SCHEDULE: Bank of America Exits PIMCO Muni Fund III Stake

Bank of America Corporation and its affiliate have ceased beneficial ownership of PIMCO Municipal Income Fund III preferred shares following a fund reorganization.

Summary

• Bank of America Corporation (BAC) and Banc of America Preferred Funding Corporation (BAPFC), collectively the Reporting Persons, filed an Amendment No. 2 to their Schedule 13D.
• The amendment reports that the Reporting Persons no longer beneficially own any Remarketable Variable Rate Munifund Term Preferred (RVMTP) Shares of PIMCO Municipal Income Fund III (the Issuer).
• This change resulted from a reorganization on August 1, 2025, where the Issuer and PIMCO Municipal Income Fund (PMF) were reorganized into PIMCO Municipal Income Fund II (PML).
• In connection with the reorganization, BAPFC exchanged 1,240 RVMTP Shares of the Issuer (CUSIP No. 72201A889) for an equal number of RVMTP Shares of PML (CUSIP No. 72200W882).
• As of August 1, 2025, the Reporting Persons ceased to be beneficial owners of more than five percent of the class of securities of PIMCO Municipal Income Fund III, holding 0.00 shares, representing 0% of the class.

Sentiment

Score: 5

Explanation: The filing is purely factual and procedural, reporting a completed and expected change in beneficial ownership due to a fund reorganization. It contains no performance metrics or forward-looking statements that would indicate a positive or negative sentiment.

Risks

• Bank of America Corporation and its affiliates, including BofA Securities, Inc., have been involved in civil proceedings and regulatory actions concerning their business conduct.
• Certain proceedings have resulted in findings of violations of federal or state securities laws, as reported and summarized in BofA Securities Form BD.

Future Outlook

The reorganization of PIMCO Municipal Income Fund III into PIMCO Municipal Income Fund II, which led to the cessation of beneficial ownership by the Reporting Persons, has been completed as of August 1, 2025.

Industry Context

Reorganizations of municipal income funds are a common practice in the asset management industry, often undertaken to optimize fund structures, consolidate assets, or enhance operational efficiency. This specific event reflects a portfolio adjustment by Bank of America's affiliate in response to such a fund restructuring.

Corporate Governance

Legal Proceedings

• Bank of America Corporation and certain affiliates, including BofA Securities, Inc., have been involved in civil proceedings and regulatory actions related to their business conduct.
• Some of these proceedings have resulted in findings of violations of federal or state securities laws, as detailed in BofA Securities Form BD.

Stakeholder Impact

• For shareholders of PIMCO Municipal Income Fund III, the reorganization means their shares were exchanged for shares in PIMCO Municipal Income Fund II, indicating a change in the underlying fund structure rather than a divestment without an equivalent exchange.
• For Bank of America Corporation and Banc of America Preferred Funding Corporation, this represents a portfolio adjustment following a strategic fund reorganization, with no immediate material impact on their overall operations or financial health disclosed.

Key Dates

Keywords

PIMCO, Municipal Income Fund, Bank of America, Schedule 13D, RVMTP Shares, Preferred Stock, Fund Reorganization, Beneficial Ownership, SEC Filing