Form 4: Wells Fargo Disposes of Remarketable Variable Rate MuniFund Term Preferred Shares in PIMCO California Municipal Income Fund II

Wells Fargo & Company, through its subsidiary Wells Fargo Municipal Capital Strategies, LLC, disposed of 275 Remarketable Variable Rate MuniFund Term Preferred Shares (RVMTP Shares) of PIMCO California Municipal Income Fund II due to a redemption by the issuer.

Summary

• Wells Fargo & Company, along with its subsidiary Wells Fargo Municipal Capital Strategies, LLC, filed a Form 4 regarding changes in beneficial ownership of PIMCO California Municipal Income Fund II shares.
• On June 12, 2024, Wells Fargo Municipal Capital Strategies, LLC disposed of 275 Remarketable Variable Rate MuniFund Term Preferred Shares (RVMTP Shares) of Series 2051 (CUSIP No. 72200M702).
• The shares were disposed of due to a redemption by the issuer at a price of $100,120.9289 per share, which includes a liquidation preference of $100,000.00 and accrued dividends of $120.9289.
• Following the transaction, Wells Fargo indirectly owns 292 RVMTP Shares through its subsidiary.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing a transaction. It doesn't convey any strong positive or negative sentiment.

Industry Context

This filing reflects activity in the municipal bond market, specifically related to preferred shares of a closed-end fund. Redemptions are a normal part of fund management and can be driven by various factors, including market conditions and fund strategy.

Comparison to Industry Standards

• Wells Fargo's activity is typical for financial institutions managing large portfolios of municipal securities.
• Other firms like BlackRock, Nuveen, and Franklin Templeton also actively manage their holdings in similar municipal income funds.
• Redemption prices are generally determined by the terms outlined in the security's offering documents, ensuring fair value for shareholders.

Stakeholder Impact

• The redemption may have a minor impact on the fund's asset size and potentially its investment strategy.
• Shareholders may experience a slight change in the fund's composition due to the redemption of the preferred shares.

Key Dates