
|
|
(285 |
) |
|
|
180 |
|
| (Increase) decrease in other assets |
|
|
42 |
|
|
|
(953 |
) |
|
|
(9 |
) |
|
|
(8 |
) |
| Increase (decrease) in payable for investments
purchased |
|
|
0 |
|
|
|
3,045 |
|
|
|
(2,100 |
) |
|
|
0 |
|
| Increase (decrease) in accrued management fees |
|
|
(27 |
) |
|
|
(58 |
) |
|
|
(31 |
) |
|
|
(24 |
) |
| Increase (decrease) in other liabilities |
|
|
222 |
|
|
|
380 |
|
|
|
264 |
|
|
|
162 |
|
| Net Realized (Gain) Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
(4,438 |
) |
|
|
(6,957 |
) |
|
|
(2,476 |
) |
|
|
(6,731 |
) |
| Net Change in Unrealized (Appreciation)
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
21,320 |
|
|
|
43,230 |
|
|
|
21,517 |
|
|
|
24,288 |
|
| Net amortization (accretion) on investments |
|
|
(976 |
) |
|
|
(333 |
) |
|
|
(746 |
) |
|
|
766 |
|
| Amortization of debt issuance cost |
|
|
15 |
|
|
|
33 |
|
|
|
19 |
|
|
|
18 |
|
|
|
|
|
|
| Net Cash Provided by (Used for) Operating
Activities |
|
|
(19,494 |
) |
|
|
(124,904 |
) |
|
|
(28,657 |
) |
|
|
12,775 |
|
|
|
|
|
|
| Cash Flows Received from (Used for) Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payments resulting from tender of Auction Rate Preferred
Shares |
|
|
(19,805 |
) |
|
|
(58,416 |
) |
|
|
(29,155 |
) |
|
|
(24,969 |
) |
| Cash distributions paid to common shareholders* |
|
|
(17,526 |
) |
|
|
(44,165 |
) |
|
|
(24,442 |
) |
|
|
(16,568 |
) |
| Cash distributions paid to auction rate preferred
shareholders |
|
|
(4,239 |
) |
|
|
(8,013 |
) |
|
|
(4,136 |
) |
|
|
(3,278 |
) |
| Proceeds from tender option bond transactions |
|
|
77,092 |
|
|
|
298,225 |
|
|
|
135,735 |
|
|
|
48,307 |
|
| Payments on tender option bond transactions |
|
|
(39,688 |
) |
|
|
(132,909 |
) |
|
|
(83,498 |
) |
|
|
(46,211 |
) |
| Proceeds on Variable Rate MuniFund Term Preferred Shares, net
of offering costs |
|
|
23,115 |
|
|
|
68,295 |
|
|
|
34,068 |
|
|
|
29,089 |
|
|
|
|
|
|
| Net Cash Received from (Used for) Financing
Activities |
|
|
18,949 |
|
|
|
123,017 |
|
|
|
28,572 |
|
|
|
(13,630 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Cash and Foreign
Currency |
|
|
(545 |
) |
|
|
(1,887 |
) |
|
|
(85 |
) |
|
|
(855 |
) |
|
|
|
|
|
| Cash and Foreign Currency: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of year |
|
|
545 |
|
|
|
1,887 |
|
|
|
86 |
|
|
|
856 |
|
| End of year |
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
|
|
|
|
| * Reinvestment of distributions to common
shareholders |
|
$ |
882 |
|
|
$ |
4,267 |
|
|
$ |
1,171 |
|
|
$ |
764 |
|
|
|
|
|
|
| Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense paid during the year |
|
$ |
1,457 |
|
|
$ |
4,607 |
|
|
$ |
2,083 |
|
|
$ |
2,088 |
|
| † |
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 year, 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.
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
29 |
Statements of Cash Flows (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
|
|
|
|
|
|
| Cash Flows Provided by (Used for) Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in net assets resulting from
operations |
|
$ |
(886 |
) |
|
$ |
(836 |
) |
|
$ |
(542 |
) |
|
$ |
(269 |
) |
|
|
|
|
|
| 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 |
|
|
(223,850 |
) |
|
|
(119,013 |
) |
|
|
(43,045 |
) |
|
|
(63,752 |
) |
| Proceeds from sales of long-term securities |
|
|
191,736 |
|
|
|
114,638 |
|
|
|
42,568 |
|
|
|
63,922 |
|
| (Purchases) Proceeds from sales of short-term portfolio
investments, net |
|
|
(3,336 |
) |
|
|
410 |
|
|
|
(741 |
) |
|
|
(3,932 |
) |
| (Increase) decrease in receivable for investments
sold |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| (Increase) decrease in interest and/or dividends
receivable |
|
|
(275 |
) |
|
|
123 |
|
|
|
59 |
|
|
|
6 |
|
| (Increase) decrease in other assets |
|
|
(4 |
) |
|
|
0 |
|
|
|
221 |
|
|
|
4 |
|
| Increase (decrease) in payable for investments
purchased |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| Increase (decrease) in accrued management fees |
|
|
(23 |
) |
|
|
(20 |
) |
|
|
(13 |
) |
|
|
(11 |
) |
| Increase (decrease) in other liabilities |
|
|
356 |
|
|
|
144 |
|
|
|
19 |
|
|
|
193 |
|
| Net Realized (Gain) Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
(3,696 |
) |
|
|
(3,287 |
) |
|
|
443 |
|
|
|
198 |
|
| Net Change in Unrealized (Appreciation)
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
21,961 |
|
|
|
18,393 |
|
|
|
5,572 |
|
|
|
8,010 |
|
| Net amortization (accretion) on investments |
|
|
454 |
|
|
|
729 |
|
|
|
373 |
|
|
|
377 |
|
| Amortization of debt issuance cost |
|
|
19 |
|
|
|
16 |
|
|
|
0 |
|
|
|
15 |
|
|
|
|
|
|
| Net Cash Provided by (Used for) Operating
Activities |
|
|
(17,544 |
) |
|
|
11,297 |
|
|
|
4,914 |
|
|
|
4,761 |
|
|
|
|
|
|
| Cash Flows Received from (Used for) Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payments resulting from tender of Auction Rate Preferred
Shares |
|
|
(29,176 |
) |
|
|
(23,056 |
) |
|
|
(5,079 |
) |
|
|
(17,850 |
) |
| Cash distributions paid to common shareholders* |
|
|
(13,673 |
) |
|
|
(11,533 |
) |
|
|
(4,958 |
) |
|
|
(6,481 |
) |
| Cash distributions paid to auction rate preferred
shareholders |
|
|
(3,529 |
) |
|
|
(2,687 |
) |
|
|
(1,042 |
) |
|
|
(1,690 |
) |
| Proceeds from tender option bond transactions |
|
|
82,710 |
|
|
|
37,463 |
|
|
|
25,779 |
|
|
|
24,015 |
|
| Payments on tender option bond transactions |
|
|
(55,069 |
) |
|
|
(40,039 |
) |
|
|
(19,923 |
) |
|
|
(26,475 |
) |
| Proceeds on Variable Rate MuniFund Term Preferred Shares, net
of offering costs |
|
|
34,068 |
|
|
|
26,899 |
|
|
|
0 |
|
|
|
20,825 |
|
|
|
|
|
|
| Net Cash Received from (Used for) Financing
Activities |
|
|
15,331 |
|
|
|
(12,953 |
) |
|
|
(5,223 |
) |
|
|
(7,656 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Cash and Foreign
Currency |
|
|
(2,213 |
) |
|
|
(1,656 |
) |
|
|
(309 |
) |
|
|
(2,895 |
) |
|
|
|
|
|
| Cash and Foreign Currency: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of year |
|
|
2,213 |
|
|
|
1,656 |
|
|
|
309 |
|
|
|
2,896 |
|
| End of year |
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
1 |
|
|
|
|
|
|
| * Reinvestment of distributions to common
shareholders |
|
$ |
155 |
|
|
$ |
491 |
|
|
$ |
358 |
|
|
$ |
296 |
|
|
|
|
|
|
| Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense paid during the year |
|
$ |
1,308 |
|
|
$ |
1,768 |
|
|
$ |
432 |
|
|
$ |
833 |
|
| † |
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 year, 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.
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| 30 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO
Municipal Income Fund
December 31, 2018
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 185.2% |
|
|
|
| MUNICIPAL BONDS & NOTES 184.2% |
|
|
|
| ALABAMA 6.5% |
|
|
| Alabama Federal Aid Highway Financing Authority Revenue
Bonds, Series 2016 |
|
| 5.000% due 09/01/2035 (d) |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,466 |
|
| 5.000% due 09/01/2036 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,452 |
|
|
| Jefferson County, Alabama Sewer Revenue Bonds,
Series 2013 |
|
| 0.000% due 10/01/2050 (c) |
|
|
|
|
15,000 |
|
|
|
|
|
13,052 |
|
| 6.500% due 10/01/2053 |
|
|
|
|
750 |
|
|
|
|
|
879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ALASKA 1.1% |
|
|
| Alaska Industrial Development & Export Authority
Revenue Bonds, Series 2007 |
|
| 6.000% due 12/01/2036 ^(a) |
|
|
|
|
900 |
|
|
|
|
|
45 |
|
|
| Matanuska-Susitna Borough, Alaska Revenue Bonds, (AGC
Insured), Series 2009 |
|
| 6.000% due 09/01/2032 |
|
|
|
|
3,280 |
|
|
|
|
|
3,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ARIZONA 2.3% |
|
|
| Maricopa County, Arizona Pollution Control Corp. Revenue
Bonds, Series 2000 |
|
| 5.000% due 06/01/2035 |
|
|
|
|
1,500 |
|
|
|
|
|
1,542 |
|
|
| Pima County, Arizona Industrial Development Authority Revenue
Bonds, Series 2010 |
|
| 5.250% due 10/01/2040 |
|
|
|
|
750 |
|
|
|
|
|
784 |
|
|
| Salt River Project Agricultural Improvement & Power
District, Arizona Revenue Bonds, Series 2009 |
|
| 5.000% due 01/01/2039 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ARKANSAS 0.9% |
|
|
| Arkansas Development Finance Authority Revenue Bonds, (AMBAC
Insured), Series 2006 |
|
| 0.000% due 07/01/2036 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
2,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CALIFORNIA 19.9% |
|
|
| Bay Area Toll Authority, California Revenue Bonds,
Series 2010 |
|
| 5.000% due 10/01/2034 |
|
|
|
|
2,875 |
|
|
|
|
|
3,045 |
|
| 5.000% due 10/01/2042 |
|
|
|
|
3,255 |
|
|
|
|
|
3,447 |
|
|
| Bay Area Toll Authority, California Revenue Bonds,
Series 2013 |
|
| 5.250% due 04/01/2053 |
|
|
|
|
10,000 |
|
|
|
|
|
11,465 |
|
|
| Bay Area Toll Authority, California Revenue Bonds,
Series 2014 |
|
| 5.000% due 10/01/2054 |
|
|
|
|
3,000 |
|
|
|
|
|
3,276 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2002 |
|
| 6.000% due 06/01/2035 |
|
|
|
|
2,000 |
|
|
|
|
|
2,000 |
|
| 6.125% due 06/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
983 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2009 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,044 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
1,500 |
|
|
|
|
|
1,605 |
|
|
| California Municipal Finance Authority Revenue Bonds,
Series 2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
1,140 |
|
|
|
|
|
1,265 |
|
|
| California State General Obligation Bonds,
Series 2009 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
3,200 |
|
|
|
|
|
3,233 |
|
|
| California State General Obligation Bonds,
Series 2010 |
|
| 5.250% due 11/01/2040 |
|
|
|
|
1,900 |
|
|
|
|
|
2,002 |
|
| 5.500% due 03/01/2040 |
|
|
|
|
500 |
|
|
|
|
|
519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (FHA Insured), Series 2009 |
|
| 6.625% due 08/01/2029 |
|
$ |
|
|
2,310 |
|
|
$ |
|
|
2,377 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
8,485 |
|
|
|
|
|
8,737 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,086 |
|
|
| California Statewide Communities Development Authority
Revenue Notes, Series 2011 |
|
| 6.500% due 11/01/2021 |
|
|
|
|
300 |
|
|
|
|
|
324 |
|
|
| Chula Vista, California Revenue Bonds,
Series 2004 |
|
| 5.875% due 02/15/2034 |
|
|
|
|
3,000 |
|
|
|
|
|
3,038 |
|
|
| Long Beach Bond Finance Authority, California Revenue Bonds,
Series 2007 |
|
| 5.500% due 11/15/2030 |
|
|
|
|
1,405 |
|
|
|
|
|
1,716 |
|
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.125% due 11/01/2029 |
|
|
|
|
2,000 |
|
|
|
|
|
2,444 |
|
|
| Morongo Band of Mission Indians, California Revenue Bonds,
Series 2018 |
|
| 5.000% due 10/01/2042 |
|
|
|
|
500 |
|
|
|
|
|
511 |
|
|
| Orange County, California Airport Revenue Bonds,
Series 2009 |
|
| 5.250% due 07/01/2039 |
|
|
|
|
5,000 |
|
|
|
|
|
5,087 |
|
|
| San Marcos Unified School District, California General
Obligation Bonds, Series 2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,600 |
|
|
|
|
|
1,738 |
|
|
| Whittier Union High School District, California General
Obligation Bonds, Series 2009 |
|
| 0.000% due 08/01/2025 (b) |
|
|
|
|
2,000 |
|
|
|
|
|
1,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COLORADO 5.0% |
|
|
| Board of Governors of Colorado State University System
Revenue Bonds, Series 2017 |
|
| 4.000% due 03/01/2038 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,554 |
|
|
| Colorado Health Facilities Authority Revenue Bonds,
Series 2018 |
|
| 4.000% due 11/15/2048 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,093 |
|
|
| Colorado State Building Excellent School Certificates of
Participation Bonds, Series 2018 |
|
| 4.000% due 03/15/2043 |
|
|
|
|
1,015 |
|
|
|
|
|
1,038 |
|
|
| Denver Health & Hospital Authority, Colorado Revenue
Bonds, Series 2010 |
|
| 5.625% due 12/01/2040 |
|
|
|
|
450 |
|
|
|
|
|
467 |
|
|
| Public Authority for Colorado Energy Revenue Bonds,
Series 2008 |
|
| 6.500% due 11/15/2038 |
|
|
|
|
500 |
|
|
|
|
|
679 |
|
|
| Regional Transportation District, Colorado Certificates of
Participation Bonds, Series 2010 |
|
| 5.375% due 06/01/2031 |
|
|
|
|
400 |
|
|
|
|
|
418 |
|
|
| University of Colorado Revenue Bonds,
Series 2009 |
|
| 5.375% due 06/01/2038 |
|
|
|
|
1,500 |
|
|
|
|
|
1,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONNECTICUT 2.5% |
|
|
| Connecticut State Health & Educational Facility
Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 07/01/2041 |
|
|
|
|
5,000 |
|
|
|
|
|
5,245 |
|
|
| Connecticut State Health & Educational Facility
Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 07/01/2042 |
|
|
|
|
2,500 |
|
|
|
|
|
2,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DISTRICT OF COLUMBIA 1.4% |
|
|
| District of Columbia Revenue Bonds, (NPFGC Insured),
Series 2002 |
|
| 6.545% due 08/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,000 |
|
|
| District of Columbia Revenue Bonds,
Series 2009 |
|
| 5.750% due 10/01/2039 |
|
|
|
|
2,500 |
|
|
|
|
|
2,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| FLORIDA 2.6% |
|
|
| Florida Development Finance Corp. Revenue Notes,
Series 2011 |
|
| 6.500% due 06/15/2021 |
|
$ |
|
|
155 |
|
|
$ |
|
|
161 |
|
|
| Miami-Dade County, Florida School Board Foundation, Inc.,
Certificates of Participation Bonds, (AGC Insured), Series 2009 |
|
| 5.375% due 02/01/2034 |
|
|
|
|
1,250 |
|
|
|
|
|
1,254 |
|
|
| Miami-Dade County, Florida Transit System Revenue Bonds,
Series 2018 |
|
| 4.000% due 07/01/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,021 |
|
| 4.000% due 07/01/2046 |
|
|
|
|
1,000 |
|
|
|
|
|
1,020 |
|
|
| Putnam County Development Authority, Florida Revenue Bonds,
Series 2018 |
|
| 5.000% due 03/15/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,213 |
|
|
| Tampa, Florida Revenue Bonds,
Series 2016 |
|
| 4.000% due 11/15/2046 |
|
|
|
|
2,500 |
|
|
|
|
|
2,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GEORGIA 4.5% |
|
|
| Atlanta Development Authority, Georgia Revenue Bonds,
Series 2017 |
|
| 6.750% due 01/01/2035 |
|
|
|
|
3,200 |
|
|
|
|
|
3,091 |
|
|
| Burke County, Georgia Development Authority Revenue Bonds,
Series 2017 |
|
| 4.125% due 11/01/2045 |
|
|
|
|
2,000 |
|
|
|
|
|
1,969 |
|
|
| Municipal Electric Authority of Georgia Revenue Bonds,
Series 2015 |
|
| 5.000% due 07/01/2060 |
|
|
|
|
9,000 |
|
|
|
|
|
9,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| HAWAII 0.5% |
|
|
| City & County Honolulu, Hawaii Wastewater System
Revenue Bonds, Series 2018 |
|
| 4.000% due 07/01/2042 |
|
|
|
|
1,485 |
|
|
|
|
|
1,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 14.3% |
|
|
| Chicago Board of Education, Illinois General Obligation
Bonds, Series 2012 |
|
| 5.000% due 12/01/2042 |
|
|
|
|
3,000 |
|
|
|
|
|
3,003 |
|
|
| Chicago O’Hare International Airport, Illinois Revenue
Bonds, Series 2018 |
|
| 5.000% due 01/01/2048 |
|
|
|
|
3,000 |
|
|
|
|
|
3,339 |
|
|
| Chicago, Illinois General Obligation Bonds,
Series 2003 |
|
| 5.500% due 01/01/2034 |
|
|
|
|
1,750 |
|
|
|
|
|
1,852 |
|
|
| Chicago, Illinois General Obligation Bonds,
Series 2007 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
2,400 |
|
|
|
|
|
2,506 |
|
|
| Chicago, Illinois General Obligation Bonds,
Series 2015 |
|
| 5.375% due 01/01/2029 |
|
|
|
|
6,700 |
|
|
|
|
|
7,139 |
|
| 5.500% due 01/01/2034 |
|
|
|
|
2,300 |
|
|
|
|
|
2,435 |
|
|
| Chicago, Illinois Revenue Bonds,
Series 2002 |
|
| 5.000% due 01/01/2028 |
|
|
|
|
2,000 |
|
|
|
|
|
2,321 |
|
|
| Illinois Finance Authority Revenue Bonds,
Series 2009 |
|
| 7.125% due 11/15/2037 |
|
|
|
|
400 |
|
|
|
|
|
408 |
|
|
| Illinois Finance Authority Revenue Bonds,
Series 2013 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,048 |
|
|
| Illinois Finance Authority Revenue Bonds,
Series 2017 |
|
| 5.250% due 12/01/2052 |
|
|
|
|
1,250 |
|
|
|
|
|
716 |
|
|
| Illinois State General Obligation Bonds,
Series 2017 |
|
| 5.000% due 11/01/2029 |
|
|
|
|
2,500 |
|
|
|
|
|
2,658 |
|
|
| Illinois State General Obligation Bonds,
Series 2018 |
|
| 4.625% due 05/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,005 |
|
|
| Illinois State General Obligation Notes,
Series 2017 |
|
| 5.000% due 11/01/2027 |
|
|
|
|
7,000 |
|
|
|
|
|
7,527 |
|
|
| Metropolitan Pier & Exposition Authority, Illinois
Revenue Bonds, (AGM Insured), Series 2010 |
|
| 0.000% due 06/15/2045 (b) |
|
|
|
|
6,500 |
|
|
|
|
|
1,967 |
|
|
| Metropolitan Pier & Exposition Authority, Illinois
Revenue Bonds, Series 2012 |
|
| 0.000% due 12/15/2051 (b) |
|
|
|
|
2,500 |
|
|
|
|
|
490 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
31 |
Schedule of Investments PIMCO Municipal Income Fund
(Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Regional Transportation Authority, Illinois Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2038 (d) |
|
$ |
|
|
3,500 |
|
|
$ |
|
|
3,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INDIANA 1.0% |
|
|
| Indiana Health & Educational Facilities Financing
Authority Revenue Bonds, Series 2006 |
|
| 4.000% due 11/15/2046 |
|
|
|
|
1,000 |
|
|
|
|
|
1,003 |
|
|
| Indiana Municipal Power Agency Revenue Bonds,
Series 2009 |
|
| 6.000% due 01/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,000 |
|
|
| Vigo County, Indiana Hospital Authority Revenue Bonds,
Series 2011 |
|
| 7.500% due 09/01/2022 |
|
|
|
|
1,130 |
|
|
|
|
|
1,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| IOWA 0.9% |
|
|
| Iowa Finance Authority Revenue Bonds,
Series 2014 |
|
| 2.000% due 05/15/2056 ^ |
|
|
|
|
532 |
|
|
|
|
|
7 |
|
| 5.400% due 11/15/2046 ^ |
|
|
|
|
2,794 |
|
|
|
|
|
2,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KANSAS 1.4% |
|
|
| Kansas Development Finance Authority Revenue Bonds,
Series 2009 |
|
| 5.750% due 11/15/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,034 |
|
|
| Lenexa, Kansas Tax Allocation Bonds,
Series 2007 |
|
| 6.000% due 04/01/2027 ^(a) |
|
|
|
|
779 |
|
|
|
|
|
175 |
|
|
| University of Kansas Hospital Authority Revenue Bonds,
Series 2015 |
|
| 4.000% due 09/01/2040 (d) |
|
|
|
|
3,085 |
|
|
|
|
|
3,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KENTUCKY 0.3% |
|
|
| Kentucky Economic Development Finance Authority Revenue
Bonds, Series 2010 |
|
| 6.375% due 06/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOUISIANA 3.6% |
|
|
| Louisiana Gasoline & Fuels Tax State Revenue Bonds,
Series 2017 |
|
| 4.000% due 05/01/2045 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,102 |
|
|
| Louisiana Local Government Environmental
Facilities & Community Development Authority Revenue Bonds, Series 2010 |
|
| 5.875% due 10/01/2040 |
|
|
|
|
750 |
|
|
|
|
|
801 |
|
| 6.500% due 11/01/2035 |
|
|
|
|
400 |
|
|
|
|
|
427 |
|
|
| Louisiana Public Facilities Authority Revenue Bonds,
Series 2011 |
|
| 6.500% due 05/15/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,211 |
|
|
| Louisiana Public Facilities Authority Revenue Bonds,
Series 2017 |
|
| 5.000% due 05/15/2042 |
|
|
|
|
3,750 |
|
|
|
|
|
4,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MARYLAND 0.7% |
|
|
| Maryland Economic Development Corp. Revenue Bonds,
Series 2010 |
|
| 5.750% due 06/01/2035 |
|
|
|
|
1,500 |
|
|
|
|
|
1,583 |
|
|
| Maryland Health & Higher Educational Facilities
Authority Revenue Bonds, Series 2010 |
|
| 6.250% due 01/01/2041 |
|
|
|
|
650 |
|
|
|
|
|
704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| MASSACHUSETTS 4.4% |
|
|
| Commonwealth of Massachusetts General Obligation Bonds,
Series 2018 |
|
| 4.000% due 05/01/2037 (d) |
|
$ |
|
|
4,000 |
|
|
$ |
|
|
4,171 |
|
|
| Commonwealth of Massachusetts General Obligation Bonds,
Series 2018 |
|
| 4.000% due 05/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,029 |
|
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2010 |
|
| 7.000% due 07/01/2042 |
|
|
|
|
750 |
|
|
|
|
|
807 |
|
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2011 |
|
| 5.500% due 11/15/2056 (b)(f) |
|
|
|
|
103 |
|
|
|
|
|
19 |
|
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2016 |
|
| 4.000% due 10/01/2046 (d) |
|
|
|
|
2,300 |
|
|
|
|
|
2,352 |
|
| 5.000% due 01/01/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,070 |
|
|
| Massachusetts School Building Authority Revenue Bonds,
Series 2012 |
|
| 5.250% due 02/15/2048 (d) |
|
|
|
|
2,500 |
|
|
|
|
|
2,900 |
|
|
| Massachusetts State College Building Authority Revenue Bonds,
Series 2009 |
|
| 5.500% due 05/01/2039 |
|
|
|
|
1,500 |
|
|
|
|
|
1,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MICHIGAN 4.4% |
|
|
| Michigan Finance Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 12/01/2036 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,060 |
|
| 5.000% due 12/01/2031 (d) |
|
|
|
|
1,200 |
|
|
|
|
|
1,385 |
|
| 5.000% due 12/01/2046 (d) |
|
|
|
|
2,400 |
|
|
|
|
|
2,664 |
|
|
| Michigan State Hospital Finance Authority Revenue Bonds,
Series 2016 |
|
| 4.000% due 11/15/2047 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,010 |
|
|
| Michigan Tobacco Settlement Finance Authority Revenue Bonds,
Series 2007 |
|
| 6.000% due 06/01/2048 |
|
|
|
|
1,500 |
|
|
|
|
|
1,487 |
|
|
| Michigan Tobacco Settlement Finance Authority Revenue Bonds,
Series 2008 |
|
| 0.000% due 06/01/2058 (b) |
|
|
|
|
15,000 |
|
|
|
|
|
393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MINNESOTA 1.0% |
|
|
| Rochester, Minnesota Revenue Bonds,
Series 2018 |
|
| 4.000% due 11/15/2048 |
|
|
|
|
1,500 |
|
|
|
|
|
1,539 |
|
|
| St. Louis Park, Minnesota Revenue Bonds,
Series 2009 |
|
| 5.750% due 07/01/2039 |
|
|
|
|
1,500 |
|
|
|
|
|
1,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MISSOURI 1.0% |
|
|
| Health & Educational Facilities Authority of the
State of Missouri Revenue Bonds, Series 2018 |
|
| 4.000% due 11/15/2048 |
|
|
|
|
3,000 |
|
|
|
|
|
3,056 |
|
|
| Lee’s Summit, Missouri Tax Allocation Bonds,
Series 2011 |
|
| 5.625% due 10/01/2023 |
|
|
|
|
90 |
|
|
|
|
|
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEBRASKA 0.9% |
|
|
| Central Plains Energy Project, Nebraska Revenue Bonds,
Series 2017 |
|
| 5.000% due 09/01/2042 |
|
|
|
|
2,400 |
|
|
|
|
|
2,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEVADA 1.6% |
|
|
| Clark County, Nevada General Obligation Bonds,
Series 2018 |
|
| 4.000% due 07/01/2044 (d) |
|
|
|
|
4,200 |
|
|
|
|
|
4,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Reno, Nevada Revenue Bonds,
Series 2018 |
|
| 0.000% due 07/01/2058 (b) |
|
$ |
|
|
10,500 |
|
|
$ |
|
|
832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW JERSEY 11.7% |
|
|
| New Jersey Economic Development Authority Revenue Bonds,
Series 2016 |
|
| 5.000% due 06/15/2041 |
|
|
|
|
2,500 |
|
|
|
|
|
2,632 |
|
|
| New Jersey Economic Development Authority Special Assessment
Bonds, Series 2002 |
|
| 5.750% due 04/01/2031 |
|
|
|
|
16,550 |
|
|
|
|
|
18,032 |
|
|
| New Jersey Health Care Facilities Financing Authority Revenue
Bonds, Series 2011 |
|
| 6.000% due 07/01/2037 |
|
|
|
|
500 |
|
|
|
|
|
550 |
|
|
| New Jersey Health Care Facilities Financing Authority Revenue
Bonds, Series 2013 |
|
| 5.500% due 07/01/2043 |
|
|
|
|
2,000 |
|
|
|
|
|
2,224 |
|
|
| New Jersey Transportation Trust Fund Authority Revenue Bonds,
(AGM Insured), Series 2006 |
|
| 0.000% due 12/15/2034 (b) |
|
|
|
|
1,500 |
|
|
|
|
|
787 |
|
|
| New Jersey Turnpike Authority Revenue Bonds,
Series 2009 |
|
| 5.250% due 01/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,000 |
|
|
| South Jersey Port Corp., New Jersey Revenue Bonds,
Series 2017 |
|
| 5.000% due 01/01/2049 |
|
|
|
|
250 |
|
|
|
|
|
272 |
|
|
| Tobacco Settlement Financing Corp, New Jersey Revenue Bonds,
Series 2018 |
|
| 5.250% due 06/01/2046 |
|
|
|
|
2,000 |
|
|
|
|
|
2,135 |
|
|
| Tobacco Settlement Financing Corp., New Jersey Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,132 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
7,500 |
|
|
|
|
|
7,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW MEXICO 2.4% |
|
|
| Farmington, New Mexico Revenue Bonds,
Series 2010 |
|
| 5.900% due 06/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,046 |
|
|
| New Mexico Hospital Equipment Loan Council Revenue Bonds,
Series 2009 |
|
| 5.000% due 08/01/2039 |
|
|
|
|
6,400 |
|
|
|
|
|
6,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 28.1% |
|
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds,
Series 2011 |
|
| 5.250% due 02/15/2047 |
|
|
|
|
15,500 |
|
|
|
|
|
16,460 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2011 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
3,000 |
|
|
|
|
|
3,273 |
|
|
| Nassau County, New York Industrial Development Agency Revenue
Bonds, Series 2014 |
|
| 2.000% due 01/01/2049 ^(a) |
|
|
|
|
1,137 |
|
|
|
|
|
193 |
|
| 6.700% due 01/01/2049 |
|
|
|
|
3,150 |
|
|
|
|
|
3,263 |
|
|
| New York City Transitional Finance Authority Future Tax
Secured Revenue, New York Revenue Bonds, Series 2018 |
|
| 4.000% due 05/01/2043 (d) |
|
|
|
|
9,000 |
|
|
|
|
|
9,247 |
|
|
| New York City Transitional Finance Authority Future Tax
Secured, New York Revenue Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,105 |
|
|
| New York City Water & Sewer System, New York Revenue
Bonds, Series 2009 |
|
| 5.000% due 06/15/2039 |
|
|
|
|
3,000 |
|
|
|
|
|
3,038 |
|
|
| New York City, New York General Obligation Bonds,
Series 2018 |
|
| 5.000% due 12/01/2037 |
|
|
|
|
1,750 |
|
|
|
|
|
2,035 |
|
| 5.000% due 04/01/2045 (d) |
|
|
|
|
4,800 |
|
|
|
|
|
5,462 |
|
|
| New York Liberty Development Corp. Revenue Bonds,
Series 2007 |
|
| 5.500% due 10/01/2037 |
|
|
|
|
3,000 |
|
|
|
|
|
3,844 |
|
|
|
|
|
|
|
|
|
|
| 32 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2005 |
|
| 5.250% due 10/01/2035 |
|
$ |
|
|
10,000 |
|
|
$ |
|
|
12,146 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2011 |
|
| 5.000% due 12/15/2041 |
|
|
|
|
7,500 |
|
|
|
|
|
8,041 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
10,000 |
|
|
|
|
|
10,639 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,027 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
3,500 |
|
|
|
|
|
3,693 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 10.3% |
|
|
| American Municipal Power, Inc., Ohio Revenue Bonds,
Series 2017 |
|
| 4.000% due 02/15/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,022 |
|
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue
Bonds, Series 2007 |
|
| 5.125% due 06/01/2024 |
|
|
|
|
955 |
|
|
|
|
|
892 |
|
| 5.875% due 06/01/2047 |
|
|
|
|
11,600 |
|
|
|
|
|
11,035 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
9,280 |
|
|
|
|
|
9,279 |
|
|
| Geisinger Authority, Pennsylvania Revenue Bonds,
Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,050 |
|
|
| Hamilton County, Ohio Revenue Bonds,
Series 2012 |
|
| 5.000% due 06/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,060 |
|
|
| Ohio State Turnpike Commission Revenue Bonds,
Series 2013 |
|
| 5.000% due 02/15/2048 |
|
|
|
|
5,000 |
|
|
|
|
|
5,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OKLAHOMA 0.5% |
|
|
| Oklahoma Development Finance Authority Revenue Bonds,
Series 2018 |
|
| 5.500% due 08/15/2057 |
|
|
|
|
1,500 |
|
|
|
|
|
1,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OREGON 0.8% |
|
|
| Oregon Health & Science University Revenue Bonds,
Series 2009 |
|
| 5.750% due 07/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,039 |
|
|
| Oregon State Department of Administrative Services
Certificates of Participation Bonds, Series 2009 |
|
| 5.250% due 05/01/2039 |
|
|
|
|
600 |
|
|
|
|
|
607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PENNSYLVANIA 7.3% |
|
|
| Berks County, Pennsylvania Industrial Development Authority
Revenue Bonds, Series 2017 |
|
| 4.000% due 11/01/2047 |
|
|
|
|
2,500 |
|
|
|
|
|
2,492 |
|
|
| Geisinger Authority, Pennsylvania Revenue Bonds,
Series 2009 |
|
| 5.250% due 06/01/2039 |
|
|
|
|
5,000 |
|
|
|
|
|
5,069 |
|
|
| Luzerne County, Pennsylvania Industrial Development Authority
Revenue Bonds, Series 2009 |
|
| 5.500% due 12/01/2039 |
|
|
|
|
1,100 |
|
|
|
|
|
1,129 |
|
|
| Pennsylvania Higher Educational Facilities Authority Revenue
Bonds, Series 2010 |
|
| 5.000% due 03/01/2040 |
|
|
|
|
350 |
|
|
|
|
|
362 |
|
| 6.000% due 07/01/2043 |
|
|
|
|
500 |
|
|
|
|
|
530 |
|
|
| Pennsylvania Turnpike Commission Revenue Bonds,
Series 2009 |
|
| 5.125% due 12/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,060 |
|
|
| Pennsylvania Turnpike Commission Revenue Bonds,
Series 2018 |
|
| 5.000% due 12/01/2043 |
|
|
|
|
4,250 |
|
|
|
|
|
4,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Philadelphia Hospitals & Higher Education Facilities
Authority, Pennsylvania Revenue Bonds, Series 2012 |
|
| 5.625% due 07/01/2036 |
|
$ |
|
|
5,000 |
|
|
$ |
|
|
5,345 |
|
| 5.625% due 07/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,062 |
|
|
| Philadelphia, Pennsylvania Water & Wastewater
Revenue Bonds, Series 2009 |
|
| 5.250% due 01/01/2036 |
|
|
|
|
500 |
|
|
|
|
|
500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.0% |
|
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM
Insured), Series 2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
3,000 |
|
|
|
|
|
3,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RHODE ISLAND 0.7% |
|
|
| Tobacco Settlement Financing Corp., Rhode Island Revenue
Bonds, Series 2015 |
|
| 5.000% due 06/01/2040 |
|
|
|
|
1,205 |
|
|
|
|
|
1,252 |
|
| 5.000% due 06/01/2050 |
|
|
|
|
1,000 |
|
|
|
|
|
1,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SOUTH CAROLINA 2.7% |
|
|
| South Carolina Ports Authority Revenue Bonds,
Series 2010 |
|
| 5.250% due 07/01/2040 |
|
|
|
|
2,200 |
|
|
|
|
|
2,311 |
|
|
| South Carolina State Public Service Authority Revenue Bonds,
Series 2013 |
|
| 5.125% due 12/01/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,248 |
|
| 5.500% due 12/01/2053 |
|
|
|
|
1,100 |
|
|
|
|
|
1,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TENNESSEE 4.3% |
|
|
| Bristol Industrial Development Board, Tennessee Revenue
Bonds, Series 2016 |
|
| 5.125% due 12/01/2042 |
|
|
|
|
2,500 |
|
|
|
|
|
2,424 |
|
|
| Tennessee Energy Acquisition Corp., Revenue Bonds,
Series 2006 |
|
| 5.000% due 02/01/2027 |
|
|
|
|
5,000 |
|
|
|
|
|
5,598 |
|
| 5.250% due 09/01/2024 |
|
|
|
|
5,000 |
|
|
|
|
|
5,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TEXAS 15.8% |
|
|
| Clifton Higher Education Finance Corp., Texas Revenue Bonds,
Series 2018 |
|
| 6.125% due 08/15/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
1,012 |
|
|
| Dallas, Texas Civic Center Revenue Bonds, (AGC Insured),
Series 2009 |
|
| 5.250% due 08/15/2038 |
|
|
|
|
1,200 |
|
|
|
|
|
1,223 |
|
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds,
Series 2013 |
|
| 5.000% due 04/01/2053 |
|
|
|
|
5,500 |
|
|
|
|
|
5,907 |
|
|
| New Hope Cultural Education Facilities Finance Corp., Texas
Revenue Bonds, Series 2017 |
|
| 4.000% due 08/15/2034 (d) |
|
|
|
|
300 |
|
|
|
|
|
314 |
|
| 4.000% due 08/15/2035 (d) |
|
|
|
|
800 |
|
|
|
|
|
833 |
|
| 4.000% due 08/15/2036 (d) |
|
|
|
|
600 |
|
|
|
|
|
621 |
|
| 4.000% due 08/15/2037 (d) |
|
|
|
|
900 |
|
|
|
|
|
927 |
|
| 4.000% due 08/15/2040 (d) |
|
|
|
|
900 |
|
|
|
|
|
918 |
|
|
| North Texas Tollway Authority Revenue Bonds,
Series 2009 |
|
| 5.250% due 01/01/2044 |
|
|
|
|
3,000 |
|
|
|
|
|
3,007 |
|
|
| North Texas Tollway Authority Revenue Bonds,
Series 2011 |
|
| 5.000% due 01/01/2038 |
|
|
|
|
2,750 |
|
|
|
|
|
2,885 |
|
| 5.500% due 09/01/2041 |
|
|
|
|
600 |
|
|
|
|
|
655 |
|
|
| North Texas Tollway Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 01/01/2043 |
|
|
|
|
1,500 |
|
|
|
|
|
1,519 |
|
| 5.000% due 01/01/2048 |
|
|
|
|
2,250 |
|
|
|
|
|
2,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| San Juan Higher Education Finance Authority, Texas Revenue
Bonds, Series 2010 |
|
| 6.700% due 08/15/2040 |
|
$ |
|
|
250 |
|
|
$ |
|
|
269 |
|
|
| Tarrant County, Texas Cultural Education Facilities Finance
Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
6,400 |
|
|
|
|
|
6,450 |
|
|
| Tarrant County, Texas Cultural Education Facilities Finance
Corp. Revenue Bonds, Series 2017 |
|
| 6.750% due 11/15/2047 |
|
|
|
|
500 |
|
|
|
|
|
545 |
|
|
| Tender Option Bond Trust Receipts/Certificates, Texas General
Obligation Bonds, Series 2009 |
|
| 6.420% due 08/01/2039 (e) |
|
|
|
|
1,000 |
|
|
|
|
|
1,034 |
|
|
| Texas Municipal Gas Acquisition & Supply Corp.
Revenue Bonds, Series 2006 |
|
| 5.250% due 12/15/2023 |
|
|
|
|
3,500 |
|
|
|
|
|
3,930 |
|
|
| Texas Municipal Gas Acquisition & Supply Corp.
Revenue Bonds, Series 2008 |
|
| 6.250% due 12/15/2026 |
|
|
|
|
6,040 |
|
|
|
|
|
6,908 |
|
|
| Texas State University System Revenue Bonds,
Series 2018 |
|
| 4.100% due 03/15/2039 (d) |
|
|
|
|
3,200 |
|
|
|
|
|
3,260 |
|
|
| Texas Water Development Board Revenue Bonds,
Series 2018 |
|
| 4.000% due 10/15/2038 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,183 |
|
|
| Uptown Development Authority, Texas Tax Allocation Bonds,
Series 2009 |
|
| 5.500% due 09/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,024 |
|
|
| Wise County, Texas Revenue Bonds,
Series 2011 |
|
| 8.000% due 08/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 1.0% |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2009 |
|
| 5.000% due 10/01/2022 |
|
|
|
|
2,000 |
|
|
|
|
|
2,018 |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2010 |
|
| 5.250% due 10/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UTAH 3.8% |
|
|
| Salt Lake County, Utah Revenue Bonds, (AMBAC Insured),
Series 2001 |
|
| 5.125% due 02/15/2033 |
|
|
|
|
7,000 |
|
|
|
|
|
8,055 |
|
|
| Utah County, Utah Revenue Bonds,
Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| VIRGINIA 1.6% |
|
|
| Fairfax County, Virginia Industrial Development Authority
Revenue Bonds, Series 2009 |
|
| 5.500% due 05/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,014 |
|
|
| Virginia Commonwealth Transportation Board Revenue Bonds,
Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
3,850 |
|
|
|
|
|
3,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WASHINGTON 4.3% |
|
|
| Seattle, Washington Municipal Light and Power Revenue Bonds,
Series 2018 |
|
| 4.000% due 01/01/2041 (d) |
|
|
|
|
3,600 |
|
|
|
|
|
3,724 |
|
|
| Tender Option Bond Trust Receipts/Certificates, Washington
General Obligation Bonds, Series 2009 |
|
| 8.530% due 02/01/2034 (e) |
|
|
|
|
6,670 |
|
|
|
|
|
6,718 |
|
|
| Washington Health Care Facilities Authority Revenue Bonds,
(AGC Insured), Series 2008 |
|
| 6.000% due 08/15/2039 |
|
|
|
|
700 |
|
|
|
|
|
718 |
|
|
| Washington Health Care Facilities Authority Revenue Bonds,
Series 2009 |
|
| 7.375% due 03/01/2038 |
|
|
|
|
250 |
|
|
|
|
|
252 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
33 |
Schedule of Investments PIMCO Municipal Income Fund
(Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Washington State Convention Center Public Facilities District
Revenue Bonds, Series 2018 |
|
| 5.000% due 07/01/2058 |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEST VIRGINIA 1.5% |
|
|
| Monongalia County, West Virginia Commission Special District
Revenue Bonds, Series 2017 |
|
| 5.500% due 06/01/2037 |
|
|
|
|
1,000 |
|
|
|
|
|
1,019 |
|
|
| West Virginia Economic Development Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 06/15/2040 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,548 |
|
|
| West Virginia State General Obligation Bonds,
Series 2018 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
2,000 |
|
|
|
|
|
2,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| WISCONSIN 3.7% |
|
|
| Public Finance Authority, Wisconsin Revenue Bonds,
Series 2017 |
|
| 7.000% due 01/01/2050 |
|
$ |
|
|
2,500 |
|
|
$ |
|
|
2,934 |
|
|
| Public Finance Authority, Wisconsin Revenue Bonds,
Series 2018 |
|
| 6.375% due 01/01/2048 |
|
|
|
|
3,000 |
|
|
|
|
|
3,094 |
|
| 7.000% due 07/01/2048 |
|
|
|
|
750 |
|
|
|
|
|
794 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2009 |
|
| 6.625% due 02/15/2039 |
|
|
|
|
500 |
|
|
|
|
|
503 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2016 |
|
| 4.000% due 11/15/2046 |
|
|
|
|
2,500 |
|
|
|
|
|
2,507 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2017 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $555,896) |
|
|
|
|
|
586,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
MARKET
VALUE
(000S) |
|
| SHORT-TERM INSTRUMENTS 1.0% |
|
|
|
| REPURCHASE AGREEMENTS (g) 1.0% |
|
|
|
|
|
|
|
|
|
$ |
|
|
3,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $3,248) |
|
|
|
|
|
3,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $559,144) |
|
|
|
|
|
589,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 185.2%
(Cost $559,144) |
|
|
$ |
|
|
589,458 |
|
|
|
| Auction Rate Preferred Shares (52.4)% |
|
|
|
|
|
(166,700 |
) |
|
|
| Variable Rate MuniFund Term Preferred Shares, at liquidation value (7.3)% |
|
|
|
|
|
(23,130 |
) |
|
|
| Other Assets and Liabilities, net (25.5)% |
|
|
(81,315 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
318,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
| (e) |
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 December 31, 2018.
|
(f) RESTRICTED SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issuer Description |
|
Coupon |
|
Maturity
Date |
|
|
Acquisition
Date |
|
|
Cost |
|
|
Market
Value |
|
|
Market Value
as Percentage
of Net Assets
Applicable to
Common
Shareholders |
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2011 |
|
5.500% |
|
|
11/15/2056 |
|
|
|
07/20/2007 |
|
|
|
$ 4 |
|
|
$ |
19 |
|
|
|
0.01% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
2.000 |
% |
|
|
12/31/2018 |
|
|
|
01/02/2019 |
|
|
$ |
3,248 |
|
|
U.S. Treasury Notes 2.875% due 09/30/2023 |
|
$ |
(3,318 |
) |
|
$ |
3,248 |
|
|
$ |
3,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
|
|
|
$ |
(3,318 |
) |
|
$ |
3,248 |
|
|
$ |
3,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 34 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
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 December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
3,248 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
3,248 |
|
|
$ |
(3,318 |
) |
|
$ |
(70 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
3,248 |
|
|
$ |
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 regarding master netting arrangements. |
FAIR
VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2018
in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
| Alabama |
|
$ |
0 |
|
|
$ |
20,849 |
|
|
$ |
0 |
|
|
$ |
20,849 |
|
| Alaska |
|
|
0 |
|
|
|
3,416 |
|
|
|
0 |
|
|
|
3,416 |
|
| Arizona |
|
|
0 |
|
|
|
7,326 |
|
|
|
0 |
|
|
|
7,326 |
|
| Arkansas |
|
|
0 |
|
|
|
2,759 |
|
|
|
0 |
|
|
|
2,759 |
|
| California |
|
|
0 |
|
|
|
63,339 |
|
|
|
0 |
|
|
|
63,339 |
|
| Colorado |
|
|
0 |
|
|
|
15,771 |
|
|
|
0 |
|
|
|
15,771 |
|
| Connecticut |
|
|
0 |
|
|
|
7,894 |
|
|
|
0 |
|
|
|
7,894 |
|
| District of Columbia |
|
|
0 |
|
|
|
4,524 |
|
|
|
0 |
|
|
|
4,524 |
|
| Florida |
|
|
0 |
|
|
|
8,175 |
|
|
|
0 |
|
|
|
8,175 |
|
| Georgia |
|
|
0 |
|
|
|
14,260 |
|
|
|
0 |
|
|
|
14,260 |
|
| Hawaii |
|
|
0 |
|
|
|
1,533 |
|
|
|
0 |
|
|
|
1,533 |
|
| Illinois |
|
|
0 |
|
|
|
45,371 |
|
|
|
0 |
|
|
|
45,371 |
|
| Indiana |
|
|
0 |
|
|
|
3,237 |
|
|
|
0 |
|
|
|
3,237 |
|
| Iowa |
|
|
0 |
|
|
|
2,953 |
|
|
|
0 |
|
|
|
2,953 |
|
| Kansas |
|
|
0 |
|
|
|
4,356 |
|
|
|
0 |
|
|
|
4,356 |
|
| Kentucky |
|
|
0 |
|
|
|
1,062 |
|
|
|
0 |
|
|
|
1,062 |
|
| Louisiana |
|
|
0 |
|
|
|
11,586 |
|
|
|
0 |
|
|
|
11,586 |
|
| Maryland |
|
|
0 |
|
|
|
2,287 |
|
|
|
0 |
|
|
|
2,287 |
|
| Massachusetts |
|
|
0 |
|
|
|
13,867 |
|
|
|
0 |
|
|
|
13,867 |
|
| Michigan |
|
|
0 |
|
|
|
13,999 |
|
|
|
0 |
|
|
|
13,999 |
|
| Minnesota |
|
|
0 |
|
|
|
3,068 |
|
|
|
0 |
|
|
|
3,068 |
|
| Missouri |
|
|
0 |
|
|
|
3,147 |
|
|
|
0 |
|
|
|
3,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Nebraska |
|
$ |
0 |
|
|
$ |
2,729 |
|
|
$ |
0 |
|
|
$ |
2,729 |
|
| Nevada |
|
|
0 |
|
|
|
5,105 |
|
|
|
0 |
|
|
|
5,105 |
|
| New Jersey |
|
|
0 |
|
|
|
37,380 |
|
|
|
0 |
|
|
|
37,380 |
|
| New Mexico |
|
|
0 |
|
|
|
7,566 |
|
|
|
0 |
|
|
|
7,566 |
|
| New York |
|
|
0 |
|
|
|
89,543 |
|
|
|
0 |
|
|
|
89,543 |
|
| Ohio |
|
|
0 |
|
|
|
32,700 |
|
|
|
0 |
|
|
|
32,700 |
|
| Oklahoma |
|
|
0 |
|
|
|
1,645 |
|
|
|
0 |
|
|
|
1,645 |
|
| Oregon |
|
|
0 |
|
|
|
2,646 |
|
|
|
0 |
|
|
|
2,646 |
|
| Pennsylvania |
|
|
0 |
|
|
|
23,291 |
|
|
|
0 |
|
|
|
23,291 |
|
| Puerto Rico |
|
|
0 |
|
|
|
3,249 |
|
|
|
0 |
|
|
|
3,249 |
|
| Rhode Island |
|
|
0 |
|
|
|
2,255 |
|
|
|
0 |
|
|
|
2,255 |
|
| South Carolina |
|
|
0 |
|
|
|
8,731 |
|
|
|
0 |
|
|
|
8,731 |
|
| Tennessee |
|
|
0 |
|
|
|
13,615 |
|
|
|
0 |
|
|
|
13,615 |
|
| Texas |
|
|
0 |
|
|
|
50,449 |
|
|
|
0 |
|
|
|
50,449 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
3,028 |
|
|
|
0 |
|
|
|
3,028 |
|
| Utah |
|
|
0 |
|
|
|
12,146 |
|
|
|
0 |
|
|
|
12,146 |
|
| Virginia |
|
|
0 |
|
|
|
5,010 |
|
|
|
0 |
|
|
|
5,010 |
|
| Washington |
|
|
0 |
|
|
|
13,627 |
|
|
|
0 |
|
|
|
13,627 |
|
| West Virginia |
|
|
0 |
|
|
|
4,861 |
|
|
|
0 |
|
|
|
4,861 |
|
| Wisconsin |
|
|
0 |
|
|
|
11,855 |
|
|
|
0 |
|
|
|
11,855 |
|
| Short-Term Instruments |
|
| Repurchase Agreements |
|
|
0 |
|
|
|
3,248 |
|
|
|
0 |
|
|
|
3,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
589,458 |
|
|
$ |
0 |
|
|
$ |
589,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no
significant transfers into or out of Level 3 during the period ended December 31, 2018.
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
35 |
Schedule of Investments PIMCO
Municipal Income Fund II
(Amounts in thousands*, except number of
shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 190.7% |
|
|
|
| MUNICIPAL BONDS & NOTES 185.7% |
|
|
|
| ALABAMA 7.7% |
|
|
| Alabama Federal Aid Highway Financing Authority Revenue
Bonds, Series 2016 |
|
| 5.000% due 09/01/2035 (d) |
|
$ |
|
|
7,000 |
|
|
$ |
|
|
8,086 |
|
| 5.000% due 09/01/2036 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
8,055 |
|
|
| Alabama State Docks Department Revenue Bonds,
Series 2010 |
|
| 6.000% due 10/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,144 |
|
|
| Jefferson County, Alabama Sewer Revenue Bonds,
Series 2013 |
|
| 0.000% due 10/01/2050 (c) |
|
|
|
|
18,500 |
|
|
|
|
|
16,098 |
|
| 6.500% due 10/01/2053 |
|
|
|
|
18,000 |
|
|
|
|
|
21,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ARIZONA 8.0% |
|
|
| Pima County, Arizona Industrial Development Authority Revenue
Bonds, Series 2010 |
|
| 5.250% due 10/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,567 |
|
|
| Pinal County, Arizona Electric District No. 3, Revenue
Bonds, Series 2011 |
|
| 5.250% due 07/01/2036 |
|
|
|
|
1,750 |
|
|
|
|
|
1,894 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
3,700 |
|
|
|
|
|
4,004 |
|
|
| Salt River Project Agricultural Improvement & Power
District, Arizona Revenue Bonds, Series 2009 |
|
| 5.000% due 01/01/2039 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,000 |
|
|
| Salt Verde Financial Corp., Arizona Revenue Bonds,
Series 2007 |
|
| 5.000% due 12/01/2032 |
|
|
|
|
12,430 |
|
|
|
|
|
14,425 |
|
| 5.000% due 12/01/2037 |
|
|
|
|
22,400 |
|
|
|
|
|
25,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CALIFORNIA 16.9% |
|
|
| Bay Area Toll Authority, California Revenue Bonds,
Series 2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
6,000 |
|
|
|
|
|
6,355 |
|
|
| Bay Area Toll Authority, California Revenue Bonds,
Series 2013 |
|
| 5.250% due 04/01/2048 |
|
|
|
|
5,000 |
|
|
|
|
|
5,733 |
|
|
| Bay Area Toll Authority, California Revenue Bonds,
Series 2014 |
|
| 5.000% due 10/01/2054 |
|
|
|
|
2,000 |
|
|
|
|
|
2,184 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2010 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,543 |
|
| 6.461% due 11/15/2036 (e) |
|
|
|
|
5,000 |
|
|
|
|
|
5,613 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
3,000 |
|
|
|
|
|
3,210 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2016 |
|
| 5.000% due 11/15/2046 (d) |
|
|
|
|
12,500 |
|
|
|
|
|
13,824 |
|
|
| California Municipal Finance Authority Revenue Bonds,
Series 2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
2,355 |
|
|
|
|
|
2,613 |
|
|
| California Pollution Control Financing Authority Revenue
Bonds, Series 2012 |
|
| 5.000% due 07/01/2037 |
|
|
|
|
990 |
|
|
|
|
|
996 |
|
|
| California State General Obligation Bonds, Series
2009 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
9,500 |
|
|
|
|
|
9,596 |
|
|
| California State General Obligation Bonds, Series
2010 |
|
| 5.250% due 11/01/2040 |
|
|
|
|
5,945 |
|
|
|
|
|
6,264 |
|
| 5.500% due 03/01/2040 |
|
|
|
|
5,750 |
|
|
|
|
|
5,968 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (FHA Insured), Series 2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
4,890 |
|
|
|
|
|
5,032 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
17,415 |
|
|
|
|
|
17,932 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2010 |
|
| 5.000% due 11/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2041 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,086 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
5,690 |
|
|
|
|
|
6,083 |
|
|
| California Statewide Communities Development Authority
Revenue Notes, Series 2011 |
|
| 6.500% due 11/01/2021 |
|
|
|
|
340 |
|
|
|
|
|
367 |
|
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
1,750 |
|
|
|
|
|
2,364 |
|
|
| Morongo Band of Mission Indians, California Revenue Bonds,
Series 2018 |
|
| 5.000% due 10/01/2042 |
|
|
|
|
1,250 |
|
|
|
|
|
1,278 |
|
|
| Newport Beach, California Revenue Bonds,
Series 2011 |
|
| 5.875% due 12/01/2030 |
|
|
|
|
3,000 |
|
|
|
|
|
3,361 |
|
|
| Peralta Community College District, California General
Obligation Bonds, Series 2009 |
|
| 5.000% due 08/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
510 |
|
|
| San Marcos Unified School District, California General
Obligation Bonds, Series 2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
3,300 |
|
|
|
|
|
3,584 |
|
|
| Santa Monica Community College District, California General
Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (d) |
|
|
|
|
10,375 |
|
|
|
|
|
10,768 |
|
|
| Torrance, California Revenue Bonds, Series
2010 |
|
| 5.000% due 09/01/2040 |
|
|
|
|
4,725 |
|
|
|
|
|
4,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
122,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COLORADO 2.8% |
|
|
| Aurora, Colorado Revenue Bonds, Series
2010 |
|
| 5.000% due 12/01/2040 |
|
|
|
|
5,800 |
|
|
|
|
|
6,021 |
|
|
| Board of Governors of Colorado State University System
Revenue Bonds, Series 2017 |
|
| 4.000% due 03/01/2038 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,071 |
|
|
| Colorado Health Facilities Authority Revenue Bonds,
Series 2010 |
|
| 5.000% due 01/01/2040 |
|
|
|
|
6,045 |
|
|
|
|
|
6,199 |
|
|
| Colorado State Building Excellent School Certificates of
Participation Bonds, Series 2018 |
|
| 4.000% due 03/15/2043 |
|
|
|
|
3,250 |
|
|
|
|
|
3,325 |
|
|
| Denver Health & Hospital Authority, Colorado Revenue
Bonds, Series 2010 |
|
| 5.625% due 12/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,038 |
|
|
| Public Authority for Colorado Energy Revenue Bonds,
Series 2008 |
|
| 6.500% due 11/15/2038 |
|
|
|
|
1,430 |
|
|
|
|
|
1,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONNECTICUT 0.3% |
|
|
| Connecticut State Health & Educational Facility
Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 07/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,049 |
|
|
| Harbor Point Infrastructure Improvement District, Connecticut
Tax Allocation Bonds, Series 2010 |
|
| 7.875% due 04/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DISTRICT OF COLUMBIA 0.6% |
|
|
| District of Columbia Revenue Bonds, (NPFGC Insured),
Series 2002 |
|
| 6.545% due 08/01/2037 |
|
|
|
|
4,000 |
|
|
|
|
|
4,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FLORIDA 4.8% |
|
|
| Brevard County, Florida Health Facilities Authority Revenue
Bonds, Series 2009 |
|
| 7.000% due 04/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,013 |
|
|
| Broward County, Florida Airport System Revenue Bonds, Series
2009 |
|
| 5.375% due 10/01/2029 |
|
|
|
|
600 |
|
|
|
|
|
615 |
|
|
| Clearwater, Florida Water & Sewer Revenue Bonds,
Series 2009 |
|
| 5.250% due 12/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Florida Development Finance Corp. Revenue Notes,
Series 2011 |
|
| 6.500% due 06/15/2021 |
|
$ |
|
|
175 |
|
|
$ |
|
|
182 |
|
|
| Florida State General Obligation Bonds, Series
2018 |
|
| 4.000% due 07/01/2040 (d) |
|
|
|
|
10,155 |
|
|
|
|
|
10,654 |
|
|
| Highlands County, Florida Health Facilities Authority Revenue
Bonds, Series 2008 |
|
| 5.625% due 11/15/2037 |
|
|
|
|
3,000 |
|
|
|
|
|
3,088 |
|
|
| Orlando-Orange County, Florida Expressway Authority Revenue
Bonds, Series 2010 |
|
| 5.000% due 07/01/2040 |
|
|
|
|
10,000 |
|
|
|
|
|
10,463 |
|
|
| Putnam County Development Authority, Florida Revenue Bonds,
Series 2018 |
|
| 5.000% due 03/15/2042 |
|
|
|
|
3,590 |
|
|
|
|
|
3,973 |
|
|
| South Miami Health Facilities Authority, Florida Revenue
Bonds, Series 2017 |
|
| 5.000% due 08/15/2042 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GEORGIA 5.6% |
|
|
| Atlanta Department of Aviation, Georgia Revenue Bonds, Series
2010 |
|
| 5.000% due 01/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,542 |
|
|
| Atlanta Development Authority, Georgia Revenue Bonds, Series
2015 |
|
| 5.000% due 07/01/2044 |
|
|
|
|
3,895 |
|
|
|
|
|
4,246 |
|
|
| Atlanta Development Authority, Georgia Revenue Bonds, Series
2017 |
|
| 6.750% due 01/01/2035 |
|
|
|
|
7,500 |
|
|
|
|
|
7,244 |
|
|
| Fayette County, Georgia Hospital Authority Revenue Bonds,
Series 2016 |
|
| 5.000% due 07/01/2046 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,634 |
|
|
| Municipal Electric Authority of Georgia Revenue Bonds,
Series 2015 |
|
| 5.000% due 07/01/2060 |
|
|
|
|
19,680 |
|
|
|
|
|
20,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 19.5% |
|
|
| Chicago Board of Education, Illinois General Obligation
Bonds, Series 2012 |
|
| 5.000% due 12/01/2042 |
|
|
|
|
8,000 |
|
|
|
|
|
8,008 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2007 |
|
| 5.500% due 01/01/2035 |
|
|
|
|
10,000 |
|
|
|
|
|
10,563 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
1,250 |
|
|
|
|
|
1,305 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2015 |
|
| 5.375% due 01/01/2029 |
|
|
|
|
14,100 |
|
|
|
|
|
15,024 |
|
| 5.500% due 01/01/2034 |
|
|
|
|
5,200 |
|
|
|
|
|
5,504 |
|
|
| Chicago, Illinois Motor Fuel Tax Revenue Bonds, (AGC
Insured), Series 2008 |
|
| 5.000% due 01/01/2038 |
|
|
|
|
1,250 |
|
|
|
|
|
1,253 |
|
|
| Chicago, Illinois Revenue Bonds, Series
2002 |
|
| 5.000% due 01/01/2029 |
|
|
|
|
2,000 |
|
|
|
|
|
2,321 |
|
|
| Chicago, Illinois Special Assessment Bonds,
Series 2003 |
|
| 6.625% due 12/01/2022 |
|
|
|
|
1,352 |
|
|
|
|
|
1,354 |
|
| 6.750% due 12/01/2032 |
|
|
|
|
5,262 |
|
|
|
|
|
5,289 |
|
|
| Hillside Village, Illinois Tax Allocation Bonds,
Series 2008 |
|
| 6.550% due 01/01/2020 |
|
|
|
|
1,430 |
|
|
|
|
|
1,444 |
|
| 7.000% due 01/01/2028 |
|
|
|
|
2,900 |
|
|
|
|
|
2,929 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2007 |
|
| 6.000% due 03/01/2037 ^(a) |
|
|
|
|
250 |
|
|
|
|
|
60 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2009 |
|
| 7.125% due 11/15/2037 |
|
|
|
|
700 |
|
|
|
|
|
714 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2010 |
|
| 6.000% due 05/01/2028 |
|
|
|
|
2,000 |
|
|
|
|
|
2,108 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2013 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
6,000 |
|
|
|
|
|
6,097 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2017 |
|
| 5.250% due 12/01/2052 |
|
|
|
|
2,800 |
|
|
|
|
|
1,603 |
|
|
| Illinois Sports Facilities Authority Revenue Bonds, (AMBAC
Insured), Series 2001 |
|
| 5.500% due 06/15/2030 |
|
|
|
|
26,225 |
|
|
|
|
|
26,288 |
|
|
|
|
|
|
|
|
|
|
| 36 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Illinois State General Obligation Bonds, Series
2017 |
|
| 5.000% due 11/01/2029 |
|
$ |
|
|
2,500 |
|
|
$ |
|
|
2,657 |
|
|
| Illinois State General Obligation Bonds, Series
2018 |
|
| 4.625% due 05/01/2037 |
|
|
|
|
2,175 |
|
|
|
|
|
2,181 |
|
| 5.000% due 05/01/2041 |
|
|
|
|
1,500 |
|
|
|
|
|
1,547 |
|
|
| Illinois State General Obligation Notes, Series
2017 |
|
| 5.000% due 11/01/2027 |
|
|
|
|
15,000 |
|
|
|
|
|
16,129 |
|
|
| Illinois State Toll Highway Authority Revenue Bonds,
Series 2016 |
|
| 5.000% due 01/01/2041 (d) |
|
|
|
|
12,500 |
|
|
|
|
|
13,831 |
|
|
| Metropolitan Pier & Exposition Authority, Illinois
Revenue Bonds, (AGM Insured), Series 2010 |
|
| 0.000% due 06/15/2045 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
3,027 |
|
|
| Metropolitan Pier & Exposition Authority, Illinois
Revenue Bonds, Series 2012 |
|
| 0.000% due 12/15/2051 (b) |
|
|
|
|
5,000 |
|
|
|
|
|
981 |
|
|
| Regional Transportation Authority, Illinois Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2038 (d) |
|
|
|
|
8,000 |
|
|
|
|
|
9,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
141,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INDIANA 0.3% |
|
|
| Indiana Health & Educational Facilities Financing
Authority Revenue Bonds, Series 2006 |
|
| 4.000% due 11/15/2046 |
|
|
|
|
1,000 |
|
|
|
|
|
1,003 |
|
|
| Vigo County, Indiana Hospital Authority Revenue Bonds, Series
2011 |
|
| 7.500% due 09/01/2022 |
|
|
|
|
1,130 |
|
|
|
|
|
1,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| IOWA 1.5% |
|
|
| Iowa Finance Authority Revenue Bonds, Series
2014 |
|
| 2.000% due 05/15/2056 ^ |
|
|
|
|
144 |
|
|
|
|
|
2 |
|
| 5.400% due 11/15/2046 ^ |
|
|
|
|
757 |
|
|
|
|
|
798 |
|
|
| Iowa Tobacco Settlement Authority Revenue Bonds,
Series 2005 |
|
| 5.600% due 06/01/2034 |
|
|
|
|
10,350 |
|
|
|
|
|
10,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KANSAS 0.8% |
|
|
| Kansas Development Finance Authority Revenue Bonds, Series
2009 |
|
| 5.750% due 11/15/2038 |
|
|
|
|
500 |
|
|
|
|
|
517 |
|
|
| University of Kansas Hospital Authority Revenue Bonds, Series
2015 |
|
| 4.000% due 09/01/2040 (d) |
|
|
|
|
5,500 |
|
|
|
|
|
5,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KENTUCKY 0.1% |
|
|
| Kentucky Economic Development Finance Authority Revenue
Bonds, Series 2010 |
|
| 6.375% due 06/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOUISIANA 2.4% |
|
|
| Louisiana Gasoline & Fuels Tax State Revenue Bonds,
Series 2017 |
|
| 4.000% due 05/01/2045 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,178 |
|
|
| Louisiana Local Government Environmental
Facilities & Community Development Authority Revenue Bonds, Series 2010 |
|
| 5.875% due 10/01/2040 |
|
|
|
|
750 |
|
|
|
|
|
801 |
|
| 6.000% due 10/01/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,070 |
|
| 6.500% due 11/01/2035 |
|
|
|
|
450 |
|
|
|
|
|
480 |
|
|
| Louisiana Public Facilities Authority Revenue Bonds,
Series 2011 |
|
| 6.500% due 05/15/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,212 |
|
|
| Louisiana Public Facilities Authority Revenue Bonds,
Series 2017 |
|
| 5.000% due 05/15/2046 |
|
|
|
|
5,000 |
|
|
|
|
|
5,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| MARYLAND 1.7% |
|
|
| Baltimore County, Maryland General Obligation Bonds,
Series 2018 |
|
| 4.000% due 03/01/2045 (d) |
|
$ |
|
|
8,000 |
|
|
$ |
|
|
8,298 |
|
|
| Maryland Health & Higher Educational Facilities
Authority Revenue Bonds, Series 2010 |
|
| 6.250% due 01/01/2041 |
|
|
|
|
1,400 |
|
|
|
|
|
1,518 |
|
|
| Maryland Health & Higher Educational Facilities
Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 08/15/2041 |
|
|
|
|
2,380 |
|
|
|
|
|
2,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MASSACHUSETTS 6.1% |
|
|
| Commonwealth of Massachusettes General Obligation Bonds,
Series 2018 |
|
| 4.000% due 05/01/2037 (d) |
|
|
|
|
9,000 |
|
|
|
|
|
9,384 |
|
|
| Commonwealth of Massachusetts General Obligation Bonds,
Series 2017 |
|
| 5.000% due 11/01/2037 |
|
|
|
|
2,625 |
|
|
|
|
|
3,030 |
|
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2010 |
|
| 7.000% due 07/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,076 |
|
| 7.625% due 10/15/2037 |
|
|
|
|
535 |
|
|
|
|
|
557 |
|
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2016 |
|
| 4.000% due 10/01/2046 (d) |
|
|
|
|
5,200 |
|
|
|
|
|
5,318 |
|
| 5.000% due 01/01/2047 |
|
|
|
|
2,500 |
|
|
|
|
|
2,675 |
|
|
| Massachusetts School Building Authority Revenue Bonds, Series
2012 |
|
| 5.250% due 02/15/2048 (d) |
|
|
|
|
7,500 |
|
|
|
|
|
8,701 |
|
|
| Massachusetts State College Building Authority Revenue Bonds,
Series 2009 |
|
| 5.500% due 05/01/2039 |
|
|
|
|
2,900 |
|
|
|
|
|
2,936 |
|
|
| University of Massachusetts Building Authority, Revenue
Bonds, Series 2013 |
|
| 4.000% due 11/01/2043 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MICHIGAN 3.7% |
|
|
| Michigan Finance Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 12/01/2040 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,026 |
|
| 5.000% due 12/01/2031 (d) |
|
|
|
|
2,600 |
|
|
|
|
|
3,000 |
|
| 5.000% due 12/01/2046 (d) |
|
|
|
|
5,100 |
|
|
|
|
|
5,661 |
|
|
| Michigan Public Educational Facilities Authority Revenue
Bonds, Series 2007 |
|
| 6.500% due 09/01/2037 ^ |
|
|
|
|
760 |
|
|
|
|
|
562 |
|
|
| Michigan State Hospital Finance Authority Revenue Bonds,
Series 2016 |
|
| 4.000% due 11/15/2047 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,020 |
|
|
| Michigan Tobacco Settlement Finance Authority Revenue Bonds,
Series 2008 |
|
| 0.000% due 06/01/2058 (b) |
|
|
|
|
25,000 |
|
|
|
|
|
655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MINNESOTA 0.6% |
|
|
| Rochester, Minnesota Revenue Bonds, Series
2018 |
|
| 4.000% due 11/15/2048 |
|
|
|
|
3,750 |
|
|
|
|
|
3,847 |
|
|
| St. Louis Park, Minnesota Revenue Bonds, Series
2009 |
|
| 5.750% due 07/01/2039 |
|
|
|
|
400 |
|
|
|
|
|
408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MISSISSIPPI 0.0% |
|
|
| Mississippi Development Bank Revenue Bonds, (AMBAC Insured),
Series 1999 |
|
| 5.000% due 07/01/2024 |
|
|
|
|
40 |
|
|
|
|
|
41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MISSOURI 1.5% |
|
|
| Lee’s Summit, Missouri Tax Allocation Bonds,
Series 2011 |
|
| 5.625% due 10/01/2023 |
|
|
|
|
145 |
|
|
|
|
|
146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Missouri State Health & Educational Facilities
Authority Revenue Bonds, Series 2013 |
|
| 5.000% due 11/15/2044 |
|
$ |
|
|
10,000 |
|
|
$ |
|
|
10,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEBRASKA 1.6% |
|
|
| Omaha Public Power District, Nebraska Revenue Bonds,
Series 2012 |
|
| 4.000% due 02/01/2046 (d) |
|
|
|
|
11,350 |
|
|
|
|
|
11,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEVADA 1.6% |
|
|
| Clark County, Nevada General Obligation Bonds,
Series 2018 |
|
| 4.000% due 07/01/2044 (d) |
|
|
|
|
9,500 |
|
|
|
|
|
9,665 |
|
|
| Reno, Nevada Revenue Bonds, Series 2018 |
|
| 0.000% due 07/01/2058 (b) |
|
|
|
|
24,000 |
|
|
|
|
|
1,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW HAMPSHIRE 0.3% |
|
|
| New Hampshire Business Finance Authority Revenue Bonds,
Series 2009 |
|
| 6.125% due 10/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW JERSEY 6.5% |
|
|
| Burlington County, New Jersey Bridge Commission Revenue
Bonds, Series 2007 |
|
| 5.625% due 01/01/2038 |
|
|
|
|
950 |
|
|
|
|
|
903 |
|
|
| New Jersey Economic Development Authority Revenue Bonds,
Series 1998 |
|
| 6.000% due 05/15/2028 ^ |
|
|
|
|
141 |
|
|
|
|
|
5 |
|
|
| New Jersey Economic Development Authority Revenue Bonds,
Series 2010 |
|
| 5.875% due 06/01/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,114 |
|
|
| New Jersey Economic Development Authority Revenue Bonds,
Series 2016 |
|
| 5.000% due 06/15/2041 |
|
|
|
|
5,000 |
|
|
|
|
|
5,264 |
|
|
| New Jersey Economic Development Authority Special Assessment
Bonds, Series 2002 |
|
| 5.750% due 10/01/2021 |
|
|
|
|
2,395 |
|
|
|
|
|
2,498 |
|
|
| New Jersey Health Care Facilities Financing Authority Revenue
Bonds, Series 2011 |
|
| 6.000% due 07/01/2037 |
|
|
|
|
1,500 |
|
|
|
|
|
1,651 |
|
|
| New Jersey Health Care Facilities Financing Authority Revenue
Bonds, Series 2013 |
|
| 5.500% due 07/01/2043 |
|
|
|
|
4,000 |
|
|
|
|
|
4,448 |
|
|
| New Jersey Transportation Trust Fund Authority Revenue Bonds,
(AGM Insured), Series 2006 |
|
| 0.000% due 12/15/2034 (b) |
|
|
|
|
2,500 |
|
|
|
|
|
1,310 |
|
|
| New Jersey Transportation Trust Fund Authority Revenue Bonds,
Series 2018 |
|
| 5.000% due 12/15/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,617 |
|
|
| New Jersey Turnpike Authority Revenue Bonds,
Series 2009 |
|
| 5.250% due 01/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,000 |
|
|
| South Jersey Port Corp., New Jersey Revenue Bonds,
Series 2017 |
|
| 5.000% due 01/01/2049 |
|
|
|
|
1,010 |
|
|
|
|
|
1,097 |
|
|
| Tobacco Settlement Financing Corp, New Jersey Revenue Bonds,
Series 2018 |
|
| 5.250% due 06/01/2046 |
|
|
|
|
4,200 |
|
|
|
|
|
4,484 |
|
|
| Tobacco Settlement Financing Corp., New Jersey Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
19,500 |
|
|
|
|
|
19,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW MEXICO 0.3% |
|
|
| Farmington, New Mexico Revenue Bonds,
Series 2010 |
|
| 5.900% due 06/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
37 |
Schedule of Investments PIMCO Municipal Income Fund
II (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| NEW YORK 26.7% |
|
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds,
Series 2011 |
|
| 5.250% due 02/15/2047 |
|
$ |
|
|
33,500 |
|
|
$ |
|
|
35,575 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2011 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
3,880 |
|
|
|
|
|
4,233 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2017 |
|
| 4.000% due 11/15/2042 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,085 |
|
|
| Nassau County, New York Industrial Development Agency Revenue
Bonds, Series 2014 |
|
| 2.000% due 01/01/2049 ^(a) |
|
|
|
|
298 |
|
|
|
|
|
51 |
|
| 6.700% due 01/01/2049 |
|
|
|
|
825 |
|
|
|
|
|
855 |
|
|
| New York City Transitional Finance Authority Future Tax
Secured Revenue, New York Revenue Bonds, Series 2018 |
|
| 4.000% due 05/01/2043 (d) |
|
|
|
|
20,000 |
|
|
|
|
|
20,548 |
|
|
| New York City Transitional Finance Authority Future Tax
Secured, New York Revenue Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,184 |
|
|
| New York City Water & Sewer System, New York Revenue
Bonds, Series 2009 |
|
| 5.000% due 06/15/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,026 |
|
|
| New York City, New York General Obligation Bonds,
Series 2018 |
|
| 5.000% due 12/01/2037 |
|
|
|
|
3,500 |
|
|
|
|
|
4,070 |
|
|
| New York City, New York Water & Sewer System Revenue
Bonds, Series 2017 |
|
| 5.000% due 06/15/2048 (d) |
|
|
|
|
15,000 |
|
|
|
|
|
16,914 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2005 |
|
| 5.250% due 10/01/2035 (d) |
|
|
|
|
6,505 |
|
|
|
|
|
7,901 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2010 |
|
| 5.125% due 01/15/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,028 |
|
| 5.625% due 07/15/2047 |
|
|
|
|
2,500 |
|
|
|
|
|
2,585 |
|
| 6.375% due 07/15/2049 |
|
|
|
|
1,250 |
|
|
|
|
|
1,296 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2011 |
|
| 5.000% due 12/15/2041 |
|
|
|
|
10,000 |
|
|
|
|
|
10,721 |
|
| 5.750% due 11/15/2051 |
|
|
|
|
44,000 |
|
|
|
|
|
48,225 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
4,250 |
|
|
|
|
|
4,367 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
1,750 |
|
|
|
|
|
1,846 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
8,000 |
|
|
|
|
|
8,205 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2018 |
|
| 5.000% due 03/15/2040 |
|
|
|
|
5,000 |
|
|
|
|
|
5,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
193,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NORTH DAKOTA 0.5% |
|
|
| Stark County, North Dakota Revenue Bonds,
Series 2007 |
|
| 6.750% due 01/01/2033 |
|
|
|
|
3,710 |
|
|
|
|
|
3,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 14.7% |
|
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue
Bonds, Series 2007 |
|
| 5.125% due 06/01/2024 |
|
|
|
|
5,735 |
|
|
|
|
|
5,356 |
|
| 5.875% due 06/01/2047 |
|
|
|
|
29,400 |
|
|
|
|
|
27,967 |
|
| 6.250% due 06/01/2037 |
|
|
|
|
15,000 |
|
|
|
|
|
14,924 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
19,400 |
|
|
|
|
|
19,399 |
|
|
| Geisinger Authority, Pennsylvania Revenue Bonds,
Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
20,580 |
|
|
|
|
|
20,836 |
|
|
| Hamilton County, Ohio Sales Tax Revenue Bonds,
Series 2011 |
|
| 5.000% due 12/01/2030 |
|
|
|
|
3,900 |
|
|
|
|
|
4,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Ohio State Revenue Bonds, Series 2009 |
|
| 5.500% due 01/01/2039 |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,000 |
|
|
| Ohio State Turnpike Commission Revenue Bonds, Series
2013 |
|
| 5.000% due 02/15/2048 |
|
|
|
|
10,000 |
|
|
|
|
|
10,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OKLAHOMA 0.3% |
|
|
| Oklahoma Development Finance Authority Revenue Bonds, Series
2018 |
|
| 5.500% due 08/15/2057 |
|
|
|
|
2,000 |
|
|
|
|
|
2,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OREGON 0.3% |
|
|
| Clackamas County, Oregon Hospital Facility Authority Revenue
Bonds, Series 2009 |
|
| 5.500% due 07/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,020 |
|
|
| Oregon State Department of Administrative Services
Certificates of Participation Bonds, Series 2009 |
|
| 5.250% due 05/01/2039 |
|
|
|
|
1,155 |
|
|
|
|
|
1,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PENNSYLVANIA 5.5% |
|
|
| Berks County, Pennsylvania Municipal Authority Revenue Bonds,
Series 2012 |
|
| 5.000% due 11/01/2044 |
|
|
|
|
7,500 |
|
|
|
|
|
7,952 |
|
|
| Luzerne County, Pennsylvania Industrial Development Authority
Revenue Bonds, Series 2009 |
|
| 5.500% due 12/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
513 |
|
|
| Montgomery County Industrial Development Authority,
Pennsylvania Revenue Bonds, (FHA Insured), Series 2010 |
|
| 5.375% due 08/01/2038 |
|
|
|
|
8,465 |
|
|
|
|
|
8,930 |
|
|
| Pennsylvania Higher Educational Facilities Authority Revenue
Bonds, Series 2010 |
|
| 5.000% due 03/01/2040 |
|
|
|
|
400 |
|
|
|
|
|
414 |
|
| 6.000% due 07/01/2043 |
|
|
|
|
850 |
|
|
|
|
|
900 |
|
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series
2013 |
|
| 5.000% due 12/01/2043 |
|
|
|
|
10,000 |
|
|
|
|
|
10,694 |
|
|
| Philadelphia Hospitals & Higher Education Facilities
Authority, Pennsylvania Revenue Bonds, Series 2012 |
|
| 5.625% due 07/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,069 |
|
| 5.625% due 07/01/2042 |
|
|
|
|
7,000 |
|
|
|
|
|
7,436 |
|
|
| Philadelphia, Pennsylvania Water & Wastewater
Revenue Bonds, Series 2009 |
|
| 5.250% due 01/01/2036 |
|
|
|
|
500 |
|
|
|
|
|
500 |
|
|
| Westmoreland County Industrial Development Authority,
Pennsylvania Revenue Bonds, Series 2010 |
|
| 5.125% due 07/01/2030 |
|
|
|
|
1,000 |
|
|
|
|
|
1,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.1% |
|
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM
Insured), Series 2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
7,000 |
|
|
|
|
|
7,581 |
|
|
| Puerto Rico Highway & Transportation Authority
Revenue Bonds, (AGC Insured), Series 2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
600 |
|
|
|
|
|
633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RHODE ISLAND 4.2% |
|
|
| Narragansett Bay Commission, Rhode Island Revenue Bonds,
Series 2013 |
|
| 4.000% due 09/01/2043 (d) |
|
|
|
|
12,000 |
|
|
|
|
|
12,180 |
|
|
| Tobacco Settlement Financing Corp., Rhode Island Revenue
Bonds, Series 2015 |
|
| 5.000% due 06/01/2050 |
|
|
|
|
18,450 |
|
|
|
|
|
18,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| SOUTH CAROLINA 1.6% |
|
|
| Greenwood County, South Carolina Revenue Bonds, Series
2009 |
|
| 5.375% due 10/01/2039 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,026 |
|
|
| South Carolina State Public Service Authority Revenue Bonds,
Series 2013 |
|
| 5.500% due 12/01/2053 |
|
|
|
|
10,000 |
|
|
|
|
|
10,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TENNESSEE 2.7% |
|
|
| Bristol Industrial Development Board, Tennessee Revenue
Bonds, Series 2016 |
|
| 0.000% due 12/01/2031 (b) |
|
|
|
|
3,975 |
|
|
|
|
|
1,895 |
|
| 5.125% due 12/01/2042 |
|
|
|
|
5,000 |
|
|
|
|
|
4,849 |
|
|
| Claiborne County, Tennessee Industrial Development Board
Revenue Bonds, Series 2009 |
|
| 6.625% due 10/01/2039 |
|
|
|
|
1,750 |
|
|
|
|
|
1,791 |
|
|
| Johnson City Health & Educational Facilities Board,
Tennessee Revenue Bonds, Series 2010 |
|
| 6.000% due 07/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,060 |
|
|
| Tennessee Energy Acquisition Corp., Revenue Bonds, Series
2006 |
|
| 5.000% due 02/01/2023 |
|
|
|
|
3,000 |
|
|
|
|
|
3,258 |
|
| 5.000% due 02/01/2027 |
|
|
|
|
6,000 |
|
|
|
|
|
6,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TEXAS 20.7% |
|
|
| Clifton Higher Education Finance Corp., Texas Revenue Bonds,
Series 2018 |
|
| 6.125% due 08/15/2048 |
|
|
|
|
1,750 |
|
|
|
|
|
1,771 |
|
|
| Dallas, Texas Civic Center Revenue Bonds, (AGC Insured),
Series 2009 |
|
| 5.250% due 08/15/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,548 |
|
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds,
Series 2013 |
|
| 5.000% due 04/01/2053 |
|
|
|
|
21,000 |
|
|
|
|
|
22,555 |
|
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds,
Series 2018 |
|
| 5.000% due 10/01/2048 (d) |
|
|
|
|
7,500 |
|
|
|
|
|
8,464 |
|
|
| Harris County, Texas Cultural Education Facilities Finance
Corp. Revenue Bonds, Series 2009 |
|
| 5.250% due 10/01/2029 |
|
|
|
|
3,750 |
|
|
|
|
|
3,834 |
|
| 5.500% due 10/01/2039 |
|
|
|
|
12,700 |
|
|
|
|
|
12,971 |
|
|
| Houston Community College System, Texas General Obligation
Bonds, Series 2013 |
|
| 4.000% due 02/15/2043 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,102 |
|
|
| New Hope Cultural Education Facilities Finance Corp., Texas
Revenue Bonds, Series 2017 |
|
| 4.000% due 08/15/2034 (d) |
|
|
|
|
700 |
|
|
|
|
|
732 |
|
| 4.000% due 08/15/2035 (d) |
|
|
|
|
1,400 |
|
|
|
|
|
1,457 |
|
| 4.000% due 08/15/2036 (d) |
|
|
|
|
1,330 |
|
|
|
|
|
1,376 |
|
| 4.000% due 08/15/2037 (d) |
|
|
|
|
1,620 |
|
|
|
|
|
1,669 |
|
| 4.000% due 08/15/2040 (d) |
|
|
|
|
1,800 |
|
|
|
|
|
1,837 |
|
|
| North Texas Tollway Authority Revenue Bonds,
Series 2011 |
|
| 5.000% due 01/01/2038 |
|
|
|
|
5,750 |
|
|
|
|
|
6,033 |
|
| 5.500% due 09/01/2041 |
|
|
|
|
1,300 |
|
|
|
|
|
1,420 |
|
|
| North Texas Tollway Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 01/01/2043 |
|
|
|
|
3,590 |
|
|
|
|
|
3,636 |
|
| 5.000% due 01/01/2048 |
|
|
|
|
3,500 |
|
|
|
|
|
3,858 |
|
|
| North Texas Tollway Authority Revenue Bonds,
Series 2018 |
|
| 5.000% due 01/01/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
1,105 |
|
|
| San Antonio Public Facilities Corp., Texas Revenue Bonds,
Series 2012 |
|
| 4.000% due 09/15/2042 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,092 |
|
|
| San Juan Higher Education Finance Authority, Texas Revenue
Bonds, Series 2010 |
|
| 6.700% due 08/15/2040 |
|
|
|
|
250 |
|
|
|
|
|
269 |
|
|
| Tarrant County, Texas Cultural Education Facilities Finance
Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
13,600 |
|
|
|
|
|
13,706 |
|
|
|
|
|
|
|
|
|
|
| 38 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Tarrant County, Texas Cultural Education Facilities Finance
Corp. Revenue Bonds, Series 2017 |
|
| 6.750% due 11/15/2047 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,089 |
|
|
| Texas Municipal Gas Acquisition & Supply Corp.
Revenue Bonds, Series 2008 |
|
| 6.250% due 12/15/2026 |
|
|
|
|
18,015 |
|
|
|
|
|
20,602 |
|
|
| Texas State University System Revenue Bonds,
Series 2018 |
|
| 4.100% due 03/15/2039 (d) |
|
|
|
|
6,800 |
|
|
|
|
|
6,928 |
|
|
| Texas Water Development Board Revenue Bonds, Series
2018 |
|
| 4.000% due 10/15/2038 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,458 |
|
|
| Wise County, Texas Revenue Bonds, Series
2011 |
|
| 8.000% due 08/15/2034 |
|
|
|
|
1,000 |
|
|
|
|
|
1,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 1.0% |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2009 |
|
| 6.625% due 10/01/2029 |
|
|
|
|
2,485 |
|
|
|
|
|
2,516 |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2010 |
|
| 5.000% due 10/01/2025 |
|
|
|
|
4,500 |
|
|
|
|
|
4,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UTAH 0.4% |
|
|
| Utah County, Utah Revenue Bonds, Series
2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| VIRGINIA 2.9% |
|
|
| Fairfax County, Virginia Industrial Development Authority
Revenue Bonds, Series 2009 |
|
| 5.500% due 05/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,014 |
|
|
| James City County, Virginia Economic Development Authority
Revenue Bonds, Series 2013 |
|
| 2.000% due 10/01/2048 ^(a) |
|
|
|
|
412 |
|
|
|
|
|
36 |
|
| 6.000% due 06/01/2043 |
|
|
|
|
1,261 |
|
|
|
|
|
1,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| University of Virginia Revenue Bonds, Series
2018 |
|
| 4.000% due 08/01/2048 (d) |
|
$ |
|
|
10,000 |
|
|
$ |
|
|
10,404 |
|
|
| Virginia Commonwealth Transportation Board Revenue Bonds,
Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
8,200 |
|
|
|
|
|
8,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WASHINGTON 2.2% |
|
|
| Seattle, Washington Municipal Light and Power Revenue Bonds,
Series 2018 |
|
| 4.000% due 01/01/2041 (d) |
|
|
|
|
7,735 |
|
|
|
|
|
8,001 |
|
|
| Washington Health Care Facilities Authority Revenue Bonds,
(AGC Insured), Series 2008 |
|
| 6.000% due 08/15/2039 |
|
|
|
|
1,300 |
|
|
|
|
|
1,333 |
|
|
| Washington Health Care Facilities Authority Revenue Bonds,
Series 2009 |
|
| 7.375% due 03/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,009 |
|
|
| Washington State Convention Center Public Facilities District
Revenue Bonds, Series 2018 |
|
| 5.000% due 07/01/2058 |
|
|
|
|
4,750 |
|
|
|
|
|
5,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEST VIRGINIA 1.5% |
|
|
| Monongalia County, West Virginia Commission Special District
Revenue Bonds, Series 2017 |
|
| 5.500% due 06/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,037 |
|
|
| West Virginia Economic Development Authority Revenue Bonds,
Series 2010 |
|
| 5.375% due 12/01/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,101 |
|
|
| West Virginia Economic Development Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 06/15/2040 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,064 |
|
|
| West Virginia State General Obligation Bonds,
Series 2018 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
3,845 |
|
|
|
|
|
4,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| WISCONSIN 4.2% |
|
|
| Public Finance Authority, Wisconsin Revenue Bonds, Series
2017 |
|
| 7.000% due 01/01/2050 |
|
$ |
|
|
4,500 |
|
|
$ |
|
|
5,282 |
|
|
| Public Finance Authority, Wisconsin Revenue Bonds, Series
2018 |
|
| 6.375% due 01/01/2048 |
|
|
|
|
4,000 |
|
|
|
|
|
4,125 |
|
| 7.000% due 07/01/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
1,058 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2009 |
|
| 6.625% due 02/15/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,006 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2016 |
|
| 4.000% due 11/15/2046 (d) |
|
|
|
|
15,585 |
|
|
|
|
|
15,624 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2017 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost
$1,286,533) |
|
|
1,343,893 |
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 5.0% |
|
|
|
| REPURCHASE AGREEMENTS (f) 5.0% |
|
|
|
|
|
|
|
|
|
|
|
|
36,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Short-Term Instruments (Cost $36,462) |
|
|
36,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments in Securities (Cost $1,322,995) |
|
|
1,380,355 |
|
|
|
|
|
|
|
|
| Total Investments 190.7% (Cost $1,322,995) |
|
|
$ |
|
|
1,380,355 |
|
|
|
| Auction Rate Preferred Shares (41.2)% |
|
|
|
|
|
(298,275 |
) |
|
|
| Variable Rate MuniFund Term Preferred Shares, at liquidation value (9.4)% |
|
|
(68,328 |
) |
|
|
| Other Assets and Liabilities, net (40.1)% |
|
|
(290,039 |
) |
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
723,713 |
|
|
|
|
|
|
|
|
|
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. |
| (e) |
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 December 31, 2018.
|
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(f) REPURCHASE AGREEMENTS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty |
|
Lending
Rate |
|
|
Settlement
Date |
|
|
Maturity
Date |
|
|
Principal
Amount |
|
|
Collateralized By |
|
Collateral
(Received) |
|
|
Repurchase
Agreements,
at Value |
|
|
Repurchase
Agreement
Proceeds
to
be
Received(1) |
|
| FICC |
|
|
2.000 |
% |
|
|
12/31/2018 |
|
|
|
01/02/2019 |
|
|
$ |
36,462 |
|
|
U.S. Treasury Notes 2.875% due 09/30/2023 |
|
$ |
(37,195 |
) |
|
$ |
36,462 |
|
|
$ |
36,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
|
|
|
$ |
(37,195 |
) |
|
$ |
36,462 |
|
|
$ |
36,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
39 |
Schedule of Investments PIMCO Municipal Income Fund
II (Cont.)
December 31, 2018
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 December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
36,464 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
36,464 |
|
|
$ |
(37,195 |
) |
|
$ |
(731 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
36,464 |
|
|
$ |
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 regarding master netting arrangements. |
FAIR
VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2018
in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
| Alabama |
|
$ |
0 |
|
|
$ |
55,478 |
|
|
$ |
0 |
|
|
$ |
55,478 |
|
| Arizona |
|
|
0 |
|
|
|
57,564 |
|
|
|
0 |
|
|
|
57,564 |
|
| California |
|
|
0 |
|
|
|
122,251 |
|
|
|
0 |
|
|
|
122,251 |
|
| Colorado |
|
|
0 |
|
|
|
20,597 |
|
|
|
0 |
|
|
|
20,597 |
|
| Connecticut |
|
|
0 |
|
|
|
2,391 |
|
|
|
0 |
|
|
|
2,391 |
|
| District of Columbia |
|
|
0 |
|
|
|
4,000 |
|
|
|
0 |
|
|
|
4,000 |
|
| Florida |
|
|
0 |
|
|
|
34,378 |
|
|
|
0 |
|
|
|
34,378 |
|
| Georgia |
|
|
0 |
|
|
|
40,886 |
|
|
|
0 |
|
|
|
40,886 |
|
| Illinois |
|
|
0 |
|
|
|
141,261 |
|
|
|
0 |
|
|
|
141,261 |
|
| Indiana |
|
|
0 |
|
|
|
2,237 |
|
|
|
0 |
|
|
|
2,237 |
|
| Iowa |
|
|
0 |
|
|
|
11,153 |
|
|
|
0 |
|
|
|
11,153 |
|
| Kansas |
|
|
0 |
|
|
|
6,126 |
|
|
|
0 |
|
|
|
6,126 |
|
| Kentucky |
|
|
0 |
|
|
|
1,062 |
|
|
|
0 |
|
|
|
1,062 |
|
| Louisiana |
|
|
0 |
|
|
|
17,097 |
|
|
|
0 |
|
|
|
17,097 |
|
| Maryland |
|
|
0 |
|
|
|
12,343 |
|
|
|
0 |
|
|
|
12,343 |
|
| Massachusetts |
|
|
0 |
|
|
|
43,815 |
|
|
|
0 |
|
|
|
43,815 |
|
| Michigan |
|
|
0 |
|
|
|
26,924 |
|
|
|
0 |
|
|
|
26,924 |
|
| Minnesota |
|
|
0 |
|
|
|
4,255 |
|
|
|
0 |
|
|
|
4,255 |
|
| Mississippi |
|
|
0 |
|
|
|
41 |
|
|
|
0 |
|
|
|
41 |
|
| Missouri |
|
|
0 |
|
|
|
10,830 |
|
|
|
0 |
|
|
|
10,830 |
|
| Nebraska |
|
|
0 |
|
|
|
11,471 |
|
|
|
0 |
|
|
|
11,471 |
|
| Nevada |
|
|
0 |
|
|
|
11,567 |
|
|
|
0 |
|
|
|
11,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| New Hampshire |
|
$ |
0 |
|
|
$ |
2,063 |
|
|
$ |
0 |
|
|
$ |
2,063 |
|
| New Jersey |
|
|
0 |
|
|
|
47,197 |
|
|
|
0 |
|
|
|
47,197 |
|
| New Mexico |
|
|
0 |
|
|
|
2,093 |
|
|
|
0 |
|
|
|
2,093 |
|
| New York |
|
|
0 |
|
|
|
193,483 |
|
|
|
0 |
|
|
|
193,483 |
|
| North Dakota |
|
|
0 |
|
|
|
3,718 |
|
|
|
0 |
|
|
|
3,718 |
|
| Ohio |
|
|
0 |
|
|
|
106,417 |
|
|
|
0 |
|
|
|
106,417 |
|
| Oklahoma |
|
|
0 |
|
|
|
2,194 |
|
|
|
0 |
|
|
|
2,194 |
|
| Oregon |
|
|
0 |
|
|
|
2,188 |
|
|
|
0 |
|
|
|
2,188 |
|
| Pennsylvania |
|
|
0 |
|
|
|
39,443 |
|
|
|
0 |
|
|
|
39,443 |
|
| Puerto Rico |
|
|
0 |
|
|
|
8,214 |
|
|
|
0 |
|
|
|
8,214 |
|
| Rhode Island |
|
|
0 |
|
|
|
30,679 |
|
|
|
0 |
|
|
|
30,679 |
|
| South Carolina |
|
|
0 |
|
|
|
11,684 |
|
|
|
0 |
|
|
|
11,684 |
|
| Tennessee |
|
|
0 |
|
|
|
19,571 |
|
|
|
0 |
|
|
|
19,571 |
|
| Texas |
|
|
0 |
|
|
|
149,601 |
|
|
|
0 |
|
|
|
149,601 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
7,071 |
|
|
|
0 |
|
|
|
7,071 |
|
| Utah |
|
|
0 |
|
|
|
3,068 |
|
|
|
0 |
|
|
|
3,068 |
|
| Virginia |
|
|
0 |
|
|
|
21,136 |
|
|
|
0 |
|
|
|
21,136 |
|
| Washington |
|
|
0 |
|
|
|
15,604 |
|
|
|
0 |
|
|
|
15,604 |
|
| West Virginia |
|
|
0 |
|
|
|
10,612 |
|
|
|
0 |
|
|
|
10,612 |
|
| Wisconsin |
|
|
0 |
|
|
|
30,130 |
|
|
|
0 |
|
|
|
30,130 |
|
| Short-Term Instruments |
|
| Repurchase Agreements |
|
|
0 |
|
|
|
36,462 |
|
|
|
0 |
|
|
|
36,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
1,380,355 |
|
|
$ |
0 |
|
|
$ |
1,380,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no
significant transfers into or out of Level 3 during the period ended December 31, 2018.
|
|
|
|
|
|
|
|
|
| 40 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO
Municipal Income Fund III
December 31, 2018
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 185.7% |
|
|
|
| MUNICIPAL BONDS & NOTES 185.2% |
|
|
|
| ALABAMA 7.8% |
|
|
| Alabama Special Care Facilities Financing
Authority-Birmingham, Alabama Revenue Bonds, (AGC Insured), Series 2009 |
|
| 6.000% due 06/01/2039 |
|
$ |
|
|
500 |
|
|
$ |
|
|
509 |
|
|
| Alabama State Docks Department Revenue Bonds, Series
2010 |
|
| 6.000% due 10/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,072 |
|
|
| Jefferson County, Alabama Sewer Revenue Bonds, Series
2013 |
|
| 0.000% due 10/01/2050 (c) |
|
|
|
|
19,000 |
|
|
|
|
|
16,532 |
|
| 6.500% due 10/01/2053 |
|
|
|
|
7,500 |
|
|
|
|
|
8,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ARIZONA 5.5% |
|
|
| Pima County, Arizona Industrial Development Authority Revenue
Bonds, Series 2010 |
|
| 5.250% due 10/01/2040 |
|
|
|
|
750 |
|
|
|
|
|
784 |
|
|
| Salt River Project Agricultural Improvement & Power
District, Arizona Revenue Bonds, Series 2009 |
|
| 5.000% due 01/01/2039 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,000 |
|
|
| Salt Verde Financial Corp., Arizona Revenue Bonds, Series
2007 |
|
| 5.000% due 12/01/2037 |
|
|
|
|
11,600 |
|
|
|
|
|
13,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CALIFORNIA 19.6% |
|
|
| Bay Area Toll Authority, California Revenue Bonds, Series
2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
1,500 |
|
|
|
|
|
1,589 |
|
| 5.000% due 10/01/2042 |
|
|
|
|
3,260 |
|
|
|
|
|
3,453 |
|
|
| Bay Area Toll Authority, California Revenue Bonds, Series
2013 |
|
| 5.250% due 04/01/2053 |
|
|
|
|
12,000 |
|
|
|
|
|
13,758 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2009 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
2,500 |
|
|
|
|
|
2,555 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
1,500 |
|
|
|
|
|
1,605 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2013 |
|
| 5.000% due 08/15/2052 |
|
|
|
|
2,015 |
|
|
|
|
|
2,166 |
|
|
| California Municipal Finance Authority Revenue Bonds, Series
2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
1,180 |
|
|
|
|
|
1,309 |
|
|
| California State General Obligation Bonds, Series
2009 |
|
| 5.750% due 04/01/2031 |
|
|
|
|
2,500 |
|
|
|
|
|
2,524 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
5,000 |
|
|
|
|
|
5,051 |
|
|
| California State General Obligation Bonds, Series
2010 |
|
| 5.250% due 11/01/2040 |
|
|
|
|
1,300 |
|
|
|
|
|
1,369 |
|
| 5.500% due 03/01/2040 |
|
|
|
|
3,200 |
|
|
|
|
|
3,321 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (FHA Insured), Series 2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
2,580 |
|
|
|
|
|
2,655 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
9,200 |
|
|
|
|
|
9,473 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2010 |
|
| 6.250% due 10/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,030 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2041 |
|
|
|
|
3,000 |
|
|
|
|
|
3,258 |
|
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,702 |
|
|
| Morongo Band of Mission Indians, California Revenue Bonds,
Series 2018 |
|
| 5.000% due 10/01/2042 |
|
|
|
|
750 |
|
|
|
|
|
767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Palomar Health, California Certificates of Participation
Bonds, Series 2009 |
|
| 6.750% due 11/01/2039 |
|
$ |
|
|
1,250 |
|
|
$ |
|
|
1,302 |
|
|
| San Marcos Unified School District, California General
Obligation Bonds, Series 2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,600 |
|
|
|
|
|
1,738 |
|
|
| Tobacco Securitization Authority of Southern California
Revenue Bonds, Series 2006 |
|
| 5.000% due 06/01/2037 |
|
|
|
|
6,200 |
|
|
|
|
|
6,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COLORADO 1.8% |
|
|
| Board of Governors of Colorado State University System
Revenue Bonds, Series 2017 |
|
| 4.000% due 03/01/2038 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,554 |
|
|
| Colorado Health Facilities Authority Revenue Bonds, Series
2010 |
|
| 5.000% due 01/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,051 |
|
|
| Colorado State Building Excellent School Certificates of
Participation Bonds, Series 2018 |
|
| 4.000% due 03/15/2043 |
|
|
|
|
1,250 |
|
|
|
|
|
1,279 |
|
|
| Public Authority for Colorado Energy Revenue Bonds, Series
2008 |
|
| 6.500% due 11/15/2038 |
|
|
|
|
500 |
|
|
|
|
|
679 |
|
|
| Regional Transportation District, Colorado Revenue Bonds,
Series 2010 |
|
| 6.000% due 01/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONNECTICUT 0.4% |
|
|
| Harbor Point Infrastructure Improvement District, Connecticut
Tax Allocation Bonds, Series 2010 |
|
| 7.875% due 04/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DISTRICT OF COLUMBIA 0.7% |
|
|
| District of Columbia Revenue Bonds, (NPFGC Insured), Series
2002 |
|
| 6.545% due 08/01/2037 |
|
|
|
|
2,500 |
|
|
|
|
|
2,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FLORIDA 5.9% |
|
|
| Broward County, Florida Airport System Revenue Bonds, Series
2009 |
|
| 5.375% due 10/01/2029 |
|
|
|
|
500 |
|
|
|
|
|
513 |
|
|
| Cape Coral, Florida Water & Sewer Revenue Bonds,
(AGM Insured), Series 2011 |
|
| 5.000% due 10/01/2041 |
|
|
|
|
3,000 |
|
|
|
|
|
3,254 |
|
|
| Florida Development Finance Corp. Revenue Notes, Series
2011 |
|
| 6.500% due 06/15/2021 |
|
|
|
|
175 |
|
|
|
|
|
182 |
|
|
| Greater Orlando Aviation Authority, Florida Revenue Bonds,
Series 2010 |
|
| 6.461% due 10/01/2039 (e) |
|
|
|
|
5,000 |
|
|
|
|
|
5,476 |
|
|
| Miami-Dade County, Florida Educational Facilities Authority
Revenue Bonds, Series 2018 |
|
| 4.000% due 04/01/2053 |
|
|
|
|
4,000 |
|
|
|
|
|
4,049 |
|
|
| Miami-Dade County, Florida Transit System Revenue Bonds,
Series 2018 |
|
| 4.000% due 07/01/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,021 |
|
|
| Putnam County Development Authority, Florida Revenue Bonds,
Series 2018 |
|
| 5.000% due 03/15/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,213 |
|
|
| South Miami Health Facilities Authority, Florida Revenue
Bonds, Series 2017 |
|
| 4.000% due 08/15/2047 (d) |
|
|
|
|
3,750 |
|
|
|
|
|
3,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GEORGIA 4.9% |
|
|
| Atlanta Development Authority, Georgia Revenue Bonds, Series
2017 |
|
| 6.750% due 01/01/2035 |
|
|
|
|
3,600 |
|
|
|
|
|
3,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Fayette County, Georgia Hospital Authority Revenue Bonds,
Series 2016 |
|
| 5.000% due 07/01/2046 (d) |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,272 |
|
|
| Municipal Electric Authority of Georgia Revenue Bonds, Series
2015 |
|
| 5.000% due 07/01/2060 |
|
|
|
|
10,000 |
|
|
|
|
|
10,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| HAWAII 0.5% |
|
|
| Hawaii Pacific Health Revenue Bonds, Series
2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 15.2% |
|
|
| Chicago Board of Education, Illinois General Obligation
Bonds, Series 2012 |
|
| 5.000% due 12/01/2042 |
|
|
|
|
4,000 |
|
|
|
|
|
4,004 |
|
|
| Chicago O’Hare International Airport, Illinois Revenue
Bonds, Series 2018 |
|
| 5.000% due 01/01/2048 |
|
|
|
|
3,500 |
|
|
|
|
|
3,896 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2007 |
|
| 5.500% due 01/01/2035 |
|
|
|
|
400 |
|
|
|
|
|
423 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,044 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2015 |
|
| 5.375% due 01/01/2029 |
|
|
|
|
7,200 |
|
|
|
|
|
7,672 |
|
| 5.500% due 01/01/2034 |
|
|
|
|
2,665 |
|
|
|
|
|
2,821 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
3,000 |
|
|
|
|
|
3,344 |
|
|
| Chicago, Illinois Revenue Bonds, Series
2002 |
|
| 5.000% due 01/01/2027 |
|
|
|
|
1,750 |
|
|
|
|
|
2,031 |
|
|
| Chicago, Illinois Waterworks Revenue Bonds,
Series 2012 |
|
| 4.000% due 11/01/2037 |
|
|
|
|
3,750 |
|
|
|
|
|
3,750 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2007 |
|
| 5.875% due 03/01/2027 ^(a) |
|
|
|
|
1,000 |
|
|
|
|
|
240 |
|
| 6.000% due 03/01/2037 ^(a) |
|
|
|
|
625 |
|
|
|
|
|
150 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2009 |
|
| 7.125% due 11/15/2037 |
|
|
|
|
400 |
|
|
|
|
|
408 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2010 |
|
| 6.000% due 08/15/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,045 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2013 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,048 |
|
|
| Illinois Finance Authority Revenue Bonds, Series
2017 |
|
| 5.250% due 12/01/2052 |
|
|
|
|
1,250 |
|
|
|
|
|
716 |
|
|
| Illinois State General Obligation Bonds, Series
2018 |
|
| 4.625% due 05/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,005 |
|
| 5.000% due 05/01/2041 |
|
|
|
|
1,500 |
|
|
|
|
|
1,547 |
|
|
| Illinois State General Obligation Notes, Series
2017 |
|
| 5.000% due 11/01/2027 |
|
|
|
|
7,000 |
|
|
|
|
|
7,527 |
|
|
| Metropolitan Pier & Exposition Authority, Illinois
Revenue Bonds, (AGM Insured), Series 2010 |
|
| 0.000% due 06/15/2045 (b) |
|
|
|
|
6,500 |
|
|
|
|
|
1,967 |
|
|
| Metropolitan Pier & Exposition Authority, Illinois
Revenue Bonds, Series 2012 |
|
| 0.000% due 12/15/2051 (b) |
|
|
|
|
2,500 |
|
|
|
|
|
490 |
|
|
| Regional Transportation Authority, Illinois Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2038 (d) |
|
|
|
|
3,900 |
|
|
|
|
|
4,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INDIANA 1.3% |
|
|
| Indiana Health & Educational Facilities Financing
Authority Revenue Bonds, Series 2006 |
|
| 4.000% due 11/15/2046 |
|
|
|
|
2,500 |
|
|
|
|
|
2,506 |
|
|
| Vigo County, Indiana Hospital Authority Revenue Bonds, Series
2011 |
|
| 7.500% due 09/01/2022 |
|
|
|
|
1,660 |
|
|
|
|
|
1,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
41 |
Schedule of Investments PIMCO Municipal Income Fund
III (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| IOWA 0.1% |
|
|
| Iowa Finance Authority Revenue Bonds, Series
2014 |
|
| 2.000% due 05/15/2056 ^ |
|
$ |
|
|
76 |
|
|
$ |
|
|
1 |
|
| 5.400% due 11/15/2046 ^ |
|
|
|
|
397 |
|
|
|
|
|
419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KANSAS 0.6% |
|
|
| University of Kansas Hospital Authority Revenue Bonds, Series
2015 |
|
| 4.000% due 09/01/2040 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KENTUCKY 1.5% |
|
|
| Kentucky Economic Development Finance Authority Revenue
Bonds, Series 2010 |
|
| 6.375% due 06/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,125 |
|
|
| Kentucky Economic Development Finance Authority Revenue
Bonds, Series 2017 |
|
| 5.000% due 08/15/2046 |
|
|
|
|
3,000 |
|
|
|
|
|
3,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOUISIANA 4.0% |
|
|
| Louisiana Gasoline & Fuels Tax State Revenue Bonds,
Series 2017 |
|
| 4.000% due 05/01/2045 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,102 |
|
|
| Louisiana Local Government Environmental
Facilities & Community Development Authority Revenue Bonds, Series 2010 |
|
| 5.875% due 10/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,602 |
|
| 6.000% due 10/01/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,070 |
|
| 6.500% due 11/01/2035 |
|
|
|
|
400 |
|
|
|
|
|
427 |
|
|
| Louisiana Public Facilities Authority Revenue Bonds, Series
2011 |
|
| 6.500% due 05/15/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,212 |
|
|
| Louisiana Public Facilities Authority Revenue Bonds, Series
2017 |
|
| 5.000% due 05/15/2042 |
|
|
|
|
4,000 |
|
|
|
|
|
4,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MARYLAND 1.9% |
|
|
| Baltimore County, Maryland General Obligation Bonds, Series
2018 |
|
| 4.000% due 03/01/2045 (d) |
|
|
|
|
3,600 |
|
|
|
|
|
3,734 |
|
|
| Maryland Economic Development Corp. Revenue Bonds, Series
2010 |
|
| 5.750% due 06/01/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,055 |
|
|
| Maryland Health & Higher Educational Facilities
Authority Revenue Bonds, Series 2010 |
|
| 6.250% due 01/01/2041 |
|
|
|
|
700 |
|
|
|
|
|
759 |
|
|
| Maryland Health & Higher Educational Facilities
Authority Revenue Bonds, Series 2011 |
|
| 6.000% due 07/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MASSACHUSETTS 9.7% |
|
|
| Commonwealth of Massachusetts General Obligation Bonds,
Series 2018 |
|
| 4.000% due 05/01/2037 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,171 |
|
|
| Commonwealth of Massachusetts General Obligation Bonds,
Series 2018 |
|
| 4.000% due 05/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,029 |
|
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2010 |
|
| 7.625% due 10/15/2037 |
|
|
|
|
275 |
|
|
|
|
|
287 |
|
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2011 |
|
| 5.500% due 11/15/2056 (b)(f) |
|
|
|
|
140 |
|
|
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2016 |
|
| 4.000% due 10/01/2046 (d) |
|
$ |
|
|
2,500 |
|
|
$ |
|
|
2,557 |
|
| 5.000% due 01/01/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,070 |
|
|
| Massachusetts Housing Finance Agency Revenue Bonds, Series
2003 |
|
| 5.125% due 06/01/2043 |
|
|
|
|
3,185 |
|
|
|
|
|
3,210 |
|
|
| Massachusetts School Building Authority Revenue Bonds, Series
2012 |
|
| 5.250% due 02/15/2048 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,480 |
|
|
| Massachusetts State College Building Authority Revenue Bonds,
Series 2009 |
|
| 5.500% due 05/01/2039 |
|
|
|
|
1,600 |
|
|
|
|
|
1,620 |
|
|
| University of Massachusetts Building Authority, Revenue
Bonds, Series 2013 |
|
| 4.000% due 11/01/2043 (d) |
|
|
|
|
15,745 |
|
|
|
|
|
15,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MICHIGAN 3.8% |
|
|
| Michigan Finance Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 12/01/2036 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,061 |
|
| 4.000% due 12/01/2040 (d) |
|
|
|
|
500 |
|
|
|
|
|
502 |
|
| 5.000% due 12/01/2031 (d) |
|
|
|
|
1,200 |
|
|
|
|
|
1,385 |
|
| 5.000% due 12/01/2046 (d) |
|
|
|
|
2,500 |
|
|
|
|
|
2,775 |
|
|
| Michigan State Hospital Finance Authority Revenue Bonds,
Series 2016 |
|
| 4.000% due 11/15/2047 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,010 |
|
|
| Michigan Tobacco Settlement Finance Authority Revenue Bonds,
Series 2008 |
|
| 0.000% due 06/01/2058 (b) |
|
|
|
|
12,500 |
|
|
|
|
|
327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MINNESOTA 0.5% |
|
|
| Rochester, Minnesota Revenue Bonds, Series
2018 |
|
| 4.000% due 11/15/2048 |
|
|
|
|
1,750 |
|
|
|
|
|
1,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MISSOURI 0.2% |
|
|
| Jennings, Missouri Revenue Bonds, Series
2006 |
|
| 5.000% due 11/01/2023 |
|
|
|
|
210 |
|
|
|
|
|
182 |
|
|
| Manchester, Missouri Tax Allocation Bonds,
Series 2010 |
|
| 6.875% due 11/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEBRASKA 3.4% |
|
|
| Central Plains Energy Project, Nebraska Revenue Bonds, Series
2017 |
|
| 5.000% due 09/01/2042 |
|
|
|
|
5,500 |
|
|
|
|
|
6,254 |
|
|
| Omaha Public Power District, Nebraska Revenue Bonds, Series
2012 |
|
| 4.000% due 02/01/2046 (d) |
|
|
|
|
5,500 |
|
|
|
|
|
5,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEVADA 1.6% |
|
|
| Clark County, Nevada General Obligation Bonds,
Series 2018 |
|
| 4.000% due 07/01/2044 (d) |
|
|
|
|
4,545 |
|
|
|
|
|
4,623 |
|
|
| Reno, Nevada Revenue Bonds, Series 2018 |
|
| 0.000% due 07/01/2058 (b) |
|
|
|
|
11,000 |
|
|
|
|
|
872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW HAMPSHIRE 0.6% |
|
|
| New Hampshire Business Finance Authority Revenue Bonds,
Series 2009 |
|
| 6.125% due 10/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| NEW JERSEY 7.9% |
|
|
| New Jersey Economic Development Authority Revenue Bonds,
Series 2016 |
|
| 5.000% due 06/15/2041 |
|
$ |
|
|
5,000 |
|
|
$ |
|
|
5,264 |
|
|
| New Jersey Economic Development Authority Special Assessment
Bonds, Series 2002 |
|
| 6.500% due 04/01/2028 |
|
|
|
|
4,500 |
|
|
|
|
|
5,154 |
|
|
| New Jersey Health Care Facilities Financing Authority Revenue
Bonds, Series 2013 |
|
| 5.500% due 07/01/2043 |
|
|
|
|
2,000 |
|
|
|
|
|
2,224 |
|
|
| New Jersey Transportation Trust Fund Authority Revenue Bonds,
(AGM Insured), Series 2006 |
|
| 0.000% due 12/15/2034 (b) |
|
|
|
|
3,200 |
|
|
|
|
|
1,678 |
|
|
| South Jersey Port Corp., New Jersey Revenue Bonds, Series
2017 |
|
| 5.000% due 01/01/2049 |
|
|
|
|
900 |
|
|
|
|
|
977 |
|
|
| Tobacco Settlement Financing Corp, New Jersey Revenue Bonds,
Series 2018 |
|
| 5.250% due 06/01/2046 |
|
|
|
|
2,000 |
|
|
|
|
|
2,135 |
|
|
| Tobacco Settlement Financing Corp., New Jersey Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2029 |
|
|
|
|
1,200 |
|
|
|
|
|
1,359 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
8,500 |
|
|
|
|
|
8,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW MEXICO 0.3% |
|
|
| Farmington, New Mexico Revenue Bonds, Series
2010 |
|
| 5.900% due 06/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 23.4% |
|
|
| Brooklyn Arena Local Development Corp., New York Revenue
Bonds, Series 2009 |
|
| 6.250% due 07/15/2040 |
|
|
|
|
9,800 |
|
|
|
|
|
10,259 |
|
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds,
Series 2011 |
|
| 5.750% due 02/15/2047 |
|
|
|
|
5,000 |
|
|
|
|
|
5,394 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2011 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
3,000 |
|
|
|
|
|
3,273 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2017 |
|
| 4.000% due 11/15/2042 (d) |
|
|
|
|
5,500 |
|
|
|
|
|
5,547 |
|
|
| Nassau County, New York Industrial Development Agency Revenue
Bonds, Series 2014 |
|
| 2.000% due 01/01/2049 ^(a) |
|
|
|
|
311 |
|
|
|
|
|
53 |
|
| 6.700% due 01/01/2049 |
|
|
|
|
863 |
|
|
|
|
|
894 |
|
|
| New York City Industrial Development Agency, New York
Revenue Bonds, (AGC Insured), Series 2009 |
|
| 7.000% due 03/01/2049 |
|
|
|
|
10,450 |
|
|
|
|
|
10,552 |
|
|
| New York City Transitional Finance Authority Future Tax
Secured Revenue, New York Revenue Bonds, Series 2018 |
|
| 4.000% due 05/01/2043 (d) |
|
|
|
|
9,000 |
|
|
|
|
|
9,247 |
|
|
| New York City Transitional Finance Authority Future Tax
Secured, New York Revenue Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,053 |
|
|
| New York City, New York General Obligation Bonds, Series
2018 |
|
| 5.000% due 12/01/2037 |
|
|
|
|
1,750 |
|
|
|
|
|
2,035 |
|
|
| New York City, New York Water & Sewer System Revenue
Bonds, Series 2017 |
|
| 5.000% due 06/15/2048 (d) |
|
|
|
|
7,500 |
|
|
|
|
|
8,457 |
|
|
| New York Liberty Development Corp., Revenue Bonds, Series
2007 |
|
| 5.500% due 10/01/2037 |
|
|
|
|
1,700 |
|
|
|
|
|
2,178 |
|
|
| New York Liberty Development Corp., Revenue Bonds, Series
2011 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
11,000 |
|
|
|
|
|
11,702 |
|
|
| New York Liberty Development Corp., Revenue Bonds, Series
2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,027 |
|
|
|
|
|
|
|
|
|
|
| 42 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| New York State Dormitory Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 02/15/2047 (d) |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,026 |
|
|
| New York State Urban Development Corp., Revenue Bonds, Series
2017 |
|
| 4.000% due 03/15/2046 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NORTH CAROLINA 2.6% |
|
|
| New Hanover County, North Carolina Revenue Bonds, Series
2011 |
|
| 5.000% due 10/01/2028 |
|
|
|
|
6,000 |
|
|
|
|
|
6,432 |
|
|
| University of North Carolina Hospitals at Chapel Hill Revenue
Bonds, Series 2016 |
|
| 4.000% due 02/01/2046 |
|
|
|
|
2,500 |
|
|
|
|
|
2,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 18.0% |
|
|
| Allen County, Ohio Revenue Bonds, Series
2010 |
|
| 5.000% due 06/01/2038 |
|
|
|
|
500 |
|
|
|
|
|
521 |
|
|
| American Municipal Power, Inc., Ohio Revenue Bonds, Series
2017 |
|
| 4.000% due 02/15/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,021 |
|
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue
Bonds, Series 2007 |
|
| 5.125% due 06/01/2024 |
|
|
|
|
955 |
|
|
|
|
|
892 |
|
| 5.875% due 06/01/2047 |
|
|
|
|
8,400 |
|
|
|
|
|
7,991 |
|
| 6.250% due 06/01/2037 |
|
|
|
|
5,000 |
|
|
|
|
|
4,975 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
30,350 |
|
|
|
|
|
30,348 |
|
|
| Geisinger Authority, Pennsylvania Revenue Bonds, Series
2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
9,310 |
|
|
|
|
|
9,426 |
|
|
| Hamilton County, Ohio Revenue Bonds, Series
2012 |
|
| 5.000% due 06/01/2042 |
|
|
|
|
1,500 |
|
|
|
|
|
1,591 |
|
|
| Ohio State Turnpike Commission Revenue Bonds, Series
2013 |
|
| 5.000% due 02/15/2048 |
|
|
|
|
5,000 |
|
|
|
|
|
5,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OKLAHOMA 0.5% |
|
|
| Oklahoma Development Finance Authority Revenue Bonds, Series
2018 |
|
| 5.500% due 08/15/2057 |
|
|
|
|
1,600 |
|
|
|
|
|
1,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PENNSYLVANIA 6.0% |
|
|
| Allegheny County, Pennsylvania Hospital Development Authority
Revenue Bonds, Series 2009 |
|
| 5.625% due 08/15/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,020 |
|
|
| Berks County, Pennsylvania Municipal Authority Revenue Bonds,
Series 2012 |
|
| 5.000% due 11/01/2044 |
|
|
|
|
6,600 |
|
|
|
|
|
6,998 |
|
|
| Dauphin County, Pennsylvania General Authority Revenue Bonds,
Series 2009 |
|
| 6.000% due 06/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,017 |
|
|
| Luzerne County, Pennsylvania Industrial Development Authority
Revenue Bonds, Series 2009 |
|
| 5.500% due 12/01/2039 |
|
|
|
|
100 |
|
|
|
|
|
103 |
|
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series
2009 |
|
| 5.125% due 12/01/2040 |
|
|
|
|
3,000 |
|
|
|
|
|
3,090 |
|
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series
2013 |
|
| 5.000% due 12/01/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,347 |
|
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series
2018 |
|
| 5.000% due 12/01/2043 |
|
|
|
|
750 |
|
|
|
|
|
834 |
|
|
| Philadelphia Hospitals & Higher Education Facilities
Authority, Pennsylvania Revenue Bonds, Series 2012 |
|
| 5.625% due 07/01/2042 |
|
|
|
|
1,645 |
|
|
|
|
|
1,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Philadelphia, Pennsylvania Water & Wastewater
Revenue Bonds, Series 2009 |
|
| 5.250% due 01/01/2036 |
|
$ |
|
|
500 |
|
|
$ |
|
|
500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.1% |
|
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM
Insured), Series 2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
3,500 |
|
|
|
|
|
3,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SOUTH CAROLINA 2.6% |
|
|
| Greenwood County, South Carolina Revenue Bonds, Series
2009 |
|
| 5.375% due 10/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,026 |
|
|
| South Carolina Ports Authority Revenue Bonds,
Series 2010 |
|
| 5.250% due 07/01/2040 |
|
|
|
|
800 |
|
|
|
|
|
840 |
|
|
| South Carolina State Public Service Authority Revenue Bonds,
Series 2013 |
|
| 5.125% due 12/01/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,249 |
|
| 5.500% due 12/01/2053 |
|
|
|
|
1,750 |
|
|
|
|
|
1,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TENNESSEE 1.4% |
|
|
| Bristol Industrial Development Board, Tennessee Revenue
Bonds, Series 2016 |
|
| 5.125% due 12/01/2042 |
|
|
|
|
2,500 |
|
|
|
|
|
2,425 |
|
|
| Claiborne County, Tennessee Industrial Development Board
Revenue Bonds, Series 2009 |
|
| 6.625% due 10/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,279 |
|
|
| Johnson City Health & Educational Facilities Board,
Tennessee Revenue Bonds, Series 2010 |
|
| 6.000% due 07/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TEXAS 16.3% |
|
|
| Bexar County Texas Hospital District, General Obligation
Bonds, Series 2018 |
|
| 4.000% due 02/15/2043 |
|
|
|
|
2,500 |
|
|
|
|
|
2,547 |
|
|
| Clifton Higher Education Finance Corp., Texas Revenue Bonds,
Series 2018 |
|
| 6.125% due 08/15/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
1,012 |
|
|
| Dallas, Texas Civic Center Revenue Bonds, (AGC Insured),
Series 2009 |
|
| 5.250% due 08/15/2038 |
|
|
|
|
1,300 |
|
|
|
|
|
1,325 |
|
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds,
Series 2013 |
|
| 5.000% due 04/01/2053 |
|
|
|
|
4,500 |
|
|
|
|
|
4,833 |
|
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds,
Series 2018 |
|
| 5.000% due 10/01/2048 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,514 |
|
|
| Houston Community College System, Texas General Obligation
Bonds, Series 2013 |
|
| 4.000% due 02/15/2043 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,051 |
|
|
| New Hope Cultural Education Facilities Finance Corp., Texas
Revenue Bonds, Series 2017 |
|
| 4.000% due 08/15/2034 (d) |
|
|
|
|
300 |
|
|
|
|
|
314 |
|
| 4.000% due 08/15/2035 (d) |
|
|
|
|
800 |
|
|
|
|
|
833 |
|
| 4.000% due 08/15/2036 (d) |
|
|
|
|
600 |
|
|
|
|
|
621 |
|
| 4.000% due 08/15/2037 (d) |
|
|
|
|
900 |
|
|
|
|
|
927 |
|
| 4.000% due 08/15/2040 (d) |
|
|
|
|
900 |
|
|
|
|
|
918 |
|
|
| North Texas Tollway Authority Revenue Bonds,
Series 2011 |
|
| 5.000% due 01/01/2038 |
|
|
|
|
3,000 |
|
|
|
|
|
3,147 |
|
| 5.500% due 09/01/2041 |
|
|
|
|
600 |
|
|
|
|
|
655 |
|
|
| North Texas Tollway Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 01/01/2043 |
|
|
|
|
1,500 |
|
|
|
|
|
1,519 |
|
| 5.000% due 01/01/2048 |
|
|
|
|
2,250 |
|
|
|
|
|
2,480 |
|
|
| Tarrant County, Texas Cultural Education Facilities Finance
Corp. Revenue Bonds, Series 2017 |
|
| 6.750% due 11/15/2047 |
|
|
|
|
500 |
|
|
|
|
|
545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Tender Option Bond Trust Receipts/Certificates, Texas General
Obligation Bonds, Series 2009 |
|
| 6.420% due 08/01/2039 (e) |
|
$ |
|
|
6,500 |
|
|
$ |
|
|
6,721 |
|
|
| Texas Municipal Gas Acquisition & Supply Corp.
Revenue Bonds, Series 2006 |
|
| 5.250% due 12/15/2026 |
|
|
|
|
150 |
|
|
|
|
|
176 |
|
|
| Texas Municipal Gas Acquisition & Supply Corp.
Revenue Bonds, Series 2008 |
|
| 6.250% due 12/15/2026 |
|
|
|
|
8,925 |
|
|
|
|
|
10,207 |
|
|
| Texas Water Development Board Revenue Bonds, Series
2018 |
|
| 4.000% due 10/15/2038 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,229 |
|
|
| University of North Texas System Revenue Bonds, Series
2018 |
|
| 4.000% due 04/15/2050 |
|
|
|
|
2,200 |
|
|
|
|
|
2,217 |
|
|
| Wise County, Texas Revenue Bonds, Series
2011 |
|
| 8.000% due 08/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 1.0% |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2009 |
|
| 6.625% due 10/01/2029 |
|
|
|
|
1,335 |
|
|
|
|
|
1,352 |
|
| 6.750% due 10/01/2037 |
|
|
|
|
1,165 |
|
|
|
|
|
1,179 |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2010 |
|
| 5.250% due 10/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UTAH 0.9% |
|
|
| Utah County, Utah Revenue Bonds, Series
2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| VIRGINIA 3.2% |
|
|
| Fairfax County, Virginia Industrial Development Authority
Revenue Bonds, Series 2009 |
|
| 5.500% due 05/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,014 |
|
|
| James City County, Virginia Economic Development Authority
Revenue Bonds, Series 2013 |
|
| 2.000% due 10/01/2048 ^(a) |
|
|
|
|
201 |
|
|
|
|
|
17 |
|
| 6.000% due 06/01/2043 |
|
|
|
|
615 |
|
|
|
|
|
571 |
|
|
| University of Virginia Revenue Bonds, Series
2018 |
|
| 4.000% due 08/01/2048 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,202 |
|
|
| Virginia Commonwealth Transportation Board Revenue Bonds,
Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WASHINGTON 2.6% |
|
|
| Seattle, Washington Municipal Light & Power Revenue
Bonds, Series 2018 |
|
| 4.000% due 01/01/2046 |
|
|
|
|
4,000 |
|
|
|
|
|
4,082 |
|
|
| Washington Health Care Facilities Authority Revenue Bonds,
Series 2009 |
|
| 7.375% due 03/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,009 |
|
|
| Washington Health Care Facilities Authority Revenue Bonds,
Series 2010 |
|
| 5.500% due 12/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
534 |
|
|
| Washington State Convention Center Public Facilities District
Revenue Bonds, Series 2018 |
|
| 5.000% due 07/01/2058 |
|
|
|
|
2,250 |
|
|
|
|
|
2,492 |
|
|
| Washington State Housing Finance Commission Revenue Bonds,
Series 2018 |
|
| 5.000% due 07/01/2038 |
|
|
|
|
825 |
|
|
|
|
|
839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEST VIRGINIA 1.4% |
|
|
| Monongalia County, West Virginia Commission Special District
Revenue Bonds, Series 2017 |
|
| 5.500% due 06/01/2037 |
|
|
|
|
1,000 |
|
|
|
|
|
1,019 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
43 |
Schedule of Investments PIMCO Municipal Income Fund
III (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| West Virginia Economic Development Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 06/15/2040 (d) |
|
$ |
|
|
1,500 |
|
|
$ |
|
|
1,548 |
|
|
| West Virginia State General Obligation Bonds,
Series 2018 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
2,000 |
|
|
|
|
|
2,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WISCONSIN 4.5% |
|
|
| Public Finance Authority, Wisconsin Revenue Bonds, Series
2017 |
|
| 7.000% due 01/01/2050 |
|
|
|
|
2,500 |
|
|
|
|
|
2,934 |
|
|
| Public Finance Authority, Wisconsin Revenue Bonds, Series
2018 |
|
| 6.375% due 01/01/2048 |
|
|
|
|
2,500 |
|
|
|
|
|
2,578 |
|
| 7.000% due 07/01/2048 |
|
|
|
|
750 |
|
|
|
|
|
794 |
|
|
| University of Wisconsin Hospitals & Clinics
Authority Revenue Bonds, Series 2013 |
|
| 5.000% due 04/01/2038 |
|
|
|
|
3,500 |
|
|
|
|
|
3,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2009 |
|
| 6.625% due 02/15/2039 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,006 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2010 |
|
| 5.625% due 04/15/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,048 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2016 |
|
| 4.000% due 11/15/2046 |
|
|
|
|
1,500 |
|
|
|
|
|
1,504 |
|
|
| Wisconsin Health & Educational Facilities Authority
Revenue Bonds, Series 2017 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost
$606,452) |
|
|
|
|
|
639,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
MARKET
VALUE
(000S) |
|
| SHORT-TERM INSTRUMENTS 0.5% |
|
|
|
| REPURCHASE AGREEMENTS (g) 0.5% |
|
|
|
|
|
|
|
|
|
$ |
|
|
1,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $1,750) |
|
|
|
|
|
1,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $608,202) |
|
|
|
|
|
641,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 185.7%
(Cost $608,202) |
|
|
$ |
|
|
641,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Auction Rate Preferred Shares (44.8)% |
|
|
|
|
|
|
|
|
|
|
(154,700 |
) |
|
|
| Variable Rate MuniFund Term Preferred Shares, at liquidation value (9.9)% |
|
|
|
|
|
|
|
|
|
|
(34,087 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Assets and Liabilities, net (31.0)% |
|
|
(107,189 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
345,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
| (e) |
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 December 31, 2018.
|
(f) RESTRICTED SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issuer Description |
|
Coupon |
|
Maturity
Date |
|
|
Acquisition
Date |
|
|
Cost |
|
|
Market
Value |
|
|
Market
Value
as Percentage
of Net Assets
Applicable to
Common
Shareholders |
|
| Massachusetts Development Finance Agency Revenue Bonds,
Series 2011 |
|
5.500% |
|
|
11/15/2056 |
|
|
|
07/20/2007 |
|
|
|
$ 5 |
|
|
$ |
25 |
|
|
|
0.01% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
2.000 |
% |
|
|
12/31/2018 |
|
|
|
01/02/2019 |
|
|
$ |
1,750 |
|
|
U.S. Treasury Notes 2.875% due 09/30/2023 |
|
$ |
(1,787 |
) |
|
$ |
1,750 |
|
|
$ |
1,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(1,787 |
) |
|
$ |
1,750 |
|
|
$ |
1,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 44 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
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 December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
1,750 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
1,750 |
|
|
$ |
(1,787 |
) |
|
$ |
(37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
1,750 |
|
|
$ |
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 regarding master netting arrangements. |
FAIR VALUE
MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing
the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
| Alabama |
|
$ |
0 |
|
|
$ |
26,903 |
|
|
$ |
0 |
|
|
$ |
26,903 |
|
| Arizona |
|
|
0 |
|
|
|
19,079 |
|
|
|
0 |
|
|
|
19,079 |
|
| California |
|
|
0 |
|
|
|
67,825 |
|
|
|
0 |
|
|
|
67,825 |
|
| Colorado |
|
|
0 |
|
|
|
6,068 |
|
|
|
0 |
|
|
|
6,068 |
|
| Connecticut |
|
|
0 |
|
|
|
1,342 |
|
|
|
0 |
|
|
|
1,342 |
|
| District of Columbia |
|
|
0 |
|
|
|
2,500 |
|
|
|
0 |
|
|
|
2,500 |
|
| Florida |
|
|
0 |
|
|
|
20,488 |
|
|
|
0 |
|
|
|
20,488 |
|
| Georgia |
|
|
0 |
|
|
|
16,980 |
|
|
|
0 |
|
|
|
16,980 |
|
| Hawaii |
|
|
0 |
|
|
|
1,581 |
|
|
|
0 |
|
|
|
1,581 |
|
| Illinois |
|
|
0 |
|
|
|
52,537 |
|
|
|
0 |
|
|
|
52,537 |
|
| Indiana |
|
|
0 |
|
|
|
4,319 |
|
|
|
0 |
|
|
|
4,319 |
|
| Iowa |
|
|
0 |
|
|
|
420 |
|
|
|
0 |
|
|
|
420 |
|
| Kansas |
|
|
0 |
|
|
|
2,040 |
|
|
|
0 |
|
|
|
2,040 |
|
| Kentucky |
|
|
0 |
|
|
|
5,294 |
|
|
|
0 |
|
|
|
5,294 |
|
| Louisiana |
|
|
0 |
|
|
|
13,727 |
|
|
|
0 |
|
|
|
13,727 |
|
| Maryland |
|
|
0 |
|
|
|
6,646 |
|
|
|
0 |
|
|
|
6,646 |
|
| Massachusetts |
|
|
0 |
|
|
|
33,411 |
|
|
|
0 |
|
|
|
33,411 |
|
| Michigan |
|
|
0 |
|
|
|
13,060 |
|
|
|
0 |
|
|
|
13,060 |
|
| Minnesota |
|
|
0 |
|
|
|
1,795 |
|
|
|
0 |
|
|
|
1,795 |
|
| Missouri |
|
|
0 |
|
|
|
684 |
|
|
|
0 |
|
|
|
684 |
|
| Nebraska |
|
|
0 |
|
|
|
11,812 |
|
|
|
0 |
|
|
|
11,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Nevada |
|
$ |
0 |
|
|
$ |
5,495 |
|
|
$ |
0 |
|
|
$ |
5,495 |
|
| New Hampshire |
|
|
0 |
|
|
|
2,063 |
|
|
|
0 |
|
|
|
2,063 |
|
| New Jersey |
|
|
0 |
|
|
|
27,417 |
|
|
|
0 |
|
|
|
27,417 |
|
| New Mexico |
|
|
0 |
|
|
|
1,046 |
|
|
|
0 |
|
|
|
1,046 |
|
| New York |
|
|
0 |
|
|
|
80,841 |
|
|
|
0 |
|
|
|
80,841 |
|
| North Carolina |
|
|
0 |
|
|
|
8,961 |
|
|
|
0 |
|
|
|
8,961 |
|
| Ohio |
|
|
0 |
|
|
|
62,127 |
|
|
|
0 |
|
|
|
62,127 |
|
| Oklahoma |
|
|
0 |
|
|
|
1,755 |
|
|
|
0 |
|
|
|
1,755 |
|
| Pennsylvania |
|
|
0 |
|
|
|
20,656 |
|
|
|
0 |
|
|
|
20,656 |
|
| Puerto Rico |
|
|
0 |
|
|
|
3,791 |
|
|
|
0 |
|
|
|
3,791 |
|
| South Carolina |
|
|
0 |
|
|
|
8,980 |
|
|
|
0 |
|
|
|
8,980 |
|
| Tennessee |
|
|
0 |
|
|
|
4,764 |
|
|
|
0 |
|
|
|
4,764 |
|
| Texas |
|
|
0 |
|
|
|
56,336 |
|
|
|
0 |
|
|
|
56,336 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
3,541 |
|
|
|
0 |
|
|
|
3,541 |
|
| Utah |
|
|
0 |
|
|
|
3,068 |
|
|
|
0 |
|
|
|
3,068 |
|
| Virginia |
|
|
0 |
|
|
|
10,956 |
|
|
|
0 |
|
|
|
10,956 |
|
| Washington |
|
|
0 |
|
|
|
8,956 |
|
|
|
0 |
|
|
|
8,956 |
|
| West Virginia |
|
|
0 |
|
|
|
4,861 |
|
|
|
0 |
|
|
|
4,861 |
|
| Wisconsin |
|
|
0 |
|
|
|
15,658 |
|
|
|
0 |
|
|
|
15,658 |
|
| Short-Term Instruments |
|
| Repurchase Agreements |
|
|
0 |
|
|
|
1,750 |
|
|
|
0 |
|
|
|
1,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
641,533 |
|
|
$ |
0 |
|
|
$ |
641,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no
significant transfers into or out of Level 3 during the period ended December 31, 2018.
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
45 |
Schedule of Investments PIMCO
California Municipal Income Fund
(Amounts in thousands*, except number
of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 194.5% |
|
|
|
| MUNICIPAL BONDS & NOTES 194.4% |
|
|
|
| CALIFORNIA 189.1% |
|
|
| Bay Area Toll Authority, California Revenue Bonds, Series
2017 |
|
| 5.000% due 04/01/2056 |
|
$ |
|
|
1,750 |
|
|
$ |
|
|
1,959 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2002 |
|
| 6.000% due 06/01/2035 |
|
|
|
|
4,000 |
|
|
|
|
|
4,001 |
|
| 6.125% due 06/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
983 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2006 |
|
| 0.000% due 06/01/2046 (a) |
|
|
|
|
12,000 |
|
|
|
|
|
1,788 |
|
| 5.600% due 06/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,501 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2007 |
|
| 0.000% due 06/01/2057 (a) |
|
|
|
|
7,000 |
|
|
|
|
|
590 |
|
|
| California Educational Facilities Authority Revenue Bonds,
Series 2009 |
|
| 5.000% due 01/01/2039 (b) |
|
|
|
|
10,200 |
|
|
|
|
|
10,200 |
|
|
| California Educational Facilities Authority Revenue Bonds,
Series 2017 |
|
| 5.000% due 04/01/2047 |
|
|
|
|
800 |
|
|
|
|
|
892 |
|
|
| California Educational Facilities Authority Revenue Bonds,
Series 2018 |
|
| 5.000% due 10/01/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
1,136 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2008 |
|
| 5.250% due 11/15/2040 |
|
|
|
|
5,050 |
|
|
|
|
|
5,560 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2009 |
|
| 5.750% due 09/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,055 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
4,000 |
|
|
|
|
|
4,088 |
|
| 6.500% due 11/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,042 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2010 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
1,450 |
|
|
|
|
|
1,491 |
|
| 6.461% due 11/15/2036 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,123 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2011 |
|
| 5.000% due 08/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,068 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
2,800 |
|
|
|
|
|
2,996 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2012 |
|
| 5.000% due 08/15/2051 |
|
|
|
|
7,300 |
|
|
|
|
|
7,868 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2013 |
|
| 5.000% due 08/15/2052 |
|
|
|
|
1,675 |
|
|
|
|
|
1,800 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2015 |
|
| 5.000% due 08/15/2054 |
|
|
|
|
1,300 |
|
|
|
|
|
1,434 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2016 |
|
| 4.000% due 08/15/2039 (b) |
|
|
|
|
8,500 |
|
|
|
|
|
8,719 |
|
| 5.000% due 11/15/2046 (b) |
|
|
|
|
5,000 |
|
|
|
|
|
5,530 |
|
| 5.000% due 08/15/2055 |
|
|
|
|
6,000 |
|
|
|
|
|
6,572 |
|
|
| California Infrastructure & Economic Development
Bank Revenue Bonds, Series 2013 |
|
| 5.000% due 02/01/2039 |
|
|
|
|
10,000 |
|
|
|
|
|
10,923 |
|
|
| California Municipal Finance Authority Revenue Bonds, Series
2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
850 |
|
|
|
|
|
943 |
|
|
| California Municipal Finance Authority Revenue Bonds, Series
2018 |
|
| 5.000% due 05/15/2043 |
|
|
|
|
500 |
|
|
|
|
|
549 |
|
|
| California Pollution Control Financing Authority Revenue
Bonds, Series 2010 |
|
| 5.100% due 06/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,094 |
|
| 5.250% due 08/01/2040 |
|
|
|
|
1,250 |
|
|
|
|
|
1,319 |
|
|
| California Pollution Control Financing Authority Revenue
Bonds, Series 2012 |
|
| 5.000% due 11/21/2045 |
|
|
|
|
1,975 |
|
|
|
|
|
1,998 |
|
|
| California Public Finance Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
5,140 |
|
|
|
|
|
5,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| California State General Obligation Bonds, Series
2009 |
|
| 6.000% due 04/01/2038 |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,021 |
|
| 6.000% due 11/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,065 |
|
|
| California State General Obligation Bonds, Series
2010 |
|
| 5.250% due 11/01/2040 |
|
|
|
|
2,400 |
|
|
|
|
|
2,529 |
|
| 5.500% due 03/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,557 |
|
|
| California State General Obligation Bonds, Series
2013 |
|
| 5.000% due 11/01/2043 |
|
|
|
|
7,000 |
|
|
|
|
|
7,701 |
|
|
| California State General Obligation Bonds, Series
2017 |
|
| 4.000% due 11/01/2047 |
|
|
|
|
2,750 |
|
|
|
|
|
2,835 |
|
|
| California State General Obligation Bonds, Series
2018 |
|
| 5.000% due 10/01/2047 |
|
|
|
|
1,275 |
|
|
|
|
|
1,430 |
|
|
| California State Public Works Board Revenue Bonds, Series
2009 |
|
| 5.000% due 04/01/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,017 |
|
| 5.750% due 10/01/2030 |
|
|
|
|
2,000 |
|
|
|
|
|
2,063 |
|
| 6.000% due 11/01/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,073 |
|
|
| California State Public Works Board Revenue Bonds, Series
2011 |
|
| 5.000% due 12/01/2029 |
|
|
|
|
1,500 |
|
|
|
|
|
1,630 |
|
|
| California State University Revenue Bonds, Series
2015 |
|
| 5.000% due 11/01/2047 |
|
|
|
|
8,000 |
|
|
|
|
|
8,934 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (CM Insured), Series 2018 |
|
| 4.000% due 07/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,017 |
|
| 4.000% due 07/01/2043 |
|
|
|
|
350 |
|
|
|
|
|
355 |
|
| 4.000% due 07/01/2047 |
|
|
|
|
1,750 |
|
|
|
|
|
1,767 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (FHA Insured), Series 2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
1,870 |
|
|
|
|
|
1,924 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
6,875 |
|
|
|
|
|
7,079 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2010 |
|
| 5.000% due 11/01/2040 |
|
|
|
|
10,000 |
|
|
|
|
|
10,409 |
|
| 6.250% due 10/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,030 |
|
| 7.500% due 06/01/2042 |
|
|
|
|
955 |
|
|
|
|
|
978 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,138 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2012 |
|
| 5.000% due 04/01/2042 |
|
|
|
|
11,500 |
|
|
|
|
|
12,279 |
|
| 5.125% due 05/15/2031 |
|
|
|
|
4,000 |
|
|
|
|
|
4,236 |
|
| 5.375% due 05/15/2038 |
|
|
|
|
4,500 |
|
|
|
|
|
4,790 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2016 |
|
| 4.000% due 08/15/2051 |
|
|
|
|
225 |
|
|
|
|
|
226 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,400 |
|
|
|
|
|
1,474 |
|
| 5.000% due 12/01/2046 |
|
|
|
|
5,700 |
|
|
|
|
|
5,907 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2018 |
|
| 4.000% due 07/01/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
993 |
|
| 4.000% due 12/01/2057 |
|
|
|
|
2,000 |
|
|
|
|
|
1,977 |
|
| 5.500% due 12/01/2058 |
|
|
|
|
1,775 |
|
|
|
|
|
1,904 |
|
|
| California Statewide Financing Authority Revenue Bonds,
Series 2002 |
|
| 5.625% due 05/01/2029 |
|
|
|
|
80 |
|
|
|
|
|
81 |
|
| 6.000% due 05/01/2037 |
|
|
|
|
3,000 |
|
|
|
|
|
3,019 |
|
|
| Chaffey Joint Union High School District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
5,676 |
|
|
| Chula Vista, California Revenue Bonds, Series
2004 |
|
| 5.875% due 02/15/2034 |
|
|
|
|
5,000 |
|
|
|
|
|
5,063 |
|
|
| El Monte, California Certificates of Participation Bonds,
(AMBAC Insured), Series 2001 |
|
| 5.250% due 01/01/2034 (d) |
|
|
|
|
14,425 |
|
|
|
|
|
14,906 |
|
|
| Escondido Union School District, California General
Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,038 |
|
|
| Folsom Cordova Unified School District School Facilities
Improvement District No. 5, California General Obligation Bonds, Series 2018 |
|
| 4.000% due 10/01/2043 (b) |
|
|
|
|
3,500 |
|
|
|
|
|
3,649 |
|
|
| Folsom Redevelopment Agency, California Tax Allocation Bonds,
Series 2009 |
|
| 5.500% due 08/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Foothill-Eastern Transportation Corridor Agency, California
Revenue Bonds, Series 2014 |
|
| 3.950% due 01/15/2053 |
|
$ |
|
|
860 |
|
|
$ |
|
|
836 |
|
|
| Golden State, California Tobacco Securitization Corp. Revenue
Bonds, Series 2007 |
|
| 5.300% due 06/01/2037 |
|
|
|
|
1,740 |
|
|
|
|
|
1,749 |
|
|
| Golden State, California Tobacco Securitization Corp. Revenue
Bonds, Series 2018 |
|
| 5.000% due 06/01/2030 |
|
|
|
|
2,000 |
|
|
|
|
|
2,210 |
|
| 5.000% due 06/01/2047 |
|
|
|
|
13,500 |
|
|
|
|
|
13,017 |
|
| 5.250% due 06/01/2047 |
|
|
|
|
3,500 |
|
|
|
|
|
3,492 |
|
|
| Grossmont-Cuyamaca Community College District, California
General Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
2,750 |
|
|
|
|
|
2,820 |
|
|
| Hacienda La Puente Unified School District, General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2047 |
|
|
|
|
2,000 |
|
|
|
|
|
2,070 |
|
|
| Hartnell Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 |
|
|
|
|
3,400 |
|
|
|
|
|
3,530 |
|
|
| Hayward Unified School District, California General
Obligation Bonds, Series 2015 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
6,000 |
|
|
|
|
|
6,667 |
|
|
| Imperial Irrigation District Electric System, California
Revenue Bonds, Series 2011 |
|
| 5.000% due 11/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,062 |
|
|
| Imperial Irrigation District Electric System, California
Revenue Bonds, Series 2016 |
|
| 5.000% due 11/01/2041 (b) |
|
|
|
|
6,000 |
|
|
|
|
|
6,782 |
|
|
| Imperial Irrigation District Electric System, California
Revenue Bonds, Series 2017 |
|
| 4.000% due 11/01/2041 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,132 |
|
|
| Kern County, California Certificates of Participation Bonds,
(AGC Insured), Series 2009 |
|
| 5.750% due 08/01/2035 |
|
|
|
|
10,590 |
|
|
|
|
|
10,625 |
|
|
| Lancaster Redevelopment Agency, California Tax Allocation
Bonds, Series 2009 |
|
| 6.875% due 08/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
516 |
|
|
| Long Beach Bond Finance Authority, California Revenue Bonds,
Series 2007 |
|
| 5.500% due 11/15/2027 |
|
|
|
|
1,000 |
|
|
|
|
|
1,204 |
|
| 5.500% due 11/15/2030 |
|
|
|
|
415 |
|
|
|
|
|
507 |
|
|
| Long Beach Unified School District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2043 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
5,685 |
|
|
| Long Beach, California Airport System Revenue Bonds, Series
2010 |
|
| 5.000% due 06/01/2040 |
|
|
|
|
5,000 |
|
|
|
|
|
5,209 |
|
|
| Los Angeles Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2041 (b) |
|
|
|
|
3,500 |
|
|
|
|
|
3,608 |
|
|
| Los Angeles County, California Sanitation Districts Financing
Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 10/01/2042 |
|
|
|
|
1,500 |
|
|
|
|
|
1,541 |
|
|
| Los Angeles Department of Water & Power, California
Revenue Bonds, Series 2009 |
|
| 5.375% due 07/01/2034 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,000 |
|
| 5.375% due 07/01/2038 (b) |
|
|
|
|
7,000 |
|
|
|
|
|
7,000 |
|
|
| Los Angeles Department of Water & Power, California
Revenue Bonds, Series 2012 |
|
| 5.000% due 07/01/2037 |
|
|
|
|
4,100 |
|
|
|
|
|
4,471 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,438 |
|
|
| Los Angeles Department of Water & Power, California
Revenue Bonds, Series 2014 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
2,000 |
|
|
|
|
|
2,205 |
|
|
| Los Angeles Unified School District, California General
Obligation Bonds, Series 2009 |
|
| 5.000% due 07/01/2029 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,155 |
|
| 5.000% due 01/01/2034 (b) |
|
|
|
|
8,500 |
|
|
|
|
|
8,628 |
|
| 5.300% due 01/01/2034 |
|
|
|
|
250 |
|
|
|
|
|
254 |
|
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
15,345 |
|
|
|
|
|
20,731 |
|
|
| Malibu, California Certificates of Participation Bonds,
Series 2009 |
|
| 5.000% due 07/01/2039 |
|
|
|
|
700 |
|
|
|
|
|
712 |
|
|
|
|
|
|
|
|
|
|
| 46 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
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 |
|
|
$ |
|
|
5,479 |
|
|
| Pacifica School District, California General Obligation
Bonds, Series 2018 |
|
| 4.000% due 08/01/2048 |
|
|
|
|
1,750 |
|
|
|
|
|
1,790 |
|
|
| Palomar Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2046 (b) |
|
|
|
|
4,530 |
|
|
|
|
|
4,686 |
|
|
| Peralta Community College District, California General
Obligation Bonds, Series 2009 |
|
| 5.000% due 08/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,275 |
|
|
| Regents of the University of California Medical Center Pooled
Revenue Bonds, Series 2013 |
|
| 5.000% due 05/15/2043 |
|
|
|
|
2,000 |
|
|
|
|
|
2,177 |
|
|
| River Islands Public Financing Authority, California Special
Tax Bonds, Series 2015 |
|
| 5.500% due 09/01/2045 |
|
|
|
|
3,000 |
|
|
|
|
|
3,177 |
|
|
| Riverside, California Sewer Revenue Bonds,
Series 2018 |
|
| 4.000% due 08/01/2038 |
|
|
|
|
4,250 |
|
|
|
|
|
4,475 |
|
|
| Sacramento Area Flood Control Agency, California Special
Assessment Bonds, Series 2016 |
|
| 5.000% due 10/01/2041 (b) |
|
|
|
|
2,800 |
|
|
|
|
|
3,172 |
|
| 5.000% due 10/01/2047 (b) |
|
|
|
|
1,700 |
|
|
|
|
|
1,916 |
|
|
| Sacramento, California Transient Occupancy Tax Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2048 |
|
|
|
|
3,510 |
|
|
|
|
|
3,977 |
|
|
| San Diego Regional Building Authority, California Revenue
Bonds, Series 2009 |
|
| 5.375% due 02/01/2036 |
|
|
|
|
3,285 |
|
|
|
|
|
3,295 |
|
|
| San Diego Unified School District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 07/01/2047 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,094 |
|
|
| San Francisco Bay Area Rapid Transit District, California
General Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
5,748 |
|
|
| San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2017 |
|
| 5.000% due 05/01/2047 |
|
|
|
|
2,625 |
|
|
|
|
|
2,956 |
|
|
| San Francisco, California City & County Certificates
of Participation Bonds, Series 2009 |
|
| 5.250% due 04/01/2031 |
|
|
|
|
650 |
|
|
|
|
|
655 |
|
|
| San Joaquin County Transportation Authority, California
Revenue Bonds, Series 2017 |
|
| 4.000% due 03/01/2041 (b) |
|
|
|
|
2,200 |
|
|
|
|
|
2,293 |
|
| 5.000% due 03/01/2041 (b) |
|
|
|
|
3,300 |
|
|
|
|
|
3,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| San Jose, California Hotel Tax Revenue Bonds,
Series 2011 |
|
| 6.500% due 05/01/2036 |
|
$ |
|
|
1,500 |
|
|
$ |
|
|
1,652 |
|
|
| San Marcos Unified School District, California General
Obligation Bonds, Series 2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,200 |
|
|
|
|
|
1,303 |
|
|
| San Mateo County, California Community College District
General Obligation Bonds, (NPFGC Insured), Series 2006 |
|
| 0.000% due 09/01/2034 (a) |
|
|
|
|
3,000 |
|
|
|
|
|
1,800 |
|
|
| San Mateo County, California Community College District
General Obligation Bonds, (NPFGC Insured), Series 2018 |
|
| 5.000% due 09/01/2045 |
|
|
|
|
4,000 |
|
|
|
|
|
4,666 |
|
|
| San Rafael City High School District General Obligation
Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
3,500 |
|
|
|
|
|
3,659 |
|
|
| Santa Clara County, California General Obligation Bonds,
Series 2013 |
|
| 4.000% due 08/01/2041 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,072 |
|
|
| Santa Cruz County, California Redevelopment Agency Tax
Allocation Bonds, Series 2009 |
|
| 7.000% due 09/01/2036 |
|
|
|
|
1,300 |
|
|
|
|
|
1,346 |
|
|
| Santa Monica Community College District, California General
Obligation Bonds, Series 2018 |
|
| 4.000% due 04/01/2045 (b) |
|
|
|
|
2,000 |
|
|
|
|
|
2,076 |
|
|
| Tobacco Securitization Authority of Southern California
Revenue Bonds, Series 2006 |
|
| 5.000% due 06/01/2037 |
|
|
|
|
800 |
|
|
|
|
|
800 |
|
|
| Torrance, California Revenue Bonds, Series
2010 |
|
| 5.000% due 09/01/2040 |
|
|
|
|
6,300 |
|
|
|
|
|
6,594 |
|
|
| University of California Revenue Bonds, Series
2016 |
|
| 4.000% due 05/15/2046 (b) |
|
|
|
|
10,500 |
|
|
|
|
|
10,674 |
|
|
| University of California Revenue Bonds, Series
2017 |
|
| 5.000% due 05/15/2047 |
|
|
|
|
5,000 |
|
|
|
|
|
5,660 |
|
|
| Upland, California Certificates of Participation Bonds,
Series 2017 |
|
| 4.000% due 01/01/2042 |
|
|
|
|
3,250 |
|
|
|
|
|
3,202 |
|
|
| Washington Township Health Care District, California General
Obligation Bonds, Series 2013 |
|
| 5.000% due 08/01/2043 |
|
|
|
|
2,500 |
|
|
|
|
|
2,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
473,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 3.8% |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2007 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2015 |
|
| 5.250% due 01/01/2028 |
|
$ |
|
|
3,400 |
|
|
$ |
|
|
3,608 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,787 |
|
|
| Illinois State General Obligation Bonds, Series
2017 |
|
| 5.000% due 11/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.0% |
|
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM
Insured), Series 2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
1,200 |
|
|
|
|
|
1,300 |
|
|
| Puerto Rico Highway & Transportation Authority
Revenue Bonds, (AGC Insured), Series 2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
1,200 |
|
|
|
|
|
1,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.5% |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2012 |
|
| 5.000% due 10/01/2032 (d) |
|
|
|
|
1,250 |
|
|
|
|
|
1,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost
$470,185) |
|
|
486,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 0.1% |
|
|
|
| REPURCHASE AGREEMENTS (f) 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $229) |
|
|
|
|
|
229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $470,414) |
|
|
|
|
|
486,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 194.5%
(Cost $470,414) |
|
|
$ |
|
|
486,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Auction Rate Preferred Shares (48.2)% |
|
|
|
|
|
(120,625 |
) |
|
|
| Variable Rate MuniFund Term Preferred Shares, at liquidation value (11.6)% |
|
|
|
|
|
(29,106 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Assets and Liabilities, net (34.7)% |
|
|
|
|
|
(86,900 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
250,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO SCHEDULE OF INVESTMENTS:
| * |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
| ^ |
Security is in default. |
| (a) |
Zero coupon security. |
| (b) |
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. |
| (c) |
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 December 31, 2018.
|
(d) 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 |
|
|
$ |
14,425 |
|
|
$ |
14,906 |
|
|
|
5.96 |
% |
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds,
Series 2012 |
|
5.000 |
|
|
10/01/2032 |
|
|
|
09/25/2017 |
|
|
|
886 |
|
|
|
1,264 |
|
|
|
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
15,311 |
|
|
$ |
16,170 |
|
|
|
6.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
47 |
Schedule of Investments PIMCO California Municipal Income
Fund (Cont.)
December 31, 2018
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 |
|
|
2.000 |
% |
|
|
12/31/2018 |
|
|
|
01/02/2019 |
|
|
$ |
229 |
|
|
U.S. Treasury Notes 2.875% due 09/30/2023 |
|
$ |
(235 |
) |
|
$ |
229 |
|
|
$ |
229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
|
|
|
$ |
(235 |
) |
|
$ |
229 |
|
|
$ |
229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
229 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
229 |
|
|
$ |
(235 |
) |
|
$ |
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
229 |
|
|
$ |
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 regarding master netting arrangements. |
FAIR
VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2018
in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
| California |
|
$ |
0 |
|
|
$ |
473,332 |
|
|
$ |
0 |
|
|
$ |
473,332 |
|
| Illinois |
|
|
0 |
|
|
|
9,546 |
|
|
|
0 |
|
|
|
9,546 |
|
| Puerto Rico |
|
|
0 |
|
|
|
2,566 |
|
|
|
0 |
|
|
|
2,566 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
1,264 |
|
|
|
0 |
|
|
|
1,264 |
|
| Short-Term Instruments |
|
| Repurchase Agreements |
|
|
0 |
|
|
|
229 |
|
|
|
0 |
|
|
|
229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
486,937 |
|
|
$ |
0 |
|
|
$ |
486,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant transfers into or out of Level 3 during the period ended
December 31, 2018.
|
|
|
|
|
|
|
|
|
| 48 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO
California Municipal Income Fund II
December 31, 2018
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 187.0% |
|
|
|
| MUNICIPAL BONDS & NOTES 185.7% |
|
|
|
| CALIFORNIA 179.0% |
|
|
| Alhambra, California Revenue Bonds, Series
2010 |
|
| 7.625% due 01/01/2040 |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,117 |
|
|
| Bay Area Toll Authority, California Revenue Bonds, Series
2014 |
|
| 5.000% due 10/01/2054 |
|
|
|
|
3,000 |
|
|
|
|
|
3,276 |
|
|
| Bay Area Toll Authority, California Revenue Bonds, Series
2017 |
|
| 4.000% due 04/01/2047 |
|
|
|
|
3,000 |
|
|
|
|
|
3,078 |
|
| 5.000% due 04/01/2056 |
|
|
|
|
2,000 |
|
|
|
|
|
2,239 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2002 |
|
| 5.875% due 06/01/2043 |
|
|
|
|
1,800 |
|
|
|
|
|
1,824 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2006 |
|
| 0.000% due 06/01/2046 (a) |
|
|
|
|
9,000 |
|
|
|
|
|
1,196 |
|
| 5.600% due 06/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,501 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2007 |
|
| 0.000% due 06/01/2057 (a) |
|
|
|
|
9,000 |
|
|
|
|
|
759 |
|
|
| California Educational Facilities Authority Revenue Bonds,
Series 2017 |
|
| 5.000% due 04/01/2047 |
|
|
|
|
835 |
|
|
|
|
|
931 |
|
|
| California Educational Facilities Authority Revenue Bonds,
Series 2018 |
|
| 5.000% due 10/01/2043 |
|
|
|
|
1,300 |
|
|
|
|
|
1,483 |
|
| 5.000% due 10/01/2048 |
|
|
|
|
1,320 |
|
|
|
|
|
1,500 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2008 |
|
| 5.250% due 11/15/2040 |
|
|
|
|
5,400 |
|
|
|
|
|
5,945 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2009 |
|
| 5.750% due 09/01/2039 |
|
|
|
|
250 |
|
|
|
|
|
257 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
3,000 |
|
|
|
|
|
3,066 |
|
| 6.500% due 11/01/2038 |
|
|
|
|
500 |
|
|
|
|
|
521 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2011 |
|
| 5.000% due 08/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,068 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2012 |
|
| 5.000% due 11/15/2034 |
|
|
|
|
1,000 |
|
|
|
|
|
1,074 |
|
| 5.000% due 11/15/2040 |
|
|
|
|
4,000 |
|
|
|
|
|
4,336 |
|
| 5.000% due 08/15/2051 |
|
|
|
|
5,555 |
|
|
|
|
|
5,992 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2015 |
|
| 5.000% due 08/15/2054 |
|
|
|
|
5,000 |
|
|
|
|
|
5,517 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2016 |
|
| 4.000% due 10/01/2047 |
|
|
|
|
1,500 |
|
|
|
|
|
1,517 |
|
| 5.000% due 11/15/2046 |
|
|
|
|
1,000 |
|
|
|
|
|
1,106 |
|
| 5.000% due 08/15/2055 |
|
|
|
|
6,275 |
|
|
|
|
|
6,873 |
|
|
| California Infrastructure & Economic Development
Bank Revenue Bonds, Series 2013 |
|
| 5.000% due 02/01/2039 |
|
|
|
|
10,000 |
|
|
|
|
|
10,923 |
|
|
| California Municipal Finance Authority Revenue Bonds, Series
2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
925 |
|
|
|
|
|
1,026 |
|
|
| California Municipal Finance Authority Revenue Bonds, Series
2017 |
|
| 5.000% due 01/01/2042 |
|
|
|
|
1,750 |
|
|
|
|
|
1,927 |
|
|
| California Municipal Finance Authority Revenue Bonds, Series
2018 |
|
| 5.000% due 05/15/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,097 |
|
|
| California Pollution Control Financing Authority Revenue
Bonds, Series 2010 |
|
| 5.250% due 08/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,583 |
|
|
| California Pollution Control Financing Authority Revenue
Bonds, Series 2012 |
|
| 5.000% due 07/01/2037 |
|
|
|
|
990 |
|
|
|
|
|
997 |
|
| 5.000% due 11/21/2045 |
|
|
|
|
985 |
|
|
|
|
|
996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| California Public Finance Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 08/01/2047 (b) |
|
$ |
|
|
5,400 |
|
|
$ |
|
|
5,461 |
|
|
| California State General Obligation Bonds, Series
2009 |
|
| 5.000% due 10/01/2048 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
11,523 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
10,000 |
|
|
|
|
|
10,102 |
|
|
| California State General Obligation Bonds, Series
2013 |
|
| 5.000% due 11/01/2043 |
|
|
|
|
7,000 |
|
|
|
|
|
7,701 |
|
|
| California State General Obligation Bonds, Series
2017 |
|
| 4.000% due 11/01/2047 |
|
|
|
|
3,250 |
|
|
|
|
|
3,350 |
|
|
| California State General Obligation Bonds, Series
2018 |
|
| 4.000% due 10/01/2039 |
|
|
|
|
4,500 |
|
|
|
|
|
4,672 |
|
| 5.000% due 10/01/2047 |
|
|
|
|
2,000 |
|
|
|
|
|
2,243 |
|
|
| California State Public Works Board Revenue Bonds, Series
2009 |
|
| 5.750% due 10/01/2030 |
|
|
|
|
3,000 |
|
|
|
|
|
3,094 |
|
| 6.000% due 11/01/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,073 |
|
|
| California State Public Works Board Revenue Bonds, Series
2011 |
|
| 5.000% due 12/01/2029 |
|
|
|
|
2,000 |
|
|
|
|
|
2,174 |
|
|
| California State Public Works Board Revenue Bonds, Series
2013 |
|
| 5.000% due 03/01/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,718 |
|
|
| California State University Revenue Bonds, Series
2015 |
|
| 5.000% due 11/01/2047 |
|
|
|
|
5,000 |
|
|
|
|
|
5,584 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (CM Insured), Series 2018 |
|
| 4.000% due 07/01/2043 |
|
|
|
|
1,350 |
|
|
|
|
|
1,368 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (FHA Insured), Series 2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
2,135 |
|
|
|
|
|
2,197 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
7,860 |
|
|
|
|
|
8,093 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2010 |
|
| 7.000% due 07/01/2040 |
|
|
|
|
3,760 |
|
|
|
|
|
3,991 |
|
| 7.500% due 06/01/2042 |
|
|
|
|
950 |
|
|
|
|
|
973 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
5,600 |
|
|
|
|
|
5,987 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2012 |
|
| 5.000% due 04/01/2042 |
|
|
|
|
9,705 |
|
|
|
|
|
10,362 |
|
| 5.375% due 05/15/2038 |
|
|
|
|
4,500 |
|
|
|
|
|
4,790 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2016 |
|
| 4.000% due 08/15/2051 |
|
|
|
|
225 |
|
|
|
|
|
226 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,580 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
2,000 |
|
|
|
|
|
2,117 |
|
| 5.000% due 12/01/2046 |
|
|
|
|
2,000 |
|
|
|
|
|
2,073 |
|
| 5.250% due 12/01/2056 |
|
|
|
|
2,000 |
|
|
|
|
|
2,095 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2018 |
|
| 4.000% due 07/01/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
993 |
|
| 4.000% due 12/01/2053 |
|
|
|
|
230 |
|
|
|
|
|
230 |
|
| 4.000% due 12/01/2057 |
|
|
|
|
2,000 |
|
|
|
|
|
1,977 |
|
| 5.500% due 12/01/2058 |
|
|
|
|
7,200 |
|
|
|
|
|
7,724 |
|
|
| California Statewide Financing Authority Revenue Bonds,
Series 2002 |
|
| 6.000% due 05/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,013 |
|
|
| Chula Vista, California Revenue Bonds, Series
2004 |
|
| 5.875% due 02/15/2034 |
|
|
|
|
1,000 |
|
|
|
|
|
1,013 |
|
|
| Escondido Union School District, California General
Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2043 |
|
|
|
|
1,240 |
|
|
|
|
|
1,287 |
|
|
| Folsom Cordova Unified School District School Facilities
Improvement District No. 5, California General Obligation Bonds, Series 2018 |
|
| 4.000% due 10/01/2043 (b) |
|
|
|
|
3,600 |
|
|
|
|
|
3,753 |
|
|
| Foothill-Eastern Transportation Corridor Agency, California
Revenue Bonds, Series 2014 |
|
| 3.950% due 01/15/2053 |
|
|
|
|
920 |
|
|
|
|
|
895 |
|
|
| Fremont Community Facilities District No. 1, California
Special Tax Bonds, Series 2015 |
|
| 5.000% due 09/01/2045 |
|
|
|
|
1,400 |
|
|
|
|
|
1,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Golden State, California Tobacco Securitization Corp. Revenue
Bonds, Series 2018 |
|
| 5.000% due 06/01/2030 |
|
$ |
|
|
1,500 |
|
|
$ |
|
|
1,657 |
|
| 5.000% due 06/01/2034 |
|
|
|
|
4,500 |
|
|
|
|
|
4,890 |
|
| 5.000% due 06/01/2047 |
|
|
|
|
9,500 |
|
|
|
|
|
9,160 |
|
| 5.250% due 06/01/2047 |
|
|
|
|
3,500 |
|
|
|
|
|
3,492 |
|
|
| Grossmont-Cuyamaca Community College District, California
General Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
5,000 |
|
|
|
|
|
5,128 |
|
|
| Hacienda La Puente Unified School District, General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2047 |
|
|
|
|
3,000 |
|
|
|
|
|
3,106 |
|
|
| Hartnell Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 |
|
|
|
|
3,500 |
|
|
|
|
|
3,634 |
|
|
| Hayward Unified School District, California General
Obligation Bonds, Series 2015 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
3,000 |
|
|
|
|
|
3,334 |
|
|
| Imperial Irrigation District Electric System, California
Revenue Bonds, Series 2011 |
|
| 5.000% due 11/01/2041 |
|
|
|
|
4,500 |
|
|
|
|
|
4,774 |
|
|
| Imperial Irrigation District Electric System, California
Revenue Bonds, Series 2017 |
|
| 4.000% due 11/01/2041 (b) |
|
|
|
|
7,375 |
|
|
|
|
|
7,619 |
|
|
| Irvine Unified School District, California Special Tax Bonds,
Series 2010 |
|
| 6.700% due 09/01/2035 |
|
|
|
|
515 |
|
|
|
|
|
542 |
|
|
| Lancaster Redevelopment Agency, California Tax Allocation
Bonds, Series 2009 |
|
| 6.875% due 08/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,030 |
|
|
| Long Beach Bond Finance Authority, California Revenue Bonds,
Series 2007 |
|
| 5.500% due 11/15/2030 |
|
|
|
|
460 |
|
|
|
|
|
562 |
|
| 5.500% due 11/15/2037 |
|
|
|
|
7,500 |
|
|
|
|
|
9,171 |
|
|
| Long Beach Unified School District, California General
Obligation Bonds, Series 2009 |
|
| 5.250% due 08/01/2019 (b) |
|
|
|
|
9,395 |
|
|
|
|
|
9,596 |
|
| 5.250% due 08/01/2033 (b) |
|
|
|
|
605 |
|
|
|
|
|
617 |
|
|
| Long Beach, California Airport System Revenue Bonds, Series
2010 |
|
| 5.000% due 06/01/2040 |
|
|
|
|
500 |
|
|
|
|
|
521 |
|
|
| Los Angeles Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2041 (b) |
|
|
|
|
3,600 |
|
|
|
|
|
3,711 |
|
|
| Los Angeles County, California Facilities Inc., Revenue
Bonds, Series 2018 |
|
| 4.000% due 12/01/2048 |
|
|
|
|
2,500 |
|
|
|
|
|
2,531 |
|
|
| Los Angeles County, California Sanitation Districts Financing
Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 10/01/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,055 |
|
|
| Los Angeles Department of Water & Power, California
Revenue Bonds, Series 2014 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
3,000 |
|
|
|
|
|
3,307 |
|
|
| Los Angeles Unified School District, California General
Obligation Bonds, Series 2009 |
|
| 5.000% due 01/01/2034 |
|
|
|
|
11,000 |
|
|
|
|
|
11,166 |
|
|
| Los Angeles, California Wastewater System Revenue Bonds,
Series 2017 |
|
| 5.000% due 06/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,161 |
|
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
16,445 |
|
|
|
|
|
22,217 |
|
| 7.000% due 11/01/2034 |
|
|
|
|
1,000 |
|
|
|
|
|
1,394 |
|
|
| Manteca Redevelopment Agency, California Tax Allocation
Bonds, (AMBAC Insured), Series 2004 |
|
| 5.000% due 10/01/2036 |
|
|
|
|
10,000 |
|
|
|
|
|
10,006 |
|
|
| Mount San Jacinto Community College District, California
General Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2043 |
|
|
|
|
4,400 |
|
|
|
|
|
4,549 |
|
|
| Oakland Unified School District/Alameda County, California
General Obligation Bonds, Series 2009 |
|
| 6.125% due 08/01/2029 |
|
|
|
|
5,000 |
|
|
|
|
|
5,134 |
|
|
| Pacifica School District, California General Obligation
Bonds, Series 2018 |
|
| 4.000% due 08/01/2048 |
|
|
|
|
2,000 |
|
|
|
|
|
2,046 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
49 |
Schedule of Investments PIMCO California Municipal Income
Fund II (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Palomar Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2046 (b) |
|
$ |
|
|
4,000 |
|
|
$ |
|
|
4,138 |
|
|
| Palomar Health, California Certificates of Participation
Bonds, Series 2009 |
|
| 6.750% due 11/01/2039 |
|
|
|
|
4,750 |
|
|
|
|
|
4,947 |
|
|
| Poway Unified School District, California General Obligation
Bonds, Series 2011 |
|
| 0.000% due 08/01/2040 (a) |
|
|
|
|
11,000 |
|
|
|
|
|
4,700 |
|
| 0.000% due 08/01/2046 (a) |
|
|
|
|
16,000 |
|
|
|
|
|
5,172 |
|
|
| River Islands Public Financing Authority, California Special
Tax Bonds, Series 2015 |
|
| 5.500% due 09/01/2045 |
|
|
|
|
3,000 |
|
|
|
|
|
3,177 |
|
|
| Riverside, California Sewer Revenue Bonds,
Series 2018 |
|
| 4.000% due 08/01/2038 |
|
|
|
|
3,500 |
|
|
|
|
|
3,685 |
|
|
| Sacramento Area Flood Control Agency, California Special
Assessment Bonds, Series 2016 |
|
| 5.000% due 10/01/2041 (b) |
|
|
|
|
2,800 |
|
|
|
|
|
3,172 |
|
| 5.000% due 10/01/2047 (b) |
|
|
|
|
1,700 |
|
|
|
|
|
1,916 |
|
|
| Sacramento, California Transient Occupancy Tax Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2048 |
|
|
|
|
4,000 |
|
|
|
|
|
4,532 |
|
|
| San Diego Community College District, California General
Obligation Bonds, Series 2009 |
|
| 6.894% due 08/01/2033 (c) |
|
|
|
|
5,000 |
|
|
|
|
|
5,215 |
|
|
| San Diego Public Facilities Financing Authority Sewer,
California Revenue Bonds, Series 2009 |
|
| 5.250% due 05/15/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,014 |
|
|
| San Diego Regional Building Authority, California Revenue
Bonds, Series 2009 |
|
| 5.375% due 02/01/2036 |
|
|
|
|
2,800 |
|
|
|
|
|
2,809 |
|
|
| San Diego Unified School District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 07/01/2047 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,125 |
|
|
| San Francisco Bay Area Rapid Transit District, California
General Obligation Bonds, Series 2017 |
|
| 5.000% due 08/01/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,154 |
|
|
| San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2017 |
|
| 5.000% due 05/01/2047 |
|
|
|
|
2,750 |
|
|
|
|
|
3,096 |
|
|
| San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2018 |
|
| 5.000% due 05/01/2048 |
|
|
|
|
2,700 |
|
|
|
|
|
3,068 |
|
|
| San Francisco, California City & County Certificates
of Participation Bonds, Series 2009 |
|
| 5.250% due 04/01/2031 |
|
|
|
|
300 |
|
|
|
|
|
302 |
|
|
| San Francisco, California City & County Public
Utilities Commission Wastewater Revenue Bonds, Series 2018 |
|
| 4.000% due 10/01/2043 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| San Jose, California Hotel Tax Revenue Bonds,
Series 2011 |
|
| 6.500% due 05/01/2036 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,101 |
|
|
| San Marcos Redevelopment Agency Successor Agency, California
Tax Allocation Bonds, Series 2015 |
|
| 5.000% due 10/01/2032 |
|
|
|
|
850 |
|
|
|
|
|
986 |
|
| 5.000% due 10/01/2033 |
|
|
|
|
1,125 |
|
|
|
|
|
1,300 |
|
|
| San Marcos Unified School District, California General
Obligation Bonds, Series 2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,300 |
|
|
|
|
|
1,412 |
|
|
| San Mateo County, California Community College District
General Obligation Bonds, (NPFGC Insured), Series 2006 |
|
| 0.000% due 09/01/2034 (a) |
|
|
|
|
12,000 |
|
|
|
|
|
7,198 |
|
|
| San Mateo County, California Community College District
General Obligation Bonds, (NPFGC Insured), Series 2018 |
|
| 5.000% due 09/01/2045 (b) |
|
|
|
|
11,900 |
|
|
|
|
|
13,883 |
|
|
| San Rafael City High School District General Obligation
Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
11,000 |
|
|
|
|
|
11,499 |
|
|
| Santa Clara County, California General Obligation Bonds,
Series 2013 |
|
| 4.000% due 08/01/2041 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,072 |
|
|
| Santa Cruz County, California Redevelopment Agency Tax
Allocation Bonds, Series 2009 |
|
| 7.000% due 09/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,553 |
|
|
| Santa Monica Community College District, California General
Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,114 |
|
|
| Tender Option Bond Trust Receipts/Certificates, California
Revenue Bonds, Series 2010 |
|
| 6.450% due 05/15/2040 (c) |
|
|
|
|
7,500 |
|
|
|
|
|
8,074 |
|
|
| Torrance, California Revenue Bonds, Series
2010 |
|
| 5.000% due 09/01/2040 |
|
|
|
|
3,100 |
|
|
|
|
|
3,245 |
|
|
| Turlock Irrigation District, California Revenue Bonds, Series
2011 |
|
| 5.500% due 01/01/2041 |
|
|
|
|
1,700 |
|
|
|
|
|
1,805 |
|
|
| Tustin Unified School District, California Special Tax Bonds,
Series 2010 |
|
| 6.000% due 09/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,071 |
|
|
| Upland, California Certificates of Participation Bonds,
Series 2017 |
|
| 4.000% due 01/01/2042 |
|
|
|
|
3,000 |
|
|
|
|
|
2,956 |
|
|
| Washington Township Health Care District, California General
Obligation Bonds, Series 2013 |
|
| 5.000% due 08/01/2043 |
|
|
|
|
3,000 |
|
|
|
|
|
3,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
474,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 4.6% |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2007 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
2,350 |
|
|
|
|
|
2,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2015 |
|
| 5.250% due 01/01/2028 |
|
$ |
|
|
6,035 |
|
|
$ |
|
|
6,404 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,229 |
|
|
| Illinois State General Obligation Bonds, Series
2017 |
|
| 5.000% due 11/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 0.6% |
|
|
| New York Liberty Development Corp., Revenue Bonds, Series
2005 |
|
| 5.250% due 10/01/2035 |
|
|
|
|
1,250 |
|
|
|
|
|
1,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.0% |
|
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM
Insured), Series 2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
2,500 |
|
|
|
|
|
2,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.5% |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
1,400 |
|
|
|
|
|
1,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $467,113) |
|
|
492,758 |
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 1.3% |
|
|
|
| REPURCHASE AGREEMENTS (d) 1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
3,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $3,336) |
|
|
3,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $470,449) |
|
|
496,094 |
|
|
|
|
|
|
|
|
Total Investments 187.0%
(Cost $470,449) |
|
|
$ |
|
|
496,094 |
|
|
|
| Auction Rate Preferred Shares (48.5)% |
|
|
|
|
|
(128,675 |
) |
|
|
| Variable Rate MuniFund Term Preferred Shares, at liquidation value (12.8)% |
|
|
|
|
|
(34,087 |
) |
|
|
| Other Assets and Liabilities, net (25.7)% |
|
|
(68,087 |
) |
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
265,245 |
|
|
|
|
|
|
|
|
|
NOTES TO SCHEDULE OF INVESTMENTS:
| * |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
| ^ |
Security is in default. |
| (a) |
Zero coupon security. |
| (b) |
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. |
| (c) |
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 December 31, 2018.
|
|
|
|
|
|
|
|
|
|
| 50 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(d) REPURCHASE AGREEMENTS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty |
|
Lending
Rate |
|
|
Settlement
Date |
|
|
Maturity
Date |
|
|
Principal
Amount |
|
|
Collateralized By |
|
Collateral
(Received) |
|
|
Repurchase
Agreements,
at Value |
|
|
Repurchase
Agreement
Proceeds
to
be
Received(1) |
|
| FICC |
|
|
2.000 |
% |
|
|
12/31/2018 |
|
|
|
01/02/2019 |
|
|
$ |
3,336 |
|
|
U.S. Treasury Notes 2.875% due 09/30/2023 |
|
$ |
(3,405 |
) |
|
$ |
3,336 |
|
|
$ |
3,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
|
|
|
$ |
(3,405 |
) |
|
$ |
3,336 |
|
|
$ |
3,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
3,336 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
3,336 |
|
|
$ |
(3,405 |
) |
|
$ |
(69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
3,336 |
|
|
$ |
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 regarding master netting arrangements. |
FAIR
VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in
valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
| California |
|
$ |
0 |
|
|
$ |
474,965 |
|
|
$ |
0 |
|
|
$ |
474,965 |
|
| Illinois |
|
|
0 |
|
|
|
12,150 |
|
|
|
0 |
|
|
|
12,150 |
|
| New York |
|
|
0 |
|
|
|
1,518 |
|
|
|
0 |
|
|
|
1,518 |
|
| Puerto Rico |
|
|
0 |
|
|
|
2,708 |
|
|
|
0 |
|
|
|
2,708 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
1,417 |
|
|
|
0 |
|
|
|
1,417 |
|
| Short-Term Instruments |
|
| Repurchase Agreements |
|
|
0 |
|
|
|
3,336 |
|
|
|
0 |
|
|
|
3,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
496,094 |
|
|
$ |
0 |
|
|
$ |
496,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant transfers into or out of Level 3 during the period ended
December 31, 2018.
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
51 |
Schedule of Investments PIMCO
California Municipal Income Fund III
(Amounts in thousands*, except
number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 192.0% |
|
|
|
| MUNICIPAL BONDS & NOTES 191.9% |
|
|
|
| CALIFORNIA 185.3% |
|
|
| Bay Area Toll Authority, California Revenue Bonds, Series
2013 |
|
| 5.250% due 04/01/2048 |
|
$ |
|
|
8,000 |
|
|
$ |
|
|
9,172 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2002 |
|
| 5.875% due 06/01/2035 |
|
|
|
|
8,100 |
|
|
|
|
|
8,178 |
|
| 6.000% due 06/01/2042 |
|
|
|
|
7,000 |
|
|
|
|
|
7,064 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2006 |
|
| 0.000% due 06/01/2046 (a) |
|
|
|
|
11,000 |
|
|
|
|
|
1,655 |
|
| 5.600% due 06/01/2036 |
|
|
|
|
2,000 |
|
|
|
|
|
2,001 |
|
|
| California County Tobacco Securitization Agency Revenue
Bonds, Series 2007 |
|
| 0.000% due 06/01/2057 (a) |
|
|
|
|
4,000 |
|
|
|
|
|
337 |
|
|
| California Educational Facilities Authority Revenue Bonds,
Series 2009 |
|
| 5.000% due 01/01/2039 (b) |
|
|
|
|
9,800 |
|
|
|
|
|
9,800 |
|
|
| California Educational Facilities Authority Revenue Bonds,
Series 2017 |
|
| 5.000% due 04/01/2047 |
|
|
|
|
700 |
|
|
|
|
|
780 |
|
|
| California Educational Facilities Authority Revenue Bonds,
Series 2018 |
|
| 5.000% due 10/01/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,141 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2008 |
|
| 5.250% due 11/15/2040 |
|
|
|
|
4,550 |
|
|
|
|
|
5,009 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2009 |
|
| 5.750% due 09/01/2039 |
|
|
|
|
4,000 |
|
|
|
|
|
4,109 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
4,000 |
|
|
|
|
|
4,088 |
|
| 6.500% due 11/01/2038 |
|
|
|
|
500 |
|
|
|
|
|
521 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2010 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
1,300 |
|
|
|
|
|
1,337 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2011 |
|
| 5.000% due 08/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,068 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
1,200 |
|
|
|
|
|
1,284 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2012 |
|
| 5.000% due 08/15/2051 |
|
|
|
|
5,205 |
|
|
|
|
|
5,615 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2015 |
|
| 5.000% due 08/15/2054 |
|
|
|
|
3,000 |
|
|
|
|
|
3,310 |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2016 |
|
| 4.000% due 08/15/2039 (b) |
|
|
|
|
6,500 |
|
|
|
|
|
6,667 |
|
| 4.000% due 10/01/2047 |
|
|
|
|
750 |
|
|
|
|
|
758 |
|
| 5.000% due 11/15/2046 (b) |
|
|
|
|
6,000 |
|
|
|
|
|
6,636 |
|
| 5.000% due 08/15/2055 |
|
|
|
|
5,000 |
|
|
|
|
|
5,476 |
|
|
| California Infrastructure & Economic Development
Bank Revenue Bonds, Series 2013 |
|
| 5.000% due 02/01/2039 |
|
|
|
|
10,000 |
|
|
|
|
|
10,923 |
|
|
| California Municipal Finance Authority Revenue Bonds, Series
2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
710 |
|
|
|
|
|
788 |
|
|
| California Pollution Control Financing Authority Revenue
Bonds, Series 2010 |
|
| 5.250% due 08/01/2040 |
|
|
|
|
1,250 |
|
|
|
|
|
1,319 |
|
|
| California Pollution Control Financing Authority Revenue
Bonds, Series 2012 |
|
| 5.000% due 07/01/2037 |
|
|
|
|
990 |
|
|
|
|
|
996 |
|
| 5.000% due 11/21/2045 |
|
|
|
|
985 |
|
|
|
|
|
996 |
|
|
| California Public Finance Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
4,200 |
|
|
|
|
|
4,248 |
|
|
| California School Finance Authority Revenue Bonds, Series
2017 |
|
| 5.000% due 07/01/2047 |
|
|
|
|
1,115 |
|
|
|
|
|
1,199 |
|
|
| California State General Obligation Bonds, Series
2009 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
7,300 |
|
|
|
|
|
7,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| California State General Obligation Bonds, Series
2013 |
|
| 5.000% due 11/01/2043 |
|
$ |
|
|
5,000 |
|
|
$ |
|
|
5,500 |
|
|
| California State General Obligation Bonds, Series
2017 |
|
| 4.000% due 11/01/2047 |
|
|
|
|
1,500 |
|
|
|
|
|
1,546 |
|
|
| California State General Obligation Bonds, Series
2018 |
|
| 5.000% due 10/01/2047 |
|
|
|
|
2,000 |
|
|
|
|
|
2,243 |
|
|
| California State Public Works Board Revenue Bonds, Series
2009 |
|
| 6.000% due 11/01/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,073 |
|
|
| California State Public Works Board Revenue Bonds, Series
2013 |
|
| 5.000% due 03/01/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,718 |
|
|
| California State University Revenue Bonds, Series
2011 |
|
| 5.000% due 11/01/2042 |
|
|
|
|
6,200 |
|
|
|
|
|
6,671 |
|
|
| California State University Revenue Bonds, Series
2015 |
|
| 5.000% due 11/01/2047 |
|
|
|
|
6,750 |
|
|
|
|
|
7,538 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (CM Insured), Series 2018 |
|
| 4.000% due 07/01/2047 |
|
|
|
|
250 |
|
|
|
|
|
252 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, (FHA Insured), Series 2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
1,780 |
|
|
|
|
|
1,832 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
6,430 |
|
|
|
|
|
6,621 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2010 |
|
| 6.250% due 10/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
515 |
|
| 7.500% due 06/01/2042 |
|
|
|
|
950 |
|
|
|
|
|
973 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2041 |
|
|
|
|
11,000 |
|
|
|
|
|
11,948 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
1,800 |
|
|
|
|
|
1,924 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2012 |
|
| 5.000% due 04/01/2042 |
|
|
|
|
11,220 |
|
|
|
|
|
11,980 |
|
| 5.375% due 05/15/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,129 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2014 |
|
| 5.500% due 12/01/2054 |
|
|
|
|
2,500 |
|
|
|
|
|
2,670 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2016 |
|
| 4.000% due 08/15/2051 |
|
|
|
|
200 |
|
|
|
|
|
201 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,100 |
|
|
|
|
|
1,158 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
1,000 |
|
|
|
|
|
1,058 |
|
| 5.000% due 12/01/2046 |
|
|
|
|
3,100 |
|
|
|
|
|
3,212 |
|
|
| California Statewide Communities Development Authority
Revenue Bonds, Series 2018 |
|
| 4.000% due 03/01/2042 |
|
|
|
|
2,500 |
|
|
|
|
|
2,517 |
|
| 4.000% due 07/01/2048 |
|
|
|
|
850 |
|
|
|
|
|
844 |
|
| 4.000% due 12/01/2057 |
|
|
|
|
2,000 |
|
|
|
|
|
1,977 |
|
|
| California Statewide Communities Development Authority
Revenue Notes, Series 2011 |
|
| 6.500% due 11/01/2021 |
|
|
|
|
195 |
|
|
|
|
|
211 |
|
|
| Chaffey Joint Union High School District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
4,500 |
|
|
|
|
|
4,644 |
|
|
| Chula Vista, California Revenue Bonds, Series
2004 |
|
| 5.875% due 02/15/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,025 |
|
|
| Escondido Union School District, California General
Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,038 |
|
|
| Folsom Cordova Unified School District School Facilities
Improvement District No. 5, California General Obligation Bonds, Series 2018 |
|
| 4.000% due 10/01/2043 (b) |
|
|
|
|
2,900 |
|
|
|
|
|
3,024 |
|
|
| Foothill-Eastern Transportation Corridor Agency, California
Revenue Bonds, Series 2014 |
|
| 3.950% due 01/15/2053 |
|
|
|
|
720 |
|
|
|
|
|
700 |
|
|
| Fremont Community Facilities District No. 1, California
Special Tax Bonds, Series 2015 |
|
| 5.000% due 09/01/2045 |
|
|
|
|
1,400 |
|
|
|
|
|
1,495 |
|
|
| Golden State, California Tobacco Securitization Corp. Revenue
Bonds, Series 2018 |
|
| 5.000% due 06/01/2030 |
|
|
|
|
1,500 |
|
|
|
|
|
1,657 |
|
| 5.000% due 06/01/2047 |
|
|
|
|
7,115 |
|
|
|
|
|
6,861 |
|
| 5.250% due 06/01/2047 |
|
|
|
|
2,885 |
|
|
|
|
|
2,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Grossmont-Cuyamaca Community College District, California
General Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (b) |
|
$ |
|
|
2,250 |
|
|
$ |
|
|
2,308 |
|
|
| Hartnell Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 |
|
|
|
|
1,150 |
|
|
|
|
|
1,194 |
|
|
| Hayward Unified School District, California General
Obligation Bonds, Series 2015 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
5,000 |
|
|
|
|
|
5,556 |
|
|
| Imperial Irrigation District Electric System, California
Revenue Bonds, Series 2016 |
|
| 5.000% due 11/01/2041 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,522 |
|
|
| Imperial Irrigation District Electric System, California
Revenue Bonds, Series 2017 |
|
| 4.000% due 11/01/2041 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,099 |
|
|
| Lancaster Redevelopment Agency, California Tax Allocation
Bonds, Series 2009 |
|
| 6.875% due 08/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
516 |
|
|
| Long Beach Bond Finance Authority, California Revenue Bonds,
Series 2007 |
|
| 5.500% due 11/15/2030 |
|
|
|
|
360 |
|
|
|
|
|
440 |
|
|
| Long Beach Unified School District, California General
Obligation Bonds, Series 2009 |
|
| 5.750% due 08/01/2033 |
|
|
|
|
5,000 |
|
|
|
|
|
5,121 |
|
|
| Long Beach Unified School District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2043 (b) |
|
|
|
|
4,500 |
|
|
|
|
|
4,652 |
|
|
| Long Beach, California Airport System Revenue Bonds, Series
2010 |
|
| 5.000% due 06/01/2040 |
|
|
|
|
2,120 |
|
|
|
|
|
2,209 |
|
|
| Los Angeles Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2041 (b) |
|
|
|
|
2,900 |
|
|
|
|
|
2,989 |
|
|
| Los Angeles County, California Facilities Inc., Revenue
Bonds, Series 2018 |
|
| 4.000% due 12/01/2048 |
|
|
|
|
2,000 |
|
|
|
|
|
2,024 |
|
|
| Los Angeles County, California Sanitation Districts Financing
Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 10/01/2042 |
|
|
|
|
1,185 |
|
|
|
|
|
1,218 |
|
|
| Los Angeles Department of Water & Power, California
Revenue Bonds, Series 2009 |
|
| 5.000% due 07/01/2039 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,000 |
|
|
| Los Angeles Department of Water & Power, California
Revenue Bonds, Series 2012 |
|
| 5.000% due 07/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,181 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
2,115 |
|
|
|
|
|
2,300 |
|
|
| Los Angeles Department of Water & Power, California
Revenue Bonds, Series 2014 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,102 |
|
|
| Los Angeles Unified School District, California General
Obligation Bonds, Series 2009 |
|
| 5.000% due 01/01/2034 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,151 |
|
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
9,825 |
|
|
|
|
|
13,274 |
|
| 7.000% due 11/01/2034 |
|
|
|
|
2,285 |
|
|
|
|
|
3,185 |
|
|
| Malibu, California Certificates of Participation Bonds,
Series 2009 |
|
| 5.000% due 07/01/2039 |
|
|
|
|
550 |
|
|
|
|
|
560 |
|
|
| Manteca Financing Authority, California Revenue Bonds, Series
2009 |
|
| 5.750% due 12/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,036 |
|
|
| Mount San Jacinto Community College District, California
General Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2043 |
|
|
|
|
7,300 |
|
|
|
|
|
7,547 |
|
|
| Oakland Redevelopment Agency Successor Agency, California Tax
Allocation Bonds, (AGM Insured), Series 2015 |
|
| 5.000% due 09/01/2036 |
|
|
|
|
800 |
|
|
|
|
|
901 |
|
|
| Pacifica School District, California General Obligation
Bonds, Series 2018 |
|
| 4.000% due 08/01/2048 |
|
|
|
|
1,250 |
|
|
|
|
|
1,279 |
|
|
| Palomar Community College District, California General
Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2046 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,103 |
|
|
|
|
|
|
|
|
|
|
| 52 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Peralta Community College District, California General
Obligation Bonds, Series 2009 |
|
| 5.000% due 08/01/2039 |
|
$ |
|
|
1,250 |
|
|
$ |
|
|
1,275 |
|
|
| Regents of the University of California Medical Center Pooled
Revenue Bonds, Series 2013 |
|
| 5.000% due 05/15/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,443 |
|
|
| River Islands Public Financing Authority, California Special
Tax Bonds, Series 2015 |
|
| 5.500% due 09/01/2045 |
|
|
|
|
3,000 |
|
|
|
|
|
3,177 |
|
|
| Riverside, California Sewer Revenue Bonds,
Series 2018 |
|
| 4.000% due 08/01/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,106 |
|
|
| Sacramento Area Flood Control Agency, California Special
Assessment Bonds, Series 2016 |
|
| 5.000% due 10/01/2041 (b) |
|
|
|
|
2,200 |
|
|
|
|
|
2,492 |
|
| 5.000% due 10/01/2047 (b) |
|
|
|
|
1,500 |
|
|
|
|
|
1,690 |
|
|
| Sacramento Municipal Utility District, California Revenue
Bonds, Series 2013 |
|
| 5.000% due 08/15/2037 |
|
|
|
|
3,000 |
|
|
|
|
|
3,364 |
|
|
| Sacramento, California Transient Occupancy Tax Revenue Bonds,
Series 2018 |
|
| 5.000% due 06/01/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
1,133 |
|
|
| San Diego County, California Regional Airport Authority
Revenue Bonds, Series 2013 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
1,325 |
|
|
|
|
|
1,443 |
|
|
| San Diego Public Facilities Financing Authority Sewer,
California Revenue Bonds, Series 2009 |
|
| 5.250% due 05/15/2039 |
|
|
|
|
4,000 |
|
|
|
|
|
4,056 |
|
|
| San Diego Regional Building Authority, California Revenue
Bonds, Series 2009 |
|
| 5.375% due 02/01/2036 |
|
|
|
|
2,200 |
|
|
|
|
|
2,207 |
|
|
| San Diego Unified School District, California General
Obligation Bonds, Series 2017 |
|
| 5.000% due 07/01/2047 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,094 |
|
|
| San Francisco Bay Area Rapid Transit District, California
General Obligation Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 (b) |
|
|
|
|
4,500 |
|
|
|
|
|
4,703 |
|
|
| San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2017 |
|
| 5.000% due 05/01/2047 |
|
|
|
|
2,125 |
|
|
|
|
|
2,393 |
|
|
| San Francisco, California City & County Airport Comm-San Francisco International Airport Revenue Bonds, Series 2018 |
|
| 5.000% due 05/01/2048 |
|
|
|
|
3,250 |
|
|
|
|
|
3,693 |
|
|
| San Francisco, California City & County Certificates
of Participation Bonds, Series 2009 |
|
| 5.250% due 04/01/2031 |
|
|
|
|
550 |
|
|
|
|
|
554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| San Francisco, California City & County
Redevelopment Agency Special Tax Bonds, Series 2013 |
|
| 5.000% due 08/01/2028 |
|
$ |
|
|
1,505 |
|
|
$ |
|
|
1,636 |
|
|
| San Joaquin County Transportation Authority, California
Revenue Bonds, Series 2017 |
|
| 4.000% due 03/01/2041 (b) |
|
|
|
|
1,800 |
|
|
|
|
|
1,876 |
|
| 5.000% due 03/01/2041 (b) |
|
|
|
|
2,700 |
|
|
|
|
|
3,099 |
|
|
| San Jose, California Hotel Tax Revenue Bonds,
Series 2011 |
|
| 6.500% due 05/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,652 |
|
|
| San Marcos Redevelopment Agency Successor Agency, California
Tax Allocation Bonds, Series 2015 |
|
| 5.000% due 10/01/2034 |
|
|
|
|
885 |
|
|
|
|
|
1,019 |
|
|
| San Marcos Unified School District, California General
Obligation Bonds, Series 2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,086 |
|
|
| San Mateo County, California Community College District
General Obligation Bonds, (NPFGC Insured), Series 2006 |
|
| 0.000% due 09/01/2034 (a) |
|
|
|
|
2,530 |
|
|
|
|
|
1,518 |
|
|
| San Mateo County, California Community College District
General Obligation Bonds, (NPFGC Insured), Series 2018 |
|
| 5.000% due 09/01/2045 |
|
|
|
|
2,000 |
|
|
|
|
|
2,333 |
|
|
| San Rafael City High School District General Obligation
Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
2,560 |
|
|
|
|
|
2,676 |
|
|
| Santa Clara County, California General Obligation Bonds,
Series 2013 |
|
| 4.000% due 08/01/2041 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,054 |
|
|
| Santa Cruz County, California Redevelopment Agency Tax
Allocation Bonds, Series 2009 |
|
| 7.000% due 09/01/2036 |
|
|
|
|
1,200 |
|
|
|
|
|
1,242 |
|
|
| Santa Monica Community College District, California General
Obligation Bonds, Series 2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
2,000 |
|
|
|
|
|
2,076 |
|
|
| University of California Revenue Bonds, Series
2016 |
|
| 4.000% due 05/15/2046 (b) |
|
|
|
|
6,760 |
|
|
|
|
|
6,872 |
|
|
| Upland, California Certificates of Participation Bonds,
Series 2017 |
|
| 4.000% due 01/01/2042 |
|
|
|
|
2,250 |
|
|
|
|
|
2,217 |
|
|
| Washington Township Health Care District, California General
Obligation Bonds, Series 2013 |
|
| 5.000% due 08/01/2043 |
|
|
|
|
2,500 |
|
|
|
|
|
2,807 |
|
|
| Western Municipal Water District Facilities Authority,
California Revenue Bonds, Series 2009 |
|
| 5.000% due 10/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
390,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| ILLINOIS 5.1% |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2007 |
|
| 5.500% due 01/01/2035 |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,169 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2015 |
|
| 5.250% due 01/01/2028 |
|
|
|
|
3,700 |
|
|
|
|
|
3,926 |
|
| 5.500% due 01/01/2033 |
|
|
|
|
2,500 |
|
|
|
|
|
2,653 |
|
|
| Illinois State General Obligation Bonds, Series
2017 |
|
| 5.000% due 11/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.0% |
|
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM
Insured), Series 2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
1,000 |
|
|
|
|
|
1,083 |
|
|
| Puerto Rico Highway & Transportation Authority
Revenue Bonds, (AGC Insured), Series 2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.5% |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $390,509) |
|
|
404,947 |
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 0.1% |
|
|
|
| REPURCHASE AGREEMENTS (c) 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $190) |
|
|
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments in Securities (Cost $390,699) |
|
|
405,137 |
|
|
|
|
|
|
|
|
Total Investments 192.0%
(Cost $390,699) |
|
|
$ |
|
|
405,137 |
|
|
|
| Auction Rate Preferred Shares (46.4)% |
|
|
|
|
|
(97,875 |
) |
|
|
| Variable Rate MuniFund Term Preferred Shares, at liquidation value (12.7)% |
|
|
|
|
|
(26,915 |
) |
|
|
| Other Assets and Liabilities, net (32.9)% |
|
|
(69,373 |
) |
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
210,974 |
|
|
|
|
|
|
|
|
|
NOTES TO SCHEDULE OF INVESTMENTS:
| * |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
| ^ |
Security is in default. |
| (a) |
Zero coupon security. |
| (b) |
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
(c) REPURCHASE AGREEMENTS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty |
|
Lending
Rate |
|
|
Settlement
Date |
|
|
Maturity
Date |
|
|
Principal
Amount |
|
|
Collateralized By |
|
Collateral
(Received) |
|
|
Repurchase
Agreements,
at Value |
|
|
Repurchase
Agreement
Proceeds
to
be
Received(1) |
|
| FICC |
|
|
2.000 |
% |
|
|
12/31/2018 |
|
|
|
01/02/2019 |
|
|
$ |
190 |
|
|
U.S. Treasury Notes 2.875% due 09/30/2023 |
|
$ |
(194 |
) |
|
$ |
190 |
|
|
$ |
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
|
|
|
$ |
(194 |
) |
|
$ |
190 |
|
|
$ |
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
53 |
Schedule of Investments PIMCO California Municipal Income
Fund III (Cont.)
December 31, 2018
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 December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
190 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
190 |
|
|
$ |
(194 |
) |
|
$ |
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
190 |
|
|
$ |
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 regarding master netting arrangements. |
FAIR
VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2018
in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
| California |
|
$ |
0 |
|
|
$ |
390,985 |
|
|
$ |
0 |
|
|
$ |
390,985 |
|
| Illinois |
|
|
0 |
|
|
|
10,811 |
|
|
|
0 |
|
|
|
10,811 |
|
| Puerto Rico |
|
|
0 |
|
|
|
2,139 |
|
|
|
0 |
|
|
|
2,139 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
1,012 |
|
|
|
0 |
|
|
|
1,012 |
|
| Short-Term Instruments |
|
| Repurchase Agreements |
|
|
0 |
|
|
|
190 |
|
|
|
0 |
|
|
|
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
405,137 |
|
|
$ |
0 |
|
|
$ |
405,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant transfers into or out of Level 3 during the period ended
December 31, 2018.
|
|
|
|
|
|
|
|
|
| 54 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO
New York Municipal Income Fund
December 31, 2018
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 172.6% |
|
|
|
| MUNICIPAL BONDS & NOTES 171.8% |
|
|
|
| CALIFORNIA 1.9% |
|
|
| California Health Facilities Financing Authority Revenue
Bonds, Series 2016 |
|
| 5.000% due 11/15/2046 (c) |
|
$ |
|
|
1,500 |
|
|
$ |
|
|
1,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 3.5% |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2007 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
885 |
|
|
|
|
|
924 |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,115 |
|
|
| Illinois State General Obligation Notes, Series
2017 |
|
| 5.000% due 11/01/2026 |
|
|
|
|
1,000 |
|
|
|
|
|
1,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 161.6% |
|
|
| Build NYC Resource Corp., New York Revenue Bonds, Series
2017 |
|
| 5.000% due 11/01/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,250 |
|
|
| Dutchess County, New York Local Development Corp. Revenue
Bonds, Series 2016 |
|
| 4.000% due 07/01/2041 |
|
|
|
|
900 |
|
|
|
|
|
910 |
|
|
| Housing Development Corp., New York Revenue Bonds, Series
2017 |
|
| 3.700% due 11/01/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
961 |
|
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds,
Series 2011 |
|
| 5.250% due 02/15/2047 |
|
|
|
|
3,000 |
|
|
|
|
|
3,186 |
|
| 5.750% due 02/15/2047 |
|
|
|
|
4,000 |
|
|
|
|
|
4,315 |
|
|
| Long Island Power Authority, New York Revenue Bonds, Series
2009 |
|
| 5.750% due 04/01/2039 |
|
|
|
|
4,500 |
|
|
|
|
|
4,545 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2012 |
|
| 5.000% due 11/15/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,178 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2013 |
|
| 5.000% due 11/15/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,061 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2016 |
|
| 5.000% due 11/15/2031 (c) |
|
|
|
|
6,500 |
|
|
|
|
|
7,395 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2017 |
|
| 4.000% due 11/15/2038 |
|
|
|
|
1,425 |
|
|
|
|
|
1,451 |
|
| 4.000% due 11/15/2042 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,009 |
|
|
| Monroe County, New York Industrial Development Agency Revenue
Bonds, Series 2017 |
|
| 4.000% due 07/01/2036 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,050 |
|
|
| Nassau County, New York General Obligation Bonds, (AGM
Insured), Series 2018 |
|
| 5.000% due 04/01/2036 |
|
|
|
|
2,000 |
|
|
|
|
|
2,279 |
|
|
| Nassau County, New York Industrial Development Agency Revenue
Bonds, Series 2014 |
|
| 2.000% due 01/01/2049 ^(a) |
|
|
|
|
433 |
|
|
|
|
|
74 |
|
| 6.700% due 01/01/2049 |
|
|
|
|
1,200 |
|
|
|
|
|
1,243 |
|
|
| Nassau County, New York Tobacco Settlement Corp. Revenue
Bonds, Series 2006 |
|
| 5.125% due 06/01/2046 |
|
|
|
|
1,230 |
|
|
|
|
|
1,178 |
|
|
| New York City Industrial Development Agency, New York
Revenue Bonds, (AGC Insured), Series 2009 |
|
| 6.500% due 01/01/2046 |
|
|
|
|
900 |
|
|
|
|
|
903 |
|
| 7.000% due 03/01/2049 |
|
|
|
|
3,200 |
|
|
|
|
|
3,231 |
|
|
| New York City Transitional Finance Authority Future Tax
Secured, New York Revenue Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,053 |
|
|
| New York City Water & Sewer System, New York Revenue
Bonds, Series 2009 |
|
| 5.000% due 06/15/2040 |
|
|
|
|
2,500 |
|
|
|
|
|
2,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| New York City, New York General Obligation Bonds, Series
2013 |
|
| 5.000% due 08/01/2031 |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,221 |
|
|
| New York City, New York General Obligation Bonds, Series
2018 |
|
| 4.000% due 03/01/2042 (c) |
|
|
|
|
4,200 |
|
|
|
|
|
4,330 |
|
| 5.000% due 04/01/2045 (c) |
|
|
|
|
2,700 |
|
|
|
|
|
3,072 |
|
|
| New York City, New York Health & Hospital Corp.
Revenue Bonds, Series 2010 |
|
| 5.000% due 02/15/2030 |
|
|
|
|
3,500 |
|
|
|
|
|
3,603 |
|
|
| New York City, New York Transitional Finance Authority
Building Aid Revenue Bonds, Series 2009 |
|
| 5.250% due 01/15/2039 |
|
|
|
|
5,000 |
|
|
|
|
|
5,006 |
|
|
| New York City, New York Transitional Finance Authority Future
Tax Secured Revenue Bonds, Series 2017 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,143 |
|
|
| New York City, New York Water & Sewer System Revenue
Bonds, Series 2017 |
|
| 5.000% due 06/15/2048 (c) |
|
|
|
|
8,000 |
|
|
|
|
|
9,021 |
|
|
| New York Counties Tobacco Trust IV Revenue Bonds, Series
2005 |
|
| 0.000% due 06/01/2050 (b) |
|
|
|
|
20,000 |
|
|
|
|
|
2,455 |
|
| 5.000% due 06/01/2045 |
|
|
|
|
5,000 |
|
|
|
|
|
4,700 |
|
|
| New York Counties Tobacco Trust V Revenue Bonds, Series
2005 |
|
| 0.000% due 06/01/2055 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
186 |
|
|
| New York Liberty Development Corp., Revenue Bonds, Series
2005 |
|
| 5.250% due 10/01/2035 (c) |
|
|
|
|
3,760 |
|
|
|
|
|
4,567 |
|
|
| New York Liberty Development Corp., Revenue Bonds, Series
2010 |
|
| 5.125% due 01/15/2044 |
|
|
|
|
6,150 |
|
|
|
|
|
6,323 |
|
| 6.375% due 07/15/2049 |
|
|
|
|
1,500 |
|
|
|
|
|
1,555 |
|
|
| New York Liberty Development Corp., Revenue Bonds, Series
2011 |
|
| 5.000% due 12/15/2041 |
|
|
|
|
2,000 |
|
|
|
|
|
2,144 |
|
| 5.750% due 11/15/2051 |
|
|
|
|
6,000 |
|
|
|
|
|
6,576 |
|
|
| New York Liberty Development Corp., Revenue Bonds, Series
2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
1,900 |
|
|
|
|
|
1,952 |
|
|
| New York State Dormitory Authority Revenue Bonds, (AGC
Insured), Series 2009 |
|
| 5.125% due 07/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,017 |
|
|
| New York State Dormitory Authority Revenue Bonds, Series
2009 |
|
| 5.000% due 03/15/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,007 |
|
| 5.125% due 07/01/2039 |
|
|
|
|
1,300 |
|
|
|
|
|
1,322 |
|
| 5.500% due 03/01/2039 |
|
|
|
|
1,800 |
|
|
|
|
|
1,811 |
|
|
| New York State Dormitory Authority Revenue Bonds, Series
2010 |
|
| 5.000% due 07/01/2035 |
|
|
|
|
500 |
|
|
|
|
|
521 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
1,250 |
|
|
|
|
|
1,319 |
|
|
| New York State Dormitory Authority Revenue Bonds, Series
2011 |
|
| 5.000% due 07/01/2031 |
|
|
|
|
2,000 |
|
|
|
|
|
2,137 |
|
| 5.500% due 07/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,092 |
|
| 6.000% due 07/01/2040 |
|
|
|
|
1,225 |
|
|
|
|
|
1,302 |
|
|
| New York State Dormitory Authority Revenue Bonds, Series
2013 |
|
| 5.000% due 02/15/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,106 |
|
|
| New York State Dormitory Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 02/15/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,026 |
|
| 5.000% due 12/01/2031 |
|
|
|
|
500 |
|
|
|
|
|
558 |
|
|
| New York State Dormitory Authority Revenue Bonds, Series
2018 |
|
| 4.000% due 08/01/2038 |
|
|
|
|
1,900 |
|
|
|
|
|
1,892 |
|
| 4.000% due 03/15/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,032 |
|
|
| New York State Thruway Authority Revenue Bonds, Series
2012 |
|
| 5.000% due 01/01/2037 |
|
|
|
|
1,000 |
|
|
|
|
|
1,070 |
|
| 5.000% due 01/01/2042 |
|
|
|
|
3,645 |
|
|
|
|
|
3,895 |
|
|
| New York State Urban Development Corp. Revenue Bonds, Series
2009 |
|
| 5.000% due 03/15/2036 (c) |
|
|
|
|
1,800 |
|
|
|
|
|
1,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| Onondaga County, New York Revenue Bonds,
Series 2011 |
|
| 5.000% due 12/01/2036 |
|
$ |
|
|
600 |
|
|
$ |
|
|
645 |
|
|
| Port Authority of New York & New Jersey Revenue
Bonds, Series 2010 |
|
| 6.000% due 12/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,067 |
|
|
| Port Authority of New York & New Jersey Revenue
Bonds, Series 2016 |
|
| 5.250% due 11/15/2056 (c) |
|
|
|
|
1,500 |
|
|
|
|
|
1,701 |
|
|
| Troy Industrial Development Authority, New York Revenue
Bonds, Series 2002 |
|
| 4.625% due 09/01/2026 |
|
|
|
|
5,860 |
|
|
|
|
|
6,196 |
|
|
| TSASC, Inc., New York Revenue Bonds, Series
2016 |
|
| 5.000% due 06/01/2048 |
|
|
|
|
1,750 |
|
|
|
|
|
1,687 |
|
|
| TSASC, Inc., New York Revenue Bonds, Series
2017 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
2,000 |
|
|
|
|
|
2,067 |
|
|
| Ulster County, New York Capital Resource Corp. Revenue Bonds,
Series 2017 |
|
| 5.250% due 09/15/2047 |
|
|
|
|
500 |
|
|
|
|
|
472 |
|
|
| Utility Debt Securitization Authority Revenue Bonds, Series
2015 |
|
| 5.000% due 12/15/2037 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,133 |
|
|
| Westchester County Healthcare Corp., New York Revenue Bonds,
Series 2010 |
|
| 6.125% due 11/01/2037 |
|
|
|
|
910 |
|
|
|
|
|
979 |
|
|
| Yonkers Economic Development Corp., New York Revenue Bonds,
Series 2010 |
|
| 6.000% due 10/15/2030 |
|
|
|
|
170 |
|
|
|
|
|
175 |
|
|
| Yonkers Industrial Development Agency, New York Revenue
Bonds, Series 2001 |
|
| 6.000% due 06/01/2041 |
|
|
|
|
400 |
|
|
|
|
|
407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 3.3% |
|
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue
Bonds, Series 2007 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
2,875 |
|
|
|
|
|
2,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.0% |
|
|
| Puerto Rico Highway & Transportation Authority
Revenue Bonds, (AGC Insured), Series 2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
800 |
|
|
|
|
|
844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.5% |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
400 |
|
|
|
|
|
405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $146,606) |
|
|
151,001 |
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 0.8% |
|
|
|
| REPURCHASE AGREEMENTS (d) 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $742) |
|
|
742 |
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $147,348) |
|
|
151,743 |
|
|
|
|
|
|
|
|
Total Investments 172.6%
(Cost $147,348) |
|
|
|
|
|
|
|
$ |
|
|
151,743 |
|
|
|
| Auction Rate Preferred Shares (46.7)% |
|
|
|
|
|
(41,025 |
) |
|
|
| Other Assets and Liabilities, net (25.9)% |
|
|
(22,805 |
) |
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
|
|
|
$ |
|
|
87,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
55 |
Schedule of Investments PIMCO New York Municipal Income
Fund (Cont.)
December 31, 2018
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) |
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
(d) REPURCHASE AGREEMENTS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty |
|
Lending
Rate |
|
|
Settlement
Date |
|
|
Maturity
Date |
|
|
Principal
Amount |
|
|
Collateralized By |
|
Collateral
(Received) |
|
|
Repurchase
Agreements,
at Value |
|
|
Repurchase
Agreement
Proceeds
to
be
Received(1) |
|
| FICC |
|
|
2.000 |
% |
|
|
12/31/2018 |
|
|
|
01/02/2019 |
|
|
$ |
742 |
|
|
U.S. Treasury Notes 2.875% due 09/30/2023 |
|
$ |
(761 |
) |
|
$ |
742 |
|
|
$ |
742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
|
|
|
$ |
(761 |
) |
|
$ |
742 |
|
|
$ |
742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
742 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
742 |
|
|
$ |
(761 |
) |
|
$ |
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
742 |
|
|
$ |
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 regarding master netting arrangements. |
FAIR
VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2018
in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
| California |
|
$ |
0 |
|
|
$ |
1,659 |
|
|
$ |
0 |
|
|
$ |
1,659 |
|
| Illinois |
|
|
0 |
|
|
|
3,112 |
|
|
|
0 |
|
|
|
3,112 |
|
| New York |
|
|
0 |
|
|
|
142,106 |
|
|
|
0 |
|
|
|
142,106 |
|
| Ohio |
|
|
0 |
|
|
|
2,875 |
|
|
|
0 |
|
|
|
2,875 |
|
| Puerto Rico |
|
|
0 |
|
|
|
844 |
|
|
|
0 |
|
|
|
844 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
405 |
|
|
|
0 |
|
|
|
405 |
|
| Short-Term Instruments |
|
| Repurchase Agreements |
|
|
0 |
|
|
|
742 |
|
|
|
0 |
|
|
|
742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
151,743 |
|
|
$ |
0 |
|
|
$ |
151,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant transfers into or out of Level 3 during the period ended
December 31, 2018.
|
|
|
|
|
|
|
|
|
| 56 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO
New York Municipal Income Fund II
December 31, 2018
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 187.2% |
|
|
|
| MUNICIPAL BONDS & NOTES 182.6% |
|
|
|
| FLORIDA 0.9% |
|
|
| Clearwater, Florida Water & Sewer Revenue Bonds,
Series 2009 |
|
| 5.250% due 12/01/2039 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 2.8% |
|
|
| Chicago, Illinois General Obligation Bonds, Series
2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,229 |
|
|
| Illinois State General Obligation Notes, Series
2017 |
|
| 5.000% due 11/01/2026 |
|
|
|
|
1,000 |
|
|
|
|
|
1,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOUISIANA 0.8% |
|
|
| East Baton Rouge Sewerage Commission, Louisiana Revenue
Bonds, Series 2009 |
|
| 5.250% due 02/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 175.0% |
|
|
| Build NYC Resource Corp., New York Revenue Bonds, Series
2017 |
|
| 5.000% due 11/01/2047 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,500 |
|
|
| Dutchess County, New York Local Development Corp. Revenue
Bonds, Series 2015 |
|
| 5.000% due 07/01/2045 |
|
|
|
|
3,000 |
|
|
|
|
|
3,340 |
|
|
| Dutchess County, New York Local Development Corp. Revenue
Bonds, Series 2016 |
|
| 4.000% due 07/01/2041 |
|
|
|
|
3,200 |
|
|
|
|
|
3,235 |
|
|
| Housing Development Corp., New York Revenue Bonds, Series
2017 |
|
| 4.000% due 11/01/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
960 |
|
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds,
Series 2011 |
|
| 5.750% due 02/15/2047 |
|
|
|
|
9,000 |
|
|
|
|
|
9,709 |
|
|
| Long Island Power Authority, New York Revenue Bonds, Series
2014 |
|
| 5.000% due 09/01/2044 |
|
|
|
|
3,500 |
|
|
|
|
|
3,816 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2009 |
|
| 5.000% due 11/15/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,057 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2013 |
|
| 5.000% due 11/15/2043 |
|
|
|
|
3,000 |
|
|
|
|
|
3,182 |
|
|
| Metropolitan Transportation Authority, New York Revenue
Bonds, Series 2016 |
|
| 5.250% due 11/15/2056 |
|
|
|
|
1,200 |
|
|
|
|
|
1,329 |
|
|
| Monroe County Industrial Development Corp., New York Revenue
Bonds, (FHA Insured), Series 2010 |
|
| 5.500% due 08/15/2040 |
|
|
|
|
3,500 |
|
|
|
|
|
3,745 |
|
|
| Monroe County Industrial Development Corp., New York Revenue
Bonds, Series 2013 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
1,750 |
|
|
|
|
|
1,987 |
|
|
| Monroe County Industrial Development Corp., New York Revenue
Bonds, Series 2017 |
|
| 4.000% due 07/01/2036 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,050 |
|
| 4.000% due 12/01/2041 |
|
|
|
|
1,400 |
|
|
|
|
|
1,405 |
|
|
| Nassau County, New York Industrial Development Agency Revenue
Bonds, Series 2014 |
|
| 2.000% due 01/01/2049 ^(a) |
|
|
|
|
650 |
|
|
|
|
|
110 |
|
| 6.700% due 01/01/2049 |
|
|
|
|
1,800 |
|
|
|
|
|
1,865 |
|
|
| Nassau County, New York Tobacco Settlement Corp. Revenue
Bonds, Series 2006 |
|
| 5.125% due 06/01/2046 |
|
|
|
|
4,000 |
|
|
|
|
|
3,832 |
|
|
| New York City Industrial Development Agency, New York Revenue
Bonds, (AGC Insured), Series 2009 |
|
| 6.500% due 01/01/2046 |
|
|
|
|
1,500 |
|
|
|
|
|
1,505 |
|
| 7.000% due 03/01/2049 |
|
|
|
|
4,900 |
|
|
|
|
|
4,948 |
|
|
| New York City Industrial Development Agency, New York Revenue
Bonds, (FGIC Insured), Series 2006 |
|
| 5.000% due 03/01/2031 |
|
|
|
|
750 |
|
|
|
|
|
755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
|
| New York City Industrial Development Agency, New York Revenue
Bonds, (NPFGC Insured), Series 2006 |
|
| 5.000% due 03/01/2036 |
|
$ |
|
|
1,900 |
|
|
$ |
|
|
1,904 |
|
|
| New York City Transitional Finance Authority Future Tax
Secured, New York Revenue Bonds, Series 2017 |
|
| 4.000% due 08/01/2042 (c) |
|
|
|
|
3,000 |
|
|
|
|
|
3,079 |
|
|
| New York City Water & Sewer System, New York Revenue
Bonds, Series 2009 |
|
| 5.000% due 06/15/2039 |
|
|
|
|
500 |
|
|
|
|
|
506 |
|
| 5.250% due 06/15/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,015 |
|
|
| New York City Water & Sewer System, New York Revenue
Bonds, Series 2018 |
|
| 5.000% due 06/15/2040 |
|
|
|
|
2,300 |
|
|
|
|
|
2,626 |
|
|
| New York City, New York General Obligation Bonds, Series
2013 |
|
| 5.000% due 08/01/2031 |
|
|
|
|
2,000 |
|
|
|
|
|
2,220 |
|
|
| New York City, New York General Obligation Bonds, Series
2018 |
|
| 4.000% due 03/01/2042 (c) |
|
|
|
|
5,000 |
|
|
|
|
|
5,155 |
|
|
| New York City, New York Health & Hospital Corp.
Revenue Bonds, Series 2010 |
|
| 5.000% due 02/15/2030 |
|
|
|
|
1,500 |
|
|
|
|
|
1,544 |
|
|
| New York City, New York Transitional Finance Authority
Building Aid Revenue Bonds, Series 2009 |
|
| 5.250% due 01/15/2039 |
|
|
|
|
5,000 |
|
|
|
|
|
5,006 |
|
|
| New York City, New York Transitional Finance Authority
Building Aid Revenue Bonds, Series 2016 |
|
| 4.000% due 07/15/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,020 |
|
|
| New York City, New York Transitional Finance Authority Future
Tax Secured Revenue Bonds, Series 2017 |
|
| 4.000% due 02/01/2044 |
|
|
|
|
2,000 |
|
|
|
|
|
2,047 |
|
|
| New York City, New York Transitional Finance Authority Future
Tax Secured Revenue Bonds, Series 2018 |
|
| 4.000% due 08/01/2041 |
|
|
|
|
685 |
|
|
|
|
|
705 |
|
|
| New York City, New York Water & Sewer System Revenue
Bonds, Series 2017 |
|
| 5.000% due 06/15/2048 (c) |
|
|
|
|
5,000 |
|
|
|
|
|
5,638 |
|
|
| New York Convention Center Development Corp. Revenue Bonds,
Series 2015 |
|
| 4.000% due 11/15/2045 |
|
|
|
|
230 |
|
|
|
|
|
236 |
|
| 5.000% due 11/15/2045 |
|
|
|
|
1,000 |
|
|
|
|
|
1,112 |
|
|
| New York Counties Tobacco Trust IV Revenue Bonds,
Series 2005 |
|
| 0.000% due 06/01/2050 (b) |
|
|
|
|
30,000 |
|
|
|
|
|
3,683 |
|
| 5.000% due 06/01/2045 |
|
|
|
|
5,000 |
|
|
|
|
|
4,700 |
|
|
| New York Counties Tobacco Trust IV Revenue Bonds,
Series 2016 |
|
| 5.000% due 06/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,060 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,051 |
|
|
| New York Counties Tobacco Trust V Revenue Bonds,
Series 2005 |
|
| 0.000% due 06/01/2055 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
248 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2005 |
|
| 5.250% due 10/01/2035 (c) |
|
|
|
|
6,350 |
|
|
|
|
|
7,713 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2010 |
|
| 5.125% due 01/15/2044 |
|
|
|
|
1,500 |
|
|
|
|
|
1,542 |
|
| 5.625% due 07/15/2047 |
|
|
|
|
1,400 |
|
|
|
|
|
1,448 |
|
| 6.375% due 07/15/2049 |
|
|
|
|
1,300 |
|
|
|
|
|
1,348 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2011 |
|
| 5.000% due 12/15/2041 |
|
|
|
|
3,000 |
|
|
|
|
|
3,216 |
|
| 5.750% due 11/15/2051 |
|
|
|
|
5,000 |
|
|
|
|
|
5,480 |
|
|
| New York Liberty Development Corp., Revenue Bonds,
Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
4,000 |
|
|
|
|
|
4,110 |
|
|
| New York State Dormitory Authority Revenue Bonds, (AMBAC
Insured), Series 2005 |
|
| 5.500% due 05/15/2031 |
|
|
|
|
7,490 |
|
|
|
|
|
9,501 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2009 |
|
| 5.000% due 03/15/2038 |
|
|
|
|
3,000 |
|
|
|
|
|
3,020 |
|
| 5.500% due 05/01/2037 |
|
|
|
|
600 |
|
|
|
|
|
608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| 5.500% due 03/01/2039 |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,019 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,055 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2011 |
|
| 5.000% due 07/01/2031 |
|
|
|
|
2,000 |
|
|
|
|
|
2,137 |
|
| 5.500% due 07/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,638 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2017 |
|
| 4.000% due 02/15/2047 (c) |
|
|
|
|
1,500 |
|
|
|
|
|
1,538 |
|
| 5.000% due 12/01/2030 |
|
|
|
|
1,000 |
|
|
|
|
|
1,122 |
|
| 5.000% due 12/01/2033 |
|
|
|
|
800 |
|
|
|
|
|
884 |
|
|
| New York State Dormitory Authority Revenue Bonds,
Series 2018 |
|
| 4.000% due 08/01/2037 |
|
|
|
|
2,750 |
|
|
|
|
|
2,759 |
|
| 4.000% due 03/15/2043 |
|
|
|
|
2,000 |
|
|
|
|
|
2,063 |
|
| 5.000% due 03/15/2044 |
|
|
|
|
2,625 |
|
|
|
|
|
2,997 |
|
|
| New York State Environmental Facilities Corp., Revenue Bonds,
Series 2009 |
|
| 5.125% due 06/15/2038 |
|
|
|
|
5,000 |
|
|
|
|
|
5,070 |
|
|
| New York State Thruway Authority Revenue Bonds,
Series 2018 |
|
| 4.000% due 01/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,055 |
|
|
| New York State Urban Development Corp. Revenue Bonds,
Series 2009 |
|
| 5.000% due 03/15/2036 (c) |
|
|
|
|
6,000 |
|
|
|
|
|
6,041 |
|
|
| Niagara Tobacco Asset Securitization Corp., New York Revenue
Bonds, Series 2014 |
|
| 5.250% due 05/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
527 |
|
| 5.250% due 05/15/2040 |
|
|
|
|
500 |
|
|
|
|
|
523 |
|
|
| Onondaga County, New York Revenue Bonds,
Series 2011 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,076 |
|
|
| Port Authority of New York & New Jersey Revenue
Bonds, Series 2010 |
|
| 6.000% due 12/01/2036 |
|
|
|
|
1,400 |
|
|
|
|
|
1,494 |
|
|
| Port Authority of New York & New Jersey Revenue
Bonds, Series 2016 |
|
| 5.250% due 11/15/2056 (c) |
|
|
|
|
6,000 |
|
|
|
|
|
6,805 |
|
|
| Port Authority of New York & New Jersey Revenue
Bonds, Series 2017 |
|
| 5.250% due 11/15/2057 |
|
|
|
|
5,400 |
|
|
|
|
|
6,195 |
|
|
| Tender Option Bond Trust Receipts/Certificates, New York
Revenue Bonds, Series 2009 |
|
| 6.420% due 07/01/2039 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,149 |
|
|
| Triborough Bridge & Tunnel Authority, New York
Revenue Bonds, Series 2018 |
|
| 4.000% due 11/15/2048 |
|
|
|
|
1,600 |
|
|
|
|
|
1,635 |
|
|
| Troy Capital Resource Corp., New York Revenue Bonds,
Series 2010 |
|
| 5.125% due 09/01/2040 |
|
|
|
|
3,435 |
|
|
|
|
|
3,577 |
|
|
| TSASC, Inc., New York Revenue Bonds,
Series 2016 |
|
| 5.000% due 06/01/2048 |
|
|
|
|
2,750 |
|
|
|
|
|
2,651 |
|
|
| TSASC, Inc., New York Revenue Bonds,
Series 2017 |
|
| 5.000% due 06/01/2035 |
|
|
|
|
3,000 |
|
|
|
|
|
3,268 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
500 |
|
|
|
|
|
517 |
|
|
| Ulster County, New York Capital Resource Corp. Revenue Bonds,
Series 2017 |
|
| 5.250% due 09/15/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
945 |
|
|
| Utility Debt Securitization Authority Revenue Bonds,
Series 2015 |
|
| 5.000% due 12/15/2037 (c) |
|
|
|
|
4,000 |
|
|
|
|
|
4,533 |
|
|
| Westchester County Healthcare Corp., New York Revenue Bonds,
Series 2010 |
|
| 6.125% due 11/01/2037 |
|
|
|
|
1,490 |
|
|
|
|
|
1,604 |
|
|
| Westchester County, New York Local Development Corp. Revenue
Bonds, Series 2014 |
|
| 5.500% due 05/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,079 |
|
|
| Yonkers Economic Development Corp., New York Revenue Bonds,
Series 2010 |
|
| 6.000% due 10/15/2030 |
|
|
|
|
865 |
|
|
|
|
|
888 |
|
|
| Yonkers Industrial Development Agency, New York Revenue
Bonds, Series 2001 |
|
| 6.000% due 06/01/2041 |
|
|
|
|
600 |
|
|
|
|
|
610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
208,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
57 |
Schedule of Investments PIMCO New York Municipal Income
Fund II (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| OHIO 1.2% |
|
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue
Bonds, Series 2007 |
|
| 6.500% due 06/01/2047 |
|
$ |
|
|
1,435 |
|
|
$ |
|
|
1,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 0.9% |
|
|
| Puerto Rico Highway & Transportation Authority
Revenue Bonds, (AGC Insured), Series 2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 1.0% |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2009 |
|
| 6.000% due 10/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,005 |
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands
Revenue Bonds, Series 2010 |
|
| 5.250% due 10/01/2029 |
|
|
|
|
200 |
|
|
|
|
|
202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost
$208,745) |
|
|
|
|
|
217,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
MARKET
VALUE
(000S) |
|
| SHORT-TERM INSTRUMENTS 4.6% |
|
|
|
| REPURCHASE AGREEMENTS (e) 4.6% |
|
|
|
|
|
|
|
|
|
$ |
|
|
5,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $5,433) |
|
|
|
|
|
5,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $214,178) |
|
|
|
|
|
222,793 |
|
|
|
|
|
|
|
|
Total Investments 187.2%
(Cost $214,178) |
|
|
$ |
|
|
222,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Auction Rate Preferred Shares (48.7)% |
|
|
|
|
|
(58,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Variable Rate MuniFund Term Preferred Shares, at liquidation value (17.5)% |
|
|
|
|
|
(20,840 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Assets and Liabilities, net (21.0)% |
|
|
(24,939 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
119,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
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. |
| (d) |
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 December 31, 2018.
|
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 |
|
|
2.000 |
% |
|
|
12/31/2018 |
|
|
|
01/02/2019 |
|
|
$ |
5,433 |
|
|
U.S. Treasury Notes 2.875% due 09/30/2023 |
|
$ |
(5,543 |
) |
|
$ |
5,433 |
|
|
$ |
5,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
$ |
(5,543 |
) |
|
$ |
5,433 |
|
|
$ |
5,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
5,433 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
5,433 |
|
|
$ |
(5,543 |
) |
|
$ |
(110 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
5,433 |
|
|
$ |
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 regarding master netting arrangements. |
|
|
|
|
|
|
|
|
|
| 58 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
December 31, 2018
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Fund’s
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
12/31/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Florida |
|
$ |
0 |
|
|
$ |
1,032 |
|
|
$ |
0 |
|
|
$ |
1,032 |
|
| Illinois |
|
|
0 |
|
|
|
3,303 |
|
|
|
0 |
|
|
|
3,303 |
|
| Louisiana |
|
|
0 |
|
|
|
1,003 |
|
|
|
0 |
|
|
|
1,003 |
|
| New York |
|
|
0 |
|
|
|
208,325 |
|
|
|
0 |
|
|
|
208,325 |
|
| Ohio |
|
|
0 |
|
|
|
1,435 |
|
|
|
0 |
|
|
|
1,435 |
|
| Puerto Rico |
|
|
0 |
|
|
|
1,055 |
|
|
|
0 |
|
|
|
1,055 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
1,207 |
|
|
|
0 |
|
|
|
1,207 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
5,433 |
|
|
|
0 |
|
|
|
5,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
222,793 |
|
|
$ |
0 |
|
|
$ |
222,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant transfers into or out of Level 3 during the period ended
December 31, 2018.
|
|
|
|
|
|
|
| See Accompanying Notes |
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
59 |
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 and PIMCO New York Municipal Income Fund II (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 |
|
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. Realized gains (losses) from securities sold are recorded on the identified cost basis. 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. 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 and gains from the sale of portfolio securities and other sources to common shareholders.
|
|
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|
|
|
|
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|
| |
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|
Distribution Frequency |
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|
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|
| 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 |
|
Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than once
each year.
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 different for certain
transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared
|
|
|
|
|
|
|
|
|
| 60 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
December 31, 2018
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.
If a 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. For these purposes, a Fund estimates 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 estimated 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, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and 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 the 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 reported on Form 1099 DIV sent to shareholders for the calendar year.
Distributions classified as a tax basis return of capital, 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 In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statements of Cash
Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the
ASU did not have an impact on the Funds’ financial statements.
In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statements of Cash Flows. The ASU is effective for annual
periods beginning after December 15, 2017, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ financial statements.
In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization
period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Funds have adopted the ASU. The
implementation of the ASU did not have an impact on the Funds’ financial statements.
In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual
periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual
periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.
In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose
of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are
incorporated throughout all periods presented in the financial statements.
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 attributable to that
Fund, less any liabilities, 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 (“NYSE Close”). Information that becomes known to the Funds or their
|
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|
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|
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|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
61 |
Notes to Financial Statements (Cont.)
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.
Each Fund reserves the right to change the time as of which its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.
For purposes of calculating a 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 data reflecting the earlier closing of 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. Swap agreements are valued
on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. A Fund’s investments in open-end management investment companies, other than
exchange-traded funds (“ETFs”), 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 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 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
|
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|
| 62 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
December 31, 2018
| |
|
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 and Level 2 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 and Level 2 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.
Level 3 trading assets and trading liabilities, at fair value 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 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 at December 31, 2018 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 (“GNMA” or “Ginnie Mae”), 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. Zero coupon
|
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|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
63 |
Notes to Financial Statements (Cont.)
securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.
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.
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. For a detailed description of
credit and counterparty risks that can be associated with borrowings and other financing transactions; please see Note 6, Principal Risks.
(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 the 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, a Fund may pay a fee for the receipt of collateral, which may result in
interest expense to the 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 and TOB Residual to purchase the Fixed Rate Bond from a
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 a 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:
(1) cause the holders of the TOB Floater to tender their notes at par, and (2) 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
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| 64 |
|
PIMCO CLOSED-END FUNDS |
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|
December 31, 2018
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 (“MTE”), 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.
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 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 December 31, 2018, 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 |
|
|
|
|
|
$ |
74,784 |
|
|
|
2.08% |
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
248,593 |
|
|
|
2.12% |
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
101,033 |
|
|
|
2.17% |
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
97,076 |
|
|
|
2.04% |
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
65 |
Notes to Financial Statements (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Average
Leverage
Outstanding
(000s) |
|
|
Weighted
Average
Interest
Rate |
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
$ |
61,606 |
|
|
|
2.09% |
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
80,014 |
|
|
|
2.08% |
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
25,720 |
|
|
|
1.88% |
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
32,606 |
|
|
|
2.21% |
|
6. 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 more comprehensive list of potential risks the Funds may be subject to, please see the Important
Information About the Funds.
Market Risks A Fund’s investments in financial derivative instruments and other financial instruments expose the Fund to various risks such as, but not limited to, interest rate, foreign (non-U.S.) currency, equity and commodity risks.
Interest rate risk is the risk that fixed
income securities and other instruments held by a Fund will decline in value because of changes in interest rates. As nominal interest rates rise, the value of certain fixed income securities held by a Fund is likely to decrease. A nominal interest
rate can be described as the sum of a real interest rate and an expected inflation rate. Interest rate changes can be sudden and unpredictable, and a Fund may lose money if these changes are not anticipated by the Fund’s management. Variable
rate securities may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. A Fund may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In
addition, any hedges may not work as intended.
Fixed income securities with longer durations tend to be more sensitive to
changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates that incorporates a security’s
yield, coupon, final maturity and call features, among other characteristics. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e. yield) movements. All other things
remaining equal, for each one percentage point increase in interest rates, the value of a portfolio of fixed income investments would generally be expected to decline by one percent for every year of the portfolio’s average duration above zero.
For example, the value of a portfolio of fixed income securities with an average duration of three years would generally be expected to decline by approximately 3% if interest rates rose by one
percentage point. Convexity is an additional measure used to understand a security’s interest rate sensitivity. Convexity measures the rate of change of duration in response to changes in
interest rates and may be positive or negative. Securities with negative convexity may experience greater losses during periods of rising interest rates, and accordingly Funds holding such securities may be subject to a greater risk of losses in
periods of rising interest rates.
A wide variety of factors can cause interest rates to rise (e.g., central bank monetary
policies, inflation rates, general economic conditions, etc.). This risk may be particularly acute in the current market environment because market interest rates are currently near historically low levels. Thus, the Funds currently face a
heightened level of interest rate risk, especially since the Federal Reserve Board has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Federal Reserve Board continues to raise
interest rates, there is a risk that rates across the financial system may rise. During periods of very low or negative interest rates, a Fund may be unable to maintain positive returns. Changing interest rates, including rates that fall below zero,
may have unpredictable effects on markets, may result in heightened market volatility and may detract from Fund performance to the extent a Fund is exposed to such interest rates. Rising interest rates may result in a decline in value of a
Fund’s fixed-income investments and in periods of volatility. Further, while U.S. bond markets have steadily grown over the past three decades, dealer “market making” ability has remained relatively stagnant. As a result, dealer
inventories of certain types of bonds and similar instruments, which provide a core indication of the ability of financial intermediaries to “make markets,” are at or near historic lows in relation to market size. Because market makers
provide stability to a market through their intermediary services, the significant reduction in dealer inventories could potentially lead to decreased liquidity and increased volatility in the fixed income markets. Such issues may be exacerbated
during periods of economic uncertainty. All of these factors, collectively and/or individually, could cause a Fund to lose value.
The market values of a Fund’s investments may decline due to general market conditions which are not specifically related to a
particular company or issuer, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment. They may also decline due to factors
which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility
than fixed income securities, although under certain market conditions fixed income securities may have comparable or greater price volatility.
|
|
|
|
|
|
|
|
|
| 66 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
December 31, 2018
Credit ratings downgrades may also negatively affect securities held by a Fund. Even when
markets perform well, there is no assurance that the investments held by a Fund will increase in value along with the broader market. In addition, market risk includes the risk that geopolitical events will disrupt the economy on a national or
global level.
Credit and Counterparty Risks A Fund will be exposed to credit risk to parties with whom it trades and will also bear the risk of settlement default. A Fund seeks to minimize concentrations of credit risk by
undertaking transactions with a large number of counterparties on recognized and reputable exchanges, where applicable. OTC derivative transactions are 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 derivative transactions. For derivatives traded on an exchange or through a central counterparty, credit
risk resides with a Fund’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. A Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a
financial derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of
credit risk, which are often reflected in credit ratings.
Similar to credit risk, a Fund may be exposed to counterparty risk, or
the risk that an institution or other entity with which the Fund has unsettled or open transactions will default. PIMCO, as the Manager, seeks to minimize counterparty risks to the Funds through a number of ways. Prior to entering into transactions
with a new counterparty, the PIMCO Counterparty Risk Committee conducts an extensive credit review of such counterparty and must approve the use of such counterparty. Furthermore, pursuant to the terms of the underlying contract, to the extent that
unpaid amounts owed to a Fund exceed a predetermined threshold, such counterparty is required to advance collateral to the Fund in the form of cash or securities equal in value to the unpaid amount owed to the Fund. A Fund may invest such collateral
in securities or other instruments and will typically pay interest to the counterparty on the collateral received. If the unpaid amount owed to a Fund subsequently decreases, the Fund would be required to return to the counterparty all or a portion
of the collateral previously advanced. PIMCO’s attempts to minimize counterparty risk may, however, be unsuccessful.
All
transactions in listed securities are settled/paid for upon delivery using approved counterparties. The risk of default is considered minimal, as delivery of securities sold is only made once a Fund has received payment. Payment is made on a
purchase once the securities
have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
To the extent a Fund has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap
agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.
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.
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
67 |
Notes to Financial Statements (Cont.)
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.
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% |
|
| (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 loan 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 expense, 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 investment 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”), with the exception of Mr. Buffington, 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 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
|
|
|
|
|
|
|
|
|
| 68 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
December 31, 2018
Interval Funds”), and PIMCO Managed Accounts Trust, 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, each of the Independent Trustees, with the exception of Mr. Buffington, also serves as a trustee of certain
investment companies (together, the “Allianz-Managed Funds”), for which Allianz Global Investors U.S. LLC (“AllianzGI U.S.”), an affiliate of PIMCO, serves as investment manager. Prior to the close of business on
September 5, 2014, a predecessor entity of AllianzGI U.S. served as investment manager of PMAT and the PIMCO Closed-End Funds other than PIMCO Energy and Tactical Credit Opportunities Fund. Mr. Buffington
does not serve on the Board of any PIMCO Managed or Allianz-Managed Funds other than the Funds.
Each Independent Trustee, with
the exception of Mr. Buffington, currently receives annual compensation of $225,000 for his or her service on the Boards of the PIMCO Managed Funds, payable quarterly. The Independent Chair of the Boards receives an additional $75,000 per year,
payable quarterly. The Audit Oversight Committee Chairman receives an additional $50,000 annually, payable quarterly. Trustees are also reimbursed for meeting-related expenses. Mr. Buffington, who does not serve on the Board of any PIMCO Managed
Funds other than the Funds, will receive a portion of the $225,000 annual compensation paid to the Independent Trustees based on a fixed percentage allocated to the PIMCO Closed-End Funds for other Trustees, which will then be further allocated pro
rata among the Funds based on the relative net assets of each Fund as described below.
Each Trustee’s compensation for his
or her service as a Trustee on the Boards of the PIMCO Managed Funds and other costs in connection with joint meetings of such Funds are allocated among the PIMCO Managed Funds, as applicable, on the basis of fixed percentages among PMAT, the PIMCO
Interval Funds and the PIMCO Closed-End Funds. Trustee compensation and other costs will then be further allocated pro rata among the individual PIMCO Managed Funds within each grouping based on each such
PIMCO Managed Fund’s relative net assets. Mr. Buffington’s compensation will be determined and allocated among the Funds only in accordance with this methodology as noted above.
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.
Certain Funds are permitted to purchase or sell securities from or to certain related affiliated funds under specified conditions outlined
in
procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Funds from or to another fund or portfolio that are, or could be,
considered an affiliate, or an affiliate of an affiliate, by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7
under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended
December 31, 2018, were as follows (amounts in thousands†):
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Purchases |
|
|
Sales |
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
2,222 |
|
|
$ |
3,177 |
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
15,491 |
|
|
|
6,355 |
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
2,500 |
|
|
|
10,214 |
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
1,477 |
|
|
|
2,630 |
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
2,095 |
|
|
|
1,956 |
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
1,325 |
|
|
|
0 |
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
0 |
|
|
|
2,286 |
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
1,600 |
|
|
|
1,773 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
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 to a 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 also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with
portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
69 |
Notes to Financial Statements (Cont.)
Purchases and sales of securities (excluding short-term investments)
for the period ended December 31, 2018, were as follows (amounts in thousands†):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
U.S. Government/Agency |
|
|
|
|
|
All Other |
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Purchases |
|
|
Sales |
|
|
|
|
|
Purchases |
|
|
Sales |
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
0 |
|
|
$ |
0 |
|
|
|
|
|
|
$ |
193,261 |
|
|
$ |
136,863 |
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
472,633 |
|
|
|
298,851 |
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
248,023 |
|
|
|
157,060 |
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
175,011 |
|
|
|
145,546 |
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
217,445 |
|
|
|
179,068 |
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
114,334 |
|
|
|
87,871 |
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
41,742 |
|
|
|
33,890 |
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
63,750 |
|
|
|
53,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| † |
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.
For the period ended
December 31, 2018, the annualized dividend rates on the ARPS ranged from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Shares
Issued and
Outstanding |
|
|
High |
|
|
Low |
|
|
As of
December 31, 2018 |
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,310 |
|
|
|
3.579% |
|
|
|
1.641% |
|
|
|
2.718% |
|
| Series B |
|
|
|
|
|
|
1,367 |
|
|
|
3.579% |
|
|
|
1.630% |
|
|
|
2.718% |
|
| Series C |
|
|
|
|
|
|
1,294 |
|
|
|
3.579% |
|
|
|
1.663% |
|
|
|
2.672% |
|
| Series D |
|
|
|
|
|
|
1,388 |
|
|
|
3.579% |
|
|
|
1.586% |
|
|
|
2.672% |
|
| Series E |
|
|
|
|
|
|
1,309 |
|
|
|
3.686% |
|
|
|
1.641% |
|
|
|
2.703% |
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
2,279 |
|
|
|
3.579% |
|
|
|
1.641% |
|
|
|
2.718% |
|
| Series B |
|
|
|
|
|
|
2,577 |
|
|
|
3.579% |
|
|
|
1.630% |
|
|
|
2.718% |
|
| Series C |
|
|
|
|
|
|
2,422 |
|
|
|
3.579% |
|
|
|
1.663% |
|
|
|
2.672% |
|
| Series D |
|
|
|
|
|
|
2,300 |
|
|
|
3.579% |
|
|
|
1.586% |
|
|
|
2.672% |
|
| Series E |
|
|
|
|
|
|
2,353 |
|
|
|
3.686% |
|
|
|
1.641% |
|
|
|
2.703% |
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,018 |
|
|
|
3.579% |
|
|
|
1.641% |
|
|
|
2.718% |
|
| Series B |
|
|
|
|
|
|
1,190 |
|
|
|
3.579% |
|
|
|
1.630% |
|
|
|
2.718% |
|
| Series C |
|
|
|
|
|
|
1,350 |
|
|
|
3.579% |
|
|
|
1.663% |
|
|
|
2.672% |
|
| Series D |
|
|
|
|
|
|
1,334 |
|
|
|
3.579% |
|
|
|
1.586% |
|
|
|
2.672% |
|
| Series E |
|
|
|
|
|
|
1,296 |
|
|
|
3.686% |
|
|
|
1.641% |
|
|
|
2.703% |
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,575 |
|
|
|
3.579% |
|
|
|
1.641% |
|
|
|
2.718% |
|
| Series B |
|
|
|
|
|
|
1,547 |
|
|
|
3.579% |
|
|
|
1.663% |
|
|
|
2.672% |
|
| Series C |
|
|
|
|
|
|
1,703 |
|
|
|
3.686% |
|
|
|
1.641% |
|
|
|
2.703% |
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,154 |
|
|
|
3.579% |
|
|
|
1.641% |
|
|
|
2.718% |
|
| Series B |
|
|
|
|
|
|
879 |
|
|
|
3.579% |
|
|
|
1.630% |
|
|
|
2.718% |
|
| Series C |
|
|
|
|
|
|
1,235 |
|
|
|
3.579% |
|
|
|
1.663% |
|
|
|
2.672% |
|
| Series D |
|
|
|
|
|
|
926 |
|
|
|
3.579% |
|
|
|
1.586% |
|
|
|
2.672% |
|
| Series E |
|
|
|
|
|
|
953 |
|
|
|
3.686% |
|
|
|
1.641% |
|
|
|
2.703% |
|
|
|
|
|
|
|
|
|
|
| 70 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Shares
Issued and
Outstanding |
|
|
High |
|
|
Low |
|
|
As of
December 31, 2018 |
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,920 |
|
|
|
3.579% |
|
|
|
1.630% |
|
|
|
2.718% |
|
| Series B |
|
|
|
|
|
|
1,995 |
|
|
|
3.579% |
|
|
|
1.586% |
|
|
|
2.672% |
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,641 |
|
|
|
3.579% |
|
|
|
1.630% |
|
|
|
2.718% |
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,178 |
|
|
|
3.579% |
|
|
|
1.663% |
|
|
|
2.672% |
|
| Series B |
|
|
|
|
|
|
1,142 |
|
|
|
3.686% |
|
|
|
1.641% |
|
|
|
2.703% |
|
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 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”
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 Obligations Rate” means 90% of the
quotient of (A) the per annum rate expressed on an interest equivalent basis equal to the S&P Municipal Bond 7-day High Grade Rate Index divided by (B) 1.00 minus the Marginal Tax Rate (defined as the
maximum marginal regular Federal individual income tax rate applicable to an individual’s or a corporation’s ordinary income, whichever is greater). |
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.
On July 20, 2018, each Fund commenced a voluntary tender offer for up to 100% of its outstanding ARPS
at a price equal to 85% of the ARPS’ per share liquidation preference of $25,000 (or $21,250 per share) and any unpaid dividends accrued through the expiration of the tender offers (each, a “Tender Offer”).
On September 12, 2018, each Fund announced the expiration and results of its Tender Offer.
Details of the ARPS
tendered and not withdrawn for each Fund for the reporting period ended December 31, 2018 are provided in the table below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Liquidation
Preference
Per Share |
|
|
Tender Offer
Price
Per Share |
|
|
Price
Percentage |
|
|
Cash Exchanged
for ARPS
Tendered |
|
|
ARPS
Outstanding
as of 06/30/2018 |
|
|
ARPS
Tendered |
|
|
ARPS
Outstanding
After Tender
Offer as of
12/31/2018 |
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
25,000 |
|
|
$ |
21,250 |
|
|
|
85 |
% |
|
$ |
19,805,000 |
|
|
|
7,600 |
|
|
|
932 |
|
|
|
6,668 |
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
25,000 |
|
|
|
21,250 |
|
|
|
85 |
|
|
|
58,416,250 |
|
|
|
14,680 |
|
|
|
2,749 |
|
|
|
11,931 |
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
25,000 |
|
|
|
21,250 |
|
|
|
85 |
|
|
|
29,155,000 |
|
|
|
7,560 |
|
|
|
1,372 |
|
|
|
6,188 |
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
25,000 |
|
|
|
21,250 |
|
|
|
85 |
|
|
|
24,968,750 |
|
|
|
6,000 |
|
|
|
1,175 |
|
|
|
4,825 |
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
25,000 |
|
|
|
21,250 |
|
|
|
85 |
|
|
|
29,176,250 |
|
|
|
6,520 |
|
|
|
1,373 |
|
|
|
5,147 |
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
25,000 |
|
|
|
21,250 |
|
|
|
85 |
|
|
|
23,056,250 |
|
|
|
5,000 |
|
|
|
1,085 |
|
|
|
3,915 |
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
25,000 |
|
|
|
21,250 |
|
|
|
85 |
|
|
|
5,078,750 |
|
|
|
1,880 |
|
|
|
239 |
|
|
|
1,641 |
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
25,000 |
|
|
|
21,250 |
|
|
|
85 |
|
|
|
17,850,000 |
|
|
|
3,160 |
|
|
|
840 |
|
|
|
2,320 |
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
71 |
Notes to Financial Statements (Cont.)
(b) Variable Rate MuniFund Term
Preferred Shares 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 “VMTP Fund” and together, the “VMTP Funds”) each has a single series of Variable Rate MuniFund Term
Preferred Shares (the “VMTP Shares”), Series 2022, issued on September 18, 2018. In the VMTP Funds’ Statements of Assets and Liabilities, the VMTP Shares’ aggregate liquidation preference is shown as a liability since they are
considered debt of the issuer. Costs directly related to the issuance of the VMTP Shares are considered debt issuance costs and are being amortized into interest expense over the life of the VMTP Shares. The liquidation value of the VMTP Shares in
each VMTP Fund’s Statement 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 VMTP Shares can be redeemed in whole or in part, at their liquidation preference of $100,000 per share plus any accumulated, unpaid dividends, plus an optional redemption premium for certain optional redemptions that occur
within one year of the issuance date of the VMTP Shares. The VMTP Shares are subject to a mandatory term redemption date of March 18, 2022, subject to each VMTP Fund’s right to extend the term with the consent of the holders of the VMTP
Shares. There is no assurance that the term of the VMTP Shares will be extended.
Dividends paid with respect to the VMTP
Shares, which are payable monthly, are treated as interest expense, are accrued daily and are reflected as a component of interest expense in the Statement of Operations. For the period ended December 31, 2018, the average amount of the VMTP
Shares outstanding, interest expense related to the dividends paid to VMTP Shares and the daily weighted average interest rate (calculated from issuance date), including issuance costs, can be found in the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Average
VMTP Shares
Outstanding |
|
|
Interest
Expense† |
|
|
Weighted
Average
Interest
Rate* |
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
|
233 |
|
|
$ |
175 |
|
|
|
2.84 |
% |
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
687 |
|
|
|
515 |
|
|
|
2.77 |
|
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
343 |
|
|
|
257 |
|
|
|
2.80 |
|
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
293 |
|
|
|
220 |
|
|
|
2.81 |
|
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
343 |
|
|
|
257 |
|
|
|
2.80 |
|
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
271 |
|
|
|
203 |
|
|
|
2.82 |
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
210 |
|
|
|
157 |
|
|
|
2.85 |
|
| † |
Amounts in thousands. A zero balance may reflect actual amounts rounding to less than one
thousand. |
| * |
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. |
Each VMTP Fund is subject to certain limitations and restrictions while the VMTP Shares are
outstanding. Failure to comply with these limitations and restrictions could preclude a VMTP 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 VMTP 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 VMTP 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 VMTP 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 Fund’s preferred shares. Under the terms of a purchase agreement between each VMTP Fund and the investor in the VMTP Shares,
each VMTP Fund is subject to various investment requirements while the VMTP shares are outstanding. These requirements may be more restrictive than those to which the VMTP Fund is otherwise
subject in accordance with its investment objectives and policies. In addition, each VMTP Fund is subject to certain restrictions on its investments imposed by guidelines of the rating agencies
that rate the VMTP 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 VMTP Fund by the Act.
Each VMTP Fund is required to maintain certain asset coverage with respect to all
outstanding senior securities of the VMTP Fund which are stocks for purposes of the Act, including the VMTP Shares and ARPS, as set forth in such VMTP Fund’s governing documents and the Act. One such requirement under the Act is that a VMTP
Fund is not permitted to declare or pay common share dividends unless immediately thereafter the VMTP 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 VMTP Fund is reported in the Financial Highlights and is
|
|
|
|
|
|
|
|
|
| 72 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
December 31, 2018
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 VMTP Fund, ARPS
and the VMTP Shares rank on parity with each other, and are both senior in priority to the VMTP Fund’s outstanding common shares. Holders of preferred shares of each VMTP Fund, who are entitled to one vote per share, including holders of VMTP
Shares and ARPS, generally vote together as one class with the
common shareholders of each VMTP Fund, but Preferred shareholders (VMTP Shares and ARPS together) vote separately as a class to elect two Trustees of each VMTP Fund, as required by the Act, and
on certain matters adversely affecting the rights of preferred shareholders. Under the 1940 Act, preferred shareholders, including holders of the VMTP 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 VMTP Shares’
Dividend Rate 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 VMTP
Shares for a given Rate Period are dependent on the Dividend Rate for that Rate Period. The Dividend Rate is equal to the greater of (i) the sum of the Index Rate1 plus the Applicable Spread2 for the Rate Period, and (ii) the sum of the product of the Index Rate multiplied by the Applicable Multiplier3 for such Rate Period plus
0.97%. The dividend per VMTP Share for the Rate Period is then determined as described in the table below.4
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividend Rate |
|
|
|
Rate Period Fraction |
|
|
|
VMTP Shares
Liquidation Preference |
|
|
|
Dividend |
| |
|
|
|
Number of days in the Rate Period (or a part thereof) |
|
|
|
|
|
|
|
|
| Dividend Rate |
|
x |
|
Divided by |
|
x |
|
100,000 |
|
= |
|
Dividends per VMTP 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 VMTP Shares. |
| 3 |
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 VMTP Shares. |
| 4 |
The Dividend Rate will in no event exceed 15% per year. |
For the period ended December 31, 2018, the annualized dividend rate on the VMTP Shares ranged from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Shares
Issued and
Outstanding |
|
|
High |
|
|
Low |
|
|
As of
December 31, 2018 |
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2022 |
|
|
|
|
|
|
233 |
|
|
|
2.680% |
|
|
|
2.450% |
|
|
|
2.680% |
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2022 |
|
|
|
|
|
|
687 |
|
|
|
2.680% |
|
|
|
2.450% |
|
|
|
2.680% |
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2022 |
|
|
|
|
|
|
343 |
|
|
|
2.680% |
|
|
|
2.450% |
|
|
|
2.680% |
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2022 |
|
|
|
|
|
|
293 |
|
|
|
2.680% |
|
|
|
2.450% |
|
|
|
2.680% |
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2022 |
|
|
|
|
|
|
343 |
|
|
|
2.680% |
|
|
|
2.450% |
|
|
|
2.680% |
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2022 |
|
|
|
|
|
|
271 |
|
|
|
2.680% |
|
|
|
2.450% |
|
|
|
2.680% |
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2022 |
|
|
|
|
|
|
210 |
|
|
|
2.680% |
|
|
|
2.450% |
|
|
|
2.680% |
|
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.
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
73 |
Notes to Financial Statements (Cont.)
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 December 31, 2018,
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.
As of December 31, 2018, the components of distributable taxable earnings are as follows
(amounts in thousands†):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Undistributed
Tax Exempt
Income |
|
|
Undistributed
Ordinary
Income(1) |
|
|
Undistributed
Long-Term
Capital Gains |
|
|
Net Tax
Basis
Unrealized
Appreciation/
(Depreciation)(2) |
|
|
Other
Book-to-Tax
Accounting
Differences(3) |
|
|
Accumulated
Capital
Losses(4) |
|
|
Qualified
Late-Year
Loss
Deferral -
Capital(5) |
|
|
Qualified
Late-Year
Loss
Deferral -
Ordinary(6) |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
1,234 |
|
|
$ |
0 |
|
|
$ |
382 |
|
|
$ |
30,274 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
15,069 |
|
|
|
0 |
|
|
|
0 |
|
|
|
60,396 |
|
|
|
0 |
|
|
|
(3,744 |
) |
|
|
0 |
|
|
|
0 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
33,475 |
|
|
|
(1,006 |
) |
|
|
0 |
|
|
|
(577 |
) |
|
|
0 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
7,719 |
|
|
|
0 |
|
|
|
0 |
|
|
|
16,895 |
|
|
|
0 |
|
|
|
(888 |
) |
|
|
0 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
5,010 |
|
|
|
25,641 |
|
|
|
(1,173 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
781 |
|
|
|
0 |
|
|
|
0 |
|
|
|
14,834 |
|
|
|
0 |
|
|
|
(777 |
) |
|
|
0 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
668 |
|
|
|
0 |
|
|
|
0 |
|
|
|
5,244 |
|
|
|
0 |
|
|
|
(602 |
) |
|
|
0 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
8,701 |
|
|
|
(583 |
) |
|
|
(2,752 |
) |
|
|
0 |
|
|
|
0 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
| (1) |
Includes undistributed short-term capital gains, if any. |
| (2) |
Adjusted for open wash sale loss deferrals. Also adjusted for differences between book and
tax defaulted bond interest accrual and inverse floater transactions. |
| (3) |
Represents differences in income tax regulations and financial accounting principles
generally accepted in the United States of America. |
| (4) |
Capital losses available to offset future net capital gains expire in varying amounts as
shown below. |
| (5) |
Capital losses realized during the period November 1, 2018 through December 31,
2018 which the Funds elected to defer to the following taxable year pursuant to income tax regulations. |
| (6) |
Specified losses realized during the period November 1, 2018 through December 31,
2018 which the Funds elected to defer to the following taxable year pursuant to income tax regulations. |
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 December 31, 2018, the Funds had the following post-effective capital losses with no expiration (amounts in thousands†):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Short-Term |
|
|
Long-Term |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
0 |
|
|
$ |
0 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
3,744 |
|
|
|
0 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
888 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
777 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
600 |
|
|
|
2 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
2,752 |
|
|
|
0 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
|
|
|
|
|
|
|
|
|
| 74 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
December 31, 2018
As of December 31, 2018, 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)(7) |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
559,342 |
|
|
$ |
34,699 |
|
|
$ |
(4,583 |
) |
|
$ |
30,116 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
1,320,416 |
|
|
|
65,839 |
|
|
|
(5,900 |
) |
|
|
59,939 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
608,134 |
|
|
|
36,871 |
|
|
|
(3,472 |
) |
|
|
33,399 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
468,993 |
|
|
|
20,091 |
|
|
|
(2,147 |
) |
|
|
17,944 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
469,687 |
|
|
|
28,121 |
|
|
|
(1,715 |
) |
|
|
26,406 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
390,185 |
|
|
|
16,626 |
|
|
|
(1,675 |
) |
|
|
14,951 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
147,227 |
|
|
|
5,523 |
|
|
|
(1,007 |
) |
|
|
4,516 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
213,958 |
|
|
|
9,983 |
|
|
|
(1,149 |
) |
|
|
8,834 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
| (7) |
Primary differences, if any, between book and tax net unrealized appreciation/(depreciation)
on investments are attributable to open wash sale loss deferrals inverse floater transactions, and tax defaulted bond interest accrual for federal income tax purposes. |
For the fiscal years ended December 31, 2018 and December 31, 2017, respectively, the Funds made the following tax basis
distributions (amounts in thousands†):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
December 31, 2018 |
|
|
|
|
|
December 31, 2017 |
|
| |
|
|
|
|
Tax-Exempt
Income
Distributions |
|
|
Ordinary
Income
Distributions(8) |
|
|
Long-Term
Capital Gain
Distributions |
|
|
Return of
Capital(9) |
|
|
|
|
|
Tax-Exempt
Income
Distributions |
|
|
Ordinary
Income
Distributions(8) |
|
|
Long-Term
Capital Gain
Distributions |
|
|
Return of
Capital(9) |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
22,054 |
|
|
$ |
600 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
|
|
|
|
$ |
20,948 |
|
|
$ |
590 |
|
|
$ |
0 |
|
|
$ |
0 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
55,729 |
|
|
|
732 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
52,427 |
|
|
|
834 |
|
|
|
0 |
|
|
|
0 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
25,943 |
|
|
|
308 |
|
|
|
3,499 |
|
|
|
0 |
|
|
|
|
|
|
|
24,479 |
|
|
|
286 |
|
|
|
0 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
20,412 |
|
|
|
190 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
19,070 |
|
|
|
287 |
|
|
|
0 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
16,504 |
|
|
|
258 |
|
|
|
198 |
|
|
|
0 |
|
|
|
|
|
|
|
18,108 |
|
|
|
1,842 |
|
|
|
0 |
|
|
|
434 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
14,620 |
|
|
|
97 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
15,554 |
|
|
|
170 |
|
|
|
0 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
6,315 |
|
|
|
48 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
5,896 |
|
|
|
53 |
|
|
|
0 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
7,845 |
|
|
|
118 |
|
|
|
0 |
|
|
|
495 |
|
|
|
|
|
|
|
7,639 |
|
|
|
111 |
|
|
|
0 |
|
|
|
271 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand.
|
| (8) |
Includes short-term capital gains distributed, if any. |
| (9) |
A portion of the distributions made represents a tax return of capital. Return of capital
distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting. |
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 January 2, 2019, the following distributions were declared to common shareholders payable February 1, 2019 to shareholders of
record on January 14, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
0.05967 per common share |
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
$ |
0.06500 per common share |
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
$ |
0.05575 per common share |
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
$ |
0.07700 per common share |
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
$ |
0.03500 per common share |
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
$ |
0.04500 per common share |
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
$ |
0.05700 per common share |
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
$ |
0.05069 per common share |
|
On February 1, 2019, the following distributions were declared to common shareholders payable
March 1, 2019 to shareholders of record on February 11, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
0.05967 per common share |
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
$ |
0.06500 per common share |
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
$ |
0.05575 per common share |
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
$ |
0.07700 per common share |
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
$ |
0.03500 per common share |
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
$ |
0.04500 per common share |
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
$ |
0.05700 per common share |
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
$ |
0.05069 per common share |
|
There were no other subsequent events identified that require recognition or disclosure.
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
75 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of PIMCO Closed-End Funds and Shareholders 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, PIMCO New York Municipal Income Fund and
PIMCO New York Municipal Income Fund II
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, 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, PIMCO New York Municipal Income Fund and
PIMCO New York Municipal Income Fund II (hereafter collectively referred to as the “Funds”) as of December 31, 2018, the related statements of operations and cash flows for the year ended December 31, 2018, the statements of changes in net
assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In
our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2018, the results of each of their operations and each of their cash flows for the year then ended, the
changes in each of their net assets for each of the two years in the period ended December 31, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the
United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered
with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the
custodian and broker. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
February 27, 2019
We have served as the auditor of one or more investment companies in PIMCO Non-Taxable
Closed-End Funds since 2002.
|
|
|
|
|
|
|
|
|
| 76 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
Glossary: (abbreviations that may
be used in the preceding statements)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty
Abbreviations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FICC |
|
Fixed Income Clearing Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Currency
Abbreviations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| USD (or $) |
|
United States Dollar |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Municipal Bond or
Agency Abbreviations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AGC |
|
Assured Guaranty Corp. |
|
CM |
|
California Mortgage Insurance |
|
FHA |
|
Federal Housing Administration |
|
|
|
|
|
|
| AGM |
|
Assured Guaranty Municipal |
|
FGIC |
|
Financial Guaranty Insurance Co. |
|
NPFGC |
|
National Public Finance Guarantee Corp. |
|
|
|
|
|
|
| AMBAC |
|
American Municipal Bond Assurance Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Abbreviations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TBA |
|
To-Be-Announced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
77 |
Annual Shareholder Meeting Results
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 and PIMCO New York Municipal Income Fund II held their
annual meetings of shareholders on December 19, 2018. Shareholders voted as indicated below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
Affirmative |
|
|
Withheld
Authority |
|
| Re-election of Alan
Rappaport — Class I to serve until the annual meeting for the 2021 fiscal year |
|
|
|
|
|
|
24,145,032 |
|
|
|
531,197 |
|
| Re-election of John C.
Maney† — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
24,150,599 |
|
|
|
525,630 |
|
| Re-election of Hans W.
Kertess*,** — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
101 |
|
|
|
4,396 |
|
| Election of T. Matthew Buffington* — Class I to
serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
744 |
|
|
|
0 |
|
The other members of the Board of Trustees at the time of the meeting, namely, Ms. Deborah A.
DeCotis and Messrs. Craig Dawson, Bradford Gallagher, James A. Jacobson and William B. Ogden, IV continued to serve as Trustees of the Fund.
| * |
Preferred Share Trustee |
| ** |
Trustee was not elected by shareholders at the annual meeting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
Affirmative |
|
|
Withheld
Authority |
|
| Re-election of Alan
Rappaport — Class I to serve until the annual meeting for the 2021 fiscal year |
|
|
|
|
|
|
57,745,922 |
|
|
|
1,322,278 |
|
| Re-election of John C.
Maney† — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
57,637,150 |
|
|
|
1,431,050 |
|
| Re-election of Hans W.
Kertess*,** — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
22 |
|
|
|
9,452 |
|
| Election of T. Matthew Buffington* — Class I to
serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
1,276 |
|
|
|
15 |
|
The other members of the Board of Trustees at the time of the meeting, namely, Ms. Deborah A.
DeCotis and Messrs. Craig Dawson, Bradford Gallagher, James A. Jacobson and William B. Ogden, IV continued to serve as Trustees of the Fund.
| * |
Preferred Share Trustee |
| ** |
Trustee was not elected by shareholders at the annual meeting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
Affirmative |
|
|
Withheld
Authority |
|
| Re-election of Hans W.
Kertess — Class I to serve until the annual meeting for the 2021 fiscal year |
|
|
|
|
|
|
29,986,797 |
|
|
|
1,027,581 |
|
| Re-election of John C.
Maney† — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
30,104,996 |
|
|
|
909,382 |
|
| Re-election of Alan
Rappaport*,** — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
138 |
|
|
|
5,139 |
|
| Election of T. Matthew Buffington* — Class I to
serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
574 |
|
|
|
0 |
|
The other members of the Board of Trustees at the time of the meeting, namely, Ms. Deborah A.
DeCotis and Messrs. Craig Dawson, Bradford Gallagher, James A. Jacobson and William B. Ogden, IV continued to serve as Trustees of the Fund.
| * |
Preferred Share Trustee |
| ** |
Trustee was not elected by shareholders at the annual meeting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
Affirmative |
|
|
Withheld
Authority |
|
| Re-election of Alan
Rappaport — Class I to serve until the annual meeting for the 2021 fiscal year |
|
|
|
|
|
|
17,498,883 |
|
|
|
277,165 |
|
| Re-election of John C.
Maney† — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
17,505,829 |
|
|
|
270,219 |
|
| Re-election of Hans W.
Kertess*,** — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
52 |
|
|
|
4,390 |
|
| Election of T. Matthew Buffington* — Class I to
serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
370 |
|
|
|
0 |
|
The other members of the Board of Trustees at the time of the meeting, namely, Ms. Deborah A.
DeCotis and Messrs. Craig Dawson, Bradford Gallagher, James A. Jacobson and William B. Ogden, IV continued to serve as Trustees of the Fund.
| * |
Preferred Share Trustee |
| ** |
Trustee was not elected by shareholders at the annual meeting. |
|
|
|
|
|
|
|
|
|
| 78 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
Affirmative |
|
|
Withheld
Authority |
|
| Re-election of Alan
Rappaport — Class I to serve until the annual meeting for the 2021 fiscal year |
|
|
|
|
|
|
27,698,353 |
|
|
|
1,082,181 |
|
| Re-election of John C.
Maney† — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
27,673,982 |
|
|
|
1,106,552 |
|
| Re-election of Hans W.
Kertess*,** — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
59 |
|
|
|
3,749 |
|
| Election of T. Matthew Buffington* — Class I to
serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
1,281 |
|
|
|
0 |
|
The other members of the Board of Trustees at the time of the meeting, namely, Ms. Deborah A.
DeCotis and Messrs. Craig Dawson, Bradford Gallagher, James A. Jacobson and William B. Ogden, IV continued to serve as Trustees of the Fund.
| * |
Preferred Share Trustee |
| ** |
Trustee was not elected by shareholders at the annual meeting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
Affirmative |
|
|
Withheld
Authority |
|
| Re-election of Hans W.
Kertess — Class I to serve until the annual meeting for the 2021 fiscal year |
|
|
|
|
|
|
20,470,967 |
|
|
|
390,476 |
|
| Re-election of John C.
Maney† — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
20,464,519 |
|
|
|
396,924 |
|
| Re-election of Alan
Rappaport*,** — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
16 |
|
|
|
3,427 |
|
| Election of T. Matthew Buffington* — Class I to
serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
446 |
|
|
|
0 |
|
The other members of the Board of Trustees at the time of the meeting, namely, Ms. Deborah A.
DeCotis and Messrs. Craig Dawson, Bradford Gallagher, James A. Jacobson and William B. Ogden, IV continued to serve as Trustees of the Fund.
| * |
Preferred Share Trustee |
| ** |
Trustee was not elected by shareholders at the annual meeting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
Affirmative |
|
|
Withheld
Authority |
|
| Re-election of Alan
Rappaport — Class I to serve until the annual meeting for the 2021 fiscal year |
|
|
|
|
|
|
7,125,204 |
|
|
|
132,067 |
|
| Re-election of John C.
Maney† — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
7,141,434 |
|
|
|
115,837 |
|
| Failed re-election of
Hans W. Kertess*,** — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
18 |
|
|
|
1,305 |
|
| Election of T. Matthew Buffington* — Class I to
serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
301 |
|
|
|
0 |
|
The other members of the Board of Trustees at the time of the meeting, namely, Ms. Deborah A.
DeCotis and Messrs. Craig Dawson, Bradford Gallagher, James A. Jacobson and William B. Ogden, IV continued to serve as Trustees of the Fund.
| * |
Preferred Share Trustee |
| ** |
Trustee was not elected by shareholders at the annual meeting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
Affirmative |
|
|
Withheld
Authority |
|
| Re-election of Alan
Rappaport — Class I to serve until the annual meeting for the 2021 fiscal year |
|
|
|
|
|
|
10,113,772 |
|
|
|
165,505 |
|
| Re-election of John C.
Maney† — Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
10,081,763 |
|
|
|
197,514 |
|
| Re-election of Hans W.
Kertess*,** — Preferred Shareholder Trustee, Class I |
|
|
|
|
|
|
30 |
|
|
|
1,976 |
|
| Election of T. Matthew Buffington* — Preferred
Shareholder Trustee, Class I to serve until the annual meeting held during the 2021 fiscal year |
|
|
|
|
|
|
292 |
|
|
|
0 |
|
The other members of the Board of Trustees at the time of the meeting, namely, Ms. Deborah A.
DeCotis and Messrs. Craig Dawson, Bradford Gallagher, James A. Jacobson and William B. Ogden, IV continued to serve as Trustees of the Fund.
| * |
Preferred Share Trustee |
| ** |
Trustee was not elected by shareholders at the annual meeting. |
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
79 |
Changes to Boards of Trustees
(Unaudited)
At the annual shareholder meeting of 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”) and PIMCO New York Municipal Income Fund II (“PNI”) (each, a “Contested Fund” and, collectively, the “Contested
Funds”), held on December 19, 2018, incumbent Trustee Hans W. Kertess was replaced on the Board of Trustees (the “Board”) of each of PMF, PML, PCQ, PCK, PNF and PNI and incumbent Trustee Alan Rappaport was replaced on the Board of
each of PZC and PMX, each by T. Matthew Buffington in a contested election for a Trustee position elected by preferred shareholders of each Contested Fund, voting as a separate class. Mr. Buffington was nominated by Dryden Capital Fund, LP,
Dryden Capital, LLC, and certain affiliates thereof (collectively, “Dryden”). Dryden is a holder of Auction Rate Preferred Shares of each Contested Fund.
Effective December 20, 2018, Hans W. Kertess was appointed to the Board of each of PMF, PML, PCQ, PCK, PNF and PNI, and Alan Rappaport
was appointed to the Board of each of PMX and PZC, each as a Class II Trustee to be elected by common and preferred shareholders of the applicable Fund, voting together as a single class.
Effective January 1, 2019, Sarah Cogan was appointed by the Board of each Fund as a Class II Trustee of each Fund.
Effective January 1, 2019, David Fisher was appointed by the Board of each Fund as a Class III Trustee of each Fund.
Effective January 1, 2019, Craig Dawson resigned from the Board of each Fund.
|
|
|
|
|
|
|
|
|
| 80 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
Investment Strategy Updates
(Unaudited)
Effective June 16, 2018, 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”) and PIMCO New York Municipal Income Fund II (“PNI”) (for purposes of this section, each, a “Fund” and, collectively,
the “Funds”), rescinded the following non-fundamental investment policy (the “TOB Policy”):
The Fund may also invest up to 15% of its total assets in Residual Interest Municipal Bonds (RIBs).
Rescinding the TOB Policy also eliminated each Fund’s self-imposed 15% limit on TOBs. However, the Funds remain subject to limits on
leverage imposed by the “Basic Maintenance Amount” asset coverage test imposed by Moody’s Investors Service, Inc., as set forth in each Fund’s Bylaws with respect to each Fund’s auction rate preferred shares, as well as
asset coverage requirements to avoid categorization of TOBs as senior securities under the Investment Company Act of 1940, as amended.
The following risks are associated with the rescission of the TOB Policy:
To the extent that the Funds increase
their use of TOBs as a result of the rescission of the TOB Policy, the Funds would have increased exposure to risks associated with TOBs transactions. These include, for example, risks associated with the use of leverage (both TOBs and other forms
of leverage) and interest rate risk.
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
81 |
Dividend Reinvestment Plan
Each Fund has adopted a Dividend Reinvestment Plan (the “Plan”) which allows common
shareholders to reinvest Fund distributions in additional common shares of the Fund. American Stock Transfer & Trust Company, LLC (the “Plan Agent”) serves as agent for common shareholders in administering the Plan. It is
important to note that participation in the Plan and automatic reinvestment of Fund distributions does not ensure a profit, nor does it protect against losses in a declining market.
Automatic enrollment/voluntary
participation Under the Plan, common shareholders whose shares are registered with the Plan Agent (“registered shareholders”) are automatically enrolled as
participants in the Plan and will have all Fund distributions of income, capital gains and returns of capital (together, “distributions”) reinvested by the Plan Agent in additional common shares of a Fund, unless the shareholder elects to
receive cash. Registered shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholder of record (or if the shares are held in street or other nominee name, to the
nominee) by the Plan Agent. Participation in the Plan is voluntary. Participants may terminate or resume their enrollment in the Plan at any time without penalty by notifying the Plan Agent online at www.amstock.com, by calling (844) 33-PIMCO,
by writing to the Plan Agent, American Stock Transfer & Trust Company, LLC, at P.O. Box 922, Wall Street Station, New York, NY 10269-0560, or, as applicable, by completing and returning the transaction form attached to a Plan
statement. A proper notification will be effective immediately and apply to each Fund’s next distribution if received by the Plan Agent at least three (3) days prior to the record date for the distribution; otherwise, a notification will
be effective shortly following the Fund’s next distribution and will apply to the Fund’s next succeeding distribution thereafter. If you withdraw from the Plan and so request, the Plan Agent will arrange for the sale of your shares and
send you the proceeds, minus brokerage commissions.
How shares are purchased under the
Plan For each Fund distribution, the Plan Agent will acquire common shares for participants either (i) through receipt of newly issued common shares from each Fund
(“newly issued shares”) or (ii) by purchasing common shares of the Fund on the open market (“open market purchases”). If, on a distribution payment date, the NAV per common share of each Fund is equal to or less than the
market price per common share plus estimated brokerage commissions (often referred to as a “market premium”), the Plan Agent will invest the distribution amount on behalf of participants in newly issued shares at a price equal to the
greater of (i) NAV or (ii) 95% of the market price per common share on the payment date. If the NAV is greater than the market price per
common shares plus estimated brokerage commissions (often referred to as a “market discount”) on a distribution payment date, the Plan agent will instead attempt to invest the
distribution amount through open market purchases. If the Plan Agent is unable to invest the full distribution amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agent will
invest any un-invested portion of the distribution in newly issued shares at a price equal to the greater of (i) NAV or (ii) 95% of the market price per share as of the last business day immediately prior to the purchase date (which, in
either case, may be a price greater or lesser than the NAV per common shares on the distribution payment date). No interest will be paid on distributions awaiting reinvestment. Under the Plan, the market price of common shares on a particular date
is the last sales price on the exchange where the shares are listed on that date or, if there is no sale on the exchange on that date, the mean between the closing bid and asked quotations for the shares on the exchange on that date.
The NAV per common share on a particular date is the amount calculated on that date (normally at the close of regular trading on the New
York Stock Exchange) in accordance with each Fund’s then current policies.
Fees and
expenses No brokerage charges are imposed on reinvestments in newly issued shares under the Plan. However, all participants will pay a pro rata share of brokerage commissions
incurred by the Plan Agent when it makes open market purchases. There are currently no direct service charges imposed on participants in the Plan, although each Fund reserves the right to amend the Plan to include such charges. The Plan Agent
imposes a transaction fee (in addition to brokerage commissions that are incurred) if it arranges for the sale of your common shares held under the Plan.
Shares held through nominees In
the case of a registered shareholder such as a broker, bank or other nominee (together, a “nominee”) that holds common shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of
common shares certified by the nominee/record shareholder as representing the total amount registered in such shareholder’s name and held for the account of beneficial owners who are to participate in the Plan. If your common shares are held
through a nominee and are not registered with the Plan Agent, neither you nor the nominee will be participants in or have distributions reinvested under the Plan. If you are a beneficial owner of common shares and wish to participate in the Plan,
and your nominee is unable or unwilling to become a registered shareholder and a Plan participant on your behalf, you may request that your nominee arrange to have all or a portion of your shares re-registered with the Plan Agent in your
|
|
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|
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| 82 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
(Unaudited)
name so that you may be enrolled as a participant in the Plan. Please contact your nominee
for details or for other possible alternatives. Participants whose shares are registered with the Plan Agent in the name of one nominee firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
Tax consequences Automatically
reinvested dividends and distributions are taxed in the same manner as cash dividends and distributions — i.e., automatic reinvestment in additional shares does not relieve shareholders of, or defer the need to pay, any income tax that may
be payable (or that is required to be withheld) on Fund dividends and distributions. The Funds and the Plan Agent reserve the right to amend or terminate the Plan. Additional information about the Plan, as well as a copy of the full Plan itself, may
be obtained from the Plan Agent, American Stock Transfer & Trust Company, LLC, at P.O. Box 922, Wall Street Station, New York, NY 10269-0560; telephone number: (844) 33-PIMCO;
website: www.amstock.com.
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|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
83 |
Management of the Funds
The chart below identifies Trustees and Officers of the Funds.
Unless otherwise indicated, the address of all persons below is c/o Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.
Trustees
|
|
|
|
|
|
|
|
|
|
|
Name and
Year of Birth |
|
Position(s)
Held
with the
Funds |
|
Term of
Office and
Length of
Time Served |
|
Principal Occupation(s)
During the Past 5 Years |
|
Number
of Portfolios
in Fund
Complex
Overseen by
Trustee |
|
Other
Directorships
Held by
Trustee
During the
Past 5 Years |
|
| Independent Trustees |
|
|
|
|
|
|
| Deborah A. DeCotis 1952 |
|
Chair of the Board, Trustee |
|
Trustee of the Funds since 2011, expected to stand for re-election at the annual meeting of shareholders during the 2019 fiscal year for PMF, PCQ, PNF, PCK, PNI and PML and
during the 2020 fiscal year for PMX and PZC. |
|
Advisory Director, Morgan Stanley & Co., Inc. (since 1996); Member, Circle Financial Group (since 2009); Member, Council on Foreign Relations (since 2013); Trustee, Smith
College (since 2017); and Director, Watford Re (since 2017). Formerly, Co-Chair Special Projects Committee, Memorial Sloan Kettering (2005-2015); Trustee, Stanford University (2010-2015); Principal, LaLoop LLC, a retail accessories company
(1999-2014); Director, Helena Rubenstein Foundation (1997-2010); and Director, Armor Holdings (2002-2010). |
|
92 |
|
None |
|
|
|
|
|
|
T. Matthew Buffington
1982* |
|
Trustee |
|
Trustee of PMF, PML, PMX, PCQ, PCK, PZC, PNF and PNI since 2019, expected to stand for re-election at the annual meeting of the
shareholders during the 2021 fiscal year for each fund. |
|
Portfolio Manager of Dryden Capital, LLC since January 2013; the principal business of Dryden Capital, LLC is to provide investment advisory, portfolio and wealth management,
consulting, financial planning and investment supervisory services. |
|
8 |
|
None |
|
|
|
|
|
|
Sarah E. Cogan**
1956 |
|
Trustee |
|
Trustee of the Funds since 2019, expected to stand for election at the annual meeting of the shareholders during the 2019 fiscal year for each fund. |
|
Of Counsel, Simpson Thacher & Bartlett LLP (law firm); Director, Girl Scouts of Greater New York, Inc. (since 2016); and Trustee, Natural Resources Defense Council,
Inc. (since 2013). Formerly, Partner, Simpson Thacher & Bartlett LLP (1989-2018). |
|
91 |
|
None |
|
|
|
|
|
|
| Bradford K. Gallagher 1944 |
|
Trustee |
|
Trustee of the Funds since 2010, expected to stand for re-election at the annual meeting of shareholders during the 2020 fiscal year for PMF, PCQ, PNF, PCK, PNI and PML and
during the 2019 fiscal year for PMX and PCZ. |
|
Retired. Founder, Spyglass Investments LLC, a private investment vehicle (since 2001). Formerly, Chairman and Trustee, The Common Fund (2005-2014); Partner, New Technology
Ventures Capital Management LLC, a venture capital fund (2011-2013); Chairman and Trustee, Atlantic Maritime Heritage Foundation (2007-2012); and Founder, President and CEO, Cypress Holding Company and Cypress Tree Investment Management Company
(1995-2001). |
|
92 |
|
Formerly, Chairman and Trustee, Grail Advisors ETF Trust (2009-2010); and Trustee, Nicholas-Applegate Institutional Funds (2007-2010). |
|
|
|
|
|
|
| James A. Jacobson 1945 |
|
Trustee |
|
Trustee of the Funds since 2009, expected to stand for re-election at the annual meeting of shareholders during the 2019 fiscal year for each Fund. |
|
Retired. Trustee (since 2002) and Chairman of Investment Committee (since 2007), Ronald McDonald House of New York; and Trustee, New Jersey City University (since 2014).
Formerly, Vice Chairman and Managing Director, Spear, Leeds & Kellogg Specialists, LLC, a specialist firm on the New York Stock Exchange (2003-2008). |
|
92 |
|
Formerly, Trustee, Alpine Mutual Funds Complex (consisting of 18 funds) (2009-2016). |
|
|
|
|
|
|
Hans W. Kertess
1939 |
|
Trustee |
|
Trustee of PMF, PCQ and PNF since 2001, of PML, PCK and PNI since 2002 and of PMX and PZC since 2003, expected to stand for re-election at the annual meeting of shareholders
during the 2019 fiscal year for PMF, PCQ, PNF, PML, PCK and PNI and during the 2021 fiscal year for PMX and PZC. |
|
President, H. Kertess & Co., a financial advisory company; and Senior Adviser (formerly Managing Director), Royal Bank of Canada Capital Markets (since 2004). |
|
92 |
|
None |
|
|
|
|
|
|
| William B. Ogden, IV 1945 |
|
Trustee |
|
Trustee of the Funds since 2006, expected to stand for re-election at the annual meeting of shareholders during the 2020 fiscal year for each Fund. |
|
Retired. Formerly, Asset Management Industry Consultant; and Managing Director, Investment Banking Division of Citigroup Global Markets Inc. |
|
92 |
|
None |
|
|
|
|
|
|
|
|
|
| 84 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Name and
Year of Birth |
|
Position(s)
Held
with the
Funds |
|
Term of
Office and
Length of
Time Served |
|
Principal Occupation(s)
During the Past 5 Years |
|
Number
of Portfolios
in Fund
Complex
Overseen by
Trustee |
|
Other
Directorships
Held by
Trustee
During the
Past 5 Years |
|
|
|
|
|
|
Alan Rappaport
1953 |
|
Trustee |
|
Trustee of the Funds since 2010, expected to stand for re-election at the annual meeting of shareholders during the 2021 fiscal year for PMF, PCQ, PNF, PML, PCK and PNI and during the 2019 fiscal year for PMX
and PZC. |
|
Adjunct Professor, New York University Stern School of Business (since 2011); Lecturer, Stanford University Graduate School of Business (since 2013); and Director, Victory Capital Holdings, Inc., an asset
management firm (since 2013). Formerly, Advisory Director (formerly Vice Chairman), Roundtable Investment Partners (2009-2018); Member of Board of Overseers, NYU Langone Medical Center (2015-2016); Trustee, American Museum of Natural History
(2005-2015); Trustee, NYU Langone Medical Center (2007-2015); Vice Chairman (formerly Chairman and President), U.S. Trust (formerly Private Bank of Bank of America, the predecessor entity of U.S. Trust) (2001-2008). |
|
92 |
|
None |
|
| Interested Trustees |
|
|
|
|
|
|
| Craig A. Dawson*** 1968 |
|
Trustee |
|
Trustee since 2014 |
|
Managing Director and Head of PIMCO Europe, Middle East and Africa (since 2016). Director of a number of PIMCO’s European investment vehicles and affiliates (since 2008). Formerly, Head of Strategic
Business Management, PIMCO (2014-2016), head of PIMCO’s Munich office and head of European product management for PIMCO. |
|
26 |
|
None |
|
|
|
|
|
|
| David N. Fisher**** 1968 |
|
Trustee |
|
Trustee of the Funds since 2019, expected to stand for election at the annual meeting of the shareholders during the 2019
fiscal year for each fund. |
|
Managing Director and Head of Traditional Product Strategies, PIMCO (Since 2015); and Director, Court Appointed Special
Advocates (CASA) of Orange County, a nonprofit organization (since 2015). Formerly, Global Bond Strategist, PIMCO (2008-2015); and Managing Director and Head of Global Fixed Income, HSBC Global Asset Management (2005-2008). |
|
27 |
|
None |
|
|
|
|
|
|
| John C. Maney***** 1959 |
|
Trustee |
|
Trustee of the Funds since 2006, expected to stand for re-election at the annual meeting of shareholders during the 2021 fiscal year for each Fund. |
|
Managing Director of Allianz Asset Management of America L.P. (since January 2005) and a member of the Management Board and Chief Operating Officer of Allianz Asset
Management of America L.P. (since November 2006) and a Non-Executive Director and a member of the Compensation Committee of PIMCO Europe Ltd (since December 2017). Formerly, Member of the Management Board of Allianz Global Investors Fund Management
LLC (2007-2014) and Managing Director of Allianz Global Investors Fund Management LLC (2011-2014). |
|
28 |
|
None |
| * |
Mr. Buffington’s address is Dryden Capital, LLC (New York Office), 641 Lexington Avenue,
13th Floor, New York, New York 10022 |
| ** |
Ms. Cogan was appointed as a Trustee of each Fund by the Board effective January 1, 2019.
|
| *** |
Mr. Dawson is an “interested person” of the Funds, as defined in Section 2(a)(19)
of the Act, due to his affiliation with PIMCO and its affiliates. Mr. Dawson’s address is 650 Newport Center Drive, Newport Beach, CA 92660. Mr. Dawson resigned as Trustee of each Fund effective January 1, 2019.
|
| **** |
Mr. Fisher is an “interested person” of the Funds, as defined in
Section 2(a)(19) of the Act, due to his affiliation with PIMCO and its affiliates. Mr. Fisher’s address is 650 Newport Center Drive, Newport Beach, CA 92660. He was appointed as a Trustee of each Fund by the Board effective January 1,
2019. |
| ***** |
Mr. Maney is an “interested person” of the Funds, as defined in
Section 2(a)(19) of the Act, due to his affiliation with Allianz Asset Management of America L.P. and its affiliates. Mr. Maney’s address is 650 Newport Center Drive, Newport Beach, CA 92660. |
|
|
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|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
85 |
Management of the Funds (Cont.)
(Unaudited)
Officers
|
|
|
|
|
|
|
Name, Address and
Year of Birth |
|
Position(s)
Held
with Funds |
|
Term of Office
and Length
of Time Served |
|
Principal Occupation(s) During the Past 5 Years |
|
|
|
|
| Peter G. Strelow1 1970 |
|
President |
|
Since 2014 |
|
Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust,
PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, Chief Administrative Officer, PIMCO. |
|
|
|
|
| Keisha Audain-Pressley 1975 |
|
Chief Compliance Officer |
|
Since January 2018 |
|
Senior Vice President and Deputy Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Managed Funds. |
|
|
|
|
| Joshua D. Ratner 1976 |
|
Chief Legal Officer |
|
Since 2014 |
|
Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable
Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. |
|
|
|
|
| Wu-Kwan Kit1 1981 |
|
Vice President, Senior Counsel and Secretary |
|
Since December 2018 |
|
Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Managed Funds. Assistant Secretary, PIMCO Funds, PIMCO Variable Insurance
Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, Assistant General Counsel, VanEck Associates Corp. |
|
|
|
|
| Ryan G. Leshaw1 1980 |
|
Assistant Secretary |
|
Since 2014 |
|
Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Managed Funds. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO Variable Insurance
Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, Associate, Willkie Farr & Gallagher LLP. |
|
|
|
|
| Stacie D. Anctil1 1969 |
|
Vice President |
|
Since 2015 |
|
Executive Vice President, PIMCO. Vice President, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series
VIT. |
|
|
|
|
| Eric D. Johnson1 1970 |
|
Vice President |
|
Since 2014 |
|
Executive Vice President, PIMCO. Vice President, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series
VIT. |
|
|
|
|
| William G. Galipeau1 1974 |
|
Vice President |
|
Since 2017 |
|
Executive Vice President, PIMCO. Vice President, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series
VIT. |
|
|
|
|
| Bijal Parikh1 1978 |
|
Vice President |
|
Since 2017 |
|
Senior Vice President, PIMCO. Vice President, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series. |
|
|
|
|
| Trent W. Walker1 1974 |
|
Treasurer |
|
Since 2017 |
|
Executive Vice President, PIMCO. Treasurer, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity
Series VIT. |
|
|
|
|
| Erik C. Brown 1967 |
|
Assistant Treasurer |
|
Since 2015 |
|
Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity
Series VIT. |
|
|
|
|
| Colleen Miller 1980 |
|
Assistant Treasurer |
|
Since 2017 |
|
Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity
Series VIT. |
|
|
|
|
| Christopher M. Morin1 1980 |
|
Assistant Treasurer |
|
Since 2016 |
|
Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity
Series VIT. |
|
|
|
|
| Jason J. Nagler 1982 |
|
Assistant Treasurer |
|
Since 2015 |
|
Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust,
PIMCO Equity Series and PIMCO Equity Series VIT. |
| 1 |
The address of these officers is Pacific Investment Management Company LLC, 650 Newport
Center Drive, Newport Beach, California 92660. |
|
|
|
|
|
|
|
|
|
| 86 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
Privacy Policy1
(Unaudited)
The Funds2 consider customer privacy to
be a fundamental aspect of their relationships with shareholders and are committed to maintaining the confidentiality, integrity and security of their current, prospective and former shareholders’
non-public personal information. The Funds have developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.
OBTAINING PERSONAL INFORMATION
In the course of providing shareholders with products and services, the Funds and certain service providers to the Funds, such as the Funds’ investment adviser or sub-adviser
(“Adviser”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal
correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.
RESPECTING YOUR PRIVACY
As a matter of policy, the Funds do not disclose any non-public personal information provided by shareholders or gathered by the Funds to non-affiliated
third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Funds. As is common in the industry, non-affiliated companies may
from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Funds or
their affiliates may also retain non-affiliated companies to market Fund shares or products which use Fund shares and enter into joint marketing arrangements with them and other companies. These companies may
have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third
party, but the Funds may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.
SHARING INFORMATION WITH THIRD PARTIES
The Funds reserve the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Funds believe in good faith that disclosure
is required under law, to cooperate with regulators or law enforcement authorities, to protect their rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Funds may disclose
information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.
SHARING INFORMATION WITH AFFILIATES
The Funds may share shareholder information with their affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the
Funds or their Adviser or its affiliates (“Service Affiliates”) believe may be of interest to such shareholders.
The information that the Funds may share may include, for example, a shareholder’s participation in the Funds or in other investment programs sponsored by a Service Affiliate, a
shareholder’s ownership of certain types of accounts (such as IRAs), information about the Funds’ experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s
accounts, subject to applicable law. The Funds’ Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.
PROCEDURES TO SAFEGUARD PRIVATE INFORMATION
The Funds take seriously the obligation to safeguard shareholder non-public personal information. In
addition to this policy, the Funds have implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that
information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s
non-public personal information.
INFORMATION COLLECTED FROM WEBSITES
Websites maintained by the Funds or their service providers may use a variety of technologies to collect information that help the Funds and
their service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web
browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Funds or their Service Affiliates may use third parties to place advertisements for the Funds on other websites, including
banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation
information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Funds’ website, the
Funds or their service providers or third party firms engaged by the Funds or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the
Funds when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function
properly. The Funds do not look for web browser “do not track” requests.
CHANGES TO THE PRIVACY POLICY
From time to time, the Funds may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents
containing the revised policy on the relevant website will be updated.
1
Amended as of March 23, 2017.
2 When distributing this Policy, a Fund
may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Funds”).
|
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
DECEMBER 31, 2018 |
|
87 |
General Information
Investment Manager
Pacific Investment Management Company LLC
1633 Broadway
New York, NY 10019
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
Deustsche Bank Company Americas
60 Wall Street, MS 2715
New York, New York 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.
CEF3012AR_123118
As of the end of the period covered by this report, the Registrant has adopted a code of ethics (the “Code”) that applies to the
Registrant’s principal executive officer and principal financial & accounting officer. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the principal executive officer or
principal financial & accounting officer during the period covered by this report.
A copy of the Code is included as an exhibit
to this report.
| Item 3. |
Audit Committee Financial Expert. |
The Board of Trustees has determined that James A. Jacobson, who serves on the Board’s Audit Oversight Committee, qualifies as an
“audit committee financial expert” as such term is defined in the instructions to this Item 3. The Board has also determined that Mr. Jacobson is “independent” as such term is interpreted under this Item 3.
| Item 4. |
Principal Accountant Fees and Services. |
|
|
|
|
|
|
|
|
|
|
|
(a) |
|
Fiscal Year Ended |
|
|
|
Audit Fees |
| |
|
|
December 31, 2018 |
|
|
|
$ 51,357 |
| |
|
|
December 31, 2017 |
|
|
|
$ 46,295 |
| |
(b) |
|
Fiscal Year Ended |
|
|
|
Audit-Related Fees |
| |
|
|
December 31, 2018 |
|
|
|
$ 9,500 |
| |
|
|
December 31, 2017 |
|
|
|
$ 9,500 |
| |
(c) |
|
Fiscal Year Ended |
|
|
|
Tax Fees |
| |
|
|
December 31, 2018 |
|
|
|
$ — |
| |
|
|
December 31, 2017 |
|
|
|
$ 1,300 |
| |
(d) |
|
Fiscal Year Ended |
|
|
|
All Other Fees(1) |
| |
|
|
December 31, 2018 |
|
|
|
$ — |
| |
|
|
December 31, 2017 |
|
|
|
$ — |
“Audit Fees” represents fees billed for each of the last two fiscal years for professional services
rendered for the audit and review of the Registrant’s annual financial statements for those fiscal years or services that are normally provided by the accountant in connection with statutory or regulatory filings or engagements for those fiscal
years.
“Audit-Related Fees” represents fees billed for each of the last two fiscal years for assurance and related services
that are reasonably related to the performance of the audit or review of the Registrant’s financial statements, but not reported under “Audit Fees” above, and that include accounting consultations, agreed-upon procedure reports
(inclusive of annual review of basic maintenance testing associated with the Preferred Shares), attestation reports and comfort letters for those fiscal years.
“Tax Fees” represents fees billed for each of the last two fiscal years for professional services related to tax compliance, tax
advice and tax planning, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, and tax distribution and analysis reviews.
“All Other Fees” represents fees, if any, billed for other products and services rendered by the principal accountant to the
Registrant other than those reported above under “Audit Fees,” “Audit-Related Fees” and “Tax Fees” for the last two fiscal years.
(1)There were no “All Other Fees” for the last two fiscal years.
| |
(e) |
Pre-approval policies and procedures |
(1) The Registrant’s Audit Oversight Committee has adopted pre-approval policies and procedures
(the “Procedures”) to govern the Audit Oversight Committee’s pre-approval of (i) all audit services and permissible non-audit services to be provided
to the Registrant by its independent accountant, and (ii) all permissible non-audit services to be provided by such independent accountant to the Registrant’s investment adviser and to any entity
controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant (collectively, the “Service Affiliates”) if the services provided directly relate to the Registrant’s
operations and financial reporting. In accordance with the Procedures, the Audit Oversight Committee is responsible for the engagement of the independent accountant to certify the Registrant’s financial statements for each fiscal year. With
respect to the pre-approval of non-audit services provided to the Registrant and its Service Affiliates, the Procedures provide that the Audit Oversight Committee may
annually pre-approve a list of types or categories of non-audit services that may be provided to the Registrant or its Service Affiliates, or the Audit Oversight
Committee may pre-approve such services on a project-by-project basis as they arise. Unless a type of service has received
general pre-approval, it will require specific pre-approval by the Audit Oversight Committee if it is to be provided by the independent accountant. The Procedures also
permit the Audit Oversight Committee to delegate authority to one or more of its members to pre-approve any proposed non-audit services that have not been previously pre-approved by the Audit Oversight Committee, subject to the ratification by the full Audit Oversight Committee no later than its next scheduled meeting.
(2) With respect to the services described in paragraphs (b) through (d) of this Item 4, no amount was approved by the Audit Oversight
Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
|
|
|
|
|
|
|
|
|
| |
|
Aggregate Non-Audit Fees Billed to Entity |
|
| Entity |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
| PIMCO Municipal Income Fund II |
|
$ |
9,500 |
|
|
$ |
10,800 |
|
| Pacific Investment Management Company LLC (“PIMCO”) |
|
|
8,437,919 |
|
|
|
6,271,517 |
|
|
|
|
|
|
|
|
| Totals |
|
$ |
8,447,419 |
|
|
$ |
6,282,317 |
|
|
|
|
|
|
|
|
|
|
| |
(h) |
The Registrant’s Audit Oversight Committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the
Registrant which were not pre-approved (not requiring pre-approval) is compatible with maintaining the principal accountant’s independence. |
| Item 5. |
Audit Committee of Listed Registrants. |
The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities
Exchange Act of 1934, as amended. The audit committee is comprised of:
Sarah E. Cogan*;
Deborah A. DeCotis;
Bradford K.
Gallagher;
James A. Jacobson;
Hans W. Kertess;
William B.
Ogden, IV; and
Alan Rappaport.
*Effective
January 1, 2019, Ms. Cogan joined the Audit Oversight Committee.
| Item 6. |
Schedule of Investments. |
The Schedule of Investments is included as part of the reports to shareholders under Item 1.
| Item 7. |
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
|
Policy Statement: The proxy voting policy is intended to foster PIMCO’s compliance with its fiduciary
obligations and applicable law; the policy applies to any voting or consent rights with respect to securities held in accounts over which PIMCO has discretionary voting authority. The Policy is designed in a manner reasonably expected to ensure that
voting and consent rights are exercised in the best interests of PIMCO’s clients.
Overview: PIMCO has adopted a written proxy voting
policy (“Proxy Policy”) as required by Rule 206(4)-6 under the Advisers Act. As a general matter, when PIMCO has proxy voting authority, PIMCO has a fiduciary obligation to monitor corporate events
and to take appropriate action on client proxies that come to its attention. Each proxy is voted on a case-by-case basis, taking into account relevant facts and
circumstances. When considering client proxies, PIMCO may determine not to vote a proxy in limited circumstances.
Equity Securities:
PIMCO has retained an Industry Service Provider (“ISP”) to provide research and voting recommendations for proxies relating to equity securities in accordance with the ISP’s guidelines. By following the guidelines of an independent
third party, PIMCO seeks to mitigate potential conflicts of interest PIMCO may have with respect to proxies covered by the ISP. PIMCO will follow the recommendations of the ISP unless: (i) the ISP does not provide a voting recommendation; or
(ii) a PM decides to override the ISP’s voting recommendation. In either such case as described above, the Legal and Compliance department will review the proxy to determine whether a material conflict of interest, or the appearance of
one, exists.
Fixed Income Securities: Fixed income securities can be processed as proxy ballots or corporate action-consents at the
discretion of the issuer/ custodian. When processed as proxy ballots, the ISP generally does not provide a voting recommendation and their role is limited to election processing and recordkeeping. When processed as corporate action-consents, the
Legal and Compliance department will review all election forms to determine whether a conflict of interest, or the appearance of one, exists with respect to the PM’s consent election. PIMCO’s Credit Research and Portfolio Management Groups
are responsible for issuing recommendations on how to vote proxy ballots and corporation action-consents with respect to fixed income securities.
Resolution of potential conflicts of interest: The Proxy Policy permits PIMCO to seek to resolve material conflicts of interest by pursuing
any one of several courses of action. With respect to material conflicts of interest between PIMCO and a client account, the Proxy Policy permits PIMCO to either: (i) convene a working group to assess and resolve the conflict (the “Proxy
Working Group”); or (ii) vote in accordance with protocols previously established by the Proxy Policy, the Proxy Working Group and/or other relevant procedures approved by PIMCO’s Legal and Compliance department with respect to
specific types of conflicts.
PIMCO will supervise and periodically review its proxy voting activities and the implementation of the Proxy
Policy. PIMCO’s Proxy Policy, and information about how PIMCO voted a client’s proxies, is available upon request.
Sub-Adviser Engagement: As an investment manager, PIMCO may exercise its discretion to engage a Sub-Adviser to provide portfolio management services to certain Funds.
Consistent with its management responsibilities, the Sub-Adviser will assume the authority for voting proxies on behalf of PIMCO for these Funds. Sub-Advisers may
utilize third parties to perform certain services related to their portfolio management responsibilities. As a fiduciary, PIMCO will maintain oversight of the investment management responsibilities performed by the
Sub-Adviser and contracted third parties.
| Item 8. |
Portfolio Managers of Closed-End Management Investment Companies. |
(a)(1)
As of February 28, 2019, the following individual has primary responsibility for the day-to-day management of the PIMCO Municipal Income Fund II (the “Fund”):
David Hammer
Mr. Hammer has been a portfolio manager of the Fund since August 2015. Mr. Hammer is an executive vice president in
the New York office and head of municipal bond portfolio management. He rejoined PIMCO in 2015 from Morgan Stanley, where he was managing director and head of municipal trading, risk management and research. Previously at PIMCO, he was a senior vice
president and municipal bond portfolio manager, and prior to joining PIMCO in 2012, he was an executive director and head of the high yield and distressed municipal bond trading group at Morgan Stanley.
(a)(2)
The following summarizes information regarding each of the accounts, excluding the Fund, managed by the Portfolio Manager as of
December 31, 2018 including accounts managed by a team, committee, or other group that includes the Portfolio Manager. Unless mentioned otherwise, the advisory fee charged for managing each of the accounts listed below is not based on
performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Registered Investment
Companies |
|
Other Pooled Investment
Vehicles |
|
Other Accounts |
|
PM |
|
# |
|
AUM($million)
|
|
# |
|
AUM($million) |
|
# |
|
AUM($million) |
|
David Hammer |
|
21 |
|
$6,019.78
|
|
2 |
|
$104.09 |
|
15 |
|
$1,593.12 |
* Of these Other Pooled Investment Vehicles, 2 account(s) totaling
$104.09 million in assets pay(s) an advisory fee that is based in part on the performance of the accounts.
From time to time, potential and actual conflicts of interest may arise between a portfolio manager’s
management of the investments of the Fund, on the one hand, and the management of other accounts, on the other. Potential and actual conflicts of interest may also arise as a result of PIMCO’s other business activities and PIMCO’s
possession of material non-public information about an issuer. Other accounts managed by a portfolio manager might have similar investment objectives or strategies as the Fund, track the same index as the Fund
or otherwise hold, purchase, or sell securities that are eligible to be held, purchased or sold by the Fund. The other accounts might also have different investment objectives or strategies than the Fund. Potential and actual conflicts of interest
may also arise as a result of PIMCO serving as investment adviser to accounts that invest in the Fund. In this case, such conflicts of interest could in theory give rise to incentives for PIMCO to, among other things, vote proxies of the Fund in a
manner beneficial to the investing account but detrimental to the Fund. Conversely, PIMCO’s duties to the Fund, as well as regulatory or other limitations applicable to the Fund, may affect the courses of action available to PIMCO-advised
accounts (including certain funds) that invest in the Fund in a manner that is detrimental to such investing accounts. In addition, regulatory restrictions, actual or potential conflicts of interest or other considerations may cause PIMCO to
restrict or prohibit participation in certain investments.
Because PIMCO is affiliated with Allianz, a
large multi-national financial institution, conflicts similar to those described below may occur between the Fund and other accounts managed by PIMCO and PIMCO’s affiliates or accounts managed by those affiliates. Those affiliates (or their
clients), which generally operate autonomously from PIMCO, may take actions that are adverse to the Fund or other accounts managed by PIMCO. In many cases, PIMCO will not be in a position to mitigate those actions or address those conflicts, which
could adversely affect the performance of the Fund or other accounts managed by PIMCO. In addition, regulatory restrictions, actual or potential conflicts of interest or other considerations cay cause PIMCO to restrict or prohibit participation in
certain investments.
Knowledge and Timing of Fund Trades. A potential conflict of interest may arise as a
result of the portfolio manager’s day-to-day management of the Fund. Because of their positions with the Fund, the portfolio managers know the size, timing and
possible market impact of the Fund’s trades. It is theoretically possible that the portfolio managers could use this information to the advantage of other accounts they manage and to the possible detriment of the Fund.
Investment Opportunities. A potential conflict of interest may arise as a result of the portfolio
manager’s management of a number of accounts with varying investment guidelines. Often, an investment opportunity may be suitable for both the Fund and other accounts managed by PIMCO (each a “Client” and collectively, the
“Clients”), but may not be available in sufficient quantities for both the Fund and the other Clients to participate fully. In addition, regulatory issues applicable to PIMCO or the Fund or other accounts may result in the Fund not
receiving securities that may otherwise be appropriate for it. Similarly, there may be limited opportunity to sell an investment held by the Fund and another account. PIMCO has adopted policies and procedures reasonably designed to allocate
investment opportunities on a fair and equitable basis over time.
Under PIMCO’s allocation
procedures, investment opportunities are allocated among various investment strategies based on individual account investment guidelines and PIMCO’s investment outlook. PIMCO has also adopted additional procedures to complement the general
trade allocation policy that are designed to address potential conflicts of interest due to the side-by-side management of the Fund and certain pooled investment
vehicles, including investment opportunity allocation issues.
From time to time, PIMCO may take an investment position or action for a Client
that may be different from, or inconsistent with, an action or position taken for one or more other Clients having similar or differing investment objectives. These positions and actions may adversely impact, or in some instances may benefit, one or
more affected Clients, including Clients that are PIMCO affiliates, in which PIMCO has an interest, or which pays PIMCO higher fees or a performance fee. For example, a Client may buy a security and another Client may establish a short position in
that same security. The subsequent short sale may result in a decrease in the price of the security that the other Client holds. Similarly, transactions or investments by one or more Clients may have the effect of diluting or otherwise
disadvantaging the values, prices or investment strategies of another Client.
When PIMCO implements for one Client a
portfolio decision or strategy ahead of, or contemporaneously with, similar portfolio decisions or strategies of another Client, market impact, liquidity constraints or other factors could result in one or more Clients receiving less favorable
trading results, the costs of implementing such portfolio decisions or strategies could be increased or such Clients could otherwise be disadvantaged. On the other hand, potential conflicts may also arise because portfolio decisions regarding a
Client may benefit other Clients. For example, the sale of a long position or establishment of a short position for a Client may decrease the price of the same security sold short by (and therefore benefit) other Clients, and the purchase of a
security or covering of a short position in a security for a Client may increase the price of the same security held by (and therefore benefit) other Clients.
Under certain circumstances, a Client may invest in a transaction in which one or more other Clients are expected to
participate, or already have made or will seek to make, an investment. In addition, to the extent permitted by applicable law, a Client may also engage in investment transactions that may result in other Clients being relieved of obligations, or
that may cause other Clients to divest certain investments (e.g., a Client may make a loan to, or directly or indirectly acquire securities or indebtedness of, a company that uses the proceeds to refinance or reorganize its capital structure, which
could result in repayment of debt held by another Client). Such Clients (or groups of Clients) may have conflicting interests and objectives in connection with such investments, including with respect to views on the operations or activities of the
issuer involved, the targeted returns from the investment and the timeframe for, and method of, exiting the investment. When making such investments, PIMCO may do so in a way that favors one Client over another Client, even if both Clients are
investing in the same security at the same time. Certain Clients may invest on a “parallel” basis (i.e., proportionately in all transactions at substantially the same time and on substantially the same terms and conditions). In addition,
other accounts may expect to invest in many of the same types of investments as another account. However, there may be investments in which one or more of such accounts does not invest (or invests on different terms or on a non-pro rata basis) due to factors such as legal, tax, regulatory, business, contractual or other similar considerations or due to the provisions of a Client’s governing documents. Decisions as to the
allocation of investment opportunities among such Clients present numerous conflicts of interest, which may not be resolved in a manner that is favorable to a Client’s interests. To the extent an investment is not allocated pro rata among such
entities, a Client could incur a disproportionate amount of income or loss related to such investment relative to such other Client.
In addition, Clients may invest alongside one another in the same underlying investments or otherwise pursuant
to a substantially similar investment strategy as one or more other Clients. In such cases, certain Clients may have preferential liquidity and information rights relative to other Clients holding the same investments, with the result that such
Clients will be able to withdraw/redeem their interests in underlying investments in priority to Clients who may have more limited access to information or more restrictive withdrawal/redemption rights. Clients with more limited information rights
or more restrictive liquidity may therefore be adversely affected in the event of a downturn in the markets.
Further, potential conflicts may be inherent in PIMCO’s use of multiple strategies. For example,
conflicts will arise in cases where different Clients invest in different parts of an issuer’s capital structure, including circumstances in which one or more Clients may own private securities or obligations of an issuer and other Clients may
own or seek to acquire private securities of the same issuer. For example, a Client may acquire a loan, loan participation or a loan assignment of a particular borrower in which one or more other Clients have an equity investment, or may invest in
senior debt obligations of an issuer for one Client and junior debt obligations or equity of the same issuer for another Client.
Conflicts potentially limiting the Fund’s investment opportunities may also arise when the Fund and other
PIMCO clients invest in different parts of an issuer’s capital structure, such as when the Fund owns senior debt obligations of an issuer and other clients own junior tranches of the same issuer. In such circumstances, decisions over whether to
trigger an event of default, over the terms of any workout, or how to exit an investment may result in conflicts of interest. In order to minimize such conflicts, a portfolio manager may avoid certain investment opportunities that would potentially
give rise to conflicts with other PIMCO clients or PIMCO may enact internal procedures designed to minimize such conflicts, which could have the effect of limiting the Fund’s investment opportunities. Additionally, if PIMCO acquires material non-public
confidential information in connection with its business activities for other clients, a portfolio manager may be restricted from purchasing securities or selling securities for the Fund.
Moreover, the Fund or other accounts managed by PIMCO may invest in a transaction in which one or more other funds or accounts managed by PIMCO are expected to participate, or already have made or will seek to make, an investment. Such funds or
accounts may have conflicting interests and objectives in connection with such investments, including, for example and without limitation, with respect to views on the operations or activities of the issuer involved, the targeted returns from the
investment, and the timeframe for, and method of, exiting the investment. Additionally, a fund or other account managed by PIMCO may take an investment position or action that may be different from, or inconsistent with, an investment position or
action taken by another fund or other account managed by PIMCO having similar or differing investment objectives. These positions and actions may adversely impact the Fund. For example, the Fund may buy a security and another fund or other account
managed by PIMCO may establish a short position in that same security or in another security issued by the same issuer. The subsequent short sale may result in a decrease in the price of the security that the first fund holds. When making investment
decisions where a conflict of interest may arise, PIMCO will endeavor to act in a fair and equitable manner as between the Fund and other clients; however, in certain instances the resolution of the conflict may result in PIMCO acting on behalf of
another client in a manner that may not be in the best interest, or may be opposed to the best interest, of the Fund.
In
each of the situations described above, PIMCO may take actions with respect to the assets held by one Client that are adverse to the other Clients, for example, by foreclosing on loans, by putting an issuer into default, or by exercising rights to
purchase or sell to an issuer, causing an issuer to take actions adverse to certain classes of securities, or otherwise. In negotiating the terms and conditions of any such investments, or any subsequent amendments or waivers or taking any other
actions, PIMCO may find that the interests of a Client and the interests of one or more other Clients could conflict. In these situations, decisions over items such as whether to make the investment or take an action, proxy voting, corporate
reorganization, how to exit an investment, or bankruptcy or similar matters (including, for example, whether to trigger an event of default or the terms of any workout) may result in conflicts of interest. Similarly, if an issuer in which a Client
and one or more other Clients directly or indirectly hold different classes of securities (or other assets, instruments or obligations issued by such issuer or underlying investments of such issuer) encounters financial problems, decisions over the
terms of any workout will raise conflicts of interests (including, for example, conflicts over proposed waivers and amendments to debt covenants). For example, a debt holder may be better served by a liquidation of the issuer in which it may be paid
in full, whereas an equity or junior bond holder might prefer a reorganization that holds the potential to create value for the equity holders. In some cases PIMCO may refrain from taking certain actions or making certain investments on behalf of
Clients in order to avoid or mitigate certain conflicts of interest or to prevent adverse regulatory or other effects on PIMCO, or may sell investments for certain Clients (in each case potentially disadvantaging the Clients on whose behalf the
actions are not taken, investments not made, or investments sold). In other cases, PIMCO may not refrain from taking actions or making investments on behalf of certain Clients that have the potential to disadvantage other Clients. In addition, PIMCO
may take actions or refrain from taking actions in order to mitigate legal risks to PIMCO or its affiliates or its Clients even if disadvantageous to a Client’s account. Moreover, a Client may invest in a transaction in which one or more other
Clients are expected to participate, or already have made or will seek to make, an investment.
Additionally, certain
conflicts may exist with respect to portfolio managers who make investment decisions on behalf of several different types of Clients. Such portfolio managers may have an incentive to allocate trades, time or resources to certain Clients, including
those Clients who pay higher investment management fees or that pay incentive fees or allocations, over other Clients. These conflicts may be heightened with respect to portfolio managers who are eligible to receive a performance allocation under
certain circumstances as part of their compensation.
From time to time, PIMCO personnel may come into possession of
material non-public information (“MNPI”) which, if disclosed, might affect an investor’s decision to buy, sell or hold a security. Should a PIMCO employee come into possession of MNPI with
respect to an issuer, he or she generally will be prohibited from communicating such information to, or using such information for the benefit of, Clients, which could limit the ability of Clients to buy, sell or hold certain investments, thereby
limiting the investment opportunities or exit strategies available to Clients. In addition, holdings in the securities or other instruments of an issuer by PIMCO or its affiliates may affect the ability of a Client to make certain acquisitions of or
enter into certain transactions with such issuer. PIMCO has no obligation or responsibility to disclose such information to, or use such information for the benefit of, any person (including Clients).
PIMCO maintains one or more restricted lists of companies whose securities are subject to certain trading prohibitions due to
PIMCO’s business activities. PIMCO may restrict trading in an issuer’s securities if the issuer is on a restricted list or if PIMCO has MNPI about that issuer. In some situations, PIMCO may restrict Clients from trading in a particular
issuer’s securities in order to allow PIMCO to receive MNPI on behalf of other Clients. A Client may be unable to buy or sell certain securities until the restriction is lifted, which could disadvantage the Client. PIMCO may also be
restricted from making (or divesting of) investments in respect of some Clients but not others. In some cases PIMCO may not initiate or recommend certain types of transactions, or may otherwise
restrict or limit its advice relating to certain securities if a security is restricted due to MNPI or if PIMCO is seeking to limit receipt of MNPI.
PIMCO may conduct litigation or engage in other legal actions on behalf of one or more Clients. In such cases, Clients may be
required to bear certain fees, costs, expenses and liabilities associated with the litigation. Other Clients that are or were investors in, or otherwise involved with, the subject investments may or may not (depending on the circumstances) be
parties to such litigation actions, with the result that certain Clients may participate in litigation actions in which not all Clients with similar investments may participate, and such nonparticipating Clients may benefit from the results of such
litigation actions without bearing or otherwise being subject to the associated fees, costs, expenses and liabilities. PIMCO, for example, typically does not pursue legal claims on behalf of its separate accounts. Furthermore, in certain situations,
litigation or other legal actions pursued by PIMCO on behalf of a Client may be brought against or be otherwise adverse to a portfolio company or other investment held by a Client.
The foregoing is not a complete list of conflicts to which PIMCO or Clients may be subject. PIMCO seeks to
review conflicts on a case-by-case basis as they arise. Any review will take into consideration the interests of the relevant Clients, the circumstances giving rise to
the conflict, applicable PIMCO policies and procedures, and applicable laws. Clients (and investors in Funds) should be aware that conflicts will not necessarily be resolved in favor of their interests and may in fact be resolved in a manner adverse
to their interests. PIMCO will attempt to resolve such matters fairly, but even so, matters may be resolved in favor of other Clients which pay PIMCO higher fees or performance fees or in which PIMCO or its affiliates have a significant proprietary
interest. There can be no assurance that any actual or potential conflicts of interest will not result in a particular Client or group of Clients receiving less favorable investment terms in or returns from certain investments than if such conflicts
of interest did not exist.
Performance Fees. A portfolio manager may advise certain accounts with respect
to which the advisory fee is based entirely or partially on performance. Performance fee arrangements may create a conflict of interest for the portfolio manager in that the portfolio manager may have an incentive to allocate the investment
opportunities that he or she believes might be the most profitable to such other accounts instead of allocating them to the Fund. PIMCO has adopted policies and procedures reasonably designed to allocate investment opportunities between the Fund and
certain pooled investment vehicles on a fair and equitable basis over time.
(a)(3)
As of December 31, 2018, the following explains the compensation structure of the individual who has
primary responsibility for day-to-day portfolio management of the Fund:
Portfolio Manager Compensation
PIMCO’s approach to compensation seeks to provide professionals with a Total Compensation Plan and process that is driven by PIMCO’s
mission and values. Key Principles on Compensation Philosophy include:
| |
• |
|
PIMCO’s pay practices are designed to attract and retain high performers; |
| |
• |
|
PIMCO’s pay philosophy embraces a corporate culture of rewarding strong performance, a strong work ethic and
meritocracy; |
| |
• |
|
PIMCO’s goal is to ensure key professionals are aligned to PIMCO’s long-term success through equity
participation; and |
| |
• |
|
PIMCO’s “Discern and Differentiate” discipline guides total compensation levels.
|
The Total Compensation Plan consists of three components. The compensation program for portfolio managers is designed
to align with clients’ interests, emphasizing each portfolio manager’s ability to generate long-term investment success for PIMCO’s clients. A portfolio manager’s compensation is not based solely on the performance of any Fund or
any other account managed by that portfolio manager:
Base Salary – Base salary is determined based on core job
responsibilities, positions/levels and market factors. Base salary levels are reviewed annually, when there is a significant change in job responsibilities or position, or a significant change in market levels.
Performance Bonus – Performance bonuses are designed to reward risk-adjusted
performance and contributions to PIMCO’s broader investment process. The compensation process is not formulaic and the following non-exhaustive list of qualitative and quantitative criteria are considered
when determining the total compensation for portfolio managers:
| |
• |
|
Performance measured over a variety of longer- and shorter-term periods, including
5-year, 4-year, 3-year, 2-year and 1-year
dollar-weighted and account-weighted, pre-tax total and risk-adjusted investment performance as judged against the applicable benchmarks (which may include internal investment performance-related benchmarks)
for each account managed by a portfolio manager (including the Funds) and relative to applicable industry peer groups; greatest emphasis is placed on 5-year and 3-year
performance, followed by 1-year performance; |
| |
• |
|
Consistency of investment performance across portfolios of similar mandate and guidelines, rewarding low
dispersion and consistency of outperformance; |
| |
• |
|
Appropriate risk positioning and risk management mindset which includes consistency with PIMCO’s investment
philosophy, the Investment Committee’s positioning guidance, absence of defaults, and appropriate alignment with client objectives; |
| |
• |
|
Contributions to mentoring, coaching and/or supervising members of team; |
| |
• |
|
Collaboration, idea generation, and contribution of investment ideas in the context of PIMCO’s investment
process, Investment Committee meetings, and day-to-day management of portfolios; |
| |
• |
|
With much lesser importance than the aforementioned factors: amount and nature of assets managed by the portfolio
manager, contributions to asset retention, and client satisfaction. |
PIMCO’s partnership culture further rewards
strong long term risk adjusted returns with promotion decisions almost entirely tied to long term contributions to the investment process. 10-year performance can also be considered, though not explicitly as
part of the compensation process.
Deferred Compensation – Long Term Incentive Plan (“LTIP”) and/or M Options
are awarded to key professionals. Employees who reach a total compensation threshold are delivered their annual compensation in a mix of cash and/or deferred compensation. PIMCO incorporates a progressive allocation of deferred compensation as a
percentage of total compensation, which is in line with market practices.
| |
• |
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The LTIP provides participants with deferred cash awards that appreciate or depreciate based on PIMCO’s
operating earnings over a rolling three-year period. The plan provides a link between longer term company performance and participant pay, further motivating participants to make a long term commitment to PIMCO’s success. |
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The M Unit program provides
mid-to-senior level employees with the potential to acquire an equity stake in PIMCO over their careers and to better align employee incentives with the Firm’s
long-term results. In the program, options are awarded and vest over a number of years and may convert into PIMCO equity which shares in the profit distributions of the Firm. M Units are non-voting common
equity of PIMCO and provide a mechanism for individuals to build a significant equity stake in PIMCO over time. |
Eligibility to participate in LTIP and the M Unit program is contingent upon continued employment at PIMCO and all other applicable
eligibility requirements.
Profit Sharing Plan. Portfolio managers who are
Managing Directors of PIMCO receive compensation from a non-qualified profit sharing plan consisting of a portion of PIMCO’s net profits. Portfolio managers who are Managing Directors receive an amount
determined by the Compensation Committee, based upon an individual’s overall contribution to the firm.
(a)(4)
The following summarizes the dollar range of securities of the Fund the Portfolio Manager beneficially owned
as of December 31, 2018:
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| Portfolio Manager
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Dollar Range of Equity Securities of the Fund Owned
as of December 31, 2018
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| David Hammer
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None |
| Item 9. |
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
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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. |
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(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. |
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(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. |
None.
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(a)(1) |
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Exhibit 99.CODE—Code of Ethics pursuant to Section 406 of the Sarbanes-Oxley Act of 2002. |
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(a)(2) |
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Exhibit 99.CERT—Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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(a)(3) |
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None. |
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(a)(4) |
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There was no change in the registrant’s independent public accountant for the period covered by the report. |
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(b) |
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Exhibit 99.906CERT—Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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.
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PIMCO Municipal Income Fund II |
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By: |
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/s/ Peter G. Strelow
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Peter G. Strelow |
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President (Principal Executive Officer) |
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Date: |
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February 28, 2019 |
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.
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By: |
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/s/ Peter G. Strelow
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Peter G. Strelow |
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President (Principal Executive Officer) |
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Date: |
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February 28, 2019 |
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By: |
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/s/ Trent W. Walker
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Trent W. Walker |
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Treasurer (Principal Financial & Accounting Officer) |
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Date: |
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February 28, 2019 |