SEMIANNUAL REPORT		JUNE 30, 2019		3

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed-income securities and other instruments held by a Fund are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that Fund management will anticipate such movement accurately. A Fund may lose money as a result of movement in interest rates.

 

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Funds currently face a heightened level of interest rate risk, especially as the Federal Reserve Board ended its quantitative easing program in October 2014 and raised interest rates several times thereafter before lowering them in July 2019. Interest rates may change in the future depending upon the Federal Reserve Board’s view of economic growth, inflation, employment and other market factors. To the extent the Federal Reserve Board raises interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.” Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. In addition, in the current low interest rate environment, the market price of the Funds’ common shares may be particularly sensitive to changes in interest rates or the perception that there will be a change in interest rates. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact a Fund’s performance or cause a Fund to incur losses.

 

With respect to certain securities, the Funds may make different asset class, sector or geographical classifications for the purpose of monitoring compliance with investment guidelines than the classifications disclosed in this report.

 

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

 

The United Kingdom’s decision to leave the European Union may impact Fund returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

 

The Funds may invest in certain instruments that rely in some fashion upon the London Interbank Offered Rate (“LIBOR”). LIBOR is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced plans to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding future utilization of LIBOR and the nature of any replacement rate, and any potential effects of the transition away from LIBOR on the Fund or on certain instruments in which the Fund invests are not known.

 

Under the direction of the Federal Housing Finance Agency, the Federal National Mortgage Association (“FNMA”) and the Federal Home Loan Mortgage Corporation (“FHLMC”) have entered into a joint initiative to develop a common securitization platform for the issuance of a uniform mortgage-backed security (the “Single Security Initiative”) that aligns the characteristics of FNMA and FHLMC certificates. The Single Security Initiative was implemented on June 3, 2019, and the effects it may have on the market for mortgage-backed securities are uncertain.

 

Investing in the municipal bond market involves the risks of investing in debt securities generally and certain other risks. The amount of public information available about the municipal bonds in which a Fund may invest is generally less than that for corporate equities or bonds, and the investment performance of a Fund’s investment in municipal bonds may therefore be more dependent on the analytical abilities of PIMCO than its investments in taxable bonds. The secondary market for municipal bonds also tends to be less well-developed or liquid than many other securities markets, which may adversely affect a Fund’s ability to sell its bonds at attractive prices.

 

The ability of municipal issuers to make timely payments of interest and principal may be diminished during general economic downturns, by litigation, legislation or political events, or by the bankruptcy of the issuer. Laws, referenda, ordinances or regulations enacted in the future by Congress or state legislatures or the applicable governmental entity could extend the time for payment of principal and/or interest, or impose other constraints on enforcement of such obligations, or on the ability of

 

municipal issuers to levy taxes. Issuers of municipal securities also might seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, a Fund could experience delays in collecting principal and interest and the Fund may not, in all circumstances, be able to collect all principal and interest to which it is entitled. To enforce its rights in the event of a default in the payment of interest or repayment of principal, or both, a Fund may take possession of and manage the assets securing the issuer’s obligations on such securities, which may increase the Fund’s operating expenses. Any income derived from the Fund’s ownership or operation of such assets may not be tax-exempt.

 

A Fund that has substantial exposures to California municipal bonds may be affected significantly by economic, regulatory or political developments affecting the ability of California issuers to pay interest or repay principal. Certain issuers of California municipal bonds have experienced serious financial difficulties in the past and reoccurrence of these difficulties may impair the ability of certain California issuers to pay principal or interest on their obligations. Provisions of the California Constitution and State statutes that limit the taxing and spending authority of California governmental entities may impair the ability of California issuers to pay principal and/or interest on their obligations. While California’s economy is broad, it does have major concentrations in high technology, aerospace and defense-related manufacturing, trade, entertainment, real estate and financial services, and may be sensitive to economic problems affecting those industries. Future California political and economic developments, constitutional amendments, legislative measures, executive orders, administrative regulations, litigation and voter initiatives could have an adverse effect on the debt obligations of California issuers.

 

A Fund that has substantial exposures to New York municipal bonds may be affected significantly by economic, regulatory or political developments affecting the ability of New York issuers to pay interest or repay principal. While New York’s economy is broad, it does have concentrations in the financial services industry, and may be sensitive to economic problems affecting that industry. Certain issuers of New York municipal bonds have experienced serious financial difficulties in the past and reoccurrence of these difficulties may impair the ability of certain New York issuers to pay principal or interest on their obligations. The financial health of New York City affects that of the State, and when New York City experiences financial difficulty it may have an adverse effect on New York municipal bonds held by a Fund. The growth rate of New York has at times been somewhat slower than the nation overall. The economic and financial condition of New York also may be affected by various financial, social, economic and political factors.

 

The use of derivatives may subject the Funds to greater volatility than investments in traditional securities. The Funds may use derivative

instruments for hedging purposes or as part of an investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, call risk, credit risk, leverage risk, management risk and the risk that a Fund may not be able to close out a position when it would be most advantageous to do so. Changes in regulation relating to a Fund’s use of derivatives and related instruments could potentially limit or impact a Fund’s ability to invest in derivatives, limit a Fund’s ability to employ certain strategies that use derivatives and/or adversely affect the value or performance of derivatives and the Fund. Certain derivative transactions may have a leveraging effect on a Fund. For example, a small investment in a derivative instrument may have a significant impact on a Fund’s exposure to interest rates, currency exchange rates or other investments. As a result, a relatively small price movement in an asset, instrument or component of the index underlying a derivative instrument may cause an immediate and substantial loss or gain, which translates into heightened volatility in a Fund’s net asset value (“NAV”). A Fund may engage in such transactions regardless of whether the Fund owns the asset, instrument or components of the index underlying the derivative instrument. A Fund may invest a significant portion of its assets in these types of instruments. If it does, a Fund’s investment exposure could far exceed the value of its portfolio securities and its investment performance could be primarily dependent upon securities it does not own.

 

A Fund’s use of leverage creates the opportunity for increased income for the Fund’s common shareholders, but also creates special risks. Leverage is a speculative technique that may expose a Fund to greater risk and increased costs. If shorter-term interest rates rise relative to the rate of return on a Fund’s portfolio, the interest and other costs of leverage to the Fund could exceed the rate of return on the debt obligations and other investments held by the Fund, thereby reducing return to the Fund’s common shareholders. In addition, fees and expenses of any form of leverage used by a Fund will be borne entirely by its common shareholders (and not by preferred shareholders, if any) and will reduce the investment return of the Fund’s common shares. Moreover, to make payments of interest and other loan costs, the Funds may be forced to sell portfolio securities when it is not otherwise advantageous to do so. In addition, because the fees received by PIMCO are based on the daily NAV of the Funds (including any assets attributable to any preferred shares that may be outstanding), PIMCO has a financial incentive for the Funds to use certain forms of leverage, which may create a conflict of interest between PIMCO, on the one hand, and the Funds’ common shareholders, on the other hand. There can be no assurance that a Fund’s use of leverage will result in a higher yield on its common shares, and it may result in losses. Leverage creates several major types of risks for a Fund’s common shareholders, including (1) the likelihood of greater volatility of the NAV and market price of the Fund’s common shares, and

 

		SEMIANNUAL REPORT		JUNE 30, 2019		5

of the investment return to the Fund’s common shareholders, than a comparable portfolio without leverage; (2) the possibility either that the Fund’s common share dividends will fall if the interest and other costs of leverage rise, or that dividends paid on the Fund’s common shares will fluctuate because such costs vary over time; and (3) the effects of leverage in a declining market or a rising interest rate environment, as leverage is likely to cause a greater decline in the NAV of the Fund’s common shares than if the Fund were not leveraged and may result in a greater decline in the market value of the Fund’s common shares. Moreover, to make payments of interest and other loan costs, a Fund may be forced to sell portfolio securities when it is not otherwise advantageous to do so.

 

There is a risk that a Fund investing in a tender option bond program will not be considered the owner of a tender option bond for federal income tax purposes, and thus will not be entitled to treat such interest as exempt from federal income tax. Certain tender option bonds may be illiquid or may become illiquid as a result of, among other things, a credit rating downgrade, a payment default or a disqualification from tax-exempt status. A Fund’s investment in the securities issued by a tender option bond trust may involve greater risk and volatility than an investment in a fixed rate bond, and the value of such securities may decrease significantly when market interest rates increase. Tender option bond trusts could be terminated due to market, credit or other events beyond the Funds’ control, which could require the Funds to dispose of portfolio investments at inopportune times and prices. A Fund may use a tender option bond program as a way of achieving leverage in its portfolio, in which case the Fund will be subject to leverage risk.

 

High-yield bonds (commonly referred to as “junk bonds”) typically have a lower credit rating than other bonds. Lower-rated bonds generally involve a greater risk to principal than higher-rated bonds. Further, markets for lower-rated bonds are typically less liquid than for higher-rated bonds, and public information is usually less abundant in markets for lower-rated bonds. Thus, high yield investments increase the chance that a Fund will lose money. PIMCO does not rely solely on credit ratings, and develops its own analysis of issuer credit quality. A Fund may purchase unrated securities (which are not rated by a rating agency) if PIMCO determines that the security is of comparable quality to a rated security that a Fund may purchase. Unrated securities may be less liquid than comparable rated securities and involve the risk that PIMCO may not accurately evaluate the security’s comparative credit quality, which could result in a Fund’s portfolio having a higher level of credit and/or high yield risk than PIMCO has estimated or desires for the Fund, and could negatively impact the Fund’s performance and/or returns. Certain Funds may invest a substantial portion of their assets in unrated securities and therefore may be particularly subject to the

associated risks. Analysis of the creditworthiness of issuers of high yield securities may be more complex than for issuers of higher-quality debt obligations. To the extent that a Fund invests in high yield and/or unrated securities, the Fund’s success in achieving its investment objectives may depend more heavily on the portfolio manager’s creditworthiness analysis than if the Fund invested exclusively in higher-quality and rated securities. The Funds may hold defaulted securities that may involve special considerations including bankruptcy proceedings, other regulatory and legal restrictions affecting the Funds’ ability to trade, and the availability of prices from independent pricing services or dealer quotations. Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest or other payments. Defaulted securities are often illiquid and may not be actively traded. Sales of securities in bankrupt companies at an acceptable price may be difficult and differences compared to the value of the securities used by the Funds could be material. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

 

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.

 

As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational and information security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and unintentional cyber events that may, among other things, cause a Fund to lose proprietary information, suffer data corruption and/or destruction or lose operational capacity, result in the unauthorized release or other misuse of confidential information, or otherwise disrupt normal business operations. Cyber security breaches may involve unauthorized access to a Fund’s digital information systems (e.g., through “hacking” or malicious software coding), but may also result from outside attacks such as denial-of-service attacks (i.e., efforts to make network services unavailable to intended users). In addition, cyber security breaches involving a Fund’s third party service providers (including but not limited to advisers, sub-advisers, administrators, transfer agents, custodians, distributors and other third parties),

 

trading counterparties or issuers in which a Fund invests can also subject a Fund to many of the same risks associated with direct cyber security breaches. Moreover, cyber security breaches involving trading counterparties or issuers in which a Fund invests could adversely impact such counterparties or issuers and cause the Fund’s investment to lose value.

 

Cyber security failures or breaches may result in financial losses to a Fund and its shareholders. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with a Fund’s ability to calculate its NAV, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation costs; additional compliance and cyber security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.

 

Like with operational risk in general, the Funds have established business continuity plans and risk management systems designed to reduce the risks associated with cyber security. However, there are inherent limitations in these plans and systems, including that certain risks may not have been identified, in large part because different or unknown threats may emerge in the future. As such, there is no guarantee that such efforts will succeed, especially because the Funds do not directly control the cyber security systems of issuers in which a Fund may invest, trading counterparties or third party service providers to the Funds. There is also a risk that cyber security breaches may not be detected. The Funds and their shareholders could be negatively impacted as a result.

 

The common shares of the Funds trade on the New York Stock Exchange. As with any stock, the price of a Fund’s common shares will fluctuate with market conditions and other factors. If you sell your common shares of a Fund, the price received may be more or less than your original investment.

 

Shares of closed-end investment management companies, such as the Funds, frequently trade at a discount from their NAV and may trade at a price that is less than the initial offering price and/or the NAV of such shares. Further, if a Fund’s shares trade at a price that is more than the initial offering price and/or the NAV of such shares, including at a substantial premium and/or for an extended period of time, there is no assurance that any such premium will be sustained for any period of time and will not decrease, or that the shares will not trade at a discount to NAV thereafter.

 

The Funds may be subject to various risks, including, but not limited to, the following: asset allocation risk, credit risk, stressed securities risk,

distressed and defaulted securities risk, corporate bond risk, market discount risk, leverage risk, high yield risk, market risk, issuer risk, liquidity risk, equity securities and related market risk, mortgage-related and other asset-backed securities risk, extension risk, prepayment risk, privately issued mortgage-related securities risk, mortgage market/ subprime risk, currency risk, redenomination risk, non-diversification risk, management risk, municipal bond risk, tender option bond risk, inflation-indexed security risk, senior debt risk, loans, participations and assignments risk, reinvestment risk, real estate risk, U.S. Government securities risk, foreign (non-U.S.) government securities risk, valuation risk, segregation and cover risk, focused investment risk, credit default swaps risk, event-linked securities risk, counterparty risk, preferred securities risk, confidential information access risk, other investment companies risk, private placements risk, inflation/deflation risk, regulatory risk, tax risk, recent economic conditions risk, market disruptions and geopolitical risk, potential conflicts of interest involving allocation of investment opportunities, repurchase agreements risk, securities lending risk, zero-coupon bond and payment-in-kind securities risk, portfolio turnover risk, smaller company risk, short sale risk, convertible securities risk, derivatives risk, interest rate risk, concentration risk, California state-specific risk, New York state-specific risk, municipal project-specific risk, insurance risk, operational risk, call risk and cybersecurity risk. A description of certain of these risks is available in the Notes to Financial Statements of this report.

 

On each Fund Summary page in this Shareholder Report, the Average Annual Total Return table measures performance assuming that all dividend and capital gain distributions were reinvested. Total return is calculated by determining the percentage change in NAV or market price (as applicable) in the specified period. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. Total return for a period of more than one year represents the average annual total return. Performance at market price will differ from results at NAV. Although market price returns tend to reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about a Fund, market conditions, supply and demand for the Fund’s shares, or changes in the Fund’s dividends. Performance shown is net of fees and expenses.

 

		SEMIANNUAL REPORT		JUNE 30, 2019		7

 

The following table discloses the commencement of operations and diversification status of each Fund:

 

Fund Name						Commencement of Operations				Diversification Status
PIMCO Municipal Income Fund							06/29/01			Diversified
PIMCO Municipal Income Fund II							06/28/02			Diversified
PIMCO Municipal Income Fund III							10/31/02			Diversified
PIMCO California Municipal Income Fund							06/29/01			Diversified
PIMCO California Municipal Income Fund II							06/28/02			Diversified
PIMCO California Municipal Income Fund III							10/31/02			Diversified
PIMCO New York Municipal Income Fund							06/29/01			Non-diversified
PIMCO New York Municipal Income Fund II							06/28/02			Non-diversified

 

An investment in a Fund is not a deposit of a bank and is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. It is possible to lose money on investments in the Funds.

 

The Trustees are responsible generally for overseeing the management of the Funds. The Trustees authorize the Funds to enter into service agreements with the Investment Manager and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s original or any subsequent prospectus or Statement of Additional Information (“SAI”), any press release or shareholder report, any contracts filed as exhibits to a Fund’s registration statement, nor any other communications, disclosure documents or regulatory filings from or on behalf of a Fund creates a contract between or among any shareholders of a Fund, on the one hand, and the Fund, a service provider to the Fund, and/or the Trustees or officers of the Fund, on the other hand. The Trustees (or the Funds and their officers, service providers or other delegates acting under authority of the Trustees) may amend its most recent or use a new prospectus or SAI with respect to a Fund, adopt and disclose new or amended policies and other changes in press releases and shareholder reports and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement was specifically disclosed in a Fund’s prospectus, SAI or shareholder report and is otherwise still in effect.

 

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment

Advisers Act of 1940. The Proxy Policy has been adopted by the Funds as the policies and procedures that PIMCO will use when voting proxies on behalf of the Funds. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of each Fund, and information about how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Funds at (844) 33-PIMCO, on the Funds’ website at www.pimco.com, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

 

Each Fund files a complete schedule of its portfolio holdings with the SEC for the first and third quarters of its fiscal year on Form N-PORT. Each Fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov and are available without charge, upon request by calling the Funds at (844) 33-PIMCO. Prior to its use of Form N-PORT, each Fund filed its complete schedule of its portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov.

 

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of a Fund’s shareholder reports going forward may be found on the front cover of this report.

 

		Symbol on NYSE -  PMF

Allocation Breakdown as of 06/30/2019^†§

 

Municipal Bonds & Notes
Health, Hospital & Nursing Home Revenue			23.8%
Highway Revenue Tolls			10.5%
Tobacco Settlement Funded			7.1%
Natural Gas Revenue			6.5%
Miscellaneous Revenue			5.1%
Sales Tax Revenue			5.1%
Ad Valorem Property Tax			5.1%
College & University Revenue			4.2%
Electric Power & Light Revenue			4.0%
Water Revenue			3.4%
Port, Airport & Marina Revenue			3.3%
Special Assessment			3.0%
Sewer Revenue			2.7%
Miscellaneous Taxes			2.6%
Income Tax Revenue			2.3%
Industrial Revenue			2.2%
Lease Revenue			2.1%
Appropriations			1.9%
Nuclear Revenue			1.1%
General Fund			1.0%
Other			2.9%
Short-Term Instruments			0.1%

†

% of Investments, at value.

 

§

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of June 30, 2019)⁽¹⁾

 

Market Price			$14.46
NAV			$13.19
Premium/(Discount) to NAV			9.63%
Market Price Distribution Rate(2)			4.95%
NAV Distribution Rate(2)			5.43%
Total Effective Leverage(3)			46%

 

		SEMIANNUAL REPORT		JUNE 30, 2019		9

		Symbol on NYSE -  PML

Allocation Breakdown as of 06/30/2019^†§

 

Municipal Bonds & Notes
Health, Hospital & Nursing Home Revenue			22.1%
Highway Revenue Tolls			10.6%
Tobacco Settlement Funded			8.8%
Natural Gas Revenue			6.5%
Ad Valorem Property Tax			6.2%
College & University Revenue			5.0%
Sales Tax Revenue			4.8%
Miscellaneous Taxes			4.3%
Electric Power & Light Revenue			3.7%
Lease Revenue			3.6%
Sewer Revenue			3.6%
Water Revenue			3.2%
Miscellaneous Revenue			3.1%
Income Tax Revenue			2.1%
Industrial Revenue			1.9%
Appropriations			1.8%
Port, Airport & Marina Revenue			1.5%
General Fund			1.1%
Transit Revenue			1.1%
Other			4.9%
Short-Term Instruments			0.1%

†

% of Investments, at value.

 

§

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of June 30, 2019)⁽¹⁾

 

Market Price			$14.96
NAV			$12.38
Premium/(Discount) to NAV			20.84%
Market Price Distribution Rate(2)			5.21%
NAV Distribution Rate(2)			6.30%
Total Effective Leverage(3)			46%

 

		Symbol on NYSE -  PMX

Allocation Breakdown as of 06/30/2019^†§

 

Municipal Bonds & Notes
Health, Hospital & Nursing Home Revenue			20.6%
Tobacco Settlement Funded			9.5%
Highway Revenue Tolls			7.8%
College & University Revenue			6.6%
Natural Gas Revenue			6.4%
Ad Valorem Property Tax			5.8%
Water Revenue			5.6%
Sales Tax Revenue			4.8%
Electric Power & Light Revenue			4.0%
Sewer Revenue			4.0%
Recreational Revenue			3.0%
Income Tax Revenue			2.9%
Miscellaneous Revenue			2.4%
Lease Revenue			2.3%
General Fund			2.3%
Appropriations			2.2%
Port, Airport & Marina Revenue			2.1%
Industrial Revenue			1.8%
Transit Revenue			1.4%
Nuclear Revenue			1.1%
Other			3.3%
Short-Term Instruments			0.1%

†

% of Investments, at value.

 

§

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of June 30, 2019)⁽¹⁾

 

Market Price			$12.36
NAV			$11.19
Premium/(Discount) to NAV			10.46%
Market Price Distribution Rate(2)			4.93%
NAV Distribution Rate(2)			5.44%
Total Effective Leverage(3)			46%

 

		SEMIANNUAL REPORT		JUNE 30, 2019		11

		Symbol on NYSE -  PCQ

Allocation Breakdown as of 06/30/2019^†§

 

Municipal Bonds & Notes
Ad Valorem Property Tax			25.9%
Health, Hospital & Nursing Home Revenue			22.2%
Tobacco Settlement Funded			6.8%
College & University Revenue			6.7%
Electric Power & Light Revenue			6.2%
Natural Gas Revenue			5.9%
Lease (Abatement)			4.7%
Water Revenue			3.9%
Local or Guaranteed Housing			3.9%
Port, Airport & Marina Revenue			2.6%
Sales Tax Revenue			2.0%
Sewer Revenue			1.6%
General Fund			1.4%
Transit Revenue			1.3%
Hotel Occupancy Tax			1.1%
Special Assessment			1.0%
Other			2.7%
Short-Term Instruments			0.1%

†

% of Investments, at value.

 

§

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of June 30, 2019)⁽¹⁾

 

Market Price			$18.67
NAV			$14.04
Premium/(Discount) to NAV			32.98%
Market Price Distribution Rate(2)			4.95%
NAV Distribution Rate(2)			6.58%
Total Effective Leverage(3)			48%

 

		Symbol on NYSE -  PCK

Allocation Breakdown as of 06/30/2019^†§

 

Municipal Bonds & Notes
Ad Valorem Property Tax			31.7%
Health, Hospital & Nursing Home Revenue			16.8%
Natural Gas Revenue			7.2%
Electric Power & Light Revenue			5.9%
Tobacco Settlement Funded			5.2%
General Fund			4.3%
Sewer Revenue			3.8%
Local or Guaranteed Housing			3.6%
College & University Revenue			2.9%
Port, Airport & Marina Revenue			2.8%
Tax Increment/Allocation Revenue			2.8%
Lease (Abatement)			2.5%
Sales Tax Revenue			2.1%
Highway Revenue Tolls			1.9%
Special Tax			1.2%
Hotel Occupancy Tax			1.1%
Special Assessment			1.0%
Other			3.1%
Short-Term Instruments			0.1%

†

% of Investments, at value.

 

§

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of June 30, 2019)⁽¹⁾

 

Market Price			$9.65
NAV			$8.92
Premium/(Discount) to NAV			8.18%
Market Price Distribution Rate(2)			4.35%
NAV Distribution Rate(2)			4.71%
Total Effective Leverage(3)			46%

 

		SEMIANNUAL REPORT		JUNE 30, 2019		13

		Symbol on NYSE -  PZC

Allocation Breakdown as of 06/30/2019^†§

 

Municipal Bonds & Notes
Ad Valorem Property Tax			26.4%
Health, Hospital & Nursing Home Revenue			23.4%
Tobacco Settlement Funded			7.4%
College & University Revenue			7.2%
Electric Power & Light Revenue			6.1%
Natural Gas Revenue			4.9%
Water Revenue			4.1%
Local or Guaranteed Housing			2.8%
Highway Revenue Tolls			2.4%
Lease (Abatement)			2.2%
Sales Tax Revenue			2.1%
Port, Airport & Marina Revenue			2.0%
Special Tax			1.5%
Sewer Revenue			1.4%
Transit Revenue			1.2%
Special Assessment			1.0%
Other			3.7%
Short-Term Instruments			0.2%

†

% of Investments, at value.

 

§

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of June 30, 2019)⁽¹⁾

 

Market Price			$11.18
NAV			$10.01
Premium/(Discount) to NAV			11.69%
Market Price Distribution Rate(2)			4.49%
NAV Distribution Rate(2)			5.02%
Total Effective Leverage(3)			47%

 

		Symbol on NYSE -  PNF

Allocation Breakdown as of 06/30/2019^†§

 

Municipal Bonds & Notes
Income Tax Revenue			14.5%
Water Revenue			11.5%
Ad Valorem Property Tax			8.8%
Transit Revenue			7.6%
College & University Revenue			7.0%
Health, Hospital & Nursing Home Revenue			6.9%
Highway Revenue Tolls			6.5%
Tobacco Settlement Funded			6.2%
Industrial Revenue			5.6%
Miscellaneous Taxes			4.3%
Port, Airport & Marina Revenue			4.2%
Sales Tax Revenue			4.2%
Miscellaneous Revenue			4.0%
Lease Revenue			3.8%
Recreational Revenue			1.8%
Other			2.0%
Short-Term Instruments			1.1%

†

% of Investments, at value.

 

§

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of June 30, 2019)⁽¹⁾

 

Market Price			$13.15
NAV			$12.00
Premium/(Discount) to NAV			9.58%
Market Price Distribution Rate(2)			4.84%
NAV Distribution Rate(2)			5.30%
Total Effective Leverage(3)			47%

 

		SEMIANNUAL REPORT		JUNE 30, 2019		15

		Symbol on NYSE -  PNI

Allocation Breakdown as of 06/30/2019^†§

 

Municipal Bonds & Notes
College & University Revenue			10.6%
Health, Hospital & Nursing Home Revenue			9.4%
Tobacco Settlement Funded			8.5%
Water Revenue			7.9%
Port, Airport & Marina Revenue			7.9%
Ad Valorem Property Tax			5.8%
Income Tax Revenue			5.7%
Sales Tax Revenue			5.2%
Highway Revenue Tolls			5.0%
Miscellaneous Revenue			4.8%
Transit Revenue			4.6%
Lease (Abatement)			4.3%
Miscellaneous Taxes			4.2%
Electric Power & Light Revenue			3.7%
Industrial Revenue			3.7%
Recreational Revenue			3.3%
Lease Revenue			2.4%
Local or Guaranteed Housing			1.0%
Other			1.5%
Short-Term Instruments			0.5%

†

% of Investments, at value.

 

§

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of June 30, 2019)⁽¹⁾

 

Market Price			$11.61
NAV			$11.35
Premium/(Discount) to NAV			2.29%
Market Price Distribution Rate(2)			4.14%
NAV Distribution Rate(2)			4.23%
Total Effective Leverage(3)			46%

 

		SEMIANNUAL REPORT		JUNE 30, 2019		17