UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10379
PIMCO California Municipal Income Fund
(Exact name of registrant as specified in charter)
1633 Broadway, New York, NY 10019
(Address of principal executive offices) (Zip code)
Lawrence G. Altadonna 1633 Broadway, New York, NY 10019
(Name and address of agent for service)
Registrants telephone number, including area code: 212-739-3371
Date of fiscal year end: April 30, 2013
Date of reporting period: April 30, 2013
Item 1. REPORT TO SHAREHOLDERS
PIMCO Municipal Income Fund
PIMCO California Municipal Income Fund
PIMCO New York Municipal Income Fund
Annual Report
April 30, 2013
Contents
and President & CEO
Hans W. Kertess
Chairman of the Board of Trustees
Brian S. Shlissel
President & Chief Executive Officer
Dear Shareholder:
Despite periodic setbacks, the municipal bond market generated solid results during the fiscal 12-month reporting period ended April 30, 2013. In particular, longer-term, lower credit municipals were particularly favorable during the period as investors were drawn to higher yielding securities.
For the fiscal 12-month period ended April 30, 2013:
n | PIMCO Municipal Income Fund advanced 14.26% on net asset value (NAV) and 11.96% on market price. |
n | PIMCO California Municipal Income Fund rose 14.11% on NAV and 9.96% on market price. |
n | PIMCO New York Municipal Income Fund increased 12.07% on NAV and 12.96% on market price. |
Twelve Months in Review
The US economy continued to grow during the fiscal 12-month reporting period; however, the pace of the expansion was far from robust. Gross domestic product (GDP), the value of goods and services produced in the country, the broadest measure of US economic activity and the principal indicator of economic performance, grew at an annual pace of 1.3% during the second quarter of 2012. GDP growth accelerated to a 3.1% annual pace during the third quarter, before decelerating to a 0.4% annual pace during the fourth quarter of the 2012. GDP growth rebounded to a 2.5% annual rate (preliminary estimate) during the first quarter of 2013.
The Federal Reserve (the Fed) initiated a number of actions to support the economy and reduce unemployment. In September 2012, the Fed introduced a
third round of quantitative easing which entailed the purchase of $40 billion of mortgage securities each month. As 2012 drew to a close, the Fed revealed that it would continue purchasing $40 billion of mortgage securities each month in addition to purchasing $45 billion per month of longer-term Treasuries on an open-ended basis. At its meeting in December, the Fed said that it expected to keep the Fed Funds rate in the 0.0% to 0.25% range as long as the unemployment rate remains above 6.5%.
Yields on US Treasury bonds trended lower during the 12-months ended April 30, 2013. The benchmark ten-year Treasury bond commenced the fiscal period yielding 1.95% and ended the period at 1.70%. In July 2012, the yield on the benchmark 10-year Treasury bond fell to 1.43%, a record low. This downward trend reflected a variety of concerns, including Europes ongoing sovereign debt crisis, uncertainties regarding fiscal policy and decelerating global economic growth.
Overall, the municipal bond market was aided by solid demand and attractive yields. With the economy continuing to expand, tax revenues increased, supporting many municipalities and helping to improve their fiscal situations. In addition, many municipalities took actions to reduce expenditures and address pension funding issues.
2 | April 30, 2013 | | Annual Report |
Outlook
remains to be seen. Given this uncertainty and continued high unemployment, we expect the Fed will maintain an accommodative monetary stance.
For specific information on the Funds and their performance, please review the following pages. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds shareholder servicing agent at (800) 254-5197. In addition, a wide range of information and resources is available on our website, us.allianzgi.com/closedendfunds.
Together with Allianz Global Investors Fund Management LLC, the Funds investment manager, and Pacific Investment Management Company LLC (PIMCO), the Funds sub-adviser, we thank you for investing with us.
We remain dedicated to serving your investment needs.
Sincerely,
![]() |
![]() | |
Hans W. Kertess | Brian S. Shlissel | |
Chairman of the Board of Trustees | President & Chief Executive Officer |
Annual Report | | April 30, 2013 | 3 |
PIMCO Municipal Income Fund
PIMCO California Municipal Income Fund
PIMCO New York Municipal Income Fund
4 | April 30, 2013 | | Annual Report |
PIMCO Municipal Income Funds
April 30, 2013 (unaudited)
Municipal Income: Total Return(1): |
Market Price | NAV | ||||||
1 Year |
11.96% | 14.26% | ||||||
5 Year |
7.29% | 10.16% | ||||||
10 Year |
8.59% | 7.72% | ||||||
Commencement of Operations (6/29/01) to 4/30/13 |
7.81% | 7.38% |
California Municipal Income Total Return(1): |
Market Price | NAV | ||||||
1 Year |
9.96% | 14.11% | ||||||
5 Year |
6.85% | 9.43% | ||||||
10 Year |
7.89% | 7.60% | ||||||
Commencement of Operations (6/29/01) to 4/30/13 |
7.11% | 7.29% |
Annual Report | | April 30, 2013 | 5 |
Performance and Statistics
PIMCO Municipal Income Funds
April 30, 2013 (unaudited)
New York Municipal Income Total Return(1): |
Market Price | NAV | ||||||
1 Year |
12.96% | 12.07% | ||||||
5 Year |
5.74% | 5.52% | ||||||
10 Year |
5.61% | 5.29% | ||||||
Commencement of Operations (6/29/01) to 4/30/13 |
4.84% | 4.94% |
(1) Past performance is no guarantee of future results. Total return is calculated by determining the percentage change in NAV or market price (as applicable) in the specified period. The calculation assumes that all dividends and distributions, if any, have been reinvested. Total return does not reflect broker commissions or sales charges in connection with the purchase or sale of Fund shares.
Performance at market price will differ from results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the Funds, market conditions, supply and demand for each Funds shares, or changes in each Funds dividends.
An investment in the Funds involves risk, including the loss of principal. Total return, market price, market price yield and NAV will fluctuate with changes in market conditions. This data is provided for information purposes only and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one time public offering and once issued, shares of closed-end funds are traded in the open market through a stock exchange. NAV is equal to total assets attributable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.
(2) Market Price Yield is determined by dividing the annualized current monthly dividend per common share (comprised of net investment income) by the market price per common share at April 30, 2013.
(3) Represents Floating Rate Notes issued in tender option bond transactions and Preferred Shares outstanding (collectively Leverage), as a percentage of total managed assets. Total managed assets refer to total assets (including assets attributable to Leverage) minus accrued liabilities (other than liabilities representing Leverage).
6 | April 30, 2013 | | Annual Report |
PIMCO Municipal Income Fund
April 30, 2013
Principal Amount (000s) |
Value | |||||||||
Municipal Bonds & Notes 96.9% | ||||||||||
Alabama 0.5% | ||||||||||
Huntsville-Redstone Village Special Care Facs. Financing Auth. Rev., Redstone Village Project, |
||||||||||
$ | 250 | 5.50%, 1/1/28 | $ | 252,120 | ||||||
885 | 5.50%, 1/1/43 | 878,522 | ||||||||
1,350 | Montgomery Medical Clinic Board Rev., Jackson Hospital & Clinic, 5.25%, 3/1/31 | 1,399,734 | ||||||||
2,530,376 | ||||||||||
Alaska 0.8% | ||||||||||
3,280 | Borough of Matanuska-Susitna Rev., Goose Creek Correctional Center, 6.00%, 9/1/32 (AGC) |
3,907,694 | ||||||||
900 | Industrial Dev. & Export Auth. Rev., Boys & Girls Home, 6.00%, 12/1/36 (b)(e) | 451,800 | ||||||||
4,359,494 | ||||||||||
Arizona 4.0% | ||||||||||
Health Facs. Auth. Rev., | ||||||||||
2,050 | Banner Health, 5.50%, 1/1/38, Ser. D |
2,295,918 | ||||||||
2,750 | Beatitudes Campus Project, 5.20%, 10/1/37 |
2,727,340 | ||||||||
1,500 | Maricopa Cnty. Pollution Control Corp. Rev., Southern California Edison Co., 5.00%, 6/1/35, Ser. A |
1,665,750 | ||||||||
750 | Pima Cnty. Industrial Dev. Auth. Rev., Tucson Electric Power Co., 5.25%, 10/1/40, Ser. A |
822,180 | ||||||||
5,000 | Salt River Project Agricultural Improvement & Power Dist. Rev., 5.00%, 1/1/39, Ser. A (h) |
5,701,200 | ||||||||
7,700 | Salt Verde Financial Corp. Rev., 5.00%, 12/1/37 | 8,638,399 | ||||||||
21,850,787 | ||||||||||
Arkansas 0.3% | ||||||||||
5,500 | Dev. Finance Auth. Rev., Arkansas Cancer Research Center Project, zero coupon, 7/1/36 (AMBAC) |
1,885,785 | ||||||||
California 13.6% | ||||||||||
Bay Area Toll Auth. Rev., San Francisco Bay Area, | ||||||||||
2,875 | 5.00%, 10/1/34 | 3,266,747 | ||||||||
3,255 | 5.00%, 10/1/42 | 3,641,043 | ||||||||
3,000 | Chula Vista Rev., San Diego Gas & Electric, 5.875%, 2/15/34, Ser. B | 3,610,680 | ||||||||
7,500 | Golden State Tobacco Securitization Corp. Rev., 5.75%, 6/1/47, Ser. A-1 | 7,114,500 | ||||||||
Health Facs. Financing Auth. Rev., | ||||||||||
2,000 | Catholic Healthcare West, 6.00%, 7/1/39, Ser. A |
2,392,280 | ||||||||
1,500 | Sutter Health, 6.00%, 8/15/42, Ser. B |
1,830,780 | ||||||||
5,300 | Los Angeles Community College Dist., GO, 5.00%, 8/1/32, Ser. A (FGIC-NPFGC) | 5,982,958 | ||||||||
2,000 | Los Angeles Unified School Dist., GO, 5.00%, 7/1/30, Ser. E (AMBAC) | 2,154,040 | ||||||||
2,000 | M-S-R Energy Auth. Rev., 6.125%, 11/1/29, Ser. C | 2,506,860 | ||||||||
4,175 | Montebello Unified School Dist., GO, 5.00%, 8/1/33 (AGM) | 4,570,873 | ||||||||
1,445 | Municipal Finance Auth. Rev., Azusa Pacific Univ. Project, 7.75%, 4/1/31, Ser. B | 1,711,270 | ||||||||
5,000 | Orange Cnty. Airport Rev., 5.25%, 7/1/39, Ser. A | 5,562,900 | ||||||||
1,600 | San Marcos Unified School Dist., GO, 5.00%, 8/1/38, Ser. A | 1,782,624 | ||||||||
State, GO, | ||||||||||
700 | 5.00%, 11/1/32 | 780,899 | ||||||||
1,200 | 5.00%, 6/1/37 | 1,310,232 |
Annual Report | | April 30, 2013 | 7 |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
California (continued) | ||||||||||
$ | 2,300 | 5.125%, 8/1/36 | $ | 2,582,900 | ||||||
1,250 | 5.25%, 3/1/38 | 1,400,538 | ||||||||
1,900 | 5.25%, 11/1/40 | 2,172,688 | ||||||||
500 | 5.50%, 3/1/40 | 592,220 | ||||||||
3,200 | 6.00%, 4/1/38 | 3,825,408 | ||||||||
Statewide Communities Dev. Auth. Rev., | ||||||||||
690 | California Baptist Univ., 6.50%, 11/1/21 |
817,015 | ||||||||
845 | Catholic Healthcare West, 5.50%, 7/1/31, Ser. E |
948,470 | ||||||||
2,310 | Methodist Hospital Project, 6.625%, 8/1/29 (FHA) |
2,863,661 | ||||||||
8,485 | Methodist Hospital Project, 6.75%, 2/1/38 (FHA) |
10,332,694 | ||||||||
2,000 | Whittier Union High School Dist., GO, zero coupon, 8/1/25 | 1,174,920 | ||||||||
74,929,200 | ||||||||||
Colorado 1.2% | ||||||||||
500 | Confluence Metropolitan Dist. Rev., 5.45%, 12/1/34 | 382,050 | ||||||||
450 | Denver Health & Hospital Auth. Rev., 5.625%, 12/1/40 | 501,426 | ||||||||
2,500 | Health Facs. Auth. Rev., Catholic Health Initiatives, 5.00%, 2/1/41, Ser. A | 2,748,775 | ||||||||
500 | Public Auth. for Colorado Energy Rev., 6.50%, 11/15/38 | 679,060 | ||||||||
400 | Regional Transportation Dist., CP, 5.375%, 6/1/31, Ser. A | 456,332 | ||||||||
1,500 | Univ. of Colorado Rev., 5.375%, 6/1/38, Ser. A | 1,750,020 | ||||||||
6,517,663 | ||||||||||
Connecticut 1.5% | ||||||||||
State Health & Educational Fac. Auth. Rev., | ||||||||||
5,000 | Hartford Healthcare, 5.00%, 7/1/41, Ser. A |
5,465,100 | ||||||||
2,500 | Stamford Hospital, 5.00%, 7/1/42, Ser. J |
2,728,125 | ||||||||
8,193,225 | ||||||||||
District of Columbia 1.1% | ||||||||||
2,500 | Dist. of Columbia Rev., Brookings Institution, 5.75%, 10/1/39 | 2,826,425 | ||||||||
3,390 | Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24 | 3,468,953 | ||||||||
6,295,378 | ||||||||||
Florida 2.2% | ||||||||||
780 | Beacon Lakes Community Dev. Dist., Special Assessment, 6.00%, 5/1/38, Ser. A | 792,698 | ||||||||
4,000 | Broward Cnty. Water & Sewer Utility Rev., 5.25%, 10/1/34, Ser. A (h) | 4,697,160 | ||||||||
300 | Dev. Finance Corp. Rev., Renaissance Charter School, 6.50%, 6/15/21, Ser. A | 349,494 | ||||||||
500 | Lee Cnty. Industrial Dev. Auth. Rev., Lee Community Charter Foundation, 5.375%, 6/15/37, Ser. A |
504,280 | ||||||||
1,250 | Miami-Dade Cnty. School Board, CP, 5.375%, 2/1/34, Ser. A (AGC) | 1,423,200 | ||||||||
3,900 | State Board of Education, GO, 5.00%, 6/1/38, Ser. D (h) | 4,489,290 | ||||||||
12,256,122 | ||||||||||
Georgia 0.4% | ||||||||||
2,300 | Medical Center Hospital Auth. Rev., Spring Harbor Green Island Project, 5.25%, 7/1/37 |
2,305,796 | ||||||||
Illinois 2.5% | ||||||||||
5,000 | Chicago, GO, 5.00%, 1/1/34, Ser. C (h) | 5,424,700 | ||||||||
Finance Auth. Rev., | ||||||||||
400 | OSF Healthcare System, 7.125%, 11/15/37, Ser. A |
488,216 |
8 | April 30, 2013 | | Annual Report |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
Illinois (continued) | ||||||||||
$ | 190 | Univ. of Chicago, 5.25%, 7/1/41, Ser. 05-A |
$ | 190,519 | ||||||
5,000 | Univ. of Chicago, 5.50%, 7/1/37, Ser. B (h) |
5,929,450 | ||||||||
1,900 | Springfield Electric Rev., 5.00%, 3/1/36 | 1,987,666 | ||||||||
14,020,551 | ||||||||||
Indiana 1.6% | ||||||||||
Finance Auth. Rev., | ||||||||||
1,500 | Duke Energy Indiana, Inc., 6.00%, 8/1/39, Ser. B |
1,719,480 | ||||||||
3,000 | Ohio Valley Electric Corp., 5.00%, 6/1/32, Ser. A |
3,252,540 | ||||||||
1,000 | Municipal Power Agcy. Rev., 6.00%, 1/1/39, Ser. B | 1,179,020 | ||||||||
1,900 | Vigo Cnty. Hospital Auth. Rev., Union Hospital, Inc., 7.50%, 9/1/22 | 2,473,572 | ||||||||
8,624,612 | ||||||||||
Iowa 1.7% | ||||||||||
Finance Auth. Rev., | ||||||||||
4,890 | Deerfield Retirement Community, Inc., 5.50%, 11/15/37, Ser. A |
3,953,174 | ||||||||
3,500 | Edgewater LLC Project, 6.75%, 11/15/37 |
3,732,505 | ||||||||
1,500 | Edgewater LLC Project, 6.75%, 11/15/42 |
1,594,650 | ||||||||
9,280,329 | ||||||||||
Kansas 0.4% | ||||||||||
1,000 | Dev. Finance Auth. Rev., Adventist Health, 5.75%, 11/15/38 | 1,156,270 | ||||||||
1,000 | Lenexa City, Tax Allocation, Center East Project, 6.00%, 4/1/27 (e) | 550,000 | ||||||||
650 | Manhattan Rev., Meadowlark Hills Retirement, 5.125%, 5/15/42, Ser. B | 656,702 | ||||||||
2,362,972 | ||||||||||
Kentucky 0.4% | ||||||||||
1,000 | Economic Dev. Finance Auth. Rev., Owensboro Medical Healthcare Systems, 6.375%, 6/1/40, Ser. A | 1,199,640 | ||||||||
1,000 | Ohio Cnty. Pollution Control Rev., Big Rivers Electric Corp. Project, 6.00%, 7/15/31, Ser. A |
1,004,530 | ||||||||
2,204,170 | ||||||||||
Louisiana 2.9% | ||||||||||
Local Govt Environmental Facs. & Community Dev. Auth Rev., | ||||||||||
1,680 | Capital Projects & Equipment Acquisition, 6.55%, 9/1/25 (ACA) (b) |
1,887,799 | ||||||||
400 | Westlake Chemical Corp., 6.50%, 11/1/35, Ser. A-2 |
478,212 | ||||||||
750 | Womans Hospital Foundation, 5.875%, 10/1/40, Ser. A |
885,210 | ||||||||
2,000 | Public Facs. Auth. Rev., Ochsner Clinic Foundation Project, 6.50%, 5/15/37 | 2,431,040 | ||||||||
10,000 | Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B | 10,063,900 | ||||||||
15,746,161 | ||||||||||
Maryland 0.4% | ||||||||||
1,500 | Economic Dev. Corp. Rev., 5.75%, 6/1/35, Ser. B | 1,707,000 | ||||||||
650 | Health & Higher Educational Facs. Auth. Rev., Charlestown Community, 6.25%, 1/1/41 |
747,494 | ||||||||
2,454,494 | ||||||||||
Massachusetts 0.5% | ||||||||||
Dev. Finance Agcy. Rev., | ||||||||||
750 | Foxborough Regional Charter School, 7.00%, 7/1/42, Ser. A |
862,208 | ||||||||
103 | Linden Ponds, Inc. Fac., zero coupon, 11/15/56, Ser. B (b) |
772 |
Annual Report | | April 30, 2013 | 9 |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
Massachusetts (continued) | ||||||||||
$ | 21 | Linden Ponds, Inc. Fac., 5.50%, 11/15/46, Ser. A-2 (b) |
$ | 16,420 | ||||||
388 | Linden Ponds, Inc. Fac., 6.25%, 11/15/39, Ser. A-1 |
351,675 | ||||||||
1,500 | State College Building Auth. Rev., 5.50%, 5/1/39, Ser. A | 1,767,345 | ||||||||
2,998,420 | ||||||||||
Michigan 2.2% | ||||||||||
5,000 | Detroit Water and Sewerage Dept. Rev., 5.25%, 7/1/39, Ser. A | 5,495,300 | ||||||||
1,500 | Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital, 8.25%, 9/1/39 | 1,913,880 | ||||||||
5,000 | Tobacco Settlement Finance Auth. Rev., 6.00%, 6/1/48, Ser. A | 4,695,050 | ||||||||
12,104,230 | ||||||||||
Minnesota 0.4% | ||||||||||
95 | Agricultural & Economic Dev. Board Rev., Health Care Systems, 6.375%, 11/15/29, Ser. A |
95,423 | ||||||||
100 | Duluth Housing & Redev. Auth. Rev., 5.875%, 11/1/40, Ser. A | 103,269 | ||||||||
1,500 | St. Louis Park Rev., Nicollett Health Services, 5.75%, 7/1/39 | 1,690,830 | ||||||||
500 | Washington Cnty. Housing & Redev. Auth. Rev., Birchwood & Woodbury Projects, 5.625%, 6/1/37, Ser. A |
508,980 | ||||||||
2,398,502 | ||||||||||
Missouri 0.3% | ||||||||||
1,000 | Joplin Industrial Dev. Auth. Rev., Christian Homes, Inc., 5.75%, 5/15/26, Ser. F | 1,074,980 | ||||||||
430 | Lees Summit, Tax Allocation, Summit Fair Project, 5.625%, 10/1/23 | 459,674 | ||||||||
1,534,654 | ||||||||||
Nevada 3.9% | ||||||||||
Clark Cnty., GO, | ||||||||||
5,000 | 4.75%, 6/1/30 (AGM) | 5,450,650 | ||||||||
5,230 | 4.75%, 11/1/35 (FGIC-NPFGC) (h) | 5,561,268 | ||||||||
9,755 | Washoe Cnty., Water & Sewer, GO, 5.00%, 1/1/35 (NPFGC) | 10,604,856 | ||||||||
21,616,774 | ||||||||||
New Jersey 10.4% | ||||||||||
16,550 | Economic Dev. Auth., Special Assessment, Kapkowski Road Landfill Project, 5.75%, 4/1/31 |
18,789,049 | ||||||||
2,000 | Economic Dev. Auth. Rev., School Facs. Construction, 5.50%, 12/15/34, Ser. Z (AGC) |
2,348,020 | ||||||||
500 | Health Care Facs. Financing Auth. Rev., AHS Hospital Corp., 6.00%, 7/1/37 | 614,760 | ||||||||
2,000 | State Turnpike Auth. Rev., 5.25%, 1/1/40, Ser. E | 2,239,240 | ||||||||
Tobacco Settlement Financing Corp. Rev., Ser. 1-A, | ||||||||||
6,600 | 4.75%, 6/1/34 | 5,821,398 | ||||||||
22,000 | 5.00%, 6/1/41 | 19,573,840 | ||||||||
7,000 | Transportation Trust Fund Auth. Rev., 5.00%, 6/15/42, Ser. B | 7,746,480 | ||||||||
57,132,787 | ||||||||||
New Mexico 1.5% | ||||||||||
1,000 | Farmington Pollution Control Rev., 5.90%, 6/1/40, Ser. D | 1,120,000 | ||||||||
6,400 | Hospital Equipment Loan Council Rev., Presbyterian Healthcare, 5.00%, 8/1/39 | 6,971,456 | ||||||||
8,091,456 |
10 | April 30, 2013 | | Annual Report |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
New York 13.5% | ||||||||||
Hudson Yards Infrastructure Corp. Rev., Ser. A, | ||||||||||
$ | 4,000 | 5.00%, 2/15/47 (FGIC) | $ | 4,255,920 | ||||||
15,500 | 5.25%, 2/15/47 | 17,570,335 | ||||||||
Liberty Dev. Corp. Rev., Goldman Sachs Headquarters, | ||||||||||
7,500 | 5.25%, 10/1/35 | 8,940,750 | ||||||||
3,000 | 5.50%, 10/1/37 | 3,729,450 | ||||||||
Metropolitan Transportation Auth. Rev., | ||||||||||
3,000 | 5.00%, 11/15/36, Ser. D | 3,388,470 | ||||||||
4,000 | 5.00%, 11/15/43, Ser. B | 4,471,600 | ||||||||
4,200 | Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A |
2,522,226 | ||||||||
3,000 | New York City Water & Sewer System Rev., Second Generation Resolutions, 5.00%, 6/15/39, Ser. GG-1 |
3,377,550 | ||||||||
New York Liberty Dev. Corp. Rev., | ||||||||||
10,000 | 1 World Trade Center Project, 5.00%, 12/15/41 |
11,337,800 | ||||||||
10,000 | 4 World Trade Center Project, 5.00%, 11/15/44 |
11,028,400 | ||||||||
3,500 | State Dormitory Auth. Rev., The New School, 5.50%, 7/1/40 | 3,984,960 | ||||||||
74,607,461 | ||||||||||
North Carolina 0.3% | ||||||||||
1,500 | Medical Care Commission Rev., Village at Brookwood, 5.25%, 1/1/32 | 1,545,150 | ||||||||
Ohio 1.9% | ||||||||||
2,000 | American Municipal Power, Inc. Rev., Fremont Energy Center Project, 5.00%, 2/15/42, Ser. B |
2,220,280 | ||||||||
4,250 | Buckeye Tobacco Settlement Financing Auth. Rev., 5.875%, 6/1/47, Ser. A-2 | 3,781,778 | ||||||||
3,000 | Hamilton Cnty. Healthcare Rev., Christ Hospital Project, 5.00%, 6/1/42 | 3,200,490 | ||||||||
500 | Higher Educational Fac. Commission Rev., Univ. Hospital Health Systems, 6.75%, 1/15/39, Ser. 2009-A (Pre-refunded @ $100, 1/15/15) (c) |
554,370 | ||||||||
500 | Montgomery Cnty. Rev., Miami Valley Hospital, 6.25%, 11/15/39, Ser. A (Pre-refunded @ $100, 11/15/14) (c) |
545,640 | ||||||||
10,302,558 | ||||||||||
Oregon 0.6% | ||||||||||
2,000 | Oregon Health & Science Univ. Rev., 5.75%, 7/1/39, Ser. A | 2,360,180 | ||||||||
600 | State Department of Administrative Services, CP, 5.25%, 5/1/39, Ser. A | 663,504 | ||||||||
3,023,684 | ||||||||||
Pennsylvania 5.4% | ||||||||||
3,500 | Berks Cnty. Municipal Auth. Rev., Reading Hospital Medical Center, 5.00%, 11/1/40, Ser. A |
3,867,990 | ||||||||
5,000 | Geisinger Auth. Rev., 5.25%, 6/1/39, Ser. A | 5,550,250 | ||||||||
2,000 | Harrisburg Auth. Rev., Harrisburg Univ. of Science, 6.00%, 9/1/36, Ser. B (e) | 1,467,280 | ||||||||
Higher Educational Facs. Auth. Rev., | ||||||||||
500 | Edinboro Univ. Foundation, 6.00%, 7/1/43 |
565,360 | ||||||||
350 | Thomas Jefferson Univ., 5.00%, 3/1/40 |
385,868 | ||||||||
Lancaster Cnty. Hospital Auth. Rev., Brethren Village Project, Ser. A, | ||||||||||
750 | 6.25%, 7/1/26 | 806,017 | ||||||||
85 | 6.375%, 7/1/30 | 91,281 |
Annual Report | | April 30, 2013 | 11 |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
Pennsylvania (continued) | ||||||||||
$ | 1,100 | Luzerne Cnty. Industrial Dev. Auth. Rev., Pennsylvania American Water Co., 5.50%, 12/1/39 |
$ | 1,221,407 | ||||||
7,000 | Philadelphia, GO, 5.25%, 12/15/32, Ser. A (AGM) | 7,717,010 | ||||||||
5,000 | Philadelphia Hospitals & Higher Education Facs. Auth. Rev., Temple Univ. Health System, 5.625%, 7/1/36, Ser. A | 5,508,900 | ||||||||
500 | Philadelphia Water & Wastewater Rev., 5.25%, 1/1/36, Ser. A | 558,705 | ||||||||
2,000 | Turnpike Commission Rev., 5.125%, 12/1/40, Ser. D | 2,175,940 | ||||||||
29,916,008 | ||||||||||
Rhode Island 4.4% | ||||||||||
23,800 | Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. 2002-A | 24,370,486 | ||||||||
South Carolina 0.5% | ||||||||||
450 | Jobs-Economic Dev. Auth. Rev., Lutheran Homes, 5.50%, 5/1/28 | 465,453 | ||||||||
2,200 | State Ports Auth. Rev., 5.25%, 7/1/40 | 2,471,524 | ||||||||
2,936,977 | ||||||||||
Tennessee 2.2% | ||||||||||
940 | Memphis Health Educational & Housing Fac. Board Rev., Wesley Housing Corp. Project, 6.95%, 1/1/20 (a)(b)(d)(e)(i) (acquisition cost-$932,489; purchased 6/29/01) | 472,350 | ||||||||
Tennessee Energy Acquisition Corp. Rev., | ||||||||||
5,000 | 5.00%, 2/1/27, Ser. C | 5,637,500 | ||||||||
5,000 | 5.25%, 9/1/24, Ser. A | 5,909,850 | ||||||||
12,019,700 | ||||||||||
Texas 9.6% | ||||||||||
1,200 | Dallas Rev., Dallas Civic Center, 5.25%, 8/15/38 (AGC) | 1,339,680 | ||||||||
3,000 | Harris Cnty. Cultural Education Facs. Finance Corp. Rev., Baylor College of Medicine, 5.00%, 11/15/37 | 3,351,750 | ||||||||
2,000 | Love Field Airport Modernization Corp. Rev., Southwest Airlines Co. Project, 5.25%, 11/1/40 |
2,182,140 | ||||||||
North Harris Cnty. Regional Water Auth. Rev., | ||||||||||
4,200 | 5.25%, 12/15/33 | 4,733,568 | ||||||||
4,200 | 5.50%, 12/15/38 | 4,757,466 | ||||||||
North Texas Tollway Auth. Rev., | ||||||||||
2,750 | 5.00%, 1/1/38 | 3,030,802 | ||||||||
3,000 | 5.25%, 1/1/44, Ser. C | 3,275,400 | ||||||||
600 | 5.50%, 9/1/41, Ser. A | 711,726 | ||||||||
6,050 | 5.625%, 1/1/33, Ser. A | 6,891,010 | ||||||||
600 | 5.75%, 1/1/33, Ser. F | 678,498 | ||||||||
250 | San Juan Higher Education Finance Auth. Rev., 6.70%, 8/15/40, Ser. A | 296,623 | ||||||||
State Public Finance Auth. Charter School Finance Corp. Rev., Ser. A, | ||||||||||
400 | 5.875%, 12/1/36 | 434,212 | ||||||||
2,000 | Cosmos Foundation, 5.375%, 2/15/37 |
2,085,440 | ||||||||
4,000 | Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev., Baylor Health Care Systems Project, 6.25%, 11/15/29 | 4,756,960 | ||||||||
Texas Municipal Gas Acquisition & Supply Corp. I Rev., | ||||||||||
3,500 | 5.25%, 12/15/23, Ser. A | 4,117,260 | ||||||||
6,500 | 6.25%, 12/15/26, Ser. D | 8,268,195 |
12 | April 30, 2013 | | Annual Report |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
Texas (continued) | ||||||||||
$ | 1,000 | Uptown Dev. Auth., Tax Allocation, Infrastructure Improvement Facs., 5.50%, 9/1/29 |
$ | 1,125,270 | ||||||
500 | Wise Cnty. Rev., Parker Cnty. Junior College Dist., 8.00%, 8/15/34 | 601,415 | ||||||||
52,637,415 | ||||||||||
U. S. Virgin Islands 0.1% | ||||||||||
500 | Virgin Islands Public Finance Auth. Rev., 5.00%, 10/1/39, Ser. A-1 | 530,915 | ||||||||
Utah 1.5% | ||||||||||
7,000 | Salt Lake Cnty. Rev., IHC Health Services, 5.125%, 2/15/33 (AMBAC) | 8,124,830 | ||||||||
Virginia 0.6% | ||||||||||
1,000 | Fairfax Cnty. Industrial Dev. Auth. Rev., Inova Health Systems, 5.50%, 5/15/35, Ser. A |
1,162,170 | ||||||||
1,985 | Peninsula Town Center Community Dev. Auth. Rev., 6.45%, 9/1/37 | 2,141,180 | ||||||||
3,303,350 | ||||||||||
Washington 1.3% | ||||||||||
Health Care Facs. Auth. Rev., | ||||||||||
700 | Multicare Health Systems, 6.00%, 8/15/39, Ser. B (AGC) |
808,997 | ||||||||
250 | Seattle Cancer Care Alliance, 7.375%, 3/1/38 |
319,287 | ||||||||
2,000 | Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A |
2,197,840 | ||||||||
State Housing Finance Commission Rev., Skyline at First Hill Project, Ser. A, | ||||||||||
230 | 5.25%, 1/1/17 | 236,569 | ||||||||
3,600 | 5.625%, 1/1/38 | 3,619,188 | ||||||||
7,181,881 | ||||||||||
West Virginia 0.2% | ||||||||||
1,000 | Hospital Finance Auth. Rev., Highland Hospital, 9.125%, 10/1/41 | 1,285,670 | ||||||||
Wisconsin 0.1% | ||||||||||
500 | Health & Educational Facs. Auth. Rev., Prohealth Care, Inc., 6.625%, 2/15/39 | 585,985 | ||||||||
Total Municipal Bonds & Notes (cost-$469,389,916) | 534,066,008 | |||||||||
Variable Rate Notes (a)(d)(f)(g) 2.2% | ||||||||||
Texas 0.4% | ||||||||||
1,000 | JPMorgan Chase Putters/Drivers Trust, GO, 9.31%, 2/1/17, Ser. 3480 | 1,316,410 | ||||||||
600 | JPMorgan Chase Putters/Drivers Trust Rev., 9.92%, 10/1/31, Ser. 3227 | 847,824 | ||||||||
2,164,234 | ||||||||||
Washington 1.8% | ||||||||||
6,670 | JPMorgan Chase Putters/Drivers Trust, GO, 13.565%, 8/1/28, Ser. 3388 | 9,823,309 | ||||||||
Total Variable Rate Notes (cost-$8,162,784) | 11,987,543 | |||||||||
Repurchase Agreements 0.9% | ||||||||||
4,900 | Citigroup Global Markets, Inc., dated 4/30/13, 0.16%, due 5/1/13, proceeds $4,900,022; collateralized by U.S. Treasury Notes, 0.75%, due 10/31/17, valued at $5,002,726 including accrued interest (cost-$4,900,000) | 4,900,000 | ||||||||
Total Investments (cost-$482,452,700) 100.0% | $550,953,551 |
Annual Report | | April 30, 2013 | 13 |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
Industry classification of portfolio holdings as a percentage of total investments at April 30, 2013 was as follows:
Revenue Bonds: |
||||||||
Health, Hospital & Nursing Home Revenue |
21.8 | % | ||||||
Miscellaneous Revenue |
12.3 | |||||||
Tobacco Settlement Funded |
10.2 | |||||||
Natural Gas Revenue |
7.1 | |||||||
College & University Revenue |
4.5 | |||||||
Port, Airport & Marina Revenue |
4.2 | |||||||
Water Revenue |
3.7 | |||||||
Electric Power & Light Revenue |
3.4 | |||||||
Miscellaneous Taxes |
3.2 | |||||||
Industrial Revenue |
3.1 | |||||||
Highway Revenue Tolls |
3.0 | |||||||
Transit Revenue |
1.4 | |||||||
Sewer Revenue |
1.0 | |||||||
Lease (Appropriation) |
0.7 | |||||||
Ad Valorem Property Tax |
0.5 | |||||||
Tobacco & Liquor Taxes |
0.1 | |||||||
Local or Guaranteed Housing |
0.1 | |||||||
|
|
|||||||
Total Revenue Bonds |
80.3 | % | ||||||
General Obligation |
14.3 | |||||||
Special Assessment |
3.6 | |||||||
Repurchase Agreements |
0.9 | |||||||
Certificates of Participation |
0.5 | |||||||
Tax Allocation |
0.4 | |||||||
|
|
|||||||
Total Investments |
100.0 | % | ||||||
|
|
Notes to Schedule of Investments:
(a) | Private Placement Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $12,459,893, representing 2.3% of total investments. |
(b) | Illiquid. |
(c) | Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date). |
(d) | 144A Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid. |
(e) | In default. |
(f) | Inverse Floater The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on April 30, 2013. |
(g) | Variable Rate Notes Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on April 30, 2013. |
(h) | Residual Interest Bonds held in Trust Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction. |
(i) | Restricted. The aggregate acquisition cost of such security is $932,489. The aggregate value is $472,350, representing 0.1% of total investments. |
14 | April 30, 2013 | | Annual Report |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
(j) | Floating Rate Notes for the year ended April 30, 2013: The weighted average daily balance of Floating Rate Notes outstanding during the year ended April 30, 2013 was $15,563,277 at a weighted average interest rate, including fees, of 0.73%. |
(k) | Fair Value Measurements See Note 1(b) in the Notes to Financial Statements. |
Level 1 Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value at 4/30/13 |
|||||||||||||
Investments in Securities Assets | ||||||||||||||||
Municipal Bonds & Notes: |
||||||||||||||||
Tennessee |
$ | | $ | 11,547,350 | $ | 472,350 | $ | 12,019,700 | ||||||||
All Other |
| 522,046,308 | | 522,046,308 | ||||||||||||
Variable Rate Notes |
| 11,987,543 | | 11,987,543 | ||||||||||||
Repurchase Agreements |
| 4,900,000 | | 4,900,000 | ||||||||||||
Totals | $ | | $ | 550,481,201 | $ | 472,350 | $ | 550,953,551 |
At April 30, 2013, there were no transfers between Levels 1 and 2.
A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the year ended April 30, 2013, was as follows:
Beginning Balance 4/30/12 |
Purchases | Sales | Accrued Discount (Premiums) |
Net Realized Gain (Loss) |
Net Change in Unrealized Appreciation/ Depreciation |
Transfers into Level 3 |
Transfers out of Level 3* |
Ending Balance 4/30/13 |
||||||||||||||||||||||||||||
Investments in Securities Assets |
|
|||||||||||||||||||||||||||||||||||
Municipal Bonds & Notes: |
||||||||||||||||||||||||||||||||||||
Alaska |
$ | 482,850 | $ | | $ | | $ | 856 | $ | | $ | (31,906 | ) | $ | | $ | (451,800 | ) | $ | | ||||||||||||||||
Tennessee |
472,350 | | | | | | | | 472,350 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Totals |
$ | 955,200 | $ | | $ | | $ | 856 | $ | | $ | (31,906 | ) | $ | | $ | (451,800 | ) | $ | 472,350 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at April 30, 2013.
Ending Balance at 4/30/13 |
Valuation Technique Used |
Unobservable Inputs |
Input Values |
|||||||||
Municipal Bonds & Notes |
$ | 472,350 | Third-Party pricing vendor | Single Broker Quote | $ | 50.25 |
n | Transferred out of Level 3 into Level 2 because an evaluated price with observable inputs from an independent third-party pricing vendor became available. |
There was no net change in unrealized appreciation/depreciation of Level 3 investments held at April 30, 2013. Net change in unrealized appreciation/depreciation is reflected on the Statement of Operations.
Annual Report | | April 30, 2013 | 15 |
Schedule of Investments
PIMCO Municipal Income Fund
April 30, 2013 (continued)
(l) | Financial Derivative Instruments |
The effect of derivatives on the Statement of Operations for the year ended April 30, 2013:
Location | Interest Rate Contracts |
|||
Net realized loss on: | ||||
Futures contracts |
$ | (808,634 | ) | |
|
|
|||
Net change in unrealized appreciation/depreciation of: | ||||
Futures contracts |
$ | 351,605 | ||
|
|
The average volume (measured at each fiscal quarter-end) of derivative activity during the year ended April 30, 2013:
Futures Contracts Short(1) | ||
Municipal | (10) |
(1) | Number of Contracts |
Glossary:
ACA | - | insured by American Capital Access Holding Ltd. | ||||
AGC | - | insured by Assured Guaranty Corp. | ||||
AGM | - | insured by Assured Guaranty Municipal Corp. | ||||
AMBAC | - | insured by American Municipal Bond Assurance Corp. | ||||
CP | - | Certificates of Participation | ||||
FGIC | - | insured by Financial Guaranty Insurance Co. | ||||
FHA | - | insured by Federal Housing Administration | ||||
GO | - | General Obligation Bond | ||||
NPFGC | - | insured by National Public Finance Guarantee Corp. |
16 | Annual Report | | April 30. 2013 | | See accompanying Notes to Financial Statements |
Schedule of Investments
PIMCO California Municipal Income Fund
April 30, 2013
Principal Amount (000s) |
Value | |||||||||
California Municipal Bonds & Notes 92.8% | ||||||||||
$ | 10,000 | Bay Area Toll Auth. Rev., San Francisco Bay Area, 5.00%, 4/1/34, Ser. F-1 | $ | 11,301,500 | ||||||
5,000 | Chula Vista Rev., San Diego Gas & Electric, 5.875%, 2/15/34, Ser. B | 6,017,800 | ||||||||
650 | City & Cnty. of San Francisco, Capital Improvement Projects, CP, 5.25%, 4/1/31, Ser. A |
715,709 | ||||||||
350 | Contra Costa Cnty. Public Financing Auth., Tax Allocation, 5.85%, 8/1/33, Ser. A | 350,294 | ||||||||
5,000 | Desert Community College Dist., GO, 5.00%, 8/1/37, Ser. C (AGM) | 5,626,850 | ||||||||
310 | Dublin Unified School Dist., GO, zero coupon, 8/1/23, Ser. E | 221,018 | ||||||||
6,300 | Eastern Municipal Water Dist., CP, 5.00%, 7/1/35, Ser. H | 7,192,332 | ||||||||
Educational Facs. Auth. Rev. (f), | ||||||||||
10,200 | Claremont McKenna College, 5.00%, 1/1/39 |
11,276,814 | ||||||||
10,000 | Univ. of Southern California, 5.00%, 10/1/39, Ser. A |
11,486,900 | ||||||||
2,975 | El Dorado Irrigation Dist. & El Dorado Water Agcy., CP, 5.75%, 8/1/39, Ser. A (AGC) | 3,139,726 | ||||||||
14,425 | El Monte, Department of Public Social Services Fac., Phase II, CP, 5.25%, 1/1/34 (AMBAC) (a) |
14,474,189 | ||||||||
1,000 | Folsom Redev. Agcy., Tax Allocation, 5.50%, 8/1/36 | 1,044,430 | ||||||||
Fremont Community Facs. Dist. No. 1, Special Tax, | ||||||||||
165 | 6.00%, 9/1/18 | 166,323 | ||||||||
505 | 6.00%, 9/1/19 | 508,883 | ||||||||
3,500 | 6.30%, 9/1/31 | 3,518,305 | ||||||||
Golden State Tobacco Securitization Corp. Rev., | ||||||||||
3,000 | 5.00%, 6/1/35, Ser. A (FGIC) | 3,146,520 | ||||||||
6,000 | 5.00%, 6/1/38, Ser. A (FGIC) | 6,280,620 | ||||||||
1,600 | 5.00%, 6/1/45 (AMBAC-TCRS) | 1,669,552 | ||||||||
8,300 | 5.125%, 6/1/47, Ser. A-1 | 7,272,211 | ||||||||
38,175 | 5.75%, 6/1/47, Ser. A-1 | 36,212,805 | ||||||||
Health Facs. Financing Auth. Rev., | ||||||||||
2,000 | Adventist Health System, 5.75%, 9/1/39, Ser. A |
2,350,020 | ||||||||
2,000 | Catholic Healthcare West, 6.00%, 7/1/34, Ser. A |
2,099,840 | ||||||||
4,000 | Catholic Healthcare West, 6.00%, 7/1/39, Ser. A |
4,784,560 | ||||||||
750 | Childrens Hospital of Los Angeles, 5.25%, 7/1/38 (AGM) |
788,753 | ||||||||
1,000 | Childrens Hospital of Orange Cnty., 6.50%, 11/1/38, Ser. A |
1,219,650 | ||||||||
1,450 | Scripps Health, 5.00%, 11/15/36, Ser. A |
1,602,758 | ||||||||
3,400 | Stanford Hospital, 5.25%, 11/15/40, Ser. A-2 |
3,905,886 | ||||||||
1,000 | Sutter Health, 5.00%, 8/15/35, Ser. D |
1,121,520 | ||||||||
1,600 | Sutter Health, 5.00%, 11/15/42, Ser. A (IBC-NPFGC) |
1,708,720 | ||||||||
3,000 | Sutter Health, 5.00%, 8/15/52, Ser. A |
3,277,200 | ||||||||
2,800 | Sutter Health, 6.00%, 8/15/42, Ser. B |
3,417,456 | ||||||||
1,000 | Imperial Irrigation Dist. Rev., 5.00%, 11/1/41, Ser. C | 1,090,560 | ||||||||
10,590 | Kern Cnty., Capital Improvements Projects, CP, 5.75%, 8/1/35, Ser. A (AGC) | 12,091,662 | ||||||||
7,000 | La Quinta Redev. Agcy., Tax Allocation, 5.10%, 9/1/31 (AMBAC) | 7,011,550 | ||||||||
500 | Lancaster Redev. Agcy., Tax Allocation, 6.875%, 8/1/39 | 564,555 | ||||||||
500 | Lancaster Redev. Agcy. Rev., Capital Improvements Projects, 5.90%, 12/1/35 | 546,520 | ||||||||
5,500 | Long Beach Airport Rev., 5.00%, 6/1/40, Ser. A | 5,909,585 | ||||||||
Long Beach Bond Finance Auth. Rev., Long Beach Natural Gas, Ser. A, | ||||||||||
1,000 | 5.50%, 11/15/27 | 1,192,200 | ||||||||
3,900 | 5.50%, 11/15/37 | 4,815,954 |
Annual Report | | April 30, 2013 | 17 |
Schedule of Investments
PIMCO California Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
$ | 1,000 | Los Angeles Department of Airports Rev., 5.00%, 5/15/40, Ser. D | $ | 1,132,050 | ||||||
Los Angeles Department of Water & Power Rev., | ||||||||||
5,000 | 4.75%, 7/1/30, Ser. A-2 (AGM) (f) | 5,254,500 | ||||||||
2,000 | 5.00%, 7/1/41, Ser. A | 2,251,480 | ||||||||
1,500 | 5.00%, 7/1/43, Ser. B | 1,715,430 | ||||||||
3,000 | 5.375%, 7/1/34, Ser. A (f) | 3,523,500 | ||||||||
7,000 | 5.375%, 7/1/38, Ser. A (f) | 8,152,410 | ||||||||
Los Angeles Unified School Dist., GO, | ||||||||||
10,000 | 5.00%, 7/1/29, Ser. I (f) | 11,730,600 | ||||||||
3,500 | 5.00%, 1/1/34, Ser. I | 4,031,160 | ||||||||
5,000 | 5.00%, 1/1/34, Ser. I (f) | 5,758,800 | ||||||||
250 | 5.30%, 1/1/34, Ser. D | 293,788 | ||||||||
1,900 | M-S-R Energy Auth. Rev., 6.50%, 11/1/39, Ser. B | 2,609,726 | ||||||||
700 | Malibu, City Hall Project, CP, 5.00%, 7/1/39, Ser. A | 759,724 | ||||||||
Municipal Finance Auth. Rev., | ||||||||||
1,085 | Azusa Pacific Univ. Project, 7.75%, 4/1/31, Ser. B |
1,284,933 | ||||||||
2,900 | Biola Univ., 5.875%, 10/1/34 |
3,292,196 | ||||||||
2,145 | Patterson Public Financing Auth. Rev., Waste Water System Financing Project, 5.50%, 6/1/39 (AGC) | 2,339,959 | ||||||||
1,250 | Peralta Community College Dist., GO, 5.00%, 8/1/39, Ser. C | 1,383,838 | ||||||||
Pollution Control Financing Auth. Rev., | ||||||||||
1,250 | American Water Capital Corp. Project, 5.25%, 8/1/40 (a)(c) |
1,349,800 | ||||||||
2,000 | San Jose Water Co. Projects, 5.10%, 6/1/40 |
2,192,460 | ||||||||
San Diego Cnty. Water Auth., CP, | ||||||||||
350 | 5.00%, 5/1/32, Ser. A (NPFGC) | 350,000 | ||||||||
6,250 | 5.00%, 5/1/38, Ser. 2008-A (AGM) | 6,998,062 | ||||||||
3,285 | San Diego Regional Building Auth. Rev., Cnty. Operations Center & Annex, 5.375%, 2/1/36, Ser. A |
3,808,300 | ||||||||
12,610 | San Francisco Public Utilities Commission Water Rev., 5.00%, 11/1/43 | 14,350,684 | ||||||||
San Joaquin Hills Transportation Corridor Agcy. Rev., Ser. A, | ||||||||||
5,000 | 5.50%, 1/15/28 | 5,001,800 | ||||||||
5,000 | 5.70%, 1/15/19 | 5,167,050 | ||||||||
230 | San Jose, Special Assessment, 5.60%, 9/2/17, Ser. 24-Q | 238,163 | ||||||||
1,500 | San Jose Hotel Tax Rev., Convention Center Expansion, 6.50%, 5/1/36 | 1,821,945 | ||||||||
1,200 | San Marcos Unified School Dist., GO, 5.00%, 8/1/38, Ser. A | 1,336,968 | ||||||||
3,500 | Santa Clara Cnty. Financing Auth. Rev., El Camino Hospital, 5.75%, 2/1/41, Ser. A (AMBAC) |
3,896,970 | ||||||||
1,300 | Santa Cruz Cnty. Redev. Agcy., Tax Allocation, Live Oak/Soquel Community, 7.00%, 9/1/36, Ser. A |
1,548,859 | ||||||||
State, GO, | ||||||||||
5,885 | 5.00%, 9/1/35 | 6,456,492 | ||||||||
100 | 5.00%, 6/1/37 | 109,186 | ||||||||
3,000 | 5.00%, 12/1/37 | 3,307,440 | ||||||||
2,400 | 5.25%, 11/1/40 | 2,744,448 | ||||||||
1,500 | 5.50%, 3/1/40 | 1,776,660 | ||||||||
2,000 | 6.00%, 4/1/38 | 2,390,880 |
18 | April 30, 2013 | | Annual Report |
Schedule of Investments
PIMCO California Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
$ | 2,000 | 6.00%, 11/1/39 | $ | 2,422,560 | ||||||
State Public Works Board Rev., | ||||||||||
2,000 | 5.75%, 10/1/30, Ser. G-1 | 2,360,720 | ||||||||
2,000 | California State Univ., 6.00%, 11/1/34, Ser. J |
2,399,980 | ||||||||
1,500 | Judicial Council Projects, 5.00%, 12/1/29, Ser. D |
1,690,305 | ||||||||
2,000 | Regents Univ., 5.00%, 4/1/34, Ser. E |
2,250,880 | ||||||||
Statewide Communities Dev. Auth. Rev., | ||||||||||
1,000 | American Baptist Homes West, 6.25%, 10/1/39 |
1,139,420 | ||||||||
900 | California Baptist Univ., 5.50%, 11/1/38, Ser. A |
965,853 | ||||||||
845 | Catholic Healthcare West, 5.50%, 7/1/31, Ser. D |
948,470 | ||||||||
10,000 | Cottage Health, 5.00%, 11/1/40 |
11,071,600 | ||||||||
13,050 | Henry Mayo Newhall Memorial Hospital, 5.125%, 10/1/30, Ser. A (CA Mtg. Ins.) |
13,087,192 | ||||||||
1,000 | Kaiser Permanente, 5.25%, 3/1/45, Ser. B |
1,082,000 | ||||||||
1,000 | Lancer Student Housing Project, 7.50%, 6/1/42 |
1,144,790 | ||||||||
3,000 | Los Angeles Jewish Home, 5.50%, 11/15/33 (CA Mtg. Ins.) |
3,060,090 | ||||||||
1,870 | Methodist Hospital Project, 6.625%, 8/1/29 (FHA) |
2,318,202 | ||||||||
6,875 | Methodist Hospital Project, 6.75%, 2/1/38 (FHA) |
8,372,100 | ||||||||
100 | St. Joseph Health System, 5.125%, 7/1/24 (NPFGC) |
115,674 | ||||||||
3,200 | St. Joseph Health System, 5.75%, 7/1/47, Ser. A (FGIC) |
3,640,672 | ||||||||
2,000 | Sutter Health, 6.00%, 8/15/42, Ser. A |
2,441,040 | ||||||||
8,000 | The Internext Group, CP, 5.375%, 4/1/30 |
8,025,760 | ||||||||
4,000 | Univ. of California Irvine E. Campus, 5.125%, 5/15/31 |
4,439,880 | ||||||||
4,500 | Univ. of California Irvine E. Campus, 5.375%, 5/15/38 |
4,967,010 | ||||||||
6,300 | Torrance Rev., Torrance Memorial Medical Center, 5.00%, 9/1/40, Ser. A | 6,914,376 | ||||||||
2,000 | Turlock, Emanuel Medical Center, CP, 5.50%, 10/15/37, Ser. B | 2,160,900 | ||||||||
Univ. of California Rev., | ||||||||||
2,000 | 5.00%, 5/15/33, Ser. A (AMBAC) (Pre-refunded @ $100 5/15/13) (b) | 2,003,220 | ||||||||
10,000 | 5.00%, 5/15/36, Ser. A (AMBAC) (Pre-refunded @ $100 5/15/13) (b) | 10,016,200 | ||||||||
4,000 | 5.00%, 5/15/42, Ser. G | 4,547,480 | ||||||||
1,000 | Westlake Village, CP, 5.00%, 6/1/39 | 1,045,460 | ||||||||
Total California Municipal Bonds & Notes (cost-$363,898,441) | 416,113,825 | |||||||||
Other Municipal Bonds & Notes 4.2% | ||||||||||
Iowa 1.9% | ||||||||||
8,600 | Tobacco Settlement Auth. Rev., 5.60%, 6/1/34, Ser. B | 8,599,570 | ||||||||
Ohio 1.0% | ||||||||||
4,000 | American Municipal Power, Inc. Rev., Fremont Energy Center Project, 5.00%, 2/15/42, Ser. B |
4,440,560 | ||||||||
Texas 1.3% | ||||||||||
5,000 | Wood Cnty. Central Hospital Dist. Rev., East Texas Medical Center Quitman Project, 6.00%, 11/1/41 | 5,772,600 | ||||||||
Total Other Municipal Bonds & Notes (cost-$18,177,662) | 18,812,730 |
Annual Report | | April 30, 2013 | 19 |
Schedule of Investments
PIMCO California Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
California Variable Rate Notes (a)(c)(d)(e) 2.3% | ||||||||||
Health Facs. Financing Auth. Rev., | ||||||||||
$ | 1,000 | 9.389%, 11/15/36, Ser. 3193 | $ | 1,235,960 | ||||||
6,000 | 11.554%, 11/15/42, Ser. 3255 | 6,960,480 | ||||||||
1,670 | Sacramento Cnty. Sanitation Dists. Financing Auth. Rev., 13.511%, 8/1/13, Ser. 1034 (NPFGC) |
2,045,600 | ||||||||
Total California Variable Rate Notes (cost-$6,358,429) | 10,242,040 | |||||||||
Short-Term Investments 0.7% | ||||||||||
U.S. Government Agency Securities 0.5% | ||||||||||
2,300 | Freddie Mac Discount Notes, 0.162%, 1/15/14 (g) (cost-$2,297,352) |
2,297,352 | ||||||||
Repurchase Agreements 0.2% | ||||||||||
800 | Citigroup Global Markets, Inc., dated 4/30/13, 0.16%, due 5/1/13, proceeds $800,004; collateralized by U.S. Treasury Notes, 2.125%, due 12/31/15, valued at $816,356 including accrued interest (cost-$800,000) | 800,000 | ||||||||
Total Short-Term Investments (cost-$3,097,352) | 3,097,352 | |||||||||
Total Investments (cost-$391,531,884) 100.0% | $ | 448,265,947 |
Industry classification of portfolio holdings as a percentage of total investments at April 30, 2013 was as follows:
Revenue Bonds: |
||||||||
Health, Hospital & Nursing Home Revenue |
21.7 | % | ||||||
Tobacco Settlement Funded |
14.1 | |||||||
College & University Revenue |
10.3 | |||||||
Water Revenue |
7.5 | |||||||
Highway Revenue Tolls |
4.8 | |||||||
Natural Gas Revenue |
3.3 | |||||||
Lease (Abatement) |
2.9 | |||||||
Electric Power & Light Revenue |
2.4 | |||||||
Local or Guaranteed Housing |
2.3 | |||||||
Port, Airport & Marina Revenue |
1.6 | |||||||
Sewer Revenue |
1.0 | |||||||
Hotel Occupancy Tax |
0.4 | |||||||
|
|
|||||||
Total Revenue Bonds |
72.3 | % | ||||||
Certificates of Participation |
12.7 | |||||||
General Obligation |
11.0 | |||||||
Tax Allocation |
2.3 | |||||||
Special Tax |
0.9 | |||||||
U.S. Government Agency Securities |
0.5 | |||||||
Repurchase Agreements |
0.2 | |||||||
Special Assessment |
0.1 | |||||||
|
|
|||||||
Total Investments |
100.0 | % | ||||||
|
|
20 | April 30, 2013 | | Annual Report |
Schedule of Investments
PIMCO California Municipal Income Fund
April 30, 2013 (continued)
Notes to Schedule of Investments:
(a) | Private Placement Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $26,066,029, representing 5.8% of total investments. |
(b) | Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date). |
(c) | 144A Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid. |
(d) | Inverse Floater The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on April 30, 2013. |
(e) | Variable Rate Notes Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on April 30, 2013. |
(f) | Residual Interest Bonds held in Trust Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction. |
(g) | Rates reflect the effective yields at purchase date. |
(h) | Floating Rate Notes for the year ended April 30, 2013: The weighted average daily balance of Floating Rate Notes outstanding during the year ended April 30, 2013 was $31,918,925 at a weighted average interest rate, including fees, of 0.76%. |
(i) | Fair Value Measurements See Note 1(b) in the Notes to Financial Statements. |
Level 1 Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value at 4/30/13 |
|||||||||||||
Investments in Securities Assets | ||||||||||||||||
California Municipal Bonds & Notes |
$ | | $ | 416,113,825 | $ | | $ | 416,113,825 | ||||||||
Other Municipal Bonds & Notes |
| 18,812,730 | | 18,812,730 | ||||||||||||
California Variable Rate Notes |
| 10,242,040 | | 10,242,040 | ||||||||||||
Short-Term Investments |
| 3,097,352 | | 3,097,352 | ||||||||||||
Totals | $ | | $ | 448,265,947 | $ | | $ | 448,265,947 |
At April 30, 2013, there were no transfers between Levels 1 and 2.
A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the year ended April 30, 2013, was as follows:
Beginning Balance 4/30/12 |
Purchases | Sales | Accrued Discount (Premiums) |
Net Realized Gain (Loss) |
Net Change in Unrealized Appreciation/ Depreciation |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance 4/30/13 |
||||||||||||||||||||||||||
Investments in Securities Assets |
|
|||||||||||||||||||||||||||||||||
California Municipal Bonds & Notes |
$ | 627,900 | $ | | $(355,075) | $ | | $ | (554,925 | ) | $ | 282,100 | $ | | $ | | $ | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) and net change in unrealized appreciation/depreciation are reflected on the Statements of Operations.
Annual Report | | April 30, 2013 | 21 |
Schedule of Investments
PIMCO California Municipal Income Fund
April 30, 2013 (continued)
(j) | Financial Derivative Instruments |
The effect of derivatives on the Statement of Operations for the year ended April 30, 2013:
Location | Interest Rate Contracts |
|||
Net realized loss on: | ||||
Futures contracts |
$ | (646,907 | ) | |
|
|
|||
Net change in unrealized appreciation/depreciation of: | ||||
Futures contracts |
$ | 281,284 | ||
|
|
The average volume (measured at each fiscal quarter-end) of derivative activity during the year ended April 30, 2013:
Futures Contracts Short(1) | ||
California Municipal | (8) |
(1) | Number of Contracts |
Glossary:
AGC | - | insured by Assured Guaranty Corp. | ||||
AGM | - | insured by Assured Guaranty Municipal Corp. | ||||
AMBAC | - | insured by American Municipal Bond Assurance Corp. | ||||
CA Mtg. Ins. | - | insured by California Mortgage Insurance | ||||
CP | - | Certificates of Participation | ||||
FGIC | - | insured by Financial Guaranty Insurance Co. | ||||
FHA | - | insured by Federal Housing Administration | ||||
GO | - | General Obligation Bond | ||||
IBC | - | Insurance Bond Certificate | ||||
NPFGC | - | insured by National Public Finance Guarantee Corp. | ||||
TCRS | - | Temporary Custodian Receipts |
22 | Annual Report | | April 30. 2013 | | See accompanying Notes to Financial Statements |
Schedule of Investments
PIMCO New York Municipal Income Fund
April 30, 2013
Principal Amount (000s) |
Value | |||||||||
New York Municipal Bonds & Notes 96.3% | ||||||||||
$ | 1,600 | Erie Cnty. Industrial Dev. Agcy. Rev., Orchard Park, Inc. Project, 6.00%, 11/15/36, Ser. A |
$ | 1,629,440 | ||||||
Hudson Yards Infrastructure Corp. Rev., Ser. A, | ||||||||||
3,000 | 5.25%, 2/15/47 | 3,400,710 | ||||||||
4,000 | 5.75%, 2/15/47 | 4,700,640 | ||||||||
Liberty Dev. Corp. Rev., | ||||||||||
1,500 | Bank of America Tower at One Bryant Park Project, 6.375%, 7/15/49 |
1,803,105 | ||||||||
120 | Goldman Sachs Headquarters, 5.25%, 10/1/35 |
143,052 | ||||||||
11,290 | Goldman Sachs Headquarters, 5.25%, 10/1/35 (b) |
13,458,809 | ||||||||
1,925 | Goldman Sachs Headquarters, 5.50%, 10/1/37 |
2,393,064 | ||||||||
Long Island Power Auth. Rev., Ser. A, | ||||||||||
750 | 5.00%, 9/1/34 (AMBAC) | 773,618 | ||||||||
4,500 | 5.75%, 4/1/39 | 5,271,930 | ||||||||
1,000 | Metropolitan Transportation Auth. Rev., 5.00%, 11/15/43, Ser. B | 1,117,900 | ||||||||
1,600 | Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A |
960,848 | ||||||||
3,500 | New York City Health & Hospital Corp. Rev., 5.00%, 2/15/30, Ser. A | 3,979,500 | ||||||||
New York City Industrial Dev. Agcy. Rev., | ||||||||||
1,000 | Liberty Interactive Corp., 5.00%, 9/1/35 |
1,043,000 | ||||||||
900 | Pilot Queens Baseball Stadium, 6.50%, 1/1/46 (AGC) |
1,041,525 | ||||||||
3,200 | Yankee Stadium, 7.00%, 3/1/49 (AGC) |
3,948,896 | ||||||||
5,000 | New York City Transitional Finance Auth. Rev., 5.25%, 1/15/39, Ser. S-3 | 5,827,150 | ||||||||
New York City Water & Sewer System Rev., | ||||||||||
2,500 | 5.00%, 6/15/40, Ser. FF-2 | 2,790,750 | ||||||||
5,000 | Second Generation Resolutions, 4.75%, 6/15/35, Ser. DD (b) |
5,488,750 | ||||||||
2,000 | Second Generation Resolutions, 5.00%, 6/15/32, Ser. HH |
2,325,300 | ||||||||
New York Liberty Dev. Corp. Rev., | ||||||||||
2,000 | 1 World Trade Center Project, 5.00%, 12/15/41 |
2,267,560 | ||||||||
6,000 | 4 World Trade Center Project, 5.75%, 11/15/51 |
7,114,860 | ||||||||
1,000 | Niagara Falls Public Water Auth. Water & Sewer Rev., 5.00%, 7/15/34, Ser. A (NPFGC) |
1,006,530 | ||||||||
600 | Onondaga Cnty. Rev., Syracuse Univ. Project, 5.00%, 12/1/36 | 684,792 | ||||||||
Port Auth. of New York & New Jersey Rev., | ||||||||||
4,300 | 5.00%, 9/1/38, Ser. 132 | 4,393,138 | ||||||||
1,000 | JFK International Air Terminal, 6.00%, 12/1/36 |
1,189,280 | ||||||||
State Dormitory Auth. Rev., | ||||||||||
500 | 5.00%, 7/1/35, Ser. A | 563,990 | ||||||||
1,000 | 5.00%, 3/15/38, Ser. A | 1,131,520 | ||||||||
1,110 | 5.00%, 3/15/42, Ser. B | 1,264,978 | ||||||||
2,850 | 5.00%, 7/1/42, Ser. A | 3,261,740 | ||||||||
1,000 | Fordham Univ., 5.50%, 7/1/36, Ser. A |
1,160,110 | ||||||||
2,000 | Mount Sinai Hospital, 5.00%, 7/1/31, Ser. A |
2,215,780 | ||||||||
1,300 | Mount Sinai School of Medicine, 5.125%, 7/1/39 |
1,408,615 | ||||||||
4,500 | New York Univ., 5.00%, 7/1/38, Ser. C |
5,083,290 | ||||||||
1,225 | NYU Hospitals Center, 6.00%, 7/1/40, Ser. A |
1,464,549 |
Annual Report | | April 30, 2013 | 23 |
Schedule of Investments
PIMCO New York Municipal Income Fund
April 30, 2013 (continued)
Principal Amount (000s) |
Value | |||||||||
$ | 1,000 | Pratt Institute, 5.125%, 7/1/39, Ser. C (AGC) |
$ | 1,091,050 | ||||||
2,500 | Sloan-Kettering Center Memorial, 4.50%, 7/1/35, Ser. A-1 |
2,657,075 | ||||||||
3,850 | Sloan-Kettering Center Memorial, 5.00%, 7/1/34, Ser. 1 |
3,879,799 | ||||||||
1,800 | Teachers College, 5.50%, 3/1/39 |
1,979,244 | ||||||||
1,250 | The New School, 5.50%, 7/1/40 |
1,423,200 | ||||||||
State Thruway Auth. Rev., Ser. I, | ||||||||||
2,000 | 5.00%, 1/1/37 | 2,255,840 | ||||||||
3,645 | 5.00%, 1/1/42 | 4,070,517 | ||||||||
1,800 | State Urban Dev. Corp. Rev., 5.00%, 3/15/36, Ser. B-1 (b) | 2,038,842 | ||||||||
3,000 | Triborough Bridge & Tunnel Auth. Rev., 5.25%, 11/15/34, Ser. A-2 (b) | 3,516,870 | ||||||||
3,000 | Troy Capital Res. Corp. Rev., Rensselaer Polytechnic Institute Project, 5.125%, 9/1/40, Ser. A |
3,320,730 | ||||||||
5,860 | Troy Industrial Dev. Auth. Rev., Rensselaer Polytechnic Institute Project, 4.625%, 9/1/26 |
6,626,078 | ||||||||
TSACS, Inc. Rev., Ser. 1, | ||||||||||
3,000 | 5.00%, 6/1/26 | 2,985,660 | ||||||||
3,000 | 5.00%, 6/1/34 | 2,740,680 | ||||||||
1,455 | 5.125%, 6/1/42 | 1,297,205 | ||||||||
2,945 | Warren & Washington Cntys. Industrial Dev. Agcy. Rev., Glens Falls Hospital Project, 5.00%, 12/1/27, Ser. C (AGM) | 2,986,583 | ||||||||
910 | Westchester Cnty. Healthcare Corp. Rev., 6.125%, 11/1/37, Ser. C-2 | 1,069,550 | ||||||||
200 | Yonkers Economic Dev. Corp. Rev., Charter School of Educational Excellence Project, 6.00%, 10/15/30, Ser. A |
212,052 | ||||||||
400 | Yonkers Industrial Dev. Agcy. Rev., Sarah Lawrence College Project, 6.00%, 6/1/41, Ser. A |
455,484 | ||||||||
Total New York Municipal Bonds & Notes (cost-$127,571,916) | 140,915,178 | |||||||||
Other Municipal Bonds & Notes 2.1% | ||||||||||
Ohio 1.7% | ||||||||||
Buckeye Tobacco Settlement Financing Auth. Rev., Ser. A-2, | ||||||||||
2,000 | 5.875%, 6/1/47 | 1,779,660 | ||||||||
750 | 6.50%, 6/1/47 | 727,005 | ||||||||
2,506,665 | ||||||||||
U. S. Virgin Islands 0.4% | ||||||||||
500 | Virgin Islands Public Finance Auth. Rev., 5.00%, 10/1/39, Ser. A-1 | 530,915 | ||||||||
Total Other Municipal Bonds & Notes (cost-$2,723,130) | 3,037,580 | |||||||||
Repurchase Agreements 1.6% | ||||||||||
2,300 | Citigroup Global Markets, Inc., dated 4/30/13, 0.18%, due 5/1/13, proceeds $2,300,012; collateralized by U.S. Treasury Notes, 2.125%, due 2/29/16, valued at $2,347,867 including accrued interest (cost-$2,300,000) | 2,300,000 | ||||||||
Total Investments (cost-$132,595,046) 100.0% | $ | 146,252,758 |
24 | April 30, 2013 | | Annual Report |
Schedule of Investments
PIMCO New York Municipal Income Fund
April 30, 2013 (continued)
Industry classification of portfolio holdings as a percentage of total investments at April 30, 2013 was as follows:
Revenue Bonds: |
||||||||
College & University Revenue |
18.5 | % | ||||||
Miscellaneous Revenue |
14.2 | |||||||
Health, Hospital & Nursing Home Revenue |
12.2 | |||||||
Industrial Revenue |
9.8 | |||||||
Water Revenue |
7.9 | |||||||
Highway Revenue Tolls |
6.7 | |||||||
Tobacco Settlement Funded |
6.5 | |||||||
Miscellaneous Taxes |
5.5 | |||||||
Port, Airport & Marina Revenue |
5.4 | |||||||
Electric Power & Light Revenue |
4.1 | |||||||
Income Tax Revenue |
3.0 | |||||||
Recreational Revenue |
2.7 | |||||||
Transit Revenue |
0.8 | |||||||
Economic Development Revenue |
0.7 | |||||||
Tobacco & Liquor Taxes |
0.4 | |||||||
|
|
|||||||
Total Revenue Bonds |
98.4 | % | ||||||
Repurchase Agreements |
1.6 | |||||||
|
|
|||||||
Total Investments |
100.0 | % | ||||||
|
|
Notes to Schedule of Investments:
(a) | Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date). |
(b) | Residual Interest Bonds held in Trust Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction. |
(c) | Floating Rate Notes for the year ended April 30, 2013: The weighted average daily balance of Floating Rate Notes outstanding during the year ended April 30, 2013 was $10,476,876 at a weighted average interest rate, including fees, of 0.54%. |
(d) | Fair Value Measurements See Note 1(b) in the Notes to Financial Statements. |
Level 1 Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value at 4/30/13 |
|||||||||||||
Investments in Securities Assets | ||||||||||||||||
New York Municipal Bonds & Notes |
$ | | $ | 140,915,178 | $ | | $ | 140,915,178 | ||||||||
Other Municipal Bonds & Notes |
| 3,037,580 | | 3,037,580 | ||||||||||||
Repurchase Agreements |
| 2,300,000 | | 2,300,000 | ||||||||||||
Totals | $ | | $ | 146,252,758 | $ | | $ | 146,252,758 |
At April 30, 2013, there were no transfers between Levels 1 and 2.
Annual Report | | April 30, 2013 | 25 |
Schedule of Investments
PIMCO New York Municipal Income Fund
April 30, 2013 (continued)
(e) | Financial Derivative Instruments |
The effect of derivatives on the Statement of Operations for the year ended April 30, 2013:
Location | Interest Rate Contracts |
|||
Net realized loss on: | ||||
Futures contracts |
$ | (161,727 | ) | |
|
|
|||
Net change in unrealized appreciation/depreciation of: | ||||
Futures contracts |
$ | 70,321 | ||
|
|
The average volume (measured at each fiscal quarter-end) of derivative activity during the year ended April 30, 2013:
Futures Contracts Short(1) |
||||
New York Municipal |
(2 | ) |
(1) | Number of Contracts |
Glossary:
AGC | - | insured by Assured Guaranty Corp. | ||||
AGM | - | insured by Assured Guaranty Municipal Corp. | ||||
AMBAC | - | insured by American Municipal Bond Assurance Corp. | ||||
NPFGC | - | insured by National Public Finance Guarantee Corp. |
26 | Annual Report | | April 30, 2013 | | See accompanying Notes to Financial Statements |
Statements of Assets and Liabilities
PIMCO Municipal Income Funds
April 30, 2013
Municipal | California Municipal |
New York Municipal |
||||||||||||||||
Assets: | ||||||||||||||||||
Investments, at value (cost-$482,452,700, $391,531,884 and $132,595,046, respectively) |
$550,953,551 | $448,265,947 | $146,252,758 | |||||||||||||||
Cash |
563,835 | 516,828 | 532,520 | |||||||||||||||
Interest receivable |
8,923,883 | 7,347,327 | 1,900,102 | |||||||||||||||
Receivable for investments sold |
10,000 | | 774,443 | |||||||||||||||
Prepaid expenses and other assets |
114,412 | 44,993 | 1,912,005 | |||||||||||||||
Total Assets |
560,565,681 | 456,175,095 | 151,371,828 | |||||||||||||||
Liabilities: | ||||||||||||||||||
Payable for Floating Rate Notes issued |
15,563,277 | 31,765,500 | 10,476,876 | |||||||||||||||
Payable for investments purchased |
4,290,058 | | 739,593 | |||||||||||||||
Dividends payable to common and preferred shareholders |
2,066,161 | 1,430,559 | 441,598 | |||||||||||||||
Investment management fees payable |
286,682 | 224,657 | 74,135 | |||||||||||||||
Interest payable |
28,030 | 55,397 | 21,007 | |||||||||||||||
Accrued expenses and other liabilities |
169,371 | 301,254 | 109,935 | |||||||||||||||
Total Liabilities |
22,403,579 | 33,777,367 | 11,863,144 | |||||||||||||||
Preferred Shares ($0.00001 par value and $25,000 liquidation preference per share applicable to an aggregate of 7,600, 6,000 and 1,880 shares issued and outstanding, respectively) | 190,000,000 | 150,000,000 | 47,000,000 | |||||||||||||||
Net Assets Applicable to Common Shareholders | $348,162,102 | $272,397,728 | $92,508,684 | |||||||||||||||
Composition of Net Assets Applicable to Common Shareholders: |
||||||||||||||||||
Common Shares (no par value): |
||||||||||||||||||
Paid-in-capital |
$332,607,731 | $244,293,983 | $97,474,479 | |||||||||||||||
Undistributed net investment income |
4,564,423 | 11,490,816 | 2,096,304 | |||||||||||||||
Accumulated net realized loss |
(57,530,743) | (40,418,311) | (20,952,067) | |||||||||||||||
Net unrealized appreciation |
68,520,691 | 57,031,240 | 13,889,968 | |||||||||||||||
Net Assets Applicable to Common Shareholders | $348,162,102 | $272,397,728 | $92,508,684 | |||||||||||||||
Common Shares Issued and Outstanding |
25,324,015 | 18,517,531 | 7,684,606 | |||||||||||||||
Net Asset Value Per Common Share | $13.75 | $14.71 | $12.04 |
See accompanying Notes to Financial Statements | | April 30, 2013 | | Annual Report | 27 |
PIMCO Municipal Income Funds
Year ended April 30, 2013
Municipal | California Municipal |
New York Municipal |
||||||||||||||||
Investment Income: | ||||||||||||||||||
Interest |
$28,205,333 | $22,431,722 | $6,607,926 | |||||||||||||||
Expenses: | ||||||||||||||||||
Investment management |
3,466,536 | 2,695,527 | 898,151 | |||||||||||||||
Auction agent and commissions |
315,645 | 243,915 | 77,577 | |||||||||||||||
Interest |
112,844 | 243,738 | 56,260 | |||||||||||||||
Custodian and accounting agent |
108,009 | 93,862 | 52,683 | |||||||||||||||
Audit and tax services |
70,050 | 63,280 | 44,284 | |||||||||||||||
Shareholder communications |
42,462 | 28,886 | 26,732 | |||||||||||||||
Trustees |
40,987 | 32,232 | 10,082 | |||||||||||||||
Transfer agent |
37,338 | 37,068 | 36,273 | |||||||||||||||
New York Stock Exchange listing |
14,815 | 14,772 | 21,175 | |||||||||||||||
Insurance |
13,661 | 11,379 | 6,294 | |||||||||||||||
Legal |
8,378 | 7,290 | 6,965 | |||||||||||||||
Miscellaneous |
14,033 | 13,259 | 12,841 | |||||||||||||||
Total Expenses |
4,244,758 | 3,485,208 | 1,249,317 | |||||||||||||||
Less: investment management fees waived |
(43,441) | (33,869) | (11,285) | |||||||||||||||
custody credits earned on cash balances |
(2,502) | (4,758) | (1,885) | |||||||||||||||
Net Expenses |
4,198,815 | 3,446,581 | 1,236,147 | |||||||||||||||
Net Investment Income | 24,006,518 | 18,985,141 | 5,371,779 | |||||||||||||||
Realized and Change in Unrealized Gain (Loss): | ||||||||||||||||||
Net realized gain (loss) on: |
||||||||||||||||||
Investments |
1,979,685 | 1,415,386 | 971,314 | |||||||||||||||
Futures contracts |
(808,634) | (646,907) | (161,727) | |||||||||||||||
Net change in unrealized appreciation/depreciation of: |
||||||||||||||||||
Investments |
20,145,208 | 15,187,906 | 4,185,306 | |||||||||||||||
Futures contracts |
351,605 | 281,284 | 70,321 | |||||||||||||||
Net realized and change in unrealized gain |
21,667,864 | 16,237,669 | 5,065,214 | |||||||||||||||
Net Increase in Net Assets Resulting from Investment Operations | 45,674,382 | 35,222,810 | 10,436,993 | |||||||||||||||
Dividends on Preferred Shares from Net Investment Income | (471,161) | (372,583) | (116,375) | |||||||||||||||
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Investment Operations | $45,203,221 | $34,850,227 | $10,320,618 |
28 | Annual Report | | April 30, 2013 | | See accompanying Notes to Financial Statements |
[THIS PAGE INTENTIONALLY LEFT BLANK]
Annual Report | | April 30, 2013 | 29 |
Statements of Changes in Net Assets
Applicable to Common Shareholders
PIMCO Municipal Income Funds
Municipal | ||||||||||||
Year ended April 30, 2013 |
Year ended April 30, 2012 |
|||||||||||
Investment Operations: | ||||||||||||
Net investment income |
$24,006,518 | $25,313,915 | ||||||||||
Net realized gain (loss) |
1,171,051 | (3,383,329) | ||||||||||
Net change in unrealized appreciation/depreciation |
20,496,813 | 58,651,802 | ||||||||||
Net increase in net assets resulting from investment operations |
45,674,382 | 80,582,388 | ||||||||||
Dividends on Preferred Shares from Net Investment Income | (471,161) | (438,548) | ||||||||||
Net increase in net assets applicable to common shareholders resulting from investment operations |
45,203,221 | 80,143,840 | ||||||||||
Dividends to Common Shareholders from Net Investment Income | (24,664,665) | (24,597,218) | ||||||||||
Common Share Transactions: | ||||||||||||
Reinvestment of dividends |
882,792 | 1,278,223 | ||||||||||
Total increase in net assets applicable to common shareholders |
21,421,348 | 56,824,845 | ||||||||||
Net Assets Applicable to Common Shareholders: | ||||||||||||
Beginning of year |
326,740,754 | 269,915,909 | ||||||||||
End of year* |
$348,162,102 | $326,740,754 | ||||||||||
*Including undistributed net investment income of: |
$4,564,423 | $5,599,470 | ||||||||||
Common Shares Issued in Reinvestment of Dividends | 58,080 | 98,255 |
30 | Annual Report | | April 30, 2013 | | See accompanying Notes to Financial Statements |
Statements of Changes in Net Assets
Applicable to Common Shareholders (continued)
PIMCO Municipal Income Funds
California Municipal | New York Municipal | |||||||||||||||||
Year ended April 30, 2013 |
Year ended April 30, 2012 |
Year ended April 30, 2013 |
Year ended April 30, 2012 |
|||||||||||||||
$18,985,141 | $20,030,549 | $5,371,779 | $5,719,322 | |||||||||||||||
768,479 | (11,194,239) | 809,587 | (881,234) | |||||||||||||||
15,469,190 | 53,279,271 | 4,255,627 | 11,620,949 | |||||||||||||||
35,222,810 | 62,115,581 | 10,436,993 | 16,459,037 | |||||||||||||||
(372,583) | (347,737) | (116,375) | (107,654) | |||||||||||||||
34,850,227 |
61,767,844 | 10,320,618 | 16,351,383 | |||||||||||||||
(17,087,147) | (17,034,147) | (5,248,148) | (5,232,071) | |||||||||||||||
764,404 | 989,256 | 310,460 | 278,520 | |||||||||||||||
18,527,484 | 45,722,953 | 5,382,930 | 11,397,832 | |||||||||||||||
253,870,244 | 208,147,291 | 87,125,754 | 75,727,922 | |||||||||||||||
$272,397,728 | $253,870,244 | $92,508,684 | $87,125,754 | |||||||||||||||
$11,490,816 | $9,754,846 | $2,096,304 | $2,307,100 | |||||||||||||||
51,253 | 79,651 | 25,935 | 26,484 |
See accompanying Notes to Financial Statements | | April 30, 2013 | | Annual Report | 31 |
PIMCO Municipal Income Funds
April 30, 2013
1. Organization and Significant Accounting Policies
PIMCO Municipal Income Fund (Municipal), PIMCO California Municipal Income Fund (California Municipal) and PIMCO New York Municipal Income Fund (New York Municipal), (each a Fund and collectively referred to as the Funds or PIMCO Municipal Income Funds) were organized as Massachusetts business trusts on May 10, 2001. Prior to commencing operations on June 29, 2001, the Funds had no operations other than matters relating to their organization and registration as non-diversified, closed-end management investment companies registered under the Investment Company Act of 1940 and the rules and regulations thereunder, as amended. Allianz Global Investors Fund Management LLC (the Investment Manager) and Pacific Investment Management Company LLC (PIMCO or the Sub-Adviser) serve as the Funds investment manager and sub-adviser, respectively, and are indirect, wholly-owned subsidiaries of Allianz Asset Management of America L.P. (AAM). AAM is an indirect, wholly-owned subsidiary of Allianz SE, a publicly traded European insurance and financial services company. Each Fund has an unlimited amount of no par value per common share authorized.
Under normal market conditions, Municipal invests substantially all of its assets in a portfolio of municipal bonds, the interest from which is exempt from U.S. federal income taxes. Under normal market conditions, California Municipal invests substantially all of its assets in municipal bonds which pay interest that is exempt from federal and California state income taxes. Under normal market conditions, New York Municipal invests substantially all of its assets in municipal bonds which pay interest that is exempt from federal, New York State and New York City
income taxes. There can be no assurance that the Funds will meet their stated objectives. The Funds will generally seek to avoid investing in bonds generating interest income which could potentially subject individuals to alternative minimum tax. The issuers abilities to meet their obligations may be affected by economic and political developments in a specific state or region.
The preparation of the Funds financial statements in accordance with accounting principles generally accepted in the United States of America requires the Funds management to make estimates and assumptions that affect the reported amounts and disclosures in each Funds financial statements. Actual results could differ from those estimates.
In the normal course of business, the Funds enter into contracts that contain a variety of representations that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2011-11, Disclosures About Offsetting Assets and Liabilities, as amended in January 2013 by the issued ASU No. 2013-01, which requires enhanced disclosures that will enable users to evaluate the effect or potential effect of netting arrangements on an entitys financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. The amendments are effective for fiscal years beginning on or after January 1, 2013. Funds management is currently evaluating the effect that the guidance may have on the Funds financial statements.
32 | April 30, 2013 | | Annual Report |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
1. Organization and Significant Accounting Policies (continued)
The following is a summary of significant accounting policies consistently followed by the Funds:
(a) Valuation of Investments
Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services. The Funds investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.
The Board of Trustees (the Board) has adopted procedures for valuing portfolio securities and other financial derivative instruments in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Investment Manager and Sub-Adviser. The Funds Valuation Committee was established by the Board to oversee the implementation of the Funds valuation methods and to make fair value determinations on behalf of the Board, as instructed. The Sub-Adviser monitors the continued appropriateness of methods applied and determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Sub-Adviser determines that a valuation method may no
longer be appropriate, another valuation method may be selected, or the Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Valuation Committee.
Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.
The prices used by the Funds to value investments may differ from the value that would be realized if the investments were sold, and these differences could be material to the Funds financial statements. Each Funds net asset value (NAV) is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open for business.
(b) Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the exit price) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:
n | Level 1 quoted prices in active markets for identical investments that the Funds have the ability to access |
n | Level 2 valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, |
Annual Report | | April 30, 2013 | 33 |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
1. Organization and Significant Accounting Policies (continued)
credit risks and default rates or other market corroborated inputs |
n | Level 3 valuations based on significant unobservable inputs (including the Sub-Advisers or Valuation Committees own assumptions and single broker quotes in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Funds generally use to evaluate how to classify each major category of assets and liabilities for Level 2 and Level 3, in accordance with Generally Accepted Accounting Principles (GAAP).
Municipal Bonds & Notes and Variable Rate Notes Municipal bonds & notes and variable rate notes are valued by independent pricing services based on pricing models that take into account, among other factors, information received from market makers and broker-dealers, current trades, bid-want lists, offerings, market movements, the callability of the bond, state of issuance, benchmark yield curves, and bond or note insurance. To the extent that these inputs are observable, the values of municipal bonds & notes and variable rate notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
The valuation techniques used by the Funds to measure fair value during the year ended April 30, 2013 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.
The Funds policy is to recognize transfers between levels at the end of the reporting period. An investment assets or liabilitys level
within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used. Investments categorized as Level 1 or 2 as of period end may have been transferred between Levels 1 and 2 since the prior period due to changes in the valuation method utilized in valuing the investments.
(c) Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on an identified cost basis. Interest income adjusted for the accretion of discount and amortization of premiums is recorded on an accrual basis. Discounts or premiums on debt securities purchased are accreted or amortized, respectively, to interest income.
(d) Federal Income Taxes
The Funds intend to distribute all of their taxable income and to comply with the other requirements of Subchapter M of the U.S. Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required.
Accounting for uncertainty in income taxes establishes for all entities, including pass-through entities such as the Funds, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. Funds management has determined that its evaluation of the positions taken in the tax returns has resulted in
34 | April 30, 2013 | | Annual Report |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
1. Organization and Significant Accounting Policies (continued)
no material impact to the Funds financial statements at April 30, 2013. The federal income tax returns for the prior three years remain subject to examination by the Internal Revenue Service.
(e) Dividends and Distributions Common Shares
The Funds declare dividends from net investment income to common shareholders monthly. Distributions of net realized capital gains, if any, are paid at least annually. The Funds record dividends and distributions on the ex-dividend date. The amount of dividends from net investment income and distributions from net realized capital gains is determined in accordance with federal income tax regulations, which may differ from GAAP. These book-tax differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment; temporary differences do not require reclassification. To the extent dividends and/or distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as dividends and/or distributions to shareholders from return of capital.
(f) Inverse Floating Rate TransactionsResidual Interest Municipal Bonds (RIBs)/Residual Interest Tax Exempt Bonds (RITEs)
The Funds invest in RIBs and RITEs (Inverse Floaters), whose interest rates bear an inverse relationship to the interest rate on another security or the value of an index. In inverse floating rate transactions, the Funds sell a fixed rate municipal bond (Fixed Rate Bond) to a broker who places the Fixed Rate Bond in a special purpose trust (Trust) from which
floating rate bonds (Floating Rate Notes) and Inverse Floaters are issued. The Funds simultaneously or within a short period of time, purchase the Inverse Floaters from the broker. The Inverse Floaters held by the Funds provide the Funds with the right to: (1) cause the holders of the Floating Rate Notes to tender their notes at par, and (2) cause the broker to transfer the Fixed-Rate Bond held by the Trust to the Funds, thereby collapsing the Trust. The Funds account for the transaction described above as a secured borrowing by including the Fixed Rate Bond in their Schedules of Investments, and account for the Floating Rate Notes as a liability under the caption Payable for Floating Rate Notes issued in the Funds Statements of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date.
The Funds may also invest in Inverse Floaters without transferring a fixed rate municipal bond into a Trust, which are not accounted for as secured borrowings. The Funds may also invest in Inverse Floaters for the purpose of increasing leverage.
The Inverse Floaters are created by dividing the income stream provided by the underlying bonds to create two securities, one short-term and one long-term. The interest rate on the short-term component is reset by an index or auction process typically every 7 to 35 days. After income is paid on the short-term securities at current rates, the residual income from the underlying bond(s) goes to the long-term securities. Therefore, rising short-term rates result in lower income for the long-term component and vice versa. The longer-term bonds may be more volatile and less liquid than other municipal bonds of comparable maturity. Investments in Inverse Floaters typically will involve greater risk than in an investment in Fixed Rate Bonds.
Annual Report | | April 30, 2013 | 35 |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
1. Organization and Significant Accounting Policies (continued)
In addition to general market risks, the Funds investments in Inverse Floaters may involve greater risk and volatility than an investment in a fixed rate bond, and the value of Inverse Floaters may decrease significantly when market interest rates increase. Inverse Floaters have varying degrees of liquidity, and the market for these securities may be volatile. These securities tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Although volatile, Inverse Floaters typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality, coupon, call provisions and maturity. Trusts in which Inverse Floaters may be held could be terminated due to market, credit or other events beyond the Funds control, which could require the Funds to reduce leverage and dispose of portfolio investments at inopportune times and prices.
(g) Repurchase Agreements
The Funds enter into transactions with their custodian bank or securities brokerage firms whereby they purchase securities under agreements to resell such securities at an agreed upon price and date (repurchase agreements). The Funds, through their custodian, take possession of securities collateralizing the repurchase agreement. Such agreements are carried at the contract amount in the financial statements, which is considered to represent fair value. Collateral pledged (the securities received), which consists primarily of U.S. government obligations and asset-backed securities, is held by the custodian bank for the benefit of the Funds until maturity of the repurchase agreement. Provisions of the repurchase agreements and the procedures adopted by the Funds require that the market
value of the collateral, including accrued interest thereon, be sufficient in the event of default by the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited.
(h) U.S. Government Agencies or Government-Sponsored Enterprises
Securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury. The Government National Mortgage Association (GNMA or Ginnie Mae), a wholly-owned U.S. Government corporation, is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Government-related guarantors not backed by the full faith and credit of the U.S. Government include the Federal National Mortgage Association (FNMA or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac). Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but its participation certificates are not backed by the full faith and credit of the U.S. Government.
(i) Restricted Securities
The Funds are permitted to invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may
36 | April 30, 2013 | | Annual Report |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
1. Organization and Significant Accounting Policies (continued)
involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult.
(j) Interest Expense
Interest expense primarily relates to the Funds participation in Floating Rate Notes held by third parties in conjunction with Inverse Floater transactions.
(k) Custody Credits on Cash Balances
The Funds may benefit from an expense offset arrangement with their custodian bank, whereby uninvested cash balances may earn credits that reduce monthly custodian and accounting agent expenses. Had these cash balances been invested in income-producing securities, they would have generated income for the Funds. Cash overdraft charges, if any, are included in custodian and accounting agent fees.
2. Principal Risks
In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to, among other things, changes in the market (market risk) or failure of the other party to a transaction to perform (counterparty risk). The Funds are also exposed to other risks such as, but not limited to, interest rate, credit and leverage risks.
Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by the Funds are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually
making them more volatile than securities with shorter durations. Duration is used primarily as a measure of the sensitivity of a fixed income securitys market price to interest rate (i.e. yield) movements.
Variable and floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. Inverse floating rate securities may decrease in value if interest rates increase. Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When a Fund holds variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the NAV of the Funds shares.
The Funds are exposed to credit risk, which is the risk of losing money if the issuer or guarantor of a fixed income security is unable or unwilling, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or unwilling, to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings.
The market values of securities may decline due to general market conditions (market risk) which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an
Annual Report | | April 30, 2013 | 37 |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
2. Principal Risks (continued)
industry. Equity securities and equity-related investments generally have greater market price volatility than fixed income securities.
The Funds are exposed to counterparty risk, or the risk that an institution or other entity with which the Funds have unsettled or open transactions will default. The potential loss to the Funds could exceed the value of the financial assets recorded in the Funds financial statements. Financial assets, which potentially expose the Funds to counterparty risk, consist principally of cash due from counterparties and investments. The Sub-Adviser seeks to minimize the Funds counterparty risk by performing reviews of each counterparty and by minimizing concentration of counterparty risk by undertaking transactions with multiple customers and counterparties on recognized and reputable exchanges. Delivery of securities sold is only made once the Funds have received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
The Funds are exposed to risks associated with leverage. Leverage may cause the value of the Funds shares to be more volatile than if the Funds did not use leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Funds portfolio securities. The Funds may engage in transactions or purchase instruments that give rise to forms of leverage. In addition, to the extent the Funds employ leverage, dividend and interest costs may not be recovered by any appreciation of the securities purchased with the leverage proceeds and could exceed the Funds investment returns, resulting in greater losses.
The Funds are party to International Swaps and Derivatives Association, Inc. Master Agreements
(ISDA Master Agreements) with select counterparties that govern transactions, over-the-counter derivatives and foreign exchange contracts entered into by the Funds and those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements of the Funds.
The considerations and factors surrounding the settlement of certain purchases and sales made on a delayed-delivery basis are governed by Master Securities Forward Transaction Agreements (Master Forward Agreements) between the Funds and select counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.
The Funds are also a party to Master Repurchase Agreements (Master Repo Agreements) with select counterparties. The Master Repo Agreements maintain provisions for initiation, income payments, events of default, and maintenance of collateral.
3. Financial Derivative Instruments
Disclosure about derivatives and hedging activities requires qualitative disclosure regarding objectives and strategies for using derivatives, quantitative disclosure about fair value amounts of gains and losses on derivatives, and disclosure about credit-risk-related contingent features in derivative agreements. The disclosure requirements distinguish between derivatives, which are accounted for as
38 | April 30, 2013 | | Annual Report |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
3. Financial Derivative Instruments (continued)
hedges, and those that do not qualify for such accounting. Although the Funds at times use derivatives for hedging purposes, the Funds reflect derivatives at fair value and recognize changes in fair value through the Funds Statement of Operations, and such derivatives do not qualify for hedge accounting treatment.
(a) Futures Contracts
The Funds use futures contracts to manage their exposure to the securities markets or the movements in interest rates and currency values. A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into such a contract, the Funds are required to pledge to the broker an amount of cash or securities equal to the minimum initial margin requirements of the exchange. Pursuant to the contracts, the Funds agree to receive from or pay to the broker an amount of cash or securities equal to the daily fluctuation in the value of the contracts. Such receipts or payments are known as variation margin and are recorded by the Funds as unrealized appreciation or depreciation. When the contracts are closed, the Funds record a realized gain or loss equal to the difference between the value of the contracts at the time they were opened and the value at the time they were closed. Any unrealized appreciation or depreciation recorded is simultaneously reversed. The use of futures transactions involves various risks, including the risk of an imperfect correlation in the movements in the price of futures contracts, interest rates and underlying hedging assets, and possible inability or unwillingness of counterparties to meet the terms of their contracts.
4. Investment Manager/Sub-Adviser
Each Fund has an Investment Management Agreement (each an Agreement) with the
Investment Manager. Subject to the supervision of each Funds Board, the Investment Manager is responsible for managing, either directly or through others selected by it, the Funds investment activities, business affairs and administrative matters. Pursuant to each Agreement, the Investment Manager receives an annual fee, payable monthly, at an annual rate of 0.65% of each Funds average daily net assets, inclusive of net assets attributable to any Preferred Shares that were outstanding. For the period July 1, 2011 through June 30, 2012, the Investment Manager voluntarily agreed to waive a portion of its fee for each Fund at the annual rate of 0.05% of each Funds average daily net assets, inclusive of net assets attributable to any Preferred Shares that were outstanding. For the year ended April 30, 2013, each Fund paid investment management fees at an effective rate of 0.64% of each Funds average daily net assets, inclusive of net assets attributable to any Preferred Shares that were outstanding.
The Investment Manager has retained the Sub-Adviser to manage the Funds investments. Subject to the supervision of the Investment Manager, the Sub-Adviser is responsible for making all of the Funds investment decisions. The Investment Manager, not the Funds, pays a portion of the fees it receives as Investment Manager to the Sub-Adviser in return for its services.
Annual Report | | April 30, 2013 | 39 |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
5. Investments in Securities
For the year ended April 30, 2013, purchases and sales of investments, other than short-term securities were:
Municipal | California Municipal |
New York Municipal |
||||||||||
Purchases |
$ | 58,776,355 | $ | 51,953,231 | $ | 23,386,104 | ||||||
Sales |
51,331,223 | 56,609,219 | 24,011,011 |
6. Income Tax Information
The tax character of dividends paid was:
Year ended April 30, 2013 |
Year ended April 30, 2012 |
|||||||||||||||
Ordinary Income |
Tax Exempt Income |
Ordinary Income |
Tax Exempt Income |
|||||||||||||
Municipal |
$ | 363,616 | $ | 24,772,210 | $ | 445,895 | $ | 24,589,871 | ||||||||
California Municipal |
222,475 | 17,237,255 | 243,630 | 17,138,254 | ||||||||||||
New York Municipal |
21,394 | 5,343,129 | 27,309 | 5,312,416 |
At April 30, 2013, the components of distributable earnings were:
Tax Exempt Income |
Capital loss Carryforwards(1) |
Post-October Capital loss(2) | ||||||||||||||
Short-Term | Long-Term | |||||||||||||||
Municipal |
$ | 4,474,903 | $ | 57,992,613 | $ | 13,528 | $ | | ||||||||
California Municipal |
11,279,072 | 38,914,997 | | 108,213 | ||||||||||||
New York Municipal |
2,396,002 | 20,874,269 | | |
(1) | Capital loss carryforwards available as a reduction, to the extent provided in the regulations, of any future net realized gains. To the extent that these losses are used to offset future realized capital gains, such gains will not be disbursed. |
(2) | Capital losses realized during the period November 1, 2012 through April 30, 2013 which the Funds elected to defer to the following taxable year pursuant to income tax regulations. |
Under the Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term capital losses.
At April 30, 2013, capital loss carryforward amounts were:
Year of Expiration | No Expiration(3) | |||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Short-Term | Long-Term | ||||||||||||||||||||||||
Municipal |
1,105,730 | 459,581 | 3,577,024 | 890,721 | 49,231,992 | 2,727,565 | | |||||||||||||||||||||||
California Municipal |
1,951,329 | | | | 23,866,648 | 11,934,075 | 1,162,945 | |||||||||||||||||||||||
New York Municipal |
243,785 | | | 3,099,084 | 16,947,180 | 584,220 | |
(3) | Carryforward amounts are subject to the provisions of the Regulated Investment Company Modernization Act of 2010. |
40 | April 30, 2013 | | Annual Report |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
6. Income Tax Information (continued)
For the year ended April 30, 2013, PIMCO Municipal Income utilized post-enactment capital loss carryforwards of $1,536,184 of which $1,179,188 was short-term and $356,996 was long-term and New York Municipal Income utilized post-enactment of $879,908 which was short-term.
For the year ended April 30, 2013, the Funds had capital loss carryforwards which were expired as follows:
Expired | ||||
Municipal |
12,156,912 | |||
California Municipal |
6,552,094 | |||
New York Municipal |
4,622,781 |
For the year ended April 30, 2013, permanent book-tax adjustments were:
Undistributed Net Investment Income |
Accumulated Net Realized Gain(Loss) |
Paid-in Capital in Excess of Par |
||||||||||
Municipal (a)(b) |
$ | 4,741 | $ | 12,152,171 | $ | (12,156,912 | ) | |||||
California Municipal (a)(b) |
(1,185 | ) | 6,553,279 | (6,552,094 | ) | |||||||
New York Municipal (a)(b) |
81,646 | 4,541,135 | (4,622,781 | ) |
These permanent book-tax differences were primarily attributable to:
(a) Differing treatment of Inverse Floaters
(b) Expiring Capital Loss Carryforwards
Net investment income, net realized gains or losses and net assets were not affected by these adjustments.
At April 30, 2013, the aggregate cost basis and the net unrealized appreciation of investments for federal income tax purposes were:
Cost of Investments |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation |
|||||||||||||
Municipal |
$ | 466,312,046 | $ | 73,563,249 | $ | 4,477,638 | $ | 69,085,611 | ||||||||
California Municipal |
360,456,263 | 55,878,523 | 30,637 | 55,847,886 | ||||||||||||
New York Municipal |
124,094,243 | 14,151,622 | 639,152 | 13,512,470 |
Differences between book and tax cost basis were attributable to Inverse Floater transactions.
7. Auction-Rate Preferred Shares
Municipal has 1,520 shares of Preferred Shares Series A, 1,520 shares of Preferred Shares Series B, 1,520 shares of Preferred Shares Series C, 1,520 shares of Preferred Shares Series D and 1,520 shares of Preferred Shares Series E outstanding, each with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends.
California Municipal has 2,000 shares of Preferred Shares Series A, 2,000 shares of Preferred Shares Series B and 2,000 shares of Preferred Shares Series C outstanding, each with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends.
Annual Report | | April 30, 2013 | 41 |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
7. Auction-Rate Preferred Shares (continued)
New York Municipal has 1,880 shares of Preferred Shares Series A outstanding, with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends.
Dividends are accumulated daily at an annual rate (typically re-set every seven days) through auction procedures (or through default procedures in the event of failed auctions). Distributions of net realized capital gains, if any, are paid annually.
For the year ended April 30, 2013, the annualized dividend rates ranged from:
High | Low | At April 30, 2013 |
||||||||
Municipal: | ||||||||||
Series A |
0.377% | 0.131 | % | 0.361 | % | |||||
Series B |
0.381% | 0.131 | % | 0.377 | % | |||||
Series C |
0.381% | 0.131 | % | 0.377 | % | |||||
Series D |
0.381% | 0.131 | % | 0.377 | % | |||||
Series E |
0.381% | 0.144 | % | 0.361 | % | |||||
California Municipal: | ||||||||||
Series A |
0.377% | 0.131 | % | 0.361 | % | |||||
Series B |
0.381% | 0.131 | % | 0.377 | % | |||||
Series C |
0.381% | 0.144 | % | 0.361 | % | |||||
New York Municipal: | ||||||||||
Series A |
0.381% | 0.131 | % | 0.377 | % |
The Funds are subject to certain limitations and restrictions while Preferred Shares are outstanding. Failure to comply with these limitations and restrictions could preclude the Funds from declaring or paying any dividends or distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of Preferred Shares at their liquidation preference plus any accumulated, unpaid dividends.
Preferred shareholders, who are entitled to one vote per share, generally vote together with the common shareholders but vote separately as a class to elect two Trustees and on any matters affecting the rights of the Preferred Shares.
Since mid-February 2008, holders of auction-rate preferred shares (ARPS) issued by the Funds have been directly impacted by an unprecedented lack of liquidity, which has similarly affected ARPS holders in many of the nations closed-end funds. Since then, regularly scheduled auctions for ARPS issued by the Funds have consistently failed because of insufficient demand (bids to buy shares) to meet the supply (shares offered for sale) at each auction. In a failed auction, ARPS holders cannot sell all, and may not be able to sell any, of their shares tendered for sale. While repeated auction failures have affected the liquidity for ARPS, they do not constitute a default or automatically alter the credit quality of the ARPS, and the ARPS holders have continued to receive dividends at the defined maximum rate equal to the higher of the 30-day AA Composite Commercial Paper Rate multiplied by 110% or the Taxable Equivalent of the Short-Term Municipal Obligations Rate-defined as 90% of the quotient of (A) the per annum rate expressed on an interest equivalent basis equal to the S&P 7-day Index divided by (B) 1.00 minus the Marginal Tax Rate (expressed as a decimal) multiplied by 110%
42 | April 30, 2013 | | Annual Report |
Notes to Financial Statements
PIMCO Municipal Income Funds
April 30, 2013
7. Auction-Rate Preferred Shares (continued)
(which is a function of short-term interest rates and typically higher than the rate that would have otherwise been set through a successful auction). If the Funds ARPS auctions continue to fail and the maximum rate payable on the ARPS rises as a result of changes in short-term interest rates, returns for the Funds common shareholders could be adversely affected.
In the Fall of 2012, S&P Evaluation Services announced that it would discontinue providing the S&P Weekly High Grade Municipal Bond Index (formerly, the Kenny S&P 30-Day High Grade Municipal Bond Index) (the Prior Index)
effective January 1, 2013. The Funds Boards approved the use of the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index in replacement of the Prior Index to calculate ARPS dividend rates on and after January 1, 2013, as well as corresponding amendments to the Funds bylaws.
8. Transfer Agent Change
Effective September 17, 2012 (the Effective Date), American Stock Transfer & Trust Company, LLC (AST) assumed responsibility as the Funds transfer agent. The amended Dividend Reinvestment Plan (the Plan) and ASTs role as transfer agent for Participants under the Plan commenced as of the Effective Date.
9. Subsequent Events
In preparing these financial statements, the Funds management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
On May 1, 2013, the following dividends were declared to common shareholders payable June 3, 2013 to shareholders of record on May 13, 2013.
Municipal |
$0.08125 per common share | |
California Municipal |
$0.077 per common share | |
New York Municipal |
$0.057 per common share |
On June 3, 2013, the following dividends were declared to common shareholders payable July 1, 2013 to shareholders of record on June 13, 2013.
Municipal |
$0.08125 per common share | |
California Municipal |
$0.077 per common share | |
New York Municipal |
$0.057 per common share |
There were no other subsequent events that require recognition or disclosure.
Annual Report | | April 30, 2013 | 43 |
PIMCO Municipal Income Fund
For a common share outstanding throughout each year:
Year ended April 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||
Net asset value, beginning of year | $12.93 | $10.72 | $11.76 | $9.38 | $12.96 | |||||||||||||||||||||||||
Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income | 0.95 | 1.01 | 1.07 | 1.18 | 1.13 | |||||||||||||||||||||||||
Net realized and change in unrealized gain (loss) | 0.87 | 2.20 | (1.10 | ) | 2.22 | (3.53 | ) | |||||||||||||||||||||||
Total from investment operations | 1.82 | 3.21 | (0.03 | ) | 3.40 | (2.40 | ) | |||||||||||||||||||||||
Dividends on Preferred Shares from Net Investment Income | (0.02 | ) | (0.02 | ) | (0.03 | ) | (0.04 | ) | (0.20 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets applicable to common shareholders resulting from investment operations | 1.80 | 3.19 | (0.06 | ) | 3.36 | (2.60 | ) | |||||||||||||||||||||||
Dividends to Common Shareholders from Net Investment Income | (0.98 | ) | (0.98 | ) | (0.98 | ) | (0.98 | ) | (0.98 | ) | ||||||||||||||||||||
Net asset value, end of year | $13.75 | $12.93 | $10.72 | $11.76 | $9.38 | |||||||||||||||||||||||||
Market price, end of year | $16.05 | $15.28 | $12.92 | $13.72 | $11.40 | |||||||||||||||||||||||||
Total Investment Return (1) |
11.96 | % | 27.20 | % | 1.54 | % | 30.34 | % | (24.58 | )% | ||||||||||||||||||||
Ratios/Supplemental Data: |
|
|||||||||||||||||||||||||||||
Net assets, applicable to common shareholders, end of year (000s) | $348,162 | $326,741 | $269,916 | $294,457 | $233,507 | |||||||||||||||||||||||||
Ratio of expenses to average net assets, including interest expense (2)(3)(4) | 1.22 | %(5) | 1.28 | %(5) | 1.44 | % | 1.46 | %(5) | 1.64 | %(5) | ||||||||||||||||||||
Ratio of expenses to average net assets, excluding interest expense (2)(3) | 1.19 | %(5) | 1.22 | %(5) | 1.34 | % | 1.34 | %(5) | 1.42 | %(5) | ||||||||||||||||||||
Ratio of net investment income to average net assets (2) | 6.99 | %(5) | 8.42 | %(5) | 9.43 | % | 10.77 | %(5) | 10.65 | %(5) | ||||||||||||||||||||
Preferred shares asset coverage per share | $70,809 | $67,990 | $60,514 | $63,743 | $55,722 | |||||||||||||||||||||||||
Portfolio turnover rate | 9 | % | 18 | % | 15 | % | 11 | % | 60 | % |
(1) | Total investment return is calculated assuming a purchase of a common share at the market price on the first day and a sale of a common share at the market price on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Funds dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges in connection with the purchase or sale of Fund shares. |
(2) | Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders. |
(3) | Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank (See note 1(k) in Notes to Financial Statements). |
(4) | Interest expense relates to the liability for Floating Rate Notes issued in connection with Inverse Floater transactions and/or participation in reverse repurchase agreement transactions. |
(5) | During the years indicated above, the Investment Manager waived a portion of its investment management fee. The effect of such waiver relative to the average net assets of common shareholders was 0.01%, 0.07%, 0.01% and 0.10% for the years ended April 30, 2013, April 30, 2012, April 30, 2010 and April 30, 2009, respectively. |
44 | Annual Report | | April 30, 2013 | | See accompanying Notes to Financial Statements |
Financial Highlights
PIMCO California Municipal Income Fund
For a common share outstanding throughout each year:
Year ended April 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||
Net asset value, beginning of year | $13.75 | $11.32 | $12.84 | $10.61 | $13.62 | |||||||||||||||||||||||||
Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income | 1.02 | 1.08 | 1.12 | 1.21 | 1.08 | |||||||||||||||||||||||||
Net realized and change in unrealized gain (loss) | 0.88 | 2.29 | (1.69 | ) | 1.98 | (2.96 | ) | |||||||||||||||||||||||
Total from investment operations | 1.90 | 3.37 | (0.57 | ) | 3.19 | (1.88 | ) | |||||||||||||||||||||||
Dividends on Preferred Shares from Net Investment Income | (0.02 | ) | (0.02 | ) | (0.03 | ) | (0.04 | ) | (0.21 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets applicable to common shareholders resulting from investment operations | 1.88 | 3.35 | (0.60 | ) | 3.15 | (2.09 | ) | |||||||||||||||||||||||
Dividends to Common Shareholders from Net Investment Income | (0.92 | ) | (0.92 | ) | (0.92 | ) | (0.92 | ) | (0.92 | ) | ||||||||||||||||||||
Net asset value, end of year | $14.71 | $13.75 | $11.32 | $12.84 | $10.61 | |||||||||||||||||||||||||
Market price, end of year | $15.33 | $14.83 | $11.99 | $13.29 | $12.18 | |||||||||||||||||||||||||
Total Investment Return (1) |
9.96 | % | 32.94 | % | (2.79 | )% | 17.72 | % | (16.72 | )% | ||||||||||||||||||||
Ratios/Supplemental Data: |
||||||||||||||||||||||||||||||
Net assets, applicable to common shareholders, end of year (000s) | $272,398 | $253,870 | $208,147 | $234,792 | $192,849 | |||||||||||||||||||||||||
Ratio of expenses to average net assets, including interest expense (2)(3)(4) | 1.30 | %(5) | 1.36 | %(5) | 1.48 | % | 1.49 | %(5) | 1.66 | %(5) | ||||||||||||||||||||
Ratio of expenses to average net assets, excluding interest expense (2)(3) | 1.21 | %(5) | 1.25 | %(5) | 1.34 | % | 1.34 | %(5) | 1.39 | %(5) | ||||||||||||||||||||
Ratio of net investment income to average net assets (2) | 7.17 | %(5) | 8.63 | %(5) | 9.21 | % | 10.15 | %(5) | 9.42 | %(5) | ||||||||||||||||||||
Preferred shares asset coverage per share | $70,398 | $67,310 | $59,689 | $64,130 | $57,140 | |||||||||||||||||||||||||
Portfolio turnover rate | 12 | % | 9 | % | 19 | % | 8 | % | 42 | % |
(1) | Total investment return is calculated assuming a purchase of a common share at the market price on the first day and a sale of a common share at the market price on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Funds dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges in connection with the purchase or sale of Fund shares. |
(2) | Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders. |
(3) | Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank (See note 1(k) in Notes to Financial Statements). |
(4) | Interest expense relates to the liability for Floating Rate Notes issued in connection with Inverse Floater transactions and/or participation in reverse repurchase agreement transactions. |
(5) | During the years indicated above, the Investment Manager waived a portion of its investment management fee. The effect of such waiver relative to the average net assets of common shareholders was 0.01%, 0.07%, 0.01% and 0.10% for the years ended April 30, 2013, April 30, 2012, April 30, 2010 and April 30, 2009, respectively. |
See accompanying Notes to Financial Statements | | April 30, 2013 | | Annual Report | 45 |
Financial Highlights
PIMCO New York Municipal Income Fund
For a common share outstanding throughout each year:
Year ended April 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||
Net asset value, beginning of year |
$11.38 | $9.92 | $10.67 | $9.19 | $12.70 | |||||||||||||||||||||||||
Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income |
0.70 | 0.74 | 0.80 | 0.88 | 0.87 | |||||||||||||||||||||||||
Net realized and change in unrealized gain (loss) | 0.66 | 1.41 | (0.84 | ) | 1.31 | (3.50 | ) | |||||||||||||||||||||||
Total from investment operations |
1.36 | 2.15 | (0.04 | ) | 2.19 | (2.63 | ) | |||||||||||||||||||||||
Dividends on Preferred Shares from Net Investment Income | (0.02 | ) | (0.01 | ) | (0.03 | ) | (0.03 | ) | (0.20 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets applicable to common shareholders resulting from investment operations | 1.34 | 2.14 | (0.07 | ) | 2.16 | (2.83 | ) | |||||||||||||||||||||||
Dividends to Common Shareholders from Net Investment Income | (0.68 | ) | (0.68 | ) | (0.68 | ) | (0.68 | ) | (0.68 | ) | ||||||||||||||||||||
Net asset value, end of year |
$12.04 | $11.38 | $9.92 | $10.67 | $9.19 | |||||||||||||||||||||||||
Market price, end of year |
$12.52 | $11.73 | $9.89 | $11.18 | $9.90 | |||||||||||||||||||||||||
Total Investment Return (1) |
12.96 | % | 26.36 | % | (5.57 | )% | 20.76 | % | (18.80 | )% | ||||||||||||||||||||
Ratios/Supplemental Data: |
||||||||||||||||||||||||||||||
Net assets, applicable to common shareholders, end of year (000s) | $92,509 | $87,126 | $75,728 | $81,074 | $69,482 | |||||||||||||||||||||||||
Ratio of expenses to average net assets, including interest expense (2)(3)(4) | 1.36 | %(5) | 1.37 | %(5) | 1.51 | % | 1.52 | %(5) | 1.86 | %(5) | ||||||||||||||||||||
Ratio of expenses to average net assets, excluding interest expense (2)(3) | 1.30 | %(5) | 1.31 | %(5) |