UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF REGISTERED MANAGEMENT INVESTMENT COMPANY
| Investment Company Act File Number: | 811-21188 | |
| Registrant Name: | PIMCO California Municipal Income Fund III | |
| Address of Principal Executive Offices: | 1633 Broadway | |
| New York, NY 10019 | ||
| Name and Address of Agent for Service: | Lawrence G. Altadonna | |
| 1633 Broadway | ||
| New York, NY 10019 | ||
| Registrant’s telephone number, including area code: | 212-739-3371 | |
| Date of Fiscal Year End: | September 30, 2014 | |
| Date of Reporting Period: | December 31, 2013 | |
Item 1. Schedule of Investments
Schedule of Investments
PIMCO California Municipal Income Fund III
December 31, 2013 (unaudited)
| Principal |
Value* | |||||||||
| CALIFORNIA MUNICIPAL BONDS & NOTES - 94.4% | ||||||||||
| Bay Area Toll Auth. Rev., |
||||||||||
| $ | 8,000 | 5.25%, 4/1/48, Ser. S-4 |
$ | 8,145,840 | ||||||
| 1,250 | San Francisco Bay Area, 5.00%, 4/1/34, Ser. F-1 |
1,305,125 | ||||||||
| 1,000 | Cathedral City Public Financing Auth., Tax Allocation, 5.00%, 8/1/33, Ser. A (NPFGC) |
908,170 | ||||||||
| 1,150 | Ceres Redev. Agcy., Tax Allocation, Project Area No. 1, 5.00%, 11/1/33 (NPFGC) |
1,077,079 | ||||||||
| 2,000 | Chula Vista Rev., San Diego Gas & Electric, 5.875%, 2/15/34, Ser. B |
2,153,320 | ||||||||
| 550 | City & Cnty. of San Francisco, Capital Improvement Projects, CP, 5.25%, 4/1/31, Ser. A |
582,423 | ||||||||
| 1,415 | Contra Costa Cnty. Public Financing Auth., Tax Allocation, 5.625%, 8/1/33, Ser. A |
1,355,867 | ||||||||
| Educational Facs. Auth. Rev. (f), |
||||||||||
| 9,800 | Claremont McKenna College, 5.00%, 1/1/39 |
10,082,730 | ||||||||
| 10,000 | Univ. of Southern California, 5.00%, 10/1/39, Ser. A |
10,387,600 | ||||||||
| 1,695 | El Dorado Irrigation Dist. & El Dorado Water Agcy., CP, 5.75%, 8/1/39, Ser. A (AGC) |
1,725,340 | ||||||||
| Golden State Tobacco Securitization Corp. Rev., |
||||||||||
| 11,000 | 5.00%, 6/1/45 (AMBAC-TCRS) |
10,337,470 | ||||||||
| 4,000 | 5.00%, 6/1/45, Ser. A (FGIC-TCRS) |
3,759,080 | ||||||||
| 23,585 | 5.75%, 6/1/47, Ser. A-1 |
17,496,296 | ||||||||
| Health Facs. Financing Auth. Rev., |
||||||||||
| 4,000 | Adventist Health System, 5.75%, 9/1/39, Ser. A |
4,273,600 | ||||||||
| 1,935 | Catholic Healthcare West, 6.00%, 7/1/34, Ser. A |
1,963,541 | ||||||||
| 4,000 | Catholic Healthcare West, 6.00%, 7/1/39, Ser. A |
4,298,840 | ||||||||
| 500 | Children’s Hospital of Orange Cnty., 6.50%, 11/1/38, Ser. A |
555,250 | ||||||||
| 6,000 | Cottage Health System, 5.00%, 11/1/33, Ser. B (NPFGC) |
6,005,340 | ||||||||
| 1,300 | Scripps Health, 5.00%, 11/15/36, Ser. A |
1,322,386 | ||||||||
| 2,900 | Stanford Hospital, 5.25%, 11/15/40, Ser. A-2 |
2,999,760 | ||||||||
| 8,305 | Stanford Hospital Clinics, 5.00%, 8/15/51, Ser. A |
8,084,917 | ||||||||
| 1,000 | Sutter Health, 5.00%, 8/15/35, Ser. D |
1,013,840 | ||||||||
| 5,000 | Sutter Health, 5.00%, 8/15/38, Ser. A |
4,943,900 | ||||||||
| 500 | Sutter Health, 5.00%, 11/15/42, Ser. A (IBC-NPFGC) |
491,715 | ||||||||
| 10,000 | Sutter Health, 5.00%, 8/15/52, Ser. A |
9,477,200 | ||||||||
| 1,200 | Sutter Health, 6.00%, 8/15/42, Ser. B |
1,309,716 | ||||||||
| 10,000 | Infrastructure & Economic Dev. Bank Rev., Independent System Operator Corp., 5.00%, 2/1/39 |
10,094,000 | ||||||||
| 500 | Lancaster Redev. Agcy., Tax Allocation, 6.875%, 8/1/39 |
538,525 | ||||||||
| 2,120 | Long Beach Airport Rev., 5.00%, 6/1/40, Ser. A |
2,098,440 | ||||||||
| 5,000 | Long Beach Unified School Dist., GO, 5.75%, 8/1/33, Ser. A |
5,597,650 | ||||||||
| Los Angeles Department of Water & Power Rev., |
||||||||||
| 6,000 | 4.75%, 7/1/30, Ser. A-2 (AGM) (f) |
6,150,600 | ||||||||
| 2,000 | 5.00%, 7/1/37, Ser. B |
2,097,200 | ||||||||
| 10,000 | 5.00%, 7/1/39, Ser. A (f) |
10,225,500 | ||||||||
| 2,115 | 5.00%, 7/1/43, Ser. B |
2,169,377 | ||||||||
| 10,000 | Los Angeles Unified School Dist., GO, 5.00%, 1/1/34, Ser. I (f) |
10,443,700 | ||||||||
| 1,700 | M-S-R Energy Auth. Rev., 6.50%, 11/1/39, Ser. B |
2,011,916 | ||||||||
| 550 | Malibu, City Hall Project, CP, 5.00%, 7/1/39, Ser. A |
550,781 | ||||||||
| 1,000 | Manteca Financing Auth. Sewer Rev., 5.75%, 12/1/36 |
1,086,230 | ||||||||
| 5,000 | Metropolitan Water Dist. of Southern California Rev., 5.00%, 7/1/37, Ser. A (f) |
5,237,400 | ||||||||
| 3,000 | Montebello Unified School Dist., GO, 5.00%, 8/1/33 (AGM) |
3,123,000 | ||||||||
| 905 | Municipal Finance Auth. Rev., Azusa Pacific Univ. Project, 7.75%, 4/1/31, Ser. B |
984,025 | ||||||||
| 1,250 | Peralta Community College Dist., GO, 5.00%, 8/1/39, Ser. C |
1,259,012 | ||||||||
| 1,250 | Pollution Control Financing Auth. Rev., American Water Capital Corp. Project, 5.25%, 8/1/40 (a)(b)(c)(g) (acquisition cost - $1,250,000; purchased 8/11/10) |
1,220,213 | ||||||||
| 1,905 | Poway Unified School Dist., Special Tax, 5.125%, 9/1/28 |
1,926,679 | ||||||||
| 500 | Rocklin Unified School Dist. Community Facs. Dist., Special Tax, 5.00%, 9/1/29 (NPFGC) |
499,970 | ||||||||
| 3,000 | Sacramento Municipal Utility Dist. Rev., 5.00%, 8/15/37, Ser. A |
3,106,350 | ||||||||
| 1,325 | San Diego Cnty. Regional Airport Auth. Rev., 5.00%, 7/1/43, Ser. A |
1,330,949 | ||||||||
| 6,250 | San Diego Cnty. Water Auth., CP, 5.00%, 5/1/38, Ser. 2008-A (AGM) |
6,512,937 | ||||||||
| 4,000 | San Diego Public Facs. Financing Auth. Sewer Rev., 5.25%, 5/15/39, Ser. A |
4,129,680 | ||||||||
| 2,200 | San Diego Regional Building Auth. Rev., Cnty. Operations Center & Annex, 5.375%, 2/1/36, Ser. A |
2,352,064 | ||||||||
| 1,500 | San Jose Hotel Tax Rev., Convention Center Expansion, 6.50%, 5/1/36 |
1,667,430 | ||||||||
| 12,200 | San Marcos Public Facs. Auth., Tax Allocation, 5.00%, 8/1/33, Ser. A (FGIC-NPFGC) |
12,213,298 | ||||||||
| 1,000 | San Marcos Unified School Dist., GO, 5.00%, 8/1/38, Ser. A |
1,018,260 | ||||||||
| 500 | Santa Clara Cnty. Financing Auth. Rev., El Camino Hospital, 5.75%, 2/1/41, Ser. A (AMBAC) |
524,580 | ||||||||
| 1,200 | Santa Cruz Cnty. Redev. Agcy., Tax Allocation, Live Oak/Soquel Community, |
1,356,480 | ||||||||
| 4,425 | South Tahoe JT Powers Financing Auth. Rev., South Tahoe Redev. Project, 5.45%, 10/1/33, Ser. 1-A |
4,164,721 | ||||||||
| State, GO, |
||||||||||
| 5,000 | 5.00%, 11/1/43 |
5,061,650 | ||||||||
| 7,300 | 6.00%, 4/1/38 |
8,104,241 | ||||||||
| State Public Works Board Rev., |
||||||||||
| 2,000 | California State Univ., 6.00%, 11/1/34, Ser. J |
2,226,560 | ||||||||
| 2,500 | Judicial Council Projects, 5.00%, 3/1/38, Ser. A (b) |
2,475,625 | ||||||||
| 9,200 | State Univ. Rev., 5.00%, 11/1/42, Ser. A |
9,396,328 | ||||||||
| Statewide Communities Dev. Auth. Rev., |
||||||||||
| 500 | American Baptist Homes West, 6.25%, 10/1/39 |
509,570 | ||||||||
| 1,300 | California Baptist Univ., 5.50%, 11/1/38, Ser. A |
1,183,819 | ||||||||
| 415 | California Baptist Univ., 6.50%, 11/1/21 |
449,540 | ||||||||
| 1,015 | Catholic Healthcare West, 5.50%, 7/1/31, Ser. D |
1,075,261 | ||||||||
| 1,015 | Catholic Healthcare West, 5.50%, 7/1/31, Ser. E |
1,075,261 | ||||||||
| 4,500 | Kaiser Permanente, 5.00%, 3/1/41, Ser. B |
4,440,465 | ||||||||
| 11,220 | Kaiser Permanente, 5.00%, 4/1/42, Ser. A |
11,052,149 | ||||||||
| 1,000 | Lancer Student Housing Project, 7.50%, 6/1/42 |
1,062,590 | ||||||||
| 1,780 | Methodist Hospital Project, 6.625%, 8/1/29 (FHA) |
2,047,552 | ||||||||
| 6,430 | Methodist Hospital Project, 6.75%, 2/1/38 (FHA) |
7,226,291 | ||||||||
| 3,100 | St. Joseph Health System, 5.75%, 7/1/47, Ser. A (FGIC) |
3,272,546 | ||||||||
| 1,800 | Sutter Health, 6.00%, 8/15/42, Ser. A |
1,964,574 | ||||||||
| 1,715 | The Internext Group, CP, 5.375%, 4/1/30 |
1,718,087 | ||||||||
| 11,000 | Trinity Health, 5.00%, 12/1/41 |
10,868,990 | ||||||||
| 2,000 | Univ. of California Irvine E. Campus, 5.375%, 5/15/38 |
1,977,100 | ||||||||
| 1,505 | Successor Agcy. to the San Francisco City & Cnty. Redev. Agcy., Special Tax, |
1,520,622 | ||||||||
| Tobacco Securitization Agcy. Rev., |
||||||||||
| 8,100 | Alameda Cnty., 5.875%, 6/1/35 |
7,396,758 | ||||||||
| 7,000 | Alameda Cnty., 6.00%, 6/1/42 |
6,164,410 | ||||||||
| 2,000 | Kern Cnty., 6.125%, 6/1/43, Ser. A |
1,904,560 | ||||||||
| 2,950 | Torrance Rev., Torrance Memorial Medical Center, 5.50%, 6/1/31, Ser. A |
2,954,926 | ||||||||
| 2,500 | Township Health Care Dist, GO, 5.00%, 8/1/43, Ser. B |
2,443,275 | ||||||||
| 5,000 | Univ. of California Rev., 5.00%, 5/15/43, Ser. J |
5,025,700 | ||||||||
| 2,000 | Western Municipal Water Dist. Facs. Auth. Rev., 5.00%, 10/1/39, Ser. B |
2,020,700 | ||||||||
| 1,000 | Westlake Village, CP, 5.00%, 6/1/39 |
1,005,790 | ||||||||
| 2,750 | Woodland Finance Auth. Rev., 5.00%, 3/1/32 (XLCA) |
2,717,495 | ||||||||
|
|
|
|||||||||
| Total California Municipal Bonds & Notes (cost-$323,539,536) |
332,089,747 | |||||||||
|
|
|
|||||||||
| OTHER MUNICIPAL BONDS & NOTES - 2.5% | ||||||||||
| Indiana - 1.3% | ||||||||||
| 5,000 | Vigo Cnty. Hospital Auth. Rev., Union Hospital, Inc., 5.75%, 9/1/42 (a)(b)(c)(g) |
4,618,200 | ||||||||
|
|
|
|||||||||
| New Jersey - 0.2% | ||||||||||
| 1,000 | Tobacco Settlement Financing Corp. Rev., 4.75%, 6/1/34, Ser. 1-A |
710,830 | ||||||||
|
|
|
|||||||||
| New York - 1.0% | ||||||||||
| 3,300 | New York City Water & Sewer System Rev., 5.00%, 6/15/37, Ser. D (f) |
3,404,181 | ||||||||
|
|
|
|||||||||
| Total Other Municipal Bonds & Notes (cost-$6,676,781) |
8,733,211 | |||||||||
|
|
|
|||||||||
| CALIFORNIA VARIABLE RATE NOTES - 0.3% | ||||||||||
| 1,000 | Los Angeles Community College Dist., GO, 11.866%, 8/1/33, Ser. 3096 (a)(b)(c)(d)(e)(g) (acquisition cost - $996,600; purchased 8/27/09) (cost-$996,713) |
1,142,700 | ||||||||
|
|
|
|||||||||
| SHORT-TERM INVESTMENTS - 2.8% | ||||||||||
| Repurchase Agreements - 1.8% | ||||||||||
| 6,300 | Citigroup Global Markets, Inc., |
6,300,000 | ||||||||
|
|
|
|||||||||
| U.S. Treasury Obligations - 1.0% | ||||||||||
| U.S. Treasury Notes, |
||||||||||
| 2,300 | 0.25%, 5/31/14 |
2,301,484 | ||||||||
| 1,100 | 0.50%, 8/15/14 |
1,102,664 | ||||||||
| 100 | 0.50%, 10/15/14 |
100,289 | ||||||||
|
|
|
|||||||||
| Total U.S. Treasury Obligations (cost-$3,504,192) |
3,504,437 | |||||||||
|
|
|
|||||||||
| Total Short-Term Investments (cost-$9,804,192) |
9,804,437 | |||||||||
|
|
|
|||||||||
| Total Investments (cost-$341,017,222) (h)-100.0% |
$ | 351,770,095 | ||||||||
|
|
|
|||||||||
Schedule of Investments
PIMCO California Municipal Income Fund III
December 31, 2013 (unaudited)
Industry classification of portfolio holdings as a percentage of total investments was as follows:
| Revenue Bonds: |
||||||||
| Health, Hospital & Nursing Home Revenue |
29.2 | % | ||||||
| Tobacco Settlement Funded |
13.6 | |||||||
| College & University Revenue |
9.5 | |||||||
| Electric Power & Light Revenue |
9.0 | |||||||
| Water Revenue |
4.0 | |||||||
| Lease (Abatement) |
2.8 | |||||||
| Highway Revenue Tolls |
2.7 | |||||||
| Sewer Revenue |
1.5 | |||||||
| Natural Gas Revenue |
1.2 | |||||||
| Tax Increment/Allocation Revenue |
1.2 | |||||||
| Port, Airport & Marina Revenue |
1.0 | |||||||
| Local or Guaranteed Housing |
0.7 | |||||||
| Hotel Occupancy Tax |
0.5 | |||||||
|
|
|
|||||||
| Total Revenue Bonds |
76.9 | % | ||||||
| General Obligation |
10.8 | |||||||
| Tax Allocation |
5.0 | |||||||
| Certificates of Participation |
3.4 | |||||||
| Repurchase Agreements |
1.8 | |||||||
| Special Tax |
1.1 | |||||||
| U.S. Treasury Obligations |
1.0 | |||||||
|
|
|
|||||||
| Total Investments |
100.0 | % | ||||||
|
|
|
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Notes to Schedule 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 Fund’s 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 Allianz Global Investors Fund Management LLC (the “Investment Manager”) and Pacific Investment Management Company LLC (the “Sub-Adviser”). The Fund’s Valuation Committee was established by the Board to oversee the implementation of the Fund’s 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 Fund to value investments may differ from the value that would be realized if the investments were sold, and these differences could be material. The Fund’s 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.
| (a) | Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $6,981,113, representing 2.0% of total investments. |
| (b) | Illiquid. |
| (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 December 31, 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 December 31, 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) | Restricted. The aggregate acquisition cost of such securities is $5,188,600. The aggregate value is $6,981,113, representing 2.0% of total investments. |
| (h) | At December 31, 2013, the cost basis of portfolio securities for federal income tax purposes was $307,367,799. Gross unrealized appreciation was $18,590,630; gross unrealized depreciation was $7,916,281; and net unrealized appreciation was $10,674,349. The difference between book and tax cost was attributable to Inverse Floater transactions. |
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:
| • | Level 1 – quoted prices in active markets for identical investments that the Fund has the ability to access |
| • | 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, credit risks and default rates or other market corroborated inputs |
| • | Level 3 – valuations based on significant unobservable inputs (including the Sub-Adviser’s or Valuation Committee’s own assumptions and securities whose price was determined by using a single broker’s quote) |
The valuation techniques used by the Fund to measure fair value during the three months ended December 31, 2013 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.
The Fund’s policy is to recognize transfers between levels at the end of the reporting period. An investment asset’s or liability’s 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.
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 Fund generally uses 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.
U.S. Treasury Obligations — U.S. Treasury obligations are valued by independent pricing services based on pricing models that evaluate the mean between the most recently quoted bid and ask price. The models also take into consideration data received from active market makers and broker-dealers, yield curves, and the spread over comparable U.S. Treasury issues. The spreads change daily in response to market conditions and are generally obtained from the new issue market and broker-dealer sources. To the extent that these inputs are observable, the values of U.S. Treasury obligations are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
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.
A summary of the inputs used at December 31, 2013 in valuing the Fund’s assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities):
| Level 1 - Quoted Prices |
Level 2 - Other Significant Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Value at 12/31/13 |
|||||||||||||
| Investments in Securities - Assets |
||||||||||||||||
| California Municipal Bonds & Notes |
$ | — | $ | 332,089,747 | $ | — | $ | 332,089,747 | ||||||||
| Other Municipal Bonds & Notes |
— | 8,733,211 | — | 8,733,211 | ||||||||||||
| California Variable Rate Notes |
— | 1,142,700 | — | 1,142,700 | ||||||||||||
| Short-Term Investments |
— | 9,804,437 | — | 9,804,437 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Totals |
$ | — | $ | 351,770,095 | $ | — | $ | 351,770,095 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2013, there were no transfers between Levels 1 and 2.
Glossary:
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
IBC - Insurance Bond Certificate
NPFGC - insured by National Public Finance Guarantee Corp.
TCRS - Temporary Custodian Receipts
XLCA - insured by XL Capital Assurance
Item 2. Controls and Procedures
a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits
(a) Exhibit 99.302 Cert. — Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| PIMCO California Municipal Income Fund III | ||
| By: | /s/ Brian S. Shlissel | |
| Brian S. Shlissel, President & Chief Executive Officer | ||
| Date: February 21, 2014 | ||
| By: | /s/ Lawrence G. Altadonna | |
| Lawrence G. Altadonna, Treasurer, Principal Financial & Accounting Officer | ||
| Date: February 21, 2014 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Brian S. Shlissel | |
| Brian S. Shlissel, President & Chief Executive Officer | ||
| Date: February 21, 2014 | ||
| By: | /s/ Lawrence G. Altadonna | |
| Lawrence G. Altadonna, Treasurer, Principal Financial & Accounting Officer | ||
| Date: February 21, 2014 | ||