OMB APPROVAL |
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OMB Number: 3235-0578 |
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Expires: April 30, 2010 |
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Estimated
average burden hours per response:
10.5 |
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Investment Company Act File Number: |
811-21188 | |
Registrant Name: |
PIMCO California Municipal Income Fund III | |
Address of Principal Executive Offices: |
1345 Avenue of the Americas, | |
New York, NY 10105 | ||
Name and Address of Agent for Service: |
Lawrence G. Altadonna | |
1345 Avenue of the Americas, | ||
New York, NY 10105 | ||
Registrants telephone number,
including area code: |
212-739-3371 | |
Date of Fiscal Year End: |
September 30, 2009 | |
Date of Reporting Period: |
December 31, 2008 |
Principal | ||||||||||
Amount | Credit Rating | |||||||||
(000) | (Moodys/S&P) | Value* | ||||||||
CALIFORNIA MUNICIPAL BONDS & NOTES82.0% | ||||||||||
Assoc. of Bay Area Govt Finance Auth. Rev., Odd Fellows Home (CA Mtg. Ins.), |
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$ | 3,200 | 5.20%, 11/15/22 |
NR/A+ | $ | 2,946,944 | |||||
11,725 | 5.35%, 11/15/32 |
NR/A+ | 9,880,071 | |||||||
1,000 | Cathedral City Public Financing Auth., Tax Allocation, 5.00%, 8/1/33, Ser. A (MBIA) |
Baa1/AA | 718,630 | |||||||
1,150 | Ceres Redev. Agcy., Tax Allocation, 5.00%, 11/1/33 (MBIA) |
Baa1/AA | 820,318 | |||||||
1,415 | Contra Costa Cnty. Public Financing Auth., Tax Allocation, 5.625%, 8/1/33, Ser. A |
NR/BBB | 1,125,222 | |||||||
3,775 | Cucamonga School Dist., CP, 5.20%, 6/1/27 |
NR/A- | 2,921,510 | |||||||
5,000 | Educational Facs. Auth. Rev., Pepperdine Univ., 5.00%, 9/1/33, Ser. A (FGIC) |
Aa3/AA | 4,501,600 | |||||||
Golden State Tobacco Securitization Corp. Rev., |
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4,000 | 5.00%, 6/1/45, Ser. A (FGIC-TCRS) |
A2/A | 2,677,520 | |||||||
9,500 | 5.00%, 6/1/45, Ser. A (AMBAC-TCRS) |
A2/A | 6,392,455 | |||||||
4,795 | 6.25%, 6/1/33, Ser. A-1 |
Aaa/AAA | 5,204,829 | |||||||
35,490 | 6.75%, 6/1/39, Ser. A-1, (Pre-refunded @ $100, 6/1/13) (b) |
NR/AAA | 41,273,450 | |||||||
Health Facs. Finance Auth. Rev., |
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6,000 | Cottage Health System, 5.00%, 11/1/33, Ser. B (MBIA) |
Baa1/AA | 4,603,080 | |||||||
Paradise VY Estates (CA Mtg. Ins.), |
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2,000 | 5.125%, 1/1/22 |
NR/A+ | 1,745,540 | |||||||
1,550 | 5.25%, 1/1/26 |
NR/A+ | 1,308,789 | |||||||
7,750 | Infrastructure & Economic Dev. Bank Rev., Bay Area Toll Bridges, 5.00%, 7/1/36,
(Pre-refunded @ $100, 1/1/28) (AMBAC) (b) |
Aaa/AAA | 8,653,030 | |||||||
Kaiser Assistance Corp., |
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3,000 | 5.50%, 8/1/31, Ser. B |
A2/A | 2,482,110 | |||||||
8,000 | 5.55%, 8/1/31, Ser. A |
NR/A+ | 6,880,880 | |||||||
20 | Lancaster Financing Auth., Tax Allocation, 4.75%, 2/1/34 (MBIA) |
Baa1/AA | 16,501 | |||||||
6,000 | Los Angeles Department of Water & Power Rev., 4.75%, 7/1/30, Ser. A-2 (FSA) (g) |
Aaa/AAA | 5,261,460 | |||||||
9,580 | Los Angeles Unified School Dist., GO, 4.75%, 1/1/28, Ser. A (MBIA) |
Aa3/AA | 8,639,915 | |||||||
5,280 | Modesto Irrigation Dist., CP, 5.00%, 7/1/33, Ser. A (MBIA) |
A2/AA | 4,552,997 | |||||||
5,000 | Oakland, GO, 5.00%, 1/15/33, Ser. A (MBIA) |
A1/AA | 4,309,550 | |||||||
5,000 | Orange Cnty. Unified School Dist., CP, 4.75%, 6/1/29 (MBIA) |
A1/AA | 4,335,800 | |||||||
5,525 | Orange Cnty. Water Dist. Rev., CP, 5.00%, 8/15/34, Ser. B (MBIA) |
Aa2/AA+ | 5,075,202 | |||||||
2,000 | Palm Desert Financing Auth., Tax Allocation, 5.00%, 4/1/25, Ser. A (MBIA) |
Baa1/AA | 1,542,460 | |||||||
1,410 | Pomona Public Financing Auth. Rev., 5.00%, 12/1/37, Ser. AF (MBIA) |
A3/AA | 1,107,146 | |||||||
1,950 | Poway Unified School Dist. Community Facs. Dist. No. 6, Special Tax, 5.125%, 9/1/28 |
NR/BBB | 1,272,063 | |||||||
5,000 | Riverside, CP, 5.00%, 9/1/33 (AMBAC) |
Baa1/A+ | 4,436,100 | |||||||
500 | Rocklin Unified School Dist. Community Facs., Special Tax, 5.00%, 9/1/29 (MBIA) |
Baa1/AA | 388,590 | |||||||
5,750 | Sacramento Muni Utility Dist. Rev., 5.00%, 8/15/33, Ser. R (MBIA) |
A1/AA | 5,065,060 | |||||||
6,250 | San Diego Cnty. Water Auth. Rev., CP, 5.00%, 5/1/38, Ser. A (FSA) |
Aa3/AAA | 5,892,375 | |||||||
12,075 | San Diego Community College Dist., GO, 5.00%, 5/1/28, Ser. A (FSA) |
Aa2/AAA | 11,696,086 | |||||||
1,500 | San Diego Univ. Foundation Auxiliary Organization Rev., 5.00%, 3/1/27, Ser. A (MBIA) |
Baa1/AA | 1,369,650 | |||||||
3,000 | San Jose, Libraries & Parks, GO, 5.125%, 9/1/31 |
Aa1/AAA | 2,958,270 | |||||||
13,200 | San Marcos Public Facs. Auth., Tax Allocation, 5.00%, 8/1/33, Ser. A (FGIC) |
A3/AA | 9,192,216 |
Principal | ||||||||||
Amount | Credit Rating | |||||||||
(000) | (Moodys/S&P) | Value* | ||||||||
$ | 4,425 | South Tahoe JT Powers Financing Auth. Rev., 5.45%, 10/1/33 |
NR/BBB | $ | 3,896,478 | |||||
4,095 | State Department Veteran Affairs Home Purchase Rev., 5.35%, 12/1/27, Ser. A (AMBAC) |
Aa2/AA- | 3,733,493 | |||||||
4,600 | State Public Works Board Lease Rev., Univ. CA M.I.N.D. Inst., 5.00%, 4/1/28, Ser. A |
Aa2/AA- | 4,381,132 | |||||||
265 | State, GO, 5.00%, 6/1/37 |
A1/A+ | 225,873 | |||||||
Statewide Community Dev. Auth. Rev., Catholic Healthcare West, |
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1,200 | 5.50%, 7/1/31, Ser. D |
A2/A | 1,032,312 | |||||||
1,200 | 5.50%, 7/1/31, Ser. E |
A2/A | 1,032,300 | |||||||
3,505 | Internext Group, CP, 5.375%, 4/1/30 |
NR/BBB | 2,067,039 | |||||||
7,300 | Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.) |
NR/A+ | 6,168,938 | |||||||
15,000 | Memorial Health Services, 5.50%, 10/1/33, Ser. A |
NR/A+ | 12,379,950 | |||||||
10,000 | Sutter Health, 5.50%, 8/15/34, Ser. B |
Aa3/AA- | 8,527,200 | |||||||
Tobacco Securitization Agcy. Rev., Alameda Cnty., |
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8,100 | 5.875%, 6/1/35 |
Baa3/NR | 4,884,057 | |||||||
7,000 | 6.00%, 6/1/42 |
Baa3/NR | 4,105,360 | |||||||
2,000 | Kern Cnty., 6.125%, 6/1/43, Ser. A |
NR/BBB | 1,194,540 | |||||||
5,000 | Tobacco Securitization Auth. of Southern California Rev., 5.00%, 6/1/37, Ser. A-1 |
Baa3/BBB | 2,492,150 | |||||||
2,950 | Torrance Medical Center Rev., 5.50%, 6/1/31, Ser. A |
A1/A+ | 2,511,542 | |||||||
1,000 | West Basin Municipal Water Dist. Rev., CP, 5.00%, 8/1/30, Ser. A (MBIA) |
Aa3/AA | 899,500 | |||||||
2,500 | William S. Hart Union High School Dist., Special Tax, 6.00%, 9/1/33 |
NR/NR | 1,710,625 | |||||||
2,750 | Woodland Finance Auth. Lease Rev., 5.00%, 3/1/32 (XLCA) |
A3/NR | 2,351,442 | |||||||
Total California Municipal Bonds & Notes (cost$270,419,028) |
244,841,350 | |||||||||
OTHER MUNICIPAL BONDS & NOTES4.5% | ||||||||||
Indiana1.0% |
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5,000 | Vigo Cnty. Hospital Auth. Rev., 5.70%, 9/1/37 (a)(c) |
NR/NR | 2,980,550 | |||||||
New York1.0% |
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3,300 | New York City Municipal Water Finance Auth. Rev., 5.00%, 6/15/37, Ser. D (g) |
Aa2/AAA | 3,095,499 | |||||||
Puerto Rico2.2% |
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Public Building Auth. Rev., Govt Facs., |
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4,420 | 5.00%, 7/1/36, Ser. I (GTD) |
Baa3/BBB- | 3,037,645 | |||||||
290 | 5.25%, 7/1/36, Ser. D |
Baa3/BBB- | 207,562 | |||||||
Sales Tax Financing Corp. Rev., Ser. A, |
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23,200 | zero coupon, 8/1/47 (AMBAC) |
A1/A+ | 1,412,416 | |||||||
29,200 | zero coupon, 8/1/54 (AMBAC) |
A1/A+ | 1,028,132 | |||||||
26,300 | zero coupon, 8/1/56 |
A1/A+ | 760,333 | |||||||
6,446,088 | ||||||||||
South Dakota0.3% |
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2,000 | Minnehaha Cnty. Health Facs. Rev., Bethany Lutheran, 5.50%, 12/1/35 |
NR/NR | 1,066,680 | |||||||
Total Other Municipal Bonds & Notes (cost$22,476,058) |
13,588,817 | |||||||||
Principal | ||||||||||
Amount | Credit Rating | |||||||||
(000) | (Moodys/S&P) | Value* | ||||||||
CORPORATE BONDS & NOTES1.3% | ||||||||||
$ | 3,700 | CIT Group, Inc., 5.80%, 7/28/11 (f) |
Baa1/BBB+ | $ | 3,100,441 | |||||
International
Lease Finance Corp., FRN, |
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500 | 2.373%, 5/24/10 |
Baa1/A- | 398,546 | |||||||
400 | 5.153%, 1/15/10 |
Baa1/A- | 301,775 | |||||||
Total Corporate Bonds & Notes (cost$3,405,018) |
3,800,762 | |||||||||
VARIABLE RATE NOTE (d)1.2% | ||||||||||
Puerto Rico1.2% |
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3,800 | Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A (cost$3,937,433) |
Ba1/BBB- | 3,579,866 | |||||||
SHORT-TERM INVESTMENTS11.0% | ||||||||||
California Variable Rate Demand Notes (d)(e)9.1% | ||||||||||
7,000 | Assoc. of Bay Area Govt Finance Auth. for Nonprofit Corps. Rev., Oshman Family Jewish Community, 0.85%, 1/2/09 |
VMIG1/NR | 7,000,000 | |||||||
3,500 | Infrastructure & Economic Dev. Bank Rev., Contemporary Jewish Museum, 0.85%, 1/2/09 |
VMIG1/NR | 3,500,000 | |||||||
4,200 | Sacramento Cnty. Sanitation Dist. Rev., 0.85%, 1/2/09, Ser. B |
VMIG1/A-1+ | 4,200,000 | |||||||
Southern California Public Power Auth. Rev., Ser. A, |
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8,800 | Mead Adelanto, 0.75%, 1/8/09 |
VMIG1/NR | 8,800,000 | |||||||
3,700 | Mead Phoenix, 0.75%, 1/8/09 |
VMIG1/NR | 3,700,000 | |||||||
Total
California Variable Rate Demand Notes (cost$27,200,000) |
27,200,000 | |||||||||
Corporate Bonds & Notes (f)1.9% | ||||||||||
American General Finance Corp., |
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1,300 | 4.403%,
10/2/09, FRN |
Baa1/BBB | 996,669 | |||||||
900 | 4.625%, 5/15/09 |
Baa1/BBB | 771,909 | |||||||
4,100 | CIT Group, Inc., 4.125%, 11/3/09 |
Baa1/BBB+ | 3,860,064 | |||||||
Total
Corporate Bonds & Notes (cost$5,480,217) |
5,628,642 | |||||||||
Total Short-Term Investments (cost$32,680,217) |
32,828,642 | |||||||||
Total Investments (cost$332,917,754)100.0% |
$ | 298,639,437 | ||||||||
Notes to Schedule of Investments: | ||
* | Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services. | |
Portfolio securities and other financial instruments for which market quotations are not readily available or if a
development/event occurs that may significantly impact the value of a
security, are fair-valued, in good faith, pursuant to procedures established by the Board of Trustees, or persons acting at their discretion pursuant to procedures established
by the Board of Trustees. The Funds investments are valued daily using prices supplied by an independent pricing service
or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the
last quoted mean price for those securities for which the over-the-counter market is the primary market or for listed
securities in which there were no sales. Prices obtained from independent pricing services use information provided by
market makers or estimates of market values obtained from yield data relating to investments or securities with similar
characteristics. Short-term securities maturing in 60 days or less are valued at amortized cost,
if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the
original term to maturity exceeded 60 days. The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold and these differences could be material. The Funds net asset value is normally determined daily as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open for business. |
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(a) | Private PlacementRestricted as to resale and may not have a readily available market. Securities with an aggregate value of $2,980,550, representing 1.0% of total investments. | |
(b) | Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). | |
(c) | 144A SecuritySecurity exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid. | |
(d) | Variable Rate NotesInstruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on December 31, 2008. | |
(e) | Maturity date shown is date of next put. | |
(f) | All or partial amount segregated as collateral for reverse repurchase agreements. | |
(g) | Residual Interest Bonds held in TrustSecurities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction. |
Counterparty | Rate | Trade Date | Maturity Date | Principal & Interest | Principal | |||||||||||
Barclays Bank |
1.65 | % | 12/24/08 | 1/29/09 | $1,847,254 | $1,847,000 | ||||||||||
1.75 | % | 12/23/08 | 1/26/09 | 5,073,479 | 5,072,000 | |||||||||||
$6,919,000 | ||||||||||||||||
Market | ||||||||||||||||
Counterparty | Description | Rate | Maturity Date | Principal | Value | |||||||||||
Barclays Bank | American General Finance Corp. |
4.403 | % | 10/2/09 | $ | 1,300,000 | $996,669 | |||||||||
American General Finance Corp. |
4.625 | % | 5/15/09 | 900,000 | 771,909 | |||||||||||
CIT Group, Inc. |
4.125 | % | 11/3/09 | 4,100,000 | 3,860,064 | |||||||||||
CIT Group, Inc. |
5.80 | % | 7/28/11 | 3,700,000 | 3,100,441 | |||||||||||
$ | 8,729,083 | |||||||||||||||
| Level 1 quoted prices in active markets for identical investments that the Fund has the ability to access | ||
| Level 2 valuations based on other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) or quotes from inactive exchanges | ||
| Level 3 valuations based on significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments) |
Investments in | ||||
Valuation Inputs | Securities | |||
Level 1 - Quoted Prices |
$ | |||
Level 2 - Other Significant Observable Inputs |
298,639,437 | |||
Level 3 - Significant Unobservable Inputs |
| |||
Total |
$ | 298,639,437 | ||