Form 4: BofA Subsidiary Exits PIMCO NY Muni Fund III Shares

Bank of America's subsidiary, Banc of America Preferred Funding Corp, exchanged its 260 preferred shares in PIMCO New York Municipal Income Fund III as part of a fund reorganization.

Summary

• Bank of America Corporation, through its wholly-owned subsidiary Banc of America Preferred Funding Corporation (PFC), reported a change in beneficial ownership of PIMCO New York Municipal Income Fund III (PYN) shares.
• On August 1, 2025, PFC disposed of 260 Remarketable Variable Rate MuniFund Term Preferred Shares of PYN.
• This transaction was a cashless exchange, occurring as part of the reorganization of PYN and PIMCO New York Municipal Income Fund into PIMCO New York Municipal Income Fund II.
• Following this transaction, PFC's beneficial ownership of the reported shares in PYN is 0.
• Bank of America Corporation held an indirect interest in these securities through its ownership of PFC.

Sentiment

Score: 5

Explanation: The filing reports a routine, cashless exchange of shares as part of a fund reorganization. It is a neutral event with no apparent positive or negative financial implications for the reporting entity or the issuer beyond the structural change.

Positives

• The transaction was a cashless exchange, indicating no direct cash outflow for the reporting entity.
• The exchange was part of a fund reorganization, suggesting a structured and planned corporate action rather than an unplanned divestiture.

Future Outlook

The filing indicates a reorganization of PIMCO New York Municipal Income Fund III into PIMCO New York Municipal Income Fund II, suggesting a future operational structure for the funds involved.

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 transaction reflects a common practice in the investment fund industry where funds undergo reorganizations or mergers to optimize their structure, management, or investment objectives. For Bank of America, it represents a re-alignment of its indirect holdings in municipal income funds.

Comparison to Industry Standards

• The cashless exchange of preferred shares as part of a fund reorganization is a standard procedure in the asset management industry for consolidating or restructuring investment vehicles.
• Similar reorganizations have been observed with other large fund families like BlackRock, Vanguard, or Fidelity, where older or smaller funds are merged into larger, more efficient structures to benefit from economies of scale or updated investment mandates.
• For instance, a comparable event might be when a series of municipal bond funds from a major asset manager are consolidated to streamline operations and reduce overhead, often involving a share-for-share exchange for existing shareholders.

Related Party Transactions

• The transaction involves Banc of America Preferred Funding Corporation, a wholly-owned subsidiary of Bank of America Corporation, exchanging shares in a fund where Bank of America Corporation is a 10% owner and director. This is an intra-group or related-party transaction in the context of the fund's reorganization.

Stakeholder Impact

• Shareholders (of PYN): Their shares in PYN were exchanged for shares in PIMCO New York Municipal Income Fund II, maintaining their investment in a reorganized fund structure.
• Bank of America Corporation: Its indirect beneficial ownership shifted from PYN to PIMCO New York Municipal Income Fund II, reflecting a change in its investment vehicle rather than a divestment from the municipal bond sector.

Next Steps

• PIMCO New York Municipal Income Fund III and PIMCO New York Municipal Income Fund will operate as PIMCO New York Municipal Income Fund II following the reorganization.

Key Dates

Recommendation

This Form 4 filing details a routine, cashless exchange of preferred shares by a Bank of America subsidiary as part of a fund reorganization. It does not indicate any material financial performance changes, strategic shifts, or new risks for either Bank of America or the PIMCO funds that would warrant a change in investment recommendation. The transaction is an expected administrative event following a fund restructuring.

Keywords

Bank of America, PIMCO, Form 4, SEC filing, Beneficial Ownership, Preferred Shares, Fund Reorganization, Municipal Income Fund, PYN, Banc of America Preferred Funding Corp