| Schedule of Investments PIMCO Municipal Income Fund II | September 30, 2019 (Unaudited) |
(AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF SHARES, CONTRACTS AND UNITS, IF ANY)
| PRINCIPAL AMOUNT (000s) | MARKET VALUE (000s) | |||
| INVESTMENTS IN SECURITIES 184.1% ¤ | ||||
| MUNICIPAL BONDS & NOTES 182.0% | ||||
| ALABAMA 7.8% | ||||
| Alabama Federal Aid Highway Financing Authority Revenue Bonds, Series 2016 | ||||
| 5.000% due 09/01/2035 (d) | $ | 7,000 | $ | 8,462 |
| 5.000% due 09/01/2036 (d) | 7,000 | 8,445 | ||
| Alabama State Docks Department Revenue Bonds, Series 2010 6.000% due 10/01/2040 | 2,000 | 2,093 | ||
| Jefferson County, Alabama Sewer Revenue Bonds, Series 2013 | ||||
| 6.500% due 10/01/2053 | 18,000 | 21,696 | ||
| 7.900% due 10/01/2050 | 18,500 | 17,787 | ||
| Tuscaloosa County, Alabama Industrial Development Authority Revenue Bonds, Series 2019 | ||||
| 4.500% due 05/01/2032 | 1,000 | 1,119 | ||
| 5.250% due 05/01/2044 | 2,000 | 2,307 | ||
| 61,909 | ||||
| ARIZONA 7.0% | ||||
| Maricopa County, Arizona Industrial Development Authority Revenue Bonds, Series 2019 4.000% due 01/01/2044 | 1,000 | 1,116 | ||
| Pima County, Arizona Industrial Development Authority Revenue Bonds, Series 2010 5.250% due 10/01/2040 | 1,500 | 1,551 | ||
| Pinal County, Arizona Electric District No. 3, Revenue Bonds, Series 2011 | ||||
| 5.250% due 07/01/2036 | 1,750 | 1,870 | ||
| 5.250% due 07/01/2041 | 3,700 | 3,953 | ||
| Salt Verde Financial Corp., Arizona Revenue Bonds, Series 2007 | ||||
| 5.000% due 12/01/2032 | 12,430 | 16,166 | ||
| 5.000% due 12/01/2037 | 22,400 | 30,217 | ||
| 54,873 | ||||
| CALIFORNIA 12.0% | ||||
| Bay Area Toll Authority, California Revenue Bonds, Series 2010 5.000% due 10/01/2029 | 6,000 | 6,235 | ||
| Bay Area Toll Authority, California Revenue Bonds, Series 2013 5.250% due 04/01/2048 | 5,000 | 5,712 | ||
| Bay Area Toll Authority, California Revenue Bonds, Series 2014 5.000% due 10/01/2054 | 2,000 | 2,376 | ||
| California Health Facilities Financing Authority Revenue Bonds, Series 2010 | ||||
| 5.000% due 11/15/2036 | 1,500 | 1,507 | ||
| 8.039% due 11/15/2036 (e) | 5,000 | 5,421 | ||
| California Health Facilities Financing Authority Revenue Bonds, Series 2011 6.000% due 08/15/2042 | 3,000 | 3,125 | ||
| California Health Facilities Financing Authority Revenue Bonds, Series 2016 5.000% due 11/15/2046 (d) | 12,500 | 14,792 | ||
| California Municipal Finance Authority Revenue Bonds, Series 2011 7.750% due 04/01/2031 | 2,190 | 2,389 | ||
| California State General Obligation Bonds, Series 2010 | ||||
| 5.250% due 11/01/2040 | 5,945 | 6,182 | ||
| 5.500% due 03/01/2040 | 5,750 | 5,845 | ||
| California State General Obligation Bonds, Series 2019 5.000% due 04/01/2045 | 4,000 | 5,024 | ||
| California Statewide Communities Development Authority Revenue Bonds, Series 2010 5.000% due 11/01/2040 | 1,000 | 1,031 | ||
| California Statewide Communities Development Authority Revenue Bonds, Series 2011 | ||||
| 5.000% due 12/01/2041 | 1,000 | 1,069 | ||
| 6.000% due 08/15/2042 | 5,690 | 5,931 | ||
| California Statewide Communities Development Authority Revenue Notes, Series 2011 6.500% due 11/01/2021 | 340 | 359 | ||
| M-S-R Energy Authority, California Revenue Bonds, Series 2009 6.500% due 11/01/2039 | 1,750 | 2,754 | ||
| Morongo Band of Mission Indians, California Revenue Bonds, Series 2018 5.000% due 10/01/2042 | 1,250 | 1,414 | ||
| Newport Beach, California Revenue Bonds, Series 2011 5.875% due 12/01/2030 | 3,000 | 3,305 | ||
| San Marcos Unified School District, California General Obligation Bonds, Series 2011 5.000% due 08/01/2038 | 3,300 | 3,539 | ||
| Santa Monica Community College District, California General Obligation Bonds, Series 2018 4.000% due 08/01/2047 (d) | 10,375 | 11,739 |
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
| Torrance, California Revenue Bonds, Series 2010 5.000% due 09/01/2040 | 4,725 | 4,874 | ||
| 94,623 | ||||
| COLORADO 3.8% | ||||
| Aurora, Colorado Revenue Bonds, Series 2010 5.000% due 12/01/2040 | 5,800 | 5,925 | ||
| Board of Governors of Colorado State University System Revenue Bonds, Series 2017 4.000% due 03/01/2038 (d) | 2,000 | 2,280 | ||
| Colorado Health Facilities Authority Revenue Bonds, Series 2010 5.000% due 01/01/2040 | 6,045 | 6,100 | ||
| Colorado Health Facilities Authority Revenue Bonds, Series 2019 | ||||
| 4.000% due 11/15/2043 | 4,000 | 4,471 | ||
| 4.000% due 08/01/2044 | 4,000 | 4,333 | ||
| Colorado State Building Excellent School Certificates of Participation Bonds, Series 2018 4.000% due 03/15/2043 | 3,250 | 3,588 | ||
| Denver Health & Hospital Authority, Colorado Revenue Bonds, Series 2010 5.625% due 12/01/2040 | 1,000 | 1,049 | ||
| Public Authority for Colorado Energy Revenue Bonds, Series 2008 6.500% due 11/15/2038 | 1,430 | 2,184 | ||
| 29,930 | ||||
| CONNECTICUT 0.3% | ||||
| Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series 2011 5.000% due 07/01/2041 | 1,000 | 1,047 | ||
| Harbor Point Infrastructure Improvement District, Connecticut Tax Allocation Bonds, Series 2010 7.875% due 04/01/2039 | 1,250 | 1,291 | ||
| 2,338 | ||||
| DISTRICT OF COLUMBIA 0.8% | ||||
| District of Columbia General Obligation Bonds, Series 2019 5.000% due 10/15/2044 | 1,650 | 2,054 | ||
| District of Columbia Revenue Bonds, (NPFGC Insured), Series 2002 5.550% due 08/01/2037 | 3,850 | 3,912 | ||
| 5,966 | ||||
| FLORIDA 7.5% | ||||
| Broward County, Florida Airport System Revenue Bonds, Series 2009 5.375% due 10/01/2029 | 600 | 602 | ||
| Central Florida Expressway Authority Revenue Bonds, Series 2018 5.000% due 07/01/2043 | 2,865 | 3,498 | ||
| Clearwater, Florida Water & Sewer Revenue Bonds, Series 2009 5.250% due 12/01/2039 | 1,000 | 1,007 | ||
| Florida Development Finance Corp. Revenue Notes, Series 2011 6.500% due 06/15/2021 | 145 | 151 | ||
| Florida State General Obligation Bonds, Series 2018 4.000% due 07/01/2040 (d) | 10,155 | 11,611 | ||
| Florida's Turnpike Enterprise Revenue Bonds, Series 2018 4.000% due 07/01/2048 | 7,000 | 7,880 | ||
| Highlands County, Florida Health Facilities Authority Revenue Bonds, Series 2008 5.625% due 11/15/2037 | 3,000 | 3,016 | ||
| Miami-Dade County, Florida Water & Sewer System Revenue Bonds, Series 2019 | ||||
| 4.000% due 10/01/2048 | 5,000 | 5,596 | ||
| 5.000% due 10/01/2043 (d) | 6,315 | 7,776 | ||
| Orlando-Orange County, Florida Expressway Authority Revenue Bonds, Series 2010 5.000% due 07/01/2040 | 10,000 | 10,274 | ||
| Pasco County, Florida Water & Sewer Revenue Bonds, Series 2014 4.000% due 10/01/2044 | 2,500 | 2,694 | ||
| Putnam County Development Authority, Florida Revenue Bonds, Series 2018 5.000% due 03/15/2042 | 1,590 | 1,898 | ||
| South Miami Health Facilities Authority, Florida Revenue Bonds, Series 2017 5.000% due 08/15/2042 (d) | 3,000 | 3,557 | ||
| 59,560 | ||||
| GEORGIA 6.1% | ||||
| Atlanta Department of Aviation, Georgia Revenue Bonds, Series 2010 5.000% due 01/01/2040 | 1,500 | 1,513 | ||
| Atlanta Development Authority, Georgia Revenue Bonds, Series 2015 5.000% due 07/01/2044 | 3,895 | 4,451 | ||
| Atlanta Development Authority, Georgia Revenue Bonds, Series 2017 6.750% due 01/01/2035 | 7,500 | 8,057 | ||
| Fayette County, Georgia Hospital Authority Revenue Bonds, Series 2016 5.000% due 07/01/2046 (d) | 7,000 | 8,120 | ||
| Main Street Natural Gas, Inc., Georgia Revenue Bonds, Series 2019 5.000% due 05/15/2043 | 3,500 | 4,160 | ||
| Municipal Electric Authority of Georgia Revenue Bonds, Series 2015 5.000% due 07/01/2060 | 19,680 | 21,537 |
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
| 47,838 | ||||
| ILLINOIS 15.7% | ||||
| Chicago Board of Education, Illinois General Obligation Bonds, Series 2012 5.000% due 12/01/2042 | 8,000 | 8,457 | ||
| Chicago O'Hare International Airport, Illinois Revenue Bonds, Series 2018 4.000% due 01/01/2044 | 4,500 | 5,008 | ||
| Chicago, Illinois General Obligation Bonds, Series 2007 | ||||
| 5.500% due 01/01/2035 | 10,000 | 11,228 | ||
| 5.500% due 01/01/2042 | 1,250 | 1,389 | ||
| Chicago, Illinois General Obligation Bonds, Series 2015 | ||||
| 5.375% due 01/01/2029 | 14,100 | 15,981 | ||
| 5.500% due 01/01/2034 | 5,200 | 5,852 | ||
| Chicago, Illinois Motor Fuel Tax Revenue Bonds, (AGC Insured), Series 2008 5.000% due 01/01/2038 | 1,250 | 1,254 | ||
| Chicago, Illinois Revenue Bonds, Series 2002 5.000% due 01/01/2029 | 2,000 | 2,370 | ||
| Chicago, Illinois Special Assessment Bonds, Series 2003 | ||||
| 6.625% due 12/01/2022 | 1,352 | 1,355 | ||
| 6.750% due 12/01/2032 | 5,262 | 5,294 | ||
| Illinois Finance Authority Revenue Bonds, Series 2010 6.000% due 05/01/2028 | 2,000 | 2,054 | ||
| Illinois Finance Authority Revenue Bonds, Series 2013 4.000% due 08/15/2042 (d) | 6,000 | 6,287 | ||
| Illinois Finance Authority Revenue Bonds, Series 2017 | ||||
| 5.000% due 02/15/2037 | 2,155 | 2,133 | ||
| 5.250% due 12/01/2052 ^(b) | 2,800 | 980 | ||
| Illinois State General Obligation Bonds, Series 2017 5.000% due 11/01/2029 | 2,500 | 2,856 | ||
| Illinois State General Obligation Bonds, Series 2018 | ||||
| 4.625% due 05/01/2037 | 2,175 | 2,373 | ||
| 5.000% due 05/01/2041 | 1,500 | 1,690 | ||
| Illinois State General Obligation Notes, Series 2017 5.000% due 11/01/2027 | 15,000 | 17,179 | ||
| Illinois State Toll Highway Authority Revenue Bonds, Series 2016 5.000% due 01/01/2041 (d) | 12,500 | 14,610 | ||
| Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, (AGM Insured), Series 2010 0.000% due 06/15/2045 (c) | 10,000 | 4,133 | ||
| Metropolitan Pier & Exposition Authority, Illinois Revenue Bonds, Series 2012 0.000% due 12/15/2051 (c) | 5,000 | 1,468 | ||
| Regional Transportation Authority, Illinois Revenue Bonds, Series 2018 5.000% due 06/01/2038 (d) | 8,000 | 9,662 | ||
| 123,613 | ||||
| INDIANA 0.2% | ||||
| Indiana Health & Educational Facilities Financing Authority Revenue Bonds, Series 2006 4.000% due 11/15/2046 | 1,000 | 1,090 | ||
| Vigo County, Indiana Hospital Authority Revenue Bonds, Series 2011 7.500% due 09/01/2022 | 750 | 822 | ||
| 1,912 | ||||
| IOWA 1.5% | ||||
| Iowa Finance Authority Revenue Bonds, Series 2014 | ||||
| 2.000% due 05/15/2056 ^ | 144 | 2 | ||
| 5.400% due 11/15/2046 ^ | 746 | 801 | ||
| Iowa Tobacco Settlement Authority Revenue Bonds, Series 2005 5.600% due 06/01/2034 | 11,350 | 11,366 | ||
| 12,169 | ||||
| KANSAS 0.8% | ||||
| Kansas Development Finance Authority Revenue Bonds, Series 2009 5.750% due 11/15/2038 | 500 | 503 | ||
| University of Kansas Hospital Authority Revenue Bonds, Series 2015 4.000% due 09/01/2040 (d) | 5,500 | 5,930 | ||
| 6,433 | ||||
| KENTUCKY 0.1% | ||||
| Kentucky Economic Development Finance Authority Revenue Bonds, Series 2010 6.375% due 06/01/2040 | 1,000 | 1,033 | ||
| LOUISIANA 2.3% | ||||
| Louisiana Gasoline & Fuels Tax State Revenue Bonds, Series 2017 4.000% due 05/01/2045 (d) | 7,000 | 7,728 | ||
| Louisiana Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series 2010 | ||||
| 5.875% due 10/01/2040 | 750 | 784 | ||
| 6.000% due 10/01/2044 | 1,000 | 1,047 | ||
| 6.500% due 11/01/2035 | 450 | 473 | ||
| Louisiana Public Facilities Authority Revenue Bonds, Series 2011 6.500% due 05/15/2037 | 2,000 | 2,165 |
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
| Louisiana Public Facilities Authority Revenue Bonds, Series 2017 5.000% due 05/15/2046 | 5,000 | 5,789 | ||
| 17,986 | ||||
| MARYLAND 2.4% | ||||
| Baltimore County, Maryland General Obligation Bonds, Series 2018 4.000% due 03/01/2045 (d) | 8,000 | 8,974 | ||
| Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Series 2010 6.250% due 01/01/2041 | 1,400 | 1,484 | ||
| Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Series 2011 5.000% due 08/15/2041 | 2,380 | 2,512 | ||
| Maryland Stadium Authority Revenue Bonds, Series 2016 5.000% due 05/01/2041 | 5,000 | 5,878 | ||
| 18,848 | ||||
| MASSACHUSETTS 6.0% | ||||
| Commonwealth of Massachusetts General Obligation Bonds, Series 2018 4.000% due 05/01/2037 (d) | 9,000 | 10,272 | ||
| Massachusetts Development Finance Agency Revenue Bonds, Series 2010 | ||||
| 7.000% due 07/01/2042 | 1,000 | 1,042 | ||
| 7.625% due 10/15/2037 | 535 | 540 | ||
| Massachusetts Development Finance Agency Revenue Bonds, Series 2016 | ||||
| 4.000% due 10/01/2046 (d) | 5,200 | 5,659 | ||
| 5.000% due 01/01/2047 | 2,500 | 2,874 | ||
| Massachusetts Development Finance Agency Revenue Bonds, Series 2019 5.000% due 09/01/2059 | 6,000 | 7,161 | ||
| Massachusetts School Building Authority Revenue Bonds, Series 2012 5.250% due 02/15/2048 (d) | 7,500 | 9,278 | ||
| University of Massachusetts Building Authority, Revenue Bonds, Series 2013 4.000% due 11/01/2043 (d) | 10,000 | 10,615 | ||
| 47,441 | ||||
| MICHIGAN 4.8% | ||||
| Michigan Finance Authority Revenue Bonds, Series 2017 | ||||
| 4.000% due 12/01/2040 (d) | 7,000 | 7,758 | ||
| 5.000% due 12/01/2031 (d) | 2,600 | 3,195 | ||
| 5.000% due 12/01/2046 (d) | 5,100 | 6,030 | ||
| Michigan Finance Authority Revenue Bonds, Series 2019 | ||||
| 4.000% due 12/01/2048 | 4,000 | 4,381 | ||
| 4.000% due 02/15/2050 | 3,500 | 3,834 | ||
| Michigan Public Educational Facilities Authority Revenue Bonds, Series 2007 6.500% due 09/01/2037 ^(b) | 740 | 568 | ||
| Michigan State Hospital Finance Authority Revenue Bonds, Series 2016 4.000% due 11/15/2047 (d) | 10,000 | 10,886 | ||
| Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2008 0.000% due 06/01/2058 (c) | 25,000 | 869 | ||
| 37,521 | ||||
| MINNESOTA 0.5% | ||||
| Rochester, Minnesota Revenue Bonds, Series 2018 4.000% due 11/15/2048 | 3,750 | 4,220 | ||
| MISSISSIPPI 0.0% | ||||
| Mississippi Development Bank Revenue Bonds, (AMBAC Insured), Series 1999 5.000% due 07/01/2024 | 40 | 42 | ||
| MISSOURI 1.5% | ||||
| Health & Educational Facilities Authority of the State of Missouri Revenue Bonds, Series 2019 | ||||
| 4.000% due 02/15/2039 | 600 | 672 | ||
| 5.000% due 02/15/2035 | 500 | 623 | ||
| Missouri State Health & Educational Facilities Authority Revenue Bonds, Series 2013 5.000% due 11/15/2044 | 10,000 | 10,901 | ||
| 12,196 | ||||
| NEBRASKA 1.5% | ||||
| Omaha Public Power District, Nebraska Revenue Bonds, Series 2012 4.000% due 02/01/2046 (d) | 11,350 | 11,793 | ||
| 11,793 | ||||
| NEVADA 1.8% | ||||
| Clark County, Nevada General Obligation Bonds, Series 2018 | ||||
| 4.000% due 07/01/2044 (d) | 9,500 | 10,474 | ||
| 5.000% due 05/01/2048 | 1,295 | 1,568 | ||
| Reno, Nevada Revenue Bonds, Series 2018 0.000% due 07/01/2058 (c) | 24,000 | 2,252 |
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
| 14,294 | ||||
| NEW HAMPSHIRE 0.3% | ||||
| New Hampshire Business Finance Authority Revenue Bonds, Series 2009 6.125% due 10/01/2039 | 2,000 | 2,000 | ||
| NEW JERSEY 8.9% | ||||
| New Jersey Economic Development Authority Revenue Bonds, Series 2010 5.875% due 06/01/2042 | 2,000 | 2,061 | ||
| New Jersey Economic Development Authority Revenue Bonds, Series 2016 5.000% due 06/15/2041 | 5,000 | 5,657 | ||
| New Jersey Economic Development Authority Special Assessment Bonds, Series 2002 5.750% due 10/01/2021 | 2,185 | 2,282 | ||
| New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series 2011 6.000% due 07/01/2037 | 1,500 | 1,622 | ||
| New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series 2013 5.500% due 07/01/2043 | 4,000 | 4,522 | ||
| New Jersey Transportation Trust Fund Authority Revenue Bonds, (AGM Insured), Series 2006 0.000% due 12/15/2034 (c) | 2,500 | 1,617 | ||
| New Jersey Transportation Trust Fund Authority Revenue Bonds, Series 2018 5.000% due 12/15/2036 | 1,500 | 1,752 | ||
| New Jersey Transportation Trust Fund Authority Revenue Bonds, Series 2019 | ||||
| 5.000% due 06/15/2044 (a) | 3,500 | 4,010 | ||
| 5.250% due 06/15/2043 | 4,000 | 4,692 | ||
| New Jersey Turnpike Authority Revenue Bonds, Series 2017 5.000% due 01/01/2037 | 6,000 | 7,328 | ||
| New Jersey Turnpike Authority Revenue Bonds, Series 2019 | ||||
| 4.000% due 01/01/2048 | 5,000 | 5,594 | ||
| 5.000% due 01/01/2048 | 1,500 | 1,829 | ||
| South Jersey Port Corp., New Jersey Revenue Bonds, Series 2017 5.000% due 01/01/2049 | 1,010 | 1,167 | ||
| Tobacco Settlement Financing Corp., New Jersey Revenue Bonds, Series 2018 | ||||
| 5.000% due 06/01/2046 | 19,500 | 21,630 | ||
| 5.250% due 06/01/2046 | 4,200 | 4,854 | ||
| 70,617 | ||||
| NEW MEXICO 0.3% | ||||
| Farmington, New Mexico Revenue Bonds, Series 2010 5.900% due 06/01/2040 | 2,000 | 2,059 | ||
| NEW YORK 25.2% | ||||
| Hudson Yards Infrastructure Corp., New York Revenue Bonds, Series 2011 5.250% due 02/15/2047 | 33,500 | 35,258 | ||
| Metropolitan Transportation Authority, New York Revenue Bonds, (AGM Insured), Series 2019 4.000% due 11/15/2047 | 7,500 | 8,438 | ||
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2011 5.000% due 11/15/2036 | 3,880 | 4,199 | ||
| Metropolitan Transportation Authority, New York Revenue Bonds, Series 2017 4.000% due 11/15/2042 (d) | 10,000 | 11,089 | ||
| Nassau County, New York Industrial Development Agency Revenue Bonds, Series 2014 | ||||
| 2.000% due 01/01/2049 ^(b) | 298 | 48 | ||
| 6.700% due 01/01/2049 | 825 | 825 | ||
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2017 4.000% due 08/01/2042 (d) | 7,000 | 7,823 | ||
| New York City Transitional Finance Authority Future Tax Secured, New York Revenue Bonds, Series 2018 4.000% due 05/01/2043 (d) | 20,000 | 22,495 | ||
| New York City, New York General Obligation Bonds, Series 2018 5.000% due 12/01/2037 | 2,250 | 2,815 | ||
| New York City, New York Water & Sewer System Revenue Bonds, Series 2017 5.000% due 06/15/2048 (d) | 15,000 | 17,964 | ||
| New York Liberty Development Corp. Revenue Bonds, Series 2005 | ||||
| 5.250% due 10/01/2035 (d) | 1,505 | 8,936 | ||
| New York Liberty Development Corp. Revenue Bonds, Series 2010 | ||||
| 5.125% due 01/15/2044 | 1,000 | 1,011 | ||
| 5.625% due 07/15/2047 | 2,500 | 2,532 | ||
| 6.375% due 07/15/2049 | 1,250 | 1,268 | ||
| New York Liberty Development Corp. Revenue Bonds, Series 2011 | ||||
| 5.000% due 12/15/2041 | 10,000 | 10,796 | ||
| 5.750% due 11/15/2051 | 44,000 | 48,072 | ||
| New York Liberty Development Corp. Revenue Bonds, Series 2014 5.000% due 11/15/2044 | 4,250 | 4,702 | ||
| New York State Dormitory Authority Revenue Bonds, Series 2010 5.500% due 07/01/2040 | 1,750 | 1,805 | ||
| New York State Dormitory Authority Revenue Bonds, Series 2017 4.000% due 02/15/2047 (d) | 8,000 | 8,903 | ||
| 198,979 | ||||
| NORTH CAROLINA 0.4% | ||||
| North Carolina Turnpike Authority Revenue Bonds, Series 2018 4.000% due 01/01/2039 | 3,000 | 3,392 |
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
| NORTH DAKOTA 0.5% | ||||
| Stark County, North Dakota Revenue Bonds, Series 2007 6.750% due 01/01/2033 | 3,710 | 3,721 | ||
| OHIO 13.9% | ||||
| Buckeye Tobacco Settlement Financing Authority, Ohio Revenue Bonds, Series 2007 | ||||
| 5.125% due 06/01/2024 | 5,665 | 5,665 | ||
| 5.875% due 06/01/2047 | 29,400 | 29,529 | ||
| 6.250% due 06/01/2037 | 15,000 | 15,381 | ||
| 6.500% due 06/01/2047 | 19,400 | 19,916 | ||
| Geisinger Authority, Pennsylvania Revenue Bonds, Series 2017 4.000% due 02/15/2047 (d) | 20,580 | 22,376 | ||
| Hamilton County, Ohio Sales Tax Revenue Bonds, Series 2011 5.000% due 12/01/2030 | 3,900 | 4,185 | ||
| Ohio State Revenue Bonds, Series 2019 4.000% due 01/01/2040 | 1,500 | 1,699 | ||
| Ohio State Turnpike Commission Revenue Bonds, Series 2013 5.000% due 02/15/2048 | 10,000 | 11,002 | ||
| 109,753 | ||||
| OKLAHOMA 0.3% | ||||
| Oklahoma Development Finance Authority Revenue Bonds, Series 2018 5.500% due 08/15/2057 | 2,000 | 2,381 | ||
| PENNSYLVANIA 6.8% | ||||
| Berks County, Pennsylvania Municipal Authority Revenue Bonds, Series 2012 5.000% due 11/01/2044 | 7,500 | 8,001 | ||
| Luzerne County, Pennsylvania Industrial Development Authority Revenue Bonds, Series 2009 5.500% due 12/01/2039 | 500 | 503 | ||
| Montgomery County Industrial Development Authority, Pennsylvania Revenue Bonds, (FHA Insured), Series 2010 5.375% due 08/01/2038 | 8,465 | 8,755 | ||
| Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series 2010 | ||||
| 5.000% due 03/01/2040 | 400 | 406 | ||
| 6.000% due 07/01/2043 | 850 | 880 | ||
| Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series 2018 4.000% due 02/15/2043 | 4,800 | 5,391 | ||
| Pennsylvania State University Revenue Bonds, Series 2018 5.000% due 09/01/2043 (d) | 6,560 | 8,092 | ||
| Pennsylvania Turnpike Commission Revenue Bonds, Series 2013 5.000% due 12/01/2043 | 10,000 | 11,199 | ||
| Philadelphia Authority for Industrial Development, Pennsylvania Revenue Bonds, Series 2017 5.500% due 12/01/2058 | 1,000 | 1,067 | ||
| Philadelphia Hospitals & Higher Education Facilities Authority, Pennsylvania Revenue Bonds, Series 2012 | ||||
| 5.625% due 07/01/2036 | 1,000 | 1,092 | ||
| 5.625% due 07/01/2042 | 7,000 | 7,599 | ||
| Westmoreland County Industrial Development Authority, Pennsylvania Revenue Bonds, Series 2010 5.125% due 07/01/2030 | 1,000 | 1,022 | ||
| 54,007 | ||||
| PUERTO RICO 2.5% | ||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2018 | ||||
| 0.000% due 07/01/2046 (c) | 15,560 | 4,146 | ||
| 4.750% due 07/01/2053 | 5,235 | 5,444 | ||
| 5.000% due 07/01/2058 | 9,305 | 9,833 | ||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds, Series 2019 0.000% due 08/01/2042 (c) | 3,300 | 165 | ||
| 19,588 | ||||
| RHODE ISLAND 4.1% | ||||
| Narragansett Bay Commission, Rhode Island Revenue Bonds, Series 2013 4.000% due 09/01/2043 (d) | 12,000 | 12,568 | ||
| Tobacco Settlement Financing Corp., Rhode Island Revenue Bonds, Series 2015 5.000% due 06/01/2050 | 18,450 | 19,742 | ||
| 32,310 | ||||
| SOUTH CAROLINA 1.6% | ||||
| Greenwood County, South Carolina Revenue Bonds, Series 2009 5.375% due 10/01/2039 | 1,000 | 1,000 | ||
| South Carolina Public Service Authority Revenue Bonds, Series 2013 5.500% due 12/01/2053 | 10,000 | 11,298 | ||
| 12,298 | ||||
| TENNESSEE 2.6% | ||||
| Bristol Industrial Development Board, Tennessee Revenue Bonds, Series 2016 | ||||
| 0.000% due 12/01/2031 (c) | 3,975 | 2,124 | ||
| 5.125% due 12/01/2042 | 5,000 | 5,135 |
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
| Claiborne County, Tennessee Industrial Development Board Revenue Bonds, Series 2009 6.625% due 10/01/2039 | 1,750 | 1,756 | ||
| Johnson City Health & Educational Facilities Board, Tennessee Revenue Bonds, Series 2010 6.000% due 07/01/2038 | 1,000 | 1,035 | ||
| Tennessee Energy Acquisition Corp. Revenue Bonds, Series 2006 5.000% due 02/01/2023 | 3,000 | 3,297 | ||
| Tennessee Energy Acquisition Corp., Revenue Bonds, Series 2006 5.000% due 02/01/2027 | 6,000 | 7,135 | ||
| 20,482 | ||||
| TEXAS 20.4% | ||||
| Clifton Higher Education Finance Corp., Texas Revenue Bonds, Series 2018 6.125% due 08/15/2048 | 1,750 | 1,961 | ||
| Dallas, Texas Civic Center Revenue Bonds, (AGC Insured), Series 2009 5.250% due 08/15/2038 | 2,500 | 2,507 | ||
| Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2013 5.000% due 04/01/2053 | 21,000 | 23,433 | ||
| Grand Parkway Transportation Corp., Texas Revenue Bonds, Series 2018 5.000% due 10/01/2048 (d) | 7,500 | 9,022 | ||
| Harris County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series 2009 | ||||
| 5.250% due 10/01/2029 | 3,750 | 3,750 | ||
| 5.500% due 10/01/2039 | 12,700 | 12,700 | ||
| Houston Community College System, Texas General Obligation Bonds, Series 2013 4.000% due 02/15/2043 (d) | 10,000 | 10,575 | ||
| New Hope Cultural Education Facilities Finance Corp., Texas Revenue Bonds, Series 2017 | ||||
| 4.000% due 08/15/2034 (d) | 700 | 787 | ||
| 4.000% due 08/15/2035 (d) | 1,400 | 1,569 | ||
| 4.000% due 08/15/2036 (d) | 1,330 | 1,487 | ||
| 4.000% due 08/15/2037 (d) | 1,620 | 1,805 | ||
| 4.000% due 08/15/2040 (d) | 1,800 | 1,991 | ||
| North Texas Tollway Authority Revenue Bonds, Series 2011 | ||||
| 5.000% due 01/01/2038 | 5,750 | 6,001 | ||
| 5.500% due 09/01/2041 | 1,300 | 1,402 | ||
| North Texas Tollway Authority Revenue Bonds, Series 2017 | ||||
| 4.000% due 01/01/2043 | 3,590 | 4,004 | ||
| 5.000% due 01/01/2048 | 3,500 | 4,120 | ||
| North Texas Tollway Authority Revenue Bonds, Series 2018 5.000% due 01/01/2048 | 1,000 | 1,192 | ||
| San Antonio Public Facilities Corp., Texas Revenue Bonds, Series 2012 4.000% due 09/15/2042 (d) | 10,000 | 10,495 | ||
| San Jacinto College District, Texas General Obligation Bonds, Series 2019 5.000% due 02/15/2044 | 1,010 | 1,238 | ||
| San Juan Higher Education Finance Authority, Texas Revenue Bonds, Series 2010 6.700% due 08/15/2040 | 250 | 261 | ||
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series 2016 4.000% due 02/15/2047 (d) | 13,600 | 14,758 | ||
| Tarrant County, Texas Cultural Education Facilities Finance Corp. Revenue Bonds, Series 2017 6.750% due 11/15/2047 | 1,000 | 1,153 | ||
| Texas Municipal Gas Acquisition & Supply Corp. Revenue Bonds, Series 2008 6.250% due 12/15/2026 | 18,015 | 21,025 | ||
| Texas State University System Revenue Bonds, Series 2018 4.100% due 03/15/2039 (d) | 6,800 | 7,122 | ||
| Texas Water Development Board Revenue Bonds, Series 2018 4.000% due 10/15/2038 (d) | 10,000 | 11,371 | ||
| Texas Water Development Board Revenue Bonds, Series 2019 4.000% due 10/15/2038 (a) | 4,000 | 4,617 | ||
| Wise County, Texas Revenue Bonds, Series 2011 8.000% due 08/15/2034 | 1,000 | 1,080 | ||
| 161,426 | ||||
| UTAH 0.4% | ||||
| Utah County, Utah Revenue Bonds, Series 2018 4.000% due 05/15/2041 (d) | 3,000 | 3,360 | ||
| 3,360 | ||||
| VIRGINIA 2.9% | ||||
| Fairfax County, Virginia Industrial Development Authority Revenue Bonds, Series 2018 4.000% due 05/15/2048 | 1,000 | 1,108 | ||
| James City County, Virginia Economic Development Authority Revenue Bonds, Series 2013 | ||||
| 2.000% due 10/01/2048 ^(b) | 412 | 36 | ||
| 6.000% due 06/01/2043 | 1,252 | 1,257 | ||
| University of Virginia Revenue Bonds, Series 2018 4.000% due 08/01/2048 (d) | 10,000 | 11,267 | ||
| Virginia Commonwealth Transportation Board Revenue Bonds, Series 2018 4.000% due 05/15/2041 (d) | 8,200 | 9,321 | ||
| 22,989 | ||||
| WASHINGTON 1.8% | ||||
| Seattle, Washington Municipal Light and Power Revenue Bonds, Series 2018 4.000% due 01/01/2041 (d) | 7,735 | 8,646 |
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
| Snohomish County, Washington Housing Authority Revenue Bonds, Series 2019 4.000% due 04/01/2044 | 2,000 | 2,161 | ||
| Washington State Convention Center Public Facilities District Revenue Bonds, Series 2018 5.000% due 07/01/2058 | 2,750 | 3,265 | ||
| 14,072 | ||||
| WEST VIRGINIA 0.8% | ||||
| Monongalia County, West Virginia Commission Special District Revenue Bonds, Series 2017 5.500% due 06/01/2037 | 2,000 | 2,206 | ||
| West Virginia Economic Development Authority Revenue Bonds, Series 2010 5.375% due 12/01/2038 | 2,000 | 2,080 | ||
| West Virginia Economic Development Authority Revenue Bonds, Series 2017 4.000% due 06/15/2040 (d) | 2,000 | 2,218 | ||
| 6,504 | ||||
| WISCONSIN 3.9% | ||||
| Public Finance Authority, Wisconsin Revenue Bonds, Series 2017 7.000% due 01/01/2050 | 4,500 | 5,584 | ||
| Public Finance Authority, Wisconsin Revenue Bonds, Series 2018 | ||||
| 6.375% due 01/01/2048 | 4,000 | 4,235 | ||
| 7.000% due 07/01/2048 | 1,000 | 1,084 | ||
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2016 4.000% due 11/15/2046 (d) | 2,500 | 16,891 | ||
| Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series 2017 4.000% due 08/15/2042 (d) | 3,000 | 3,278 | ||
| 31,072 | ||||
| Total Municipal Bonds & Notes (Cost $1,314,305) | 1,437,548 | |||
| SHORT-TERM INSTRUMENTS 2.1% | ||||
| REPURCHASE AGREEMENTS (f) 2.1% | 16,684 | |||
| Total Short-Term Instruments (Cost $16,684) | 16,684 | |||
| Total Investments in Securities (Cost $1,330,989) | 1,454,232 | |||
| Total Investments 184.1% (Cost $1,330,989) | $ | 1,454,232 | ||
| Auction Rate Preferred Shares (37.8)% | (298,275) | |||
| Variable Rate MuniFund Term Preferred Shares, at liquidation value (8.6)% | (68,414) | |||
| Other Assets and Liabilities, net (37.7)% | (297,575) | |||
| Net Assets Applicable to Common Shareholders 100.0% | $ | 789,968 |
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
NOTES TO SCHEDULE OF INVESTMENTS:
* A zero balance may reflect actual amounts rounding to less than one thousand.
| ¤ | The geographical classification of foreign (non-U.S.) securities in this report, if any, are classified by the country of incorporation of a holding. In certain instances, a security's country of incorporation may be different from its country of economic exposure. |
| ^ | Security is in default. |
| (a) | When-issued security. |
| (b) | Security is not accruing income as of the date of this report. |
| (c) | Zero coupon security. |
| (d) | Represents an underlying municipal bond transferred to a tender option bond trust established in a tender option bond transaction in which the Fund sold, or caused the sale of, the underlying municipal bond and purchased the residual interest certificate. The security serves as collateral in a financing transaction. |
| (e) | Represents an investment in a tender option bond residual interest certificate purchased in a secondary market transaction. The interest rate shown bears an inverse relationship to the interest rate on a tender option bond floating rate certificate. The interest rate disclosed reflects the rate in effect on September 30, 2019. |
| BORROWINGS AND OTHER FINANCING TRANSACTIONS | |
| (f) | REPURCHASE AGREEMENTS: |
| Counterparty | Lending Rate | Settlement Date | Maturity Date | Principal Amount | Collateralized By | Collateral (Received) | Repurchase Agreements, at Value | Repurchase Agreement Proceeds to be Received(1) | |||||||
| FICC | 1.500% | 09/30/2019 | 10/01/2019 | $ | 16,684 | U.S. Treasury Notes 2.250% due 03/31/2021 | $ | (17,021) | $ | 16,684 | $ | 16,685 | |||
| Total Repurchase Agreements | $ | (17,021) | $ | 16,684 | $ | 16,685 | |||||||||
| (1) | Includes accrued interest. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of September 30, 2019 in valuing the Fund's assets and liabilities:
| Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 09/30/2019 | |||||
| Investments in Securities, at Value | |||||||||
| Municipal Bonds & Notes | |||||||||
| Alabama | $ | 0 | $ | 61,909 | $ | 0 | $ | 61,909 | |
| Arizona | 0 | 54,873 | 0 | 54,873 | |||||
| California | 0 | 94,623 | 0 | 94,623 | |||||
| Colorado | 0 | 29,930 | 0 | 29,930 | |||||
| Connecticut | 0 | 2,338 | 0 | 2,338 | |||||
| District of Columbia | 0 | 5,966 | 0 | 5,966 | |||||
| Florida | 0 | 59,560 | 0 | 59,560 | |||||
| Georgia | 0 | 47,838 | 0 | 47,838 | |||||
| Illinois | 0 | 123,613 | 0 | 123,613 | |||||
| Indiana | 0 | 1,912 | 0 | 1,912 | |||||
| Iowa | 0 | 12,169 | 0 | 12,169 | |||||
| Kansas | 0 | 6,433 | 0 | 6,433 | |||||
| Kentucky | 0 | 1,033 | 0 | 1,033 | |||||
| Louisiana | 0 | 17,986 | 0 | 17,986 | |||||
| Maryland | 0 | 18,848 | 0 | 18,848 | |||||
| Massachusetts | 0 | 47,441 | 0 | 47,441 | |||||
| Michigan | 0 | 37,521 | 0 | 37,521 | |||||
| Minnesota | 0 | 4,220 | 0 | 4,220 | |||||
| Mississippi | 0 | 42 | 0 | 42 | |||||
| Missouri | 0 | 12,196 | 0 | 12,196 | |||||
| Nebraska | 0 | 11,793 | 0 | 11,793 | |||||
| Nevada | 0 | 14,294 | 0 | 14,294 | |||||
| New Hampshire | 0 | 2,000 | 0 | 2,000 | |||||
| New Jersey | 0 | 70,617 | 0 | 70,617 | |||||
| New Mexico | 0 | 2,059 | 0 | 2,059 | |||||
| New York | 0 | 198,979 | 0 | 198,979 | |||||
| North Carolina | 0 | 3,392 | 0 | 3,392 | |||||
| North Dakota | 0 | 3,721 | 0 | 3,721 | |||||
| Ohio | 0 | 109,753 | 0 | 109,753 | |||||
| Oklahoma | 0 | 2,381 | 0 | 2,381 | |||||
| Pennsylvania | 0 | 54,007 | 0 | 54,007 | |||||
| Puerto Rico | 0 | 19,588 | 0 | 19,588 | |||||
| Rhode Island | 0 | 32,310 | 0 | 32,310 | |||||
| South Carolina | 0 | 12,298 | 0 | 12,298 | |||||
| Tennessee | 0 | 20,482 | 0 | 20,482 | |||||
| Texas | 0 | 161,426 | 0 | 161,426 | |||||
| Utah | 0 | 3,360 | 0 | 3,360 | |||||
| Virginia | 0 | 22,989 | 0 | 22,989 | |||||
| Washington | 0 | 14,072 | 0 | 14,072 | |||||
| West Virginia | 0 | 6,504 | 0 | 6,504 | |||||
| Schedule of Investments PIMCO Municipal Income Fund II (Cont.) | September 30, 2019 (Unaudited) |
| Wisconsin | 0 | 31,072 | 0 | 31,072 | |||||
| Short-Term Instruments | |||||||||
| Repurchase Agreements | 0 | 16,684 | 0 | 16,684 | |||||
| Total Investments | $ | 0 | $ | 1,454,232 | $ | 0 | $ | 1,454,232 | |
There were no significant transfers into or out of Level 3 during the period ended September 30, 2019.
Notes to Financial Statements
1. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The net asset value (“NAV”) of the Fund's shares, is determined by dividing the total value of portfolio investments and other assets attributable to the Fund, less any liabilities, by the total number of shares outstanding of the Fund.
On each day that the New York Stock Exchange (“NYSE”) is open, Fund shares are ordinarily valued as of the close of regular trading (normally 4:00 p.m., Eastern time) (“NYSE Close”). Information that becomes known to the Fund or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Fund reserves the right to change the time as of which its NAV is calculated if the Fund closes earlier, or as permitted by the U.S. Securities and Exchange Commission (“SEC”).
For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Fund's approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Fund will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by Pacific Investment Management Company LLC (“PIMCO” or the “Manager”) to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Fund's investments in open-end management investment companies, other than exchange-traded funds ("ETFs"), are valued at the NAVs of such investments.
Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to PIMCO the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Fund's securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Manager, the responsibility for monitoring significant events that may materially affect the values of the Fund's securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.
When the Fund uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Fund’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing, the Fund cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold.
(b) Fair Value HierarchyU.S. GAAP describes fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:
• Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.
• Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.
• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.
In accordance with the requirements of U.S. GAAP, the amounts of transfersinto and out of Level 3, if material, are disclosed in the Notes toSchedule of Investmentsfor the Fund.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Fund's assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Fund.
(c) Valuation Techniques and the Fair Value Hierarchy
Notes to Financial Statements(Cont.)
Level 1 and Level 2 trading assets and trading liabilities, at fair valueThe valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:
Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services' internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.
Level 3 trading assets and trading liabilities, at fair valueWhen a fair valuation method is applied by PIMCO that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.
Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.
2. FEDERAL INCOME TAX MATTERS
The Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.
The Fund may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.
In accordance with U.S. GAAP, the Manager has reviewed the Fund’s tax positions for all open tax years. As of September 30, 2019, the Fund has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.
The Fund files U.S. federal, state, and local tax returns as required. The Fund’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
| Glossary: (abbreviations that may be used in the preceding statements) | (Unaudited) |
| Counterparty Abbreviations: | ||||||||||
| FICC | Fixed Income Clearing Corporation | |||||||||
| Currency Abbreviations: | ||||||||||
| USD (or $) | United States Dollar | |||||||||
| Municipal Bond or Agency Abbreviations: | ||||||||||
| AGC | Assured Guaranty Corp. | AMBAC | American Municipal Bond Assurance Corp. | NPFGC | National Public Finance Guarantee Corp. | |||||
| AGM | Assured Guaranty Municipal | FHA | Federal Housing Administration | |||||||
| Other Abbreviations: | ||||||||||
| TBA | To-Be-Announced | |||||||||
