Form 4: Bank of America and Merrill Lynch Report Extensive Trading in PIMCO Municipal Income Fund II, Ending with Zero Beneficial Ownership

Bank of America Corporation and its subsidiary Merrill Lynch, Pierce, Fenner & Smith Inc. reported extensive same-day acquisitions and dispositions of PIMCO Municipal Income Fund II common stock on June 11, 2025, resulting in a final beneficial ownership of zero shares.

Summary

• Bank of America Corporation and Merrill Lynch, Pierce, Fenner & Smith Inc. (collectively, the "Reporting Persons") filed a Form 4 detailing transactions in PIMCO MUNICIPAL INCOME FUND II (PML) common stock.
• All reported transactions occurred on June 11, 2025.
• The Reporting Persons acquired a total of 30,448 shares of common stock at a price of $7.4487 per share.
• They also disposed of a total of 28,845 shares of common stock, with prices ranging from $7.41 to $7.425 per share.
• Following these transactions, the Reporting Persons' beneficial ownership in PIMCO Municipal Income Fund II stands at 0 shares.
• Bank of America Corporation holds an indirect interest in the securities through its 100% ownership of Merrill Lynch.
• The Reporting Persons disclaim beneficial ownership except to the extent of their pecuniary interest and state that any potential short-swing profits, if applicable under Section 16(b) of the Exchange Act, would be remitted to the Issuer.

Sentiment

Score: 4

Explanation: The document reports a series of simultaneous acquisitions and dispositions of shares by a 10% owner, resulting in zero beneficial ownership. The disposition prices were lower than the acquisition prices, indicating a loss on these specific trades for the reporting entity. The filing itself is a routine compliance disclosure and does not convey positive or negative sentiment about the issuer's performance.

Negatives

• The disposition prices ($7.41 $7.425) were consistently lower than the acquisition price ($7.4487), indicating a loss on these specific same-day trades for the Reporting Persons.
• The Reporting Persons ended with 0 beneficial ownership in PIMCO Municipal Income Fund II, indicating a complete exit from their position related to these transactions.

Risks

• The filing includes a disclaimer regarding Section 16(b) short-swing profit recovery, highlighting a potential regulatory risk for the Reporting Persons if their status as a 10% owner and the transactions were deemed subject to the rule.

Future Outlook

The document is a historical record of transactions and does not provide forward-looking statements or guidance for PIMCO Municipal Income Fund II. It solely details the reporting persons' trading activity.

Management Comments

• "This statement is jointly filed by Bank of America Corporation and Merrill Lynch, Pierce, Fenner & Smith Incorporated ('Merrill Lynch') (collectively, the 'Reporting Persons'). Bank of America Corporation holds an indirect interest in the securities listed in this Report by virtue of its 100% ownership of its subsidiary Merrill Lynch."
• "Each Reporting Person disclaims beneficial ownership of the securities reported herein except to the extent of its pecuniary interest therein, if any, and this report shall not be deemed an admission that any such Reporting Person is the beneficial owner of, or has any pecuniary interest in, such securities for purposes of Securities Exchange Act of 1934 (the 'Exchange Act'), or for any other purpose."
• "Each Reporting Person declares that neither the filing of this statement nor anything herein shall be construed as an admission that such person is, for the purposes of Section 13(d) of the Exchange Act or any other purpose, (i) acting (or has agreed or is agreeing to act together with any other person) as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or disposing of securities of the Issuer or otherwise with respect to the Issuer or any securities of the Issuer or (ii) a member of any group with respect to the Issuer or any securities of the Issuer."
• "Without conceding its status as a greater than 10% beneficial owner or that the reported transactions are subject to disclosure under Section 16(a) of the Exchange Act or short-swing profit recovery under Section 16(b) of the Exchange Act, the amount of profit potentially recoverable by the Issuer from the reported transactions in the event that the Reporting Persons were greater than 10% beneficial owners and the transactions were subject to Section 16(b) will be remitted to the Issuer."

Industry Context

This Form 4 filing reflects routine disclosure requirements for significant shareholders (10% owners) under Section 16(a) of the Securities Exchange Act of 1934. Such filings provide transparency into insider trading activities, which can sometimes signal management's or large investors' sentiment towards a company. In this case, the simultaneous buy and sell activity, resulting in zero beneficial ownership, suggests a specific trading strategy or rebalancing rather than a directional bet on the fund's future performance. It is common for large financial institutions to engage in such activities for various reasons, including market making, arbitrage, or client-driven transactions.

Comparison to Industry Standards

• This document is a standard regulatory filing (Form 4) for reporting changes in beneficial ownership by insiders or 10% owners, adhering to SEC reporting standards.
• The content is specific to the reported transactions and does not provide data for direct comparison to industry financial performance benchmarks or specific comparable companies/projects.

Stakeholder Impact

• Shareholders: The transactions indicate trading activity in the fund's shares. The exit of a 10% owner, while significant, appears to be part of a specific trading strategy given the simultaneous buy/sell, rather than a negative signal about the fund's prospects.
• Regulatory Authorities: The filing ensures transparency regarding insider trading activities as required by SEC regulations.

Key Dates

Keywords

SEC Form 4, Insider Trading, Beneficial Ownership, PIMCO Municipal Income Fund II, PML, Bank of America Corporation, Merrill Lynch, Common Stock, Share Transactions, Investment Fund, Municipal Income