SCHEDULE: Bank of America Boosts PIMCO Fund II Preferred Stake to 83.7%

Bank of America Corporation and Banc of America Preferred Funding Corporation increased their beneficial ownership percentage in PIMCO Municipal Income Fund II's preferred shares to 83.7% due to a decrease in outstanding shares.

Summary

• Bank of America Corporation and Banc of America Preferred Funding Corporation (Reporting Persons) filed Amendment No. 4 to their Schedule 13D.
• The amendment reports a change in the percentage of remarketable variable rate munifund term preferred shares (RVMTP Shares) beneficially owned in PIMCO Municipal Income Fund II.
• The change is solely due to a decrease in the total outstanding shares of the preferred class of the Issuer to 6,108 shares.
• As a result, the Reporting Persons' beneficial ownership percentage increased to 83.7%, while their absolute number of beneficially owned shares remains 5,110.
• The event requiring this filing occurred on March 10, 2026.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, primarily a regulatory update reflecting a mathematical change in ownership percentage due to a reduction in the issuer's outstanding preferred shares, rather than a strategic move by the reporting entity.

Positives

• The Reporting Persons' percentage of beneficial ownership in PIMCO Municipal Income Fund II's preferred shares increased to 83.7%.
• This indicates a consolidated position for Bank of America and its subsidiary in this specific class of securities.

Negatives

• The decrease in outstanding shares of the preferred class to 6,108 shares could imply redemptions or other actions that reduce the overall size of this class of securities.

Future Outlook

This filing does not contain forward-looking statements or guidance, as it is a factual report of a change in ownership percentage.

Management Comments

• This Amendment is being filed solely to report a change of the percent of class beneficially owned by the Reporting Persons due to the outstanding shares of the preferred class of the Issuer decreasing to 6,108 shares as reported by the Issuer to the Reporting Persons on March 10, 2026.

Industry Context

StockSavvy.ai notes that Schedule 13D filings are standard for reporting significant ownership stakes. This amendment specifically highlights a change in percentage due to a reduction in the total outstanding shares of a specific preferred class, rather than an active acquisition by the reporting entity. This could reflect a strategic decision by PIMCO Municipal Income Fund II to reduce its preferred share base, which in turn concentrates existing ownership.

Comparison to Industry Standards

• This filing is a routine update for a Schedule 13D, which is a standard regulatory requirement when beneficial ownership of a class of securities exceeds 5% and there's a material change.
• The increase in percentage ownership for Bank of America and its subsidiary is a mathematical consequence of the issuer's reduction in outstanding preferred shares, rather than an active market purchase by the reporting entity. This differs from typical 13D filings where an investor actively acquires more shares to increase their stake.

Stakeholder Impact

• Shareholders (of PIMCO Municipal Income Fund II): The reduction in outstanding preferred shares could potentially impact the liquidity or trading dynamics of that specific class of shares.
• Bank of America Corporation: Their percentage ownership in this specific class of preferred shares has increased, consolidating their influence over this particular security.

Key Dates

Recommendation

This filing is a routine regulatory update reporting a change in beneficial ownership percentage due to a reduction in the issuer's outstanding preferred shares, not an active investment decision by the reporting entity. It provides no new fundamental information about the issuer or the reporting entity that would warrant a change in investment recommendation. Therefore, a "hold" recommendation is appropriate as it maintains the current position without suggesting new action based solely on this administrative update.

Keywords

PIMCO Municipal Income Fund II, Bank of America Corporation, Banc of America Preferred Funding Corp, Schedule 13D/A, Preferred Shares, RVMTP Shares, Beneficial Ownership, SEC Filing, Fixed Income, Municipal Bonds