SCHEDULE: JPMorgan Discloses 11.3% Stake in PIMCO NY Muni Fund II

JPMorgan Chase Bank, National Association, reported an 11.30% beneficial ownership in PIMCO New York Municipal Income Fund II's preferred shares following a fund reorganization.

Summary

• JPMorgan Chase Bank, National Association (JPM) beneficially owns 149 Remarketable Variable Rate MuniFund Term Preferred Shares of PIMCO New York Municipal Income Fund II.
• This ownership represents 11.30% of the class of preferred shares outstanding.
• The filing is an amendment due to the reorganization of PIMCO New York Municipal Income Fund and PIMCO New York Municipal Income Fund III into the Issuer on August 1, 2025.
• JPM acquired the 149 VMTP Shares from the issuer on June 12, 2024.
• On June 27, 2024, JPM deposited 100% of these shares into a tender option bond trust (TOB), the J.P. Morgan Putters/Drivers, Series 5061 Trust.
• JPM assigned certain preferred class voting rights on the RVMTP Shares to a Voting Trust on June 12, 2024, which utilizes a Voting Consultant (Institutional Shareholder Services Inc.) and a Voting Trustee (Lord Securities Corporation).
• JPM retains voting rights not assigned to the Voting Trust and sole dispositive power over the shares.

Sentiment

Score: 5

Explanation: This is a routine Schedule 13G filing disclosing beneficial ownership by a large financial institution following a fund reorganization. It contains no performance data or strategic announcements that would significantly alter sentiment, thus remaining neutral.

Positives

• JPMorgan Chase Bank, National Association holds a significant 11.30% stake in the preferred shares, indicating substantial institutional interest and backing.

Negatives

• NA

Risks

• NA

Future Outlook

The filing primarily reports on a past event, specifically the reorganization of PIMCO New York Municipal Income Fund and PIMCO New York Municipal Income Fund III into the Issuer on August 1, 2025, and the subsequent change in JPMorgan Chase Bank, National Association's ownership percentage. It does not provide forward-looking statements or guidance from the issuer or the reporting person regarding future performance or strategic direction.

Management Comments

• NA

Industry Context

This filing reflects a common practice in the municipal bond fund industry where large financial institutions like JPMorgan Chase Bank, National Association, hold significant stakes in preferred shares, often for structuring purposes such as Tender Option Bonds (TOBs) or for investment. The reorganization of PIMCO funds is also a typical strategy employed by asset managers to optimize fund structures or consolidate assets.

Comparison to Industry Standards

• The beneficial ownership of 11.30% by a major bank like JPMorgan Chase is a standard practice for institutional investors in closed-end funds, particularly for preferred shares which can be used in structured products like Tender Option Bonds (TOBs).
• The use of a Voting Trust with an independent Voting Consultant (Institutional Shareholder Services Inc.) is a common governance mechanism to manage potential conflicts of interest or ensure independent voting decisions for large institutional holdings.
• The reorganization of municipal income funds, such as PIMCO New York Municipal Income Fund and PIMCO New York Municipal Income Fund III into PIMCO New York Municipal Income Fund II, is a typical strategy employed by asset managers like PIMCO to streamline fund offerings, achieve economies of scale, or adapt to market conditions.

Management Changes

Corporate Governance

Legal Proceedings

• NA

Related Party Transactions

• NA

Stakeholder Impact

• Shareholders: The reorganization could impact existing shareholders of PIMCO New York Municipal Income Fund and PIMCO New York Municipal Income Fund III, leading to their shares being converted into PIMCO New York Municipal Income Fund II. The 11.30% institutional ownership by JPMorgan Chase Bank, National Association, provides a degree of stability and institutional backing for the preferred shares.

Next Steps

• NA

Key Dates

Keywords

PIMCO New York Municipal Income Fund II, JPMorgan Chase Bank, Schedule 13G, Preferred Shares, Municipal Bonds, Investment Fund, Tender Option Bond Trust, Voting Trust, Institutional Ownership