SCHEDULE 13D/A: Bank of America Entities Update Beneficial Ownership in PIMCO Municipal Income Fund III Preferred Shares to 68.1%
Amendment to Schedule 13D
Bank of America Corporation and Banc of America Preferred Funding Corporation have updated their beneficial ownership of PIMCO Municipal Income Fund III's remarketable variable rate munifund term preferred shares to 68.1% due to a decrease in the issuer's outstanding shares.
Summary
- Bank of America Corporation (BAC) and Banc of America Preferred Funding Corporation (BAPFC), collectively the Reporting Persons, filed an Amendment No. 1 to their Schedule 13D.
- The amendment reports a change in the percentage of class beneficially owned by the Reporting Persons in PIMCO Municipal Income Fund III's remarketable variable rate munifund term preferred shares (CUSIP No. 72201A889).
- The change is solely due to a decrease in the outstanding shares of the preferred class of the Issuer, which now stands at 1,822 shares, as reported by PIMCO Municipal Income Fund III in its Form N-CSR filed with the SEC on March 6, 2025.
- The Reporting Persons beneficially own an aggregate of 1,240.00 shares, representing 68.1% of the class.
- Both BAC and BAPFC hold shared voting power and shared dispositive power over all 1,240.00 shares.
- The filing includes updated exhibits, such as a Joint Filing Agreement and Limited Power of Attorney documents for both Bank of America Corporation and Banc of America Preferred Funding Corporation.
Sentiment
Score: 5
Explanation: The document is purely administrative, reporting a factual change in beneficial ownership percentage due to a change in the issuer's outstanding share count. It carries a neutral sentiment as it does not indicate positive or negative operational performance or strategic shifts.
Positives
- NA
Negatives
- NA
Risks
- Bank of America Corporation and certain affiliates, including BofA Securities, Inc. and Bank of America, N.A., have been involved in civil proceedings and regulatory actions concerning their business conduct, with some resulting in findings of federal or state securities law violations, as reported and summarized in the BofA Securities Form BD.
Future Outlook
This administrative filing does not contain any forward-looking statements or guidance regarding the future outlook of PIMCO Municipal Income Fund III or the Reporting Persons' investment strategy.
Industry Context
This filing is an administrative update to a Schedule 13D, reflecting a change in beneficial ownership percentage due to a reduction in the total outstanding shares of a specific preferred stock class by a closed-end fund. It does not provide broader insights into industry trends or competitive landscape beyond the specific ownership structure.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Attorney-in-Fact | Previous appointees under May 11, 2023 Power of Attorney (for BAC) | Marie Andre, Szabina Biro, Andres Ortiz Custodio, Kamil Dziedzic, Valerie Ezeagbo, Kelvin Kwok, Frank Lui, James Todd, Ben Tsoi, Michelle Wong, Monica Yako (for BAC); Marie Andre, Andres Ortiz Custodio, Kamil Dziedzic, Valerie Ezeagbo, Kelvin Kwok, Frank Lui, James Todd, Ben Tsoi, Michelle Wong, Monica Yako (for BAPFC) | 2024-05-07 (for BAC), 2024-11-20 (for BAPFC) | Revocation of previous Limited Power of Attorney and appointment of new attorneys-in-fact for Section 13 and Section 16 filings and other regulatory reporting requirements. |
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Limited Power of Attorney Update | Bank of America Corporation executed a new Limited Power of Attorney on May 7, 2024, revoking the previous one from May 11, 2023. Banc of America Preferred Funding Corporation also executed a new Limited Power of Attorney on November 20, 2024. These grant specific individuals authority to execute documents related to Section 13 and Section 16 of the Securities Exchange Act of 1934. | 2024-05-07 (for BAC), 2024-11-20 (for BAPFC) | Streamlines the process for SEC filings and other regulatory reporting by designating specific individuals as attorneys-in-fact, ensuring compliance with reporting requirements. |
Legal Proceedings
- Bank of America Corporation and certain affiliates, including BofA Securities, Inc. and Bank of America, N.A., have been involved in civil proceedings and regulatory actions, some of which resulted in findings of violations of federal or state securities laws. These are reported and summarized in the BofA Securities Form BD, which is incorporated by reference.
Stakeholder Impact
- Shareholders of PIMCO Municipal Income Fund III: The filing clarifies the significant beneficial ownership stake held by Bank of America entities in the preferred shares, which could influence future corporate actions related to this share class.
- Regulatory Authorities: The filing ensures compliance with SEC disclosure requirements regarding significant beneficial ownership.
Key Dates
| Date | Description |
|---|---|
| 2023-05-11 | Previous Limited Power of Attorney executed by Bank of America Corporation, which was subsequently revoked. |
| 2024-04-17 | Date of the Original Schedule 13D statement. |
| 2024-04-24 | Date the Original Schedule 13D was filed with the SEC. |
| 2024-05-07 | Date of execution and delivery of the Limited Power of Attorney for Bank of America Corporation. |
| 2024-11-20 | Date of execution and delivery of the Limited Power of Attorney for Banc of America Preferred Funding Corporation. |
| 2025-03-06 | Date of event which required filing of this statement; PIMCO Municipal Income Fund III filed Form N-CSR reporting a decrease in outstanding preferred shares. |
| 2025-04-09 | Date of execution and effectiveness of the Joint Filing Agreement and the filing date of this Amendment No. 1. |
Keywords
Schedule 13D/A, Beneficial Ownership, PIMCO Municipal Income Fund III, Bank of America Corporation, Banc of America Preferred Funding Corporation, Preferred Shares, SEC Filing, Investment, Corporate Governance, Financial Reporting
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