N-CSRS
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: 811-21077
PIMCO California 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: June 30, 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
Semiannual
Report
June 30, 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
PIMCO New
York Municipal Income Fund III | PYN | NYSE
Table of Contents
Letter from the Chairman of the Board & President
Dear Shareholder,
Following is the PIMCO Closed-End Funds
Semiannual Report, which covers the six-month reporting period ended June 30, 2018. On the subsequent pages you will find specific details regarding investment results and a discussion of factors that
most affected performance over the reporting period.
For the six-month reporting period ended June 30, 2018
The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (GDP) expanded at a revised annual pace of 2.3%
and 2.2% during the fourth quarter of 2017 and first quarter of 2018, respectively. The Commerce Department’s initial reading — released after the reporting period had ended — showed that second-quarter 2018 GDP grew at an annual pace
of 4.1%.
The Federal Reserve (Fed) continued to normalize monetary
policy during the reporting period. After raising interest rates three times in 2017, the Fed again raised rates at its March 2018 meeting, pushing the federal funds rate to a range between 1.50% and 1.75%. Finally, at its meeting that concluded on
June 13, 2018, the Fed raised rates to a range between 1.75% and 2.00%.
Economic activity outside the U.S. moderated somewhat during the reporting period. Against this backdrop, the European Central Bank (ECB), the Bank of Japan and the Bank of England largely maintained their
highly accommodative monetary policies. Other central banks took a more hawkish stance, including the Bank of Canada, as it raised rates in January 2018. Meanwhile, in June 2018, the ECB indicated that it plans to end its quantitative easing program
by the end of the year, but it did 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 their longer-term counterparts. The increase in
rates at the short end of the yield curve was mostly due to Fed interest rate hikes. The yield on the benchmark 10-year U.S. Treasury note was 2.85% 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 -1.08% over the six months ended June 30, 2018. Meanwhile the Bloomberg Barclays U.S. Aggregate
Bond Index, a widely used index of U.S. investment grade bonds, returned -1.62% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated
mixed results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index gained 0.08% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -5.23% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned
-6.44% over the period.
The
municipal (or “muni”) market produced choppy results during the reporting period. After declining over the first two months, the muni market posted positive returns during three of the last four months of the reporting period. While munis
were negatively impacted by rising interest rates, their losses were tempered by overall positive investor demand and moderating supply. All told, the Bloomberg Barclays Municipal Bond Index returned -0.25%
during the six months ended June 30, 2018.
Thank you for the assets you have placed with us. We deeply value your trust, and 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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| Hans W. Kertess |
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Peter G. Strelow |
| Chairman of the Board of Trustees |
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President |
Past performance is no guarantee
of future results.
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SEMIANNUAL REPORT |
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JUNE 30, 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. As such, bond funds may currently face an increased exposure to the risks associated with a rising interest rate environment. This is especially true as the Fed ended its quantitative easing program in October 2014 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.
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 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
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SEMIANNUAL REPORT |
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JUNE 30, 2018 |
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Important Information About the Funds (Cont.)
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.
Municipal obligations issued by
the Commonwealth of Puerto Rico or its political subdivisions, agencies, instrumentalities, or public corporations may be affected by economic, market, political, and social conditions in Puerto Rico. Puerto Rico currently is experiencing
significant fiscal and economic challenges, including substantial debt service obligations, high levels of unemployment, underfunded public retirement systems, the severe impact of two hurricanes, and persistent government budget deficits. These
challenges may negatively affect the value of a Fund’s investments in Puerto Rico municipal securities. Major ratings agencies have downgraded the general obligation debt of Puerto Rico to below investment grade and continue to maintain a
negative outlook for this debt, which increases the likelihood that the rating will be lowered further. In both August 2015 and January 2016, Puerto Rico defaulted on its debt by failing to make full payment due on its outstanding
bonds, and there can be no assurance that Puerto Rico will be able to satisfy its future debt obligations. Further downgrades or defaults may place additional strain on the Puerto Rico economy
and may negatively affect the value, liquidity, and volatility of the Fund’s investments in Puerto Rico municipal securities. Legislation, including legislation that would allow Puerto Rico to restructure its municipal debt obligations, thus
increasing the risk that Puerto Rico may never pay off municipal indebtedness, or may pay only a small fraction of the amount owed, could also impact the value of a Fund’s investments in Puerto Rico municipal securities.
These challenges and uncertainties have been exacerbated by
Hurricane Maria and the resulting natural disaster in Puerto Rico. In September 2017, Hurricane Maria struck Puerto Rico, causing major damage across the Commonwealth, including damage to its water, power, and telecommunications infrastructure. The
length of time needed to rebuild Puerto Rico’s infrastructure is unclear, but could amount to years, during which the Commonwealth is likely to be in an uncertain economic state. The full extent of the natural disaster’s impact on Puerto
Rico’s economy and foreign investment in Puerto Rico is difficult to estimate.
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 management investment companies frequently trade at a discount from their net asset value.
The common shares of a Fund may trade at a price that is less
than the initial offering price and/or the net asset value 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 |
| PIMCO New York Municipal Income Fund III |
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10/31/02 |
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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
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Important Information About the Funds (Cont.)
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 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
(844-337-4626), 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 may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., and is available without charge, upon request by calling the Funds at (844) 33-PIMCO (844-337-4626) and on the Funds’ website at www.pimco.com.
Updated portfolio holdings information about a Fund will be available at www.pimco.com approximately 15 calendar days after such Fund’s
most recent fiscal quarter end, and will remain accessible until such Fund files
a Form N-Q or a shareholder report for the period which includes the date of the information. Information on the operation of the Public Reference Room may
be obtained by calling 1-800-SEC-0330.
The SEC adopted a rule that generally allows funds 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. PIMCO is evaluating how to make the electronic delivery option
available to shareholders in the future.
PIMCO Municipal Income Fund
Allocation Breakdown as of 06/30/2018†§
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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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|
8.3% |
|
| Ad Valorem Property Tax |
|
|
7.9% |
|
| Natural Gas Revenue |
|
|
6.2% |
|
| Miscellaneous Revenue |
|
|
6.1% |
|
| Tobacco Settlement Funded |
|
|
6.0% |
|
| Electric Power & Light Revenue |
|
|
4.3% |
|
| College & University Revenue |
|
|
4.3% |
|
| Water Revenue |
|
|
3.8% |
|
| Industrial Revenue |
|
|
3.6% |
|
| Sales Tax Revenue |
|
|
3.5% |
|
| Special Assessment |
|
|
3.3% |
|
| Port, Airport & Marina Revenue |
|
|
2.9% |
|
| Miscellaneous Taxes |
|
|
2.7% |
|
| Sewer Revenue |
|
|
2.6% |
|
| General Fund |
|
|
2.3% |
|
| Income Tax Revenue |
|
|
2.2% |
|
| Appropriations |
|
|
1.5% |
|
| Nuclear Revenue |
|
|
1.1% |
|
| Other |
|
|
2.7% |
|
| 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 June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$13.17 |
|
| NAV |
|
|
$12.59 |
|
| Premium/(Discount) to NAV |
|
|
4.61% |
|
| Market Price Distribution Rate(2) |
|
|
5.44% |
|
| NAV Distribution Rate(2) |
|
|
5.69% |
|
| Total Effective
Leverage(3) |
|
|
47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/29/01) |
|
| Market Price |
|
|
4.22% |
|
|
|
1.95% |
|
|
|
7.49% |
|
|
|
5.49% |
|
|
|
6.25% |
|
| NAV |
|
|
0.65% |
|
|
|
3.81% |
|
|
|
7.90% |
|
|
|
7.94% |
|
|
|
6.82% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844)
33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase
or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of
distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 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:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market. |
| » |
|
Select exposure to the special tax sector contributed to performance. |
| » |
|
Exposure to the healthcare sector contributed to performance, as the sector outperformed the general municipal market. |
| » |
|
Exposure to the electric utility sector detracted from performance, as the sector underperformed the general municipal market.
|
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
9 |
PIMCO Municipal Income Fund II
Allocation Breakdown as of 06/30/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
22.3% |
|
| Highway Revenue Tolls |
|
|
8.4% |
|
| Tobacco Settlement Funded |
|
|
7.7% |
|
| Ad Valorem Property Tax |
|
|
7.7% |
|
| Natural Gas Revenue |
|
|
6.1% |
|
| Industrial Revenue |
|
|
5.0% |
|
| Electric Power & Light Revenue |
|
|
4.8% |
|
| College & University Revenue |
|
|
4.7% |
|
| Miscellaneous Taxes |
|
|
4.4% |
|
| Water Revenue |
|
|
4.3% |
|
| Sewer Revenue |
|
|
3.5% |
|
| Sales Tax Revenue |
|
|
3.3% |
|
| Miscellaneous Revenue |
|
|
3.3% |
|
| Lease (Appropriation) |
|
|
2.8% |
|
| Income Tax Revenue |
|
|
2.0% |
|
| General Fund |
|
|
1.9% |
|
| Appropriations |
|
|
1.3% |
|
| Port, Airport & Marina Revenue |
|
|
1.1% |
|
| Transit Revenue |
|
|
1.0% |
|
| Other |
|
|
4.3% |
|
| 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 June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$13.09 |
|
| NAV |
|
|
$11.84 |
|
| Premium/(Discount) to NAV |
|
|
10.56% |
|
| Market Price Distribution Rate(2) |
|
|
5.96% |
|
| NAV Distribution Rate(2) |
|
|
6.59% |
|
| Total Effective
Leverage(3) |
|
|
48% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
|
|
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/28/02) |
|
| Market Price |
|
|
2.55% |
|
|
|
6.09% |
|
|
|
9.07% |
|
|
|
6.90% |
|
|
|
6.02% |
|
| NAV |
|
|
0.89% |
|
|
|
3.91% |
|
|
|
7.63% |
|
|
|
6.01% |
|
|
|
5.70% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via
(844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the
purchase or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition
of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 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:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market. |
| » |
|
Select exposure to the special tax sector contributed to performance. |
| » |
|
Select exposure to the pre-refunded sector contributed to performance. |
| » |
|
Exposure to the electric utility sector detracted from performance, as the sector underperformed the general municipal market.
|
|
|
|
|
|
|
|
|
|
| 10 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
PIMCO Municipal Income Fund III
Allocation Breakdown as of 06/30/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
21.1% |
|
| Tobacco Settlement Funded |
|
|
9.0% |
|
| Highway Revenue Tolls |
|
|
6.8% |
|
| Natural Gas Revenue |
|
|
5.9% |
|
| Ad Valorem Property Tax |
|
|
5.8% |
|
| College & University Revenue |
|
|
5.8% |
|
| Water Revenue |
|
|
5.4% |
|
| Electric Power & Light Revenue |
|
|
4.0% |
|
| Sewer Revenue |
|
|
3.7% |
|
| General Fund |
|
|
3.5% |
|
| Industrial Revenue |
|
|
3.2% |
|
| Recreational Revenue |
|
|
3.2% |
|
| Sales Tax Revenue |
|
|
2.9% |
|
| Income Tax Revenue |
|
|
2.8% |
|
| Miscellaneous Revenue |
|
|
2.7% |
|
| Appropriations |
|
|
2.0% |
|
| Lease (Appropriation) |
|
|
1.9% |
|
| Port, Airport & Marina Revenue |
|
|
1.5% |
|
| Water Revenue |
|
|
1.5% |
|
| Transit Revenue |
|
|
1.3% |
|
| Nuclear Revenue |
|
|
1.1% |
|
| Other |
|
|
3.8% |
|
| Short-Term Instruments |
|
|
1.1% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of Investments exclude securities sold short and financial derivative instruments, if any.
|
Fund Information (as of June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$11.56 |
|
| NAV |
|
|
$10.79 |
|
| Premium/(Discount) to NAV |
|
|
7.14% |
|
| Market Price Distribution Rate(2) |
|
|
5.79% |
|
| NAV Distribution Rate(2) |
|
|
6.20% |
|
| Total Effective
Leverage(3) |
|
|
48% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
|
|
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(10/31/02) |
|
| Market Price |
|
|
2.94% |
|
|
|
4.77% |
|
|
|
8.05% |
|
|
|
5.74% |
|
|
|
5.47% |
|
| NAV |
|
|
0.63% |
|
|
|
4.10% |
|
|
|
8.68% |
|
|
|
5.85% |
|
|
|
5.54% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via
(844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the
purchase or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition
of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 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:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market. |
| » |
|
Exposure to the industrial revenue sector contributed to performance, as the sector outperformed the general municipal market.
|
| » |
|
Exposure to the electric utility sector detracted from performance, as the sector underperformed the general municipal market.
|
| » |
|
A modest allocation to U.S. Virgin Islands — domiciled securities contributed to performance. |
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
11 |
PIMCO California Municipal Income Fund
Allocation Breakdown as of 06/30/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
23.2% |
|
| Ad Valorem Property Tax |
|
|
20.3% |
|
| Tobacco Settlement Funded |
|
|
10.2% |
|
| College & University Revenue |
|
|
10.0% |
|
| Electric Power & Light Revenue |
|
|
8.2% |
|
| Lease (Abatement) |
|
|
7.3% |
|
| Natural Gas Revenue |
|
|
5.4% |
|
| Water Revenue |
|
|
4.1% |
|
| Local or Guaranteed Housing |
|
|
3.0% |
|
| Transit Revenue |
|
|
2.9% |
|
| Port, Airport & Marina Revenue |
|
|
1.0% |
|
| Special Assessment |
|
|
1.0% |
|
| Other |
|
|
3.4% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.
|
Fund Information (as of June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$16.96 |
|
| NAV |
|
|
$13.66 |
|
| Premium/(Discount) to NAV |
|
|
24.16% |
|
| Market Price Distribution Rate(2) |
|
|
5.45% |
|
| NAV Distribution Rate(2) |
|
|
6.76% |
|
| Total Effective
Leverage(3) |
|
|
51% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
|
|
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement of Operations (06/29/01) |
|
| Market Price |
|
|
1.25% |
|
|
|
6.37% |
|
|
|
10.42% |
|
|
|
8.21% |
|
|
|
7.51% |
|
| NAV |
|
|
(0.50)% |
|
|
|
2.85% |
|
|
|
7.37% |
|
|
|
7.55% |
|
|
|
6.70% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via
(844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the
purchase or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition
of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 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:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
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. |
| » |
|
Select exposure to the pre-refunded sector contributed to performance. |
| » |
|
Select exposure to the healthcare sector detracted from performance. |
|
|
|
|
|
|
|
|
|
| 12 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
PIMCO California Municipal Income Fund II
Allocation Breakdown as of 06/30/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
| Ad Valorem Property Tax |
|
|
22.5% |
|
| Health, Hospital & Nursing Home Revenue |
|
|
19.7% |
|
| College & University Revenue |
|
|
10.0% |
|
| Tobacco Settlement Funded |
|
|
9.3% |
|
| Electric Power & Light Revenue |
|
|
8.7% |
|
| Natural Gas Revenue |
|
|
7.2% |
|
| Tax Increment/Allocation Revenue |
|
|
4.6% |
|
| General Fund |
|
|
3.0% |
|
| Lease (Abatement) |
|
|
2.7% |
|
| Local or Guaranteed Housing |
|
|
2.5% |
|
| Port, Airport & Marina Revenue |
|
|
2.1% |
|
| Water Revenue |
|
|
1.5% |
|
| Highway Revenue Tolls |
|
|
1.5% |
|
| Special Tax |
|
|
1.3% |
|
| Special Assessment |
|
|
1.0% |
|
| Other |
|
|
2.3% |
|
| 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 June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$8.30 |
|
| NAV |
|
|
$8.42 |
|
| Premium/(Discount) to NAV |
|
|
(1.43)% |
|
| Market Price Distribution Rate(2) |
|
|
5.06% |
|
| NAV Distribution Rate(2) |
|
|
4.99% |
|
| Total Effective
Leverage(3) |
|
|
46% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
|
|
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/28/02) |
|
| Market Price |
|
|
(16.30)% |
|
|
|
(13.73)% |
|
|
|
3.25% |
|
|
|
2.61% |
|
|
|
3.46% |
|
| NAV |
|
|
(0.66)% |
|
|
|
3.11% |
|
|
|
8.25% |
|
|
|
4.33% |
|
|
|
4.35% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844)
33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase
or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of
distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 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:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market. |
| » |
|
Select exposure to the special tax sector contributed to performance. |
| » |
|
Exposure to the education sector detracted from performance, as the sector underperformed the general municipal market. |
| » |
|
Select exposure to the healthcare sector detracted from performance. |
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
13 |
PIMCO California Municipal Income Fund III
Allocation Breakdown as of 06/30/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
| Health, Hospital & Nursing Home Revenue |
|
|
25.4% |
|
| Ad Valorem Property Tax |
|
|
20.8% |
|
| College & University Revenue |
|
|
13.3% |
|
| Tobacco Settlement Funded |
|
|
9.2% |
|
| Electric Power & Light Revenue |
|
|
7.2% |
|
| Natural Gas Revenue |
|
|
4.5% |
|
| Water Revenue |
|
|
3.3% |
|
| Sales Tax Revenue |
|
|
2.9% |
|
| Highway Revenue Tolls |
|
|
2.6% |
|
| Lease (Abatement) |
|
|
1.9% |
|
| General Fund |
|
|
1.7% |
|
| Special Tax |
|
|
1.5% |
|
| Charter School Aid |
|
|
1.3% |
|
| Sewer Revenue |
|
|
1.2% |
|
| Other |
|
|
3.2% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.
|
Fund Information (as of June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$10.37 |
|
| NAV |
|
|
$9.63 |
|
| Premium/(Discount) to NAV |
|
|
7.68% |
|
| Market Price Distribution Rate(2) |
|
|
5.21% |
|
| NAV Distribution Rate(2) |
|
|
5.61% |
|
| Total Effective
Leverage(3) |
|
|
50% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
|
|
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(10/31/02) |
|
| Market Price |
|
|
2.13% |
|
|
|
(12.97)% |
|
|
|
7.28% |
|
|
|
5.20% |
|
|
|
4.53% |
|
| NAV |
|
|
(0.77)% |
|
|
|
3.20% |
|
|
|
7.62% |
|
|
|
4.49% |
|
|
|
4.53% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via
(844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the
purchase or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition
of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 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:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market. |
| » |
|
Select exposure to the pre-refunded sector contributed to performance. |
| » |
|
Select exposure to the healthcare sector detracted from performance. |
| » |
|
Exposure to the water and sewer sector detracted from performance, as the sector underperformed the general municipal market.
|
|
|
|
|
|
|
|
|
|
| 14 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
PIMCO New York Municipal Income Fund
Allocation Breakdown as of 06/30/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
| College & University Revenue |
|
|
11.2% |
|
| Health, Hospital & Nursing Home Revenue |
|
|
10.2% |
|
| Industrial Revenue |
|
|
10.2% |
|
| Ad Valorem Property Tax |
|
|
9.6% |
|
| Tobacco Settlement Funded |
|
|
8.6% |
|
| Highway Revenue Tolls |
|
|
8.4% |
|
| Miscellaneous Revenue |
|
|
8.3% |
|
| Transit Revenue |
|
|
8.1% |
|
| Water Revenue |
|
|
5.3% |
|
| Income Tax Revenue |
|
|
5.2% |
|
| Miscellaneous Taxes |
|
|
4.6% |
|
| Electric Power & Light Revenue |
|
|
3.5% |
|
| Port, Airport & Marina Revenue |
|
|
3.0% |
|
| Recreational Revenue |
|
|
2.0% |
|
| Other |
|
|
1.5% |
|
| Short-Term Instruments |
|
|
0.3% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.
|
Fund Information (as of June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$12.39 |
|
| NAV |
|
|
$11.65 |
|
| Premium/(Discount) to NAV |
|
|
6.35% |
|
| Market Price Distribution Rate(2) |
|
|
5.52% |
|
| NAV Distribution Rate(2) |
|
|
5.87% |
|
| Total Effective
Leverage(3) |
|
|
46% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
|
|
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement of Operations (06/29/01) |
|
| Market Price |
|
|
(0.18)% |
|
|
|
0.10% |
|
|
|
8.91% |
|
|
|
6.05% |
|
|
|
5.14% |
|
| NAV |
|
|
(0.53)% |
|
|
|
1.72% |
|
|
|
7.66% |
|
|
|
5.64% |
|
|
|
5.08% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via
(844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the
purchase or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition
of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 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:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
Exposure to the tobacco sector 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. |
| » |
|
Select exposure to the pre-refunded sector contributed to performance. |
| » |
|
Exposure to the transportation sector detracted from performance, as the sector underperformed the general municipal market.
|
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
15 |
PIMCO New York Municipal Income Fund II
Allocation Breakdown as of 06/30/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
| College & University Revenue |
|
|
12.3% |
|
| Health, Hospital & Nursing Home Revenue |
|
|
10.1% |
|
| Tobacco Settlement Funded |
|
|
9.0% |
|
| Highway Revenue Tolls |
|
|
7.7% |
|
| Income Tax Revenue |
|
|
7.0% |
|
| Miscellaneous Revenue |
|
|
6.6% |
|
| Industrial Revenue |
|
|
6.0% |
|
| Ad Valorem Property Tax |
|
|
5.9% |
|
| Transit Revenue |
|
|
5.3% |
|
| Water Revenue |
|
|
5.2% |
|
| Port, Airport & Marina Revenue |
|
|
5.0% |
|
| Miscellaneous Taxes |
|
|
4.2% |
|
| Lease (Abatement) |
|
|
4.0% |
|
| Electric Power & Light Revenue |
|
|
3.6% |
|
| Recreational Revenue |
|
|
3.3% |
|
| Local or Guaranteed Housing |
|
|
1.3% |
|
| Other |
|
|
2.3% |
|
| Short-Term Instruments |
|
|
1.2% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.
|
Fund Information (as of June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$10.59 |
|
| NAV |
|
|
$10.79 |
|
| Premium/(Discount) to NAV |
|
|
(1.85)% |
|
| Market Price Distribution Rate(2) |
|
|
5.74% |
|
| NAV Distribution Rate(2) |
|
|
5.64% |
|
| Total Effective
Leverage(3) |
|
|
49% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
|
|
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(06/28/02) |
|
| Market Price |
|
|
(9.22)% |
|
|
|
(4.32)% |
|
|
|
5.00% |
|
|
|
4.08% |
|
|
|
4.53% |
|
| NAV |
|
|
(0.65)% |
|
|
|
1.72% |
|
|
|
7.87% |
|
|
|
5.24% |
|
|
|
5.12% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via (844)
33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase
or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of
distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 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:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market. |
| » |
|
Select exposure to the lease-backed sector detracted from performance. |
| » |
|
Exposure to the transportation sector detracted from performance, as the sector underperformed the general municipal market.
|
| » |
|
A modest allocation to U.S. Virgin Islands — domiciled securities contributed to performance. |
|
|
|
|
|
|
|
|
|
| 16 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
PIMCO New York Municipal Income Fund III
Allocation Breakdown as of 06/30/2018†§
|
|
|
|
|
| Municipal Bonds & Notes |
|
|
|
|
| Income Tax Revenue |
|
|
13.3% |
|
| Industrial Revenue |
|
|
12.3% |
|
| Tobacco Settlement Funded |
|
|
9.9% |
|
| Ad Valorem Property Tax |
|
|
8.9% |
|
| Water Revenue |
|
|
8.2% |
|
| College & University Revenue |
|
|
7.3% |
|
| Transit Revenue |
|
|
6.9% |
|
| Highway Revenue Tolls |
|
|
6.3% |
|
| Health, Hospital & Nursing Home Revenue |
|
|
6.1% |
|
| Miscellaneous Taxes |
|
|
4.3% |
|
| Port, Airport & Marina Revenue |
|
|
3.4% |
|
| Recreational Revenue |
|
|
3.3% |
|
| Miscellaneous Revenue |
|
|
2.7% |
|
| Electric Power & Light Revenue |
|
|
2.6% |
|
| Local or Guaranteed Housing |
|
|
1.5% |
|
| Other |
|
|
1.6% |
|
| Short-Term Instruments |
|
|
1.4% |
|
| |
† |
% of Investments, at value. |
| |
§ |
Allocation Breakdown and % of Investments exclude securities sold short and financial derivative instruments, if any.
|
Fund Information (as of June 30, 2018)(1)
|
|
|
|
|
| Market Price |
|
|
$9.13 |
|
| NAV |
|
|
$8.96 |
|
| Premium/(Discount) to NAV |
|
|
1.90% |
|
| Market Price Distribution Rate(2) |
|
|
5.55% |
|
| NAV Distribution Rate(2) |
|
|
5.66% |
|
| Total Effective
Leverage(3) |
|
|
51% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Annual Total Return(1) for the period ended June 30, 2018 |
|
|
|
|
| |
|
6 Month* |
|
|
1 Year |
|
|
5 Year |
|
|
10 Year |
|
|
Commencement
of Operations
(10/31/02) |
|
| Market Price |
|
|
(5.31)% |
|
|
|
(1.65)% |
|
|
|
5.63% |
|
|
|
3.42% |
|
|
|
3.23% |
|
| NAV |
|
|
(0.58)% |
|
|
|
1.72% |
|
|
|
7.15% |
|
|
|
2.60% |
|
|
|
3.45% |
|
All Fund returns are net of
fees and expenses.
* Cumulative return
| (1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current
performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale
of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. Performance current to the most recent month-end is available at www.pimco.com or via
(844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the
purchase or sale of Fund shares. |
| (2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or
Market Price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in the Fund. Because the distribution rate may include a ROC,
it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the
Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition
of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 preferred
shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in
other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of
total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage).
|
Investment Objective and Strategy
Overview
PIMCO New York Municipal Income Fund III’s investment
objective is to seek to provide current income exempt from federal, New York State and New York City income tax.
Fund Insights at NAV
The following affected performance during the reporting period:
| » |
|
The Fund’s duration exposure detracted from performance, as municipal yields moved higher. |
| » |
|
Exposure to the tobacco sector contributed to performance, as the sector outperformed the general municipal market. |
| » |
|
Select exposure to the pre-refunded sector contributed to performance. |
| » |
|
Exposure to the transportation sector detracted from performance, as the sector underperformed the general municipal market.
|
| » |
|
A modest allocation to U.S. Virgin Islands — domiciled securities contributed to performance. |
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
17 |
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Investment Operations |
|
|
|
|
|
Less Distributions to Preferred
Shareholders(b) |
|
|
|
|
|
Less Distributions to Common Shareholders(b) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
12.87 |
|
|
$ |
0.45 |
|
|
$ |
(0.29 |
) |
|
|
|
|
|
$ |
(0.08 |
) |
|
$ |
0.00 |
|
|
$ |
0.08 |
|
|
$ |
(0.36 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.36 |
) |
| 12/31/2017 |
|
|
12.44 |
|
|
|
0.91 |
|
|
|
0.36 |
|
|
|
|
|
|
|
(0.10 |
) |
|
|
0.00 |
|
|
|
1.17 |
|
|
|
(0.74 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.74 |
) |
| 12/31/2016 |
|
|
13.26 |
|
|
|
0.90 |
|
|
|
(0.68 |
) |
|
|
|
|
|
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.16 |
|
|
|
(0.98 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.98 |
) |
| 05/01/2015 -
12/31/2015(f) |
|
|
13.15 |
|
|
|
0.65 |
|
|
|
0.12 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.76 |
|
|
|
(0.65 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.65 |
)(i) |
| 04/30/2015 |
|
|
12.57 |
|
|
|
0.93 |
|
|
|
0.64 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.56 |
|
|
|
(0.98 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.98 |
) |
| 04/30/2014 |
|
|
13.75 |
|
|
|
0.94 |
|
|
|
(1.13 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
(0.20 |
) |
|
|
(0.98 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.98 |
) |
| 04/30/2013 |
|
|
12.93 |
|
|
|
0.95 |
|
|
|
0.87 |
|
|
|
|
|
|
|
(0.02 |
) |
|
|
0.00 |
|
|
|
1.80 |
|
|
|
(0.98 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.98 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
12.13 |
|
|
$ |
0.40 |
|
|
$ |
(0.24 |
) |
|
|
|
|
|
$ |
(0.06 |
) |
|
$ |
0.00 |
|
|
$ |
0.10 |
|
|
$ |
(0.39 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.39 |
) |
| 12/31/2017 |
|
|
11.81 |
|
|
|
0.81 |
|
|
|
0.37 |
|
|
|
|
|
|
|
(0.08 |
) |
|
|
0.00 |
|
|
|
1.10 |
|
|
|
(0.78 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.78 |
) |
| 12/31/2016 |
|
|
12.39 |
|
|
|
0.79 |
|
|
|
(0.55 |
) |
|
|
|
|
|
|
(0.04 |
) |
|
|
0.00 |
|
|
|
0.20 |
|
|
|
(0.78 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.78 |
) |
| 06/01/2015 -
12/31/2015(g) |
|
|
12.11 |
|
|
|
0.47 |
|
|
|
0.28 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.74 |
|
|
|
(0.46 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.46 |
)(i) |
| 05/31/2015 |
|
|
11.94 |
|
|
|
0.81 |
|
|
|
0.15 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.95 |
|
|
|
(0.78 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.78 |
) |
| 05/31/2014 |
|
|
12.17 |
|
|
|
0.81 |
|
|
|
(0.25 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.55 |
|
|
|
(0.78 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.78 |
) |
| 05/31/2013 |
|
|
11.91 |
|
|
|
0.82 |
|
|
|
0.23 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.04 |
|
|
|
(0.78 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.78 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
11.06 |
|
|
$ |
0.37 |
|
|
$ |
(0.25 |
) |
|
|
|
|
|
$ |
(0.06 |
) |
|
$ |
0.00 |
|
|
$ |
0.06 |
|
|
$ |
(0.33 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.33 |
) |
| 12/31/2017 |
|
|
10.67 |
|
|
|
0.77 |
|
|
|
0.38 |
|
|
|
|
|
|
|
(0.08 |
) |
|
|
0.00 |
|
|
|
1.07 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
| 12/31/2016 |
|
|
11.13 |
|
|
|
0.77 |
|
|
|
(0.44 |
) |
|
|
|
|
|
|
(0.04 |
) |
|
|
0.00 |
|
|
|
0.29 |
|
|
|
(0.75 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.75 |
) |
| 10/01/2015 -
12/31/2015(h) |
|
|
10.88 |
|
|
|
0.20 |
|
|
|
0.24 |
|
|
|
|
|
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
0.44 |
|
|
|
(0.19 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.19 |
)(i) |
| 09/30/2016 |
|
|
10.78 |
|
|
|
0.78 |
|
|
|
0.08 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.85 |
|
|
|
(0.75 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.75 |
) |
| 09/30/2015 |
|
|
9.58 |
|
|
|
0.75 |
|
|
|
1.25 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.99 |
|
|
|
(0.79 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.79 |
) |
| 09/30/2014 |
|
|
11.02 |
|
|
|
0.75 |
|
|
|
(1.34 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
(0.60 |
) |
|
|
(0.84 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.84 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
14.20 |
|
|
$ |
0.48 |
|
|
$ |
(0.47 |
) |
|
|
|
|
|
$ |
(0.09 |
) |
|
$ |
0.00 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.46 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.46 |
) |
| 12/31/2017 |
|
|
13.83 |
|
|
|
0.97 |
|
|
|
0.43 |
|
|
|
|
|
|
|
(0.11 |
) |
|
|
0.00 |
|
|
|
1.29 |
|
|
|
(0.92 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.92 |
) |
| 12/31/2016 |
|
|
14.61 |
|
|
|
0.95 |
|
|
|
(0.75 |
) |
|
|
|
|
|
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.14 |
|
|
|
(0.92 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.92 |
) |
| 05/01/2015 -
12/31/2015(f) |
|
|
14.33 |
|
|
|
0.65 |
|
|
|
0.26 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.90 |
|
|
|
(0.62 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.62 |
)(i) |
| 04/30/2015 |
|
|
13.77 |
|
|
|
0.95 |
|
|
|
0.54 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.48 |
|
|
|
(0.92 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.92 |
) |
| 04/30/2014 |
|
|
14.71 |
|
|
|
0.99 |
|
|
|
(1.00 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
(0.02 |
) |
|
|
(0.92 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.92 |
) |
| 04/30/2013 |
|
|
13.75 |
|
|
|
1.02 |
|
|
|
0.88 |
|
|
|
|
|
|
|
(0.02 |
) |
|
|
0.00 |
|
|
|
1.88 |
|
|
|
(0.92 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income
Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
8.69 |
|
|
$ |
0.28 |
|
|
$ |
(0.29 |
) |
|
|
|
|
|
$ |
(0.05 |
) |
|
$ |
0.00 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.21 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.21 |
) |
| 12/31/2017 |
|
|
8.39 |
|
|
|
0.60 |
|
|
|
0.34 |
|
|
|
|
|
|
|
(0.07 |
) |
|
|
0.00 |
|
|
|
0.87 |
|
|
|
(0.56 |
) |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.57 |
) |
| 12/31/2016 |
|
|
8.95 |
|
|
|
0.62 |
|
|
|
(0.53 |
) |
|
|
|
|
|
|
(0.04 |
) |
|
|
0.00 |
|
|
|
0.05 |
|
|
|
(0.61 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.61 |
) |
| 06/01/2015 -
12/31/2015(g) |
|
|
8.69 |
|
|
|
0.38 |
|
|
|
0.27 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.64 |
|
|
|
(0.38 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.38 |
)(i) |
| 05/31/2015 |
|
|
8.61 |
|
|
|
0.66 |
|
|
|
0.08 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.73 |
|
|
|
(0.65 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.65 |
) |
| 05/31/2014 |
|
|
8.93 |
|
|
|
0.68 |
|
|
|
(0.26 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.41 |
|
|
|
(0.66 |
) |
|
|
0.00 |
|
|
|
(0.07 |
) |
|
|
(0.73 |
) |
| 05/31/2013 |
|
|
8.65 |
|
|
|
0.69 |
|
|
|
0.35 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.03 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
(0.07 |
) |
|
|
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO California Municipal Income
Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
9.98 |
|
|
$ |
0.36 |
|
|
$ |
(0.38 |
) |
|
|
|
|
|
$ |
(0.06 |
) |
|
$ |
0.00 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.27 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.27 |
) |
| 12/31/2017 |
|
|
9.67 |
|
|
|
0.67 |
|
|
|
0.35 |
|
|
|
|
|
|
|
(0.08 |
) |
|
|
0.00 |
|
|
|
0.94 |
|
|
|
(0.63 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.63 |
) |
| 12/31/2016 |
|
|
10.31 |
|
|
|
0.65 |
|
|
|
(0.53 |
) |
|
|
|
|
|
|
(0.04 |
) |
|
|
0.00 |
|
|
|
0.08 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.72 |
) |
| 10/01/2015 -
12/31/2015(h) |
|
|
10.08 |
|
|
|
0.17 |
|
|
|
0.24 |
|
|
|
|
|
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
0.41 |
|
|
|
(0.18 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.18 |
)(i) |
| 09/30/2016 |
|
|
10.02 |
|
|
|
0.68 |
|
|
|
0.11 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.78 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.72 |
) |
| 09/30/2015 |
|
|
9.09 |
|
|
|
0.69 |
|
|
|
0.97 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.65 |
|
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.72 |
) |
| 09/30/2014 |
|
|
10.23 |
|
|
|
0.79 |
|
|
|
(1.20 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
(0.42 |
) |
|
|
(0.72 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.72 |
) |
|
|
|
|
|
|
|
|
|
| 18 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Share |
|
|
|
|
|
Ratios/Supplemental Data |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
Net Asset
Value End of
Year or
Period |
|
|
Market Price
End of Year
or Period |
|
|
Total
Investment
Return(c)
|
|
|
|
|
|
Net Assets
Applicable
to
Common
Shareholders
(000s) |
|
|
Expenses(d)(e) |
|
|
Expenses
Excluding
Waivers(d)(e)
|
|
|
Expenses
Excluding
Interest
Expense(d) |
|
|
Expenses
Excluding
Interest
Expense and
Waivers(d) |
|
|
Net
Investment
Income (Loss)(d) |
|
|
Preferred
Shares
Asset
Coverage
Per Share |
|
|
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
12.59 |
|
|
$ |
13.17 |
|
|
|
4.22 |
% |
|
|
|
|
|
|
323,626 |
|
|
|
1.61 |
%* |
|
|
1.61 |
%* |
|
|
1.19 |
%* |
|
|
1.19 |
%* |
|
|
7.17 |
%* |
|
$ |
67,569 |
|
|
|
13 |
% |
| |
12.87 |
|
|
|
13.00 |
|
|
|
(4.44 |
) |
|
|
|
|
|
|
330,523 |
|
|
|
1.37 |
|
|
|
1.37 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
7.16 |
|
|
|
68,475 |
|
|
|
12 |
|
| |
12.44 |
|
|
|
14.39 |
|
|
|
(0.71 |
) |
|
|
|
|
|
|
318,473 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
1.18 |
|
|
|
1.18 |
|
|
|
6.72 |
|
|
|
66,896 |
|
|
|
16 |
|
| |
13.26 |
|
|
|
15.45 |
|
|
|
5.27 |
|
|
|
|
|
|
|
338,342 |
|
|
|
1.22 |
* |
|
|
1.22 |
* |
|
|
1.21 |
* |
|
|
1.21 |
* |
|
|
7.42 |
* |
|
|
69,516 |
|
|
|
15 |
|
| |
13.15 |
|
|
|
15.38 |
|
|
|
21.47 |
|
|
|
|
|
|
|
334,775 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
1.22 |
|
|
|
1.22 |
|
|
|
7.12 |
|
|
|
69,049 |
|
|
|
9 |
|
| |
12.57 |
|
|
|
13.58 |
|
|
|
(8.45 |
) |
|
|
|
|
|
|
319,155 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
1.27 |
|
|
|
1.27 |
|
|
|
7.74 |
|
|
|
66,993 |
|
|
|
15 |
|
| |
13.75 |
|
|
|
16.05 |
|
|
|
11.96 |
|
|
|
|
|
|
|
348,162 |
|
|
|
1.22 |
|
|
|
1.23 |
|
|
|
1.19 |
|
|
|
1.20 |
|
|
|
6.99 |
|
|
|
70,809 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
11.84 |
|
|
$ |
13.09 |
|
|
|
2.55 |
% |
|
|
|
|
|
|
735,526 |
|
|
|
1.80 |
%* |
|
|
1.80 |
%* |
|
|
1.09 |
%* |
|
|
1.09 |
%* |
|
|
6.76 |
%* |
|
$ |
75,088 |
|
|
|
12 |
% |
| |
12.13 |
|
|
|
13.18 |
|
|
|
14.85 |
|
|
|
|
|
|
|
751,337 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
1.10 |
|
|
|
1.10 |
|
|
|
6.74 |
|
|
|
76,136 |
|
|
|
12 |
|
| |
11.81 |
|
|
|
12.22 |
|
|
|
3.90 |
|
|
|
|
|
|
|
727,513 |
|
|
|
1.16 |
|
|
|
1.16 |
|
|
|
1.08 |
|
|
|
1.08 |
|
|
|
6.27 |
|
|
|
74,548 |
|
|
|
12 |
|
| |
12.39 |
|
|
|
12.51 |
|
|
|
6.56 |
|
|
|
|
|
|
|
760,212 |
|
|
|
1.11 |
* |
|
|
1.11 |
* |
|
|
1.10 |
* |
|
|
1.10 |
* |
|
|
6.57 |
* |
|
|
76,782 |
|
|
|
10 |
|
| |
12.11 |
|
|
|
12.19 |
|
|
|
6.15 |
|
|
|
|
|
|
|
742,133 |
|
|
|
1.16 |
|
|
|
1.16 |
|
|
|
1.11 |
|
|
|
1.11 |
|
|
|
6.65 |
|
|
|
75,553 |
|
|
|
10 |
|
| |
11.94 |
|
|
|
12.25 |
|
|
|
7.76 |
|
|
|
|
|
|
|
730,088 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
1.16 |
|
|
|
1.16 |
|
|
|
7.22 |
|
|
|
74,733 |
|
|
|
16 |
|
| |
12.17 |
|
|
|
12.19 |
|
|
|
3.41 |
|
|
|
|
|
|
|
741,368 |
|
|
|
1.16 |
|
|
|
1.17 |
|
|
|
1.11 |
|
|
|
1.12 |
|
|
|
6.74 |
|
|
|
75,501 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
10.79 |
|
|
$ |
11.56 |
|
|
|
2.94 |
% |
|
|
|
|
|
|
354,750 |
|
|
|
1.78 |
%* |
|
|
1.78 |
%* |
|
|
1.15 |
%* |
|
|
1.15 |
%* |
|
|
7.01 |
%* |
|
$ |
71,910 |
|
|
|
15 |
% |
| |
11.06 |
|
|
|
11.58 |
|
|
|
8.19 |
|
|
|
|
|
|
|
363,063 |
|
|
|
1.39 |
|
|
|
1.39 |
|
|
|
1.19 |
|
|
|
1.19 |
|
|
|
7.07 |
|
|
|
73,007 |
|
|
|
14 |
|
| |
10.67 |
|
|
|
11.37 |
|
|
|
5.33 |
|
|
|
|
|
|
|
349,423 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
1.13 |
|
|
|
1.13 |
|
|
|
6.80 |
|
|
|
71,211 |
|
|
|
9 |
|
| |
11.13 |
|
|
|
11.51 |
|
|
|
6.70 |
|
|
|
|
|
|
|
363,382 |
|
|
|
1.19 |
* |
|
|
1.19 |
* |
|
|
1.17 |
* |
|
|
1.17 |
* |
|
|
7.09 |
* |
|
|
73,123 |
|
|
|
2 |
|
| |
10.88 |
|
|
|
10.97 |
|
|
|
9.65 |
|
|
|
|
|
|
|
355,368 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
1.17 |
|
|
|
1.17 |
|
|
|
7.14 |
|
|
|
72,006 |
|
|
|
5 |
|
| |
10.78 |
|
|
|
10.71 |
|
|
|
10.69 |
|
|
|
|
|
|
|
351,139 |
|
|
|
1.29 |
|
|
|
1.29 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
7.47 |
|
|
|
71,447 |
|
|
|
15 |
|
| |
9.58 |
|
|
|
10.45 |
|
|
|
(15.39 |
) |
|
|
|
|
|
|
311,231 |
|
|
|
1.27 |
|
|
|
1.27 |
|
|
|
1.20 |
|
|
|
1.20 |
|
|
|
7.04 |
|
|
|
66,168 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
13.66 |
|
|
$ |
16.96 |
|
|
|
1.25 |
% |
|
|
|
|
|
|
256,252 |
|
|
|
2.00 |
%* |
|
|
2.00 |
%* |
|
|
1.19 |
%* |
|
|
1.19 |
%* |
|
|
7.00 |
%* |
|
$ |
67,694 |
|
|
|
9 |
% |
| |
14.20 |
|
|
|
17.28 |
|
|
|
16.74 |
|
|
|
|
|
|
|
266,019 |
|
|
|
1.60 |
|
|
|
1.60 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
6.86 |
|
|
|
69,320 |
|
|
|
13 |
|
| |
13.83 |
|
|
|
15.68 |
|
|
|
5.96 |
|
|
|
|
|
|
|
258,476 |
|
|
|
1.29 |
|
|
|
1.29 |
|
|
|
1.17 |
|
|
|
1.17 |
|
|
|
6.49 |
|
|
|
68,070 |
|
|
|
15 |
|
| |
14.61 |
|
|
|
15.70 |
|
|
|
4.60 |
|
|
|
|
|
|
|
272,345 |
|
|
|
1.24 |
* |
|
|
1.24 |
* |
|
|
1.21 |
* |
|
|
1.21 |
* |
|
|
6.76 |
* |
|
|
70,388 |
|
|
|
13 |
|
| |
14.33 |
|
|
|
15.66 |
|
|
|
16.08 |
|
|
|
|
|
|
|
266,838 |
|
|
|
1.32 |
|
|
|
1.32 |
|
|
|
1.22 |
|
|
|
1.22 |
|
|
|
6.67 |
|
|
|
69,473 |
|
|
|
11 |
|
| |
13.77 |
|
|
|
14.38 |
|
|
|
0.61 |
|
|
|
|
|
|
|
255,751 |
|
|
|
1.36 |
|
|
|
1.36 |
|
|
|
1.27 |
|
|
|
1.27 |
|
|
|
7.55 |
|
|
|
67,624 |
|
|
|
21 |
|
| |
14.71 |
|
|
|
15.33 |
|
|
|
9.96 |
|
|
|
|
|
|
|
272,398 |
|
|
|
1.30 |
|
|
|
1.31 |
|
|
|
1.21 |
|
|
|
1.22 |
|
|
|
7.17 |
|
|
|
70,398 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
8.42 |
|
|
$ |
8.30 |
|
|
|
(16.30 |
)% |
|
|
|
|
|
|
269,449 |
|
|
|
1.65 |
%* |
|
|
1.65 |
%* |
|
|
1.22 |
%* |
|
|
1.22 |
%* |
|
|
6.75 |
%* |
|
$ |
66,314 |
|
|
|
10 |
% |
| |
8.69 |
|
|
|
10.17 |
|
|
|
17.31 |
|
|
|
|
|
|
|
277,787 |
|
|
|
1.49 |
|
|
|
1.49 |
|
|
|
1.24 |
|
|
|
1.24 |
|
|
|
6.94 |
|
|
|
67,590 |
|
|
|
14 |
|
| |
8.39 |
|
|
|
9.20 |
|
|
|
(1.58 |
) |
|
|
|
|
|
|
267,645 |
|
|
|
1.37 |
|
|
|
1.37 |
|
|
|
1.22 |
|
|
|
1.22 |
|
|
|
6.84 |
|
|
|
66,042 |
|
|
|
20 |
|
| |
8.95 |
|
|
|
9.94 |
|
|
|
6.19 |
|
|
|
|
|
|
|
285,097 |
|
|
|
1.25 |
* |
|
|
1.25 |
* |
|
|
1.23 |
* |
|
|
1.23 |
* |
|
|
7.42 |
* |
|
|
68,724 |
|
|
|
10 |
|
| |
8.69 |
|
|
|
9.75 |
|
|
|
9.85 |
|
|
|
|
|
|
|
276,525 |
|
|
|
1.32 |
|
|
|
1.32 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
7.48 |
|
|
|
67,411 |
|
|
|
12 |
|
| |
8.61 |
|
|
|
9.52 |
|
|
|
(1.76 |
) |
|
|
|
|
|
|
273,289 |
|
|
|
1.41 |
|
|
|
1.41 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
8.51 |
|
|
|
66,915 |
|
|
|
14 |
|
| |
8.93 |
|
|
|
10.51 |
|
|
|
11.41 |
|
|
|
|
|
|
|
282,181 |
|
|
|
1.34 |
|
|
|
1.35 |
|
|
|
1.23 |
|
|
|
1.24 |
|
|
|
7.65 |
|
|
|
68,279 |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
9.63 |
|
|
$ |
10.37 |
|
|
|
2.13 |
% |
|
|
|
|
|
|
214,470 |
|
|
|
2.02 |
%* |
|
|
2.02 |
%* |
|
|
1.20 |
%* |
|
|
1.20 |
%* |
|
|
7.62 |
%* |
|
$ |
67,883 |
|
|
|
6 |
% |
| |
9.98 |
|
|
|
10.44 |
|
|
|
(2.46 |
) |
|
|
|
|
|
|
221,976 |
|
|
|
1.65 |
|
|
|
1.65 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
6.77 |
|
|
|
69,379 |
|
|
|
9 |
|
| |
9.67 |
|
|
|
11.34 |
|
|
|
1.27 |
|
|
|
|
|
|
|
214,646 |
|
|
|
1.33 |
|
|
|
1.33 |
|
|
|
1.19 |
|
|
|
1.19 |
|
|
|
6.31 |
|
|
|
67,922 |
|
|
|
15 |
|
| |
10.31 |
|
|
|
11.92 |
|
|
|
10.76 |
|
|
|
|
|
|
|
228,221 |
|
|
|
1.25 |
* |
|
|
1.25 |
* |
|
|
1.21 |
* |
|
|
1.21 |
* |
|
|
6.44 |
* |
|
|
70,641 |
|
|
|
2 |
|
| |
10.08 |
|
|
|
10.94 |
|
|
|
12.80 |
|
|
|
|
|
|
|
223,030 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
6.68 |
|
|
|
69,605 |
|
|
|
24 |
|
| |
10.02 |
|
|
|
10.40 |
|
|
|
19.73 |
|
|
|
|
|
|
|
221,415 |
|
|
|
1.37 |
|
|
|
1.37 |
|
|
|
1.26 |
|
|
|
1.26 |
|
|
|
7.29 |
|
|
|
69,282 |
|
|
|
11 |
|
| |
9.09 |
|
|
|
9.36 |
|
|
|
(13.98 |
) |
|
|
|
|
|
|
200,245 |
|
|
|
1.35 |
|
|
|
1.35 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
7.93 |
|
|
|
65,409 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
19 |
Financial Highlights (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Investment Operations |
|
|
|
|
|
Less Distributions to Preferred
Shareholders(b) |
|
|
|
|
|
Less Distributions to Common Shareholders(b) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
12.06 |
|
|
$ |
0.35 |
|
|
$ |
(0.36 |
) |
|
|
|
|
|
$ |
(0.06 |
) |
|
$ |
0.00 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.34 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.34 |
) |
| 12/31/2017 |
|
|
11.62 |
|
|
|
0.69 |
|
|
|
0.51 |
|
|
|
|
|
|
|
(0.08 |
) |
|
|
0.00 |
|
|
|
1.12 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
| 12/31/2016 |
|
|
12.10 |
|
|
|
0.70 |
|
|
|
(0.45 |
) |
|
|
|
|
|
|
(0.05 |
) |
|
|
0.00 |
|
|
|
0.20 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
| 05/01/2015 -
12/31/2015(f) |
|
|
11.92 |
|
|
|
0.47 |
|
|
|
0.18 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.64 |
|
|
|
(0.46 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.46 |
)(i) |
| 04/30/2015 |
|
|
11.20 |
|
|
|
0.68 |
|
|
|
0.73 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.40 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
| 04/30/2014 |
|
|
12.04 |
|
|
|
0.67 |
|
|
|
(0.82 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
(0.16 |
) |
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
| 04/30/2013 |
|
|
11.38 |
|
|
|
0.70 |
|
|
|
0.66 |
|
|
|
|
|
|
|
(0.02 |
) |
|
|
0.00 |
|
|
|
1.34 |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income
Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
11.17 |
|
|
$ |
0.37 |
|
|
$ |
(0.37 |
) |
|
|
|
|
|
$ |
(0.08 |
) |
|
$ |
0.00 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.30 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.30 |
) |
| 12/31/2017 |
|
|
10.71 |
|
|
|
0.72 |
|
|
|
0.46 |
|
|
|
|
|
|
|
(0.10 |
) |
|
|
0.00 |
|
|
|
1.08 |
|
|
|
(0.60 |
) |
|
|
0.00 |
|
|
|
(0.02 |
) |
|
|
(0.62 |
) |
| 12/31/2016 |
|
|
11.41 |
|
|
|
0.72 |
|
|
|
(0.57 |
) |
|
|
|
|
|
|
(0.05 |
) |
|
|
0.00 |
|
|
|
0.10 |
|
|
|
(0.76 |
) |
|
|
0.00 |
|
|
|
(0.04 |
) |
|
|
(0.80 |
) |
| 06/01/2015 -
12/31/2015(g) |
|
|
11.28 |
|
|
|
0.43 |
|
|
|
0.17 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.59 |
|
|
|
(0.46 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.46 |
)(i) |
| 05/31/2015 |
|
|
10.98 |
|
|
|
0.75 |
|
|
|
0.36 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.10 |
|
|
|
(0.80 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.80 |
) |
| 05/31/2014 |
|
|
11.32 |
|
|
|
0.75 |
|
|
|
(0.28 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.46 |
|
|
|
(0.80 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.80 |
) |
| 05/31/2013 |
|
|
11.37 |
|
|
|
0.79 |
|
|
|
(0.02 |
) |
|
|
|
|
|
|
(0.02 |
) |
|
|
0.00 |
|
|
|
0.75 |
|
|
|
(0.80 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.80 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO New York Municipal Income
Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 01/01/2018 - 06/30/2018+ |
|
$ |
9.27 |
|
|
$ |
0.28 |
|
|
$ |
(0.28 |
) |
|
|
|
|
|
$ |
(0.06 |
) |
|
$ |
0.00 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.25 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.25 |
) |
| 12/31/2017 |
|
|
8.95 |
|
|
|
0.56 |
|
|
|
0.36 |
|
|
|
|
|
|
|
(0.08 |
) |
|
|
0.00 |
|
|
|
0.84 |
|
|
|
(0.52 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.52 |
) |
| 12/31/2016 |
|
|
9.55 |
|
|
|
0.56 |
|
|
|
(0.49 |
) |
|
|
|
|
|
|
(0.04 |
) |
|
|
0.00 |
|
|
|
0.03 |
|
|
|
(0.63 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.63 |
) |
| 10/01/2015 -
12/31/2015(h) |
|
|
9.42 |
|
|
|
0.14 |
|
|
|
0.15 |
|
|
|
|
|
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
0.29 |
|
|
|
(0.16 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.16 |
)(i) |
| 09/30/2016 |
|
|
9.43 |
|
|
|
0.57 |
|
|
|
0.06 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.62 |
|
|
|
(0.63 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.63 |
) |
| 09/30/2015 |
|
|
8.51 |
|
|
|
0.56 |
|
|
|
1.00 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
1.55 |
|
|
|
(0.63 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.63 |
) |
| 09/30/2014 |
|
|
9.65 |
|
|
|
0.62 |
|
|
|
(1.12 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
(0.51 |
) |
|
|
(0.63 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.63 |
) |
| ^ |
A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
| (a) |
Per share amounts based on average number of common shares outstanding during the year or period. |
| (b) |
The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization
of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions—Common Shares, in the Notes to Financial Statements for more information. |
| (c) |
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. |
| (d) |
Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common
shareholders. |
| (e) |
Interest expense primarily relates to participation in borrowing and financing transactions. See Note 5, Borrowings and Other Financing
Transactions, in the Notes to Financial Statements for more information. |
| (f) |
Fiscal year end changed from April 30th to
December 31st. |
| (g) |
Fiscal year end changed from May 31st to December 31st. |
| (h) |
Fiscal year end changed from September 30th to
December 31st. |
| (i) |
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 |
|
|
|
|
|
|
|
Net Asset
Value End of
Year or
Period |
|
|
Market Price
End of Year
or Period |
|
|
Total
Investment
Return(c)
|
|
|
|
|
|
Net Assets
Applicable
to
Common
Shareholders
(000s) |
|
|
Expenses(d)(e) |
|
|
Expenses
Excluding
Waivers(d)(e)
|
|
|
Expenses
Excluding
Interest
Expense(d) |
|
|
Expenses
Excluding
Interest
Expense and
Waivers(d) |
|
|
Net
Investment
Income (Loss)(d) |
|
|
Preferred
Shares
Asset
Coverage
Per Share |
|
|
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
11.65 |
|
|
$ |
12.39 |
|
|
|
(0.18 |
)% |
|
|
|
|
|
|
90,521 |
|
|
|
1.71 |
%* |
|
|
1.71 |
%* |
|
|
1.26 |
%* |
|
|
1.26 |
%* |
|
|
6.07 |
%* |
|
$ |
73,134 |
|
|
|
10 |
% |
| |
12.06 |
|
|
|
12.78 |
|
|
|
13.44 |
|
|
|
|
|
|
|
93,564 |
|
|
|
1.55 |
|
|
|
1.55 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
5.73 |
|
|
|
74,749 |
|
|
|
22 |
|
| |
11.62 |
|
|
|
11.91 |
|
|
|
5.71 |
|
|
|
|
|
|
|
89,825 |
|
|
|
1.36 |
|
|
|
1.36 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
5.69 |
|
|
|
72,769 |
|
|
|
10 |
|
| |
12.10 |
|
|
|
11.90 |
|
|
|
7.23 |
|
|
|
|
|
|
|
93,205 |
|
|
|
1.27 |
* |
|
|
1.27 |
* |
|
|
1.26 |
* |
|
|
1.26 |
* |
|
|
5.82 |
* |
|
|
74,574 |
|
|
|
5 |
|
| |
11.92 |
|
|
|
11.54 |
|
|
|
7.72 |
|
|
|
|
|
|
|
91,832 |
|
|
|
1.39 |
|
|
|
1.39 |
|
|
|
1.31 |
|
|
|
1.31 |
|
|
|
5.78 |
|
|
|
73,847 |
|
|
|
1 |
|
| |
11.20 |
|
|
|
11.36 |
|
|
|
(3.21 |
) |
|
|
|
|
|
|
86,211 |
|
|
|
1.46 |
|
|
|
1.46 |
|
|
|
1.40 |
|
|
|
1.40 |
|
|
|
6.28 |
|
|
|
70,857 |
|
|
|
10 |
|
| |
12.04 |
|
|
|
12.52 |
|
|
|
12.96 |
|
|
|
|
|
|
|
92,509 |
|
|
|
1.36 |
|
|
|
1.37 |
|
|
|
1.30 |
|
|
|
1.31 |
|
|
|
5.89 |
|
|
|
74,203 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
10.79 |
|
|
$ |
10.59 |
|
|
|
(9.22 |
)% |
|
|
|
|
|
|
120,239 |
|
|
|
2.48 |
%* |
|
|
2.48 |
%* |
|
|
1.31 |
%* |
|
|
1.31 |
%* |
|
|
6.86 |
%* |
|
$ |
63,037 |
|
|
|
9 |
% |
| |
11.17 |
|
|
|
12.00 |
|
|
|
5.77 |
|
|
|
|
|
|
|
124,295 |
|
|
|
1.63 |
|
|
|
1.63 |
|
|
|
1.35 |
|
|
|
1.35 |
|
|
|
6.51 |
|
|
|
64,320 |
|
|
|
16 |
|
| |
10.71 |
|
|
|
11.98 |
|
|
|
3.28 |
|
|
|
|
|
|
|
118,817 |
|
|
|
1.42 |
|
|
|
1.42 |
|
|
|
1.33 |
|
|
|
1.33 |
|
|
|
6.22 |
|
|
|
62,593 |
|
|
|
20 |
|
| |
11.41 |
|
|
|
12.35 |
|
|
|
4.36 |
|
|
|
|
|
|
|
126,085 |
|
|
|
1.35 |
* |
|
|
1.35 |
* |
|
|
1.33 |
* |
|
|
1.33 |
* |
|
|
6.48 |
* |
|
|
64,898 |
|
|
|
7 |
|
| |
11.28 |
|
|
|
12.32 |
|
|
|
9.89 |
|
|
|
|
|
|
|
124,424 |
|
|
|
1.40 |
|
|
|
1.40 |
|
|
|
1.33 |
|
|
|
1.33 |
|
|
|
6.65 |
|
|
|
64,373 |
|
|
|
7 |
|
| |
10.98 |
|
|
|
12.01 |
|
|
|
7.83 |
|
|
|
|
|
|
|
120,520 |
|
|
|
1.51 |
|
|
|
1.51 |
|
|
|
1.45 |
|
|
|
1.45 |
|
|
|
7.30 |
|
|
|
63,139 |
|
|
|
5 |
|
| |
11.32 |
|
|
|
12.01 |
|
|
|
4.14 |
|
|
|
|
|
|
|
123,685 |
|
|
|
1.42 |
|
|
|
1.43 |
|
|
|
1.33 |
|
|
|
1.34 |
|
|
|
6.78 |
|
|
|
64,140 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
8.96 |
|
|
$ |
9.13 |
|
|
|
(5.31 |
)% |
|
|
|
|
|
|
51,155 |
|
|
|
2.17 |
%* |
|
|
2.17 |
%* |
|
|
1.54 |
%* |
|
|
1.54 |
%* |
|
|
6.32 |
%* |
|
$ |
64,949 |
|
|
|
12 |
% |
| |
9.27 |
|
|
|
9.92 |
|
|
|
4.34 |
|
|
|
|
|
|
|
52,884 |
|
|
|
1.83 |
|
|
|
1.83 |
|
|
|
1.57 |
|
|
|
1.57 |
|
|
|
6.07 |
|
|
|
66,300 |
|
|
|
12 |
|
| |
8.95 |
|
|
|
10.04 |
|
|
|
3.95 |
|
|
|
|
|
|
|
50,981 |
|
|
|
1.61 |
|
|
|
1.61 |
|
|
|
1.50 |
|
|
|
1.50 |
|
|
|
5.88 |
|
|
|
64,820 |
|
|
|
24 |
|
| |
9.55 |
|
|
|
10.27 |
|
|
|
5.75 |
|
|
|
|
|
|
|
54,247 |
|
|
|
1.55 |
* |
|
|
1.55 |
* |
|
|
1.53 |
* |
|
|
1.53 |
* |
|
|
5.87 |
* |
|
|
67,378 |
|
|
|
0 |
|
| |
9.42 |
|
|
|
9.87 |
|
|
|
11.09 |
|
|
|
|
|
|
|
53,548 |
|
|
|
1.55 |
|
|
|
1.55 |
|
|
|
1.49 |
|
|
|
1.49 |
|
|
|
6.04 |
|
|
|
66,764 |
|
|
|
13 |
|
| |
9.43 |
|
|
|
9.49 |
|
|
|
9.47 |
|
|
|
|
|
|
|
53,369 |
|
|
|
1.66 |
|
|
|
1.66 |
|
|
|
1.60 |
|
|
|
1.60 |
|
|
|
6.31 |
|
|
|
66,695 |
|
|
|
24 |
|
| |
8.51 |
|
|
|
9.30 |
|
|
|
(6.83 |
) |
|
|
|
|
|
|
48,007 |
|
|
|
1.65 |
|
|
|
1.65 |
|
|
|
1.56 |
|
|
|
1.56 |
|
|
|
6.72 |
|
|
|
62,505 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 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* |
|
$ |
610,854 |
|
|
$ |
1,415,878 |
|
|
$ |
677,918 |
|
|
$ |
518,749 |
|
| Cash |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1 |
|
| Receivable for investments sold |
|
|
14,290 |
|
|
|
13,740 |
|
|
|
3,084 |
|
|
|
2,866 |
|
| Interest and/or dividends receivable |
|
|
7,550 |
|
|
|
15,798 |
|
|
|
7,841 |
|
|
|
7,208 |
|
| Other assets |
|
|
98 |
|
|
|
1,047 |
|
|
|
61 |
|
|
|
45 |
|
| Total Assets |
|
|
632,792 |
|
|
|
1,446,463 |
|
|
|
688,904 |
|
|
|
528,869 |
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Borrowings & Other Financing Transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for tender option bond floating rate certificates |
|
$ |
99,114 |
|
|
$ |
321,479 |
|
|
$ |
138,997 |
|
|
$ |
113,380 |
|
| Payable for investments purchased |
|
|
18,087 |
|
|
|
17,622 |
|
|
|
3,917 |
|
|
|
7,388 |
|
| Distributions payable to common shareholders |
|
|
1,534 |
|
|
|
4,037 |
|
|
|
1,832 |
|
|
|
1,444 |
|
| Distributions payable to preferred shareholders |
|
|
60 |
|
|
|
116 |
|
|
|
59 |
|
|
|
53 |
|
| Overdraft due to custodian |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| Accrued management fees |
|
|
307 |
|
|
|
640 |
|
|
|
325 |
|
|
|
243 |
|
| Other liabilities |
|
|
64 |
|
|
|
43 |
|
|
|
24 |
|
|
|
109 |
|
| Total Liabilities |
|
|
119,166 |
|
|
|
343,937 |
|
|
|
145,154 |
|
|
|
122,617 |
|
|
|
|
|
|
| Preferred Shares ($0.00001 par value and $25,000 liquidation preference per
share) |
|
|
190,000 |
|
|
|
367,000 |
|
|
|
189,000 |
|
|
|
150,000 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders |
|
$ |
323,626 |
|
|
$ |
735,526 |
|
|
$ |
354,750 |
|
|
$ |
256,252 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders Consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par value ($0.00001 per share) |
|
$ |
0 |
|
|
$ |
1 |
|
|
$ |
0 |
|
|
$ |
0 |
|
| Paid in capital in excess of par |
|
|
282,612 |
|
|
|
640,046 |
|
|
|
308,073 |
|
|
|
222,025 |
|
| Undistributed (overdistributed) net investment income |
|
|
1,078 |
|
|
|
17,605 |
|
|
|
(451 |
) |
|
|
9,736 |
|
| Accumulated undistributed net realized gain (loss) |
|
|
734 |
|
|
|
(1,436 |
) |
|
|
3,769 |
|
|
|
(5,492 |
) |
| Net unrealized appreciation (depreciation) |
|
|
39,202 |
|
|
|
79,310 |
|
|
|
43,359 |
|
|
|
29,983 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders |
|
$ |
323,626 |
|
|
$ |
735,526 |
|
|
$ |
354,750 |
|
|
$ |
256,252 |
|
|
|
|
|
|
| Net Asset Value Per Common Share |
|
$ |
12.59 |
|
|
$ |
11.84 |
|
|
$ |
10.79 |
|
|
$ |
13.66 |
|
|
|
|
|
|
| Common Shares Outstanding |
|
|
25,710 |
|
|
|
62,106 |
|
|
|
32,875 |
|
|
|
18,759 |
|
|
|
|
|
|
| Preferred Shares Issued and Outstanding |
|
|
8 |
|
|
|
15 |
|
|
|
8 |
|
|
|
6 |
|
|
|
|
|
|
| Cost of investments in securities |
|
$ |
571,652 |
|
|
$ |
1,336,570 |
|
|
$ |
634,559 |
|
|
$ |
488,766 |
|
|
|
|
|
|
| * Includes repurchase agreements of: |
|
$ |
2,815 |
|
|
$ |
857 |
|
|
$ |
7,546 |
|
|
$ |
182 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand. |
|
|
|
|
|
|
|
|
|
| 22 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PIMCO
California
Municipal
Income
Fund II |
|
|
PIMCO
California
Municipal
Income
Fund III |
|
|
PIMCO
New York
Municipal
Income
Fund |
|
|
PIMCO
New York
Municipal
Income
Fund II |
|
|
PIMCO
New York
Municipal
Income
Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
496,804 |
|
|
$ |
430,774 |
|
|
$ |
164,748 |
|
|
$ |
236,057 |
|
|
$ |
102,678 |
|
| |
0 |
|
|
|
0 |
|
|
|
1 |
|
|
|
1 |
|
|
|
0 |
|
| |
5,210 |
|
|
|
2,602 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| |
6,443 |
|
|
|
5,873 |
|
|
|
2,150 |
|
|
|
2,934 |
|
|
|
1,181 |
|
| |
25 |
|
|
|
27 |
|
|
|
602 |
|
|
|
16 |
|
|
|
6 |
|
| |
508,482 |
|
|
|
439,276 |
|
|
|
167,501 |
|
|
|
239,008 |
|
|
|
103,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
65,440 |
|
|
$ |
93,341 |
|
|
$ |
29,404 |
|
|
$ |
38,730 |
|
|
$ |
20,382 |
|
| |
9,120 |
|
|
|
5,123 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| |
1,120 |
|
|
|
1,002 |
|
|
|
443 |
|
|
|
565 |
|
|
|
241 |
|
| |
51 |
|
|
|
32 |
|
|
|
15 |
|
|
|
27 |
|
|
|
12 |
|
| |
0 |
|
|
|
19 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| |
259 |
|
|
|
206 |
|
|
|
89 |
|
|
|
124 |
|
|
|
60 |
|
| |
43 |
|
|
|
83 |
|
|
|
29 |
|
|
|
323 |
|
|
|
15 |
|
| |
76,033 |
|
|
|
99,806 |
|
|
|
29,980 |
|
|
|
39,769 |
|
|
|
20,710 |
|
|
|
|
|
|
| |
163,000 |
|
|
|
125,000 |
|
|
|
47,000 |
|
|
|
79,000 |
|
|
|
32,000 |
|
|
|
|
|
|
| $ |
269,449 |
|
|
$ |
214,470 |
|
|
$ |
90,521 |
|
|
$ |
120,239 |
|
|
$ |
51,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
| |
230,794 |
|
|
|
192,043 |
|
|
|
81,502 |
|
|
|
110,996 |
|
|
|
45,864 |
|
| |
(1,039 |
) |
|
|
2,004 |
|
|
|
1,217 |
|
|
|
(743 |
) |
|
|
(163 |
) |
| |
1,883 |
|
|
|
(3,234 |
) |
|
|
704 |
|
|
|
(2,439 |
) |
|
|
147 |
|
| |
37,811 |
|
|
|
23,657 |
|
|
|
7,098 |
|
|
|
12,425 |
|
|
|
5,307 |
|
|
|
|
|
|
| $ |
269,449 |
|
|
$ |
214,470 |
|
|
$ |
90,521 |
|
|
$ |
120,239 |
|
|
$ |
51,155 |
|
|
|
|
|
|
| $ |
8.42 |
|
|
$ |
9.63 |
|
|
$ |
11.65 |
|
|
$ |
10.79 |
|
|
$ |
8.96 |
|
|
|
|
|
|
| |
31,985 |
|
|
|
22,268 |
|
|
|
7,772 |
|
|
|
11,142 |
|
|
|
5,707 |
|
|
|
|
|
|
| |
7 |
|
|
|
5 |
|
|
|
2 |
|
|
|
3 |
|
|
|
1 |
|
|
|
|
|
|
| $ |
458,994 |
|
|
$ |
407,119 |
|
|
$ |
157,650 |
|
|
$ |
223,633 |
|
|
$ |
97,371 |
|
|
|
|
|
|
| $ |
624 |
|
|
$ |
0 |
|
|
$ |
531 |
|
|
$ |
2,776 |
|
|
$ |
1,419 |
|
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
23 |
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended June 30, 2018 (Unaudited) |
|
| (Amounts in thousands†) |
|
PIMCO
Municipal
Income
Fund |
|
|
PIMCO
Municipal
Income
Fund II |
|
|
PIMCO
Municipal
Income
Fund III |
|
|
PIMCO
California
Municipal
Income
Fund |
|
|
|
|
|
|
| Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest |
|
$ |
14,043 |
|
|
$ |
31,093 |
|
|
$ |
15,387 |
|
|
$ |
11,451 |
|
| Total Income |
|
|
14,043 |
|
|
|
31,093 |
|
|
|
15,387 |
|
|
|
11,451 |
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Management fees |
|
|
1,792 |
|
|
|
3,733 |
|
|
|
1,897 |
|
|
|
1,422 |
|
| Trustee fees and related expenses |
|
|
24 |
|
|
|
77 |
|
|
|
13 |
|
|
|
19 |
|
| Interest expense |
|
|
668 |
|
|
|
2,584 |
|
|
|
1,097 |
|
|
|
1,034 |
|
| Auction agent fees and commissions |
|
|
64 |
|
|
|
140 |
|
|
|
65 |
|
|
|
44 |
|
| Auction rate preferred shares related expenses |
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
| Miscellaneous expense |
|
|
8 |
|
|
|
12 |
|
|
|
9 |
|
|
|
8 |
|
| Total Expenses |
|
|
2,571 |
|
|
|
6,561 |
|
|
|
3,096 |
|
|
|
2,542 |
|
|
|
|
|
|
| Net Investment Income (Loss) |
|
|
11,472 |
|
|
|
24,532 |
|
|
|
12,291 |
|
|
|
8,909 |
|
|
|
|
|
|
| Net Realized Gain (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
5,233 |
|
|
|
6,404 |
|
|
|
3,284 |
|
|
|
1,109 |
|
|
|
|
|
|
| Net Realized Gain (Loss) |
|
|
5,233 |
|
|
|
6,404 |
|
|
|
3,284 |
|
|
|
1,109 |
|
|
|
|
|
|
| Net Change in Unrealized Appreciation (Depreciation): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
(12,735 |
) |
|
|
(20,690 |
) |
|
|
(11,312 |
) |
|
|
(9,887 |
) |
|
|
|
|
|
| Net Change in Unrealized Appreciation (Depreciation) |
|
|
(12,735 |
) |
|
|
(20,690 |
) |
|
|
(11,312 |
) |
|
|
(9,887 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Resulting from Operations |
|
$ |
3,970 |
|
|
$ |
10,246 |
|
|
$ |
4,263 |
|
|
$ |
131 |
|
|
|
|
|
|
| Distributions on Preferred Shares from Net Investment Income |
|
$ |
(2,043 |
) |
|
$ |
(3,947 |
) |
|
$ |
(2,033 |
) |
|
$ |
(1,613 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from
Operations |
|
$ |
1,927 |
|
|
$ |
6,299 |
|
|
$ |
2,230 |
|
|
$ |
(1,482 |
) |
| † |
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 |
|
|
PIMCO
New York
Municipal
Income
Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
11,199 |
|
|
$ |
10,251 |
|
|
$ |
3,501 |
|
|
$ |
5,217 |
|
|
$ |
2,152 |
|
| |
11,199 |
|
|
|
10,251 |
|
|
|
3,501 |
|
|
|
5,217 |
|
|
|
2,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1,509 |
|
|
|
1,204 |
|
|
|
525 |
|
|
|
726 |
|
|
|
355 |
|
| |
30 |
|
|
|
8 |
|
|
|
7 |
|
|
|
6 |
|
|
|
2 |
|
| |
572 |
|
|
|
867 |
|
|
|
201 |
|
|
|
349 |
|
|
|
160 |
|
| |
64 |
|
|
|
46 |
|
|
|
20 |
|
|
|
25 |
|
|
|
10 |
|
| |
15 |
|
|
|
14 |
|
|
|
15 |
|
|
|
15 |
|
|
|
14 |
|
| |
8 |
|
|
|
8 |
|
|
|
6 |
|
|
|
7 |
|
|
|
7 |
|
| |
2,198 |
|
|
|
2,147 |
|
|
|
774 |
|
|
|
1,128 |
|
|
|
548 |
|
|
|
|
|
|
| |
9,001 |
|
|
|
8,104 |
|
|
|
2,727 |
|
|
|
4,089 |
|
|
|
1,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1,339 |
|
|
|
1,355 |
|
|
|
(172 |
) |
|
|
122 |
|
|
|
112 |
|
|
|
|
|
|
| |
1,339 |
|
|
|
1,355 |
|
|
|
(172 |
) |
|
|
122 |
|
|
|
112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(10,263 |
) |
|
|
(9,850 |
) |
|
|
(2,590 |
) |
|
|
(4,155 |
) |
|
|
(1,680 |
) |
|
|
|
|
|
| |
(10,263 |
) |
|
|
(9,850 |
) |
|
|
(2,590 |
) |
|
|
(4,155 |
) |
|
|
(1,680 |
) |
|
|
|
|
|
| $ |
77 |
|
|
$ |
(391 |
) |
|
$ |
(35 |
) |
|
$ |
56 |
|
|
$ |
36 |
|
|
|
|
|
|
| $ |
(1,753 |
) |
|
$ |
(1,344 |
) |
|
$ |
(505 |
) |
|
$ |
(852 |
) |
|
$ |
(342 |
) |
|
|
|
|
|
$ |
(1,676 |
) |
|
$ |
(1,735 |
) |
|
$ |
(540 |
) |
|
$ |
(796 |
) |
|
$ |
(306 |
) |
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
25 |
(THIS PAGE INTENTIONALLY LEFT BLANK)
|
|
|
|
|
|
|
|
|
| 26 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
PIMCO
Municipal Income Fund |
|
|
PIMCO
Municipal Income Fund II |
|
|
|
|
|
|
| (Amounts in thousands†) |
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
|
|
|
|
| Increase (Decrease) in Net Assets from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
$ |
11,472 |
|
|
$ |
23,408 |
|
|
$ |
24,532 |
|
|
$ |
50,249 |
|
| Net realized gain (loss) |
|
|
5,233 |
|
|
|
(1,751 |
) |
|
|
6,404 |
|
|
|
751 |
|
| Net change in unrealized appreciation (depreciation) |
|
|
(12,735 |
) |
|
|
10,872 |
|
|
|
(20,690 |
) |
|
|
22,225 |
|
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common
Shareholders |
|
|
3,970 |
|
|
|
32,529 |
|
|
|
10,246 |
|
|
|
73,225 |
|
| Distributions on preferred shares from net investment income |
|
|
(2,043 |
) |
|
|
(2,622 |
) |
|
|
(3,947 |
) |
|
|
(5,064 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from
Operations |
|
|
1,927 |
|
|
|
29,907 |
|
|
|
6,299 |
|
|
|
68,161 |
|
|
|
|
|
|
| Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
(9,200 |
) |
|
|
(18,916 |
) |
|
|
(24,193 |
) |
|
|
(48,197 |
) |
|
|
|
|
|
| Total Distributions to Common Shareholders(a) |
|
|
(9,200 |
) |
|
|
(18,916 |
) |
|
|
(24,193 |
) |
|
|
(48,197 |
) |
|
|
|
|
|
| Common Share Transactions**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issued as reinvestment of distributions |
|
|
376 |
|
|
|
1,059 |
|
|
|
2,083 |
|
|
|
3,860 |
|
|
|
|
|
|
| Total increase (decrease) in net assets applicable to common
shareholders |
|
|
(6,897 |
) |
|
|
12,050 |
|
|
|
(15,811 |
) |
|
|
23,824 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
330,523 |
|
|
|
318,473 |
|
|
|
751,337 |
|
|
|
727,513 |
|
| End of period* |
|
$ |
323,626 |
|
|
$ |
330,523 |
|
|
$ |
735,526 |
|
|
$ |
751,337 |
|
|
|
|
|
|
| * Including undistributed (overdistributed) net investment income of: |
|
$ |
1,078 |
|
|
$ |
849 |
|
|
$ |
17,605 |
|
|
$ |
21,213 |
|
|
|
|
|
|
| ** Common Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares issued as reinvestment of distributions |
|
|
30 |
|
|
|
80 |
|
|
|
171 |
|
|
|
314 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) |
The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization
of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions—Common Shares, in the Notes to Financial Statements for more information. |
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
27 |
Statements of Changes in Net Assets (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
PIMCO
Municipal Income Fund III |
|
|
PIMCO
California Municipal Income Fund |
|
|
|
|
|
|
| (Amounts in thousands) |
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
|
|
|
|
| Increase (Decrease) in Net Assets from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
$ |
12,291 |
|
|
$ |
25,374 |
|
|
$ |
8,909 |
|
|
$ |
18,076 |
|
| Net realized gain (loss) |
|
|
3,284 |
|
|
|
8,779 |
|
|
|
1,109 |
|
|
|
1,030 |
|
| Net change in unrealized appreciation (depreciation) |
|
|
(11,312 |
) |
|
|
3,381 |
|
|
|
(9,887 |
) |
|
|
7,068 |
|
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common
Shareholders |
|
|
4,263 |
|
|
|
37,534 |
|
|
|
131 |
|
|
|
26,174 |
|
| Distributions on preferred shares from net investment income |
|
|
(2,033 |
) |
|
|
(2,608 |
) |
|
|
(1,613 |
) |
|
|
(2,067 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from
Operations |
|
|
2,230 |
|
|
|
34,926 |
|
|
|
(1,482 |
) |
|
|
24,107 |
|
|
|
|
|
|
| Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
(10,991 |
) |
|
|
(22,157 |
) |
|
|
(8,662 |
) |
|
|
(17,290 |
) |
| Tax basis return of capital |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
| Total Distributions to Common Shareholders(a) |
|
|
(10,991 |
) |
|
|
(22,157 |
) |
|
|
(8,662 |
) |
|
|
(17,290 |
) |
|
|
|
|
|
| Common Share Transactions**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issued as reinvestment of distributions |
|
|
448 |
|
|
|
871 |
|
|
|
377 |
|
|
|
726 |
|
|
|
|
|
|
| Total increase (decrease) in net assets applicable to common
shareholders |
|
|
(8,313 |
) |
|
|
13,640 |
|
|
|
(9,767 |
) |
|
|
7,543 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
363,063 |
|
|
|
349,423 |
|
|
|
266,019 |
|
|
|
258,476 |
|
| End of period* |
|
$ |
354,750 |
|
|
$ |
363,063 |
|
|
$ |
256,252 |
|
|
$ |
266,019 |
|
|
|
|
|
|
| * Including undistributed (overdistributed) net investment income of: |
|
$ |
(451 |
) |
|
$ |
282 |
|
|
$ |
9,736 |
|
|
$ |
11,102 |
|
|
|
|
|
|
| ** Common Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares issued as reinvestment of distributions |
|
|
41 |
|
|
|
78 |
|
|
|
26 |
|
|
|
45 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) |
The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization
of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions—Common Shares , in the Notes to Financial Statements for more information. |
|
|
|
|
|
|
|
|
|
| 28 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PIMCO
California Municipal Income Fund II |
|
|
PIMCO
California Municipal Income Fund III |
|
|
PIMCO
New York Municipal Income Fund |
|
|
|
|
|
|
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
9,001 |
|
|
$ |
19,045 |
|
|
$ |
8,104 |
|
|
$ |
14,805 |
|
|
$ |
2,727 |
|
|
$ |
5,321 |
|
| |
1,339 |
|
|
|
3,228 |
|
|
|
1,355 |
|
|
|
2,790 |
|
|
|
(172 |
) |
|
|
3,276 |
|
| |
(10,263 |
) |
|
|
7,655 |
|
|
|
(9,850 |
) |
|
|
4,888 |
|
|
|
(2,590 |
) |
|
|
749 |
|
|
|
|
|
|
|
| |
77 |
|
|
|
29,928 |
|
|
|
(391 |
) |
|
|
22,483 |
|
|
|
(35 |
) |
|
|
9,346 |
|
| |
(1,753 |
) |
|
|
(2,249 |
) |
|
|
(1,344 |
) |
|
|
(1,727 |
) |
|
|
(505 |
) |
|
|
(651 |
) |
|
|
|
|
|
|
|
(1,676 |
) |
|
|
27,679 |
|
|
|
(1,735 |
) |
|
|
20,756 |
|
|
|
(540 |
) |
|
|
8,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(6,717 |
) |
|
|
(17,701 |
) |
|
|
(6,010 |
) |
|
|
(13,997 |
) |
|
|
(2,656 |
) |
|
|
(5,298 |
) |
| |
0 |
|
|
|
(434 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
| |
(6,717 |
) |
|
|
(18,135 |
) |
|
|
(6,010 |
) |
|
|
(13,997 |
) |
|
|
(2,656 |
) |
|
|
(5,298 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
55 |
|
|
|
598 |
|
|
|
248 |
|
|
|
562 |
|
|
|
153 |
|
|
|
342 |
|
|
|
|
|
|
|
| |
(8,338 |
) |
|
|
10,142 |
|
|
|
(7,497 |
) |
|
|
7,321 |
|
|
|
(3,043 |
) |
|
|
3,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
277,787 |
|
|
|
267,645 |
|
|
|
221,967 |
|
|
|
214,646 |
|
|
|
93,564 |
|
|
|
89,825 |
|
| $ |
269,449 |
|
|
$ |
277,787 |
|
|
$ |
214,470 |
|
|
$ |
221,967 |
|
|
$ |
90,521 |
|
|
$ |
93,564 |
|
|
|
|
|
|
|
| $ |
(1,039 |
) |
|
$ |
(1,570 |
) |
|
$ |
2,004 |
|
|
$ |
1,254 |
|
|
$ |
1,217 |
|
|
$ |
1,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
6 |
|
|
|
63 |
|
|
|
25 |
|
|
|
52 |
|
|
|
13 |
|
|
|
28 |
|
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
29 |
Statements of Changes in Net Assets (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
PIMCO
New York Municipal Income Fund II |
|
|
PIMCO
New York Municipal Income Fund III |
|
|
|
|
|
|
| (Amounts in thousands†) |
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
Six Months Ended
June 30, 2018
(Unaudited) |
|
|
Year Ended
December 31, 2017 |
|
|
|
|
|
|
| Increase (Decrease) in Net Assets from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
$ |
4,089 |
|
|
$ |
8,009 |
|
|
$ |
1,604 |
|
|
$ |
3,182 |
|
| Net realized gain (loss) |
|
|
122 |
|
|
|
2,001 |
|
|
|
112 |
|
|
|
485 |
|
| Net change in unrealized appreciation (depreciation) |
|
|
(4,155 |
) |
|
|
3,059 |
|
|
|
(1,680 |
) |
|
|
1,534 |
|
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common
Shareholders |
|
|
56 |
|
|
|
13,069 |
|
|
|
36 |
|
|
|
5,201 |
|
| Distributions on preferred shares from net investment income |
|
|
(852 |
) |
|
|
(1,088 |
) |
|
|
(342 |
) |
|
|
(442 |
) |
|
|
|
|
|
| Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from
Operations |
|
|
(796 |
) |
|
|
11,981 |
|
|
|
(306 |
) |
|
|
4,759 |
|
|
|
|
|
|
| Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
(3,388 |
) |
|
|
(6,662 |
) |
|
|
(1,447 |
) |
|
|
(2,948 |
) |
| Tax basis return of capital |
|
|
0 |
|
|
|
(271 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
| Total Distributions to Common Shareholders(a) |
|
|
(3,388 |
) |
|
|
(6,933 |
) |
|
|
(1,447 |
) |
|
|
(2,948 |
) |
|
|
|
|
|
| Common Share Transactions**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issued as reinvestment of distributions |
|
|
128 |
|
|
|
430 |
|
|
|
24 |
|
|
|
92 |
|
|
|
|
|
|
| Total increase (decrease) in net assets applicable to common
shareholders |
|
|
(4,056 |
) |
|
|
5,478 |
|
|
|
(1,729 |
) |
|
|
1,903 |
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
124,295 |
|
|
|
118,817 |
|
|
|
52,884 |
|
|
|
50,981 |
|
| End of period* |
|
$ |
120,239 |
|
|
$ |
124,295 |
|
|
$ |
51,155 |
|
|
$ |
52,884 |
|
|
|
|
|
|
| * Including undistributed (overdistributed) net investment income of: |
|
$ |
(743 |
) |
|
$ |
(592 |
) |
|
$ |
(163 |
) |
|
$ |
22 |
|
|
|
|
|
|
| ** Common Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares issued as reinvestment of distributions |
|
|
12 |
|
|
|
37 |
|
|
|
2 |
|
|
|
10 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) |
The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization
of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions—Common Shares, in the Notes to Financial Statements for more information. |
|
|
|
|
|
|
|
|
|
| 30 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
(THIS PAGE INTENTIONALLY LEFT BLANK)
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
31 |
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended June 30, 2018 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands†) |
|
PIMCO
Municipal
Income
Fund |
|
|
PIMCO
Municipal
Income
Fund II |
|
|
PIMCO
Municipal
Income
Fund III |
|
|
PIMCO
California
Municipal
Income
Fund |
|
|
|
|
|
|
| Cash Flows Provided by (Used for) Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in net assets resulting from operations |
|
$ |
3,970 |
|
|
$ |
10,246 |
|
|
$ |
4,263 |
|
|
$ |
131 |
|
|
|
|
|
|
| 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 |
|
|
(127,190 |
) |
|
|
(341,219 |
) |
|
|
(157,983 |
) |
|
|
(72,177 |
) |
| Proceeds from sales of long-term securities |
|
|
72,124 |
|
|
|
151,845 |
|
|
|
86,889 |
|
|
|
43,822 |
|
| (Purchases) Proceeds from sales of short-term portfolio investments, net |
|
|
1,185 |
|
|
|
(857 |
) |
|
|
(7,546 |
) |
|
|
118 |
|
| (Increase) decrease in receivable for investments sold |
|
|
(14,275 |
) |
|
|
(13,150 |
) |
|
|
(984 |
) |
|
|
(2,866 |
) |
| (Increase) decrease in interest and/or dividends receivable |
|
|
(235 |
) |
|
|
(1,218 |
) |
|
|
(352 |
) |
|
|
(129 |
) |
| (Increase) decrease in other assets |
|
|
(10 |
) |
|
|
(980 |
) |
|
|
(15 |
) |
|
|
(8 |
) |
| Increase (decrease) in payable for investments purchased |
|
|
18,087 |
|
|
|
17,622 |
|
|
|
1,817 |
|
|
|
7,388 |
|
| Increase (decrease) in accrued management fees |
|
|
(14 |
) |
|
|
(31 |
) |
|
|
(16 |
) |
|
|
(13 |
) |
| Increase (decrease) in other liabilities |
|
|
(78 |
) |
|
|
(336 |
) |
|
|
(136 |
) |
|
|
(122 |
) |
| Net Realized (Gain) Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
(5,233 |
) |
|
|
(6,404 |
) |
|
|
(3,284 |
) |
|
|
(1,109 |
) |
| Net Change in Unrealized (Appreciation) Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities |
|
|
12,735 |
|
|
|
20,690 |
|
|
|
11,312 |
|
|
|
9,887 |
|
| Net amortization (accretion) on investments |
|
|
(496 |
) |
|
|
(139 |
) |
|
|
(318 |
) |
|
|
374 |
|
|
|
|
|
|
| Net Cash Provided by (Used for) Operating Activities |
|
|
(39,430 |
) |
|
|
(163,931 |
) |
|
|
(66,353 |
) |
|
|
(14,704 |
) |
|
|
|
|
|
| Cash Flows Received from (Used for) Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in overdraft due to custodian |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| Cash distributions paid* |
|
|
(10,871 |
) |
|
|
(26,058 |
) |
|
|
(12,581 |
) |
|
|
(9,899 |
) |
| Proceeds from tender option bond transactions |
|
|
67,545 |
|
|
|
258,325 |
|
|
|
105,915 |
|
|
|
31,280 |
|
| Payments on tender option bond transactions |
|
|
(17,789 |
) |
|
|
(70,223 |
) |
|
|
(27,067 |
) |
|
|
(7,532 |
) |
|
|
|
|
|
| Net Cash Received from (Used for) Financing Activities |
|
|
38,885 |
|
|
|
162,044 |
|
|
|
66,267 |
|
|
|
13,849 |
|
|
|
|
|
|
| Net Increase (Decrease) in Cash and Foreign Currency |
|
|
(545 |
) |
|
|
(1,887 |
) |
|
|
(86 |
) |
|
|
(855 |
) |
|
|
|
|
|
| Cash and Foreign Currency: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
545 |
|
|
|
1,887 |
|
|
|
86 |
|
|
|
856 |
|
| End of period |
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
1 |
|
|
|
|
|
|
| * Reinvestment of distributions |
|
$ |
376 |
|
|
$ |
2,083 |
|
|
$ |
448 |
|
|
$ |
377 |
|
|
|
|
|
|
| Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense paid during the period |
|
$ |
399 |
|
|
$ |
1,506 |
|
|
$ |
514 |
|
|
$ |
745 |
|
| † |
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.
|
|
|
|
|
|
|
|
|
| 32 |
|
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 |
|
|
PIMCO
New York
Municipal
Income
Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
77 |
|
|
$ |
(391 |
) |
|
$ |
(35 |
) |
|
$ |
56 |
|
|
$ |
36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(72,209 |
) |
|
|
(47,378 |
) |
|
|
(25,240 |
) |
|
|
(30,583 |
) |
|
|
(19,339 |
) |
| |
46,277 |
|
|
|
24,873 |
|
|
|
14,972 |
|
|
|
19,180 |
|
|
|
10,819 |
|
| |
(624 |
) |
|
|
600 |
|
|
|
(530 |
) |
|
|
(1,275 |
) |
|
|
(1,416 |
) |
| |
(5,210 |
) |
|
|
(2,602 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| |
(338 |
) |
|
|
(235 |
) |
|
|
(69 |
) |
|
|
(227 |
) |
|
|
(108 |
) |
| |
(4 |
) |
|
|
1 |
|
|
|
150 |
|
|
|
(1 |
) |
|
|
(1 |
) |
| |
9,120 |
|
|
|
5,123 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| |
(12 |
) |
|
|
(11 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
| |
(59 |
) |
|
|
(111 |
) |
|
|
(7 |
) |
|
|
(86 |
) |
|
|
(34 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1,339 |
) |
|
|
(1,355 |
) |
|
|
172 |
|
|
|
(122 |
) |
|
|
(112 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
10,263 |
|
|
|
9,850 |
|
|
|
2,590 |
|
|
|
4,155 |
|
|
|
1,680 |
|
| |
191 |
|
|
|
(358 |
) |
|
|
205 |
|
|
|
204 |
|
|
|
97 |
|
|
|
|
|
|
| |
(13,867 |
) |
|
|
(11,994 |
) |
|
|
(7,798 |
) |
|
|
(8,705 |
) |
|
|
(8,382 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
0 |
|
|
|
19 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| |
(8,814 |
) |
|
|
(7,113 |
) |
|
|
(3,011 |
) |
|
|
(4,112 |
) |
|
|
(1,541 |
) |
| |
26,975 |
|
|
|
22,907 |
|
|
|
13,900 |
|
|
|
13,100 |
|
|
|
12,300 |
|
| |
(6,507 |
) |
|
|
(5,475 |
) |
|
|
(3,399 |
) |
|
|
(3,178 |
) |
|
|
(3,007 |
) |
|
|
|
|
|
| |
11,654 |
|
|
|
10,338 |
|
|
|
7,490 |
|
|
|
5,810 |
|
|
|
7,752 |
|
|
|
|
|
|
| |
(2,213 |
) |
|
|
(1,656 |
) |
|
|
(308 |
) |
|
|
(2,895 |
) |
|
|
(630 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2,213 |
|
|
|
1,656 |
|
|
|
309 |
|
|
|
2,896 |
|
|
|
630 |
|
| $ |
0 |
|
|
$ |
0 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
0 |
|
|
|
|
|
|
| $ |
55 |
|
|
$ |
248 |
|
|
$ |
153 |
|
|
$ |
128 |
|
|
$ |
248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
334 |
|
|
$ |
618 |
|
|
$ |
125 |
|
|
$ |
252 |
|
|
$ |
92 |
|
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
33 |
Schedule of Investments PIMCO Municipal Income Fund
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| INVESTMENTS IN SECURITIES 188.8% |
|
|
|
| MUNICIPAL BONDS & NOTES 187.9% |
|
|
|
| ALABAMA 7.3% |
|
| Alabama Federal Aid Highway Financing Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 09/01/2035 (d) |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,471 |
|
| 5.000% due 09/01/2036 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,464 |
|
| Jefferson County, Alabama Sewer Revenue Bonds, Series 2013 |
|
| 7.900% due 10/01/2050 (c) |
|
|
|
|
15,000 |
|
|
|
|
|
12,869 |
|
| 6.500% due 10/01/2053 |
|
|
|
|
750 |
|
|
|
|
|
883 |
|
| Lower Alabama Gas District Revenue Bonds, Series 2016 |
|
| 5.000% due 09/01/2046 |
|
|
|
|
2,400 |
|
|
|
|
|
2,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ALASKA 1.1% |
|
| Alaska Industrial Development & Export Authority Revenue Bonds, Series
2007 |
|
| 6.000% due 12/01/2036 ^(a) |
|
|
|
|
900 |
|
|
|
|
|
61 |
|
| Matanuska-Susitna Borough, Alaska Revenue Bonds, (AGC Insured), Series 2009 |
|
| 6.000% due 09/01/2032 |
|
|
|
|
3,280 |
|
|
|
|
|
3,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ARIZONA 2.3% |
|
| Maricopa County, Arizona Pollution Control Corp. Revenue Bonds, Series 2000 |
|
| 5.000% due 06/01/2035 |
|
|
|
|
1,500 |
|
|
|
|
|
1,577 |
|
| Pima County, Arizona Industrial Development Authority Revenue Bonds, Series
2010 |
|
| 5.250% due 10/01/2040 |
|
|
|
|
750 |
|
|
|
|
|
800 |
|
| Salt River Project Agricultural Improvement & Power District, Arizona Revenue Bonds,
Series 2009 |
|
| 5.000% due 01/01/2039 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ARKANSAS 0.8% |
|
| Arkansas Development Finance Authority Revenue Bonds, (AMBAC Insured), Series
2006 |
|
| 0.000% due 07/01/2036 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
2,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CALIFORNIA 21.8% |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2010 |
|
| 5.000% due 10/01/2034 |
|
|
|
|
2,875 |
|
|
|
|
|
3,096 |
|
| 5.000% due 10/01/2042 |
|
|
|
|
3,255 |
|
|
|
|
|
3,505 |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2013 |
|
| 5.250% due 04/01/2053 |
|
|
|
|
10,000 |
|
|
|
|
|
11,587 |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2014 |
|
| 5.000% due 10/01/2054 |
|
|
|
|
3,000 |
|
|
|
|
|
3,325 |
|
| California County Tobacco Securitization Agency Revenue Bonds, Series 2002 |
|
| 6.000% due 06/01/2035 |
|
|
|
|
2,000 |
|
|
|
|
|
2,001 |
|
| 6.125% due 06/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,000 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2009 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,092 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
1,500 |
|
|
|
|
|
1,641 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
1,140 |
|
|
|
|
|
1,292 |
|
| California State General Obligation Bonds, Series 2008 |
|
| 5.125% due 08/01/2036 |
|
|
|
|
2,300 |
|
|
|
|
|
2,306 |
|
| California State General Obligation Bonds, Series 2009 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
3,200 |
|
|
|
|
|
3,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| California State General Obligation Bonds, Series 2010 |
|
| 5.250% due 11/01/2040 |
|
$ |
|
|
1,900 |
|
|
$ |
|
|
2,044 |
|
| 5.500% due 03/01/2040 |
|
|
|
|
500 |
|
|
|
|
|
531 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FHA Insured), Series
2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
2,310 |
|
|
|
|
|
2,439 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
8,485 |
|
|
|
|
|
8,969 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2011 |
|
| 5.000% due 12/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,100 |
|
| California Statewide Communities Development Authority Revenue Notes, Series
2011 |
|
| 6.500% due 11/01/2021 |
|
|
|
|
370 |
|
|
|
|
|
400 |
|
| Chula Vista, California Revenue Bonds, Series 2004 |
|
| 5.875% due 02/15/2034 |
|
|
|
|
3,000 |
|
|
|
|
|
3,111 |
|
| Long Beach Bond Finance Authority, California Revenue Bonds, Series 2007 |
|
| 5.500% due 11/15/2030 |
|
|
|
|
1,405 |
|
|
|
|
|
1,723 |
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.125% due 11/01/2029 |
|
|
|
|
2,000 |
|
|
|
|
|
2,487 |
|
| Montebello Unified School District, California General Obligation Bonds, (AGM Insured), Series
2008 |
|
| 5.000% due 08/01/2033 |
|
|
|
|
4,175 |
|
|
|
|
|
4,187 |
|
| Orange County, California Airport Revenue Bonds, Series 2009 |
|
| 5.250% due 07/01/2039 |
|
|
|
|
5,000 |
|
|
|
|
|
5,171 |
|
| San Marcos Unified School District, California General Obligation Bonds, Series
2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,600 |
|
|
|
|
|
1,763 |
|
| Whittier Union High School District, California General Obligation Bonds, Series
2009 |
|
| 0.000% due 08/01/2025 (b) |
|
|
|
|
2,000 |
|
|
|
|
|
1,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COLORADO 4.6% |
|
| Board of Governors of Colorado State University System Revenue Bonds, Series
2017 |
|
| 4.000% due 03/01/2038 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,577 |
|
| Colorado Health Facilities Authority Revenue Bonds, Series 2018 |
|
| 4.000% due 11/15/2048 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,245 |
|
| Denver Health & Hospital Authority, Colorado Revenue Bonds, Series
2010 |
|
| 5.625% due 12/01/2040 |
|
|
|
|
450 |
|
|
|
|
|
472 |
|
| Public Authority for Colorado Energy Revenue Bonds, Series 2008 |
|
| 6.500% due 11/15/2038 |
|
|
|
|
500 |
|
|
|
|
|
697 |
|
| Regional Transportation District, Colorado Certificates of Participation Bonds, Series
2010 |
|
| 5.375% due 06/01/2031 |
|
|
|
|
400 |
|
|
|
|
|
425 |
|
| University of Colorado Revenue Bonds, Series 2009 |
|
| 5.375% due 06/01/2038 |
|
|
|
|
1,500 |
|
|
|
|
|
1,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONNECTICUT 2.5% |
|
| Connecticut State Health & Educational Facility Authority Revenue Bonds, Series
2011 |
|
| 5.000% due 07/01/2041 |
|
|
|
|
5,000 |
|
|
|
|
|
5,290 |
|
| Connecticut State Health & Educational Facility Authority Revenue Bonds, Series
2012 |
|
| 5.000% due 07/01/2042 |
|
|
|
|
2,500 |
|
|
|
|
|
2,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DISTRICT OF COLUMBIA 0.8% |
|
| District of Columbia Revenue Bonds, Series 2009 |
|
| 5.750% due 10/01/2039 |
|
|
|
|
2,500 |
|
|
|
|
|
2,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FLORIDA 2.9% |
|
| Broward County, Florida Water & Sewer Utility Revenue Bonds, Series
2009 |
|
| 5.250% due 10/01/2034 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| Florida Development Finance Corp. Revenue Notes, Series 2011 |
|
| 6.500% due 06/15/2021 |
|
$ |
|
|
165 |
|
|
$ |
|
|
173 |
|
| Florida State General Obligation Bonds, Series 2009 |
|
| 5.000% due 06/01/2038 (d) |
|
|
|
|
3,900 |
|
|
|
|
|
3,949 |
|
| Miami-Dade County, Florida School Board Foundation, Inc., Certificates of Participation Bonds,
(AGC Insured), Series 2009 |
|
| 5.375% due 02/01/2034 |
|
|
|
|
1,250 |
|
|
|
|
|
1,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GEORGIA 4.6% |
|
| Atlanta Development Authority, Georgia Revenue Bonds, Series 2017 |
|
| 6.750% due 01/01/2035 |
|
|
|
|
3,200 |
|
|
|
|
|
3,107 |
|
| Municipal Electric Authority of Georgia Revenue Bonds, Series 2015 |
|
| 5.000% due 07/01/2060 |
|
|
|
|
9,000 |
|
|
|
|
|
9,491 |
|
| Private Colleges & Universities Authority of Georgia Revenue Bonds, Series
2016 |
|
| 4.000% due 01/01/2046 (d) |
|
|
|
|
2,300 |
|
|
|
|
|
2,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| HAWAII 1.8% |
|
| City & County Honolulu, Hawaii Wastewater System Revenue Bonds, Series
2018 |
|
| 4.000% due 07/01/2042 |
|
|
|
|
1,985 |
|
|
|
|
|
2,068 |
|
| Hawaii State General Obligation Bonds, Series 2016 |
|
| 4.000% due 10/01/2035 (d) |
|
|
|
|
1,960 |
|
|
|
|
|
2,073 |
|
| 4.000% due 10/01/2036 (d) |
|
|
|
|
1,610 |
|
|
|
|
|
1,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 14.7% |
|
| Chicago Board of Education, Illinois General Obligation Bonds, Series 2012 |
|
| 5.000% due 12/01/2042 |
|
|
|
|
3,000 |
|
|
|
|
|
3,004 |
|
| Chicago, Illinois General Obligation Bonds, Series 2003 |
|
| 5.500% due 01/01/2034 |
|
|
|
|
1,750 |
|
|
|
|
|
1,874 |
|
| Chicago, Illinois General Obligation Bonds, Series 2007 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
2,400 |
|
|
|
|
|
2,546 |
|
| Chicago, Illinois General Obligation Bonds, Series 2015 |
|
| 5.375% due 01/01/2029 |
|
|
|
|
6,700 |
|
|
|
|
|
7,226 |
|
| 5.500% due 01/01/2034 |
|
|
|
|
2,300 |
|
|
|
|
|
2,463 |
|
| Chicago, Illinois Revenue Bonds, Series 2002 |
|
| 5.000% due 01/01/2028 |
|
|
|
|
2,000 |
|
|
|
|
|
2,316 |
|
| Illinois Finance Authority Revenue Bonds, Series 2009 |
|
| 5.500% due 07/01/2037 |
|
|
|
|
5,000 |
|
|
|
|
|
5,000 |
|
| 7.125% due 11/15/2037 |
|
|
|
|
400 |
|
|
|
|
|
419 |
|
| Illinois Finance Authority Revenue Bonds, Series 2013 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,070 |
|
| Illinois Finance Authority Revenue Bonds, Series 2017 |
|
| 5.250% due 12/01/2052 |
|
|
|
|
1,250 |
|
|
|
|
|
1,291 |
|
| Illinois State General Obligation Bonds, Series 2017 |
|
| 5.000% due 11/01/2029 |
|
|
|
|
2,500 |
|
|
|
|
|
2,649 |
|
| Illinois State General Obligation Bonds, Series 2018 |
|
| 4.625% due 05/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,026 |
|
| Illinois State General Obligation Notes, Series 2017 |
|
| 5.000% due 11/01/2027 |
|
|
|
|
7,000 |
|
|
|
|
|
7,473 |
|
| Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM Insured), Series
2010 |
|
| 0.000% due 06/15/2045 (b) |
|
|
|
|
6,500 |
|
|
|
|
|
1,908 |
|
| Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series
2012 |
|
| 0.000% due 12/15/2051 (b) |
|
|
|
|
2,500 |
|
|
|
|
|
463 |
|
| Regional Transportation Authority, Illinois Revenue Bonds, Series 2018 |
|
| 5.000% due 06/01/2038 (d) |
|
|
|
|
3,500 |
|
|
|
|
|
3,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 34 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| INDIANA 0.8% |
|
| Indiana Municipal Power Agency Revenue Bonds, Series 2009 |
|
| 6.000% due 01/01/2039 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,022 |
|
| Vigo County, Indiana Hospital Authority Revenue Bonds, Series 2011 |
|
| 7.500% due 09/01/2022 |
|
|
|
|
1,345 |
|
|
|
|
|
1,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| IOWA 0.9% |
|
| Iowa Finance Authority Revenue Bonds, Series 2014 |
|
| 2.000% due 05/15/2056 ^ |
|
|
|
|
532 |
|
|
|
|
|
7 |
|
| 5.400% due 11/15/2046 ^ |
|
|
|
|
2,836 |
|
|
|
|
|
2,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KANSAS 1.4% |
|
| Kansas Development Finance Authority Revenue Bonds, Series 2009 |
|
| 5.750% due 11/15/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,055 |
|
| Lenexa, Kansas Tax Allocation Bonds, Series 2007 |
|
| 6.000% due 04/01/2027 ^(a) |
|
|
|
|
802 |
|
|
|
|
|
181 |
|
| University of Kansas Hospital Authority Revenue Bonds, Series 2015 |
|
| 4.000% due 09/01/2040 (d) |
|
|
|
|
3,085 |
|
|
|
|
|
3,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KENTUCKY 0.3% |
|
| Kentucky Economic Development Finance Authority Revenue Bonds, Series 2010 |
|
| 6.375% due 06/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOUISIANA 2.4% |
|
| Louisiana Gasoline & Fuels Tax State Revenue Bonds, Series 2017 |
|
| 4.000% due 05/01/2045 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,142 |
|
| Louisiana Local Government Environmental Facilities & Community Development Authority
Revenue Bonds, Series 2010 |
|
| 5.875% due 10/01/2040 |
|
|
|
|
750 |
|
|
|
|
|
817 |
|
| 6.500% due 11/01/2035 |
|
|
|
|
400 |
|
|
|
|
|
439 |
|
| Louisiana Public Facilities Authority Revenue Bonds, Series 2011 |
|
| 6.500% due 05/15/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MARYLAND 0.7% |
|
| Maryland Economic Development Corp. Revenue Bonds, Series 2010 |
|
| 5.750% due 06/01/2035 |
|
|
|
|
1,500 |
|
|
|
|
|
1,613 |
|
| Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Series
2010 |
|
| 6.250% due 01/01/2041 |
|
|
|
|
650 |
|
|
|
|
|
718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MASSACHUSETTS 3.6% |
|
| Commonwealth of Massachusettes General Obligation Bonds, Series 2018 |
|
| 4.000% due 05/01/2037 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,216 |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2010 |
|
| 7.000% due 07/01/2042 |
|
|
|
|
750 |
|
|
|
|
|
828 |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2011 |
|
| 5.500% due 11/15/2056 (b)(f) |
|
|
|
|
103 |
|
|
|
|
|
21 |
|
| 6.250% due 11/15/2039 |
|
|
|
|
388 |
|
|
|
|
|
402 |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2016 |
|
| 4.000% due 10/01/2046 (d) |
|
|
|
|
2,300 |
|
|
|
|
|
2,373 |
|
| 5.000% due 01/01/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2017 |
|
| 4.000% due 07/01/2041 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,026 |
|
| Massachusetts State College Building Authority Revenue Bonds, Series 2009 |
|
| 5.500% due 05/01/2039 |
|
|
|
|
1,500 |
|
|
|
|
|
1,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MICHIGAN 5.8% |
|
| Michigan Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 12/01/2036 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,112 |
|
| 5.000% due 12/01/2031 (d) |
|
|
|
|
1,200 |
|
|
|
|
|
1,392 |
|
| 5.000% due 12/01/2046 (d) |
|
|
|
|
2,400 |
|
|
|
|
|
2,705 |
|
| Michigan State Building Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 10/15/2046 (d) |
|
|
|
|
1,000 |
|
|
|
|
|
1,126 |
|
| 5.000% due 10/15/2051 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,678 |
|
| Michigan State Hospital Finance Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 11/15/2047 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,085 |
|
| Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2007 |
|
| 6.000% due 06/01/2048 |
|
|
|
|
1,500 |
|
|
|
|
|
1,508 |
|
| Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2008 |
|
| 0.000% due 06/01/2058 (b) |
|
|
|
|
15,000 |
|
|
|
|
|
470 |
|
| Royal Oak Hospital Finance Authority, Michigan Revenue Bonds, Series 2009 |
|
| 8.250% due 09/01/2039 |
|
|
|
|
1,500 |
|
|
|
|
|
1,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MINNESOTA 0.5% |
|
| St. Louis Park, Minnesota Revenue Bonds, Series 2009 |
|
| 5.750% due 07/01/2039 |
|
|
|
|
1,500 |
|
|
|
|
|
1,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MISSOURI 2.0% |
|
| Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series
2018 |
|
| 4.000% due 06/01/2048 |
|
|
|
|
2,435 |
|
|
|
|
|
2,475 |
|
| 4.000% due 11/15/2048 |
|
|
|
|
3,000 |
|
|
|
|
|
3,041 |
|
| Joplin Industrial Development Authority, Missouri Revenue Bonds, Series 2007 |
|
| 5.750% due 05/15/2026 |
|
|
|
|
915 |
|
|
|
|
|
917 |
|
| Lee’s Summit, Missouri Tax Allocation Bonds, Series 2011 |
|
| 5.625% due 10/01/2023 |
|
|
|
|
90 |
|
|
|
|
|
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEVADA 1.6% |
|
| Clark County, Nevada General Obligation Bonds, Series 2018 |
|
| 4.000% due 07/01/2044 (d) |
|
|
|
|
4,200 |
|
|
|
|
|
4,351 |
|
| Reno, Nevada Revenue Bonds, Series 2018 |
|
| 0.000% due 07/01/2058 (b) |
|
|
|
|
10,500 |
|
|
|
|
|
802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW JERSEY 10.3% |
|
| New Jersey Economic Development Authority Revenue Bonds, (AGC Insured), Series
2009 |
|
| 5.500% due 12/15/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,037 |
|
| New Jersey Economic Development Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 06/15/2041 |
|
|
|
|
2,500 |
|
|
|
|
|
2,674 |
|
| New Jersey Economic Development Authority Special Assessment Bonds, Series
2002 |
|
| 5.750% due 04/01/2031 |
|
|
|
|
16,550 |
|
|
|
|
|
18,479 |
|
| New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series
2011 |
|
| 6.000% due 07/01/2037 |
|
|
|
|
500 |
|
|
|
|
|
561 |
|
| New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series
2013 |
|
| 5.500% due 07/01/2043 |
|
|
|
|
2,000 |
|
|
|
|
|
2,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| New Jersey Transportation Trust Fund Authority Revenue Bonds, (AGM Insured), Series
2006 |
|
| 0.000% due 12/15/2034 (b) |
|
$ |
|
|
1,500 |
|
|
$ |
|
|
769 |
|
| New Jersey Turnpike Authority Revenue Bonds, Series 2009 |
|
| 5.250% due 01/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,038 |
|
| 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 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
4,000 |
|
|
|
|
|
4,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW MEXICO 2.4% |
|
| Farmington, New Mexico Revenue Bonds, Series 2010 |
|
| 5.900% due 06/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,066 |
|
| New Mexico Hospital Equipment Loan Council Revenue Bonds, Series 2009 |
|
| 5.000% due 08/01/2039 |
|
|
|
|
6,400 |
|
|
|
|
|
6,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 28.9% |
|
| Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 07/01/2041 |
|
|
|
|
3,000 |
|
|
|
|
|
3,031 |
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds, Series 2011 |
|
| 5.250% due 02/15/2047 |
|
|
|
|
15,500 |
|
|
|
|
|
16,668 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2011 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
3,000 |
|
|
|
|
|
3,315 |
|
| 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 |
|
|
|
|
|
3,351 |
|
| 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 |
|
|
|
|
|
9,379 |
|
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds,
Series 2017 |
|
| 4.000% due 08/01/2042 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,170 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2009 |
|
| 5.000% due 06/15/2039 |
|
|
|
|
3,000 |
|
|
|
|
|
3,090 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2012 |
|
| 4.000% due 06/15/2047 |
|
|
|
|
1,500 |
|
|
|
|
|
1,533 |
|
| New York City, New York General Obligation Bonds, Series 2018 |
|
| 5.000% due 04/01/2045 (d) |
|
|
|
|
4,800 |
|
|
|
|
|
5,549 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2005 |
|
| 5.250% due 10/01/2035 |
|
|
|
|
10,000 |
|
|
|
|
|
12,443 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2007 |
|
| 5.500% due 10/01/2037 |
|
|
|
|
3,000 |
|
|
|
|
|
3,880 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2011 |
|
| 5.000% due 12/15/2041 |
|
|
|
|
7,500 |
|
|
|
|
|
8,121 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
10,000 |
|
|
|
|
|
10,812 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,062 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
3,500 |
|
|
|
|
|
3,756 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
35 |
Schedule of Investments PIMCO Municipal
Income Fund (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| OHIO 10.4% |
|
| 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 |
|
|
|
|
|
954 |
|
| 5.875% due 06/01/2047 |
|
|
|
|
11,600 |
|
|
|
|
|
11,650 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
9,280 |
|
|
|
|
|
9,518 |
|
| Geisinger Authority, Pennsylvania Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,085 |
|
| Hamilton County, Ohio Revenue Bonds, Series 2012 |
|
| 5.000% due 06/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,082 |
|
| Ohio State Turnpike Commission Revenue Bonds, Series 2013 |
|
| 5.000% due 02/15/2048 |
|
|
|
|
5,000 |
|
|
|
|
|
5,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OKLAHOMA 0.5% |
|
| Oklahoma Development Finance Authority Revenue Bonds, Series 2018 |
|
| 5.500% due 08/15/2057 |
|
|
|
|
1,500 |
|
|
|
|
|
1,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OREGON 0.8% |
|
| Oregon Health & Science University Revenue Bonds, Series 2009 |
|
| 5.750% due 07/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,082 |
|
| Oregon State Department of Administrative Services Certificates of Participation Bonds, Series
2009 |
|
| 5.250% due 05/01/2039 |
|
|
|
|
600 |
|
|
|
|
|
619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PENNSYLVANIA 9.3% |
|
| Berks County, Pennsylvania Industrial Development Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 11/01/2047 |
|
|
|
|
2,500 |
|
|
|
|
|
2,514 |
|
| Commonwealth of Pennsylvania General Obligation Bonds, Series 2018 |
|
| 4.000% due 03/01/2037 |
|
|
|
|
3,250 |
|
|
|
|
|
3,350 |
|
| Geisinger Authority, Pennsylvania Revenue Bonds, Series 2009 |
|
| 5.250% due 06/01/2039 |
|
|
|
|
5,000 |
|
|
|
|
|
5,164 |
|
| Luzerne County, Pennsylvania Industrial Development Authority Revenue Bonds, Series
2009 |
|
| 5.500% due 12/01/2039 |
|
|
|
|
1,100 |
|
|
|
|
|
1,156 |
|
| Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series
2010 |
|
| 5.000% due 03/01/2040 |
|
|
|
|
350 |
|
|
|
|
|
368 |
|
| 6.000% due 07/01/2043 |
|
|
|
|
500 |
|
|
|
|
|
541 |
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series 2009 |
|
| 5.125% due 12/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,097 |
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series 2018 |
|
| 5.000% due 12/01/2043 |
|
|
|
|
750 |
|
|
|
|
|
846 |
|
| Philadelphia Hospitals & Higher Education Facilities Authority, Pennsylvania Revenue
Bonds, Series 2012 |
|
| 5.625% due 07/01/2036 |
|
|
|
|
5,000 |
|
|
|
|
|
5,447 |
|
| 5.625% due 07/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,085 |
|
| Philadelphia, Pennsylvania General Obligation Bonds, (AGM Insured), Series
2008 |
|
| 5.250% due 12/15/2032 |
|
|
|
|
7,000 |
|
|
|
|
|
7,120 |
|
| Philadelphia, Pennsylvania Water & Wastewater Revenue Bonds, Series
2009 |
|
| 5.250% due 01/01/2036 |
|
|
|
|
500 |
|
|
|
|
|
510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.0% |
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM Insured), Series
2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
3,000 |
|
|
|
|
|
3,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| RHODE ISLAND 0.7% |
|
| Tobacco Settlement Financing Corp., Rhode Island Revenue Bonds, Series 2015 |
|
| 5.000% due 06/01/2040 |
|
$ |
|
|
1,205 |
|
|
$ |
|
|
1,287 |
|
| 5.000% due 06/01/2050 |
|
|
|
|
1,000 |
|
|
|
|
|
1,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SOUTH CAROLINA 2.7% |
|
| South Carolina Ports Authority Revenue Bonds, Series 2010 |
|
| 5.250% due 07/01/2040 |
|
|
|
|
2,200 |
|
|
|
|
|
2,352 |
|
| South Carolina State Public Service Authority Revenue Bonds, Series 2013 |
|
| 5.125% due 12/01/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,336 |
|
| 5.500% due 12/01/2053 |
|
|
|
|
1,100 |
|
|
|
|
|
1,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TENNESSEE 4.7% |
|
| Bristol Industrial Development Board, Tennessee Revenue Bonds, Series 2016 |
|
| 5.125% due 12/01/2042 |
|
|
|
|
2,500 |
|
|
|
|
|
2,430 |
|
| Bristol Industrial Development Board, Tennessee Revenue Notes, Series 2016 |
|
| 0.000% due 12/01/2025 (b) |
|
|
|
|
1,000 |
|
|
|
|
|
689 |
|
| 0.000% due 12/01/2026 (b) |
|
|
|
|
1,000 |
|
|
|
|
|
650 |
|
| Tennessee Energy Acquisition Corp. Revenue Bonds, Series 2006 |
|
| 5.000% due 02/01/2027 |
|
|
|
|
5,000 |
|
|
|
|
|
5,702 |
|
| 5.250% due 09/01/2024 |
|
|
|
|
5,000 |
|
|
|
|
|
5,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TEXAS 18.3% |
|
| Dallas, Texas Civic Center Revenue Bonds, (AGC Insured), Series 2009 |
|
| 5.250% due 08/15/2038 |
|
|
|
|
1,200 |
|
|
|
|
|
1,244 |
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2013 |
|
| 5.000% due 04/01/2053 |
|
|
|
|
5,500 |
|
|
|
|
|
6,027 |
|
| New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series
2017 |
|
| 4.000% due 08/15/2034 (d) |
|
|
|
|
300 |
|
|
|
|
|
312 |
|
| 4.000% due 08/15/2035 (d) |
|
|
|
|
800 |
|
|
|
|
|
830 |
|
| 4.000% due 08/15/2036 (d) |
|
|
|
|
600 |
|
|
|
|
|
621 |
|
| 4.000% due 08/15/2037 (d) |
|
|
|
|
900 |
|
|
|
|
|
931 |
|
| 4.000% due 08/15/2040 (d) |
|
|
|
|
900 |
|
|
|
|
|
927 |
|
| North Harris County, Texas Regional Water Authority Revenue Bonds, Series
2008 |
|
| 5.250% due 12/15/2033 |
|
|
|
|
4,200 |
|
|
|
|
|
4,271 |
|
| 5.500% due 12/15/2038 |
|
|
|
|
4,200 |
|
|
|
|
|
4,276 |
|
| North Texas Tollway Authority Revenue Bonds, Series 2009 |
|
| 5.250% due 01/01/2044 |
|
|
|
|
3,000 |
|
|
|
|
|
3,048 |
|
| North Texas Tollway Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 01/01/2038 |
|
|
|
|
2,750 |
|
|
|
|
|
2,917 |
|
| 5.500% due 09/01/2041 |
|
|
|
|
600 |
|
|
|
|
|
664 |
|
| San Juan Higher Education Finance Authority, Texas Revenue Bonds, Series 2010 |
|
| 6.700% due 08/15/2040 |
|
|
|
|
250 |
|
|
|
|
|
275 |
|
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2009 |
|
| 6.250% due 11/15/2029 |
|
|
|
|
4,000 |
|
|
|
|
|
4,071 |
|
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2016 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
6,400 |
|
|
|
|
|
6,583 |
|
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2017 |
|
| 6.750% due 11/15/2047 |
|
|
|
|
500 |
|
|
|
|
|
559 |
|
| Tender Option Bond Trust Receipts/Certificates, Texas General Obligation Bonds, Series
2009 |
|
| 7.920% due 08/01/2039 (e) |
|
|
|
|
1,000 |
|
|
|
|
|
1,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series
2006 |
|
| 5.250% due 12/15/2023 |
|
$ |
|
|
3,500 |
|
|
$ |
|
|
3,966 |
|
| Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series
2008 |
|
| 6.250% due 12/15/2026 |
|
|
|
|
6,500 |
|
|
|
|
|
7,573 |
|
| Texas State University System Revenue Bonds, Series 2018 |
|
| 4.100% due 03/15/2039 (d) |
|
|
|
|
3,200 |
|
|
|
|
|
3,275 |
|
| Texas Water Development Board Revenue Bonds, Series 2018 |
|
| 4.000% due 10/15/2038 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,205 |
|
| Uptown Development Authority, Texas Tax Allocation Bonds, Series 2009 |
|
| 5.500% due 09/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,044 |
|
| Wise County, Texas Revenue Bonds, Series 2011 |
|
| 8.000% due 08/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 1.5% |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2009 |
|
| 5.000% due 10/01/2022 |
|
|
|
|
4,000 |
|
|
|
|
|
3,910 |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2010 |
|
| 5.250% due 10/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UTAH 3.7% |
|
| Salt Lake County, Utah Revenue Bonds, (AMBAC Insured), Series 2001 |
|
| 5.125% due 02/15/2033 |
|
|
|
|
7,000 |
|
|
|
|
|
7,815 |
|
| Utah County, Utah Revenue Bonds, Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| VIRGINIA 2.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| Fairfax County, Virginia Industrial Development Authority Revenue Bonds, Series
2009 |
|
| 5.500% due 05/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,034 |
|
| Peninsula Town Center Community Development Authority, Virginia Revenue Bonds, Series
2007 |
|
| 6.450% due 09/01/2037 |
|
|
|
|
1,926 |
|
|
|
|
|
1,941 |
|
| Virginia Commonwealth Transportation Board Revenue Bonds, Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
3,850 |
|
|
|
|
|
4,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WASHINGTON 3.7% |
|
| Seattle, Washington Municipal Light and Power Revenue Bonds, Series 2018 |
|
| 4.000% due 01/01/2041 (d) |
|
|
|
|
3,600 |
|
|
|
|
|
3,774 |
|
| Tender Option Bond Trust Receipts/Certificates, Washington General Obligation Bonds, Series
2009 |
|
| 10.800% due 02/01/2034 (e) |
|
|
|
|
6,670 |
|
|
|
|
|
7,068 |
|
| Washington Health Care Facilities Authority Revenue Bonds, (AGC Insured), Series
2008 |
|
| 6.000% due 08/15/2039 |
|
|
|
|
700 |
|
|
|
|
|
734 |
|
| Washington Health Care Facilities Authority Revenue Bonds, Series 2009 |
|
| 7.375% due 03/01/2038 |
|
|
|
|
250 |
|
|
|
|
|
260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEST VIRGINIA 0.8% |
|
| Monongalia County, West Virginia Commission Special District Revenue Bonds, Series
2017 |
|
| 5.500% due 06/01/2037 |
|
|
|
|
1,000 |
|
|
|
|
|
1,036 |
|
| West Virginia Economic Development Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 06/15/2040 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 36 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| WISCONSIN 0.8% |
|
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series
2009 |
|
| 6.625% due 02/15/2039 |
|
$ |
|
|
500 |
|
|
$ |
|
|
516 |
|
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes (Cost $568,837) |
|
|
|
|
|
|
|
|
608,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
MARKET
VALUE (000S) |
|
| SHORT-TERM INSTRUMENTS 0.9% |
|
|
|
| REPURCHASE AGREEMENTS (g) 0.9% |
|
|
|
|
|
|
|
|
|
$ |
|
|
2,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Short-Term Instruments (Cost $2,815) |
|
|
|
|
|
|
|
|
|
|
2,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments in Securities (Cost $571,652) |
|
|
|
|
|
|
|
|
|
|
610,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments 188.8% (Cost $571,652) |
|
|
|
|
|
|
|
$ |
|
|
610,854 |
|
|
|
| Preferred Shares (58.7)% |
|
|
|
|
|
|
|
|
|
|
(190,000 |
) |
|
|
| Other Assets and Liabilities, net (30.10)% |
|
|
|
|
|
(97,228 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
|
|
|
|
|
$ |
|
|
323,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2018. |
(f) RESTRICTED SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issuer Description |
|
Coupon |
|
Maturity
Date |
|
|
Acquisition
Date |
|
|
Cost |
|
|
Market
Value |
|
|
Market Value
as Percentage
of Net Assets |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2011 |
|
0.000% |
|
|
11/15/2056 |
|
|
|
07/20/2007 |
|
|
|
$ 3 |
|
|
$ |
21 |
|
|
|
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 |
|
|
1.500 |
% |
|
|
06/29/2018 |
|
|
|
07/02/2018 |
|
|
$ |
2,815 |
|
|
U.S. Treasury Notes 2.750% due 11/15/2023 |
|
$ |
(2,874 |
) |
|
$ |
2,815 |
|
|
$ |
2,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
$ |
(2,874 |
) |
|
$ |
2,815 |
|
|
$ |
2,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BORROWINGS AND OTHER
FINANCING TRANSACTIONS SUMMARY
The following is
a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty |
|
Repurchase
Agreement
Proceeds
to be
Received(1) |
|
|
Payable for
Reverse
Repurchase
Agreements |
|
|
Payable for
Sale-Buyback
Transactions |
|
|
Securities
on Loan |
|
|
Total
Borrowings and
Other Financing
Transactions |
|
|
Collateral
Pledged/(Received) |
|
|
Net Exposure(2) |
|
| Global/Master Repurchase Agreement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FICC |
|
$ |
2,815 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
2,815 |
|
|
$ |
(2,874 |
) |
|
$ |
(59 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
2,815 |
|
|
$ |
0 |
|
|
$ |
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. |
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
37 |
Schedule of Investments PIMCO Municipal
Income Fund (Cont.)
June 30, 2018 (Unaudited)
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2018 in valuing the Fund’s assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alabama |
|
$ |
0 |
|
|
$ |
23,597 |
|
|
$ |
0 |
|
|
$ |
23,597 |
|
| Alaska |
|
|
0 |
|
|
|
3,507 |
|
|
|
0 |
|
|
|
3,507 |
|
| Arizona |
|
|
0 |
|
|
|
7,465 |
|
|
|
0 |
|
|
|
7,465 |
|
| Arkansas |
|
|
0 |
|
|
|
2,661 |
|
|
|
0 |
|
|
|
2,661 |
|
| California |
|
|
0 |
|
|
|
70,461 |
|
|
|
0 |
|
|
|
70,461 |
|
| Colorado |
|
|
0 |
|
|
|
14,968 |
|
|
|
0 |
|
|
|
14,968 |
|
| Connecticut |
|
|
0 |
|
|
|
7,956 |
|
|
|
0 |
|
|
|
7,956 |
|
| District of Columbia |
|
|
0 |
|
|
|
2,577 |
|
|
|
0 |
|
|
|
2,577 |
|
| Florida |
|
|
0 |
|
|
|
9,438 |
|
|
|
0 |
|
|
|
9,438 |
|
| Georgia |
|
|
0 |
|
|
|
15,013 |
|
|
|
0 |
|
|
|
15,013 |
|
| Hawaii |
|
|
0 |
|
|
|
5,834 |
|
|
|
0 |
|
|
|
5,834 |
|
| Illinois |
|
|
0 |
|
|
|
47,702 |
|
|
|
0 |
|
|
|
47,702 |
|
| Indiana |
|
|
0 |
|
|
|
2,505 |
|
|
|
0 |
|
|
|
2,505 |
|
| Iowa |
|
|
0 |
|
|
|
3,002 |
|
|
|
0 |
|
|
|
3,002 |
|
| Kansas |
|
|
0 |
|
|
|
4,367 |
|
|
|
0 |
|
|
|
4,367 |
|
| Kentucky |
|
|
0 |
|
|
|
1,085 |
|
|
|
0 |
|
|
|
1,085 |
|
| Louisiana |
|
|
0 |
|
|
|
7,647 |
|
|
|
0 |
|
|
|
7,647 |
|
| Maryland |
|
|
0 |
|
|
|
2,331 |
|
|
|
0 |
|
|
|
2,331 |
|
| Massachusetts |
|
|
0 |
|
|
|
11,512 |
|
|
|
0 |
|
|
|
11,512 |
|
| Michigan |
|
|
0 |
|
|
|
18,592 |
|
|
|
0 |
|
|
|
18,592 |
|
| Minnesota |
|
|
0 |
|
|
|
1,562 |
|
|
|
0 |
|
|
|
1,562 |
|
| Missouri |
|
|
0 |
|
|
|
6,526 |
|
|
|
0 |
|
|
|
6,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Nevada |
|
$ |
0 |
|
|
$ |
5,153 |
|
|
$ |
0 |
|
|
$ |
5,153 |
|
| New Jersey |
|
|
0 |
|
|
|
33,392 |
|
|
|
0 |
|
|
|
33,392 |
|
| New Mexico |
|
|
0 |
|
|
|
7,704 |
|
|
|
0 |
|
|
|
7,704 |
|
| New York |
|
|
0 |
|
|
|
93,484 |
|
|
|
0 |
|
|
|
93,484 |
|
| Ohio |
|
|
0 |
|
|
|
33,748 |
|
|
|
0 |
|
|
|
33,748 |
|
| Oklahoma |
|
|
0 |
|
|
|
1,711 |
|
|
|
0 |
|
|
|
1,711 |
|
| Oregon |
|
|
0 |
|
|
|
2,701 |
|
|
|
0 |
|
|
|
2,701 |
|
| Pennsylvania |
|
|
0 |
|
|
|
30,198 |
|
|
|
0 |
|
|
|
30,198 |
|
| Puerto Rico |
|
|
0 |
|
|
|
3,343 |
|
|
|
0 |
|
|
|
3,343 |
|
| Rhode Island |
|
|
0 |
|
|
|
2,319 |
|
|
|
0 |
|
|
|
2,319 |
|
| South Carolina |
|
|
0 |
|
|
|
8,878 |
|
|
|
0 |
|
|
|
8,878 |
|
| Tennessee |
|
|
0 |
|
|
|
15,163 |
|
|
|
0 |
|
|
|
15,163 |
|
| Texas |
|
|
0 |
|
|
|
59,237 |
|
|
|
0 |
|
|
|
59,237 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
4,762 |
|
|
|
0 |
|
|
|
4,762 |
|
| Utah |
|
|
0 |
|
|
|
11,943 |
|
|
|
0 |
|
|
|
11,943 |
|
| Virginia |
|
|
0 |
|
|
|
6,981 |
|
|
|
0 |
|
|
|
6,981 |
|
| Washington |
|
|
0 |
|
|
|
11,836 |
|
|
|
0 |
|
|
|
11,836 |
|
| West Virginia |
|
|
0 |
|
|
|
2,596 |
|
|
|
0 |
|
|
|
2,596 |
|
| Wisconsin |
|
|
0 |
|
|
|
2,582 |
|
|
|
0 |
|
|
|
2,582 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
2,815 |
|
|
|
0 |
|
|
|
2,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
610,854 |
|
|
$ |
0 |
|
|
$ |
610,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no
significant transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
|
|
| 38 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO Municipal Income Fund II
June 30, 2018 (Unaudited)
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| INVESTMENTS IN SECURITIES 192.5% |
|
|
|
| MUNICIPAL BONDS & NOTES 192.4% |
|
|
|
| ALABAMA 7.5% |
|
|
|
|
|
|
|
|
|
|
|
|
| Alabama Federal Aid Highway Financing Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 09/01/2035 (d) |
|
$ |
|
|
7,000 |
|
|
$ |
|
|
8,100 |
|
| 5.000% due 09/01/2036 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
8,083 |
|
| Alabama State Docks Department Revenue Bonds, Series 2010 |
|
| 6.000% due 10/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,184 |
|
| Jefferson County, Alabama Sewer Revenue Bonds, Series 2013 |
|
| 7.900% due 10/01/2050 (c) |
|
|
|
|
18,500 |
|
|
|
|
|
15,871 |
|
| 6.500% due 10/01/2053 |
|
|
|
|
18,000 |
|
|
|
|
|
21,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ARIZONA 12.2% |
|
| Pima County, Arizona Industrial Development Authority Revenue Bonds, Series
2008 |
|
| 5.000% due 09/01/2039 |
|
|
|
|
29,700 |
|
|
|
|
|
29,773 |
|
| Pima County, Arizona Industrial Development Authority Revenue Bonds, Series
2010 |
|
| 5.250% due 10/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,600 |
|
| Pinal County, Arizona Electric District No. 3, Revenue Bonds, Series
2011 |
|
| 5.250% due 07/01/2036 |
|
|
|
|
1,750 |
|
|
|
|
|
1,922 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
3,700 |
|
|
|
|
|
4,064 |
|
| Salt River Project Agricultural Improvement & Power District, Arizona Revenue Bonds,
Series 2009 |
|
| 5.000% due 01/01/2039 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,176 |
|
| Salt Verde Financial Corp., Arizona Revenue Bonds, Series 2007 |
|
| 5.000% due 12/01/2032 |
|
|
|
|
12,430 |
|
|
|
|
|
14,603 |
|
| 5.000% due 12/01/2037 |
|
|
|
|
22,400 |
|
|
|
|
|
27,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CALIFORNIA 17.8% |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
6,000 |
|
|
|
|
|
6,460 |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2013 |
|
| 5.250% due 04/01/2048 |
|
|
|
|
5,000 |
|
|
|
|
|
5,793 |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2014 |
|
| 5.000% due 10/01/2054 |
|
|
|
|
2,000 |
|
|
|
|
|
2,217 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2010 |
|
| 7.952% due 11/15/2036 (e) |
|
|
|
|
5,000 |
|
|
|
|
|
5,794 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,571 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
3,000 |
|
|
|
|
|
3,282 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 11/15/2046 (d) |
|
|
|
|
12,500 |
|
|
|
|
|
14,258 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
2,355 |
|
|
|
|
|
2,670 |
|
| California Pollution Control Financing Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 07/01/2037 |
|
|
|
|
990 |
|
|
|
|
|
997 |
|
| California State General Obligation Bonds, Series 2008 |
|
| 5.125% due 08/01/2036 |
|
|
|
|
5,200 |
|
|
|
|
|
5,216 |
|
| California State General Obligation Bonds, Series 2009 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
9,500 |
|
|
|
|
|
9,816 |
|
| California State General Obligation Bonds, Series 2010 |
|
| 5.250% due 11/01/2040 |
|
|
|
|
5,945 |
|
|
|
|
|
6,396 |
|
| 5.500% due 03/01/2040 |
|
|
|
|
5,750 |
|
|
|
|
|
6,107 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FHA Insured), Series
2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
4,890 |
|
|
|
|
|
5,162 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
17,415 |
|
|
|
|
|
18,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2010 |
|
| 5.000% due 11/01/2040 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,054 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2011 |
|
| 5.000% due 12/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,100 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
5,690 |
|
|
|
|
|
6,219 |
|
| California Statewide Communities Development Authority Revenue Notes, Series
2011 |
|
| 6.500% due 11/01/2021 |
|
|
|
|
415 |
|
|
|
|
|
449 |
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
1,750 |
|
|
|
|
|
2,501 |
|
| Montebello Unified School District, California General Obligation Bonds, (AGM Insured), Series
2008 |
|
| 5.000% due 08/01/2033 |
|
|
|
|
2,000 |
|
|
|
|
|
2,006 |
|
| Newport Beach, California Revenue Bonds, Series 2011 |
|
| 5.875% due 12/01/2030 |
|
|
|
|
3,000 |
|
|
|
|
|
3,421 |
|
| Peralta Community College District, California General Obligation Bonds, Series
2009 |
|
| 5.000% due 08/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
519 |
|
| San Marcos Unified School District, California General Obligation Bonds, Series
2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
3,300 |
|
|
|
|
|
3,636 |
|
| Santa Monica Community College District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2047 (d) |
|
|
|
|
10,375 |
|
|
|
|
|
10,984 |
|
| Torrance, California Revenue Bonds, Series 2010 |
|
| 5.000% due 09/01/2040 |
|
|
|
|
4,725 |
|
|
|
|
|
4,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
130,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COLORADO 2.4% |
|
| Aurora, Colorado Revenue Bonds, Series 2010 |
|
| 5.000% due 12/01/2040 |
|
|
|
|
5,800 |
|
|
|
|
|
6,111 |
|
| Board of Governors of Colorado State University System Revenue Bonds, Series
2017 |
|
| 4.000% due 03/01/2038 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,103 |
|
| Colorado Health Facilities Authority Revenue Bonds, Series 2010 |
|
| 5.000% due 01/01/2040 |
|
|
|
|
6,045 |
|
|
|
|
|
6,288 |
|
| Denver Health & Hospital Authority, Colorado Revenue Bonds, Series
2010 |
|
| 5.625% due 12/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,049 |
|
| Public Authority for Colorado Energy Revenue Bonds, Series 2008 |
|
| 6.500% due 11/15/2038 |
|
|
|
|
1,430 |
|
|
|
|
|
1,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONNECTICUT 0.3% |
|
| Connecticut State Health & Educational Facility Authority Revenue Bonds, Series
2011 |
|
| 5.000% due 07/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,058 |
|
| Harbor Point Infrastructure Improvement District, Connecticut Tax Allocation Bonds, Series
2010 |
|
| 7.875% due 04/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FLORIDA 6.4% |
|
| Brevard County, Florida Health Facilities Authority Revenue Bonds, Series
2009 |
|
| 7.000% due 04/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,040 |
|
| Broward County, Florida Airport System Revenue Bonds, Series 2009 |
|
| 5.375% due 10/01/2029 |
|
|
|
|
600 |
|
|
|
|
|
627 |
|
| Broward County, Florida Water & Sewer Utility Revenue Bonds, Series
2009 |
|
| 5.250% due 10/01/2034 (d) |
|
|
|
|
8,500 |
|
|
|
|
|
8,581 |
|
| Clearwater, Florida Water & Sewer Revenue Bonds, Series 2009 |
|
| 5.250% due 12/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,051 |
|
| Florida Development Finance Corp. Revenue Notes, Series 2011 |
|
| 6.500% due 06/15/2021 |
|
|
|
|
190 |
|
|
|
|
|
199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| Florida State General Obligation Bonds, Series 2009 |
|
| 5.000% due 06/01/2038 (d) |
|
$ |
|
|
7,900 |
|
|
$ |
|
|
7,999 |
|
| Florida State General Obligation Bonds, Series 2018 |
|
| 4.000% due 07/01/2040 (d) |
|
|
|
|
10,155 |
|
|
|
|
|
10,701 |
|
| Highlands County, Florida Health Facilities Authority Revenue Bonds, Series
2008 |
|
| 5.625% due 11/15/2037 |
|
|
|
|
3,000 |
|
|
|
|
|
3,160 |
|
| Orlando-Orange County, Florida Expressway Authority Revenue Bonds, Series
2010 |
|
| 5.000% due 07/01/2040 |
|
|
|
|
10,000 |
|
|
|
|
|
10,632 |
|
| South Miami Health Facilities Authority, Florida Revenue Bonds, Series 2017 |
|
| 5.000% due 08/15/2042 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GEORGIA 6.4% |
|
| Atlanta Department of Aviation, Georgia Revenue Bonds, Series 2010 |
|
| 5.000% due 01/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,567 |
|
| Atlanta Development Authority, Georgia Revenue Bonds, Series 2015 |
|
| 5.000% due 07/01/2044 |
|
|
|
|
3,895 |
|
|
|
|
|
4,293 |
|
| Atlanta Development Authority, Georgia Revenue Bonds, Series 2017 |
|
| 6.750% due 01/01/2035 |
|
|
|
|
7,500 |
|
|
|
|
|
7,282 |
|
| Fayette County, Georgia Hospital Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 07/01/2046 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,732 |
|
| Municipal Electric Authority of Georgia Revenue Bonds, Series 2015 |
|
| 5.000% due 07/01/2060 |
|
|
|
|
19,680 |
|
|
|
|
|
20,904 |
|
| Private Colleges & Universities Authority of Georgia Revenue Bonds, Series
2016 |
|
| 4.000% due 01/01/2046 (d) |
|
|
|
|
5,200 |
|
|
|
|
|
5,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| HAWAII 1.2% |
|
| Hawaii State General Obligation Bonds, Series 2016 |
|
| 4.000% due 10/01/2035 (d) |
|
|
|
|
4,420 |
|
|
|
|
|
4,674 |
|
| 4.000% due 10/01/2036 (d) |
|
|
|
|
3,635 |
|
|
|
|
|
3,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 20.4% |
|
| Chicago Board of Education, Illinois General Obligation Bonds, Series 2012 |
|
| 5.000% due 12/01/2042 |
|
|
|
|
8,000 |
|
|
|
|
|
8,009 |
|
| Chicago, Illinois General Obligation Bonds, Series 2007 |
|
| 5.500% due 01/01/2035 |
|
|
|
|
10,000 |
|
|
|
|
|
10,685 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
1,250 |
|
|
|
|
|
1,326 |
|
| Chicago, Illinois General Obligation Bonds, Series 2015 |
|
| 5.375% due 01/01/2029 |
|
|
|
|
14,100 |
|
|
|
|
|
15,208 |
|
| 5.500% due 01/01/2034 |
|
|
|
|
5,200 |
|
|
|
|
|
5,569 |
|
| 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 |
|
|
|
|
|
2,316 |
|
| Chicago, Illinois Special Assessment Bonds, Series 2003 |
|
| 6.625% due 12/01/2022 |
|
|
|
|
1,606 |
|
|
|
|
|
1,609 |
|
| 6.750% due 12/01/2032 |
|
|
|
|
5,290 |
|
|
|
|
|
5,318 |
|
| Hillside Village, Illinois Tax Allocation Bonds, Series 2008 |
|
| 6.550% due 01/01/2020 |
|
|
|
|
1,430 |
|
|
|
|
|
1,460 |
|
| 7.000% due 01/01/2028 |
|
|
|
|
2,900 |
|
|
|
|
|
2,960 |
|
| Illinois Finance Authority Revenue Bonds, Series 2007 |
|
| 5.750% due 05/15/2031 |
|
|
|
|
1,540 |
|
|
|
|
|
1,544 |
|
| 6.000% due 03/01/2037 ^(a) |
|
|
|
|
250 |
|
|
|
|
|
60 |
|
| Illinois Finance Authority Revenue Bonds, Series 2009 |
|
| 5.500% due 07/01/2037 |
|
|
|
|
5,000 |
|
|
|
|
|
5,000 |
|
| 7.125% due 11/15/2037 |
|
|
|
|
700 |
|
|
|
|
|
733 |
|
| Illinois Finance Authority Revenue Bonds, Series 2010 |
|
| 6.000% due 05/01/2028 (e) |
|
|
|
|
2,000 |
|
|
|
|
|
2,154 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
39 |
Schedule of Investments PIMCO Municipal
Income Fund II (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| Illinois Finance Authority Revenue Bonds, Series 2013 |
|
| 4.000% due 08/15/2042 (d) |
|
$ |
|
|
6,000 |
|
|
$ |
|
|
6,139 |
|
| Illinois Finance Authority Revenue Bonds, Series 2017 |
|
| 5.250% due 12/01/2052 |
|
|
|
|
2,800 |
|
|
|
|
|
2,892 |
|
| Illinois Sports Facilities Authority Revenue Bonds, (AMBAC Insured), Series
2001 |
|
| 5.500% due 06/15/2030 |
|
|
|
|
26,225 |
|
|
|
|
|
26,274 |
|
| Illinois State General Obligation Bonds, Series 2017 |
|
| 5.000% due 11/01/2029 |
|
|
|
|
2,500 |
|
|
|
|
|
2,649 |
|
| Illinois State General Obligation Bonds, Series 2018 |
|
| 4.625% due 05/01/2037 |
|
|
|
|
2,175 |
|
|
|
|
|
2,203 |
|
| 5.000% due 05/01/2041 |
|
|
|
|
1,500 |
|
|
|
|
|
1,569 |
|
| Illinois State General Obligation Notes, Series 2017 |
|
| 5.000% due 11/01/2027 |
|
|
|
|
15,000 |
|
|
|
|
|
16,013 |
|
| Illinois State Toll Highway Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 01/01/2041 (d) |
|
|
|
|
12,500 |
|
|
|
|
|
14,048 |
|
| Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM Insured), Series
2010 |
|
| 0.000% due 06/15/2045 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
2,936 |
|
| Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series
2012 |
|
| 0.000% due 12/15/2051 (b) |
|
|
|
|
5,000 |
|
|
|
|
|
926 |
|
| Regional Transportation Authority, Illinois Revenue Bonds, Series 2018 |
|
| 5.000% due 06/01/2038 (d) |
|
|
|
|
8,000 |
|
|
|
|
|
9,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INDIANA 0.2% |
|
| Vigo County, Indiana Hospital Authority Revenue Bonds, Series 2011 |
|
| 7.500% due 09/01/2022 |
|
|
|
|
1,340 |
|
|
|
|
|
1,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| IOWA 1.5% |
|
| Iowa Finance Authority Revenue Bonds, Series 2014 |
|
| 2.000% due 05/15/2056 ^ |
|
|
|
|
144 |
|
|
|
|
|
2 |
|
| 5.400% due 11/15/2046 ^ |
|
|
|
|
769 |
|
|
|
|
|
812 |
|
| Iowa Tobacco Settlement Authority Revenue Bonds, Series 2005 |
|
| 5.600% due 06/01/2034 |
|
|
|
|
10,350 |
|
|
|
|
|
10,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KANSAS 0.8% |
|
| Kansas Development Finance Authority Revenue Bonds, Series 2009 |
|
| 5.750% due 11/15/2038 |
|
|
|
|
500 |
|
|
|
|
|
528 |
|
| University of Kansas Hospital Authority Revenue Bonds, Series 2015 |
|
| 4.000% due 09/01/2040 (d) |
|
|
|
|
5,500 |
|
|
|
|
|
5,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KENTUCKY 0.1% |
|
| Kentucky Economic Development Finance Authority Revenue Bonds, Series 2010 |
|
| 6.375% due 06/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOUISIANA 1.8% |
|
| Louisiana Gasoline & Fuels Tax State Revenue Bonds, Series 2017 |
|
| 4.000% due 05/01/2045 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,248 |
|
| Louisiana Local Government Environmental Facilities & Community Development Authority
Revenue Bonds, Series 2010 |
|
| 5.875% due 10/01/2040 |
|
|
|
|
750 |
|
|
|
|
|
817 |
|
| 6.000% due 10/01/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,092 |
|
| 6.500% due 11/01/2035 |
|
|
|
|
450 |
|
|
|
|
|
494 |
|
| Louisiana Public Facilities Authority Revenue Bonds, Series 2011 |
|
| 6.500% due 05/15/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| Louisiana Public Facilities Authority Revenue Bonds, Series 2017 |
|
| 5.000% due 07/01/2057 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MARYLAND 1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
| Baltimore County, Maryland General Obligation Bonds, Series 2018 |
|
| 4.000% due 03/01/2045 (d) |
|
|
|
|
8,000 |
|
|
|
|
|
8,392 |
|
| Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Series
2010 |
|
| 6.250% due 01/01/2041 |
|
|
|
|
1,400 |
|
|
|
|
|
1,546 |
|
| Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Series
2011 |
|
| 5.000% due 08/15/2041 |
|
|
|
|
2,380 |
|
|
|
|
|
2,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MASSACHUSETTS 4.4% |
|
|
|
|
|
|
|
|
|
|
|
|
| Commonwealth of Massachusettes General Obligation Bonds, Series 2018 |
|
| 4.000% due 05/01/2037 (d) |
|
|
|
|
9,000 |
|
|
|
|
|
9,486 |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2010 |
|
| 7.000% due 07/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,104 |
|
| 7.625% due 10/15/2037 |
|
|
|
|
535 |
|
|
|
|
|
566 |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2016 |
|
| 4.000% due 10/01/2046 (d) |
|
|
|
|
5,200 |
|
|
|
|
|
5,366 |
|
| 5.000% due 01/01/2047 |
|
|
|
|
2,500 |
|
|
|
|
|
2,741 |
|
| Massachusetts State College Building Authority Revenue Bonds, Series 2009 |
|
| 5.500% due 05/01/2039 |
|
|
|
|
2,900 |
|
|
|
|
|
2,996 |
|
| University of Massachusetts Building Authority, Revenue Bonds, Series 2013 |
|
| 4.000% due 11/01/2043 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MICHIGAN 5.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| Michigan Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 12/01/2040 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,210 |
|
| 5.000% due 12/01/2031 (d) |
|
|
|
|
2,600 |
|
|
|
|
|
3,017 |
|
| 5.000% due 12/01/2046 (d) |
|
|
|
|
5,100 |
|
|
|
|
|
5,748 |
|
| Michigan Public Educational Facilities Authority Revenue Bonds, Series 2007 |
|
| 6.500% due 09/01/2037 ^ |
|
|
|
|
780 |
|
|
|
|
|
591 |
|
| Michigan State Building Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 10/15/2046 (d) |
|
|
|
|
3,500 |
|
|
|
|
|
3,941 |
|
| 5.000% due 10/15/2051 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,474 |
|
| Michigan State Hospital Finance Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 11/15/2047 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,171 |
|
| Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2008 |
|
| 0.000% due 06/01/2058 (b) |
|
|
|
|
25,000 |
|
|
|
|
|
783 |
|
| Royal Oak Hospital Finance Authority, Michigan Revenue Bonds, Series 2009 |
|
| 8.250% due 09/01/2039 |
|
|
|
|
3,000 |
|
|
|
|
|
3,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MINNESOTA 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
| St. Louis Park, Minnesota Revenue Bonds, Series 2009 |
|
| 5.750% due 07/01/2039 |
|
|
|
|
400 |
|
|
|
|
|
416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MISSISSIPPI 0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| Mississippi Development Bank Revenue Bonds, (AMBAC Insured), Series 1999 |
|
| 5.000% due 07/01/2024 |
|
|
|
|
40 |
|
|
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| MISSOURI 1.5% |
|
|
|
|
|
|
|
|
|
|
|
|
| Lee’s Summit, Missouri Tax Allocation Bonds, Series 2011 |
|
| 5.625% due 10/01/2023 |
|
$ |
|
|
145 |
|
|
$ |
|
|
149 |
|
| Missouri State Health & Educational Facilities Authority Revenue Bonds, Series
2013 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
10,000 |
|
|
|
|
|
10,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEBRASKA 1.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| Omaha Public Power District, Nebraska Revenue Bonds, Series 2012 |
|
| 4.000% due 02/01/2046 (d) |
|
|
|
|
11,350 |
|
|
|
|
|
11,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEVADA 1.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| Clark County, Nevada General Obligation Bonds, Series 2018 |
|
| 4.000% due 07/01/2044 (d) |
|
|
|
|
9,500 |
|
|
|
|
|
9,842 |
|
| Reno, Nevada Revenue Bonds, Series 2018 |
|
| 0.000% due 07/01/2058 (b) |
|
|
|
|
24,000 |
|
|
|
|
|
1,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW HAMPSHIRE 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| New Hampshire Business Finance Authority Revenue Bonds, Series 2009 |
|
| 6.125% due 10/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW JERSEY 4.1% |
|
| Burlington County, New Jersey Bridge Commission Revenue Bonds, Series 2007 |
|
| 5.625% due 01/01/2038 |
|
|
|
|
950 |
|
|
|
|
|
934 |
|
| New Jersey Economic Development Authority Revenue Bonds, Series 1998 |
|
| 6.000% due 05/15/2028 ^ |
|
|
|
|
525 |
|
|
|
|
|
383 |
|
| New Jersey Economic Development Authority Revenue Bonds, Series 2010 |
|
| 5.875% due 06/01/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,158 |
|
| New Jersey Economic Development Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 06/15/2041 |
|
|
|
|
5,000 |
|
|
|
|
|
5,348 |
|
| New Jersey Economic Development Authority Special Assessment Bonds, Series
2002 |
|
| 5.750% due 10/01/2021 |
|
|
|
|
2,825 |
|
|
|
|
|
2,984 |
|
| New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series
2011 |
|
| 6.000% due 07/01/2037 |
|
|
|
|
1,500 |
|
|
|
|
|
1,682 |
|
| New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series
2013 |
|
| 5.500% due 07/01/2043 |
|
|
|
|
4,000 |
|
|
|
|
|
4,510 |
|
| New Jersey Transportation Trust Fund Authority Revenue Bonds, (AGM Insured), Series
2006 |
|
| 0.000% due 12/15/2034 (b) |
|
|
|
|
2,500 |
|
|
|
|
|
1,282 |
|
| New Jersey Turnpike Authority Revenue Bonds, Series 2009 |
|
| 5.250% due 01/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,038 |
|
| South Jersey Port Corp., New Jersey Revenue Bonds, Series 2017 |
|
| 5.000% due 01/01/2049 |
|
|
|
|
1,010 |
|
|
|
|
|
1,101 |
|
| Tobacco Settlement Financing Corp., New Jersey Revenue Bonds, Series 2018 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
7,500 |
|
|
|
|
|
8,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW MEXICO 0.3% |
|
| Farmington, New Mexico Revenue Bonds, Series 2010 |
|
| 5.900% due 06/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 40 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| NEW YORK 26.1% |
|
| Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 07/01/2041 |
|
$ |
|
|
7,000 |
|
|
$ |
|
|
7,072 |
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds, Series 2011 |
|
| 5.250% due 02/15/2047 |
|
|
|
|
33,500 |
|
|
|
|
|
36,025 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2011 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
3,880 |
|
|
|
|
|
4,288 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2017 |
|
| 4.000% due 11/15/2042 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,296 |
|
| 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 |
|
|
|
|
|
878 |
|
| 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 |
|
|
|
|
|
20,842 |
|
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series
2017 |
|
| 4.000% due 08/01/2042 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,298 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2009 |
|
| 5.000% due 06/15/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,060 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2012 |
|
| 4.000% due 06/15/2047 (d) |
|
|
|
|
15,000 |
|
|
|
|
|
15,331 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2005 |
|
| 5.250% due 10/01/2035 (d) |
|
|
|
|
6,505 |
|
|
|
|
|
8,094 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2010 |
|
| 5.125% due 01/15/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,045 |
|
| 5.625% due 07/15/2047 |
|
|
|
|
2,500 |
|
|
|
|
|
2,645 |
|
| 6.375% due 07/15/2049 |
|
|
|
|
1,250 |
|
|
|
|
|
1,320 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2011 |
|
| 5.000% due 12/15/2041 |
|
|
|
|
10,000 |
|
|
|
|
|
10,828 |
|
| 5.750% due 11/15/2051 |
|
|
|
|
44,000 |
|
|
|
|
|
49,056 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
4,250 |
|
|
|
|
|
4,513 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
1,750 |
|
|
|
|
|
1,878 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
8,000 |
|
|
|
|
|
8,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
191,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NORTH DAKOTA 0.5% |
|
| Stark County, North Dakota Revenue Bonds, Series 2007 |
|
| 6.750% due 01/01/2033 |
|
|
|
|
3,710 |
|
|
|
|
|
3,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 15.0% |
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series
2007 |
|
| 5.125% due 06/01/2024 |
|
|
|
|
5,735 |
|
|
|
|
|
5,730 |
|
| 5.875% due 06/01/2047 |
|
|
|
|
29,400 |
|
|
|
|
|
29,526 |
|
| 6.250% due 06/01/2037 |
|
|
|
|
15,000 |
|
|
|
|
|
15,678 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
19,400 |
|
|
|
|
|
19,897 |
|
| Geisinger Authority, Pennsylvania Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
20,580 |
|
|
|
|
|
21,016 |
|
| Hamilton County, Ohio Sales Tax Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2030 |
|
|
|
|
3,900 |
|
|
|
|
|
4,238 |
|
| Ohio State Revenue Bonds, Series 2009 |
|
| 5.500% due 01/01/2039 |
|
|
|
|
3,000 |
|
|
|
|
|
3,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| Ohio State Turnpike Commission Revenue Bonds, Series 2013 |
|
| 5.000% due 02/15/2048 |
|
$ |
|
|
10,000 |
|
|
$ |
|
|
10,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OKLAHOMA 0.3% |
|
| Oklahoma Development Finance Authority Revenue Bonds, Series 2018 |
|
| 5.500% due 08/15/2057 |
|
|
|
|
2,000 |
|
|
|
|
|
2,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OREGON 0.3% |
|
| Clackamas County, Oregon Hospital Facility Authority Revenue Bonds, Series
2009 |
|
| 5.500% due 07/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,040 |
|
| Oregon State Department of Administrative Services Certificates of Participation Bonds, Series
2009 |
|
| 5.250% due 05/01/2039 |
|
|
|
|
1,155 |
|
|
|
|
|
1,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PENNSYLVANIA 8.5% |
|
| Berks County, Pennsylvania Industrial Development Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 11/01/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,005 |
|
| Berks County, Pennsylvania Municipal Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 11/01/2044 |
|
|
|
|
7,500 |
|
|
|
|
|
8,005 |
|
| Commonwealth of Pennsylvania General Obligation Bonds, Series 2018 |
|
| 4.000% due 03/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,061 |
|
| Cumberland County, Pennsylvania Municipal Authority Revenue Bonds, Series
2008 |
|
| 5.625% due 07/01/2028 |
|
|
|
|
1,000 |
|
|
|
|
|
1,003 |
|
| 6.000% due 07/01/2035 |
|
|
|
|
670 |
|
|
|
|
|
672 |
|
| Luzerne County, Pennsylvania Industrial Development Authority Revenue Bonds, Series
2009 |
|
| 5.500% due 12/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
525 |
|
| Montgomery County Industrial Development Authority, Pennsylvania Revenue Bonds, (FHA Insured),
Series 2010 |
|
| 5.375% due 08/01/2038 |
|
|
|
|
8,465 |
|
|
|
|
|
9,103 |
|
| Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series
2010 |
|
| 5.000% due 03/01/2040 |
|
|
|
|
400 |
|
|
|
|
|
421 |
|
| 6.000% due 07/01/2043 |
|
|
|
|
850 |
|
|
|
|
|
920 |
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series 2013 |
|
| 5.000% due 12/01/2043 |
|
|
|
|
10,000 |
|
|
|
|
|
10,976 |
|
| Philadelphia Hospitals & Higher Education Facilities Authority, Pennsylvania Revenue
Bonds, Series 2012 |
|
| 5.625% due 07/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,090 |
|
| 5.625% due 07/01/2042 |
|
|
|
|
7,000 |
|
|
|
|
|
7,596 |
|
| Philadelphia, Pennsylvania General Obligation Bonds, (AGM Insured), Series
2008 |
|
| 5.250% due 12/15/2032 |
|
|
|
|
17,000 |
|
|
|
|
|
17,292 |
|
| Philadelphia, Pennsylvania Water & Wastewater Revenue Bonds, Series
2009 |
|
| 5.250% due 01/01/2036 |
|
|
|
|
500 |
|
|
|
|
|
509 |
|
| Westmoreland County Industrial Development Authority, Pennsylvania Revenue Bonds, Series
2010 |
|
| 5.125% due 07/01/2030 |
|
|
|
|
1,000 |
|
|
|
|
|
1,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.2% |
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM Insured), Series
2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
7,000 |
|
|
|
|
|
7,799 |
|
| Puerto Rico Highway & Transportation Authority Revenue Bonds, (AGC Insured), Series
2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
600 |
|
|
|
|
|
670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| RHODE ISLAND 4.2% |
|
| Narragansett Bay Commission, Rhode Island Revenue Bonds, Series 2013 |
|
| 4.000% due 09/01/2043 (d) |
|
$ |
|
|
12,000 |
|
|
$ |
|
|
12,188 |
|
| Tobacco Settlement Financing Corp., Rhode Island Revenue Bonds, Series 2015 |
|
| 5.000% due 06/01/2050 |
|
|
|
|
18,450 |
|
|
|
|
|
19,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SOUTH CAROLINA 1.6% |
|
| Greenwood County, South Carolina Revenue Bonds, Series 2009 |
|
| 5.375% due 10/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,046 |
|
| South Carolina State Public Service Authority Revenue Bonds, Series 2013 |
|
| 5.500% due 12/01/2053 |
|
|
|
|
10,000 |
|
|
|
|
|
10,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TENNESSEE 2.7% |
|
| Bristol Industrial Development Board, Tennessee Revenue Bonds, Series 2016 |
|
| 0.000% due 12/01/2031 (b) |
|
|
|
|
3,975 |
|
|
|
|
|
1,846 |
|
| 5.125% due 12/01/2042 |
|
|
|
|
5,000 |
|
|
|
|
|
4,859 |
|
| Claiborne County, Tennessee Industrial Development Board Revenue Bonds, Series
2009 |
|
| 6.625% due 10/01/2039 |
|
|
|
|
1,750 |
|
|
|
|
|
1,824 |
|
| Johnson City Health & Educational Facilities Board, Tennessee Revenue Bonds, Series
2010 |
|
| 6.000% due 07/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,084 |
|
| Tennessee Energy Acquisition Corp. Revenue Bonds, Series 2006 |
|
| 5.000% due 02/01/2023 |
|
|
|
|
3,000 |
|
|
|
|
|
3,317 |
|
| 5.000% due 02/01/2027 |
|
|
|
|
6,000 |
|
|
|
|
|
6,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TEXAS 22.7% |
|
| Dallas, Texas Civic Center Revenue Bonds, (AGC Insured), Series 2009 |
|
| 5.250% due 08/15/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,591 |
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2013 |
|
| 5.000% due 04/01/2053 |
|
|
|
|
21,000 |
|
|
|
|
|
23,013 |
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2018 |
|
| 5.000% due 10/01/2048 (d) |
|
|
|
|
7,500 |
|
|
|
|
|
8,629 |
|
| Harris County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2009 |
|
| 5.250% due 10/01/2029 |
|
|
|
|
3,750 |
|
|
|
|
|
3,919 |
|
| 5.500% due 10/01/2039 |
|
|
|
|
12,700 |
|
|
|
|
|
13,295 |
|
| Houston Community College System, Texas General Obligation Bonds, Series 2013 |
|
| 4.000% due 02/15/2043 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,224 |
|
| New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series
2017 |
|
| 4.000% due 08/15/2034 (d) |
|
|
|
|
700 |
|
|
|
|
|
728 |
|
| 4.000% due 08/15/2035 (d) |
|
|
|
|
1,400 |
|
|
|
|
|
1,452 |
|
| 4.000% due 08/15/2036 (d) |
|
|
|
|
1,330 |
|
|
|
|
|
1,376 |
|
| 4.000% due 08/15/2037 (d) |
|
|
|
|
1,620 |
|
|
|
|
|
1,675 |
|
| 4.000% due 08/15/2040 (d) |
|
|
|
|
1,800 |
|
|
|
|
|
1,854 |
|
| North Harris County, Texas Regional Water Authority Revenue Bonds, Series
2008 |
|
| 5.250% due 12/15/2033 |
|
|
|
|
10,300 |
|
|
|
|
|
10,475 |
|
| 5.500% due 12/15/2038 |
|
|
|
|
10,300 |
|
|
|
|
|
10,486 |
|
| North Texas Tollway Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 01/01/2038 |
|
|
|
|
5,750 |
|
|
|
|
|
6,098 |
|
| 5.500% due 09/01/2041 |
|
|
|
|
1,300 |
|
|
|
|
|
1,440 |
|
| San Antonio Public Facilities Corp., Texas Revenue Bonds, Series 2012 |
|
| 4.000% due 09/15/2042 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,166 |
|
| San Juan Higher Education Finance Authority, Texas Revenue Bonds, Series 2010 |
|
| 6.700% due 08/15/2040 |
|
|
|
|
250 |
|
|
|
|
|
275 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
41 |
Schedule of Investments PIMCO Municipal
Income Fund II (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2009 |
|
| 6.250% due 11/15/2029 |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,053 |
|
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2016 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
13,600 |
|
|
|
|
|
13,989 |
|
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2017 |
|
| 6.750% due 11/15/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,118 |
|
| Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series
2008 |
|
| 6.250% due 12/15/2026 |
|
|
|
|
19,380 |
|
|
|
|
|
22,579 |
|
| Texas State University System Revenue Bonds, Series 2018 |
|
| 4.100% due 03/15/2039 (d) |
|
|
|
|
6,800 |
|
|
|
|
|
6,959 |
|
| Texas Water Development Board Revenue Bonds, Series 2018 |
|
| 4.000% due 10/15/2038 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,512 |
|
| Wise County, Texas Revenue Bonds, Series 2011 |
|
| 8.000% due 08/15/2034 |
|
|
|
|
1,000 |
|
|
|
|
|
1,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
167,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 1.4% |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2009 |
|
| 5.000% due 10/01/2022 |
|
|
|
|
1,100 |
|
|
|
|
|
1,075 |
|
| 6.625% due 10/01/2029 |
|
|
|
|
2,485 |
|
|
|
|
|
2,106 |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2010 |
|
| 5.000% due 10/01/2025 |
|
|
|
|
8,500 |
|
|
|
|
|
7,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UTAH 0.4% |
|
| Utah County, Utah Revenue Bonds, Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| VIRGINIA 2.9% |
|
| Fairfax County, Virginia Industrial Development Authority Revenue Bonds, Series
2009 |
|
| 5.500% due 05/15/2035 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,034 |
|
| 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 |
|
|
|
|
|
1,234 |
|
| University of Virginia Revenue Bonds, Series 2018 |
|
| 4.000% due 08/01/2048 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,508 |
|
| Virginia Commonwealth Transportation Board Revenue Bonds, Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
8,200 |
|
|
|
|
|
8,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WASHINGTON 1.4% |
|
| Seattle, Washington Municipal Light and Power Revenue Bonds, Series 2018 |
|
| 4.000% due 01/01/2041 (d) |
|
|
|
|
7,735 |
|
|
|
|
|
8,109 |
|
| Washington Health Care Facilities Authority Revenue Bonds, (AGC Insured), Series
2008 |
|
| 6.000% due 08/15/2039 |
|
|
|
|
1,300 |
|
|
|
|
|
1,363 |
|
| Washington Health Care Facilities Authority Revenue Bonds, Series 2009 |
|
| 7.375% due 03/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEST VIRGINIA 0.9% |
|
| Monongalia County, West Virginia Commission Special District Revenue Bonds, Series
2017 |
|
| 5.500% due 06/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,073 |
|
| West Virginia Economic Development Authority Revenue Bonds, Series 2010 |
|
| 5.375% due 12/01/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,140 |
|
| West Virginia Economic Development Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 06/15/2040 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL AMOUNT (000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| WISCONSIN 2.4% |
|
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series
2009 |
|
| 6.625% due 02/15/2039 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,031 |
|
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series
2016 |
|
| 4.000% due 11/15/2046 (d) |
|
|
|
|
13,085 |
|
|
|
|
|
13,306 |
|
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $1,335,713) |
|
|
|
|
|
1,415,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 0.1% |
|
|
|
| REPURCHASE AGREEMENTS (f) 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Short-Term Instruments (Cost $857) |
|
|
|
|
|
857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $1,336,570) |
|
|
|
|
|
1,415,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments 192.5% (Cost $1,336,570) |
|
|
$ |
|
|
1,415,878 |
|
|
|
| Preferred Shares (49.9)% |
|
|
|
|
|
(367,000 |
) |
|
|
| Other Assets and Liabilities, net (42.6)% |
|
|
(313,352 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
735,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 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 |
|
|
1.500 |
% |
|
|
06/29/2018 |
|
|
|
07/02/2018 |
|
|
$ |
857 |
|
|
U.S. Treasury Notes 2.750% due 11/15/2023 |
|
$ |
(878 |
) |
|
$ |
857 |
|
|
$ |
857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
$ |
(878 |
) |
|
$ |
857 |
|
|
$ |
857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 42 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 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 |
|
$ |
857 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
857 |
|
|
$ |
(878 |
) |
|
$ |
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
857 |
|
|
$ |
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 June 30, 2018 in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alabama |
|
$ |
0 |
|
|
$ |
55,429 |
|
|
$ |
0 |
|
|
$ |
55,429 |
|
| Arizona |
|
|
0 |
|
|
|
89,384 |
|
|
|
0 |
|
|
|
89,384 |
|
| California |
|
|
0 |
|
|
|
130,988 |
|
|
|
0 |
|
|
|
130,988 |
|
| Colorado |
|
|
0 |
|
|
|
17,545 |
|
|
|
0 |
|
|
|
17,545 |
|
| Connecticut |
|
|
0 |
|
|
|
2,439 |
|
|
|
0 |
|
|
|
2,439 |
|
| Florida |
|
|
0 |
|
|
|
47,378 |
|
|
|
0 |
|
|
|
47,378 |
|
| Georgia |
|
|
0 |
|
|
|
47,239 |
|
|
|
0 |
|
|
|
47,239 |
|
| Hawaii |
|
|
0 |
|
|
|
8,497 |
|
|
|
0 |
|
|
|
8,497 |
|
| Illinois |
|
|
0 |
|
|
|
149,937 |
|
|
|
0 |
|
|
|
149,937 |
|
| Indiana |
|
|
0 |
|
|
|
1,477 |
|
|
|
0 |
|
|
|
1,477 |
|
| Iowa |
|
|
0 |
|
|
|
11,264 |
|
|
|
0 |
|
|
|
11,264 |
|
| Kansas |
|
|
0 |
|
|
|
6,110 |
|
|
|
0 |
|
|
|
6,110 |
|
| Kentucky |
|
|
0 |
|
|
|
1,085 |
|
|
|
0 |
|
|
|
1,085 |
|
| Louisiana |
|
|
0 |
|
|
|
12,983 |
|
|
|
0 |
|
|
|
12,983 |
|
| Maryland |
|
|
0 |
|
|
|
12,502 |
|
|
|
0 |
|
|
|
12,502 |
|
| Massachusetts |
|
|
0 |
|
|
|
32,458 |
|
|
|
0 |
|
|
|
32,458 |
|
| Michigan |
|
|
0 |
|
|
|
38,968 |
|
|
|
0 |
|
|
|
38,968 |
|
| Minnesota |
|
|
0 |
|
|
|
416 |
|
|
|
0 |
|
|
|
416 |
|
| Mississippi |
|
|
0 |
|
|
|
40 |
|
|
|
0 |
|
|
|
40 |
|
| Missouri |
|
|
0 |
|
|
|
10,897 |
|
|
|
0 |
|
|
|
10,897 |
|
| Nebraska |
|
|
0 |
|
|
|
11,551 |
|
|
|
0 |
|
|
|
11,551 |
|
| Nevada |
|
|
0 |
|
|
|
11,675 |
|
|
|
0 |
|
|
|
11,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| New Hampshire |
|
$ |
0 |
|
|
$ |
2,113 |
|
|
$ |
0 |
|
|
$ |
2,113 |
|
| New Jersey |
|
|
0 |
|
|
|
30,497 |
|
|
|
0 |
|
|
|
30,497 |
|
| New Mexico |
|
|
0 |
|
|
|
2,131 |
|
|
|
0 |
|
|
|
2,131 |
|
| New York |
|
|
0 |
|
|
|
191,868 |
|
|
|
0 |
|
|
|
191,868 |
|
| North Dakota |
|
|
0 |
|
|
|
3,719 |
|
|
|
0 |
|
|
|
3,719 |
|
| Ohio |
|
|
0 |
|
|
|
110,020 |
|
|
|
0 |
|
|
|
110,020 |
|
| Oklahoma |
|
|
0 |
|
|
|
2,281 |
|
|
|
0 |
|
|
|
2,281 |
|
| Oregon |
|
|
0 |
|
|
|
2,231 |
|
|
|
0 |
|
|
|
2,231 |
|
| Pennsylvania |
|
|
0 |
|
|
|
62,225 |
|
|
|
0 |
|
|
|
62,225 |
|
| Puerto Rico |
|
|
0 |
|
|
|
8,469 |
|
|
|
0 |
|
|
|
8,469 |
|
| Rhode Island |
|
|
0 |
|
|
|
31,235 |
|
|
|
0 |
|
|
|
31,235 |
|
| South Carolina |
|
|
0 |
|
|
|
11,865 |
|
|
|
0 |
|
|
|
11,865 |
|
| Tennessee |
|
|
0 |
|
|
|
19,773 |
|
|
|
0 |
|
|
|
19,773 |
|
| Texas |
|
|
0 |
|
|
|
167,014 |
|
|
|
0 |
|
|
|
167,014 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
10,640 |
|
|
|
0 |
|
|
|
10,640 |
|
| Utah |
|
|
0 |
|
|
|
3,096 |
|
|
|
0 |
|
|
|
3,096 |
|
| Virginia |
|
|
0 |
|
|
|
21,344 |
|
|
|
0 |
|
|
|
21,344 |
|
| Washington |
|
|
0 |
|
|
|
10,510 |
|
|
|
0 |
|
|
|
10,510 |
|
| West Virginia |
|
|
0 |
|
|
|
6,292 |
|
|
|
0 |
|
|
|
6,292 |
|
| Wisconsin |
|
|
0 |
|
|
|
17,436 |
|
|
|
0 |
|
|
|
17,436 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
857 |
|
|
|
0 |
|
|
|
857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
1,415,878 |
|
|
$ |
0 |
|
|
$ |
1,415,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no
significant transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
43 |
Schedule of Investments PIMCO 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 191.1% |
|
|
|
| MUNICIPAL BONDS & NOTES 189.0% |
|
|
|
| ALABAMA 9.4% |
|
| Alabama Special Care Facilities Financing Authority-Birmingham, Alabama Revenue Bonds, (AGC
Insured), Series 2009 |
|
| 6.000% due 06/01/2039 |
|
$ |
|
|
500 |
|
|
$ |
|
|
520 |
|
| Alabama State Docks Department Revenue Bonds, Series 2010 |
|
| 6.000% due 10/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,092 |
|
| Jefferson County, Alabama Sewer Revenue Bonds, Series 2013 |
|
| 7.900% due 10/01/2050 (c) |
|
|
|
|
19,000 |
|
|
|
|
|
16,300 |
|
| 6.500% due 10/01/2053 |
|
|
|
|
7,500 |
|
|
|
|
|
8,830 |
|
| Lower Alabama Gas District Revenue Bonds, Series 2016 |
|
| 5.000% due 09/01/2046 |
|
|
|
|
5,500 |
|
|
|
|
|
6,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ARIZONA 9.3% |
|
| Pima County, Arizona Industrial Development Authority Revenue Bonds, Series
2008 |
|
| 5.000% due 09/01/2039 (d) |
|
|
|
|
13,000 |
|
|
|
|
|
13,032 |
|
| Pima County, Arizona Industrial Development Authority Revenue Bonds, Series
2010 |
|
| 5.250% due 10/01/2040 |
|
|
|
|
750 |
|
|
|
|
|
800 |
|
| Salt River Project Agricultural Improvement & Power District, Arizona Revenue Bonds,
Series 2009 |
|
| 5.000% due 01/01/2039 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,088 |
|
| Salt Verde Financial Corp., Arizona Revenue Bonds, Series 2007 |
|
| 5.000% due 12/01/2037 |
|
|
|
|
11,600 |
|
|
|
|
|
14,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CALIFORNIA 21.1% |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
1,500 |
|
|
|
|
|
1,615 |
|
| 5.000% due 10/01/2042 |
|
|
|
|
3,260 |
|
|
|
|
|
3,510 |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2013 |
|
| 5.250% due 04/01/2053 |
|
|
|
|
12,000 |
|
|
|
|
|
13,904 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2009 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
2,500 |
|
|
|
|
|
2,614 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
1,500 |
|
|
|
|
|
1,641 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2013 |
|
| 5.000% due 08/15/2052 |
|
|
|
|
2,015 |
|
|
|
|
|
2,204 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
1,180 |
|
|
|
|
|
1,338 |
|
| California State General Obligation Bonds, Series 2009 |
|
| 5.750% due 04/01/2031 |
|
|
|
|
2,500 |
|
|
|
|
|
2,578 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
5,000 |
|
|
|
|
|
5,166 |
|
| California State General Obligation Bonds, Series 2010 |
|
| 5.250% due 11/01/2040 |
|
|
|
|
1,300 |
|
|
|
|
|
1,399 |
|
| 5.500% due 03/01/2040 |
|
|
|
|
3,200 |
|
|
|
|
|
3,399 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FHA Insured), Series
2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
2,580 |
|
|
|
|
|
2,724 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
9,200 |
|
|
|
|
|
9,724 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2010 |
|
| 6.250% due 10/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,046 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2011 |
|
| 5.000% due 12/01/2041 |
|
|
|
|
3,000 |
|
|
|
|
|
3,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series
2007 |
|
| 5.125% due 06/01/2047 |
|
$ |
|
|
3,600 |
|
|
$ |
|
|
3,600 |
|
| 5.750% due 06/01/2047 |
|
|
|
|
1,055 |
|
|
|
|
|
1,055 |
|
| Los Angeles Community College District, California General Obligation Bonds, Series
2009 |
|
| 10.863% due 08/01/2033 (e) |
|
|
|
|
1,675 |
|
|
|
|
|
1,689 |
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,858 |
|
| Palomar Health, California Certificates of Participation Bonds, Series 2009 |
|
| 6.750% due 11/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,337 |
|
| San Marcos Unified School District, California General Obligation Bonds, Series
2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,600 |
|
|
|
|
|
1,763 |
|
| Tobacco Securitization Authority of Southern California Revenue Bonds, Series
2006 |
|
| 5.000% due 06/01/2037 |
|
|
|
|
6,200 |
|
|
|
|
|
6,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COLORADO 1.4% |
|
| Board of Governors of Colorado State University System Revenue Bonds, Series
2017 |
|
| 4.000% due 03/01/2038 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,577 |
|
| Colorado Health Facilities Authority Revenue Bonds, Series 2010 |
|
| 5.000% due 01/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,081 |
|
| Public Authority for Colorado Energy Revenue Bonds, Series 2008 |
|
| 6.500% due 11/15/2038 |
|
|
|
|
500 |
|
|
|
|
|
697 |
|
| Regional Transportation District, Colorado Revenue Bonds, Series 2010 |
|
| 6.000% due 01/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONNECTICUT 0.4% |
|
| Harbor Point Infrastructure Improvement District, Connecticut Tax Allocation Bonds, Series
2010 |
|
| 7.875% due 04/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DISTRICT OF COLUMBIA 2.8% |
|
| District of Columbia Water & Sewer Authority Revenue Bonds, Series
2009 |
|
| 5.500% due 10/01/2039 (d) |
|
|
|
|
10,000 |
|
|
|
|
|
10,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FLORIDA 7.4% |
|
| Broward County, Florida Airport System Revenue Bonds, Series 2009 |
|
| 5.375% due 10/01/2029 |
|
|
|
|
500 |
|
|
|
|
|
522 |
|
| Broward County, Florida Water & Sewer Utility Revenue Bonds, Series
2009 |
|
| 5.250% due 10/01/2034 (d) |
|
|
|
|
4,500 |
|
|
|
|
|
4,543 |
|
| Cape Coral, Florida Water & Sewer Revenue Bonds, (AGM Insured), Series
2011 |
|
| 5.000% due 10/01/2041 |
|
|
|
|
3,000 |
|
|
|
|
|
3,297 |
|
| Florida Development Finance Corp. Revenue Notes, Series 2011 |
|
| 6.500% due 06/15/2021 |
|
|
|
|
190 |
|
|
|
|
|
199 |
|
| Florida State General Obligation Bonds, Series 2009 |
|
| 5.000% due 06/01/2038 (d) |
|
|
|
|
4,200 |
|
|
|
|
|
4,253 |
|
| Greater Orlando Aviation Authority, Florida Revenue Bonds, Series 2010 |
|
| 7.952% due 10/01/2039 (e) |
|
|
|
|
5,000 |
|
|
|
|
|
5,635 |
|
| Miami-Dade County, Florida Educational Facilities Authority Revenue Bonds, Series
2018 |
|
| 4.000% due 04/01/2053 |
|
|
|
|
4,000 |
|
|
|
|
|
4,064 |
|
| South Miami Health Facilities Authority, Florida Revenue Bonds, Series 2017 |
|
| 4.000% due 08/15/2047 (d) |
|
|
|
|
3,750 |
|
|
|
|
|
3,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| GEORGIA 5.6% |
|
| Atlanta Development Authority, Georgia Revenue Bonds, Series 2017 |
|
| 6.750% due 01/01/2035 |
|
$ |
|
|
3,600 |
|
|
$ |
|
|
3,495 |
|
| Fayette County, Georgia Hospital Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 07/01/2046 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,314 |
|
| Municipal Electric Authority of Georgia Revenue Bonds, Series 2015 |
|
| 5.000% due 07/01/2060 |
|
|
|
|
10,000 |
|
|
|
|
|
10,560 |
|
| Private Colleges & Universities Authority of Georgia Revenue Bonds, Series
2016 |
|
| 4.000% due 10/01/2038 (d) |
|
|
|
|
2,500 |
|
|
|
|
|
2,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| HAWAII 1.6% |
|
| Hawaii Pacific Health Revenue Bonds, Series 2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,612 |
|
| Hawaii State General Obligation Bonds, Series 2016 |
|
| 4.000% due 10/01/2035 (d) |
|
|
|
|
2,135 |
|
|
|
|
|
2,258 |
|
| 4.000% due 10/01/2036 (d) |
|
|
|
|
1,755 |
|
|
|
|
|
1,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 15.3% |
|
| Chicago Board of Education, Illinois General Obligation Bonds, Series 2012 |
|
| 5.000% due 12/01/2042 |
|
|
|
|
4,000 |
|
|
|
|
|
4,004 |
|
| Chicago, Illinois General Obligation Bonds, Series 2007 |
|
| 5.500% due 01/01/2035 |
|
|
|
|
400 |
|
|
|
|
|
427 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,061 |
|
| Chicago, Illinois General Obligation Bonds, Series 2015 |
|
| 5.375% due 01/01/2029 |
|
|
|
|
7,200 |
|
|
|
|
|
7,765 |
|
| 5.500% due 01/01/2034 |
|
|
|
|
2,665 |
|
|
|
|
|
2,854 |
|
| Chicago, Illinois General Obligation Bonds, Series 2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
3,000 |
|
|
|
|
|
3,385 |
|
| Chicago, Illinois Revenue Bonds, Series 2002 |
|
| 5.000% due 01/01/2027 |
|
|
|
|
1,750 |
|
|
|
|
|
2,027 |
|
| Chicago, Illinois Waterworks Revenue Bonds, Series 2012 |
|
| 4.000% due 11/01/2037 |
|
|
|
|
3,750 |
|
|
|
|
|
3,760 |
|
| 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 |
|
| 5.500% due 07/01/2037 |
|
|
|
|
5,000 |
|
|
|
|
|
5,000 |
|
| 7.125% due 11/15/2037 |
|
|
|
|
400 |
|
|
|
|
|
419 |
|
| Illinois Finance Authority Revenue Bonds, Series 2010 |
|
| 6.000% due 08/15/2038 (e) |
|
|
|
|
1,000 |
|
|
|
|
|
1,066 |
|
| Illinois Finance Authority Revenue Bonds, Series 2013 |
|
| 4.000% due 08/15/2042 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,070 |
|
| Illinois Finance Authority Revenue Bonds, Series 2017 |
|
| 5.250% due 12/01/2052 |
|
|
|
|
1,250 |
|
|
|
|
|
1,291 |
|
| Illinois State General Obligation Bonds, Series 2018 |
|
| 4.625% due 05/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,026 |
|
| 5.000% due 05/01/2041 |
|
|
|
|
1,500 |
|
|
|
|
|
1,569 |
|
| Illinois State General Obligation Notes, Series 2017 |
|
| 5.000% due 11/01/2027 |
|
|
|
|
7,000 |
|
|
|
|
|
7,473 |
|
| Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM Insured), Series
2010 |
|
| 0.000% due 06/15/2045 (b) |
|
|
|
|
6,500 |
|
|
|
|
|
1,908 |
|
| Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series
2012 |
|
| 0.000% due 12/15/2051 (b) |
|
|
|
|
2,500 |
|
|
|
|
|
463 |
|
| Regional Transportation Authority, Illinois Revenue Bonds, Series 2018 |
|
| 5.000% due 06/01/2038 (d) |
|
|
|
|
3,900 |
|
|
|
|
|
4,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 44 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INDIANA 0.6% |
|
| Vigo County, Indiana Hospital Authority Revenue Bonds, Series 2011 |
|
| 7.500% due 09/01/2022 |
|
$ |
|
|
1,975 |
|
|
$ |
|
|
2,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| IOWA 0.1% |
|
| Iowa Finance Authority Revenue Bonds, Series 2014 |
|
| 2.000% due 05/15/2056 ^ |
|
|
|
|
76 |
|
|
|
|
|
1 |
|
| 5.400% due 11/15/2046 ^ |
|
|
|
|
403 |
|
|
|
|
|
426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KANSAS 0.6% |
|
| University of Kansas Hospital Authority Revenue Bonds, Series 2015 |
|
| 4.000% due 09/01/2040 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KENTUCKY 1.5% |
|
| Kentucky Economic Development Finance Authority Revenue Bonds, Series 2010 |
|
| 6.375% due 06/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,171 |
|
| Kentucky Economic Development Finance Authority Revenue Bonds, Series 2017 |
|
| 5.000% due 08/15/2046 |
|
|
|
|
3,000 |
|
|
|
|
|
3,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOUISIANA 2.7% |
|
| Louisiana Gasoline & Fuels Tax State Revenue Bonds, Series 2017 |
|
| 4.000% due 05/01/2045 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,142 |
|
| Louisiana Local Government Environmental Facilities & Community Development Authority
Revenue Bonds, Series 2010 |
|
| 5.875% due 10/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,633 |
|
| 6.000% due 10/01/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,092 |
|
| 6.500% due 11/01/2035 |
|
|
|
|
400 |
|
|
|
|
|
439 |
|
| Louisiana Public Facilities Authority Revenue Bonds, Series 2011 |
|
| 6.500% due 05/15/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MARYLAND 1.9% |
|
| Baltimore County, Maryland General Obligation Bonds, Series 2018 |
|
| 4.000% due 03/01/2045 (d) |
|
|
|
|
3,600 |
|
|
|
|
|
3,776 |
|
| Maryland Economic Development Corp. Revenue Bonds, Series 2010 |
|
| 5.750% due 06/01/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,076 |
|
| Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Series
2010 |
|
| 6.250% due 01/01/2041 |
|
|
|
|
700 |
|
|
|
|
|
773 |
|
| Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Series
2011 |
|
| 6.000% due 07/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MASSACHUSETTS 8.4% |
|
| Commonwealth of Massachusettes General Obligation Bonds, Series 2018 |
|
| 4.000% due 05/01/2037 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,216 |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2010 |
|
| 7.625% due 10/15/2037 |
|
|
|
|
275 |
|
|
|
|
|
291 |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2011 |
|
| 5.500% due 11/15/2056 (b)(f) |
|
|
|
|
140 |
|
|
|
|
|
29 |
|
| 6.250% due 11/15/2039 |
|
|
|
|
529 |
|
|
|
|
|
548 |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2016 |
|
| 4.000% due 10/01/2046 (d) |
|
|
|
|
2,500 |
|
|
|
|
|
2,580 |
|
| 5.000% due 01/01/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Massachusetts Housing Finance Agency Revenue Bonds, Series 2003 |
|
| 5.125% due 06/01/2043 |
|
$ |
|
|
3,185 |
|
|
$ |
|
|
3,189 |
|
| Massachusetts State College Building Authority Revenue Bonds, Series 2009 |
|
| 5.500% due 05/01/2039 |
|
|
|
|
1,600 |
|
|
|
|
|
1,653 |
|
| University of Massachusetts Building Authority, Revenue Bonds, Series 2013 |
|
| 4.000% due 11/01/2043 (d) |
|
|
|
|
15,745 |
|
|
|
|
|
16,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MICHIGAN 5.1% |
|
| Michigan Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 12/01/2036 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,112 |
|
| 4.000% due 12/01/2040 (d) |
|
|
|
|
500 |
|
|
|
|
|
515 |
|
| 5.000% due 12/01/2031 (d) |
|
|
|
|
1,200 |
|
|
|
|
|
1,393 |
|
| 5.000% due 12/01/2046 (d) |
|
|
|
|
2,500 |
|
|
|
|
|
2,817 |
|
| Michigan State Building Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 10/15/2046 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,689 |
|
| 5.000% due 10/15/2051 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,678 |
|
| Michigan State Hospital Finance Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 11/15/2047 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,085 |
|
| Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2008 |
|
| 0.000% due 06/01/2058 (b) |
|
|
|
|
12,500 |
|
|
|
|
|
392 |
|
| Royal Oak Hospital Finance Authority, Michigan Revenue Bonds, Series 2009 |
|
| 8.250% due 09/01/2039 |
|
|
|
|
1,500 |
|
|
|
|
|
1,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MISSOURI 0.6% |
|
| Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series
2018 |
|
| 4.000% due 06/01/2048 |
|
|
|
|
1,500 |
|
|
|
|
|
1,524 |
|
| Jennings, Missouri Revenue Bonds, Series 2006 |
|
| 5.000% due 11/01/2023 |
|
|
|
|
215 |
|
|
|
|
|
193 |
|
| Manchester, Missouri Tax Allocation Bonds, Series 2010 |
|
| 6.875% due 11/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEBRASKA 1.6% |
|
| Omaha Public Power District, Nebraska Revenue Bonds, Series 2012 |
|
| 4.000% due 02/01/2046 (d) |
|
|
|
|
5,500 |
|
|
|
|
|
5,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEVADA 1.6% |
|
| Clark County, Nevada General Obligation Bonds, Series 2018 |
|
| 4.000% due 07/01/2044 (d) |
|
|
|
|
4,545 |
|
|
|
|
|
4,709 |
|
| Reno, Nevada Revenue Bonds, Series 2018 |
|
| 0.010% due 07/01/2058 (b) |
|
|
|
|
11,000 |
|
|
|
|
|
840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW HAMPSHIRE 0.6% |
|
| New Hampshire Business Finance Authority Revenue Bonds, Series 2009 |
|
| 6.125% due 10/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW JERSEY 5.6% |
|
| New Jersey Economic Development Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 06/15/2041 |
|
|
|
|
5,000 |
|
|
|
|
|
5,348 |
|
| New Jersey Economic Development Authority Special Assessment Bonds, Series
2002 |
|
| 6.500% due 04/01/2028 |
|
|
|
|
4,500 |
|
|
|
|
|
5,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series
2013 |
|
| 5.500% due 07/01/2043 |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,255 |
|
| New Jersey Transportation Trust Fund Authority Revenue Bonds, (AGM Insured), Series
2006 |
|
| 0.000% due 12/15/2034 (b) |
|
|
|
|
3,200 |
|
|
|
|
|
1,641 |
|
| South Jersey Port Corp., New Jersey Revenue Bonds, Series 2017 |
|
| 5.000% due 01/01/2049 |
|
|
|
|
900 |
|
|
|
|
|
981 |
|
| Tobacco Settlement Financing Corp., New Jersey Revenue Bonds, Series 2018 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
4,000 |
|
|
|
|
|
4,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW MEXICO 0.3% |
|
| Farmington, New Mexico Revenue Bonds, Series 2010 |
|
| 5.900% due 06/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 23.4% |
|
| Brooklyn Arena Local Development Corp., New York Revenue Bonds, Series 2009 |
|
| 6.250% due 07/15/2040 |
|
|
|
|
9,800 |
|
|
|
|
|
10,497 |
|
| Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 07/01/2041 |
|
|
|
|
3,500 |
|
|
|
|
|
3,536 |
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds, Series 2011 |
|
| 5.750% due 02/15/2047 |
|
|
|
|
5,000 |
|
|
|
|
|
5,480 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2011 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
3,000 |
|
|
|
|
|
3,315 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2017 |
|
| 4.000% due 11/15/2042 (d) |
|
|
|
|
5,500 |
|
|
|
|
|
5,663 |
|
| 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 |
|
|
|
|
|
918 |
|
| New York City Industrial Development Agency, New York Revenue Bonds, (AGC Insured), Series
2009 |
|
| 7.000% due 03/01/2049 |
|
|
|
|
10,450 |
|
|
|
|
|
10,814 |
|
| 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 |
|
|
|
|
|
9,379 |
|
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series
2017 |
|
| 4.000% due 08/01/2042 (d) |
|
|
|
|
2,000 |
|
|
|
|
|
2,085 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series 2012 |
|
| 4.000% due 06/15/2047 (d) |
|
|
|
|
7,500 |
|
|
|
|
|
7,666 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2007 |
|
| 5.500% due 10/01/2037 |
|
|
|
|
1,700 |
|
|
|
|
|
2,198 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2011 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
11,000 |
|
|
|
|
|
11,893 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
1,000 |
|
|
|
|
|
1,062 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
1,000 |
|
|
|
|
|
1,043 |
|
| New York State Urban Development Corp. Revenue Bonds, Series 2017 |
|
| 4.000% due 03/15/2046 (d) |
|
|
|
|
7,000 |
|
|
|
|
|
7,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NORTH CAROLINA 2.6% |
|
| New Hanover County, North Carolina Revenue Bonds, Series 2011 |
|
| 5.000% due 10/01/2028 |
|
|
|
|
6,000 |
|
|
|
|
|
6,515 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
45 |
Schedule of Investments PIMCO Municipal
Income Fund III (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| University of North Carolina Hospitals at Chapel Hill Revenue Bonds, Series
2016 |
|
| 4.000% due 02/01/2046 |
|
$ |
|
|
2,500 |
|
|
$ |
|
|
2,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 18.0% |
|
| Allen County, Ohio Revenue Bonds, Series 2010 |
|
| 5.000% due 06/01/2038 |
|
|
|
|
500 |
|
|
|
|
|
530 |
|
| American Municipal Power, Inc., Ohio Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,023 |
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series
2007 |
|
| 5.125% due 06/01/2024 |
|
|
|
|
955 |
|
|
|
|
|
954 |
|
| 5.875% due 06/01/2047 |
|
|
|
|
8,400 |
|
|
|
|
|
8,436 |
|
| 6.250% due 06/01/2037 |
|
|
|
|
5,000 |
|
|
|
|
|
5,226 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
30,350 |
|
|
|
|
|
31,128 |
|
| Geisinger Authority, Pennsylvania Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 (d) |
|
|
|
|
9,310 |
|
|
|
|
|
9,507 |
|
| Hamilton County, Ohio Revenue Bonds, Series 2012 |
|
| 5.000% due 06/01/2042 |
|
|
|
|
1,500 |
|
|
|
|
|
1,623 |
|
| Ohio State Turnpike Commission Revenue Bonds, Series 2013 |
|
| 5.000% due 02/15/2048 |
|
|
|
|
5,000 |
|
|
|
|
|
5,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OKLAHOMA 0.5% |
|
| Oklahoma Development Finance Authority Revenue Bonds, Series 2018 |
|
| 5.500% due 08/15/2057 |
|
|
|
|
1,600 |
|
|
|
|
|
1,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PENNSYLVANIA 7.5% |
|
| Allegheny County, Pennsylvania Hospital Development Authority Revenue Bonds, Series
2009 |
|
| 5.625% due 08/15/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,041 |
|
| Berks County, Pennsylvania Municipal Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 11/01/2044 |
|
|
|
|
6,600 |
|
|
|
|
|
7,044 |
|
| Commonwealth of Pennsylvania General Obligation Bonds, Series 2018 |
|
| 4.000% due 03/01/2037 |
|
|
|
|
3,750 |
|
|
|
|
|
3,865 |
|
| Cumberland County, Pennsylvania Municipal Authority Revenue Bonds, Series
2008 |
|
| 5.625% due 07/01/2028 |
|
|
|
|
1,000 |
|
|
|
|
|
1,003 |
|
| 6.000% due 07/01/2035 |
|
|
|
|
670 |
|
|
|
|
|
672 |
|
| Dauphin County, Pennsylvania General Authority Revenue Bonds, Series 2009 |
|
| 6.000% due 06/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,039 |
|
| Luzerne County, Pennsylvania Industrial Development Authority Revenue Bonds, Series
2009 |
|
| 5.500% due 12/01/2039 |
|
|
|
|
100 |
|
|
|
|
|
105 |
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series 2009 |
|
| 5.125% due 12/01/2040 |
|
|
|
|
3,000 |
|
|
|
|
|
3,146 |
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series 2013 |
|
| 5.000% due 12/01/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,488 |
|
| Pennsylvania Turnpike Commission Revenue Bonds, Series 2018 |
|
| 5.000% due 12/01/2043 |
|
|
|
|
750 |
|
|
|
|
|
846 |
|
| Philadelphia Hospitals & Higher Education Facilities Authority, Pennsylvania Revenue
Bonds, Series 2012 |
|
| 5.625% due 07/01/2042 |
|
|
|
|
1,645 |
|
|
|
|
|
1,785 |
|
| Philadelphia, Pennsylvania Water & Wastewater Revenue Bonds, Series
2009 |
|
| 5.250% due 01/01/2036 |
|
|
|
|
500 |
|
|
|
|
|
509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.1% |
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM Insured), Series
2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
3,500 |
|
|
|
|
|
3,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| SOUTH CAROLINA 2.6% |
|
| Greenwood County, South Carolina Revenue Bonds, Series 2009 |
|
| 5.375% due 10/01/2039 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,046 |
|
| South Carolina Ports Authority Revenue Bonds, Series 2010 |
|
| 5.250% due 07/01/2040 |
|
|
|
|
800 |
|
|
|
|
|
855 |
|
| South Carolina State Public Service Authority Revenue Bonds, Series 2013 |
|
| 5.125% due 12/01/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,336 |
|
| 5.500% due 12/01/2053 |
|
|
|
|
1,750 |
|
|
|
|
|
1,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TENNESSEE 1.7% |
|
| Bristol Industrial Development Board, Tennessee Revenue Bonds, Series 2016 |
|
| 5.125% due 12/01/2042 |
|
|
|
|
2,500 |
|
|
|
|
|
2,430 |
|
| Bristol Industrial Development Board, Tennessee Revenue Notes, Series 2016 |
|
| 0.000% due 12/01/2025 (b) |
|
|
|
|
1,000 |
|
|
|
|
|
689 |
|
| 0.000% due 12/01/2026 (b) |
|
|
|
|
1,000 |
|
|
|
|
|
650 |
|
| Claiborne County, Tennessee Industrial Development Board Revenue Bonds, Series
2009 |
|
| 6.625% due 10/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,303 |
|
| Johnson City Health & Educational Facilities Board, Tennessee Revenue Bonds, Series
2010 |
|
| 6.000% due 07/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TEXAS 17.6% |
|
| Dallas, Texas Civic Center Revenue Bonds, (AGC Insured), Series 2009 |
|
| 5.250% due 08/15/2038 |
|
|
|
|
1,300 |
|
|
|
|
|
1,347 |
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2013 |
|
| 5.000% due 04/01/2053 |
|
|
|
|
4,500 |
|
|
|
|
|
4,931 |
|
| Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2018 |
|
| 5.000% due 10/01/2048 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,602 |
|
| Houston Community College System, Texas General Obligation Bonds, Series 2013 |
|
| 4.000% due 02/15/2043 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,112 |
|
| New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series
2017 |
|
| 4.000% due 08/15/2034 (d) |
|
|
|
|
300 |
|
|
|
|
|
312 |
|
| 4.000% due 08/15/2035 (d) |
|
|
|
|
800 |
|
|
|
|
|
830 |
|
| 4.000% due 08/15/2036 (d) |
|
|
|
|
600 |
|
|
|
|
|
621 |
|
| 4.000% due 08/15/2037 (d) |
|
|
|
|
900 |
|
|
|
|
|
931 |
|
| 4.000% due 08/15/2040 (d) |
|
|
|
|
900 |
|
|
|
|
|
927 |
|
| North Harris County, Texas Regional Water Authority Revenue Bonds, Series
2008 |
|
| 5.250% due 12/15/2033 |
|
|
|
|
5,500 |
|
|
|
|
|
5,593 |
|
| 5.500% due 12/15/2038 |
|
|
|
|
5,500 |
|
|
|
|
|
5,600 |
|
| North Texas Tollway Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 01/01/2038 |
|
|
|
|
3,000 |
|
|
|
|
|
3,182 |
|
| 5.500% due 09/01/2041 |
|
|
|
|
600 |
|
|
|
|
|
664 |
|
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2009 |
|
| 6.250% due 11/15/2029 |
|
|
|
|
3,000 |
|
|
|
|
|
3,053 |
|
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series
2017 |
|
| 6.750% due 11/15/2047 |
|
|
|
|
500 |
|
|
|
|
|
559 |
|
| Tender Option Bond Trust Receipts/Certificates, Texas General Obligation Bonds, Series
2009 |
|
| 7.920% due 08/01/2039 (e) |
|
|
|
|
6,500 |
|
|
|
|
|
6,917 |
|
| Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series
2006 |
|
| 5.250% due 12/15/2026 |
|
|
|
|
150 |
|
|
|
|
|
175 |
|
| Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series
2008 |
|
| 6.250% due 12/15/2026 |
|
|
|
|
9,600 |
|
|
|
|
|
11,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Texas Water Development Board Revenue Bonds, Series 2018 |
|
| 4.000% due 10/15/2038 (d) |
|
$ |
|
|
5,000 |
|
|
$ |
|
|
5,256 |
|
| Wise County, Texas Revenue Bonds, Series 2011 |
|
| 8.000% due 08/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.8% |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2009 |
|
| 6.625% due 10/01/2029 |
|
|
|
|
1,335 |
|
|
|
|
|
1,131 |
|
| 6.750% due 10/01/2037 |
|
|
|
|
1,165 |
|
|
|
|
|
987 |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2010 |
|
| 5.250% due 10/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UTAH 0.9% |
|
| Utah County, Utah Revenue Bonds, Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
3,000 |
|
|
|
|
|
3,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| VIRGINIA 3.1% |
|
| Fairfax County, Virginia Industrial Development Authority Revenue Bonds, Series
2009 |
|
| 5.500% due 05/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,034 |
|
| 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 |
|
|
|
|
|
602 |
|
| University of Virginia Revenue Bonds, Series 2018 |
|
| 4.000% due 08/01/2048 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,254 |
|
| Virginia Commonwealth Transportation Board Revenue Bonds, Series 2018 |
|
| 4.000% due 05/15/2041 (d) |
|
|
|
|
4,000 |
|
|
|
|
|
4,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WASHINGTON 0.7% |
|
| Washington Health Care Facilities Authority Revenue Bonds, Series 2009 |
|
| 7.375% due 03/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,038 |
|
| Washington Health Care Facilities Authority Revenue Bonds, Series 2010 |
|
| 5.500% due 12/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
543 |
|
| Washington State Housing Finance Commission Revenue Bonds, Series 2018 |
|
| 5.000% due 07/01/2038 |
|
|
|
|
825 |
|
|
|
|
|
864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEST VIRGINIA 0.7% |
|
| Monongalia County, West Virginia Commission Special District Revenue Bonds, Series
2017 |
|
| 5.500% due 06/01/2037 |
|
|
|
|
1,000 |
|
|
|
|
|
1,036 |
|
| West Virginia Economic Development Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 06/15/2040 (d) |
|
|
|
|
1,500 |
|
|
|
|
|
1,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WISCONSIN 2.3% |
|
| University of Wisconsin Hospitals & Clinics Authority Revenue Bonds, Series
2013 |
|
| 5.000% due 04/01/2038 |
|
|
|
|
3,500 |
|
|
|
|
|
3,837 |
|
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series
2009 |
|
| 6.625% due 02/15/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,031 |
|
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series
2010 |
|
| 5.625% due 04/15/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,053 |
|
|
|
|
|
|
|
|
|
|
| 46 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET VALUE (000S) |
|
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series
2017 |
|
| 4.000% due 08/15/2042 (d) |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $627,013) |
|
|
|
|
|
670,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 2.1% |
|
|
|
| REPURCHASE AGREEMENTS (g) 2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
7,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $7,546) |
|
|
|
|
|
7,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $634,559) |
|
|
|
|
|
|
|
|
|
|
677,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 191.1%
(Cost $634,559) |
|
|
$ |
|
|
677,918 |
|
|
|
|
|
|
|
|
|
| Preferred Shares (53.3)% |
|
|
|
|
|
(189,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Assets and Liabilities, net (37.8)% |
|
|
|
|
|
(134,168 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
354,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2018. |
(f) RESTRICTED SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issuer Description |
|
Coupon |
|
Maturity
Date |
|
|
Acquisition
Date |
|
|
Cost |
|
|
Market
Value |
|
|
Market Value
as Percentage of Net Assets |
|
| Massachusetts Development Finance Agency Revenue Bonds, Series 2011 |
|
0.000% |
|
|
11/15/2056 |
|
|
|
07/20/2007 |
|
|
|
$ 5 |
|
|
$ |
29 |
|
|
|
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 |
|
|
1.500 |
% |
|
|
06/29/2018 |
|
|
|
07/02/2018 |
|
|
$ |
7,546 |
|
|
U.S. Treasury Notes 2.750% due 11/15/2023 |
|
$ |
(7,700 |
) |
|
$ |
7,546 |
|
|
$ |
7,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
$ |
(7,700 |
) |
|
$ |
7,546 |
|
|
$ |
7,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
47 |
Schedule of Investments PIMCO Municipal
Income Fund III (Cont.)
June 30, 2018 (Unaudited)
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value
of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 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 |
|
$ |
7,547 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
7,547 |
|
|
$ |
(7,700 |
) |
|
$ |
(153 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
7,547 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Includes accrued interest. |
| (2) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from
borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Master Netting Arrangements, in the Notes to Financial Statements for more
information regarding master netting arrangements. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2018 in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alabama |
|
$ |
0 |
|
|
$ |
33,409 |
|
|
$ |
0 |
|
|
$ |
33,409 |
|
| Arizona |
|
|
0 |
|
|
|
33,030 |
|
|
|
0 |
|
|
|
33,030 |
|
| California |
|
|
0 |
|
|
|
74,682 |
|
|
|
0 |
|
|
|
74,682 |
|
| Colorado |
|
|
0 |
|
|
|
4,880 |
|
|
|
0 |
|
|
|
4,880 |
|
| Connecticut |
|
|
0 |
|
|
|
1,381 |
|
|
|
0 |
|
|
|
1,381 |
|
| District of Columbia |
|
|
0 |
|
|
|
10,101 |
|
|
|
0 |
|
|
|
10,101 |
|
| Florida |
|
|
0 |
|
|
|
26,346 |
|
|
|
0 |
|
|
|
26,346 |
|
| Georgia |
|
|
0 |
|
|
|
19,994 |
|
|
|
0 |
|
|
|
19,994 |
|
| Hawaii |
|
|
0 |
|
|
|
5,716 |
|
|
|
0 |
|
|
|
5,716 |
|
| Illinois |
|
|
0 |
|
|
|
54,386 |
|
|
|
0 |
|
|
|
54,386 |
|
| Indiana |
|
|
0 |
|
|
|
2,177 |
|
|
|
0 |
|
|
|
2,177 |
|
| Iowa |
|
|
0 |
|
|
|
427 |
|
|
|
0 |
|
|
|
427 |
|
| Kansas |
|
|
0 |
|
|
|
2,030 |
|
|
|
0 |
|
|
|
2,030 |
|
| Kentucky |
|
|
0 |
|
|
|
5,443 |
|
|
|
0 |
|
|
|
5,443 |
|
| Louisiana |
|
|
0 |
|
|
|
9,555 |
|
|
|
0 |
|
|
|
9,555 |
|
| Maryland |
|
|
0 |
|
|
|
6,740 |
|
|
|
0 |
|
|
|
6,740 |
|
| Massachusetts |
|
|
0 |
|
|
|
29,660 |
|
|
|
0 |
|
|
|
29,660 |
|
| Michigan |
|
|
0 |
|
|
|
18,197 |
|
|
|
0 |
|
|
|
18,197 |
|
| Missouri |
|
|
0 |
|
|
|
2,221 |
|
|
|
0 |
|
|
|
2,221 |
|
| Nebraska |
|
|
0 |
|
|
|
5,597 |
|
|
|
0 |
|
|
|
5,597 |
|
| Nevada |
|
|
0 |
|
|
|
5,549 |
|
|
|
0 |
|
|
|
5,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| New Hampshire |
|
$ |
0 |
|
|
$ |
2,113 |
|
|
$ |
0 |
|
|
$ |
2,113 |
|
| New Jersey |
|
|
0 |
|
|
|
19,796 |
|
|
|
0 |
|
|
|
19,796 |
|
| New Mexico |
|
|
0 |
|
|
|
1,066 |
|
|
|
0 |
|
|
|
1,066 |
|
| New York |
|
|
0 |
|
|
|
82,858 |
|
|
|
0 |
|
|
|
82,858 |
|
| North Carolina |
|
|
0 |
|
|
|
9,085 |
|
|
|
0 |
|
|
|
9,085 |
|
| Ohio |
|
|
0 |
|
|
|
63,864 |
|
|
|
0 |
|
|
|
63,864 |
|
| Oklahoma |
|
|
0 |
|
|
|
1,825 |
|
|
|
0 |
|
|
|
1,825 |
|
| Pennsylvania |
|
|
0 |
|
|
|
26,543 |
|
|
|
0 |
|
|
|
26,543 |
|
| Puerto Rico |
|
|
0 |
|
|
|
3,900 |
|
|
|
0 |
|
|
|
3,900 |
|
| South Carolina |
|
|
0 |
|
|
|
9,131 |
|
|
|
0 |
|
|
|
9,131 |
|
| Tennessee |
|
|
0 |
|
|
|
6,156 |
|
|
|
0 |
|
|
|
6,156 |
|
| Texas |
|
|
0 |
|
|
|
62,350 |
|
|
|
0 |
|
|
|
62,350 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
2,971 |
|
|
|
0 |
|
|
|
2,971 |
|
| Utah |
|
|
0 |
|
|
|
3,096 |
|
|
|
0 |
|
|
|
3,096 |
|
| Virginia |
|
|
0 |
|
|
|
11,069 |
|
|
|
0 |
|
|
|
11,069 |
|
| Washington |
|
|
0 |
|
|
|
2,445 |
|
|
|
0 |
|
|
|
2,445 |
|
| West Virginia |
|
|
0 |
|
|
|
2,596 |
|
|
|
0 |
|
|
|
2,596 |
|
| Wisconsin |
|
|
0 |
|
|
|
7,987 |
|
|
|
0 |
|
|
|
7,987 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
7,546 |
|
|
|
0 |
|
|
|
7,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
677,918 |
|
|
$ |
0 |
|
|
$ |
677,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no
significant transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
|
|
| 48 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO California Municipal Income Fund
June 30, 2018 (Unaudited)
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 202.4% |
|
|
|
| MUNICIPAL BONDS & NOTES 202.3% |
|
|
|
| CALIFORNIA 197.1% |
|
| California County Tobacco Securitization Agency Revenue Bonds, Series 2002 |
|
| 6.000% due 06/01/2035 |
|
$ |
|
|
4,000 |
|
|
$ |
|
|
4,002 |
|
| 6.125% due 06/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,000 |
|
| California County Tobacco Securitization Agency Revenue Bonds, Series 2006 |
|
| 0.000% due 06/01/2046 (a) |
|
|
|
|
12,000 |
|
|
|
|
|
1,884 |
|
| 5.600% due 06/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,513 |
|
| California Educational Facilities Authority Revenue Bonds, Series 2009 |
|
| 5.000% due 01/01/2039 (b) |
|
|
|
|
10,200 |
|
|
|
|
|
10,388 |
|
| 5.000% due 10/01/2039 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,091 |
|
| California Educational Facilities Authority Revenue Bonds, Series 2017 |
|
| 5.000% due 04/01/2047 |
|
|
|
|
800 |
|
|
|
|
|
893 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2008 |
|
| 5.250% due 11/15/2040 |
|
|
|
|
5,050 |
|
|
|
|
|
5,646 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2009 |
|
| 5.750% due 09/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,097 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
4,000 |
|
|
|
|
|
4,183 |
|
| 6.500% due 11/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,070 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2010 |
|
| 7.952% due 11/15/2036 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,159 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
1,450 |
|
|
|
|
|
1,519 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 08/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,083 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
2,800 |
|
|
|
|
|
3,063 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 08/15/2051 |
|
|
|
|
7,300 |
|
|
|
|
|
7,998 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2013 |
|
| 5.000% due 08/15/2052 |
|
|
|
|
1,675 |
|
|
|
|
|
1,832 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2015 |
|
| 5.000% due 08/15/2054 |
|
|
|
|
1,300 |
|
|
|
|
|
1,450 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 08/15/2039 (b) |
|
|
|
|
8,500 |
|
|
|
|
|
8,890 |
|
| 5.000% due 11/15/2046 (b) |
|
|
|
|
9,500 |
|
|
|
|
|
10,836 |
|
| 5.000% due 08/15/2055 |
|
|
|
|
6,000 |
|
|
|
|
|
6,753 |
|
| California Infrastructure & Economic Development Bank Revenue Bonds, Series
2013 |
|
| 5.000% due 02/01/2039 |
|
|
|
|
10,000 |
|
|
|
|
|
10,916 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2008 |
|
| 5.875% due 10/01/2034 |
|
|
|
|
2,900 |
|
|
|
|
|
2,932 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
850 |
|
|
|
|
|
964 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 01/01/2043 (b) |
|
|
|
|
3,500 |
|
|
|
|
|
3,701 |
|
| California Pollution Control Financing Authority Revenue Bonds, Series 2010 |
|
| 5.100% due 06/01/2040 |
|
|
|
|
2,000 |
|
|
|
|
|
2,152 |
|
| 5.250% due 08/01/2040 |
|
|
|
|
1,250 |
|
|
|
|
|
1,330 |
|
| California Pollution Control Financing Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 11/21/2045 |
|
|
|
|
1,975 |
|
|
|
|
|
1,997 |
|
| California Public Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
5,140 |
|
|
|
|
|
5,288 |
|
| California State General Obligation Bonds, Series 2009 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,067 |
|
| 6.000% due 11/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| California State General Obligation Bonds, Series 2010 |
|
| 5.250% due 11/01/2040 |
|
$ |
|
|
2,400 |
|
|
$ |
|
|
2,582 |
|
| 5.500% due 03/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,593 |
|
| California State General Obligation Bonds, Series 2013 |
|
| 5.000% due 11/01/2043 |
|
|
|
|
7,000 |
|
|
|
|
|
7,834 |
|
| California State Public Works Board Revenue Bonds, Series 2009 |
|
| 5.000% due 04/01/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,054 |
|
| 5.750% due 10/01/2030 |
|
|
|
|
2,000 |
|
|
|
|
|
2,107 |
|
| 6.000% due 11/01/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,119 |
|
| California State Public Works Board Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2029 |
|
|
|
|
1,500 |
|
|
|
|
|
1,648 |
|
| California State University Revenue Bonds, Series 2015 |
|
| 5.000% due 11/01/2047 |
|
|
|
|
8,000 |
|
|
|
|
|
9,119 |
|
| California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series
2018 |
|
| 4.000% due 07/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,036 |
|
| 4.000% due 07/01/2043 |
|
|
|
|
350 |
|
|
|
|
|
361 |
|
| 4.000% due 07/01/2047 |
|
|
|
|
1,750 |
|
|
|
|
|
1,798 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FGIC Insured),
Series 2007 |
|
| 5.750% due 07/01/2047 |
|
|
|
|
3,200 |
|
|
|
|
|
3,200 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FHA Insured), Series
2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
1,870 |
|
|
|
|
|
1,974 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
6,875 |
|
|
|
|
|
7,267 |
|
| California Statewide Communities Development Authority Revenue Bonds, (NPFGC Insured),
Series 2000 |
|
| 5.125% due 07/01/2024 |
|
|
|
|
100 |
|
|
|
|
|
100 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2010 |
|
| 5.000% due 11/01/2040 |
|
|
|
|
10,000 |
|
|
|
|
|
10,543 |
|
| 6.250% due 10/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,046 |
|
| 7.500% due 06/01/2042 |
|
|
|
|
955 |
|
|
|
|
|
1,008 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,186 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2012 |
|
| 5.000% due 04/01/2042 |
|
|
|
|
11,500 |
|
|
|
|
|
12,547 |
|
| 5.125% due 05/15/2031 |
|
|
|
|
4,000 |
|
|
|
|
|
4,265 |
|
| 5.375% due 05/15/2038 |
|
|
|
|
4,500 |
|
|
|
|
|
4,802 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2016 |
|
| 4.000% due 08/15/2051 |
|
|
|
|
225 |
|
|
|
|
|
230 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,400 |
|
|
|
|
|
1,508 |
|
| 5.000% due 12/01/2046 |
|
|
|
|
5,700 |
|
|
|
|
|
6,067 |
|
| 5.250% due 12/01/2056 |
|
|
|
|
1,775 |
|
|
|
|
|
1,917 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2018 |
|
| 4.000% due 07/01/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
1,021 |
|
| 4.000% due 12/01/2057 |
|
|
|
|
2,000 |
|
|
|
|
|
2,030 |
|
| California Statewide Financing Authority Revenue Bonds, Series 2002 |
|
| 5.625% due 05/01/2029 |
|
|
|
|
105 |
|
|
|
|
|
105 |
|
| 6.000% due 05/01/2037 |
|
|
|
|
3,000 |
|
|
|
|
|
3,002 |
|
| Chaffey Joint Union High School District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
5,760 |
|
| Chula Vista, California Revenue Bonds, Series 2004 |
|
| 5.875% due 02/15/2034 |
|
|
|
|
5,000 |
|
|
|
|
|
5,185 |
|
| Desert Community College District, California General Obligation Bonds, Series
2016 |
|
| 5.000% due 08/01/2037 (b) |
|
|
|
|
6,750 |
|
|
|
|
|
7,807 |
|
| Eastern Municipal Water District Financing Authority, California Revenue Bonds, Series
2017 |
|
| 5.000% due 07/01/2047 (b) |
|
|
|
|
4,500 |
|
|
|
|
|
5,247 |
|
| Eastern Municipal Water District, California Certificates of Participation Bonds, Series
2008 |
|
| 5.000% due 07/01/2035 |
|
|
|
|
6,300 |
|
|
|
|
|
6,300 |
|
| El Monte, California Certificates of Participation Bonds, (AMBAC Insured), Series
2001 |
|
| 5.250% due 01/01/2034 (d) |
|
|
|
|
14,425 |
|
|
|
|
|
14,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| 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 |
|
|
$ |
|
|
3,690 |
|
| Folsom Redevelopment Agency, California Tax Allocation Bonds, Series 2009 |
|
| 5.500% due 08/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,044 |
|
| Foothill-Eastern Transportation Corridor Agency, California Revenue Bonds, Series
2014 |
|
| 3.950% due 01/15/2053 |
|
|
|
|
860 |
|
|
|
|
|
864 |
|
| Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series
2007 |
|
| 5.125% due 06/01/2047 |
|
|
|
|
8,300 |
|
|
|
|
|
8,300 |
|
| 5.300% due 06/01/2037 |
|
|
|
|
1,740 |
|
|
|
|
|
1,821 |
|
| 5.750% due 06/01/2047 |
|
|
|
|
18,230 |
|
|
|
|
|
18,234 |
|
| Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series
2018 |
|
| 5.000% due 06/01/2047 |
|
|
|
|
12,000 |
|
|
|
|
|
12,334 |
|
| Grossmont-Cuyamaca Community College District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
2,750 |
|
|
|
|
|
2,875 |
|
| Hayward Unified School District, California General Obligation Bonds, Series
2015 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
6,000 |
|
|
|
|
|
6,673 |
|
| Imperial Irrigation District Electric System, California Revenue Bonds, Series
2011 |
|
| 5.000% due 11/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,079 |
|
| Imperial Irrigation District Electric System, California Revenue Bonds, Series
2016 |
|
| 5.000% due 11/01/2041 (b) |
|
|
|
|
6,000 |
|
|
|
|
|
6,888 |
|
| Imperial Irrigation District Electric System, California Revenue Bonds, Series
2017 |
|
| 4.000% due 11/01/2041 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,207 |
|
| Kern County, California Certificates of Participation Bonds, (AGC Insured), Series
2009 |
|
| 5.750% due 08/01/2035 |
|
|
|
|
10,590 |
|
|
|
|
|
10,860 |
|
| Lancaster Redevelopment Agency, California Tax Allocation Bonds, Series 2009 |
|
| 6.875% due 08/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
528 |
|
| Long Beach Bond Finance Authority, California Revenue Bonds, Series 2007 |
|
| 5.500% due 11/15/2027 |
|
|
|
|
1,000 |
|
|
|
|
|
1,193 |
|
| Long Beach Unified School District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2043 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
5,767 |
|
| Long Beach, California Airport System Revenue Bonds, Series 2010 |
|
| 5.000% due 06/01/2040 |
|
|
|
|
5,000 |
|
|
|
|
|
5,276 |
|
| Los Angeles Department of Water & Power, California Revenue Bonds, Series
2009 |
|
| 5.375% due 07/01/2034 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,054 |
|
| 5.375% due 07/01/2038 (b) |
|
|
|
|
7,000 |
|
|
|
|
|
7,124 |
|
| Los Angeles Department of Water & Power, California Revenue Bonds, Series
2012 |
|
| 5.000% due 07/01/2037 |
|
|
|
|
4,100 |
|
|
|
|
|
4,519 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,486 |
|
| Los Angeles Department of Water & Power, California Revenue Bonds, Series
2014 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
2,000 |
|
|
|
|
|
2,239 |
|
| Los Angeles Unified School District, California General Obligation Bonds, Series
2009 |
|
| 5.000% due 07/01/2029 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,340 |
|
| 5.000% due 01/01/2034 (b) |
|
|
|
|
8,500 |
|
|
|
|
|
8,785 |
|
| 5.300% due 01/01/2034 |
|
|
|
|
250 |
|
|
|
|
|
259 |
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
15,345 |
|
|
|
|
|
21,930 |
|
| Malibu, California Certificates of Participation Bonds, Series 2009 |
|
| 5.000% due 07/01/2039 |
|
|
|
|
700 |
|
|
|
|
|
725 |
|
| Palomar Community College District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2046 (b) |
|
|
|
|
4,530 |
|
|
|
|
|
4,748 |
|
| Peralta Community College District, California General Obligation Bonds, Series
2009 |
|
| 5.000% due 08/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,299 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
49 |
Schedule of Investments PIMCO California
Municipal Income Fund (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Regents of the University of California Medical Center Pooled Revenue Bonds, Series
2013 |
|
| 5.000% due 05/15/2043 |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,211 |
|
| River Islands Public Financing Authority, California Special Tax Bonds, Series
2015 |
|
| 5.500% due 09/01/2045 |
|
|
|
|
3,000 |
|
|
|
|
|
3,220 |
|
| Sacramento Area Flood Control Agency, California Special Assessment Bonds, Series
2016 |
|
| 5.000% due 10/01/2041 (b) |
|
|
|
|
2,800 |
|
|
|
|
|
3,222 |
|
| 5.000% due 10/01/2047 (b) |
|
|
|
|
1,700 |
|
|
|
|
|
1,947 |
|
| San Diego Regional Building Authority, California Revenue Bonds, Series 2009 |
|
| 5.375% due 02/01/2036 |
|
|
|
|
3,285 |
|
|
|
|
|
3,363 |
|
| San Diego Unified School District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 07/01/2047 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,153 |
|
| San Dieguito Union High School District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2042 |
|
|
|
|
3,500 |
|
|
|
|
|
3,709 |
|
| San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2042 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
5,862 |
|
| San Francisco, California City & County Certificates of Participation Bonds, Series
2009 |
|
| 5.250% due 04/01/2031 |
|
|
|
|
650 |
|
|
|
|
|
668 |
|
| San Joaquin County Transportation Authority, California Revenue Bonds, Series
2017 |
|
| 4.000% due 03/01/2041 (b) |
|
|
|
|
2,200 |
|
|
|
|
|
2,307 |
|
| 5.000% due 03/01/2041 (b) |
|
|
|
|
10,800 |
|
|
|
|
|
12,598 |
|
| San Jose, California Hotel Tax Revenue Bonds, Series 2011 |
|
| 6.500% due 05/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,684 |
|
| San Marcos Unified School District, California General Obligation Bonds, Series
2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,200 |
|
|
|
|
|
1,322 |
|
| San Mateo County, California Community College District General Obligation Bonds, (NPFGC
Insured), Series 2006 |
|
| 0.000% due 09/01/2034 (a) |
|
|
|
|
3,000 |
|
|
|
|
|
1,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Santa Clara County, California General Obligation Bonds, Series 2013 |
|
| 4.000% due 08/01/2041 (b) |
|
$ |
|
|
4,000 |
|
|
$ |
|
|
4,138 |
|
| Santa Cruz County, California Redevelopment Agency Tax Allocation Bonds, Series
2009 |
|
| 7.000% due 09/01/2036 |
|
|
|
|
1,300 |
|
|
|
|
|
1,382 |
|
| Santa Monica Community College District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 04/01/2045 (b) |
|
|
|
|
2,000 |
|
|
|
|
|
2,117 |
|
| Sonoma Valley Unified School District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2047 |
|
|
|
|
2,000 |
|
|
|
|
|
2,093 |
|
| Tobacco Securitization Authority of Southern California Revenue Bonds, Series
2006 |
|
| 5.000% due 06/01/2037 |
|
|
|
|
800 |
|
|
|
|
|
802 |
|
| Torrance, California Revenue Bonds, Series 2010 |
|
| 5.000% due 09/01/2040 |
|
|
|
|
6,300 |
|
|
|
|
|
6,603 |
|
| University of California Revenue Bonds, Series 2016 |
|
| 4.000% due 05/15/2046 (b) |
|
|
|
|
12,100 |
|
|
|
|
|
12,597 |
|
| Upland, California Certificates of Participation Bonds, Series 2017 |
|
| 4.000% due 01/01/2042 |
|
|
|
|
750 |
|
|
|
|
|
762 |
|
| Washington Township Health Care District, California General Obligation Bonds, Series
2013 |
|
| 5.000% due 08/01/2043 |
|
|
|
|
2,500 |
|
|
|
|
|
2,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
505,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 3.8% |
|
|
|
|
|
|
|
|
|
|
|
|
| Chicago, Illinois General Obligation Bonds, Series 2007 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,122 |
|
| Chicago, Illinois General Obligation Bonds, Series 2015 |
|
| 5.250% due 01/01/2028 |
|
|
|
|
3,400 |
|
|
|
|
|
3,655 |
|
| Chicago, Illinois General Obligation Bonds, Series 2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,821 |
|
| Illinois State General Obligation Bonds, Series 2017 |
|
| 5.000% due 11/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| PUERTO RICO 1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM Insured), Series
2007 |
|
| 5.250% due 07/01/2031 ^ |
|
$ |
|
|
1,200 |
|
|
$ |
|
|
1,337 |
|
| Puerto Rico Highway & Transportation Authority Revenue Bonds, (AGC Insured), Series
2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
1,200 |
|
|
|
|
|
1,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2012 |
|
| 5.000% due 10/01/2032 (d) |
|
|
|
|
1,250 |
|
|
|
|
|
1,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $488,584) |
|
|
|
|
|
|
|
|
|
|
518,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 0.1% |
|
|
|
| REPURCHASE AGREEMENTS (e) 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $182) |
|
|
|
|
|
182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $488,766) |
|
|
|
|
|
518,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 202.4%
(Cost $488,766) |
|
|
$ |
|
|
518,749 |
|
|
|
| Preferred Shares (58.5)% |
|
|
|
|
|
(150,000 |
) |
|
|
| Other Assets and Liabilities, net (43.9)% |
|
|
(112,497 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
256,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2018. |
(d) RESTRICTED SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issuer Description |
|
Coupon |
|
Maturity
Date |
|
|
Acquisition
Date |
|
|
Cost |
|
|
Market
Value |
|
|
Market Value
as Percentage
of Net Assets |
|
| El Monte, California Certificates of Participation Bonds, (AMBAC Insured), Series 2001 |
|
5.250% |
|
|
01/01/2034 |
|
|
|
08/02/2001 |
|
|
|
$ 14,425 |
|
|
$ |
14,465 |
|
|
|
5.64 |
% |
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series 2012 |
|
5.000 |
|
|
10/01/2032 |
|
|
|
09/25/2017 |
|
|
|
879 |
|
|
|
1,137 |
|
|
|
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 15,304 |
|
|
$ |
15,602 |
|
|
|
6.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 50 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
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 |
|
|
1.500 |
% |
|
|
06/29/2018 |
|
|
|
07/02/2018 |
|
|
$ |
182 |
|
|
U.S. Treasury Notes 2.750% due 11/15/2023 |
|
$ |
(191 |
) |
|
$ |
182 |
|
|
$ |
182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(191 |
) |
|
$ |
182 |
|
|
$ |
182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BORROWINGS AND OTHER
FINANCING TRANSACTIONS SUMMARY
The following is
a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 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 |
|
$ |
182 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
182 |
|
|
$ |
(191 |
) |
|
$ |
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
182 |
|
|
$ |
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 June 30, 2018 in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| California |
|
$ |
0 |
|
|
$ |
505,096 |
|
|
$ |
0 |
|
|
$ |
505,096 |
|
| Illinois |
|
|
0 |
|
|
|
9,657 |
|
|
|
0 |
|
|
|
9,657 |
|
| Puerto Rico |
|
|
0 |
|
|
|
2,677 |
|
|
|
0 |
|
|
|
2,677 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
1,137 |
|
|
|
0 |
|
|
|
1,137 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
182 |
|
|
|
0 |
|
|
|
182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
518,749 |
|
|
$ |
0 |
|
|
$ |
518,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant
transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
51 |
Schedule of Investments PIMCO California 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 184.4% |
|
|
|
| MUNICIPAL BONDS & NOTES 184.2% |
|
|
|
| CALIFORNIA 177.5% |
|
| Alhambra, California Revenue Bonds, Series 2010 |
|
| 7.625% due 01/01/2040 |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,180 |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2014 |
|
| 5.000% due 10/01/2054 |
|
|
|
|
3,000 |
|
|
|
|
|
3,325 |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2017 |
|
| 4.000% due 04/01/2047 |
|
|
|
|
3,000 |
|
|
|
|
|
3,142 |
|
| 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 |
|
|
|
|
|
1,298 |
|
| 5.600% due 06/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,513 |
|
| California Educational Facilities Authority Revenue Bonds, Series 2017 |
|
| 5.000% due 04/01/2047 |
|
|
|
|
835 |
|
|
|
|
|
932 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2008 |
|
| 5.250% due 11/15/2040 |
|
|
|
|
5,400 |
|
|
|
|
|
6,038 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2009 |
|
| 5.750% due 09/01/2039 |
|
|
|
|
250 |
|
|
|
|
|
262 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
3,000 |
|
|
|
|
|
3,137 |
|
| 6.500% due 11/01/2038 |
|
|
|
|
500 |
|
|
|
|
|
535 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 08/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,083 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 11/15/2034 |
|
|
|
|
1,000 |
|
|
|
|
|
1,072 |
|
| 5.000% due 11/15/2040 |
|
|
|
|
4,000 |
|
|
|
|
|
4,391 |
|
| 5.000% due 08/15/2051 |
|
|
|
|
5,555 |
|
|
|
|
|
6,090 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2015 |
|
| 5.000% due 08/15/2054 |
|
|
|
|
5,000 |
|
|
|
|
|
5,579 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 10/01/2047 |
|
|
|
|
1,500 |
|
|
|
|
|
1,549 |
|
| 5.000% due 11/15/2046 |
|
|
|
|
1,000 |
|
|
|
|
|
1,141 |
|
| 5.000% due 08/15/2055 |
|
|
|
|
6,275 |
|
|
|
|
|
7,062 |
|
| California Infrastructure & Economic Development Bank Revenue Bonds, Series
2013 |
|
| 5.000% due 02/01/2039 |
|
|
|
|
10,000 |
|
|
|
|
|
10,916 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
925 |
|
|
|
|
|
1,049 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 01/01/2043 (b) |
|
|
|
|
3,600 |
|
|
|
|
|
3,807 |
|
| 5.000% due 01/01/2042 |
|
|
|
|
1,750 |
|
|
|
|
|
1,973 |
|
| California Pollution Control Financing Authority Revenue Bonds, Series 2010 |
|
| 5.250% due 08/01/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,596 |
|
| 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 |
|
| California Public Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
5,400 |
|
|
|
|
|
5,556 |
|
| California State General Obligation Bonds, Series 2009 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
10,000 |
|
|
|
|
|
10,332 |
|
| California State General Obligation Bonds, Series 2013 |
|
| 5.000% due 11/01/2043 |
|
|
|
|
7,000 |
|
|
|
|
|
7,834 |
|
| California State General Obligation Bonds, Series 2018 |
|
| 4.000% due 10/01/2039 |
|
|
|
|
4,500 |
|
|
|
|
|
4,770 |
|
| California State Public Works Board Revenue Bonds, Series 2009 |
|
| 5.750% due 10/01/2030 |
|
|
|
|
3,000 |
|
|
|
|
|
3,161 |
|
| 6.000% due 11/01/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| California State Public Works Board Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2029 |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,197 |
|
| California State Public Works Board Revenue Bonds, Series 2013 |
|
| 5.000% due 03/01/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,764 |
|
| California State University Revenue Bonds, Series 2015 |
|
| 5.000% due 11/01/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,875 |
|
| 5.000% due 11/01/2047 |
|
|
|
|
5,000 |
|
|
|
|
|
5,699 |
|
| California State University Revenue Bonds, Series 2016 |
|
| 5.000% due 11/01/2041 (b) |
|
|
|
|
11,435 |
|
|
|
|
|
13,218 |
|
| California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series
2018 |
|
| 4.000% due 07/01/2043 |
|
|
|
|
1,350 |
|
|
|
|
|
1,394 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FGIC Insured),
Series 2007 |
|
| 5.750% due 07/01/2047 |
|
|
|
|
3,700 |
|
|
|
|
|
3,700 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FHA Insured), Series
2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
2,135 |
|
|
|
|
|
2,254 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
7,860 |
|
|
|
|
|
8,308 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2010 |
|
| 7.000% due 07/01/2040 |
|
|
|
|
3,760 |
|
|
|
|
|
4,075 |
|
| 7.500% due 06/01/2042 |
|
|
|
|
950 |
|
|
|
|
|
1,003 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2011 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
5,600 |
|
|
|
|
|
6,121 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2012 |
|
| 5.000% due 04/01/2042 |
|
|
|
|
9,705 |
|
|
|
|
|
10,589 |
|
| 5.375% due 05/15/2038 |
|
|
|
|
4,500 |
|
|
|
|
|
4,802 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2016 |
|
| 4.000% due 08/15/2051 |
|
|
|
|
225 |
|
|
|
|
|
230 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,616 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
2,000 |
|
|
|
|
|
2,111 |
|
| 5.000% due 12/01/2046 |
|
|
|
|
2,000 |
|
|
|
|
|
2,129 |
|
| 5.250% due 12/01/2056 |
|
|
|
|
9,200 |
|
|
|
|
|
9,934 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2018 |
|
| 4.000% due 07/01/2048 |
|
|
|
|
1,000 |
|
|
|
|
|
1,021 |
|
| 4.000% due 12/01/2053 |
|
|
|
|
230 |
|
|
|
|
|
234 |
|
| 4.000% due 12/01/2057 |
|
|
|
|
2,000 |
|
|
|
|
|
2,030 |
|
| California Statewide Financing Authority Revenue Bonds, Series 2002 |
|
| 6.000% due 05/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,001 |
|
| Chula Vista, California Revenue Bonds, Series 2004 |
|
| 5.875% due 02/15/2034 |
|
|
|
|
1,000 |
|
|
|
|
|
1,037 |
|
| Coronado Community Development Agency, California Tax Allocation Bonds, (AMBAC Insured), Series
2005 |
|
| 4.875% due 09/01/2035 |
|
|
|
|
7,900 |
|
|
|
|
|
7,916 |
|
| 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 |
|
|
|
|
|
3,795 |
|
| Foothill-Eastern Transportation Corridor Agency, California Revenue Bonds, Series
2014 |
|
| 3.950% due 01/15/2053 |
|
|
|
|
920 |
|
|
|
|
|
924 |
|
| Fremont Community Facilities District No. 1, California Special Tax Bonds, Series
2015 |
|
| 5.000% due 09/01/2045 |
|
|
|
|
1,400 |
|
|
|
|
|
1,531 |
|
| Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series
2007 |
|
| 5.125% due 06/01/2047 |
|
|
|
|
8,500 |
|
|
|
|
|
8,500 |
|
| 5.750% due 06/01/2047 |
|
|
|
|
22,680 |
|
|
|
|
|
22,685 |
|
| Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series
2018 |
|
| 5.000% due 06/01/2047 |
|
|
|
|
8,000 |
|
|
|
|
|
8,222 |
|
| Grossmont-Cuyamaca Community College District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
5,000 |
|
|
|
|
|
5,227 |
|
| Hayward Unified School District, California General Obligation Bonds, Series
2015 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
3,000 |
|
|
|
|
|
3,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Imperial Irrigation District Electric System, California Revenue Bonds, Series
2011 |
|
| 5.000% due 11/01/2041 |
|
$ |
|
|
4,500 |
|
|
$ |
|
|
4,857 |
|
| Imperial Irrigation District Electric System, California Revenue Bonds, Series
2017 |
|
| 4.000% due 11/01/2041 (b) |
|
|
|
|
7,375 |
|
|
|
|
|
7,756 |
|
| Irvine Unified School District, California Special Tax Bonds, Series 2010 |
|
| 6.700% due 09/01/2035 |
|
|
|
|
515 |
|
|
|
|
|
553 |
|
| Lancaster Redevelopment Agency, California Tax Allocation Bonds, Series 2009 |
|
| 6.875% due 08/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,058 |
|
| Long Beach Bond Finance Authority, California Revenue Bonds, Series 2007 |
|
| 5.500% due 11/15/2037 |
|
|
|
|
7,500 |
|
|
|
|
|
9,721 |
|
| Long Beach Unified School District, California General Obligation Bonds, Series
2009 |
|
| 5.250% due 08/01/2019 (b) |
|
|
|
|
9,395 |
|
|
|
|
|
9,780 |
|
| 5.250% due 08/01/2033 (b) |
|
|
|
|
605 |
|
|
|
|
|
629 |
|
| Long Beach, California Airport System Revenue Bonds, Series 2010 |
|
| 5.000% due 06/01/2040 |
|
|
|
|
500 |
|
|
|
|
|
528 |
|
| Los Angeles Community College District, California General Obligation Bonds, Series
2009 |
|
| 10.863% due 08/01/2033 (c) |
|
|
|
|
4,000 |
|
|
|
|
|
4,034 |
|
| Los Angeles Department of Water & Power, California Revenue Bonds, Series
2014 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
3,000 |
|
|
|
|
|
3,358 |
|
| Los Angeles Department of Water & Power, California Revenue Bonds, Series
2016 |
|
| 5.000% due 07/01/2046 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
11,434 |
|
| Los Angeles Unified School District, California General Obligation Bonds, Series
2009 |
|
| 5.000% due 01/01/2034 |
|
|
|
|
11,000 |
|
|
|
|
|
11,369 |
|
| Los Angeles, California Wastewater System Revenue Bonds, Series 2017 |
|
| 5.000% due 06/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,172 |
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
16,445 |
|
|
|
|
|
23,502 |
|
| 7.000% due 11/01/2034 |
|
|
|
|
1,000 |
|
|
|
|
|
1,425 |
|
| Manteca Redevelopment Agency, California Tax Allocation Bonds, (AMBAC Insured), Series
2004 |
|
| 5.000% due 10/01/2036 |
|
|
|
|
10,000 |
|
|
|
|
|
10,006 |
|
| Oakland Unified School District/Alameda County, California General Obligation Bonds, Series
2009 |
|
| 6.125% due 08/01/2029 |
|
|
|
|
5,000 |
|
|
|
|
|
5,255 |
|
| Palomar Community College District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2046 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,192 |
|
| Palomar Health, California Certificates of Participation Bonds, Series 2009 |
|
| 6.750% due 11/01/2039 |
|
|
|
|
4,750 |
|
|
|
|
|
5,080 |
|
| Poway Unified School District, California General Obligation Bonds, Series
2011 |
|
| due 08/01/2040 (a) |
|
|
|
|
11,000 |
|
|
|
|
|
4,699 |
|
| 0.000% due 08/01/2046 (a) |
|
|
|
|
16,000 |
|
|
|
|
|
5,009 |
|
| River Islands Public Financing Authority, California Special Tax Bonds, Series
2015 |
|
| 5.500% due 09/01/2045 |
|
|
|
|
3,000 |
|
|
|
|
|
3,220 |
|
| Sacramento Area Flood Control Agency, California Special Assessment Bonds, Series
2016 |
|
| 5.000% due 10/01/2041 (b) |
|
|
|
|
2,800 |
|
|
|
|
|
3,222 |
|
| 5.000% due 10/01/2047 (b) |
|
|
|
|
1,700 |
|
|
|
|
|
1,947 |
|
| San Diego Community College District, California General Obligation Bonds, Series
2009 |
|
| 8.458% due 08/01/2033 (c) |
|
|
|
|
5,000 |
|
|
|
|
|
5,411 |
|
| San Diego Public Facilities Financing Authority Sewer, California Revenue Bonds, Series
2009 |
|
| 5.250% due 05/15/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,034 |
|
| San Diego Public Facilities Financing Authority Water, California Revenue Bonds, Series
2009 |
|
| 5.250% due 08/01/2038 |
|
|
|
|
4,000 |
|
|
|
|
|
4,012 |
|
| San Diego Regional Building Authority, California Revenue Bonds, Series 2009 |
|
| 5.375% due 02/01/2036 |
|
|
|
|
2,800 |
|
|
|
|
|
2,866 |
|
|
|
|
|
|
|
|
|
|
| 52 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| San Diego Unified School District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 07/01/2047 (b) |
|
$ |
|
|
4,000 |
|
|
$ |
|
|
4,204 |
|
| San Dieguito Union High School District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2042 |
|
|
|
|
2,305 |
|
|
|
|
|
2,442 |
|
| San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series
2017 |
|
| 5.000% due 08/01/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,167 |
|
| San Francisco, California City & County Airport Comm-San Francisco International Airport
Revenue Bonds, Series 2018 |
|
| 5.000% due 05/01/2048 |
|
|
|
|
1,200 |
|
|
|
|
|
1,393 |
|
| San Francisco, California City & County Certificates of Participation Bonds, Series
2009 |
|
| 5.250% due 04/01/2031 |
|
|
|
|
300 |
|
|
|
|
|
308 |
|
| San Jose, California Hotel Tax Revenue Bonds, Series 2011 |
|
| 6.500% due 05/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,123 |
|
| San Marcos Redevelopment Agency Successor Agency, California Tax Allocation Bonds, Series
2015 |
|
| 5.000% due 10/01/2032 |
|
|
|
|
850 |
|
|
|
|
|
977 |
|
| 5.000% due 10/01/2033 |
|
|
|
|
1,125 |
|
|
|
|
|
1,285 |
|
| San Marcos Unified School District, California General Obligation Bonds, Series
2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,300 |
|
|
|
|
|
1,432 |
|
| San Mateo County, California Community College District General Obligation Bonds, (NPFGC
Insured), Series 2006 |
|
| 0.000% due 09/01/2034 (a) |
|
|
|
|
12,000 |
|
|
|
|
|
7,071 |
|
| Santa Clara County, California General Obligation Bonds, Series 2013 |
|
| 4.000% due 08/01/2041 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,138 |
|
| Santa Cruz County, California Redevelopment Agency Tax Allocation Bonds, Series
2009 |
|
| 7.000% due 09/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Santa Monica Community College District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2047 (b) |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,176 |
|
| Sonoma Valley Unified School District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2047 |
|
|
|
|
3,000 |
|
|
|
|
|
3,139 |
|
| Tender Option Bond Trust Receipts/Certificates, California Revenue Bonds, Series
2010 |
|
| 7.950% due 05/15/2040 (c) |
|
|
|
|
7,500 |
|
|
|
|
|
8,387 |
|
| Torrance, California Revenue Bonds, Series 2010 |
|
| 5.000% due 09/01/2040 |
|
|
|
|
3,100 |
|
|
|
|
|
3,249 |
|
| Turlock Irrigation District, California Revenue Bonds, Series 2011 |
|
| 5.500% due 01/01/2041 |
|
|
|
|
1,700 |
|
|
|
|
|
1,831 |
|
| Tustin Unified School District, California Special Tax Bonds, Series 2010 |
|
| 6.000% due 09/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,093 |
|
| University of California Revenue Bonds, Series 2016 |
|
| 4.000% due 05/15/2046 |
|
|
|
|
5,100 |
|
|
|
|
|
5,310 |
|
| 5.000% due 05/15/2037 (b) |
|
|
|
|
11,900 |
|
|
|
|
|
13,737 |
|
| Washington Township Health Care District, California General Obligation Bonds, Series
2013 |
|
| 5.000% due 08/01/2043 |
|
|
|
|
3,000 |
|
|
|
|
|
3,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
478,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 4.6% |
|
| Chicago, Illinois General Obligation Bonds, Series 2007 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
2,350 |
|
|
|
|
|
2,493 |
|
| Chicago, Illinois General Obligation Bonds, Series 2015 |
|
| 5.250% due 01/01/2028 |
|
|
|
|
6,035 |
|
|
|
|
|
6,488 |
|
| Chicago, Illinois General Obligation Bonds, Series 2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,256 |
|
| Illinois State General Obligation Bonds, Series 2017 |
|
| 5.000% due 11/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| NEW YORK 0.6% |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2005 |
|
| 5.250% due 10/01/2035 |
|
$ |
|
|
1,250 |
|
|
$ |
|
|
1,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.0% |
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM Insured), Series
2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
2,500 |
|
|
|
|
|
2,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
1,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes (Cost $458,370) |
|
|
|
|
|
|
|
|
|
|
496,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 0.2% |
|
|
|
| REPURCHASE AGREEMENTS (d) 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Short-Term Instruments (Cost $624) |
|
|
|
|
|
|
|
|
|
|
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments in Securities (Cost $458,994) |
|
|
|
|
|
|
|
|
|
|
496,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments 184.4% (Cost $458,994) |
|
|
|
|
|
|
|
$ |
|
|
496,804 |
|
|
|
| Preferred Shares (60.5)% |
|
|
|
|
|
|
|
|
|
|
(163,000 |
) |
|
|
| Other Assets and Liabilities, net (23.9)% |
|
|
|
|
|
(64,355 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
269,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 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 |
|
|
1.500 |
% |
|
|
06/29/2018 |
|
|
|
07/02/2018 |
|
|
$ |
624 |
|
|
U.S. Treasury Notes 2.750% due 11/15/2023 |
|
$ |
(637 |
) |
|
$ |
624 |
|
|
$ |
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
$ |
(637 |
) |
|
$ |
624 |
|
|
$ |
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
53 |
Schedule of Investments PIMCO California
Municipal Income Fund II (Cont.)
June 30, 2018 (Unaudited)
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value
of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 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 |
|
$ |
624 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
624 |
|
|
$ |
(637 |
) |
|
$ |
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
624 |
|
|
$ |
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 June 30, 2018 in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| California |
|
$ |
0 |
|
|
$ |
478,261 |
|
|
$ |
0 |
|
|
$ |
478,261 |
|
| Illinois |
|
|
0 |
|
|
|
12,297 |
|
|
|
0 |
|
|
|
12,297 |
|
| New York |
|
|
0 |
|
|
|
1,555 |
|
|
|
0 |
|
|
|
1,555 |
|
| Puerto Rico |
|
|
0 |
|
|
|
2,786 |
|
|
|
0 |
|
|
|
2,786 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
1,281 |
|
|
|
0 |
|
|
|
1,281 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
624 |
|
|
|
0 |
|
|
|
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
496,804 |
|
|
$ |
0 |
|
|
$ |
496,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant
transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
|
|
| 54 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO California Municipal Income Fund III
June 30, 2018 (Unaudited)
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 200.9% |
|
|
|
| MUNICIPAL BONDS & NOTES 200.9% |
|
|
|
| CALIFORNIA 194.3% |
|
| Bay Area Toll Authority, California Revenue Bonds, Series 2013 |
|
| 5.250% due 04/01/2048 |
|
$ |
|
|
8,000 |
|
|
$ |
|
|
9,269 |
|
| California County Tobacco Securitization Agency Revenue Bonds, Series 2002 |
|
| 5.875% due 06/01/2035 |
|
|
|
|
8,100 |
|
|
|
|
|
8,179 |
|
| 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 |
|
|
|
|
|
1,739 |
|
| 5.600% due 06/01/2036 |
|
|
|
|
2,000 |
|
|
|
|
|
2,017 |
|
| California Educational Facilities Authority Revenue Bonds, Series 2009 |
|
| 5.000% due 01/01/2039 (b) |
|
|
|
|
9,800 |
|
|
|
|
|
9,981 |
|
| 5.000% due 10/01/2039 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,091 |
|
| California Educational Facilities Authority Revenue Bonds, Series 2017 |
|
| 5.000% due 04/01/2047 |
|
|
|
|
700 |
|
|
|
|
|
781 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2008 |
|
| 5.000% due 08/15/2038 |
|
|
|
|
5,000 |
|
|
|
|
|
5,022 |
|
| 5.250% due 11/15/2040 |
|
|
|
|
4,550 |
|
|
|
|
|
5,087 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2009 |
|
| 5.750% due 09/01/2039 |
|
|
|
|
4,000 |
|
|
|
|
|
4,194 |
|
| 6.000% due 07/01/2039 |
|
|
|
|
4,000 |
|
|
|
|
|
4,183 |
|
| 6.500% due 11/01/2038 |
|
|
|
|
500 |
|
|
|
|
|
535 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2010 |
|
| 5.000% due 11/15/2036 |
|
|
|
|
1,300 |
|
|
|
|
|
1,362 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 08/15/2035 |
|
|
|
|
1,000 |
|
|
|
|
|
1,083 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
1,200 |
|
|
|
|
|
1,313 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 08/15/2051 |
|
|
|
|
5,205 |
|
|
|
|
|
5,707 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2015 |
|
| 5.000% due 08/15/2054 |
|
|
|
|
3,000 |
|
|
|
|
|
3,347 |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2016 |
|
| 4.000% due 08/15/2039 (b) |
|
|
|
|
6,500 |
|
|
|
|
|
6,798 |
|
| 4.000% due 10/01/2047 |
|
|
|
|
750 |
|
|
|
|
|
774 |
|
| 5.000% due 11/15/2046 (b) |
|
|
|
|
9,500 |
|
|
|
|
|
10,836 |
|
| 5.000% due 08/15/2055 |
|
|
|
|
5,000 |
|
|
|
|
|
5,627 |
|
| California Infrastructure & Economic Development Bank Revenue Bonds, Series
2013 |
|
| 5.000% due 02/01/2039 |
|
|
|
|
10,000 |
|
|
|
|
|
10,916 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2011 |
|
| 7.750% due 04/01/2031 |
|
|
|
|
710 |
|
|
|
|
|
805 |
|
| California Municipal Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 01/01/2043 (b) |
|
|
|
|
2,900 |
|
|
|
|
|
3,067 |
|
| California Pollution Control Financing Authority Revenue Bonds, Series 2010 |
|
| 5.250% due 08/01/2040 |
|
|
|
|
1,250 |
|
|
|
|
|
1,330 |
|
| 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 |
|
| California Public Finance Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
4,200 |
|
|
|
|
|
4,321 |
|
| California School Finance Authority Revenue Bonds, Series 2017 |
|
| 5.000% due 07/01/2047 |
|
|
|
|
1,115 |
|
|
|
|
|
1,238 |
|
| California State General Obligation Bonds, Series 2009 |
|
| 6.000% due 04/01/2038 |
|
|
|
|
7,300 |
|
|
|
|
|
7,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| California State General Obligation Bonds, Series 2013 |
|
| 5.000% due 11/01/2043 |
|
$ |
|
|
5,000 |
|
|
$ |
|
|
5,596 |
|
| California State Public Works Board Revenue Bonds, Series 2009 |
|
| 6.000% due 11/01/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,119 |
|
| California State Public Works Board Revenue Bonds, Series 2013 |
|
| 5.000% due 03/01/2038 |
|
|
|
|
2,500 |
|
|
|
|
|
2,764 |
|
| California State University Revenue Bonds, Series 2011 |
|
| 5.000% due 11/01/2042 |
|
|
|
|
6,200 |
|
|
|
|
|
6,748 |
|
| California State University Revenue Bonds, Series 2015 |
|
| 5.000% due 11/01/2047 |
|
|
|
|
6,750 |
|
|
|
|
|
7,694 |
|
| California Statewide Communities Development Authority Revenue Bonds, (CM Insured), Series
2018 |
|
| 4.000% due 07/01/2047 |
|
|
|
|
250 |
|
|
|
|
|
257 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FGIC Insured),
Series 2007 |
|
| 5.750% due 07/01/2047 |
|
|
|
|
3,100 |
|
|
|
|
|
3,100 |
|
| California Statewide Communities Development Authority Revenue Bonds, (FHA Insured), Series
2009 |
|
| 6.625% due 08/01/2029 |
|
|
|
|
1,780 |
|
|
|
|
|
1,879 |
|
| 6.750% due 02/01/2038 |
|
|
|
|
6,430 |
|
|
|
|
|
6,797 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2010 |
|
| 6.250% due 10/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
523 |
|
| 7.500% due 06/01/2042 |
|
|
|
|
950 |
|
|
|
|
|
1,003 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2011 |
|
| 5.000% due 12/01/2041 |
|
|
|
|
11,000 |
|
|
|
|
|
12,106 |
|
| 6.000% due 08/15/2042 |
|
|
|
|
1,800 |
|
|
|
|
|
1,967 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2012 |
|
| 5.000% due 04/01/2042 |
|
|
|
|
11,220 |
|
|
|
|
|
12,241 |
|
| 5.375% due 05/15/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,134 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2014 |
|
| 5.500% due 12/01/2054 |
|
|
|
|
2,500 |
|
|
|
|
|
2,718 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2016 |
|
| 4.000% due 08/15/2051 |
|
|
|
|
200 |
|
|
|
|
|
205 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,100 |
|
|
|
|
|
1,185 |
|
| 5.000% due 06/01/2046 |
|
|
|
|
1,000 |
|
|
|
|
|
1,055 |
|
| 5.000% due 12/01/2046 |
|
|
|
|
3,100 |
|
|
|
|
|
3,300 |
|
| California Statewide Communities Development Authority Revenue Bonds, Series
2018 |
|
| 4.000% due 07/01/2048 |
|
|
|
|
850 |
|
|
|
|
|
868 |
|
| 4.000% due 12/01/2057 |
|
|
|
|
2,000 |
|
|
|
|
|
2,030 |
|
| California Statewide Communities Development Authority Revenue Notes, Series
2011 |
|
| 6.500% due 11/01/2021 |
|
|
|
|
240 |
|
|
|
|
|
259 |
|
| Chaffey Joint Union High School District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
4,500 |
|
|
|
|
|
4,713 |
|
| Chula Vista, California Revenue Bonds, Series 2004 |
|
| 5.875% due 02/15/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,074 |
|
| Desert Community College District, California General Obligation Bonds, Series
2016 |
|
| 5.000% due 08/01/2037 (b) |
|
|
|
|
5,645 |
|
|
|
|
|
6,529 |
|
| Eastern Municipal Water District Financing Authority, California Revenue Bonds, Series
2017 |
|
| 5.000% due 07/01/2047 (b) |
|
|
|
|
5,500 |
|
|
|
|
|
6,413 |
|
| 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 |
|
|
|
|
|
3,057 |
|
| Foothill-Eastern Transportation Corridor Agency, California Revenue Bonds, Series
2014 |
|
| 3.950% due 01/15/2053 |
|
|
|
|
720 |
|
|
|
|
|
723 |
|
| Fremont Community Facilities District No. 1, California Special Tax Bonds, Series
2015 |
|
| 5.000% due 09/01/2045 |
|
|
|
|
1,400 |
|
|
|
|
|
1,531 |
|
| Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series
2007 |
|
| 5.750% due 06/01/2047 |
|
|
|
|
14,275 |
|
|
|
|
|
14,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series
2018 |
|
| 5.000% due 06/01/2047 |
|
$ |
|
|
6,000 |
|
|
$ |
|
|
6,167 |
|
| Grossmont-Cuyamaca Community College District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
2,250 |
|
|
|
|
|
2,352 |
|
| Hayward Unified School District, California General Obligation Bonds, Series
2015 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
5,000 |
|
|
|
|
|
5,561 |
|
| Imperial Irrigation District Electric System, California Revenue Bonds, Series
2016 |
|
| 5.000% due 11/01/2041 (b) |
|
|
|
|
4,000 |
|
|
|
|
|
4,592 |
|
| Imperial Irrigation District Electric System, California Revenue Bonds, Series
2017 |
|
| 4.000% due 11/01/2041 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,155 |
|
| Lancaster Redevelopment Agency, California Tax Allocation Bonds, Series 2009 |
|
| 6.875% due 08/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
528 |
|
| Long Beach Unified School District, California General Obligation Bonds, Series
2009 |
|
| 5.750% due 08/01/2033 |
|
|
|
|
5,000 |
|
|
|
|
|
5,232 |
|
| Long Beach Unified School District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2043 (b) |
|
|
|
|
4,500 |
|
|
|
|
|
4,718 |
|
| Long Beach, California Airport System Revenue Bonds, Series 2010 |
|
| 5.000% due 06/01/2040 |
|
|
|
|
2,120 |
|
|
|
|
|
2,237 |
|
| Los Angeles Community College District, California General Obligation Bonds, Series
2009 |
|
| 10.863% due 08/01/2033 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,008 |
|
| Los Angeles Department of Water & Power, California Revenue Bonds, Series
2009 |
|
| 5.000% due 07/01/2039 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,157 |
|
| Los Angeles Department of Water & Power, California Revenue Bonds, Series
2012 |
|
| 5.000% due 07/01/2037 |
|
|
|
|
2,000 |
|
|
|
|
|
2,204 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
2,115 |
|
|
|
|
|
2,321 |
|
| Los Angeles Department of Water & Power, California Revenue Bonds, Series
2014 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,119 |
|
| Los Angeles Unified School District, California General Obligation Bonds, Series
2009 |
|
| 5.000% due 01/01/2034 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
10,335 |
|
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 |
|
| 6.500% due 11/01/2039 |
|
|
|
|
9,825 |
|
|
|
|
|
14,041 |
|
| 7.000% due 11/01/2034 |
|
|
|
|
2,285 |
|
|
|
|
|
3,256 |
|
| Malibu, California Certificates of Participation Bonds, Series 2009 |
|
| 5.000% due 07/01/2039 |
|
|
|
|
550 |
|
|
|
|
|
570 |
|
| Manteca Financing Authority, California Revenue Bonds, Series 2009 |
|
| 5.750% due 12/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,058 |
|
| Montebello Unified School District, California General Obligation Bonds, (AGM Insured), Series
2008 |
|
| 5.000% due 08/01/2033 |
|
|
|
|
3,000 |
|
|
|
|
|
3,009 |
|
| Oakland Redevelopment Agency Successor Agency, California Tax Allocation Bonds, (AGM Insured),
Series 2015 |
|
| 5.000% due 09/01/2036 |
|
|
|
|
800 |
|
|
|
|
|
900 |
|
| Palomar Community College District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2046 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,144 |
|
| Peralta Community College District, California General Obligation Bonds, Series
2009 |
|
| 5.000% due 08/01/2039 |
|
|
|
|
1,250 |
|
|
|
|
|
1,299 |
|
| Regents of the University of California Medical Center Pooled Revenue Bonds, Series
2013 |
|
| 5.000% due 05/15/2043 |
|
|
|
|
5,000 |
|
|
|
|
|
5,528 |
|
| River Islands Public Financing Authority, California Special Tax Bonds, Series
2015 |
|
| 5.500% due 09/01/2045 |
|
|
|
|
3,000 |
|
|
|
|
|
3,220 |
|
| Sacramento Area Flood Control Agency, California Special Assessment Bonds, Series
2016 |
|
| 5.000% due 10/01/2041 (b) |
|
|
|
|
2,200 |
|
|
|
|
|
2,531 |
|
| 5.000% due 10/01/2047 (b) |
|
|
|
|
1,500 |
|
|
|
|
|
1,718 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
55 |
Schedule of Investments PIMCO California
Municipal Income Fund III (Cont.)
June 30, 2018 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Sacramento Municipal Utility District, California Revenue Bonds, Series 2013 |
|
| 5.000% due 08/15/2037 |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,366 |
|
| San Diego County, California Regional Airport Authority Revenue Bonds, Series
2013 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
1,325 |
|
|
|
|
|
1,476 |
|
| San Diego Public Facilities Financing Authority Sewer, California Revenue Bonds, Series
2009 |
|
| 5.250% due 05/15/2039 |
|
|
|
|
4,000 |
|
|
|
|
|
4,135 |
|
| San Diego Regional Building Authority, California Revenue Bonds, Series 2009 |
|
| 5.375% due 02/01/2036 |
|
|
|
|
2,200 |
|
|
|
|
|
2,252 |
|
| San Diego Unified School District, California General Obligation Bonds, Series
2017 |
|
| 5.000% due 07/01/2047 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,153 |
|
| San Dieguito Union High School District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,119 |
|
| San Francisco Bay Area Rapid Transit District, California General Obligation Bonds, Series
2017 |
|
| 4.000% due 08/01/2042 (b) |
|
|
|
|
4,500 |
|
|
|
|
|
4,796 |
|
| San Francisco, California City & County Certificates of Participation Bonds, Series
2009 |
|
| 5.250% due 04/01/2031 |
|
|
|
|
550 |
|
|
|
|
|
565 |
|
| San Francisco, California City & County Redevelopment Agency Special Tax Bonds, Series
2013 |
|
| 5.000% due 08/01/2028 |
|
|
|
|
1,505 |
|
|
|
|
|
1,641 |
|
| San Joaquin County Transportation Authority, California Revenue Bonds, Series
2017 |
|
| 4.000% due 03/01/2041 (b) |
|
|
|
|
1,800 |
|
|
|
|
|
1,887 |
|
| 5.000% due 03/01/2041 (b) |
|
|
|
|
8,200 |
|
|
|
|
|
9,565 |
|
| San Jose, California Hotel Tax Revenue Bonds, Series 2011 |
|
| 6.500% due 05/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| San Marcos Redevelopment Agency Successor Agency, California Tax Allocation Bonds, Series
2015 |
|
| 5.000% due 10/01/2034 |
|
$ |
|
|
885 |
|
|
$ |
|
|
1,005 |
|
| San Marcos Unified School District, California General Obligation Bonds, Series
2011 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,102 |
|
| San Mateo County, California Community College District General Obligation Bonds, (NPFGC
Insured), Series 2006 |
|
| 0.000% due 09/01/2034 (a) |
|
|
|
|
2,530 |
|
|
|
|
|
1,491 |
|
| Santa Clara County, California General Obligation Bonds, Series 2013 |
|
| 4.000% due 08/01/2041 (b) |
|
|
|
|
3,000 |
|
|
|
|
|
3,104 |
|
| Santa Cruz County, California Redevelopment Agency Tax Allocation Bonds, Series
2009 |
|
| 7.000% due 09/01/2036 |
|
|
|
|
1,200 |
|
|
|
|
|
1,276 |
|
| Santa Monica Community College District, California General Obligation Bonds, Series
2018 |
|
| 4.000% due 08/01/2047 (b) |
|
|
|
|
2,000 |
|
|
|
|
|
2,117 |
|
| University of California Revenue Bonds, Series 2016 |
|
| 4.000% due 05/15/2046 (b) |
|
|
|
|
8,710 |
|
|
|
|
|
9,068 |
|
| Washington Township Health Care District, California General Obligation Bonds, Series
2013 |
|
| 5.000% due 08/01/2043 |
|
|
|
|
2,500 |
|
|
|
|
|
2,782 |
|
| Western Municipal Water District Facilities Authority, California Revenue Bonds, Series
2009 |
|
| 5.000% due 10/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
416,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 5.1% |
|
| Chicago, Illinois General Obligation Bonds, Series 2007 |
|
| 5.500% due 01/01/2035 |
|
|
|
|
3,000 |
|
|
|
|
|
3,206 |
|
| Chicago, Illinois General Obligation Bonds, Series 2015 |
|
| 5.250% due 01/01/2028 |
|
|
|
|
3,700 |
|
|
|
|
|
3,977 |
|
| 5.500% due 01/01/2033 |
|
|
|
|
2,500 |
|
|
|
|
|
2,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE (000S) |
|
| Illinois State General Obligation Bonds, Series 2017 |
|
| 5.000% due 11/01/2029 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.1% |
|
| Puerto Rico Electric Power Authority Revenue Bonds, (AGM Insured), Series
2007 |
|
| 5.250% due 07/01/2031 ^ |
|
|
|
|
1,000 |
|
|
|
|
|
1,114 |
|
| Puerto Rico Highway & Transportation Authority Revenue Bonds, (AGC Insured), Series
2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.4% |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $407,119) |
|
|
|
|
|
|
|
|
430,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $407,119) |
|
|
|
|
|
|
|
|
430,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 200.9%
(Cost $407,119) |
|
|
|
|
|
$ |
|
|
430,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred Shares (58.3)% |
|
|
|
|
|
|
|
|
|
|
(125,000 |
) |
|
|
| Other Assets and Liabilities, net (42.6)% |
|
|
|
|
|
(91,304 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
214,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2018. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to
the inputs used as of June 30, 2018 in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| California |
|
$ |
0 |
|
|
$ |
416,700 |
|
|
$ |
0 |
|
|
$ |
416,700 |
|
| Illinois |
|
|
0 |
|
|
|
10,929 |
|
|
|
0 |
|
|
|
10,929 |
|
| Puerto Rico |
|
|
0 |
|
|
|
2,230 |
|
|
|
0 |
|
|
|
2,230 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
915 |
|
|
|
0 |
|
|
|
915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
430,774 |
|
|
$ |
0 |
|
|
$ |
430,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant
transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
|
|
| 56 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO New York Municipal Income Fund
June 30, 2018 (Unaudited)
(Amounts in thousands*, except number of shares, contracts and units, if any)
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|
PRINCIPAL
AMOUNT
(000S) |
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|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 182.0% |
|
|
|
| MUNICIPAL BONDS & NOTES 181.4% |
|
|
|
| CALIFORNIA 1.9% |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 11/15/2046 (c) |
|
$ |
|
|
1,500 |
|
|
$ |
|
|
1,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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1,711 |
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 3.5% |
|
| Chicago, Illinois General Obligation Bonds, Series 2007 |
|
| 5.500% due 01/01/2042 |
|
|
|
|
885 |
|
|
|
|
|
939 |
|
| Chicago, Illinois General Obligation Bonds, Series 2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,128 |
|
| Illinois State General Obligation Notes, Series 2017 |
|
| 5.000% due 11/01/2026 |
|
|
|
|
1,000 |
|
|
|
|
|
1,066 |
|
|
|
|
|
|
|
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|
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3,133 |
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 171.4% |
|
| Build NYC Resource Corp., New York Revenue Bonds, Series 2017 |
|
| 5.000% due 11/01/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,254 |
|
| Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 07/01/2041 |
|
|
|
|
900 |
|
|
|
|
|
909 |
|
| Housing Development Corp., New York Revenue Bonds, Series 2017 |
|
| 3.700% due 11/01/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
995 |
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds, Series 2011 |
|
| 5.250% due 02/15/2047 |
|
|
|
|
3,000 |
|
|
|
|
|
3,226 |
|
| 5.750% due 02/15/2047 |
|
|
|
|
4,000 |
|
|
|
|
|
4,384 |
|
| Long Island Power Authority, New York Revenue Bonds, Series 2009 |
|
| 5.750% due 04/01/2039 |
|
|
|
|
4,500 |
|
|
|
|
|
4,645 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2012 |
|
| 5.000% due 11/15/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,218 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2013 |
|
| 5.000% due 11/15/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,090 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2016 |
|
| 5.000% due 11/15/2031 (c) |
|
|
|
|
6,500 |
|
|
|
|
|
7,497 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2017 |
|
| 4.000% due 11/15/2038 |
|
|
|
|
1,425 |
|
|
|
|
|
1,476 |
|
| 4.000% due 11/15/2042 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,030 |
|
| Monroe County Industrial Development Corp., New York Revenue Bonds, Series
2017 |
|
| 5.000% due 07/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,163 |
|
| 5.000% due 12/01/2046 |
|
|
|
|
1,000 |
|
|
|
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|
1,102 |
|
| Monroe County, New York Industrial Development Agency Revenue Bonds, Series
2017 |
|
| 4.000% due 07/01/2036 (c) |
|
|
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|
1,000 |
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|
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|
1,056 |
|
| Nassau County, New York General Obligation Bonds, (AGM Insured), Series 2018 |
|
| 5.000% due 04/01/2036 |
|
|
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|
2,000 |
|
|
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|
2,308 |
|
| Nassau County, New York Industrial Development Agency Revenue Bonds, Series
2014 |
|
| 2.000% due 01/01/2049 ^(a) |
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|
433 |
|
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|
74 |
|
| 6.700% due 01/01/2049 |
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|
1,200 |
|
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|
1,277 |
|
| Nassau County, New York Tobacco Settlement Corp. Revenue Bonds, Series 2006 |
|
| 5.125% due 06/01/2046 |
|
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|
1,230 |
|
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|
1,224 |
|
| New York City Health & Hospital Corp., New York Revenue Bonds, Series
2010 |
|
| 5.000% due 02/15/2030 |
|
|
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|
3,500 |
|
|
|
|
|
3,663 |
|
| New York City Industrial Development Agency, New York Revenue Bonds, (AGC Insured),
Series 2009 |
|
| 6.500% due 01/01/2046 |
|
|
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|
900 |
|
|
|
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|
921 |
|
| 7.000% due 03/01/2049 |
|
|
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|
3,200 |
|
|
|
|
|
3,311 |
|
| New York City Transitional Finance Authority Building Aid, New York Revenue Bonds, Series
2009 |
|
| 5.250% due 01/15/2039 |
|
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|
5,000 |
|
|
|
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|
5,092 |
|
|
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|
PRINCIPAL
AMOUNT
(000S) |
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|
MARKET
VALUE
(000S) |
|
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series
2017 |
|
| 4.000% due 08/01/2042 (c) |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,085 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2009 |
|
| 5.000% due 06/15/2040 |
|
|
|
|
2,500 |
|
|
|
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|
2,574 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2012 |
|
| 4.000% due 06/15/2047 (c) |
|
|
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|
6,000 |
|
|
|
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|
6,132 |
|
| New York City, New York General Obligation Bonds, Series 2013 |
|
| 5.000% due 08/01/2031 |
|
|
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|
2,000 |
|
|
|
|
|
2,246 |
|
| New York City, New York General Obligation Bonds, Series 2018 |
|
| 4.000% due 03/01/2042 (c) |
|
|
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|
5,800 |
|
|
|
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|
6,021 |
|
| 5.000% due 04/01/2045 (c) |
|
|
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|
2,700 |
|
|
|
|
|
3,121 |
|
| New York City, New York Transitional Finance Authority Future Tax Secured Revenue Bonds,
Series 2017 |
|
| 5.000% due 08/01/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,155 |
|
| New York Counties Tobacco Trust IV Revenue Bonds, Series 2005 |
|
| 0.000% due 06/01/2050 (b) |
|
|
|
|
20,000 |
|
|
|
|
|
2,815 |
|
| 5.000% due 06/01/2045 |
|
|
|
|
5,000 |
|
|
|
|
|
5,000 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2005 |
|
| 5.250% due 10/01/2035 (c) |
|
|
|
|
3,760 |
|
|
|
|
|
4,679 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2010 |
|
| 5.125% due 01/15/2044 |
|
|
|
|
6,150 |
|
|
|
|
|
6,426 |
|
| 6.375% due 07/15/2049 |
|
|
|
|
1,500 |
|
|
|
|
|
1,584 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2011 |
|
| 5.000% due 12/15/2041 |
|
|
|
|
2,000 |
|
|
|
|
|
2,166 |
|
| 5.750% due 11/15/2051 |
|
|
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|
6,000 |
|
|
|
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|
6,689 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
1,900 |
|
|
|
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|
2,018 |
|
| New York State Dormitory Authority Revenue Bonds, (AGC Insured), Series 2009 |
|
| 5.125% due 07/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,035 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2008 |
|
| 4.500% due 07/01/2035 |
|
|
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|
2,500 |
|
|
|
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|
2,500 |
|
| 5.000% due 07/01/2038 |
|
|
|
|
1,500 |
|
|
|
|
|
1,500 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2009 |
|
| 5.000% due 03/15/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,025 |
|
| 5.125% due 07/01/2039 |
|
|
|
|
1,300 |
|
|
|
|
|
1,345 |
|
| 5.500% due 03/01/2039 |
|
|
|
|
1,800 |
|
|
|
|
|
1,847 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2010 |
|
| 5.000% due 07/01/2035 |
|
|
|
|
500 |
|
|
|
|
|
530 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
1,250 |
|
|
|
|
|
1,341 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 07/01/2031 |
|
|
|
|
2,000 |
|
|
|
|
|
2,163 |
|
| 5.500% due 07/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,110 |
|
| 6.000% due 07/01/2040 |
|
|
|
|
1,225 |
|
|
|
|
|
1,327 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2013 |
|
| 5.000% due 02/15/2029 |
|
|
|
|
1,000 |
|
|
|
|
|
1,113 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,043 |
|
| 4.000% due 07/01/2047 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,073 |
|
| 5.000% due 12/01/2031 |
|
|
|
|
500 |
|
|
|
|
|
562 |
|
| New York State Thruway Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 01/01/2037 |
|
|
|
|
1,000 |
|
|
|
|
|
1,084 |
|
| 5.000% due 01/01/2042 |
|
|
|
|
3,645 |
|
|
|
|
|
3,948 |
|
| New York State Urban Development Corp. Revenue Bonds, Series 2009 |
|
| 5.000% due 03/15/2036 (c) |
|
|
|
|
1,800 |
|
|
|
|
|
1,845 |
|
| Onondaga County, New York Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
600 |
|
|
|
|
|
653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Port Authority of New York & New Jersey Revenue Bonds, Series 2010 |
|
| 6.000% due 12/01/2036 |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,096 |
|
| Port Authority of New York & New Jersey Revenue Bonds, Series 2016 |
|
| 5.250% due 11/15/2056 (c) |
|
|
|
|
1,500 |
|
|
|
|
|
1,735 |
|
| Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series
2009 |
|
| 5.250% due 11/15/2018 (c) |
|
|
|
|
1,139 |
|
|
|
|
|
1,155 |
|
| 5.250% due 11/15/2034 (c) |
|
|
|
|
1,862 |
|
|
|
|
|
1,888 |
|
| Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series
2017 |
|
| 5.000% due 11/15/2047 (c) |
|
|
|
|
3,500 |
|
|
|
|
|
4,006 |
|
| Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series
2018 |
|
| 4.000% due 11/15/2048 |
|
|
|
|
900 |
|
|
|
|
|
937 |
|
| Troy Industrial Development Authority, New York Revenue Bonds, Series 2002 |
|
| 4.625% due 09/01/2026 |
|
|
|
|
5,860 |
|
|
|
|
|
6,264 |
|
| TSASC, Inc., New York Revenue Bonds, Series 2017 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
2,000 |
|
|
|
|
|
2,169 |
|
| Ulster County, New York Capital Resource Corp. Revenue Bonds, Series 2017 |
|
| 5.250% due 09/15/2047 |
|
|
|
|
500 |
|
|
|
|
|
501 |
|
| Utility Debt Securitization Authority Revenue Bonds, Series 2015 |
|
| 5.000% due 12/15/2037 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,143 |
|
| Westchester County Healthcare Corp., New York Revenue Bonds, Series 2010 |
|
| 6.125% due 11/01/2037 |
|
|
|
|
910 |
|
|
|
|
|
998 |
|
| Yonkers Economic Development Corp., New York Revenue Bonds, Series 2010 |
|
| 6.000% due 10/15/2030 |
|
|
|
|
180 |
|
|
|
|
|
187 |
|
| Yonkers Industrial Development Agency, New York Revenue Bonds, Series 2001 |
|
| 6.000% due 06/01/2041 |
|
|
|
|
400 |
|
|
|
|
|
416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
155,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 3.2% |
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series
2007 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
2,875 |
|
|
|
|
|
2,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 1.0% |
|
| Puerto Rico Highway & Transportation Authority Revenue Bonds, (AGC Insured), Series
2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
800 |
|
|
|
|
|
893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.4% |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2010 |
|
| 5.000% due 10/01/2029 |
|
|
|
|
400 |
|
|
|
|
|
366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $157,119) |
|
|
|
|
|
164,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 0.6% |
|
|
|
| REPURCHASE AGREEMENTS (d) 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $531) |
|
|
|
|
|
531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $157,650) |
|
|
|
|
|
164,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 182.0%
(Cost $157,650) |
|
|
$ |
|
|
164,748 |
|
|
|
| Preferred Share (51.9)% |
|
|
|
|
|
(47,000 |
) |
|
|
| Other Assets and Liabilities, net (30.1)% |
|
|
|
|
|
(27,227 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
90,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
57 |
Schedule of Investments PIMCO New York
Municipal Income Fund (Cont.)
June 30, 2018 (Unaudited)
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 |
|
|
1.500 |
% |
|
|
06/29/2018 |
|
|
|
07/02/2018 |
|
|
$ |
531 |
|
|
U.S. Treasury Notes 2.750% due 11/15/2023 |
|
$ |
(542 |
) |
|
$ |
531 |
|
|
$ |
531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
$ |
(542 |
) |
|
$ |
531 |
|
|
$ |
531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BORROWINGS AND OTHER
FINANCING TRANSACTIONS SUMMARY
The following is
a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 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 |
|
$ |
531 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
531 |
|
|
$ |
(542 |
) |
|
$ |
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
531 |
|
|
$ |
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 June 30, 2018 in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| California |
|
$ |
0 |
|
|
$ |
1,711 |
|
|
$ |
0 |
|
|
$ |
1,711 |
|
| Illinois |
|
|
0 |
|
|
|
3,133 |
|
|
|
0 |
|
|
|
3,133 |
|
| New York |
|
|
0 |
|
|
|
155,165 |
|
|
|
0 |
|
|
|
155,165 |
|
| Ohio |
|
|
0 |
|
|
|
2,949 |
|
|
|
0 |
|
|
|
2,949 |
|
| Puerto Rico |
|
|
0 |
|
|
|
893 |
|
|
|
0 |
|
|
|
893 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
366 |
|
|
|
0 |
|
|
|
366 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
531 |
|
|
|
0 |
|
|
|
531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
164,748 |
|
|
$ |
0 |
|
|
$ |
164,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant
transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
|
|
| 58 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
Schedule of Investments PIMCO New York Municipal Income Fund II
June 30, 2018 (Unaudited)
(Amounts in thousands*, except number of shares, contracts and units, if any)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 196.3% |
|
|
|
| MUNICIPAL BONDS & NOTES 194.0% |
|
|
|
| CALIFORNIA 1.9% |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 11/15/2046 (c) |
|
$ |
|
|
2,000 |
|
|
$ |
|
|
2,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FLORIDA 0.9% |
|
| Clearwater, Florida Water & Sewer Revenue Bonds, Series 2009 |
|
| 5.250% due 12/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 2.8% |
|
| Chicago, Illinois General Obligation Bonds, Series 2017 |
|
| 6.000% due 01/01/2038 |
|
|
|
|
2,000 |
|
|
|
|
|
2,256 |
|
| Illinois State General Obligation Notes, Series 2017 |
|
| 5.000% due 11/01/2026 |
|
|
|
|
1,000 |
|
|
|
|
|
1,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOUISIANA 0.9% |
|
| East Baton Rouge Sewerage Commission, Louisiana Revenue Bonds, Series 2009 |
|
| 5.250% due 02/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
1,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 184.6% |
|
| Build NYC Resource Corp., New York Revenue Bonds, Series 2017 |
|
| 5.000% due 11/01/2047 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,509 |
|
| Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2015 |
|
| 5.000% due 07/01/2045 |
|
|
|
|
3,000 |
|
|
|
|
|
3,326 |
|
| Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 07/01/2041 |
|
|
|
|
3,200 |
|
|
|
|
|
3,233 |
|
| Housing Development Corp., New York Revenue Bonds, Series 2017 |
|
| 4.000% due 11/01/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
995 |
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds, Series 2011 |
|
| 5.750% due 02/15/2047 |
|
|
|
|
9,000 |
|
|
|
|
|
9,864 |
|
| Long Island Power Authority, New York Revenue Bonds, Series 2014 |
|
| 5.000% due 09/01/2044 |
|
|
|
|
3,500 |
|
|
|
|
|
3,883 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2009 |
|
| 5.000% due 11/15/2034 |
|
|
|
|
2,000 |
|
|
|
|
|
2,094 |
|
| 5.500% due 11/15/2039 |
|
|
|
|
5,000 |
|
|
|
|
|
5,077 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2013 |
|
| 5.000% due 11/15/2043 |
|
|
|
|
3,000 |
|
|
|
|
|
3,271 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2016 |
|
| 5.000% due 11/15/2031 (c) |
|
|
|
|
1,895 |
|
|
|
|
|
2,186 |
|
| Monroe County Industrial Development Corp., New York Revenue Bonds, (FHA Insured),
Series 2010 |
|
| 5.500% due 08/15/2040 |
|
|
|
|
3,500 |
|
|
|
|
|
3,804 |
|
| Monroe County Industrial Development Corp., New York Revenue Bonds, Series
2013 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
1,750 |
|
|
|
|
|
2,004 |
|
| Monroe County Industrial Development Corp., New York Revenue Bonds, Series
2017 |
|
| 4.000% due 07/01/2036 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,056 |
|
| 4.000% due 12/01/2041 |
|
|
|
|
1,400 |
|
|
|
|
|
1,413 |
|
| 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 |
|
|
|
|
|
1,915 |
|
| Nassau County, New York Tobacco Settlement Corp. Revenue Bonds, Series 2006 |
|
| 5.125% due 06/01/2046 |
|
|
|
|
4,000 |
|
|
|
|
|
3,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| New York City Health & Hospital Corp., New York Revenue Bonds, Series
2010 |
|
| 5.000% due 02/15/2030 |
|
$ |
|
|
1,500 |
|
|
$ |
|
|
1,570 |
|
| New York City Industrial Development Agency, New York Revenue Bonds, (AGC Insured), Series
2009 |
|
| 6.500% due 01/01/2046 |
|
|
|
|
1,500 |
|
|
|
|
|
1,535 |
|
| 7.000% due 03/01/2049 |
|
|
|
|
4,900 |
|
|
|
|
|
5,071 |
|
| New York City Industrial Development Agency, New York Revenue Bonds, (FGIC Insured), Series
2006 |
|
| 5.000% due 03/01/2031 |
|
|
|
|
750 |
|
|
|
|
|
755 |
|
| New York City Industrial Development Agency, New York Revenue Bonds, (NPFGC Insured), Series
2006 |
|
| 5.000% due 03/01/2036 |
|
|
|
|
1,900 |
|
|
|
|
|
1,903 |
|
| New York City Transitional Finance Authority Building Aid, New York Revenue Bonds, Series
2009 |
|
| 5.250% due 01/15/2039 |
|
|
|
|
5,000 |
|
|
|
|
|
5,092 |
|
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series
2012 |
|
| 5.000% due 05/01/2039 |
|
|
|
|
2,000 |
|
|
|
|
|
2,184 |
|
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series
2017 |
|
| 4.000% due 08/01/2042 (c) |
|
|
|
|
3,000 |
|
|
|
|
|
3,128 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series 2009 |
|
| 5.000% due 06/15/2039 |
|
|
|
|
500 |
|
|
|
|
|
515 |
|
| 5.250% due 06/15/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,033 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2012 |
|
| 4.000% due 06/15/2047 (c) |
|
|
|
|
4,500 |
|
|
|
|
|
4,599 |
|
| New York City, New York General Obligation Bonds, Series 2013 |
|
| 5.000% due 08/01/2031 |
|
|
|
|
2,000 |
|
|
|
|
|
2,246 |
|
| New York City, New York General Obligation Bonds, Series 2018 |
|
| 4.000% due 03/01/2042 (c) |
|
|
|
|
5,000 |
|
|
|
|
|
5,191 |
|
| 5.000% due 04/01/2045 (c) |
|
|
|
|
3,600 |
|
|
|
|
|
4,161 |
|
| New York City, New York Transitional Finance Authority Future Tax Secured Revenue Bonds,
Series 2017 |
|
| 4.000% due 02/01/2044 |
|
|
|
|
2,000 |
|
|
|
|
|
2,074 |
|
| New York Convention Center Development Corp. Revenue Bonds, Series 2015 |
|
| 4.000% due 11/15/2045 |
|
|
|
|
230 |
|
|
|
|
|
237 |
|
| 5.000% due 11/15/2045 |
|
|
|
|
1,000 |
|
|
|
|
|
1,121 |
|
| New York Counties Tobacco Trust IV Revenue Bonds, Series 2005 |
|
| 0.000% due 06/01/2050 (b) |
|
|
|
|
30,000 |
|
|
|
|
|
4,222 |
|
| 5.000% due 06/01/2045 |
|
|
|
|
5,000 |
|
|
|
|
|
5,000 |
|
| New York Counties Tobacco Trust IV Revenue Bonds, Series 2016 |
|
| 5.000% due 06/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,099 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,089 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2005 |
|
| 5.250% due 10/01/2035 (c) |
|
|
|
|
6,350 |
|
|
|
|
|
7,901 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2010 |
|
| 5.125% due 01/15/2044 |
|
|
|
|
1,500 |
|
|
|
|
|
1,567 |
|
| 5.625% due 07/15/2047 |
|
|
|
|
1,400 |
|
|
|
|
|
1,481 |
|
| 6.375% due 07/15/2049 |
|
|
|
|
1,300 |
|
|
|
|
|
1,373 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2011 |
|
| 5.000% due 12/15/2041 |
|
|
|
|
3,000 |
|
|
|
|
|
3,249 |
|
| 5.750% due 11/15/2051 |
|
|
|
|
5,000 |
|
|
|
|
|
5,575 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
4,000 |
|
|
|
|
|
4,248 |
|
| New York State Dormitory Authority Revenue Bonds, (AMBAC Insured), Series
2005 |
|
| 5.500% due 05/15/2031 |
|
|
|
|
7,490 |
|
|
|
|
|
9,467 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2008 |
|
| 5.000% due 07/01/2036 |
|
|
|
|
2,000 |
|
|
|
|
|
2,000 |
|
| 5.000% due 07/01/2038 |
|
|
|
|
2,100 |
|
|
|
|
|
2,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| New York State Dormitory Authority Revenue Bonds, Series 2009 |
|
| 5.000% due 03/15/2038 |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,075 |
|
| 5.500% due 05/01/2037 |
|
|
|
|
600 |
|
|
|
|
|
620 |
|
| 5.500% due 03/01/2039 |
|
|
|
|
3,000 |
|
|
|
|
|
3,078 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
1,000 |
|
|
|
|
|
1,073 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2011 |
|
| 5.000% due 07/01/2031 |
|
|
|
|
2,000 |
|
|
|
|
|
2,163 |
|
| 5.500% due 07/01/2036 |
|
|
|
|
1,500 |
|
|
|
|
|
1,664 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 (c) |
|
|
|
|
1,500 |
|
|
|
|
|
1,565 |
|
| 4.000% due 07/01/2047 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,074 |
|
| 5.000% due 12/01/2030 |
|
|
|
|
1,000 |
|
|
|
|
|
1,126 |
|
| 5.000% due 12/01/2033 |
|
|
|
|
800 |
|
|
|
|
|
894 |
|
| New York State Environmental Facilities Corp. Revenue Bonds, Series 2009 |
|
| 5.125% due 06/15/2038 |
|
|
|
|
5,000 |
|
|
|
|
|
5,154 |
|
| New York State Thruway Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 01/01/2042 |
|
|
|
|
3,800 |
|
|
|
|
|
4,116 |
|
| New York State Thruway Authority Revenue Bonds, Series 2018 |
|
| 4.000% due 01/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,054 |
|
| New York State Urban Development Corp. Revenue Bonds, Series 2009 |
|
| 5.000% due 03/15/2036 (c) |
|
|
|
|
6,000 |
|
|
|
|
|
6,151 |
|
| Niagara Tobacco Asset Securitization Corp., New York Revenue Bonds, Series
2014 |
|
| 5.250% due 05/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
541 |
|
| 5.250% due 05/15/2040 |
|
|
|
|
500 |
|
|
|
|
|
537 |
|
| Onondaga County, New York Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,088 |
|
| Port Authority of New York & New Jersey Revenue Bonds, Series 2010 |
|
| 6.000% due 12/01/2036 |
|
|
|
|
1,400 |
|
|
|
|
|
1,535 |
|
| Port Authority of New York & New Jersey Revenue Bonds, Series 2016 |
|
| 5.250% due 11/15/2056 (c) |
|
|
|
|
6,000 |
|
|
|
|
|
6,939 |
|
| Tender Option Bond Trust Receipts/Certificates, New York Revenue Bonds, Series
2009 |
|
| 7.920% due 07/01/2039 (d) |
|
|
|
|
5,000 |
|
|
|
|
|
5,321 |
|
| Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series
2009 |
|
| 5.250% due 11/15/2018 (c) |
|
|
|
|
1,898 |
|
|
|
|
|
1,925 |
|
| 5.250% due 11/15/2034 (c) |
|
|
|
|
3,103 |
|
|
|
|
|
3,147 |
|
| Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series
2017 |
|
| 5.000% due 11/15/2038 (c) |
|
|
|
|
4,500 |
|
|
|
|
|
5,192 |
|
| Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series
2018 |
|
| 4.000% due 11/15/2048 |
|
|
|
|
1,600 |
|
|
|
|
|
1,666 |
|
| Troy Capital Resource Corp., New York Revenue Bonds, Series 2010 |
|
| 5.125% due 09/01/2040 |
|
|
|
|
3,435 |
|
|
|
|
|
3,612 |
|
| TSASC, Inc., New York Revenue Bonds, Series 2017 |
|
| 5.000% due 06/01/2035 |
|
|
|
|
3,000 |
|
|
|
|
|
3,308 |
|
| Ulster County, New York Capital Resource Corp. Revenue Bonds, Series 2017 |
|
| 5.250% due 09/15/2047 |
|
|
|
|
1,000 |
|
|
|
|
|
1,002 |
|
| Utility Debt Securitization Authority Revenue Bonds, Series 2015 |
|
| 5.000% due 12/15/2037 (c) |
|
|
|
|
4,000 |
|
|
|
|
|
4,574 |
|
| Westchester County Healthcare Corp., New York Revenue Bonds, Series 2010 |
|
| 6.125% due 11/01/2037 |
|
|
|
|
1,490 |
|
|
|
|
|
1,635 |
|
| Westchester County, New York Local Development Corp. Revenue Bonds, Series
2014 |
|
| 5.500% due 05/01/2042 |
|
|
|
|
1,000 |
|
|
|
|
|
1,108 |
|
| Yonkers Economic Development Corp., New York Revenue Bonds, Series 2010 |
|
| 6.000% due 10/15/2030 |
|
|
|
|
915 |
|
|
|
|
|
951 |
|
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
59 |
Schedule of Investments PIMCO New York
Municipal Income Fund II (Cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Yonkers Industrial Development Agency, New York Revenue Bonds, Series 2001 |
|
| 6.000% due 06/01/2041 |
|
$ |
|
|
600 |
|
|
$ |
|
|
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
222,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 1.2% |
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series
2007 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
1,435 |
|
|
|
|
|
1,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 0.9% |
|
| Puerto Rico Highway & Transportation Authority Revenue Bonds, (AGC Insured), Series
2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
1,000 |
|
|
|
|
|
1,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. VIRGIN ISLANDS 0.8% |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2009 |
|
| 6.000% due 10/01/2039 |
|
|
|
|
1,000 |
|
|
|
|
|
827 |
|
| Virgin Islands Public Finance Authority, U.S. Virgin Islands Revenue Bonds, Series
2010 |
|
| 5.250% due 10/01/2029 |
|
|
|
|
200 |
|
|
|
|
|
171 |
|
|
|
|
|
|
|
|
|
|
|
|
998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $220,857) |
|
|
|
|
|
233,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
MARKET
VALUE
(000S) |
|
| SHORT-TERM INSTRUMENTS 2.3% |
|
|
|
|
|
|
|
|
|
| REPURCHASE AGREEMENTS (e) 2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
2,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Short-Term Instruments (Cost $2,776) |
|
|
|
|
|
|
|
|
|
|
2,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments in Securities (Cost $223,633) |
|
|
|
|
|
|
|
|
|
|
236,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments 196.3% (Cost $223,633) |
|
|
|
|
|
|
|
$ |
|
|
236,057 |
|
|
|
| Preferred Shares (65.7) |
|
|
|
|
|
|
|
|
|
|
(79,000 |
) |
|
|
| Other Assets and Liabilities, net (30.6)% |
|
|
(36,818 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
$ |
|
|
120,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 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 |
|
|
1.500 |
% |
|
|
06/29/2018 |
|
|
|
07/02/2018 |
|
|
$ |
2,776 |
|
|
U.S. Treasury Notes 2.750% due 11/15/2023 |
|
$ |
(2,834 |
) |
|
$ |
2,776 |
|
|
$ |
2,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
$ |
(2,834 |
) |
|
$ |
2,776 |
|
|
$ |
2,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BORROWINGS AND OTHER
FINANCING TRANSACTIONS SUMMARY
The following is
a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 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 |
|
$ |
2,776 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
2,776 |
|
|
$ |
(2,834 |
) |
|
$ |
(58 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
2,776 |
|
|
$ |
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. |
|
|
|
|
|
|
|
|
|
| 60 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2018 in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| California |
|
$ |
0 |
|
|
$ |
2,281 |
|
|
$ |
0 |
|
|
$ |
2,281 |
|
| Florida |
|
|
0 |
|
|
|
1,051 |
|
|
|
0 |
|
|
|
1,051 |
|
| Illinois |
|
|
0 |
|
|
|
3,322 |
|
|
|
0 |
|
|
|
3,322 |
|
| Louisiana |
|
|
0 |
|
|
|
1,022 |
|
|
|
0 |
|
|
|
1,022 |
|
| New York |
|
|
0 |
|
|
|
222,019 |
|
|
|
0 |
|
|
|
222,019 |
|
| Ohio |
|
|
0 |
|
|
|
1,472 |
|
|
|
0 |
|
|
|
1,472 |
|
| Puerto Rico |
|
|
0 |
|
|
|
1,116 |
|
|
|
0 |
|
|
|
1,116 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
998 |
|
|
|
0 |
|
|
|
998 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
2,776 |
|
|
|
0 |
|
|
|
2,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
236,057 |
|
|
$ |
0 |
|
|
$ |
236,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant
transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
61 |
Schedule of Investments PIMCO New York Municipal Income Fund III
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| INVESTMENTS IN SECURITIES 200.7% |
|
|
|
| MUNICIPAL BONDS & NOTES 197.9% |
|
|
|
| CALIFORNIA 2.2% |
|
| California Health Facilities Financing Authority Revenue Bonds, Series 2016 |
|
| 5.000% due 11/15/2046 (c) |
|
$ |
|
|
1,000 |
|
|
$ |
|
|
1,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ILLINOIS 4.0% |
|
| Chicago, Illinois General Obligation Bonds, Series 2015 |
|
| 5.250% due 01/01/2028 |
|
|
|
|
1,900 |
|
|
|
|
|
2,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NEW YORK 185.9% |
|
| Brooklyn Arena Local Development Corp., New York Revenue Bonds, Series 2009 |
|
| 6.375% due 07/15/2043 |
|
|
|
|
1,000 |
|
|
|
|
|
1,073 |
|
| Build NYC Resource Corp., New York Revenue Bonds, Series 2017 |
|
| 5.000% due 11/01/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,254 |
|
| Dutchess County, New York Local Development Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 07/01/2041 |
|
|
|
|
500 |
|
|
|
|
|
505 |
|
| Housing Development Corp., New York Revenue Bonds, Series 2017 |
|
| 3.700% due 11/01/2047 (c) |
|
|
|
|
500 |
|
|
|
|
|
497 |
|
| Hudson Yards Infrastructure Corp., New York Revenue Bonds, Series 2011 |
|
| 5.750% due 02/15/2047 |
|
|
|
|
4,000 |
|
|
|
|
|
4,384 |
|
| Long Island Power Authority, New York Revenue Bonds, Series 2009 |
|
| 5.750% due 04/01/2039 |
|
|
|
|
1,500 |
|
|
|
|
|
1,548 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2009 |
|
| 5.000% due 11/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
524 |
|
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2013 |
|
| 5.000% due 11/15/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,181 |
|
| 5.000% due 11/15/2043 |
|
|
|
|
4,000 |
|
|
|
|
|
4,361 |
|
| Monroe County Industrial Development Corp., New York Revenue Bonds, (FHA Insured),
Series 2010 |
|
| 5.500% due 08/15/2040 |
|
|
|
|
1,500 |
|
|
|
|
|
1,630 |
|
| Monroe County Industrial Development Corp., New York Revenue Bonds, Series
2013 |
|
| 5.000% due 07/01/2043 |
|
|
|
|
1,750 |
|
|
|
|
|
2,004 |
|
| Monroe County, New York Industrial Development Agency Revenue Bonds, Series
2017 |
|
| 4.000% due 07/01/2043 (c) |
|
|
|
|
500 |
|
|
|
|
|
523 |
|
| Nassau County, New York Industrial Development Agency Revenue Bonds, Series
2014 |
|
| 2.000% due 01/01/2049 ^(a) |
|
|
|
|
135 |
|
|
|
|
|
23 |
|
| 6.700% due 01/01/2049 |
|
|
|
|
375 |
|
|
|
|
|
399 |
|
| New York City Industrial Development Agency, New York Revenue Bonds, (AGC Insured),
Series 2009 |
|
| 6.500% due 01/01/2046 |
|
|
|
|
600 |
|
|
|
|
|
614 |
|
| 7.000% due 03/01/2049 |
|
|
|
|
2,200 |
|
|
|
|
|
2,277 |
|
| New York City Transitional Finance Authority Future Tax Secured Revenue, New York Revenue Bonds,
Series 2018 |
|
| 4.000% due 05/01/2043 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,084 |
|
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series
2013 |
|
| 5.000% due 11/01/2042 |
|
|
|
|
2,000 |
|
|
|
|
|
2,241 |
|
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series
2017 |
|
| 4.000% due 08/01/2042 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,085 |
|
| New York City Trust for Cultural Resources, New York Revenue Bonds, Series
2014 |
|
| 5.000% due 08/01/2043 |
|
|
|
|
2,000 |
|
|
|
|
|
2,209 |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2009 |
|
| 5.000% due 06/15/2039 |
|
|
|
|
1,500 |
|
|
|
|
|
1,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| New York City Water & Sewer System, New York Revenue Bonds, Series
2012 |
|
| 4.000% due 06/15/2047 (c) |
|
$ |
|
|
3,000 |
|
|
$ |
|
|
3,066 |
|
| 5.000% due 06/15/2047 |
|
|
|
|
2,500 |
|
|
|
|
|
2,730 |
|
| New York City, New York General Obligation Bonds, Series 2013 |
|
| 5.000% due 08/01/2031 |
|
|
|
|
2,590 |
|
|
|
|
|
2,909 |
|
| New York City, New York General Obligation Bonds, Series 2018 |
|
| 4.000% due 03/01/2042 (c) |
|
|
|
|
1,800 |
|
|
|
|
|
1,869 |
|
| 5.000% due 04/01/2045 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,312 |
|
| New York Convention Center Development Corp. Revenue Bonds, Series 2015 |
|
| 5.000% due 11/15/2045 |
|
|
|
|
500 |
|
|
|
|
|
561 |
|
| New York Counties Tobacco Trust IV Revenue Bonds, Series 2005 |
|
| 0.000% due 06/01/2050 (b) |
|
|
|
|
10,000 |
|
|
|
|
|
1,407 |
|
| 5.000% due 06/01/2042 |
|
|
|
|
3,200 |
|
|
|
|
|
3,200 |
|
| New York Counties Tobacco Trust Revenue Bonds, Series 2001 |
|
| 5.750% due 06/01/2043 |
|
|
|
|
335 |
|
|
|
|
|
340 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2007 |
|
| 5.500% due 10/01/2037 |
|
|
|
|
2,400 |
|
|
|
|
|
3,103 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2010 |
|
| 5.125% due 01/15/2044 |
|
|
|
|
2,000 |
|
|
|
|
|
2,090 |
|
| 6.375% due 07/15/2049 |
|
|
|
|
1,050 |
|
|
|
|
|
1,109 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2011 |
|
| 5.750% due 11/15/2051 |
|
|
|
|
4,000 |
|
|
|
|
|
4,460 |
|
| New York Liberty Development Corp. Revenue Bonds, Series 2014 |
|
| 5.000% due 11/15/2044 |
|
|
|
|
1,750 |
|
|
|
|
|
1,858 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2009 |
|
| 5.000% due 03/15/2038 |
|
|
|
|
1,000 |
|
|
|
|
|
1,025 |
|
| 5.500% due 03/01/2039 |
|
|
|
|
1,200 |
|
|
|
|
|
1,231 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2010 |
|
| 5.500% due 07/01/2040 |
|
|
|
|
500 |
|
|
|
|
|
537 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2011 |
|
| 6.000% due 07/01/2040 |
|
|
|
|
250 |
|
|
|
|
|
271 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2013 |
|
| 5.000% due 02/15/2029 |
|
|
|
|
750 |
|
|
|
|
|
835 |
|
| New York State Dormitory Authority Revenue Bonds, Series 2017 |
|
| 4.000% due 02/15/2047 |
|
|
|
|
500 |
|
|
|
|
|
522 |
|
| 4.000% due 07/01/2047 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,037 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
1,000 |
|
|
|
|
|
1,108 |
|
| New York State Environmental Facilities Corp. Revenue Bonds, Series 2016 |
|
| 4.000% due 08/15/2046 |
|
|
|
|
1,000 |
|
|
|
|
|
1,044 |
|
| New York State Thruway Authority Revenue Bonds, Series 2012 |
|
| 5.000% due 01/01/2042 |
|
|
|
|
1,600 |
|
|
|
|
|
1,733 |
|
| New York State Urban Development Corp. Revenue Bonds, Series 2009 |
|
| 5.000% due 03/15/2036 (c) |
|
|
|
|
2,200 |
|
|
|
|
|
2,255 |
|
| New York State Urban Development Corp. Revenue Bonds, Series 2017 |
|
| 4.000% due 03/15/2046 (c) |
|
|
|
|
3,000 |
|
|
|
|
|
3,110 |
|
| Niagara Tobacco Asset Securitization Corp., New York Revenue Bonds, Series
2014 |
|
| 5.250% due 05/15/2034 |
|
|
|
|
500 |
|
|
|
|
|
541 |
|
| 5.250% due 05/15/2040 |
|
|
|
|
500 |
|
|
|
|
|
537 |
|
| Onondaga County, New York Revenue Bonds, Series 2011 |
|
| 5.000% due 12/01/2036 |
|
|
|
|
400 |
|
|
|
|
|
435 |
|
| Port Authority of New York & New Jersey Revenue Bonds, Series 2010 |
|
| 6.000% due 12/01/2036 |
|
|
|
|
600 |
|
|
|
|
|
658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PRINCIPAL
AMOUNT
(000S) |
|
|
|
|
MARKET
VALUE
(000S) |
|
| Port Authority of New York & New Jersey Revenue Bonds, Series 2016 |
|
| 5.250% due 11/15/2056 (c) |
|
$ |
|
|
2,500 |
|
|
$ |
|
|
2,891 |
|
| Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series
2009 |
|
| 5.250% due 11/15/2018 (c) |
|
|
|
|
759 |
|
|
|
|
|
770 |
|
| 5.250% due 11/15/2034 (c) |
|
|
|
|
1,241 |
|
|
|
|
|
1,259 |
|
| Triborough Bridge & Tunnel Authority, New York Revenue Bonds, Series
2017 |
|
| 5.000% due 11/15/2038 (c) |
|
|
|
|
2,000 |
|
|
|
|
|
2,308 |
|
| Troy Capital Resource Corp., New York Revenue Bonds, Series 2010 |
|
| 5.125% due 09/01/2040 |
|
|
|
|
1,400 |
|
|
|
|
|
1,472 |
|
| TSASC, Inc., New York Revenue Bonds, Series 2017 |
|
| 5.000% due 06/01/2041 |
|
|
|
|
2,000 |
|
|
|
|
|
2,169 |
|
| Ulster County, New York Capital Resource Corp. Revenue Bonds, Series 2017 |
|
| 5.250% due 09/15/2047 |
|
|
|
|
500 |
|
|
|
|
|
501 |
|
| Utility Debt Securitization Authority Revenue Bonds, Series 2015 |
|
| 5.000% due 12/15/2037 (c) |
|
|
|
|
1,000 |
|
|
|
|
|
1,143 |
|
| Westchester County Healthcare Corp., New York Revenue Bonds, Series 2010 |
|
| 6.125% due 11/01/2037 |
|
|
|
|
600 |
|
|
|
|
|
658 |
|
| Yonkers Economic Development Corp., New York Revenue Bonds, Series 2010 |
|
| 6.000% due 10/15/2030 |
|
|
|
|
90 |
|
|
|
|
|
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OHIO 3.9% |
|
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series
2007 |
|
| 6.500% due 06/01/2047 |
|
|
|
|
1,950 |
|
|
|
|
|
2,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PUERTO RICO 0.9% |
|
| Puerto Rico Highway & Transportation Authority Revenue Bonds, (AGC Insured), Series
2005 |
|
| 5.250% due 07/01/2041 |
|
|
|
|
400 |
|
|
|
|
|
446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
100 |
|
|
|
|
|
98 |
|
| 6.000% due 10/01/2039 |
|
|
|
|
500 |
|
|
|
|
|
413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds & Notes
(Cost $95,952) |
|
|
|
|
|
101,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHORT-TERM INSTRUMENTS 2.8% |
|
|
|
| REPURCHASE AGREEMENTS (d) 2.8% |
|
|
|
|
|
|
|
|
|
|
|
|
1,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Instruments
(Cost $1,419) |
|
|
|
|
|
|
|
|
|
|
1,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
(Cost $97,371) |
|
|
|
|
|
|
|
|
|
|
102,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 200.7%
(Cost $97,371) |
|
|
|
|
|
|
|
$ |
|
|
102,678 |
|
|
|
| Preferred Shares (62.5)% |
|
|
|
|
|
|
|
|
|
|
(32,000 |
) |
|
|
| Other Assets and Liabilities, net (38.2)% |
|
|
|
|
|
(19,523 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders 100.0% |
|
|
|
|
|
|
|
$ |
|
|
51,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 62 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
See Accompanying Notes |
|
June 30, 2018
(Unaudited)
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 |
|
|
1.500 |
% |
|
|
06/29/2018 |
|
|
|
07/02/2018 |
|
|
$ |
1,419 |
|
|
U.S. Treasury Notes 2.750% due 11/15/2023 |
|
$ |
(1,450 |
) |
|
$ |
1,419 |
|
|
$ |
1,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Repurchase Agreements |
|
$ |
(1,450 |
) |
|
$ |
1,419 |
|
|
$ |
1,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BORROWINGS AND OTHER
FINANCING TRANSACTIONS SUMMARY
The following is
a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 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 |
|
$ |
1,419 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
1,419 |
|
|
$ |
(1,450 |
) |
|
$ |
(31 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Borrowings and Other Financing Transactions |
|
$ |
1,419 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Includes accrued interest. |
| (3) |
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 June 30, 2018 in valuing the Fund’s assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Category and Subcategory |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fair
Value at
06/30/2018 |
|
| Investments in Securities, at Value |
|
| Municipal Bonds & Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| California |
|
$ |
0 |
|
|
$ |
1,141 |
|
|
$ |
0 |
|
|
$ |
1,141 |
|
| Illinois |
|
|
0 |
|
|
|
2,043 |
|
|
|
0 |
|
|
|
2,043 |
|
| New York |
|
|
0 |
|
|
|
95,118 |
|
|
|
0 |
|
|
|
95,118 |
|
| Ohio |
|
|
0 |
|
|
|
2,000 |
|
|
|
0 |
|
|
|
2,000 |
|
| Puerto Rico |
|
|
0 |
|
|
|
446 |
|
|
|
0 |
|
|
|
446 |
|
| U.S. Virgin Islands |
|
|
0 |
|
|
|
511 |
|
|
|
0 |
|
|
|
511 |
|
| Short-Term Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchase Agreements |
|
|
0 |
|
|
|
1,419 |
|
|
|
0 |
|
|
|
1,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investments |
|
$ |
0 |
|
|
$ |
102,678 |
|
|
$ |
0 |
|
|
$ |
102,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no significant
transfers among Levels 1, 2, or 3 during the period ended June 30, 2018.
|
|
|
|
|
|
|
| See Accompanying Notes |
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
63 |
Notes to Financial Statements
1. ORGANIZATION
PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO California Municipal Income Fund, PIMCO
California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II and PIMCO New York Municipal Income Fund III (each a “Fund” and collectively,
the “Funds”) are organized as closed-end management investment companies registered under the Investment Company Act of 1940, as amended, and the rules and regulations thereunder (the “Act”). Each Fund was organized as a
Massachusetts business trust on the dates shown in the table below. Pacific Investment Management Company LLC (“PIMCO” or the “Manager”) serves as the Funds’ investment manager.
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Formation
Date |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
|
May 9, 2001 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
March 29, 2002 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
August 20, 2002 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
May 10, 2001 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
March 29, 2002 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
August 20, 2002 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
May 10, 2001 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
March 29, 2002 |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
August 20, 2002 |
|
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Each Fund is treated as an investment company
under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Funds is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
(a) Securities Transactions and Investment Income Securities transactions are recorded as of the trade date for financial reporting purposes. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Distribution Frequency |
|
| Fund Name |
|
|
|
|
Declared |
|
|
Distributed |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
|
Monthly |
|
|
|
Monthly |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
Monthly |
|
|
|
Monthly |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
Monthly |
|
|
|
Monthly |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
Monthly |
|
|
|
Monthly |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
Monthly |
|
|
|
Monthly |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
Monthly |
|
|
|
Monthly |
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| PIMCO New York Municipal Income Fund |
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Monthly |
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|
Monthly |
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| PIMCO New York Municipal Income Fund II |
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Monthly |
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|
Monthly |
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| PIMCO New York Municipal Income Fund III |
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Monthly |
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Monthly |
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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 during a fiscal period may differ significantly from the net investment
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| 64 |
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PIMCO CLOSED-END FUNDS |
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June 30, 2018
(Unaudited)
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. In addition, other amounts have been reclassified between undistributed (overdistributed) net investment income (loss), accumulated undistributed (overdistributed) net realized gain (loss) and/or paid in capital 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 Statement 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 October 2016, the U.S. Securities and
Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X require
standardized, enhanced disclosure about derivatives in investment company financial statements, and also change the rules governing the form and content of such financial statements. The compliance date for these amendments was August 1, 2017.
Compliance is based on reporting period-end date. Management has adopted these amendments and the changes are incorporated in the 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 Statement 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.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The 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 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
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JUNE 30, 2018 |
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Notes to Financial Statements (Cont.)
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 Valuation Oversight Committee of the Board (“Valuation Oversight Committee”), generally based on recommendations provided by the
Manager. 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, the Funds 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:
| ∎
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Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities. |
| ∎
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|
Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or
liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. |
| ∎
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Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable
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| 66 |
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PIMCO CLOSED-END FUNDS |
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June 30, 2018
(Unaudited)
| |
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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 between Levels 1 and 2 and 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
(a) 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 June 30, 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 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
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SEMIANNUAL REPORT |
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JUNE 30, 2018 |
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67 |
Notes to Financial Statements (Cont.)
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 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.
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| 68 |
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PIMCO CLOSED-END FUNDS |
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June 30, 2018
(Unaudited)
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. In particular, these rules preclude 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 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 increase the costs of such transactions in certain circumstances.
In response to these rules, industry participants
explored various structuring alternatives for TOB Trusts established after December 31, 2013 and TOB Trusts established prior to December 31, 2013 (“Legacy TOB Trusts”) and agreed on a new tender option bond structure in which
the Funds hire service providers to assist with establishing, structuring and sponsoring a TOB Trust. Service providers to a TOB Trust, such as administrators, liquidity providers, trustees and remarketing agents act at the direction of, and as
agent of, the Funds as the TOB residual holders.
The
Funds have restructured their Legacy TOB Trusts in conformity with regulatory guidelines. Under the new TOB Trust structure, the Liquidity Provider or remarketing agent will no longer purchase the tendered TOB Floaters, even in the event of failed
remarketing. This may increase the likelihood that a TOB Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. The TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB
Floaters. Any loans made by the Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust and will be subject to an interest rate agreed upon with the liquidity provider.
For the period ended June 30, 2018, the Funds’ average
leverage outstanding from the use of TOB transactions and the daily weighted average interest rate, including fees, were as follows:
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| Fund Name |
|
|
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Average
Leverage
Outstanding
(000s) |
|
|
Weighted
Average
Interest
Rate* |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
60,138 |
|
|
|
2.24% |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
189,901 |
|
|
|
2.74% |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
82,754 |
|
|
|
2.67% |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
95,792 |
|
|
|
2.18% |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
51,350 |
|
|
|
2.24% |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
80,435 |
|
|
|
2.17% |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
23,062 |
|
|
|
1.76% |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
32,786 |
|
|
|
2.15% |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
13,987 |
|
|
|
2.31% |
|
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.
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SEMIANNUAL REPORT |
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JUNE 30, 2018 |
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69 |
Notes to Financial Statements (Cont.)
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.). Under current economic conditions, interest rates are near historically low levels. 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. 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. Over the counter (“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
|
|
|
|
|
|
|
|
|
| 70 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
June 30, 2018
(Unaudited)
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 forms of AAA rated paper or sovereign securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash
pledged as collateral are reflected as assets on the Statements of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated
account and as such is reflected as a liability on the Statements of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. A Fund’s overall
exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.
Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”)
govern repurchase, reverse repurchase, and 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
|
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|
|
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|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
71 |
Notes to Financial Statements (Cont.)
most other supervisory and administrative services the Funds require, including but not limited to, expenses of most third-party service providers (e.g., audit, custodial, legal, transfer agency,
printing) and other expenses, such as those associated with insurance, proxy solicitations and mailings for shareholder meetings, NYSE listing and related fees, tax services, valuation services and other services the Funds require for their daily
operations.
Pursuant to the Agreement, PIMCO
receives an annual fee, payable monthly, at the annual rates shown in the table below:
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Annual
Rate(1) |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
|
0.705% |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
0.685% |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
0.705% |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
0.705% |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
0.705% |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
0.715% |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
0.770% |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
0.735% |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
0.860% |
|
| (1) |
Management fees calculated based on the Fund’s average daily NAV (including daily net assets attributable to any preferred shares of
the Fund that may be outstanding). |
(b) Fund Expenses Each Fund bears other expenses, which may vary and affect the total level of expenses paid by shareholders, such
as (i) salaries and other compensation or expenses, including travel expenses of any of the Fund’s executive officers and employees, if any, who are not officers, directors, shareholders, members, partners or employees of PIMCO or its
subsidiaries or affiliates; (ii) taxes and governmental fees, if any, levied against the Fund; (iii) brokerage fees and commissions and other portfolio transaction expenses incurred by or for the Fund (including, without limitation, fees
and expenses of outside legal counsel or third-party consultants retained in connection with reviewing, negotiating and structuring specialized loan and other investments made by the Fund, subject to specific or general authorization by the
Fund’s Board); (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”) 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 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 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.
Each Independent Trustee currently receives annual compensation of $225,000 for his or her service on the Boards of the PIMCO-Managed Funds,
payable quarterly. The Independent Chairman 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.
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
|
|
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| 72 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
June 30, 2018
(Unaudited)
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.
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. During the period ended June 30, 2018, the Funds below engaged in purchases and sales of securities pursuant to Rule 17a-7 under
the Act (amounts in
thousands†):
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Purchases |
|
|
Sales |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
0 |
|
|
$ |
3,177 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
10,214 |
|
|
|
6,355 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
10,214 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
1,334 |
|
|
|
2,630 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
2,002 |
|
|
|
1,956 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
1,250 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
0 |
|
|
|
2,286 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
1,600 |
|
|
|
1,773 |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
686 |
|
|
|
0 |
|
| † |
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 Fund’s performance. The portfolio turnover rates are reported in the Financial Highlights.
Purchases and sales of securities (excluding short-term investments) for the period ended June 30, 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 |
|
|
$ |
127,191 |
|
|
$ |
70,841 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
341,219 |
|
|
|
154,657 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
157,983 |
|
|
|
91,170 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
72,176 |
|
|
|
43,765 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
72,209 |
|
|
|
46,288 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
47,378 |
|
|
|
24,823 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
25,240 |
|
|
|
15,127 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
30,583 |
|
|
|
19,138 |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
19,339 |
|
|
|
11,039 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand. |
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
73 |
Notes to Financial Statements (Cont.)
12.
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 June 30, 2018, the annualized dividend
rates on the ARPS ranged from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund Name |
|
|
|
|
Shares
Issued and
Outstanding |
|
|
High |
|
|
Low |
|
|
As of
June 30, 2018 |
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,520 |
|
|
|
2.860% |
|
|
|
1.641% |
|
|
|
2.342% |
|
| Series B |
|
|
|
|
|
|
1,520 |
|
|
|
2.860% |
|
|
|
1.630% |
|
|
|
2.342% |
|
| Series C |
|
|
|
|
|
|
1,520 |
|
|
|
2.869% |
|
|
|
1.663% |
|
|
|
2.357% |
|
| Series D |
|
|
|
|
|
|
1,520 |
|
|
|
2.860% |
|
|
|
1.586% |
|
|
|
2.357% |
|
| Series E |
|
|
|
|
|
|
1,520 |
|
|
|
2.828% |
|
|
|
1.641% |
|
|
|
2.388% |
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
2,936 |
|
|
|
2.860% |
|
|
|
1.641% |
|
|
|
2.342% |
|
| Series B |
|
|
|
|
|
|
2,936 |
|
|
|
2.860% |
|
|
|
1.630% |
|
|
|
2.342% |
|
| Series C |
|
|
|
|
|
|
2,936 |
|
|
|
2.869% |
|
|
|
1.663% |
|
|
|
2.357% |
|
| Series D |
|
|
|
|
|
|
2,936 |
|
|
|
2.860% |
|
|
|
1.586% |
|
|
|
2.357% |
|
| Series E |
|
|
|
|
|
|
2,936 |
|
|
|
2.828% |
|
|
|
1.641% |
|
|
|
2.388% |
|
|
|
|
|
|
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,512 |
|
|
|
2.860% |
|
|
|
1.641% |
|
|
|
2.342% |
|
| Series B |
|
|
|
|
|
|
1,512 |
|
|
|
2.860% |
|
|
|
1.630% |
|
|
|
2.342% |
|
| Series C |
|
|
|
|
|
|
1,512 |
|
|
|
2.869% |
|
|
|
1.663% |
|
|
|
2.357% |
|
| Series D |
|
|
|
|
|
|
1,512 |
|
|
|
2.860% |
|
|
|
1.586% |
|
|
|
2.357% |
|
| Series E |
|
|
|
|
|
|
1,512 |
|
|
|
2.828% |
|
|
|
1.641% |
|
|
|
2.388% |
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
2,000 |
|
|
|
2.860% |
|
|
|
1.641% |
|
|
|
2.342% |
|
| Series B |
|
|
|
|
|
|
2,000 |
|
|
|
2.869% |
|
|
|
1.663% |
|
|
|
2.357% |
|
| Series C |
|
|
|
|
|
|
2,000 |
|
|
|
2.828% |
|
|
|
1.641% |
|
|
|
2.388% |
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,304 |
|
|
|
2.860% |
|
|
|
1.641% |
|
|
|
2.342% |
|
| Series B |
|
|
|
|
|
|
1,304 |
|
|
|
2.860% |
|
|
|
1.630% |
|
|
|
2.342% |
|
| Series C |
|
|
|
|
|
|
1,304 |
|
|
|
2.869% |
|
|
|
1.663% |
|
|
|
2.357% |
|
| Series D |
|
|
|
|
|
|
1,304 |
|
|
|
2.860% |
|
|
|
1.586% |
|
|
|
2.357% |
|
| Series E |
|
|
|
|
|
|
1,304 |
|
|
|
2.828% |
|
|
|
1.641% |
|
|
|
2.388% |
|
|
|
|
|
|
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
2,500 |
|
|
|
2.860% |
|
|
|
1.630% |
|
|
|
2.342% |
|
| Series B |
|
|
|
|
|
|
2,500 |
|
|
|
2.860% |
|
|
|
1.586% |
|
|
|
2.357% |
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,880 |
|
|
|
2.860% |
|
|
|
1.630% |
|
|
|
2.342% |
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,580 |
|
|
|
2.869% |
|
|
|
1.663% |
|
|
|
2.357% |
|
| Series B |
|
|
|
|
|
|
1,580 |
|
|
|
2.828% |
|
|
|
1.641% |
|
|
|
2.388% |
|
|
|
|
|
|
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
|
|
|
|
|
1,280 |
|
|
|
2.860% |
|
|
|
1.641% |
|
|
|
2.342% |
|
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.
|
|
|
|
|
|
|
|
|
| 74 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
June 30, 2018
(Unaudited)
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%* |
|
|
x |
|
|
OR |
|
|
= |
|
|
|
Maximum Rate for the Funds |
|
| |
|
|
|
|
|
The Taxable Equivalent of
the Short-Term Municipal
Obligation Rate ** |
|
|
|
|
|
|
|
|
| * |
150% if all or part of the dividend consists of taxable income or capital gain. |
| ** |
“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.
13. REGULATORY AND LITIGATION MATTERS
The Funds are not named as defendants in any
material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against them.
The foregoing speaks only as of the date of this report.
14. FEDERAL INCOME TAX MATTERS
Each Fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all
of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.
A Fund may be subject to local withholding taxes, including
those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.
In accordance with U.S. GAAP, the Manager has reviewed the
Funds’ tax positions for all open tax years. As of June 30, 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 their last fiscal year ended
December 31, 2017, the Funds had accumulated capital losses expiring in the following years (amounts in thousands†). The Funds will resume capital gain distributions in the future to the extent gains are realized in
excess of accumulated capital losses.
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Expiration of
Accumulated
Capital Losses
12/31/2018 |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
0 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
695 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
0 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand. |
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.
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
75 |
Notes to Financial Statements (Cont.)
As of their last fiscal year ended December 31, 2017, the Funds had the following post-effective capital losses with no expiration (amounts in thousands†):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Short-Term |
|
|
Long-Term |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
4,816 |
|
|
$ |
0 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
10,491 |
|
|
|
0 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
6,803 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
4,182 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
2,555 |
|
|
|
0 |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand. |
As of June 30, 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)(1) |
|
| PIMCO Municipal Income Fund |
|
|
|
|
|
$ |
571,902 |
|
|
$ |
43,122 |
|
|
$ |
(4,170 |
) |
|
$ |
38,952 |
|
| PIMCO Municipal Income Fund II |
|
|
|
|
|
|
1,336,570 |
|
|
|
83,260 |
|
|
|
(3,952 |
) |
|
|
79,308 |
|
| PIMCO Municipal Income Fund III |
|
|
|
|
|
|
634,559 |
|
|
|
46,961 |
|
|
|
(3,602 |
) |
|
|
43,359 |
|
| PIMCO California Municipal Income Fund |
|
|
|
|
|
|
488,800 |
|
|
|
30,336 |
|
|
|
(387 |
) |
|
|
29,949 |
|
| PIMCO California Municipal Income Fund II |
|
|
|
|
|
|
458,994 |
|
|
|
40,614 |
|
|
|
(2,804 |
) |
|
|
37,810 |
|
| PIMCO California Municipal Income Fund III |
|
|
|
|
|
|
407,154 |
|
|
|
23,935 |
|
|
|
(315 |
) |
|
|
23,620 |
|
| PIMCO New York Municipal Income Fund |
|
|
|
|
|
|
157,650 |
|
|
|
7,648 |
|
|
|
(550 |
) |
|
|
7,098 |
|
| PIMCO New York Municipal Income Fund II |
|
|
|
|
|
|
223,633 |
|
|
|
13,193 |
|
|
|
(769 |
) |
|
|
12,424 |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
|
97,371 |
|
|
|
5,549 |
|
|
|
(242 |
) |
|
|
5,307 |
|
| † |
A zero balance may reflect actual amounts rounding to less than one thousand. |
| (1) |
Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) are attributable to wash sale loss deferrals
for Federal income tax purposes. |
15. SUBSEQUENT EVENTS
In preparing these financial statements, the Funds’
management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
On July 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 per share (or $21,250 per share) and any unpaid dividends accrued through the expiration of the tender offers (each, a “Tender Offer”).
Each Fund’s Tender Offer will expire at 5:00 p.m., New York
City time, on September 11, 2018, unless extended.
Each Fund’s Tender Offer is conditioned upon the successful private placement of new preferred shares with an aggregate liquidation
preference at least equal to the aggregate liquidation preference of the ARPS accepted for repurchase in such tender offer, with such private placement to be completed on or before the date of completion of such Fund’s Tender Offer, and in
accordance with the terms of a purchase agreement and the Funds’ Bylaws. However, each Fund may waive this condition in its sole discretion. Each Fund’s Tender Offer is also
conditioned on certain other conditions as set forth in each Fund’s tender offer materials. The new preferred shares, if successfully placed, are generally expected to allow each Fund to
replace all or a portion of the leverage currently obtained through tendered ARPS with new preferred shares. Additional information is available in the tender offer documents for each Fund, which can be obtained on the Securities and Exchange
Commission’s website at www.sec.gov.
On
July 2, 2018, the following distributions were declared to common shareholders payable August 1, 2018 to shareholders of record on July 13, 2018:
|
|
|
|
|
|
|
|
|
| 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 |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
$ |
0.04225 per common share |
|
|
|
|
|
|
|
|
|
|
| 76 |
|
PIMCO CLOSED-END FUNDS |
|
|
|
|
|
|
June 30, 2018
(Unaudited)
On August 1,
2018, the following distributions were declared to common shareholders payable September 4, 2018 to shareholders of record on August 13, 2018:
|
|
|
|
|
|
|
|
|
| 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 |
|
| PIMCO New York Municipal Income Fund III |
|
|
|
|
|
$ |
0.04225 per common share |
|
There were no other subsequent
events identified that require recognition or disclosure.
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
77 |
Glossary: (abbreviations that may
be used in the preceding statements)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty Abbreviations: |
|
|
|
|
|
|
|
|
| FICC |
|
Fixed Income Clearing Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 78 |
|
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”), PIMCO New York Municipal Income Fund II (“PNI”) and PIMCO New York Municipal Income Fund III (“PYN”) (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.
|
|
|
|
|
|
|
|
|
SEMIANNUAL REPORT |
|
JUNE 30, 2018 |
|
79 |
Approval of Investment Management Agreement
At an in-person meeting held on June 14, 2018
(the “Approval Meeting”), the Board of Trustees or Directors (for purposes of this disclosure, all Board members are hereinafter referred to as “Trustees”) of the Funds (the “Board”), including the Trustees who are not
interested persons (as that term is defined in the Investment Company Act of 1940) of the Funds or PIMCO (the “Independent Trustees”), formally considered and unanimously approved the continuation of the Investment Management Agreement
between each Fund and PIMCO (the “Agreement”) for an additional one-year period commencing on August 1, 2018. Prior to the Approval Meeting, the Contracts Committee of the Board of each Fund
(together, the “Committee”) held an in-person meeting on June 14, 2018 (the “Committee Meeting”) and formally considered and recommended to the Board the continuation of the Agreement
for each Fund. Prior to the Approval Meeting, on May 11, 2018, the Chair and another member of the Committee participated in a conference call with members of management and PIMCO personnel and counsel to the Independent Trustees
(“Independent Counsel”) to discuss the process for the Board’s review of the Agreement and to consider certain information relating to the Funds, including, among other information, information relating to PIMCO’s estimated
profitability with respect to the Agreement, comparative fees and expenses and Fund performance. On May 16, 2018, PIMCO provided materials to the Committee for its consideration of the Agreement in response to a request from Independent Counsel
(the “Manager Request Letter”), as well as other materials and information PIMCO believed was useful in evaluating the continuation of the Agreement. On May 23, 2018, the Committee held a meeting via conference call (collectively
with the May 11, 2018 conference call, the Committee Meeting and the Approval Meeting, the “Contract Renewal Meetings”), at which the members of the Committee, all of whom are Independent Trustees, considered the materials and
information provided by PIMCO bearing on the continuation of the Agreement. The Committee also received and reviewed a memorandum from counsel to the Funds regarding the Trustees’ responsibilities in evaluating the Agreement, which they
discussed with Independent Counsel.
Following the
presentation at the Committee Meeting, the Independent Trustees met separately in executive session with Independent Counsel to review and discuss all relevant information, including, but not limited to, information provided in response to the
Manager Request Letter and information presented and discussed at the prior Contract Renewal Meetings.
In connection with their deliberations regarding the proposed continuation of the Agreement for each Fund, the Trustees, including the Independent Trustees, considered such information and
factors as they believed, in light of the legal advice furnished to them and their
own business judgment, to be relevant. The Trustees also considered the nature, quality and extent of the various investment management, administrative and other services performed by PIMCO under
the Agreement.
It was noted that, in
connection with their Contract Renewal Meetings, the Trustees relied upon materials provided by PIMCO which included, among other items: (i) information provided by Broadridge Financial Solutions, Inc./Lipper Inc. (“Lipper”), an
independent third party, on the total return investment performance (based on net asset value and common share market price) of each Fund for various time periods, presented through comparisons to the investment performance of a group of funds
identified by Lipper with investment classifications/objectives comparable to those of the Fund (for each Fund, its “Lipper Performance Universe”), (ii) information provided by Lipper on each Fund’s management fees and other
expenses under the Agreement and the management fees and other expenses of a smaller sample of comparable funds with different investment advisers identified by Lipper (for each Fund, its “Lipper Expense Group”) as well as of a larger
sample of comparable funds identified by Lipper (for each Fund, its “Lipper Expense Universe”), (iii) information regarding the market value performance of each Fund’s common shares and related share price premium and/or discount
information, (iv) information regarding the investment performance and fees for other funds and accounts managed by PIMCO with similar investment strategies to those of the Funds, (v) the estimated profitability to PIMCO with respect to
each Fund for the one-year period ended December 31, 2017, (vi) descriptions of various functions performed by PIMCO for the Funds, such as portfolio management, compliance monitoring and portfolio
trading practices, (vii) information regarding PIMCO’s compliance policies applicable to the Funds, (viii) information regarding the Funds’ use of leverage, (ix) information regarding any economies of scale reached in the
operation of the Funds, including in connection with potential at-the-market offerings for certain Funds, (x) summaries assigning a quadrant placement to each Fund
based on an average of certain measures of performance and fees/expenses versus Lipper peer group medians (the “Fund Scoring Summaries”), (xi) fact cards for each Fund that included summary information regarding each Fund,
(xii) information regarding the comparative yields of the Funds, (xiii) information regarding the risk-adjusted returns of the Funds, (xiv) possible “fall-out” benefits to PIMCO from
its relationship with the Funds, and (xv) information regarding the overall organization of PIMCO, including information regarding senior management, portfolio managers and other personnel providing investment management, administrative,
compliance and other services to the Funds.
The
Trustees’ conclusions as to the continuation of the Agreement were based on a comprehensive consideration of all information provided to
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| 80 |
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PIMCO CLOSED-END FUNDS |
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(Unaudited)
the Trustees and were not the result of any single factor. Some of the factors that figured
particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, attributing different weights to various factors.
As part of their review, the Trustees examined PIMCO’s
abilities to provide high-quality investment management and other services to the Funds. Among other information, the Trustees considered the investment philosophy and research and decision-making processes of PIMCO; the experience of key advisory
personnel of PIMCO responsible for portfolio management of the Funds; the ability of PIMCO to attract and retain capable personnel; and the capabilities of the senior management and staff of PIMCO. In addition, the Trustees reviewed the quality of
PIMCO’s services with respect to regulatory compliance and compliance with the investment policies of the Funds; the nature and quality of the supervisory and administrative services PIMCO is responsible for providing to the Funds; and
conditions that might affect PIMCO’s ability to provide high-quality services to the Funds in the future under the Agreement, including PIMCO’s financial condition and operational stability. Based on the foregoing, the Trustees concluded
that PIMCO’s investment process, research capabilities and philosophy are well suited to the Funds given their investment objectives and policies, and that PIMCO would be able to continue to meet any reasonably foreseeable obligations under the
Agreement.
In assessing the reasonableness of each
Fund’s fees under the Agreement, the Trustees considered, among other information, the Fund’s management fee and its total expense ratio as a percentage of average net assets attributable to common shares and as a percentage of average
managed assets (including assets attributable to common shares and leverage outstanding combined), and the management fee and total expense ratios of the Lipper Expense Group and Lipper Expense Universe for each Fund. In each case, the total expense
ratio information was provided both inclusive and exclusive of interest and borrowing expenses. Fund-specific comparative fees/expenses reviewed by the Trustees are discussed below. The Fund-specific fee and expense results discussed below were
prepared and provided by Lipper and were not independently verified by the Trustees.
The Trustees specifically took note of how each Fund compared to its Lipper peers as to performance, management fee expense and total expense ratio. The Trustees noted that, while the Funds
are not currently charged a separate administration fee (recognizing that their management fees include a component for administrative services under the unitary fee arrangements), it was not clear in all cases whether the peer funds in the Lipper
categories were separately charged such a fee by their investment managers, so that the total expense ratio, as opposed to any individual expense component,
represented the most relevant comparison. The Trustees also considered that the total expense ratio seems to provide a more apt comparison than management fee expense because the Funds’
unitary fee arrangements cover other supervisory and administrative services required by the Fund that are typically paid for or incurred by peer closed-end funds directly in addition to a fund’s
management fee (such fees and expenses, “Operating Expenses”) as discussed below. It was noted that the total expense ratio comparisons reflect the effect of expense waivers/reimbursements, if any. The Trustees considered total expense
ratio comparisons both including and excluding interest and borrowing expenses. The Trustees noted that only leveraged closed-end funds were considered for inclusion in the Lipper Expense Groups and Lipper
Expense Universes presented for comparison with the Funds.
The Trustees noted that, for each Fund, the contractual management fee rate for the Fund under its unitary fee arrangement was above the median contractual management fees of the other funds
in its Lipper Expense Group, calculated both on average net assets and on average managed assets. The Trustees took into account that each Fund’s unitary fee arrangement covers substantially all of the Fund’s Operating Expenses and
therefore, all other things being equal, would tend to be higher than the contractual management fee rates of other funds in the applicable Lipper Expense Group, which generally do not have a unitary fee structure and bear Operating Expenses
directly and in addition to the management fee. The Trustees determined that a review of each Fund’s total expense ratio with the total expense ratios of peer funds would generally provide more meaningful comparisons than considering
contractual management fee rates in isolation.
In
this regard, the Trustees noted PIMCO’s view that the unitary fee arrangements have benefited and will continue to benefit common shareholders because they provide a management fee expense structure (including Operating Expenses) that is
essentially fixed for the duration of the contractual period as a percentage of net assets (including assets attributable to preferred shares), making it more predictable under ordinary circumstances in comparison to other fee and expense
structures, under which the Funds’ Operating Expenses (including certain third-party fees and expenses) could vary significantly over time. The Trustees considered that the unitary fee arrangements generally insulate the Funds and common
shareholders from increases in applicable third-party and certain other expenses because PIMCO, rather than the Funds, would bear the risk of such increases (though the Trustees also noted that PIMCO would benefit from any reductions in
such expenses).
Fund-specific comparative
performance results for the Funds reviewed by the Trustees are discussed below. The comparative performance information was prepared and provided by Lipper and was not independently verified by the Trustees. Due to the passage of time,
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SEMIANNUAL REPORT |
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JUNE 30, 2018 |
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81 |
Approval of Investment Management Agreement (Cont.)
these performance results may differ from the performance results for more recent periods. With respect to all Funds, the Trustees reviewed, among other information, comparative information
showing performance of the Funds against the Lipper Performance Universes for the one-year, three-year, five-year and ten-year periods ended December 31, 2017. The
Trustees also reviewed the Fund Scoring Summaries prepared by PIMCO at the Independent Trustees’ request comparing each Fund’s fees/expenses against those of its Lipper Expense Universe and performance against that of its Lipper
Performance Universe, by identifying a quadrant designation based on the average of six different measures of fees/expenses versus performance (one-year, three-year and five-year performance for the period
ended December 31, 2017, in each case, versus a Fund’s management fees or total expense ratio). The Fund Scoring Summaries were based on net assets, one showing total expenses inclusive of interest and borrowing expenses and the other
showing total expenses exclusive of interest and borrowing expenses. In addition, the Trustees also reviewed fact cards for each Fund that included summary information regarding each Fund, including investment objective and strategy, portfolio
managers, assets under management, outstanding leverage, net asset value and market performance comparisons, comparative fee and expense information, premium/discount information and information regarding PIMCO’s estimated profitability.
In addition, it was noted that the Trustees
considered matters bearing on the Funds and their advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting.
Among other information, the Trustees took into account the
following regarding particular Funds.
PMF
With respect to the Fund’s common share total return
performance (based on net asset value) relative to its respective Lipper Performance Universe, consisting of 60 funds for one-year and three-year performance, 58 funds for five-year performance and 53 funds
for ten-year performance, the Trustees noted that the Fund had second quintile performance for the one-year period and first quintile performance for the three-year,
five-year and ten-year periods ended December 31, 2017.
The Trustees noted that the Lipper Expense Group for the Fund consisted of a total of ten funds, including the Fund. The Trustees also noted that the average net assets of the common shares
of the funds in the Lipper Expense Group ranged from $117.4 million to $934.4 million, and that eight of the funds in the group were larger in asset size than the Fund. The Trustees noted that the Lipper Expense Universe for the Fund consisted of a
total of 60 funds, including the
Fund. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average managed assets and average net assets was below the median
total expense ratio (including interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated
on both average managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe.
PML
With respect to the Fund’s common share total return
performance (based on net asset value) relative to its respective Lipper Performance Universe, consisting of 60 funds for one-year and three-year performance, 58 funds for five-year performance and 53 funds
for ten-year performance, the Trustees noted that the Fund had second quintile performance for the one-year period, first quintile performance for the three-year and
five-year periods and fifth quintile performance for the ten-year period ended December 31, 2017.
The Trustees noted that the Lipper Expense Group for the Fund consisted of a total of ten funds, including the Fund. The Trustees also noted
that the average net assets of the common shares of the funds in the Lipper Expense Group ranged from $117.4 million to $934.4 million, and that one of the funds in the group was larger in asset size than the Fund. The Trustees noted that the
Lipper Expense Universe for the Fund consisted of a total of 60 funds, including the Fund. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average managed assets and average
net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and
borrowing expenses) calculated on both average managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe.
PMX
With respect to the Fund’s common share total return performance (based on net asset value) relative to its
respective Lipper Performance Universe, consisting of 60 funds for one-year and three-year performance, 58 funds for five-year performance and 53 funds for ten-year
performance, the Trustees noted that the Fund had first quintile performance for the one-year, three-year and five-year periods and fifth quintile performance for the
ten-year period ended December 31, 2017.
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| 82 |
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PIMCO CLOSED-END FUNDS |
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(Unaudited)
The Trustees
noted that the Lipper Expense Group for the Fund consisted of a total of 10 funds, including the Fund. The Trustees also noted that the average net assets of the common shares of the funds in the Lipper Expense Group ranged from $117.4 million
to $934.4 million, and that seven of the funds in the group were larger in asset size than the Fund. The Trustees noted that the Lipper Expense Universe for the Fund consisted of a total of 60 funds, including the Fund. The Trustees noted that the
Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average managed assets and average net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its
Lipper Expense Group and Lipper Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average managed assets and average net assets was above the median total
expense ratio (excluding interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe.
PCQ
With respect to the Fund’s common share total return performance (based on net asset value) relative to its respective Lipper Performance Universe, consisting of 17 funds for one-year, three-year and five-year performance and 16 funds for ten-year performance, the Trustees noted that the Fund had first quintile performance for the one-year, three-year, five-year and ten-year periods ended December 31, 2017.
The Trustees noted that the Lipper Expense Group for the Fund consisted of a total of six funds, including the Fund. The Trustees also noted
that the average net assets of the common shares of the funds in the Lipper Expense Group ranged from $129.6 million to $663.9 million, and that four of the funds in the group were larger in asset size than the Fund. The Trustees noted
that the Lipper Expense Universe for the Fund consisted of a total of 17 funds, including the Fund. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average managed assets and
average net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding
interest and borrowing expenses) calculated on both average managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense
Universe.
PCK
With respect to the Fund’s common share total return
performance (based on net asset value) relative to its respective Lipper Performance Universe, consisting of 17 funds for one-year, three-year and five-year
performance and 16 funds for ten-year performance, the Trustees noted that the Fund had first quintile performance for the
one-year, three-year and five-year periods and fifth quintile performance for the ten-year period ended December 31, 2017.
The Trustees noted that the Lipper Expense Group for the Fund
consisted of a total of six funds, including the Fund. The Trustees also noted that the average net assets of the common shares of the funds in the Lipper Expense Group ranged from $129.6 million to $663.9 million, and that three of the funds
in the group were larger in asset size than the Fund. The Trustees noted that the Lipper Expense Universe for the Fund consisted of a total of 17 funds, including the Fund. The Trustees noted that the Fund’s total expense ratio (including
interest and borrowing expenses) calculated on both average managed assets and average net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense
Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average managed assets and average net assets was above the median total expense ratio (excluding interest and
borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe.
PZC
With
respect to the Fund’s common share total return performance (based on net asset value) relative to its respective Lipper Performance Universe, consisting of 17 funds for one-year, three-year and five-year
performance and 16 funds for ten-year performance, the Trustees noted that the Fund had first quintile performance for the one-year, three-year and five-year periods and
fifth quintile performance for the ten-year period ended December 31, 2017.
The Trustees noted that the Lipper Expense Group for the Fund consisted of a total of six funds, including the Fund. The Trustees also noted
that the average net assets of the common shares of the funds in the Lipper Expense Group ranged from $129.6 million to $663.9 million, and that four of the funds in the group were larger in asset size than the Fund. The Trustees noted that the
Lipper Expense Universe for the Fund consisted of a total of 17 funds, including the Fund. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average managed assets and average
net assets was below the median total expense ratio (including interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and
borrowing expenses) calculated on both average managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe.
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SEMIANNUAL REPORT |
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JUNE 30, 2018 |
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83 |
Approval of Investment Management Agreement (Cont.)
PNF
With respect to the Fund’s common share total return
performance (based on net asset value) relative to its respective Lipper Performance Universe, consisting of 18 funds for one-year, three-year and five-year performance and 17 funds for ten-year performance, the Trustees noted that the Fund had first quintile performance for the one-year, three-year and five-year periods and third quintile performance for the
ten-year period ended December 31, 2017.
The Trustees noted that the Lipper Expense Group for the Fund consisted of a total of five funds, including the Fund. The Trustees also noted that the average net assets of the common shares
of the funds in the Lipper Expense Group ranged from $78.7 million to $486.5 million, and that three of the funds in the group were larger in asset size than the Fund. The Trustees noted that the Lipper Expense Universe for the Fund
consisted of a total of 18 funds, including the Fund. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average managed assets and average net assets was below the median total
expense ratio (including interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on
both average managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe.
PNI
With respect to the Fund’s common share total return
performance (based on net asset value) relative to its respective Lipper Performance Universe, consisting of 18 funds for one-year, three-year and five-year performance and 17 funds for ten-year performance, the Trustees noted that the Fund had first quintile performance for the one-year, three-year and five-year periods and fourth quintile performance for
the ten-year period ended December 31, 2017.
The Trustees noted that the Lipper Expense Group for the Fund consisted of a total of five funds, including the Fund. The Trustees also noted that the average net assets of the common shares
of the funds in the Lipper Expense Group ranged from $78.7 million to $486.5 million, and that three of the funds in the group were larger in asset size than the Fund. The Trustees noted that the Lipper Expense Universe for the Fund
consisted of a total of 18 funds, including the Fund. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average managed assets and average net assets was below the median total
expense ratio (including interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses)
calculated on both average managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Lipper Expense Group and
Lipper Expense Universe.
PYN
With respect to the Fund’s common share total return
performance (based on net asset value) relative to its respective Lipper Performance Universe, consisting of 18 funds for one-year, three-year and five-year performance and 17 funds for ten-year performance, the Trustees noted that the Fund had first quintile performance for the one-year, three-year and five-year periods and fifth quintile performance for the
ten-year period ended December 31, 2017.
The Trustees noted that the Lipper Expense Group for the Fund consisted of a total of five funds, including the Fund. The Trustees also noted that the average net assets of the common shares
of the funds in the Lipper Expense Group ranged from $52.7 million to $486.5 million, and that each fund in the group was larger in asset size than the Fund. The Trustees noted that the Lipper Expense Universe for the Fund consisted of a
total of 18 funds, including the Fund. The Trustees noted that the Fund’s total expense ratio (including interest and borrowing expenses) calculated on both average managed assets and average net assets was below the median total expense ratio
(including interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe. The Trustees noted that the Fund’s total expense ratio (excluding interest and borrowing expenses) calculated on both average
managed assets and average net assets was above the median total expense ratio (excluding interest and borrowing expenses) of the funds in its Lipper Expense Group and Lipper Expense Universe.
In addition to their review of Fund performance based on net
asset value, the Trustees also considered the market value performance of each Fund’s common shares and related share price premium and/or discount information based on the materials provided by Lipper and PIMCO. The Trustees also
considered information provided by PIMCO regarding the dividend yields of each Fund in comparison to funds in the following Lipper groupings as of December 31, 2017: Lipper General & Insured Municipal Debt Funds (Leveraged) (PMF, PML,
PMX), Lipper New York Municipal Debt Funds (PNF, PNI, PYN), and Lipper California Municipal Debt Funds (PCQ, PCK, PZC).
The Trustees considered the management fees charged by PIMCO to other funds and accounts with similar strategies to those of the Funds. The
Trustees considered information provided by PIMCO indicating that, in comparison to certain other products managed by PIMCO, including open-end funds and exchange-traded funds, there are additional portfolio
management challenges in managing closed-end funds such as the Funds, such as those associated with less liquid
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| 84 |
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PIMCO CLOSED-END FUNDS |
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(Unaudited)
holdings, the use of leverage, issues relating to trading on a national exchange and
attempting to meet a regular dividend. The Trustees were advised by PIMCO that, in light of these additional challenges, different pricing structures for closed-end funds such as the Funds and other products
managed by PIMCO are to be expected, and that comparisons of pricing structures across these products may not always be apt comparisons, even where other products have similar investment objectives and strategies to those of the Funds.
The Trustees also took into account that the Funds have
preferred shares outstanding, which increases the amount of management fees payable by the Funds under the Agreement (because each Fund’s fees are calculated on net assets including assets attributable to preferred shares outstanding). In this
regard, the Trustees took into account that PIMCO has a financial incentive for the Funds to continue to use leverage in the form of preferred shares, which may create a conflict of interest between PIMCO, on one hand, and the Funds’ common
shareholders, on the other. The Trustees considered information provided by PIMCO and related presentations as to why each Fund’s use of leverage continues to be appropriate and in the best interests of the respective Fund under current
market conditions. The Trustees also considered PIMCO’s representation that it will use leverage for the Funds solely as it determines to be in the best interests of the Funds from an investment perspective and without regard to the level of
compensation PIMCO receives.
The Trustees also
considered estimated profitability analyses provided by PIMCO, which included, among other information, (i) PIMCO’s estimated pre- and post-distribution operating margin for each Fund, as well as
PIMCO’s estimated pre- and post-distribution operating margin for all of the closed-end funds advised by PIMCO, including the Funds (collectively, the
“Estimated Margins”), in each case for the one-year period ended December 31, 2017; (ii) a year-over-year comparison of PIMCO’s Estimated Margins for the
one-year periods ended December 31, 2017 and December 31, 2016, and (iii) an overview of PIMCO’s average fee rates with respect to all of the
closed-end funds advised by PIMCO, including the Funds, compared to PIMCO’s average fee rates with respect to its other clients, including PIMCO-advised separate accounts,
open-end funds and hedge funds and private equity funds. The Trustees also took into account explanations from PIMCO regarding how certain corporate and shared expenses were allocated among the Funds and other
funds and accounts managed by PIMCO for purposes of developing profitability estimates. Based on the profitability analyses provided by PIMCO, the Trustees determined, taking into account the various assumptions made, that such profitability did not
appear to be excessive.
The Trustees also took into
account the entrepreneurial and business risk PIMCO has undertaken as investment manager and sponsor of the Funds.
The Trustees also took into account that the Funds do not currently have any breakpoints in
their management fees. The Trustees considered that, as closed-end investment companies, the Funds do not continually offer new shares to raise additional assets (as does a typical open-end investment company), but may raise additional assets through periodic shelf offerings and may also experience asset growth through investment performance and/or the increased use of leverage. The Trustees
noted that PIMCO shares the benefits of potential economies of scale with the Funds and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal
and compliance, and fund administration logistics; senior management supervision and governance of those services; and the enhancement of services provided to the Funds in return for fees paid. The Trustees also considered that the unitary fee
arrangements provide inherent economies of scale because a Fund maintains competitive fixed unitary fees even if the particular Fund’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints
are a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Funds’ unitary fee
arrangements, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unitary fee arrangements
protect shareholders from a rise in operating costs that may result from, including, among other things, PIMCO’s investments in various business enhancements and infrastructure. The Trustees noted that PIMCO has made extensive investments in
these areas.
Additionally, the Trustees considered so-called “fall-out benefits” to PIMCO, such as reputational value derived from serving as investment manager to the Funds and research, statistical and quotation
services PIMCO may receive from broker-dealers executing the Funds’ portfolio transactions on an agency basis.
After reviewing these and other factors described herein, the Trustees concluded, with respect to each Fund, within the context of their
overall conclusions regarding the Agreement and based on the information provided and related representations made by management, that they were satisfied with PIMCO’s responses and efforts relating to the investment performance of the Funds.
The Trustees also concluded that the fees payable under the Agreement represent reasonable compensation in light of the nature, extent and quality of services provided by PIMCO. Based on their evaluation of factors that they deemed to be material,
including those factors described above, the Trustees, including the Independent Trustees, unanimously concluded that the continuation of the Agreement was in the interests of each Fund and its shareholders, and should be approved.
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SEMIANNUAL REPORT |
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JUNE 30, 2018 |
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85 |
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
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
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.
CEF4012SAR_063018
The information required by this Item 2 is only required in an annual report on this Form N-CSR.
| Item 3. |
Audit Committee Financial Expert. |
The information required by this Item 3 is only required in an annual report on this Form N-CSR.
| Item 4. |
Principal Accountant Fees and Services. |
The information required by this Item 4 is only required in an annual report on this Form N-CSR.
| Item 5. |
Audit Committee of Listed Registrants. |
The information required by this Item 5 is only required in an annual report on this Form N-CSR.
| Item 6. |
Schedule of Investments. |
The Schedule of Investments is included as part of the report to shareholders under Item 1.
| Item 7. |
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
|
The information required by this Item 7 is only required in an annual report on this Form N-CSR.
| Item 8. |
Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
| Item 9. |
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
|
None.
| Item 10. |
Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Trustees since
the Fund last provided disclosure in response to this item.
| Item 11. |
Controls and Procedures. |
| |
(a) |
The principal executive officer and principal financial & accounting officer have concluded as of a
date within 90 days of the filing date of this report, based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act), that the
design of such procedures is effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within
the time periods specified in the Commission’s rules and forms. |
| |
(b) |
There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the last fiscal quarter of the period covered by this report that have materially affected, or are
reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| Item 12. |
Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies. |
The information required by this Item 12 is only required in an annual report on
this Form N-CSR.
| |
(a)(1) |
Exhibit 99.CODE— Code of Ethics is not applicable for semiannual reports. |
| |
(a)(2) |
Exhibit 99.CERT—Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002. |
| |
(a)(4) |
There was no change in the registrant’s independent public accountant for the period covered by this
report. |
| |
(b) |
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 California 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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August 28, 2018 |
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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|
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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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August 28, 2018 |
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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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August 28, 2018 |