Form 4: Bank of America Reports PIMCO Fund Share Exchange

Bank of America and its subsidiary reported the cashless exchange of 900 preferred shares in PIMCO California Municipal Income Fund II due to a fund reorganization.

Summary

• Bank of America Corporation and its wholly-owned subsidiary, Banc of America Preferred Funding Corporation (PFC), filed a Form 4.
• The filing reports the disposition of 900 Remarketable Variable Rate MuniFund Term Preferred Shares (RVMTP Shares) of PIMCO California Municipal Income Fund II (PCK).
• This transaction occurred on August 1, 2025.
• The disposition was a cashless exchange of these shares for an equal number of RVMTP Shares of the newly reorganized PIMCO California Municipal Income Fund.
• The exchange is part of a reorganization where PIMCO California Municipal Income Fund II and PIMCO California Municipal Income Fund III merged into PIMCO California Municipal Income Fund.

Sentiment

Score: 5

Explanation: The filing is a routine Form 4 reporting a cashless share exchange due to a fund reorganization, which is a neutral, procedural event.

Positives

• The transaction was a cashless exchange, indicating no direct cash outflow for the reporting entities.
• The exchange is part of a fund reorganization, which can streamline operations and potentially benefit fund shareholders in the long term.

Negatives

• No direct negative financial impact reported for the reporting persons as it was a cashless exchange.

Future Outlook

The filing details a past transaction related to a fund reorganization, but does not provide specific forward-looking statements or guidance regarding future performance or strategic initiatives.

Management Comments

• 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 US Securities Exchange Act of 1934 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.

Industry Context

This is a routine insider transaction filing (Form 4) related to a fund reorganization. Fund reorganizations are common in the investment management industry to optimize fund structures, reduce costs, or align with new investment strategies. Bank of America, as a large financial institution, frequently holds significant positions in various funds and reports such changes as required.

Comparison to Industry Standards

• The cashless exchange of preferred shares due to a fund reorganization is a standard procedural event in the asset management industry, often seen when investment trusts or funds consolidate or restructure.
• Similar reorganizations have been undertaken by other large fund managers like BlackRock, Vanguard, or Fidelity to streamline their fund offerings.

Related Party Transactions

• Banc of America Preferred Funding Corporation, a wholly-owned subsidiary of Bank of America Corporation, disposed of shares in PIMCO California Municipal Income Fund II.
• Bank of America Corporation is also a 10% owner of the Issuer.

Stakeholder Impact

• Shareholders (of PCK): The reorganization could impact the structure and future performance of their investment, potentially leading to a more streamlined fund.
• Reporting Persons (Bank of America/PFC): The cashless exchange means no direct financial impact from this specific transaction, but it reflects a change in their investment portfolio structure.

Key Dates

Keywords

PIMCO, Bank of America, Form 4, SEC filing, beneficial ownership, preferred shares, fund reorganization, municipal income fund