SCHEDULE: Bank of America Exits PIMCO Muni Fund II Stake
Beneficial Ownership Update
Bank of America entities have ceased beneficial ownership in PIMCO California Municipal Income Fund II following a fund reorganization.
Summary
- Bank of America Corporation (BAC) and Banc of America Preferred Funding Corporation (BAPFC), the Reporting Persons, filed an Amendment No. 2 to their Schedule 13D.
- The amendment reports that BAPFC exchanged 900 Remarketable Variable Rate Munifund Term Preferred (RVMTP) Shares of PIMCO California Municipal Income Fund II (the Issuer) for an equal number of RVMTP Shares of PIMCO California Municipal Income Fund (PCQ).
- This exchange occurred as a result of the reorganization of the Issuer and PIMCO California Municipal Income Fund III (PZC) into PCQ.
- As of August 1, 2025, the Reporting Persons no longer own any RVMTP Shares of the Issuer and have ceased to be beneficial owners of more than five percent of the class of securities.
- All voting and financing arrangements related to the Issuer's RVMTP Shares have been terminated due to the reorganization.
Sentiment
Score: 5
Explanation: The filing is neutral, serving as a factual update on a change in beneficial ownership due to a fund reorganization, with no explicit positive or negative implications for the reporting entities' financial performance.
Risks
- Bank of America Corporation and its 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.
Future Outlook
The filing primarily reports a past event (the reorganization and cessation of beneficial ownership as of August 1, 2025) and does not provide forward-looking statements or guidance regarding future financial performance or strategic direction for the reporting entities or the PIMCO funds beyond the completion of the reorganization.
Industry Context
This filing reflects a specific fund reorganization within the municipal bond fund sector, where PIMCO consolidated two California municipal income funds into a single entity. Such reorganizations are common in the asset management industry, often aimed at streamlining operations, achieving economies of scale, or optimizing fund structures. For Bank of America, this represents a routine adjustment to its investment holdings following a client-initiated fund restructuring, rather than a strategic shift in its broader financial services or investment banking operations.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Termination of Arrangements | All voting arrangements and financing arrangements relating to the Remarketable Variable Rate Munifund Term Preferred Shares of PIMCO California Municipal Income Fund II have been terminated. | 2025-08-01 | This change is a direct consequence of the fund reorganization and the Reporting Persons ceasing beneficial ownership, simplifying the ownership structure and eliminating prior contractual obligations related to these specific shares. |
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 concerning their business conduct, with some resulting in findings of federal or state securities law violations. These are reported and summarized in the BofA Securities Form BD.
Stakeholder Impact
- Shareholders of PIMCO California Municipal Income Fund II (the Issuer) were impacted by the reorganization into PIMCO California Municipal Income Fund (PCQ), which led to the exchange of their shares. This filing specifically notes the impact on the Reporting Persons (Bank of America entities) who ceased their beneficial ownership in the Issuer.
Key Dates
| Date | Description |
|---|---|
| 2024-04-17 | Date of the Original Schedule 13D statement. |
| 2024-04-24 | Date the Original Schedule 13D was filed with the SEC. |
| 2024-11-20 | Date of the Limited Power of Attorney for Banc of America Preferred Funding Corporation. |
| 2025-05-05 | Date of the Limited Power of Attorney for Bank of America Corporation. |
| 2025-08-01 | Date of the Reorganization of PIMCO California Municipal Income Fund II and PIMCO California Municipal Income Fund III into PIMCO California Municipal Income Fund, and the date Reporting Persons ceased beneficial ownership. |
| 2025-08-05 | Date of the filing of this Amendment No. 2 to Schedule 13D. |
Keywords
Bank of America, PIMCO, Municipal Income Fund, Schedule 13D, Beneficial Ownership, Fund Reorganization, RVMTP Shares, Fixed Income, Investment Funds
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