<SEC-DOCUMENT>0001193125-23-100690.txt : 20230413
<SEC-HEADER>0001193125-23-100690.hdr.sgml : 20230413
<ACCEPTANCE-DATETIME>20230413171045
ACCESSION NUMBER:		0001193125-23-100690
CONFORMED SUBMISSION TYPE:	N-2
PUBLIC DOCUMENT COUNT:		11
FILED AS OF DATE:		20230413
DATE AS OF CHANGE:		20230413

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIMCO MUNICIPAL INCOME FUND II
		CENTRAL INDEX KEY:			0001170299
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21076
		FILM NUMBER:		23819096

	BUSINESS ADDRESS:	
		STREET 1:		1633 BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-739-4000

	MAIL ADDRESS:	
		STREET 1:		1633 BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIMCO MUNICIPAL INCOME FUND II
		CENTRAL INDEX KEY:			0001170299
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-271243
		FILM NUMBER:		23819095

	BUSINESS ADDRESS:	
		STREET 1:		1633 BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-739-4000

	MAIL ADDRESS:	
		STREET 1:		1633 BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
<IS-FILER-A-NEW-REGISTRANT>N
<IS-FILER-A-WELL-KNOWN-SEASONED-ISSUER>N
<FILED-PURSUANT-TO-GENERAL-INSTRUCTION-A2>Y
<IS-FUND-24F2-ELIGIBLE>N
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-2
<SEQUENCE>1
<FILENAME>d299075dn2.htm
<DESCRIPTION>N-2
<TEXT>
<HTML><HEAD>
<TITLE>N-2</TITLE>
</HEAD>


 <body style="margin-top:0.0pt;width:613.35pt;" bgcolor="white">
  <div> <div><a name="xx_908614d3-bd2e-4522-92e9-daea1aede325_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:700pt;"> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">As filed with the Securities and Exchange Commission on April 13, 2023</font></div> <div style="line-height:11.0pt;text-align:right;"><font
style="color:#000000;font-family:Times New Roman;font-size:9pt;font-weight:bold;">1933 Act File No. 333-[ ]</font></div> <div style="line-height:11.0pt;text-align:right;"><font
style="color:#000000;font-family:Times New Roman;font-size:9pt;font-weight:bold;">1940 Act File No. 811-21076</font>
<hr style="background-color:#000000;height:0.75pt;margin-bottom:2pt;margin-left:0%;margin-top:3.0pt;position:relative;text-align:left;top:-1pt;width:480pt;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:2pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:480pt;"> </div> <div style="line-height:16.0pt;margin-top:5.25pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:14pt;font-weight:bold;margin-left:0%;">UNITED STATES SECURITIES AND EXCHANGE COMMISSION</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">Washington, D.C. 20549</font> <hr style="background-color:#000000;height:1.5pt;margin-bottom:2pt;margin-top:11.0pt;width:255pt;"> </div>
<div style="line-height:16.0pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:14pt;font-weight:bold;margin-left:0%;">Form N-2</font></div> <div style="line-height:10.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0%;">(Check appropriate box or boxes)</font></div> <div style="line-height:16.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:14pt;font-weight:bold;margin-left:0%;">REGISTRATION STATEMENT</font><div style="text-align:right;margin-top:-14pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:470pt;">&#9746;</font></div> </div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">UNDER</font> <br><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">THE SECURITIES ACT OF 1933</font> <br><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Pre-Effective Amendment No.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;">
</font><div style="text-align:right;margin-top:-12pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;"> &#9744;</font></div> <br><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Post-Effective Amendment No.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;">
</font><div style="text-align:right;margin-top:-12pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;"> &#9744;</font></div> </div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">And</font></div> <div style="line-height:16.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:14pt;font-weight:bold;margin-left:0%;">REGISTRATION STATEMENT</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">UNDER</font> <br><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">THE INVESTMENT COMPANY ACT OF
1940</font><div style="text-align:right;margin-top:-12pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:470pt;">&#9746;</font></div> </div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">Amendment No. 8</font><div style="text-align:right;margin-top:-12pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:470pt;">&#9746;</font></div> <hr style="background-color:#000000;height:1.5pt;margin-bottom:2pt;margin-top:11.0pt;width:255pt;"> </div>
<div style="line-height:18.0pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:16pt;font-weight:bold;margin-left:0%;">PIMCO MUNICIPAL INCOME FUND II</font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">(Exact Name of Registrant as Specified in Charter)</font>
<hr style="background-color:#000000;height:1.5pt;margin-bottom:2pt;margin-top:11.0pt;width:255pt;"> </div> <div style="line-height:12.0pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">1633 Broadway</font> <br><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">New York, New York 10019</font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">(Address of Principal Executive Offices)</font> <br><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">(Number, Street, City, State, Zip Code)</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">(888) 877-4626</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">(Registrant&#8217;s Telephone Number, including Area Code)</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">Ryan G. Leshaw</font> <br><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">c/o Pacific Investment Management
Company LLC</font> <br><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">650 Newport Center Drive</font> <br><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Newport
Beach, California 92660</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">(Name and Address (Number, Street, City,
State, Zip Code) of Agent for Service)</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">Copies of Communications
to:</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;margin-left:30pt;width:420pt;" cellpadding="0" cellspacing="0">
<tr style="height:auto;">
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Top;width:210pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">David C. Sullivan, Esq.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div>
<div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Adam M. Schlichtmann, Esq.</font></div>
<div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Ropes &amp; Gray LLP</font></div>
<div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Prudential Tower, 800 Boylston Street</font></div>
<div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Boston, Massachusetts 02199</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Top;width:210pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Douglas P. Dick, Esq.</font></div> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Adam T. Teufel, Esq.</font></div> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Dechert LLP</font></div> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">1900 K Street, N.W.</font></div> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Washington, D.C. 20006</font></div> </div> </td> </tr> </table> </div> <div style="line-height:18.5pt;margin-top:15pt;text-align:center;">
<hr style="background-color:#000000;height:1.5pt;margin-bottom:2pt;margin-top:15.0pt;width:255pt;"> </div> <div style="line-height:12.0pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">Approximate Date of Proposed Public Offering:</font> <br><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">From
time to time after the effective date of this Registration Statement.</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_908614d3-bd2e-4522-92e9-daea1aede325_2"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:700pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:28pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Check box if the only securities being registered on this Form are being offered pursuant to dividend or interest </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">reinvestment plans.</font></div> </div> </td> </tr>
<tr style="height:37pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9746;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Check box if any securities being registered on this Form will be offered on a delayed or continuous basis in </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">reliance on Rule 415 under the Securities Act of 1933 (&#8220;Securities Act&#8221;), other
than securities offered in </font></div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">connection with a dividend reinvestment
plan.</font></div> </div> </td> </tr>
<tr style="height:25pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9746;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Check box if this Form is a registration statement pursuant to General Instruction A.2 or a post-effective </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">amendment thereto.</font></div> </div> </td> </tr>
<tr style="height:37pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Check box if this Form is a registration statement pursuant to General Instruction B or a post-effective </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">amendment thereto that will become effective upon filing with the Commission pursuant to Rule
462(e) under the </font></div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Securities Act.</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Check box if this Form is a post-effective amendment to a registration statement filed pursuant to General </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Instruction B to register additional securities or additional classes of securities pursuant
to Rule 413(b) under the </font></div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Securities Act.</font></div> </div> </td> </tr>
</table> </div> <div style="line-height:5.0pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:1pt;line-height:5pt;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:16pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:480pt;" colspan="2"> <div style="line-height:12pt;text-align:left;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0.0pt;">It is proposed that this filing will become effective (check appropriate box):</font></div> </div> </td> </tr>
<tr style="height:10pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">when declared effective pursuant to Section 8(c), or as follows:</font></div> </div> </td> </tr> </table> </div> <div style="line-height:5.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;line-height:5pt;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:16pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:480pt;" colspan="2"> <div style="line-height:12pt;text-align:left;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0.0pt;">If appropriate, check the following box:</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">This post-effective amendment designates a new effective date for a previously filed post-effective amendment.</font></div> </div> </td> </tr>
<tr style="height:37pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">This Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Act, and the Securities Act registration statement number of the earlier effective
registration statement for the </font></div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">same offering is:</font></div> </div> </td> </tr>

<tr style="height:25pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">This Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, and the </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Securities Act registration statement number of the earlier effective registration statement
for the same offering is:</font></div> </div> </td> </tr>
<tr style="height:22pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">This Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, and the </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Securities Act registration statement number of the earlier effective registration statement
for the same offering is:</font></div> </div> </td> </tr> </table> </div> <div style="line-height:5.0pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:1pt;line-height:5pt;">&#8195;</font></div>
<div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:16pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:480pt;" colspan="2"> <div style="line-height:12pt;text-align:left;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0.0pt;">Check each box that appropriately characterizes the Registrant:</font></div> </div> </td> </tr>
<tr style="height:25pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9746;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Registered Closed-End Fund (closed-end company that is registered under the Investment Company Act of 1940 </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(&#8220;Investment Company Act&#8221;)).</font></div> </div> </td> </tr>
<tr style="height:25pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Business Development Company (closed-end company that intends or has elected to be regulated as a business </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">development company under the Investment Company Act).</font></div> </div> </td> </tr>
<tr style="height:25pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Interval Fund (Registered Closed-End Fund or a Business Development Company that makes periodic repurchase </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">offers under Rule 23c-3 under the Investment Company Act).</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9746;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">A.2 Qualified (qualified to register securities pursuant to General Instruction A.2 of this Form).</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Well-Known Seasoned Issuer (as defined by Rule 405 under the Securities Act).</font></div> </div> </td> </tr>
<tr style="height:25pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Emerging Growth Company (as defined by Rule 12b-2 under the Securities Exchange Act of 1934 (&#8220;Exchange </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Act&#8221;).</font></div> </div> </td> </tr>
<tr style="height:37pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">transition period for complying with any new or revised financial accounting standards
provided pursuant to </font></div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Section 7(a)(2)(B) of Securities Act.</font></div> </div>
</td> </tr>
<tr style="height:22pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:13pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&#9744;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:467pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">New Registrant (registered or regulated under the Investment Company Act for less than 12 calendar months </font></div>
<div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">preceding this filing).</font></div> </div> </td> </tr> </table> </div>
<div style="line-height:7.75pt;margin-top:7pt;text-align:left;"> <hr style="background-color:#000000;height:0.75pt;margin-bottom:2pt;margin-left:0%;margin-top:7.0pt;position:relative;text-align:left;top:-1pt;width:480pt;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:2pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:480pt;"> </div> <div style="line-height:12.0pt;margin-top:3.25pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">effective date until the Registrant shall file a further amendment that specifically states that this Registration </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may determine.</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
  <div> <div><a name="xx_9a216af1-c12b-4674-b778-99dd806641e4_1"></A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;">
</div> <div style="float:left;margin-left:44pt;margin-top:42pt;width:518pt;z-index:-1;min-height:40pt;"> <div style="margin-top:0.00pt;text-align:right;">
<img src="g291117img4aa016ac1.gif" alt=" " style="height:14pt;width:120pt;"><font style="color:#000000;float:left;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;height:40pt;margin-left:44pt;margin-top:-40pt;width:175pt;z-index:-1;"> <div style="margin-top:0.00pt;text-align:left;">
<img src="g291117imga417a2ef2.gif" alt=" " style="height:505pt;width:164pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:44pt;margin-top:8pt;width:175pt;z-index:-1;min-height:655pt;"> <div style="margin-top:631.33pt;text-align:left;">
<img src="g291117img01f08d683.gif" alt=" " style="height:10pt;width:79pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:44pt;margin-top:-655pt;width:520pt;z-index:-1;min-height:655pt;"> <div style="margin-top:545.00pt;text-align:right;">
<img src="g291117grey_dots.gif" alt=" " style="height:110pt;width:128pt;"><font style="color:#000000;float:left;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:222pt;margin-top:-655pt;width:340pt;min-height:655pt;"> <div style="line-height:18.0pt;margin-top:11pt;text-align:left;"><font style="color:#FF0000;font-family:Arial;font-size:16pt;font-style:italic;">Subject to
Completion</font></div> <div style="line-height:18.0pt;margin-top:3pt;text-align:left;"><font style="color:#FF0000;font-family:Arial;font-size:16pt;font-style:italic;">Preliminary Prospectus dated April 13, 2023</font></div>
<div style="line-height:18.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial;font-size:16pt;">PIMCO Municipal Income Fund
II</font><font style="color:#000000;font-family:Arial Narrow;font-size:16pt;line-height:18pt;"> </font></div>
<div style="line-height:47.0pt;margin-top:10pt;text-align:left;"><font style="color:#323232;font-family:Times New Roman;font-size:45pt;">Base Prospectus</font></div> <div style="line-height:16.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial;font-size:14pt;">[ ], 2023</font></div>
<div style="line-height:13.0pt;margin-top:6pt;text-align:left;"><font style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">AND MAY BE CHANGED. WE MAY NOT SELL THESE
</font><font style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">SECURITIES UNTIL THE REGISTRATION STATEMENT FILED </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">WITH THE SECURITIES AND EXCHANGE COMMISSION IS </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">OFFER OR SALE IS NOT PERMITTED.</font></div> <div style="line-height:14.0pt;margin-top:24pt;text-align:left;"><font
style="color:#00687D;font-family:Arial;font-size:12pt;">PIMCO Municipal Income Fund II</font><font style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div>
<div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:340pt;" cellpadding="0" cellspacing="0">
<tr style="height:15pt;">
<td style="background-color:#FFFFFF;border-bottom:1pt solid #00687D;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:281.88pt;"> <div style="line-height:12.5pt;text-align:left;">
<div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8.5pt;font-weight:bold;margin-left:0.0pt;">$[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:1pt solid #00687D;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:58.12pt;"> <div style="line-height:12.5pt;text-align:left;">
<div style="margin-left:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8.5pt;font-weight:bold;">Common Shares</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:azure;padding-top:3pt;vertical-align:Top;width:281.88pt;"> <div style="line-height:10.5pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:8.5pt;margin-left:0.0pt;">PIMCO Municipal Income Fund II</font></div> </div> </td>
<td style="background-color:azure;padding-top:3pt;vertical-align:Top;width:58.12pt;"> <div style="line-height:10.5pt;text-align:left;"> <div style="margin-left:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:8.5pt;">PML</font></div> </div> </td> </tr> </table> </div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Neither the U.S. Securities and Exchange Commission nor the U.S. Commodity
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Futures Trading Commission has approved or disapproved of these securities or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">determined that this prospectus is truthful or complete. Any representation to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">the contrary is a criminal offense.</font></div> <div style="line-height:12.0pt;margin-top:24pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">The Fund.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO Municipal Income Fund II (the &#8220;Fund&#8221;) is a diversified, closed-end </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management investment
company that commenced operations on June 28, 2002, following </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the initial public offering of its common shares.</font></div>
<div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s common shares of beneficial interest, par value $0.00001 per share (the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Common Shares&#8221;), are listed on the New York Stock Exchange (&#8220;NYSE&#8221;) under the symbol
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PML. The last reported sale price of the Common Shares, as reported by the NYSE on [ ] was </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">$[ ]
per Common Share. The net asset value (&#8220;NAV&#8221;) of the Common Shares at the close of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business on [ ] was $[ ] per Common Share.</font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">Investment Objective.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund seeks to provide current income exempt from federal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income tax.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">Investment Strategy.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under normal circumstances, the Fund invests at least 90% of its net </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets in municipal bonds which pay
interest that, in the opinion of bond counsel to the issuer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(or on the basis of other authority believed by Pacific Investment Management Company LLC </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(&#8220;PIMCO&#8221;) to be reliable), is exempt from regular federal income taxes (i.e., excluded from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">gross
income for federal income tax purposes but not necessarily exempt from the federal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">alternative minimum tax). Subject to its other investment policies, the Fund may invest up
to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">20% of its total assets in investments the interest from which is subject to the federal
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">alternative minimum tax.</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_9a216af1-c12b-4674-b778-99dd806641e4_2"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:36pt;margin-top:36pt;width:522pt;min-height:684pt;"> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Investment in the Fund&#8217;s Common Shares involves substantial risks arising from, among other strategies, the Fund&#8217;s ability to invest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">in debt instruments that are, at the time of purchase, rated below investment grade (below Baa3 by Moody&#8217;s Investors Service, Inc. or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">below BBB- by either S&amp;P Global Ratings or Fitch, Inc.) or unrated but determined by PIMCO to be of comparable quality and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Fund&#8217;s use of leverage. Debt securities of below investment grade quality are regarded as having predominantly speculative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as &#8220;high yield&#8221; securities </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">or &#8220;junk bonds.&#8221; The Fund&#8217;s exposure to municipal securities means it is particularly subject to the risk that a municipal issuer will be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">unable to make timely payments of interest and principal, which risk will generally be higher during general economic downturns and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">may be adversely impacted by litigation, legislation or political events, or by the bankruptcy of the issuer. Before investing in the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Common Shares, you should read the discussion of the principal risks of investing in the Fund in &#8220;Principal Risks of the Fund.&#8221; </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Certain of these risks are summarized in &#8220;Prospectus Summary&#8212;Principal Risks of the Fund.&#8221; The Fund cannot assure you that it will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">achieve its investment objective, and you could lose all of your investment in the Fund.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">Portfolio Contents.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The municipal bonds in which the Fund invests are generally issued by a U.S. state or territory, a city in a U.S. state or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">territory, or a political subdivision, agency, authority, or instrumentality of such state, territory or city. Also included within the general category of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds in which the Fund may invest are loans (including participations and assignments) and participations in lease obligations.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund invests at
least 80% of its net assets in municipal bonds that are, at the time of purchase, rated &#8220;investment grade&#8221; by at least one of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s Investors Service,
Inc (&#8220;Moody&#8217;s&#8221;), S&amp;P Global Ratings (&#8220;S&amp;P&#8221;) or Fitch, Inc. (&#8220;Fitch&#8221;), or unrated but determined by PIMCO to be of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">comparable quality. &#8220;Investment grade&#8221; means a rating, in the case of Moody&#8217;s, of Baa3 or higher, or in the case of S&amp;P and Fitch, of BBB- or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 20% of its net assets in municipal bonds that are, at the time of investment, rated Ba or B or lower by Moody&#8217;s, BB or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">B or lower by S&amp;P or Fitch or that are unrated but judged to be of comparable quality by PIMCO. These bonds are rated below investment grade </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and are commonly known as &#8220;high yield securities&#8221; or &#8220;junk bonds.&#8221; In the event that ratings services assign different ratings to the same security, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO will use the highest rating as the credit rating for that security. Bonds of below investment grade quality are regarded as having </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">predominantly speculative characteristics with respect to capacity to pay interest and repay principal and are commonly referred to as &#8220;junk </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds.&#8221; Bonds in the lowest investment grade category may also be considered to possess some speculative characteristics.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest
in &#8220;structured&#8221; notes, which are privately negotiated debt obligations where the principal and/or interest is determined by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reference to the performance of a
benchmark asset or market, such as selected securities or an index of securities, or the differential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance of two assets or markets, such as indices reflecting
taxable and tax-exempt bonds. The Fund may do so for the purpose of reducing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the interest rate sensitivity of the Fund&#8217;s portfolio (and thereby decreasing the
Fund&#8217;s exposure to interest rate risk).</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase municipal bonds that are additionally secured by insurance, bank credit agreements, or escrow accounts. The credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quality of companies which provide such credit enhancements will affect the value and overall credit risk posed by investments in such securities. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations may reduce the Fund&#8217;s income and returns.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may buy and sell municipal bonds on a when-issued, delayed delivery or forward commitment basis, making
payment or taking </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivery at a later date. The Fund may invest in floating rate debt instruments (&#8220;floaters&#8221;), including inverse floaters, and engage in credit
spread </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">trades.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in and/or originate loans, including, without limitation, to, on behalf of, authorized by,
sponsored by, and/or in connection </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with a project for which authority and responsibility lies with one or more U.S. states or territories, cities in a U.S. state or
territory, or political </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subdivisions, agencies, authorities or instrumentalities of such states, territories or cities, which may be in the form of whole loans, assignments,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participations, secured and unsecured notes, senior and second lien loans, mezzanine loans, bridge loans or similar investments, including to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrowers that are unrated or have credit ratings that are determined by one or more nationally recognized statistical rating organizations and/or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO to be below investment grade.</font></div> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund may invest in trust certificates issued in tender option bond (&#8220;TOB&#8221;) programs. In these programs, a trust typically issues two classes of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certificates and
seeks to use the proceeds to purchase municipal securities having longer maturities and bearing interest at a higher fixed interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate than prevailing short-term
tax-exempt rates. Service providers of such trusts may have recourse against the Fund in certain cases.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may also invest up to 10% of its total assets in securities of other open- or closed-end investment
companies that invest primarily in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds of the types in which the Fund may invest directly. The Fund may invest in other investment companies either during
periods </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">when it has large amounts of uninvested cash, during periods when there is a shortage of attractive, high-yielding municipal bonds available in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the market, or when PIMCO believes share prices of other investment companies offer attractive values. The Fund may invest in investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies that are advised by PIMCO or its affiliates to the extent permitted by applicable law and/or pursuant to exemptive relief from the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Securities and Exchange Commission (the &#8220;SEC&#8221;). As a shareholder of an investment company, the Fund will bear its ratable share of that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment company&#8217;s expenses and would remain subject to payment of the Fund&#8217;s management fees and other expenses with respect to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets so invested.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund generally intends to invest primarily in municipal bonds with longer-term maturities (for example, 15-30
years), but may invest in bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of any maturity and otherwise seek a shorter average weighted maturity of its portfolio.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:36pt;margin-top:8pt;width:522pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:center;"> <hr style="background-color:#000000;height:0.3pt;margin-bottom:0pt;margin-left:0%;margin-top:2.53pt;text-align:left;top:6.73pt;width:522pt;"><font
style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;margin-left:0%;">ii</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_9a216af1-c12b-4674-b778-99dd806641e4_3"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:36pt;margin-top:36pt;width:522pt;min-height:684pt;"> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase and sell (write) a variety of derivatives, such as put options and call options on securities, short sales, credit dafult </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swaps, swap agreements, and securities indexes, and enter into interest rate and index futures contracts and purchase and sell options on such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">futures contracts for hedging purposes or as part of its overall investment strategy. The Fund also may enter into swap agreements with respect </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to interest rates and indexes of securities. If other types of financial instruments, including other types of options, futures contracts, or futures </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">options are traded in the future, the Fund may also use those instruments.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 20% of its net assets in securities which are illiquid at the time of investment (i.e.,
any investment that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly changing the market value of the investment).</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In connection with rating the Fund&#8217;s outstanding auction rate preferred shares of beneficial interest
(&#8220;ARPS&#8221;) and remarketable variable rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">munifund term preferred shares of beneficial interest (&#8220;RVMTP Shares&#8221; and, together with the ARPS and any
other preferred shares the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may have outstanding, the &#8220;Preferred Shares&#8221;), Moody&#8217;s and Fitch impose asset coverage tests and other restrictions that
may limit the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to engage in certain of the transactions described above.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">Leverage.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund currently utilizes leverage principally through its outstanding Preferred Shares and floating rate notes issued in TOB </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions. The Fund may also enter into transactions other than those noted above that may give rise to a form of leverage including, futures </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, short sales, when-issued, delayed delivery and forward commitment transactions and selling credit default swaps.The Fund may also </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determine to issue other types of Preferred Shares or determine to decrease the leverage it currently maintains by redeeming its outstanding </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares or unwinding TOBs and may or may not determine to replace such leverage through other sources. If the Fund issues </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional Preferred Shares in the future, all costs and expenses relating to the issuance and ongoing maintenance of the Preferred Shares will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be borne by the holders of Common Shares (&#8220;Common Shareholders&#8221;), and these costs and expenses may be significant. Leverage transactions </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pursued by the Fund may increase its duration and sensitivity of the value of the Fund's portfolio to interest rate movements.</font></div>
<div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Depending upon market conditions and other factors, the Fund may or may not determine to add leverage following an
offering to maintain or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase the total amount of leverage (as a percentage of the Fund&#8217;s total assets) that the Fund currently maintains, taking into account the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional assets raised through the issuance of Common Shares in such offering. The Fund utilizes certain kinds of leverage, including, without </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation, Preferred Shares and TOBs, opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such leverage </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">over time and from time to time based on PIMCO&#8217;s assessment of the yield curve environment, interest rate trends, market conditions and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">factors. If the Fund determines to add leverage following an offering, it is not possible to predict with accuracy the precise amount of leverage that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would be added, in part because it is not possible to predict the number of Common Shares that ultimately will be sold in an offering or series of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offerings. To the extent that the Fund does not add additional leverage following an offering, the Fund&#8217;s total amount of leverage as a percentage </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of its total assets will decrease, which could result in a reduction of investment income available for distribution to Common Shareholders.</font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">Additional Information.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">This prospectus is part of a registration statement that the Fund has filed with the
SEC using the &#8220;shelf&#8221; registration </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">process. Under the shelf registration process, the Fund may offer, from time to time, in one or more offerings, Common Shares
on terms to be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined at the time of the offering. This prospectus provides you with a general description of the Common Shares that the Fund may offer. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Each time the Fund uses this prospectus to offer Common Shares, the Fund will provide a prospectus supplement that will contain specific </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information about the terms of that offering. The prospectus supplement may also add, update or change information contained in this </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prospectus. You should read this prospectus and the applicable prospectus supplement, which contain important information about the Fund, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">carefully before you invest in the Common Shares. Common Shares may be offered directly to one or more purchasers, through agents </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">designated from time to time by the Fund, or to or through underwriters or dealers. The prospectus supplement relating to an offering will identify </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any agents, underwriters or dealers involved in the sale of Common Shares, and will set forth any applicable purchase price, fee, commission or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">discount arrangement between the Fund and its agents or underwriters, or among the Fund&#8217;s underwriters, or the basis upon which such amount </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be calculated. See &#8220;Plan of Distribution.&#8221; The Fund may not sell any Common Shares through agents, underwriters or dealers without </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivery or deemed delivery of a prospectus supplement describing the method and terms of the particular offering of the Common Shares. You </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">should retain this prospectus and any prospectus supplement for future reference. A Statement of Additional Information, dated [ ], 2023, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">containing additional information about the Fund has been filed with the SEC and is incorporated by reference in its entirety into this prospectus. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">You may request a free copy of the Statement of Additional Information, request the Fund&#8217;s most recent annual and semiannual reports, request </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information about the Fund and make shareholder inquiries by calling toll-free (844)-337-4626 or by writing to the Fund at c/o Pacific Investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Management Company LLC, 1633 Broadway, New York, New York 10019. The Fund&#8217;s Statement of Additional Information and most recent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">annual and semiannual reports are available, free of charge, on the Fund&#8217;s website (https://www.pimco.com/prospectuses). You can obtain the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">same information, free of charge, from the SEC&#8217;s website (http://www.sec.gov).</font></div> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Common Shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency.</font></div> <div style="line-height:12.0pt;margin-top:3pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">You should rely
only on the information contained or incorporated by reference in this prospectus and any related prospectus </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">supplement. The Fund has not authorized anyone
to provide you with information other than that contained or incorporated by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">reference in this prospectus or any applicable prospectus supplement, and any
free writing prospectus that the Fund distributes. The </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:36pt;margin-top:8pt;width:522pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:center;">
<hr style="background-color:#000000;height:0.3pt;margin-bottom:0pt;margin-left:0%;margin-top:2.53pt;text-align:left;top:6.73pt;width:522pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;margin-left:0%;">iii</font>
</div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_9a216af1-c12b-4674-b778-99dd806641e4_4">
</A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:36pt;margin-top:36pt;width:522pt;min-height:684pt;"> <div style="line-height:12.0pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Fund does not take any responsibility for, and does not provide any assurances as to the reliability of, any other information that </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">others may give you. The Fund is not making an offer of these securities in any jurisdiction where the offer is not permitted. You </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">should not assume that the information contained in this prospectus or any applicable prospectus supplement is accurate as of any </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">date other than the date on the front hereof or thereof. The Fund&#8217;s business, financial condition, results of operations and prospects </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">may have changed since that date.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:36pt;margin-top:8pt;width:522pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:center;">
<hr style="background-color:#000000;height:0.3pt;margin-bottom:0pt;margin-left:0%;margin-top:2.53pt;text-align:left;top:6.73pt;width:522pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;margin-left:0%;">iv</font>
</div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_8b74198a-22f8-45c6-b0f7-e3b25fb1a4b3_toc_1">
</A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:648pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;">Table of Contents</font> <br><font style="color:#000000;font-family:Times New Roman;font-size:1pt;margin-left:0%;">&#8195;</font></div>
<div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;margin-left:196pt;width:342pt;" cellpadding="0" cellspacing="0">
<tr style="height:15.5pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:319.99pt;"> <div style="line-height:0.5pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;">Page</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_1">Prospectus
 Summary</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">1</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_9c519e66-9d8b-4520-a388-f621e5d8e3ee_1">Summary of
 Fund Expenses</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">20</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_97d9c2ca-0117-4794-94ee-07b5ad061d49_1">Financial Highlights
</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">21</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_1">Use of Proceeds
</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">22</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_1">The
Fund</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">22</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_1">Investment
 Objective and Policies</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">22</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_12">Use of Leverage
</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">33</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_14">Principal
 Risks of the Fund</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">35</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_32">How the Fund
Manages Risk</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">53</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_1">Management
 of the Fund</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">54</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_3">Net Asset Value
</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">56</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_3">Distributions
</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">56</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_5">Dividend Reinvestment
Plan</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">58</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_5">Description
 of Capital Structure</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">58</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_12">Plan of Distribution
</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">65</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_13">Market and
 Net Asset Value Information</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">66</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_13">Anti-Takeover
 and Other Provisions in the Declaration of Trust and Bylaws</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">66</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_15">Repurchase
 of Common Shares; Conversion to Open-End Fund</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">68</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_15">Tax Matters
</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">68</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_17">Custodian
 and Transfer Agent</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">70</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_18">Independent
 Registered Public Accounting Firm</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">71</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_18">Legal Matters
</A></font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">71</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_18">Incorporation
 by Reference</A></font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">71</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:8pt;"> </font></div> </div> </td> </tr>
<tr style="height:9pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3pt;padding-top:3.5pt;vertical-align:Top;width:319.99pt;"> <div style="line-height:8pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;"><a href="#xx_4c86fc12-d518-4a62-8a76-18c3281346df_1">Appendix A
- Description of Securities Ratings</A></font></div> </div> </td>
<td style="padding-bottom:3pt;padding-top:3.5pt;vertical-align:Top;width:22.01pt;"> <div style="line-height:8pt;text-align:left;"> <div style="margin-left:2.75pt;margin-right:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;margin-left:0.00pt;">A</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">-</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">1</font></div>
</div> </td> </tr> </table> </div> <div style="line-height:8.0pt;text-align:left;"> </div> </div> <div style="clear:both;"> </div> <div style="float:left;height:2pt;margin-left:30pt;margin-top:66pt;width:538pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0pt;position:relative;text-align:left;top:-2.74pt;width:538pt;"> </div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_1"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="background-color:#00687D;float:left;margin-left:190pt;margin-top:3pt;width:379pt;min-height:72.6pt;">
<div style="line-height:14.21pt;text-align:left;"> </div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-51.6pt;width:538pt;z-index:-1;min-height:40pt;"> <div style="margin-top:0.00pt;text-align:left;">
<img src="g291117img4aa016ac1.gif" alt=" " style="height:14pt;width:120pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:32pt;margin-top:-51.6pt;width:538pt;min-height:63pt;"> <div style="line-height:21.0pt;margin-top:0;text-align:left;"><font
style="color:#FFFFFF;font-family:Times New Roman;font-size:21pt;line-height:21pt;margin-left:184pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-61pt;width:538pt;min-height:61.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:2.2pt;width:260pt;min-height:642pt;"> <div style="line-height:14.0pt;margin-top:8pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Prospectus
Summary</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">This is only a summary. This summary may not contain all of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">information that you should consider before investing in PIMCO </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Municipal
Income Fund II&#8217;s (the &#8220;Fund&#8221;) common shares of beneficial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">interest, par value $0.00001 per share (the &#8220;Common Shares&#8221;). You
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">should review the more detailed information contained in this
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">prospectus and in any related prospectus supplement and in the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Statement of Additional Information, especially the information set forth </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">under the heading &#8220;Principal Risks of the Fund.&#8221;</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">The Fund</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO
Municipal Income Fund II (the &#8220;Fund&#8221;) is a diversified, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">closed-end management investment company. The Fund commenced </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations on June 28, 2002, following the initial public offering of its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Common Shares are listed on the New York Stock Exchange </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(&#8220;NYSE&#8221;) under the symbol &#8220;PML.&#8221; As of [ ], 2023, the net assets of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund
attributable to Common Shares were [ ] and the Fund had </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding [ ] Common Shares, [ ] auction rate preferred shares of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">beneficial interest (&#8220;ARPS&#8221;) and [ ] remarketable variable rate munifund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">term preferred shares of
beneficial interest (&#8220;RVMTP Shares&#8221; and, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">together with the ARPS and any other preferred shares the Fund may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have outstanding, the &#8220;Preferred Shares&#8221;). The last reported sale price </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Common Shares, as
reported by the NYSE on [ ], 2023, was $[ ] </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">per Common Share. The net asset value (&#8220;NAV&#8221;) of the Common Shares </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">at the close of business on [ ], 2023 was $[ ] per Common Share. See </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Description of Capital
Structure.&#8221;</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">The Offering</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may offer, from time to time, in one or more offerings, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares on terms to be determined at the time of the offering. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Common Shares may be offered at
prices and on terms to be set </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">forth in one or more prospectus supplements. You should read this
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prospectus and the applicable prospectus supplement carefully before </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">you invest in the Common
Shares. Common Shares may be offered </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">directly to one or more purchasers, through agents designated from </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time to time by the Fund, or to or through underwriters or dealers. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prospectus supplement relating to an
offering will identify any agents, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underwriters or dealers involved in the sale of Common Shares, and will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">set forth any applicable purchase price, fee, commission or discount </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">arrangement between the Fund and its
agents or underwriters, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">among the Fund&#8217;s underwriters, or the basis upon which such amount
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be calculated. See &#8220;Plan of Distribution.&#8221; The Fund may not sell any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common
Shares through agents, underwriters or dealers without </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivery or deemed delivery of a prospectus supplement describing the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">method and terms of the particular offering of the Common Shares.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Use of Proceeds</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The net
proceeds of an offering will be invested in accordance with the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment objective and policies as set forth below. It is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">currently anticipated that the Fund will be able to invest substantially all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the net proceeds of an
offering in accordance with its investment </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:2.2pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">objective and policies within approximately 30 days of receipt by the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund, depending on the amount and timing
of proceeds available to the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund as well as the availability of investments consistent with the
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment objective and policies, and except to the extent </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">proceeds are held in
cash to pay dividends or expenses, or for temporary </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">defensive purposes. See &#8220;Use of Proceeds.&#8221;</font></div>
<div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Investment Objective and Policies</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund seeks to provide current income exempt from federal income </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tax. In pursuing the Fund&#8217;s investment objective, the Fund&#8217;s investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manager, Pacific
Investment Management Company LLC (&#8220;PIMCO or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the &#8220;Investment Manager&#8221;), also seeks to preserve and enhance the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the Fund&#8217;s holdings relative to the municipal bond market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally, using proprietary
analytical models that test and evaluate the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sensitivity of those holdings to changes in interest rates and yield </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relationships. The Fund cannot assure you that it will achieve its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment objective, and you could lose
all of your investment in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Portfolio Investment Strategies</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under normal circumstances, the Fund invests at least 90% of its net </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets in municipal bonds which pay
interest that, in the opinion of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bond counsel to the issuer (or on the basis of other authority believed by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the PIMCO to be reliable), is exempt from regular federal income taxes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(i.e., excluded from gross income for
federal income tax purposes but </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not necessarily exempt from the federal alternative minimum tax).
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Subject to its other investment policies, the Fund may invest up to 20% </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of its total assets in
investments the interest from which is subject to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal alternative minimum tax (&#8220;AMT Bonds&#8221;).</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund invests at least 80% of its net assets in municipal bonds that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">at the time of investment are investment grade quality. Investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">grade quality bonds are bonds rated within
the four highest grades (Baa </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by Moody&#8217;s or BBB or better by S&amp;P or Fitch), or bonds that are unrated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">but determined to be of comparable quality by PIMCO. The Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest up to 20% of its net assets in
municipal bonds that are, at the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time of investment, rated Ba/BB or B or lower by Moody&#8217;s, S&amp;P or Fitch </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or that are unrated but judged to be of comparable quality by PIMCO. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">These bonds are rated below investment
grade and are commonly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">known as &#8220;high yield securities&#8221; or &#8220;junk bonds. Bonds of below </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade quality are regarded as having predominantly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative characteristics with respect to
capacity to pay interest and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repay principal. Bonds in the lowest investment grade category may also </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be considered to possess some speculative characteristics. In the event </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that ratings services assign different
ratings to the same security, PIMCO </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will use the highest rating as the credit rating for that security.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investment in municipal bonds may be based on PIMCO&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">belief that they have attractive yield and/or total return potential. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund attempts to produce returns
relative to the municipal bond market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally by prudent selection of municipal bonds. The Fund may invest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in bonds associated with a particular municipal market sector (for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">example, electric utilities), issued by a
particular municipal issuer, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">having particular structural characteristics, that PIMCO believes may be </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">1&#8194;&#8194;
</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">PIMCO Municipal Income Fund II | </font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base
Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;height:12pt;margin-left:30pt;margin-top:-12pt;width:538pt;z-index:-1;"> <div style="margin-top:0.00pt;text-align:right;">
<img src="g291117img01f08d683.gif" alt=" " style="height:10pt;width:79pt;"><font style="color:#000000;float:left;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_2"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">undervalued. PIMCO may purchase such a bond for the Fund&#8217;s portfolio </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">because it represents a market
sector or issuer that PIMCO considers </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">undervalued. For example, municipal bonds of particular types (e.g., </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">hospital bonds, industrial revenue bonds or bonds issued by a particular </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">municipal issuer) could be
undervalued if there is a temporary excess of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">supply in that market sector, or because of a general decline in the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">market price of municipal bonds of the market sector for reasons that do </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">not apply to the particular municipal
bonds that are considered </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">undervalued.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Portfolio Contents</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
municipal bonds in which the Fund invests are generally issued by a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. state or territory, a city in a U.S. state or territory, or a political </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subdivision, agency, authority, or instrumentality of such state, territory </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or city.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Also included within
the general category of municipal bonds in which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund may invest are loans (including participations and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assignments) and participations in lease obligations. A lease obligation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is an obligation in the form of a
lease or installment purchase that is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued by a state or local government to acquire equipment and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">facilities. Income from such obligations generally is exempt from state </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and local tax in the state of
issuance. Lease obligations may be secured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or unsecured. Lease obligations do not constitute general obligations of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the municipality for which the municipality's taxing power is pledged.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in &#8220;structured&#8221; notes, which are privately </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">negotiated debt obligations where
the principal and/or interest is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined by reference to the performance of a benchmark asset or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market, such as selected securities or an index of securities, or the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">differential performance of
two assets or markets, such as indices </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reflecting taxable and tax-exempt bonds. The Fund may do so for the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purpose of reducing the interest rate sensitivity of the Fund&#8217;s portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(and thereby decreasing the
Fund&#8217;s exposure to interest rate risk). The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate of interest on an income-producing security may be fixed, floating </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or variable.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase municipal bonds that are additionally secured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by insurance, bank credit agreements, or
escrow accounts. The credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quality of companies which provide such credit enhancements will
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect the value and overall credit risk posed by investments in such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. Although the
insurance feature reduces certain financial risks, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the premiums for insurance and the higher market price paid for insured </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations may reduce the Fund&#8217;s income.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may buy and sell municipal bonds on a when-issued, delayed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivery or forward commitment basis, making payment or taking </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivery at a later date. The Fund may invest
in floating rate debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments (&#8220;floaters&#8221;), including inverse floaters, and engage in credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">spread trades. A credit spread trade is an investment position relating to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a difference in the prices or
interest rates of two bonds or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, in which the value of the investment position is determined </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by changes in the difference between the prices or interest rates, as the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">case may be, of the respective
securities.</font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in and/or originate loans, including, without </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation, to, on behalf of, authorized by,
sponsored by, and/or in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with a project for which authority and responsibility lies with
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more U.S. states or territories, cities in a U.S. state or territory, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political
subdivisions, agencies, authorities or instrumentalities of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">states, territories or cities, which may be in the form of whole loans, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assignments, participations, secured and unsecured notes, senior and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">second lien loans, mezzanine loans,
bridge loans or similar investments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including to borrowers that are unrated or have credit ratings that are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined by one or more nationally recognized statistical rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">organizations (&#8220;NRSROs&#8221;) and/or
PIMCO to be below investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">grade. This may include loans to public or private firms or individuals, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such as in connection with housing development projects. The loans the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund invests in or originates may vary
in maturity and/or duration. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund is not limited in the amount, size or type of loans it may invest in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or originate, including with respect to a single borrower or with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to borrowers that are determined
to be below investment grade, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other than pursuant to any applicable law. The Fund's investment in or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">origination of loans may also be limited by the requirements the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intends to observe under Subchapter M of
the Internal Revenue Code of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">1986, as amended (the &#8220;Code&#8221;), in order to qualify as a regulated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment company (&#8220;RIC&#8221;).</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in trust certificates issued in tender option bond </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(&#8220;TOB&#8221;) programs. In these programs, a trust typically issues two classes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of certificates,
floating rate certificates (&#8220;TOB Floaters&#8221;) and residual </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest certificates (&#8220;TOB Residuals&#8221;), and seeks to use the proceeds to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase municipal securities having longer maturities and bearing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest at a higher fixed interest rate
than prevailing short-term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tax-exempt rates. Service providers of such trusts may have recourse
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">against the Fund in certain cases, such as if the Fund holds recourse TOB </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Residuals. The Fund may
invest in both non-recourse and recourse TOB </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Residuals to leverage its
portfolio.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may also invest up to 10% of its total assets in securities of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other open- or closed-end investment companies that invest primarily in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds of the types in which
the Fund may invest directly. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may invest in other investment companies either during periods </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">when it has large amounts of uninvested cash, during periods when </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">there is a shortage of attractive,
high-yielding municipal bonds available </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the market, or when PIMCO believes share prices of other investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies offer attractive values. The Fund may invest in investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies that are advised by PIMCO or
its affiliates to the extent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">permitted by applicable law and/or pursuant to exemptive relief from
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Securities and Exchange Commission (the &#8220;SEC&#8221;). As a shareholder </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of an investment
company, the Fund will bear its ratable share of that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment company&#8217;s expenses and would remain subject to payment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund&#8217;s management fees and other expenses with respect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets so invested.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase
and sell (write) a variety of derivatives, such as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">put options and call options on securities, short sales, credit default </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swaps, swap agreements, and securities indexes, and enter into interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate and index futures contracts and
purchase and sell options on such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">futures contracts for hedging purposes or as part of its overall </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">2</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_3"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment strategy. The
Fund also may enter into swap agreements </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">with respect to interest rates and indexes of securities. If other types of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">financial instruments, including other types of options, futures contracts, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or futures options are traded in
the future, the Fund may also use those </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 20% of its net assets in securities which are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">illiquid at the time of investment (i.e., any investment that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reasonably expects cannot be sold or
disposed of in current market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions in seven calendar days or less without the sale or disposition </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly changing the market value of the investment).</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may enter into repurchase agreements, in which the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchases a security from a bank or broker-dealer, which agrees to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repurchase the security at the Fund&#8217;s
cost plus interest within a specified </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund has outstanding auction rate preferred shares of beneficial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest (&#8220;ARPS&#8221;) and
remarketable variable rate munifund term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred shares of beneficial interest (&#8220;RVMTP Shares&#8221; and, together </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the ARPS and any other preferred shares the Fund may have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding, the &#8220;Preferred
Shares&#8221;). In connection with rating the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s Preferred Shares, Moody&#8217;s and Fitch, as applicable, impose </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specific asset coverage tests and other limitations and restrictions that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may limit the Fund&#8217;s ability
to engage in certain of the transactions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">described above. In addition, failure to comply with these limitations </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and restrictions could, among other things, preclude the Fund from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">declaring or paying dividend or
distributions.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:underline;">Temporary Defensive Investments</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may make short-term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments when attempting to respond to adverse market, economic, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political, or other conditions, as determined by PIMCO. Upon PIMCO&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recommendation, for temporary
defensive purposes and in order to keep </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s cash fully invested, the Fund may invest up to 100% of its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">net assets in high quality, short-term investments, including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. government, mortgage-backed and corporate
debt securities that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be either tax-exempt or taxable. To the extent the Fund invests in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable short-term investments, the Fund will not at such times be in a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">position to achieve its
investment objective.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Leverage</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund currently utilizes leverage principally through its outstanding </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares and floating rate notes issued in TOB transactions. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may also enter into transactions
other than those noted above </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that may give rise to a form of leverage including, among others, futures </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and forward contracts (including foreign currency exchange contracts), </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total return swaps and other derivative
transactions, loans of portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, short sales, when-issued, delayed delivery and forward
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitment transactions and selling credit default swaps. The Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may also determine to issue
other types of Preferred Shares or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determine to decrease the leverage it currently maintains by redeeming </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or tendering its outstanding Preferred Shares or unwinding TOBs and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may or may not determine to replace such
leverage through other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sources.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Depending upon market
conditions and other factors, the Fund may or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may not determine to add leverage following an offering to maintain or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase the total amount of leverage (as a percentage of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total assets) that the Fund
currently maintains, taking into account the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional assets raised through the issuance of Common Shares in such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offering. The Fund utilizes certain kinds of leverage, including, without </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation, Preferred Shares and
TOBs, opportunistically and may choose </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to increase or decrease, or eliminate entirely, its use of such leverage </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">over time and from time to time based on PIMCO&#8217;s assessment of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">yield curve environment, interest
rate trends, market conditions and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other factors. The Fund may also determine to decrease the leverage it </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">currently maintains by redeeming its outstanding Preferred Shares or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unwinding TOBs and may or may not
determine to replace such leverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through other sources. If the Fund determines to add leverage following </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an offering, it is not possible to predict with accuracy the precise </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount of leverage that would be added,
in part because it is not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possible to predict the number of Common Shares that ultimately will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be
sold in an offering or series of offerings. To the extent that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">does not add additional leverage following an offering, the Fund&#8217;s total </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount of leverage as a percentage of its total assets will decrease, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could result in a reduction of
investment income available for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution to Common Shareholders.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Leverage transactions pursued by the Fund may increase its duration </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and sensitivity of the value of the Fund's portfolio to interest rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">movements. The Fund also may borrow
money for temporary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">administrative purposes, to add leverage to the portfolio or for the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">settlement of securities transactions which otherwise might require </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">untimely dispositions of
portfolio securities held by the Fund.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Please see &#8220;Use of Leverage&#8221; and &#8220;Principal Risks of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8212;Leverage Risk&#8221; in
the body of this prospectus for additional </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information regarding leverage and related risks.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Investment Manager</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Pacific Investment Management Company LLC (&#8220;PIMCO&#8221; or the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Investment Manager&#8221;) serves as the investment manager of the Fund. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Subject to the supervision of
the Board of Trustees of the Fund (the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Board&#8221;), PIMCO is responsible for managing the investment activities </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund and the Fund&#8217;s business affairs and other administrative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">matters. David Hammer is primarily
responsible for the day-to-day </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management of the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Investment Manager receives an annual fee from the Fund, payable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">monthly, in an amount equal to 0.685% of
the Fund&#8217;s average daily net </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset value including daily net assets attributable to any Preferred </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares. Average daily net assets means an average of all the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determinations of the Fund&#8217;s net assets
(including net assets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">attributable to Preferred Shares) during a given month at the close of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business on each business day during such month. PIMCO is located at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">650 Newport Center Drive,
Newport Beach, CA, 92660. Organized in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">1971, PIMCO provides investment management and advisory services </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to private accounts of institutional and individual clients and to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">registered investment companies. PIMCO is a
majority-owned indirect </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subsidiary of Allianz SE, a publicly traded European insurance and </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">3&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_4"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">financial services company. As of December 31, 2022, PIMCO had </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">approximately $1.74 trillion of assets under
management and $1.36 </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">trillion of third-party assets under management.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Dividends and Distributions</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund makes regular monthly cash distributions to Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders at a rate based upon the past and
projected net income of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund. Subject to applicable law, the Fund may fund a portion of its
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions with gains from the sale of portfolio securities and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sources. Distributions
can only be made from net investment income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">after paying any accrued dividends to holders of the Preferred Shares. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s dividend policy, as well as the dividend rate that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pays on its Common Shares, may
vary as portfolio and market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions change, and will depend on a number of factors. There can
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be no assurance that a change in market conditions or other factors will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not result in a change
in the Fund distribution rate or that the rate will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be sustainable in the future.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund generally distributes each year all of its net investment income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and net short-term capital gains. In
addition, at least annually, the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally distributes net realized long-term capital gains not previously </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributed, if any. The Fund may distribute less than the entire amount </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of net investment income earned in a
particular period. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">undistributed net investment income would be available to supplement
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">future distributions. As a result, the distributions paid by the Fund for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any particular monthly
period may be more or less than the amount of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">net investment income actually earned by the Fund during the period. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The tax treatment and characterization of the Fund&#8217;s distributions may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">vary significantly from time to
time because of the varied nature of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investments.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To the extent required by the the Investment Company Act of 1940, as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amended (the &#8220;1940 Act&#8221;), and
other applicable laws, absent an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exemption, a notice will accompany each monthly distribution with
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to the estimated source (as between net income, gains or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital source) of the
distribution made. If the Fund estimates that a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portion of one of its dividend distributions may be comprised of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amounts from sources other than net investment income in accordance </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with its internal policies, accounting
records and related accounting </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">practices, the Fund will notify shareholders of record of the estimated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">composition of such distribution through a notice required by Section 19 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the 1940 Act (a &#8220;Section 19
Notice&#8221;). For these purposes, the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">estimates the source or sources from which a distribution is paid, to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">close of the period as of which it is paid, in reference to its internal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accounting records and related
accounting practices. If, based on such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accounting records and practices, it is estimated that a particular </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution does not include capital gains or paid-in surplus or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital sources, a Section 19 Notice
generally would not be issued. It is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">important to note that differences exist between the Fund&#8217;s daily </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">internal accounting records and practices, the Fund&#8217;s financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">statements presented in accordance with
U.S. Generally Accepted </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Accounting Principles (&#8220;U.S. GAAP&#8221;), and recordkeeping practices under </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income tax regulations. Accordingly, among other consequences, it is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possible that the Fund may not issue a
Section 19 Notice in situations </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">where the Fund&#8217;s financial statements prepared later and in accordance </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">with U.S. GAAP and/or the final
tax character of those distributions </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">might later report that the sources of those distributions included </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">capital gains and/or a return of capital.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The tax characterization of the Fund&#8217;s distributions made in a taxable </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">year cannot finally be determined until at or after the end of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable year. As a result, there is a
possibility that the Fund may make </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total distributions during a taxable year in an amount that exceeds the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s net investment income and net realized capital gains (as reduced </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by any capital loss
carry-forwards) for the relevant year. For example, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may distribute amounts early in the year that are derived from </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term capital gains, but incur net short-term capital losses later in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the year, thereby offsetting
short-term capital gains out of which the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund has already made distributions. In such a situation, the amount by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which the Fund&#8217;s total distributions exceed net investment income and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">net realized capital gains would
generally be treated as a tax-free return </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of capital up to the amount of a shareholder&#8217;s tax basis in his or her </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares, with any amounts exceeding such basis treated as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">gain from the sale of Common Shares. In
general terms, a return of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital would occur where the Fund distribution (or portion thereof)
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">represents a return of a portion of your investment, rather than net </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income or capital gains
generated from your investment during a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">particular period. Although return of capital distributions are not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable, such distributions would reduce the basis of a shareholder&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares and therefore may
increase a shareholder&#8217;s capital </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">gains, or decrease a shareholder&#8217;s capital loss, upon a sale of Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares, thereby potentially increasing a shareholder&#8217;s tax liability. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund will prepare and make
available to shareholders detailed tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information with respect to the Fund&#8217;s distributions annually. See &#8220;Tax </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Matters.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The 1940 Act currently
limits the number of times the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribute long-term capital gains in any tax year, which may increase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the variability of the Fund&#8217;s distributions and result in certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions being comprised more or
less heavily than others of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">long-term capital gains currently eligible for favorable income tax rates. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund, as well as several other PIMCO-managed closed end funds, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">has received exemptive relief from the SEC
permitting it to make a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater number of capital gains distributions to holders of the ARPS </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than
would otherwise be permitted by Section 19(b) of the 1940 Act </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and Rule 19b-1 under the 1940 Act.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Unless a Common Shareholder elects to receive distributions in cash, all </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions of Common Shareholders whose shares are registered with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the plan agent under the Dividend
Reinvestment Place (the &#8220;Plan&#8221;) will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be automatically reinvested in additional Common Shares of the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under the Plan. For more information on the Fund&#8217;s dividends and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions, see
&#8220;Distributions&#8221; and &#8220;Dividend Reinvestment Plan.&#8221;</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:right;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">4</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_5"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:14.0pt;margin-top:8pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Custodian
and Transfer Agent</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">State Street Bank and Trust Company serves as custodian of the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets and also provides certain fund accounting and sub-administrative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">services to the Investment Manager on
behalf of the Fund. American </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Stock Transfer &amp; Trust Company, LLC serves as the Fund&#8217;s transfer agent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and dividend disbursement agent. See &#8220;Custodian and Transfer Agent.&#8221;</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Listing</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund&#8217;s outstanding Common Shares are listed on the NYSE under </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the trading or &#8220;ticker&#8221; symbol &#8220;PML&#8221;, as will be the Common Shares </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offered in this prospectus, subject to notice of issuance.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Market Price of Shares</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares of closed-end investment companies frequently trade at prices </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lower than NAV. Shares of closed-end investment companies have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">during some periods traded at prices higher
than NAV and during other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">periods traded at prices lower than NAV. The Fund cannot assure you
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that Common Shares will trade at a price equal to or higher than NAV in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the future.&nbsp;Proceeds
from the sale of Common Shares of an offering will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be reduced by any sales load and/or commissions and the amount of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offering expenses paid or reimbursed by the Fund. The Fund (and not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO) bears all offering expenses. See
&#8220;Use of Proceeds.&#8221; In addition </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to NAV, market price may be affected by factors relating to the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such as dividend levels and stability (which will in turn be affected by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund expenses, including the costs of
any leverage used by the Fund, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">levels of interest payments by the Fund&#8217;s portfolio holdings, levels of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appreciation/depreciation of the Fund&#8217;s portfolio holdings, regulation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affecting the timing and
character of Fund distributions and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">factors), portfolio credit quality, liquidity, call protection, market supply </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and demand and similar factors relating to the Fund&#8217;s portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holdings. See &#8220;Use of
Leverage,&#8221; &#8220;Principal Risks of the Fund,&#8221; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Description of Capital Structure&#8221; and &#8220;Repurchase of Common Shares; </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Conversion to Open-End Fund&#8221; in this prospectus, and see &#8220;Repurchase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of Common Shares; Conversion
to Open-End Fund&#8221; in the Statement of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Additional Information. The Common Shares are designed for long-term </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investors and should not be treated as trading vehicles.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Principal Risks of the Fund</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The following is a summary of the principal risks associated with an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment in Common Shares of the Fund.
Investors should also refer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to &#8220;Principal Risks of the Fund&#8221; in this prospectus and &#8220;Investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Objective and Policies&#8221; in the Statement of Additional Information for a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more detailed explanation of
these and other risks associated with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investing in the Fund.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Market Discount Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The price of the Fund&#8217;s Common Shares will fluctuate with market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions and other factors. If you sell your Common Shares, the price </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">received may be more or less than your
original investment. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares are designed for long-term investors and should not be
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">treated as trading vehicles. Shares of closed-end management </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment companies frequently
trade at a discount from their NAV. The </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Common Shares may trade at a price that is less than the offering price </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">for Common Shares issued pursuant to
an offering. This risk may be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">greater for investors who sell their Common Shares relatively shortly
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">after completion of an offering. The sale of Common Shares by the Fund </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(or the perception that
such sales may occur), particularly if sold at a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">discount to the then current market price of the Common Shares, may </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">have an adverse effect on the market price of the Common Shares.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Market Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The market
price of securities owned by the Fund may go up or down, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sometimes rapidly or unpredictably. Securities may decline in value due </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to factors affecting securities markets generally or particular industries </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">represented in the securities
markets. The value of a security may decline </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">due to general market conditions that are not specifically related to a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">particular company, such as real or perceived adverse economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions, changes in the general outlook for
corporate earnings, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changes in interest or currency rates, adverse changes to credit markets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or
adverse investor sentiment generally. The value of a security may also </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decline due to factors that affect a particular industry or industries, such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as labor shortages or increased production costs and competitive </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions within an industry. During a
general downturn in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities markets, multiple asset classes may decline in value
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">simultaneously. Equity securities generally have greater price volatility </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than fixed income
securities. Credit ratings downgrades may also </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">negatively affect securities held by the Fund. Even when markets </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perform well, there is no assurance that the investments held by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund will increase in value along with
the broader market.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, market risk includes the risk that geopolitical and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events will disrupt the economy on a national or global level. For </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instance, war, terrorism, market
manipulation, government defaults, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government shutdowns, political changes or diplomatic developments, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">public health emergencies (such as the spread of infectious diseases, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pandemics and epidemics) and
natural/environmental disasters can all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">negatively impact the securities markets, which could cause the Fund to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lose value. These events could reduce consumer demand or economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">output, result in market closures, travel
restrictions or quarantines, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly adversely impact the economy. The current contentious </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">domestic political environment, as well as political and diplomatic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events within the United States and
abroad, such as presidential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">elections in the United States or abroad or the U.S. government&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">inability at times to agree on a long-term budget and deficit reduction </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">plan, has in the past resulted, and
may in the future result, in a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government shutdown or otherwise adversely affect the U.S. regulatory </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">landscape, the general market environment and/or investor sentiment, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could have an adverse impact on the
Fund&#8217;s investments and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations. Additional and/ or prolonged U.S. federal government
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shutdowns may affect investor and consumer confidence and may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely impact financial markets
and the broader economy, perhaps </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">suddenly and to a significant degree. Governmental and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quasi-governmental authorities and regulators throughout the world </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have previously responded to
serious economic disruptions with a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">variety of significant fiscal and monetary policy changes, including but </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not limited to, direct capital infusions into companies, new monetary </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">5&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_6"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">programs and dramatically lower interest rates. An unexpected or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">sudden reversal of these policies, or the
ineffectiveness of these policies, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">could increase volatility in securities markets, which could adversely </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">affect the Fund&#8217;s investments. Any market disruptions could also prevent </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund from executing
advantageous investment decisions in a timely </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">manner. Funds that have focused their investments in a region enduring </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">geopolitical market disruption will face higher risks of loss. Thus, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investors should closely monitor current
market conditions to determine </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">whether the Fund meets their individual financial needs and tolerance </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">for risk.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Recently, inflation levels have been at their highest point in nearly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">40 years and the Federal Reserve has
begun an aggressive campaign to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">raise certain benchmark interest rates in an effort to combat inflation. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">During any periods of rising inflation, fixed income securities markets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may experience heightened levels of
interest rate, volatility and liquidity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk. Any interest rate increases in the future could cause the value of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any fund, such as the Fund, that invests in fixed income securities to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decrease.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Municipal Bond Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investing in the municipal bond market involves the risks of investing in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt securities generally and
certain other risks. The amount of public </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information available about the municipal bonds in which the Fund may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest is generally less than that for corporate equities or bonds, and the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment performance of the
Fund's investment in municipal bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may therefore be more dependent on the analytical abilities of PIMCO </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than its investments in taxable bonds. The secondary market for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds also tends to be less well
developed or liquid than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">many other securities markets, which may adversely affect the Fund's
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to sell municipal bonds at attractive prices.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The ability of municipal issuers to make timely payments of interest and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal may be diminished during
general economic downturns, by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">litigation, legislation or political events, or by the bankruptcy of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer. Laws, referenda, ordinances or regulations enacted in the future </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by Congress or state legislatures or
the applicable governmental entity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could extend the time for payment of principal and/or interest, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impose other constraints on enforcement of such obligations, or on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability of municipal issuers to levy
taxes. Issuers of municipal securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also might seek protection under the bankruptcy laws. In the event of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bankruptcy of such an issuer, the Fund could experience delays in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collecting principal and interest and the
Fund may not, in all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">circumstances, be able to collect all principal and interest to which it is
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entitled. To enforce its rights in the event of a default in the payment of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest or repayment
of principal, or both, the Fund may take </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possession of and manage the assets securing the issuer&#8217;s obligations </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on such securities, which may increase the Fund&#8217;s operating expenses. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Adverse economic, business, legal
or political developments might affect </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">all or a substantial portion of the Fund&#8217;s municipal bonds in the same </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manner. The Fund will be particularly subject to these risks to the extent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that it focuses its investments in
municipal bonds in a particular state or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">geographic region.</font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in trust certificates issued in TOB programs. In </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these programs, a trust typically issues two classes of certificates and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">uses the proceeds to purchase
municipal securities having relatively </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">long maturities and bearing interest at a fixed interest rate substantially </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher than prevailing short-term tax-exempt rates. There is a risk that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund will not be considered the
owner of a TOB for federal income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tax purposes, and thus will not be entitled to treat such interest as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exempt from federal income tax. Certain TOBs may be less liquid or may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">become less liquid as a result of,
among other things, a credit rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downgrade, a payment default or a disqualification from tax-exempt </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">status. The Fund&#8217;s investment in the securities issued by a TOB trust may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involve greater risk and
volatility than an investment in a fixed rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bond, and the value of such securities may decrease significantly when </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market interest rates increase. TOB trusts could be terminated due to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market, credit or other events beyond
the Fund&#8217;s control, which could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">require the Fund to dispose of portfolio investments at inopportune </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">times and prices. The Fund may use a TOB program as a way of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">achieving leverage in its portfolio, in which
case the Fund will be subject </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to leverage risk. The use of TOBs typically will increase the Fund's
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">duration and cause the Fund to be subject to increased duration and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rate
risk.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in revenue bonds, which are typically issued to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fund a wide variety of capital projects including electric, gas, water and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sewer systems; highways, bridges
and tunnels; port and airport facilities; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">colleges and universities; and hospitals. Because the principal security </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for a revenue bond is generally the net revenues derived from a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">particular facility or group of facilities or,
in some cases, from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds of a special excise or other specific revenue source, there is no
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">guarantee that the particular project will generate enough revenue to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pay its obligations, in
which case the Fund&#8217;s performance may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affected.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in taxable municipal bonds, such as Build America </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bonds. Build America Bonds are tax credit bonds created by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">American Recovery and Reinvestment Act of 2009,
which authorized </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">state and local governments to issue Build America Bonds as taxable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds in
2009 and 2010, without volume limitations, to finance any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital expenditures for which such issuers could otherwise issue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">traditional tax-exempt bonds. The Fund&#8217;s investments in Build America </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bonds or similar taxable municipal
bonds will result in taxable income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the Fund may elect to pass through to holders of the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares the corresponding tax credits. The tax credits can </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally be used to offset federal income
taxes and the alternative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">minimum tax, but such credits are generally not refundable. Taxable
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds involve similar risks as tax-exempt municipal bonds, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including credit and market
risk.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipal securities are also subject to interest rate, credit, and liquidity </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk, which are discussed generally elsewhere in this section, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">elaborated upon below with respect to
municipal bonds.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;">
<div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;text-decoration:underline;">Interest Rate Risk</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The value of municipal securities, similar to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other fixed income securities, will likely drop as interest
rates rise </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the general market. Conversely, when rates decline, bond prices </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally
rise.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">6</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_7"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div> <div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;text-decoration:underline;">Credit Risk</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The risk that a borrower may be unable to make
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest or principal payments when they are due. A fund that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests in municipal securities
relies on the ability of the issuer to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service its debt. This subjects the Fund to credit risk in that the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal issuer may be fiscally unstable or exposed to large </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liabilities that could impair its ability to
honor its obligations. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipal issuers with significant debt service requirements, in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the
near-to mid-term; unrated issuers and those with less capital </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and liquidity to absorb additional expenses may be most at risk. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To the extent the Fund invests in lower quality or high yield </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal securities, it may be more sensitive
to the adverse credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events in the municipal market. The treatment of municipalities in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bankruptcy is more uncertain, and potentially more adverse to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt holders, than for corporate
issues.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;text-decoration:underline;">Liquidity Risk</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The risk that investors may have difficulty finding a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">buyer when they seek to sell, and therefore, may be
forced to sell </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">at a discount to the market value. Liquidity may sometimes be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impaired in the
municipal market and because the Fund primarily </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests in municipal securities, it may find it difficult to purchase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or sell such securities at opportune times. Liquidity can be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impaired due to interest rate concerns, credit
events, or general </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">supply and demand imbalances. Depending on the particular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer and current
economic conditions, municipal securities could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be deemed more volatile investments.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition to general municipal market risks, different municipal sectors </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may face different risks. For
instance, general obligation bonds are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">secured by the full faith, credit, and taxing power of the municipality </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuing the obligation. As such, timely payment depends on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipality&#8217;s ability to raise tax
revenue and maintain a fiscally sound </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">budget. The timely payments may also be influenced by any unfunded </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pension liabilities or other post-employee benefit plan (OPEB) liabilities.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Revenue bonds are secured by special tax revenues or other revenue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sources. If the specified revenues do not materialize, then the bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may not be repaid.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Private activity
bonds are yet another type of municipal security. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipalities use private activity bonds to finance the development of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industrial facilities for use by private enterprise. Principal and interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments are to be made by the
private enterprise benefitting from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">development, which means that the holder of the bond is exposed to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the risk that the private issuer may default on the bond.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moral obligation bonds are usually issued by special purpose public </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entities. If the public entity defaults, repayment becomes a &#8220;moral </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation&#8221; instead of a legal
one. The lack of a legally enforceable right </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to payment in the event of default poses a special risk for a holder of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the bond because it has little or no ability to seek recourse in the event </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of default.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, a
significant restructuring of federal income tax rates or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">even serious discussion on the topic in Congress could cause municipal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bond prices to fall. The demand for municipal securities is strongly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">influenced by the value of tax-exempt
income to investors. Lower </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income tax rates could reduce the advantage of owning municipal
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipal notes are similar
to general municipal debt obligations, but </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">they generally possess shorter terms. Municipal notes can be used to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provide interim financing and may not be repaid if anticipated revenues </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are not realized.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Municipal Project-Specific Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may be more sensitive to adverse economic, business or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political developments if it invests a substantial portion of its assets in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the bonds of specific projects
(such as those relating to education, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">health care, housing, transportation, and utilities), industrial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">development bonds, or in general obligation bonds, particularly if there </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is a large concentration from issuers
in a single state. This is because the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of municipal securities can be significantly affected by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political, economic, legal, and legislative realities of the particular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer&#8217;s locality or municipal
sector events. Similarly, changes to state or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal regulation tied to a specific sector, such as the hospital sector, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could have an impact on the revenue stream for a given subset of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Municipal Project Housing &#8211; Related Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in the bonds of projects focused on low-income, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affordable or other housing developments and businesses located in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">low income areas or invest in or originate
loans that finance or are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally related to such projects. There are significant risks associated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the Fund&#8217;s investment in the bonds of these types of projects and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loans related to such projects.
There may be federal, state and local </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">governmental regulatory restrictions on the operation, rental and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transfer of these projects, such as the requirement that the owners of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these affordable housing developments
rent or sell certain residential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">units to persons or families of low or moderate income and that the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount of rent that may be charged for these units may be less than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market rates. These restrictions may
adversely affect economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance relative to properties that are not subject to these
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restrictions. There are also no assurances that a project owner will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">able to achieve and
maintain sufficient rental income in order to pay all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operating expenses and maintenance and repair costs of such a project </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the debt service on the related bonds or loan on a timely basis. In </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the event that a project owner is
unable to pay all such costs, expenses </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and debt service, a default on the related bonds or loan is likely to occur.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Loans and Other Indebtedness; Loan Participations and </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Assignments Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loan
interests may take the form of (i) direct interests acquired during a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">primary distribution or other purchase of a loan, (ii) loans originated by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund or (iii) assignments of, novations of or participations in all or a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portion of a loan acquired in
secondary markets. In addition to credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk and interest rate risk, the Fund&#8217;s exposure to loan interests may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to additional risks. For example, purchasers of loans and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">forms of direct indebtedness depend
primarily upon the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness of the borrower for payment of principal and interest. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loans
are subject to the risk that scheduled interest or principal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments will not be made in a timely manner or at all, either of which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may adversely affect the value of the loan. If the Fund does not receive </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">7&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_8"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">scheduled interest or principal payments on such indebtedness, the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s share price and yield could be
adversely affected. Loans that are </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">fully secured may offer the Fund more protection than an unsecured </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">loan in the event of non-payment of scheduled interest or principal if </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund is able to access and monetize
the collateral. However, the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">collateral underlying a loan, if any, may be unavailable or insufficient to </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">satisfy a borrower&#8217;s obligation. If the Fund becomes owner, whole or in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">part, of any collateral after a
loan is foreclosed, the Fund may incur costs </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">associated with owning and/or monetizing its ownership of the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">collateral.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moreover, the purchaser of an assignment typically succeeds to all the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rights and obligations under the loan
agreement with the same rights </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and obligations as the assigning lender. Assignments may, however, be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">arranged through private negotiations between potential assignees and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">potential assignors, and the rights and
obligations acquired by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchaser of an assignment may differ from, and be more limited than,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those held by the assigning lender.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In connection with purchasing loan participations, the Fund generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will have no right to enforce compliance
by the borrower with the terms </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the loan agreement relating to the loan, nor any rights of set-off </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">against the borrower, and the Fund may not directly benefit from any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral supporting the loan in which
it has purchased the loan </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participation. As a result, the Fund will be subject to the credit risk of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">both the borrower and the lender that is selling the participation. In the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event of the insolvency of the
lender selling a participation, the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be treated as a general creditor of the lender and may not benefit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from any set-off between the lender and the borrower. Certain loan </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participations may be structured in a
manner designed to prevent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchasers of participations from being subject to the credit risk of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lender, but even under such a structure, in the event of the lender&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">insolvency, the lender&#8217;s
servicing of the participation may be delayed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the assignability of the participation impaired.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may have difficulty disposing of loans and loan participations. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Because there is no liquid market for many such investments, the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">anticipates that such investments could
be sold only to a limited number </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of institutional investors.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Economic exposure to loan interests through the use of derivative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions may involve greater risks than if the Fund had invested in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the loan interest directly during a
primary distribution, through direct </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">originations or through assignments of, novations of or participations in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a loan acquired in secondary markets since, in addition to the risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">described above, certain derivative
transactions may be subject to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage risk and greater illiquidity risk, counterparty risk, valuation risk </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other risks.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Loan
Origination Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in and/or originate loans, including, without </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation, to, on behalf of, authorized by, sponsored by, and/or in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with a project for which
authority and responsibility lies with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more U.S. states or territories, cities in a U.S. state or territory, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political subdivisions, agencies, authorities or instrumentalities of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">states, territories or cities,
which may be in the form of whole loans, </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">assignments, participations, secured and unsecured notes, senior and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">second lien loans, mezzanine loans,
bridge loans or similar investments, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">including to borrowers that are unrated or have credit ratings that are </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">determined by one or more NRSROs and/or PIMCO to be below </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment grade. This may include loans to public
or private firms or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">individuals, such as in connection with housing development projects. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The
loans the Fund invests in or originates may vary in maturity and/or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">duration. The Fund is not limited in the amount, size or type of loans it </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may invest in and/or originate, including with respect to a single </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">borrower or with respect to borrowers that
are determined to be below </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment grade, other than pursuant to any applicable law. The Fund&#8217;s </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment in or origination of loans may also be limited by the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">requirements the Fund intends to observe
under Subchapter M of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Code in order to qualify as a RIC. The loans acquired by the Fund may be
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">&#8220;municipal bonds&#8221; (including of a particular state) for purposes of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund's
investment policies or may be loans that produce income that is </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">subject to applicable regular income tax, subject to the Fund's </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment limits. The Fund may subsequently offer such investments for </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">sale to third parties; provided, that
there is no assurance that the Fund </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">will complete the sale of such an investment. If the Fund is unable to </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">sell, assign or successfully close transactions for the loans that it </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">originates, the Fund will be forced to
hold its interest in such loans for </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">an indeterminate period of time. This could result in the Fund&#8217;s </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investments having high exposure to certain borrowers. The Fund will be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">responsible for the expenses
associated with originating a loan </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(whether or not consummated). This may include significant legal and </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">due diligence expenses, which will be indirectly borne by the Fund and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Common Shareholders.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bridge loans are generally made with the expectation that the borrower </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will be able to obtain permanent financing in the near future. Any delay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in obtaining permanent financing
subjects the bridge loan investor to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increased risk. A borrower&#8217;s use of bridge loans also involves the risk </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the borrower may be unable to locate permanent financing to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">replace the bridge loan, which may impair the
borrower&#8217;s perceived </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loan origination and servicing companies are routinely involved in legal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceedings concerning matters that
arise in the ordinary course of their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business. In addition, a number of participants in the loan origination </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and servicing industry (including control persons of industry </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participants) have been the subject of
regulatory actions by state </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulators, including state attorneys general, and by the federal
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government. Governmental investigations, examinations or regulatory </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">actions, or private lawsuits,
including purported class action lawsuits, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may adversely affect such companies&#8217; financial results. To the extent the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund engages in origination and/or servicing directly, or has a financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest in, or is otherwise
affiliated with, an origination or servicing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">company, the Fund will be subject to enhanced risks of litigation, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulatory actions and other proceedings. As a result, the Fund may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">required to pay legal fees, settlement
costs, damages, penalties or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">charges, any or all of which could materially adversely affect the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and its holdings.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:right;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">8</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_9"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">U.S.
Government Securities Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Certain U.S. government securities, such as U.S. Treasury bills, notes,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds, and mortgage-related securities guaranteed by the Government </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">National Mortgage Association
(&#8220;GNMA&#8221;), are supported by the full </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">faith and credit of the United States; others, such as those of the Federal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Home Loan Banks (&#8220;FHLBs&#8221;) or the Federal Home Loan Mortgage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Corporation (&#8220;FHLMC&#8221;), are
supported by the right of the issuer to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrow from the U.S. Treasury; others, such as those of the Federal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">National Mortgage Association (&#8220;FNMA&#8221;), are supported by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">discretionary authority of the U.S.
government to purchase the agency&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations; and still others are supported only by the credit of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency, instrumentality or corporation. Although legislation has been </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">enacted to support certain government
sponsored entities, including the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">FHLBs, FHLMC and FNMA, there is no assurance that the obligations of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such entities will be satisfied in full, or that such obligations will not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decrease in value or default. It is
difficult, if not impossible, to predict </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the future political, regulatory or economic changes that could impact </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the government sponsored entities and the values of their related </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities or obligations. In addition,
certain governmental entities, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including FNMA and FHLMC, have been subject to regulatory scrutiny
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regarding their accounting policies and practices and other concerns </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that may result in
legislation, changes in regulatory oversight and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other consequences that could adversely affect the credit quality, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">availability or investment character of securities issued by these entities. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Yields available from U.S.
government debt securities are generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lower than the yields available from other debt securities. The values of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. government securities change as interest rates fluctuate.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">California State-Specific Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in municipal bonds issued by or on behalf of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">State of California and its political subdivisions, financing authorities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and their agencies, and therefore
may be affected significantly by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political, economic, regulatory, social, environmental, or public health </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">developments affecting the ability of California tax exempt issuers to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pay interest or repay principal.
Certain issuers of California municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds have experienced serious financial difficulties in the past and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reoccurrence of these difficulties may impair the ability of certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">California issuers to pay principal or
interest on their obligations. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Provisions of the California Constitution and State statutes which limit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the taxing and spending authority of California governmental entities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may impair the ability of California
issuers to pay principal and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest on their obligations. While California&#8217;s economy is broad, it does </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have major concentrations in advanced technology, aerospace and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">defense-related manufacturing, trade,
entertainment, real estate and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial services, and may be sensitive to economic problems affecting </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those industries. Future California political and economic developments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitutional amendments,
legislative measures, executive orders, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">administrative regulations, litigation and voter initiatives as well as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">environmental events, natural disasters, pandemics, epidemics or social </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unrest could have an adverse effect on
the debt obligations of California </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">New York
State-Specific Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may be affected significantly by economic, regulatory or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political developments affecting the ability of New York issuers to pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest or repay principal. Certain
issuers of New York municipal bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have experienced serious financial difficulties in the past and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reoccurrence of these difficulties may impair the ability of certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">New York issuers to pay
principal or interest on their obligations. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Provisions of the New York Constitution and State statutes which limit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the taxing and spending authority of New York governmental entities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may impair the ability of New York issuers
to pay principal and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest on their obligations. While New York&#8217;s economy is broad, it does </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have major concentrations in certain industries, such as financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">services, and may be sensitive to economic
problems affecting those </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industries. Future New York political and economic developments,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitutional amendments, legislative measures, executive orders, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">administrative regulations,
litigation and voter initiatives could have an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adverse effect on the debt obligations of New York issuers.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Puerto Rico-Specific Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may be affected significantly by economic, regulatory, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restructuring or political developments affecting the ability of Puerto </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rico issuers to pay interest or repay
principal. Certain issuers of Puerto </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rico municipal bonds have experienced serious financial difficulties in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the past and reoccurrence of these difficulties may impair the ability of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain Puerto Rico issuers to pay
principal or interest on their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations. Provisions of the Puerto Rico Constitution and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Commonwealth laws, including a federally-appointed oversight board </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to oversee the
Commonwealth&#8217;s financial operations, which limit the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxing and spending authority of Puerto Rico governmental entities may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impair the ability of Puerto Rico issuers to pay principal and/or interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on their obligations. While Puerto
Rico&#8217;s economy is broad, it does have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">major concentrations in certain industries, such as manufacturing and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service, and may be sensitive to economic problems affecting those </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industries. Future Puerto Rico political
and economic developments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitutional amendments, legislative measures, executive orders,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">administrative regulations, litigation, debt restructuring, and voter </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">initiatives could have an
adverse effect on the debt obligations of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Puerto Rico issuers.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Asset Allocation Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investment performance depends upon how its assets are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">allocated and reallocated. A principal risk of investing in the Fund is that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO may make less than optimal
or poor asset allocation decisions. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO employs an active approach to allocation among multiple fixed- </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income sectors, but there is no guarantee that such allocation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">techniques will produce the desired results. It
is possible that PIMCO </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will focus on an investment that performs poorly or underperforms other
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments under various market conditions. You could lose money on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">your investment in the Fund
as a result of these allocation decisions.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">9&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_10"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Management Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund is subject to management risk because it is an actively </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">managed investment portfolio. PIMCO and each individual portfolio </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manager will apply investment techniques and risk analysis in making </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment decisions for the Fund, but
there can be no guarantee that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these decisions will produce the desired results. Certain securities or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other instruments in which the Fund seeks to invest may not be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">available in the quantities desired. In
addition, regulatory restrictions, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">actual or potential conflicts of interest or other considerations may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cause PIMCO to restrict or prohibit participation in certain investments. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In such circumstances, PIMCO or the
individual portfolio managers may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determine to purchase other securities or instruments as substitutes. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Such substitute securities or instruments may not perform as intended, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could result in losses to the
Fund. The Fund is also subject to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk that deficiencies in the internal systems or controls of PIMCO or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">another service provider will cause losses for the Fund or hinder Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations. For example, trading delays
or errors (both human and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">systemic) could prevent the Fund from purchasing a security expected to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appreciate in value. To the extent the Fund employs strategies targeting </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived pricing
inefficiencies, arbitrage strategies or similar strategies, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">it is subject to the risk that the pricing or valuation of the securities and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments involved in such strategies may change unexpectedly, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may result in reduced returns or losses
to the Fund. Additionally, actual </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or potential conflicts of interest, legislative, regulatory, or tax </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restrictions, policies or developments may affect the investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">techniques available to PIMCO and each
individual portfolio manager in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with managing the Fund and may also adversely affect the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability of the Fund to achieve its investment objective. There also can be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no assurance that all
of the personnel of PIMCO will continue to be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with PIMCO for any length of time. The loss of the services of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more key employees of PIMCO could have an adverse impact on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s ability to realize its
investment objective.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, the Fund may rely on various third-party sources to calculate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its NAV. As a result, the Fund is
subject to certain operational risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with reliance on service providers and service providers&#8217; data </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sources. In particular, errors or systems failures and other technological </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issues may adversely impact the
Fund&#8217;s calculations of its NAV, and such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">NAV calculation issues may result in inaccurately calculated NAVs, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delays in NAV calculation and/or the inability to calculate NAV over </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">extended periods. The Fund may be unable
to recover any losses </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with such failures.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Issuer Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The value of a security may decline for a number of reasons that directly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relate to the issuer, such as
management performance, financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage and reduced demand for the issuer&#8217;s goods or services, as well </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as the historical and prospective earnings of the issuer and the value of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its assets. A change in the
financial condition of a single issuer may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect securities markets as a whole. These risks can apply to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares issued by the Fund and to the issuers of securities and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other instruments in which the Fund
invests.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Interest Rate Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Interest rate risk is the risk that fixed income securities and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments in the Fund&#8217;s
portfolio will decline in value because of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">change in interest rates. Interest rate changes can be sudden and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unpredictable, and the Fund may lose money as a result of movements </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in interest rates.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A wide variety of
factors can cause interest rates or yields of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. Treasury securities (or yields of other types of bonds) to rise (e.g., </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">central bank monetary policies, inflation rates, general economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions). Recently, inflation levels have
been at their highest point in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nearly 40 years, and the Federal Reserve has begun an aggressive
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">campaign to raise certain benchmark interest rates in an effort to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">combat inflation. During any
periods of rising inflation, fixed income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities markets may experience heightened levels of interest rate, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">volatility and liquidity risk.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fixed income securities with longer durations tend to be more sensitive </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to changes in interest rates, usually making them more volatile. Duration </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is a measure used to determine the
sensitivity of a security&#8217;s price to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changes in interest rates that incorporates a security&#8217;s yield, coupon, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">final maturity and call features, among other characteristics. Duration is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">useful primarily as a measure of
the sensitivity of a fixed income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security&#8217;s market price to interest rate (i.e., yield) movements. All other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">things remaining equal, for each one percentage point increase in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rates, the value of a portfolio of
fixed income investments would </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally be expected to decline by one percent for every year of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio&#8217;s average duration above zero. For example, the value of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio of fixed income
securities with an average duration of fourteen </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">years would generally be expected to decline by approximately 14% if </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rates rose by one percentage point.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rising interest rates may result in periods of volatility and a decline in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the Fund&#8217;s fixed
income investments.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Credit Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund
could lose money if the issuer or guarantor of a fixed income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security, or the counterparty to a derivatives contract, repurchase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreement or a loan of portfolio securities is unable or unwilling, or is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived as unable or unwilling, to
make timely principal and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest payments or to otherwise honor its obligations. The downgrade
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the credit of a security held by the Fund may decrease its value. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Measures such as average
credit quality may not accurately reflect the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">true credit risk of the Fund. This is especially the case if the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consists of securities with widely varying credit ratings. This risk is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater to the extent the Fund uses
leverage or derivatives. Municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds are subject to the risk that litigation, legislation or other political </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events, local business or economic conditions, or the bankruptcy of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer could have a significant effect
on an issuer&#8217;s ability to make </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments of principal and/or interest. Rising or high interest rates may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">deteriorate the credit quality of an issuer or counterparty, particularly if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an issuer or counterparty faces
challenges rolling or refinancing its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">10</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_11"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">High Yield
Securities Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To the extent that the Fund invests in high yield securities and unrated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities of similar credit quality (commonly known as &#8220;high yield </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities&#8221; or &#8220;junk
bonds&#8221;), the Fund will be subject to greater levels of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit risk, call risk and liquidity risk than funds that do not invest in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such securities, which could have a negative effect on the NAV and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market price of the Fund&#8217;s Common
Shares or Common Share </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividends. These securities are considered predominantly speculative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with
respect to an issuer&#8217;s continuing ability to make principal and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest payments, and may be more volatile than other types of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. An economic downturn or individual corporate developments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could adversely affect the market for
these securities and reduce the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s ability to sell these securities at an advantageous time or price. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase distressed securities that are in default or the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers of which are in bankruptcy,
which involve heightened risks.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In general, lower rated debt securities carry a greater degree of risk that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the issuer will lose its ability
to make interest and principal payments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could have a negative effect on the NAV and market price of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s Common Shares or Common Share dividends. Securities of below </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade quality are
regarded as having predominantly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative characteristics with respect to capacity to pay interest and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repay principal, and are commonly referred to as &#8220;high yield&#8221; securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or &#8220;junk
bonds.&#8221; High yield securities involve a greater risk of default </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and their prices are generally more volatile and sensitive to actual or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived negative developments.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">An economic downturn could severely affect the ability of issuers </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(particularly those that are highly leveraged) to service or repay their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt obligations. The Fund may
purchase stressed or distressed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities that are in default or the issuers of which are in bankruptcy, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which involve heightened risks. Lower-rated securities are generally less </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquid than higher-rated securities,
which may have an adverse effect on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s ability to dispose of a particular security. To the extent the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund focuses on below investment grade debt obligations, PIMCO&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capabilities in analyzing credit
quality and associated risks will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">particularly important, and there can be no assurance that PIMCO will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be successful in this regard. Due to the risks involved in investing in high </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">yield securities, an investment
in the Fund should be considered </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s credit quality policies apply only at the time a security is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchased, and the Fund is not required to dispose of a security in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event that a rating agency or PIMCO
downgrades its assessment of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit characteristics of a particular issue. Analysis of creditworthiness </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be more complex for issuers of high yield securities than for issuers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of higher quality debt
securities.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Call Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Call risk
refers to the possibility that an issuer may exercise its right to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">redeem a fixed income security earlier than expected. Issuers may call </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding securities prior to their maturity for a number of reasons. If </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an issuer calls a security in which
the Fund has invested, the Fund may </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">not recoup the full amount of its initial investment and may be forced to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reinvest in lower-yielding
securities, securities with greater credit risks or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities with other, less favorable features.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Reinvestment Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Income from the Fund&#8217;s portfolio will decline if and when the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests the proceeds from matured,
traded or called debt obligations at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market interest rates that are below the portfolio&#8217;s current earnings rate. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For instance, during periods of declining interest rates, an issuer of debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations may exercise an option
to redeem securities prior to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maturity, forcing the Fund to invest in lower-yielding securities. The Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also may choose to sell higher yielding portfolio securities and to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase lower yielding securities to
achieve greater portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">diversification, because the portfolio managers believe the current
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holdings are overvalued or for other investment-related reasons. A </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decline in income received by
the Fund from its investments is likely to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have a negative effect on dividend levels and the market price, NAV </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or overall return of the Common Shares.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Securities Lending Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For the purpose of achieving income, the Fund may lend its portfolio </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities to brokers, dealers, and other financial institutions provided a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">number of conditions are
satisfied, including that the loan is fully </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateralized. Please see &#8220;Investment Objective and Policies&#8212;Loans of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Portfolio Securities&#8221; in the Statement of Additional Information for more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">details. When the Fund lends
portfolio securities, its investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance will continue to reflect changes in the value of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities loaned, and the Fund will also receive a fee or interest on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral. Securities lending
involves the risk of loss of rights in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral or delay in recovery of the collateral if the borrower fails to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">return the security loaned or becomes insolvent. The Fund may pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lending fees to a party arranging the loan.
Cash collateral received by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund in securities lending transactions may be invested in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term liquid fixed income instruments or in money market or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term mutual funds, or
similar investment vehicles, including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affiliated money market or short-term mutual funds. The Fund bears the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk of such investments.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Valuation Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Certain securities in which the Fund invests may be less liquid and more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">difficult to value than other types
of securities. When market quotations </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or pricing service prices are not readily available or are deemed to be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unreliable, the Fund values its investments at fair value as determined in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">good faith pursuant to policies and
procedures approved by the Board. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fair value pricing may require subjective determinations about the value </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of a security or other asset. As a result, there can be no assurance that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fair value pricing will result in
adjustments to the prices of securities or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other assets or that fair value pricing will reflect actual market value, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and it is possible that the fair value determined for a security or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset will be materially different
from quoted or published prices, from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the prices used by others for the same security or other asset and/or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from the value that actually could be or is realized upon the sale of that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security or other asset.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">11&#8194;&#8194;Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal
Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_12">
</A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Leverage Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund&#8217;s use of leverage (as described under &#8220;Use of Leverage&#8221; in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">body of this prospectus) creates the opportunity for increased Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Share net income, but also creates special risks for Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders. To the extent used, there is no
assurance that the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leveraging strategies will be successful. Leverage is a speculative
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">technique that may expose the Fund to greater risk and increased costs. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s assets
attributable to any outstanding Preferred Shares (such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as the ARPS and RVMTP Shares) or the net proceeds that the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obtains from its use of TOBs, derivatives or other forms of leverage, if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any, will be invested in accordance
with the Fund&#8217;s investment objective </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and policies as described in this prospectus. Dividends payable with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to Preferred Shares outstanding and interest expense payable by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund with respect to any TOBs,
derivatives and other forms of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage will generally be based on shorter-term interest rates that
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would be periodically reset. If shorter-term interest rates rise relative to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the rate of return
on the Fund&#8217;s portfolio, the interest and other costs to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund of leverage (including interest expenses on TOBs and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividend rate on any outstanding Preferred Shares, including the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shareholder Gross-Up (as defined
below)) could exceed the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate of return on the debt obligations and other investments held by the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund, thereby reducing return to Common Shareholders. Leveraging </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions pursued by the Fund
may increase its duration and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sensitivity to interest rate movements. In addition, fees and expenses of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any form of leverage used by the Fund will be borne entirely by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shareholders (and not by preferred
shareholders) and will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reduce the investment return of the Common Shares. Therefore, there </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">can be
no assurance that the Fund&#8217;s use of leverage will result in a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher yield on the Common Shares, and it may result in losses. In </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addition, Preferred Shares issued by the Fund pay cumulative dividends, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which may tend to increase leverage
risk. Leverage creates several </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">major types of risks for Common Shareholders, including:</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the likelihood of greater volatility of NAV and market price of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares, and of the investment return to Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders, than a comparable portfolio without
leverage;</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the possibility either that Common Share dividends will fall if the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest and other costs of leverage rise, or that dividends paid on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares will fluctuate because such
costs vary over time; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the effects of leverage in a declining market or a rising interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate environment, as leverage is likely to cause a greater decline in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the NAV of the Common Shares than if the
Fund were not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leveraged and may result in a greater decline in the market value </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Common
Shares.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, the counterparties to the Fund&#8217;s leveraging transactions and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred shareholders of the
Fund will have priority of payment over </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s Common Shareholders.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is required to satisfy certain asset coverage requirements in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with its use of Preferred Shares, including those imposed by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulatory and rating agency
requirements. Accordingly, any decline in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the net asset value of the Fund&#8217;s investments could result in the risk that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund will fail to meet its asset coverage requirements for Preferred </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Shares or the risk of the Preferred Shares being downgraded by a rating </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">agency. In an extreme case, the Fund&#8217;s current investment income might </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">not be sufficient to meet the
dividend requirements on Preferred Shares </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">outstanding. In order to address these types of events, the Fund might </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">need to liquidate investments in order to fund a redemption of some or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">all of the Preferred Shares.
Liquidations at times of adverse economic </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">conditions may result in a loss to the Fund. At other times, these </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">liquidations may result in gain at the Fund level and thus in additional </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">taxable distributions to Common
Shareholders. See &#8220;Tax Matters&#8221; for </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">more information. Any Preferred Shares, TOBs, loans of portfolio </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities, short sales and when-issued, delayed delivery and forward </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">commitment transactions, credit default
swaps, reverse repurchases, or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">other derivatives by the Fund or counterparties to the Fund&#8217;s other </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">leveraging transactions, if any, would have, seniority over the Fund&#8217;s </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Common Shares.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">When the Fund issues
Preferred Shares, the Fund pays (and the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shareholders bear) all costs and expenses relating to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuance and ongoing maintenance of Preferred Shares. In addition, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders of Preferred Shares issued by the
Fund would have complete </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">priority over Common Shareholders in the distribution of the Fund&#8217;s
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets. Furthermore, preferred shareholders, voting separately as a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">single class, have the right
to elect two members of the Board at all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">times and to elect a majority of the trustees in the event two full years&#8217; </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividends on the Preferred Shares are unpaid, and also have separate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">class voting rights on certain matters.
Accordingly, preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholders may have interests that differ from those of Common
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders, and may at times have disproportionate influence over </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s
affairs.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Because the fees received by the Investment Manager are based on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">average daily net asset value of the Fund (including daily net assets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">attributable to any Preferred Shares),
the Investment Manager has a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial incentive for the Fund to utilize Preferred Shares, which may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">create a conflict of interest between the Investment Manager, on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one hand, and the Common Shareholders, on
the other hand.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Derivatives Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
use of derivative instruments (such as forwards, futures, swaps, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structured securities and other similar investments) involves risks </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">different from, and possibly greater than, the risks associated with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investing directly in securities and
other traditional investments. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Derivatives are subject to a number of risks, including relating to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage, liquidity, interest rate, market, credit, leveraging, counterparty, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(including credit),
operational, legal, tax and management risks, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">valuation complexity. Changes in the value of a derivative or other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar investments may not correlate perfectly with, and may be more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sensitive to market events than, the
underlying asset, rate or index, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund could lose more than the initial amount invested. Changes in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the value of a derivative or other similar instrument may also create </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">margin delivery or settlement payment
obligations for the Fund. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s use of derivatives or other similar investments may result in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">losses to the Fund, a reduction in the Fund&#8217;s returns and/or increased </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">volatility.</font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">12</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_13"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Over-the-counter
(&#8220;OTC&#8221;) derivatives or other similar investments are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also subject to the risk that a counterparty to the transaction will not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fulfill its contractual obligations to the other party, as many of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">protections afforded to
centrally-cleared derivative transactions might </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not be available for OTC derivatives or other similar investments. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">primary credit risk on derivatives that are exchange-traded or traded </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through a central clearing counterparty
resides with the Fund&#8217;s clearing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broker, or the clearinghouse. Changes in regulation relating to a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">registered fund&#8217;s use of derivatives and related instruments could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">potentially limit or impact the
Fund&#8217;s ability to invest in derivatives or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other similar investments, limit the Fund&#8217;s ability to employ certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">strategies that use derivatives or other similar investments and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affect the value of derivatives
and the Fund&#8217;s performance.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under Rule 18f-4 under the 1940 Act (the &#8220;Derivatives
Rule&#8221;), the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s leverage, including through derivatives exposure, is limited
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through a value-at risk-test (&#8220;VaR&#8221;). In addition, the Derivatives Rule </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may restrict
the Fund&#8217;s ability to engage in certain derivatives </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions and certain other transactions and/or increase the cost of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such transactions, which could adversely impact the value or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance of the Fund. Limits or restrictions
applicable to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties or issuers, as applicable, with which the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">engage in
derivative transactions could also limit or prevent the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from using certain instruments.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Credit Default Swaps Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Credit default swap agreements may involve greater risks than if the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund had invested in the reference obligation directly since, in addition </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to general market risks, credit
default swaps are subject to illiquidity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk, counterparty risk and credit risk. A buyer generally also will lose its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment and recover nothing should no credit event occur and the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swap is held to its termination date. If a
credit event were to occur, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of any deliverable obligation received by the seller (if any), </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coupled with the upfront or periodic payments previously received, may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be less than the full notional value it
pays to the buyer, resulting in a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loss of value to the seller. When the Fund acts as a seller of a credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default swap, it is exposed to many of the same risks of leverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">described herein since if an event of
default occurs, the seller must pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the buyer the full notional value of the reference obligation.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the Fund may
seek to realize gains by selling credit default </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swaps that increase in value, to realize gains on selling credit default </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swaps, an active secondary market for such instruments must exist or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund must otherwise be able to close
out these transactions at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">advantageous times. In addition to the risk of losses described above, if
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no such secondary market exists or the Fund is otherwise unable to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">close out these transactions
at advantageous times, selling credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default swaps may not be profitable for the Fund.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The market for credit
default swaps has become more volatile as the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness of certain counterparties has been questioned and/or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downgraded. The Fund will be subject to credit risk with respect to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties to the credit default
swap contract (whether a clearing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">corporation or another third party). If a counterparty&#8217;s credit becomes </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly impaired, multiple requests for collateral posting in a short </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">period of time could increase the risk that the Fund may not receive </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">adequate collateral. The Fund may exit its obligations under a credit </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">default swap only by terminating the
contract and paying applicable </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">breakage fees, or by entering into an offsetting credit default swap
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">position, which may cause the Fund to incur more losses.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Counterparty Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund will be subject to credit risk with respect to the counterparties </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the derivative contracts and
other instruments entered into by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund or held by special purpose or structured vehicles in which the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests. In the event that the Fund enters into a derivative transaction </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with a counterparty that subsequently
becomes insolvent or becomes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the subject of a bankruptcy case, the derivative transaction may be
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">terminated in accordance with its terms and the Fund&#8217;s ability to realize </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its rights under
the derivative instrument and its ability to distribute the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds could be adversely affected. If a counterparty becomes </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bankrupt or otherwise fails to perform its obligations under a derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contract due to financial
difficulties, the Fund may experience significant </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delays in obtaining any recovery (including recovery of any collateral it </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">has provided to the counterparty) in a dissolution, assignment for the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">benefit of creditors, liquidation,
winding-up, bankruptcy or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">analogous proceeding. In addition, in the event of the insolvency of a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparty to a derivative transaction, the derivative transaction </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would typically be terminated at its fair
market value. If the Fund is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">owed this fair market value in the termination of the derivative
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transaction and its claim is unsecured, the Fund will be treated as a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">general creditor of such
counterparty and will not have any claim with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to any underlying security or asset. The Fund may obtain only a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limited recovery or may obtain no recovery in such circumstances. While </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund may seek to manage its
counterparty risk by transacting with a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">number of counterparties, concerns about the solvency of, or a default </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by, one large market participant could lead to significant impairment of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity and other adverse
consequences for other counterparties.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Additional Risks Associated with the Fund&#8217;s Preferred Shares</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the Fund&#8217;s ARPS ordinarily would pay dividends at rates set at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">periodic auctions, the weekly
auctions for the ARPS (and auctions for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar preferred shares issued by closed-end funds in the U.S.) have </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">failed since 2008. The dividend rates on the ARPS since that time have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">been paid, and the Fund expects that it
will continue to be paid for the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">foreseeable future, at the &#8220;maximum applicable rate.&#8221;</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The maximum
applicable rate for the ARPS and the RVMTP Share </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Dividend Rate (as defined below) is based in part on a multiple of or a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">spread plus a reference rate. An increase in market interest rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally, therefore, could increase
substantially the dividend rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">required to be paid by the Fund to the holders of Preferred Shares,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which would increase the costs associated with the Fund&#8217;s leverage and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reduce the
Fund&#8217;s net income available for distribution to holders of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares. In addition, the multiple or spread used to calculate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the maximum applicable rate for the ARPS and the RVMTP Share </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Dividend Rate is based in part on the credit
rating assigned to the ARPS </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or RVMTP Shares by the applicable rating agency(ies), with the multiple </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">13&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_14"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or spread generally increasing as the rating declines. Accordingly, future </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">ratings downgrades may result in
increases to the maximum applicable </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">rate for the ARPS or to the RVMTP Share Dividend Rate.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Therefore, it is
possible that a substantial rise in market interest rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or further ratings downgrades of the Preferred Shares could, by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reducing income available for distribution to the holders of Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares and otherwise detracting from the
Fund&#8217;s investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance, make the Fund&#8217;s continued use of Preferred Shares for
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage purposes less attractive. In such case, the Fund may elect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">redeem some or all of the
Preferred Shares outstanding, which may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">require it to dispose of investments at inopportune times and to incur </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">losses on such dispositions. Such dispositions may adversely affect the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment performance
generally, and the resultant loss of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage may materially and adversely affect the Fund&#8217;s investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">returns.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is also subject to certain asset coverage tests associated with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the rating agencies that rate the
Preferred Shares. Failure by the Fund to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maintain the asset coverages (or to cure such failure in a timely manner) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may require the Fund to redeem Preferred Shares and could preclude </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund from declaring or paying any
dividends or distributions to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders of Common Shares. Failure to satisfy ratings agency asset
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coverage tests or other guidelines could also result in the applicable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings agency downgrading
its then-current ratings on the Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares, as described above. Moreover, the rating agency guidelines </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impose restrictions or limitations on the Fund&#8217;s use of certain financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments or investment
techniques that the Fund might otherwise </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">utilize in order to achieve its investment objective, which may adversely </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect the Fund&#8217;s investment performance. Rating agency guidelines may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be modified by the rating
agencies in the future and such modifications </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may make such guidelines substantially more restrictive or otherwise </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">result in downgrades, which could further negatively affect the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment performance.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The ratings agencies
that have assigned ratings to the Fund&#8217;s Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares may change their rating methodologies, perhaps substantially. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Such a change could adversely affect the ratings assigned to the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares, the dividend
rates paid thereon, and the expenses </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borne by holders of Common Shares. For instance, Fitch Ratings
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">published ratings criteria relating to closed-end funds on December 4, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2020, which effectively
result in a rating cap of &#8220;AA&#8221; for debt and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred stock issued by all closed-end funds and a rating cap of &#8220;A&#8221; </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for debt and preferred shares issued by (i) closed-end funds exposed to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">emerging market debt,
below-investment-grade and unrated debt, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structured securities and equity, and (ii) closed-end funds with material </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exposure to &#8220;BBB&#8221; category rated assets. On December 6, 2021, Fitch </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affirmed &#8220;AA&#8221;
long-term ratings of the Fund&#8217;s RVMTP Shares. Fitch does </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not currently rate the Fund&#8217;s ARPS. In addition, future ratings </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downgrades by Moody&#8217;s or Fitch, as applicable, may result in an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase to the Fund&#8217;s Preferred
Shares dividend rates.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Private Placements and Restricted Securities Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A private placement involves the sale of securities that have not been </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">registered under the Securities Act of 1933, as amended (the &#8220;Securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Act&#8221;) or relevant
provisions of applicable non-U.S. law to certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">institutional and qualified individual purchasers, such as the Fund. In </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addition to the general risks to which all securities are subject, securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">received in a private placement
generally are subject to strict restrictions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on resale, and there may be no liquid secondary market or ready </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchaser for such securities. Therefore, the Fund may be unable to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dispose of such securities when it desires
to do so, or at the most </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">favorable time or price. Private placements may also raise valuation
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks. Restricted securities are often purchased at a discount from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market price of
unrestricted securities of the same issuer reflecting the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fact that such securities may not be readily marketable without some </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time delay. Such securities are often more difficult to value and the sale </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of such securities often requires
more time and results in higher </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">brokerage charges or dealer discounts and other selling expenses than </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">does the sale of securities trading on national securities exchanges or in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the over-the-counter markets. Until
the Fund can sell such securities into </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the public markets, its holdings may be less liquid and any sales will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">need to be made pursuant to an exemption under the Securities Act.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Confidential Information Access Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In managing the Fund (and other PIMCO clients), PIMCO may from time </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to time have the opportunity to receive material, non-public information </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(&#8220;Confidential
Information&#8221;) about the issuers of certain investments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including, without limitation, senior floating rate loans, other loans and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">related investments being considered for acquisition by the Fund or held </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the Fund&#8217;s portfolio. For
example, an issuer of privately placed loans </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">considered by the Fund may offer to provide PIMCO with financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information and related documentation regarding the issuer that is not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">publicly available. Pursuant to
applicable policies and procedures, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO may (but is not required to) seek to avoid receipt of Confidential </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Information from the issuer so as to avoid possible restrictions on its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to purchase and sell
investments on behalf of the Fund and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">clients to which such Confidential Information relates. In such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">circumstances, the Fund (and other PIMCO clients) may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disadvantaged in comparison to other investors,
including with respect </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the price the Fund pays or receives when it buys or sells an
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment. Further, PIMCO&#8217;s and the Fund&#8217;s abilities to assess the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">desirability of
proposed consents, waivers or amendments with respect </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to certain investments may be compromised if they are not privy to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">available Confidential Information. PIMCO may also determine to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">receive such Confidential Information in
certain circumstances under its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable policies and procedures. If PIMCO intentionally or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unintentionally comes into possession of Confidential Information, it </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be unable, potentially
for a substantial period of time, to purchase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or sell investments to which such Confidential Information relates.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Inflation/Deflation Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Inflation risk is the risk that the value of assets or income from the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investments will be worth less in the future as inflation decreases </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the value of payments at
future dates. As inflation increases, the real </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">14</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_15"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">value of the Fund&#8217;s
portfolio could decline. Inflation has recently </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">increased and it cannot be predicted whether it may decline. Deflation </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">risk is the risk that prices throughout the economy decline over time. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Deflation may have an adverse effect on
the creditworthiness of issuers </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and may make issuer default more likely, which may result in a decline </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">in the value of the Fund&#8217;s portfolio and Common Shares.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Regulatory Changes Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Financial entities, such as investment companies and investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">advisers, are generally subject to extensive government regulation and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intervention. Government regulation
and/or intervention may change </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the way the Fund is regulated, affect the expenses incurred directly by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund and the value of its investments, and limit and /or preclude the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s ability to achieve its
investment objective. Government </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulation may change frequently and may have significant adverse
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consequences. The Fund and the Investment Manager have historically </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">been eligible for exemptions
from certain regulations. However, there is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no assurance that the Fund and the Investment Manager will continue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to be eligible for such exemptions. Actions by government entities may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also impact certain instruments in
which the Fund invests.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moreover, government regulation may have unpredictable and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unintended effects. Legislative or regulatory
actions to address </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived liquidity or other issues in fixed income markets generally, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in
particular markets such as the municipal securities market, may alter </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or impair the Fund&#8217;s ability to pursue its investment objective or utilize </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain investment strategies and techniques.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Regulatory Risk&#8212;London Interbank Offered Rate (&#8220;LIBOR&#8221;)</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund's investments (including, but not limited to, repurchase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements, collateralized loan obligations and mortgage-backed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities), payment obligations and financing
terms may rely in some </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fashion on the London Interbank Offered Rate (&#8220;LIBOR&#8221;). LIBOR is an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">average interest rate that banks charge one another for the use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term money as determined by LIBOR's
administrator, the ICE </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Benchmark Administration (&#8220;IBA&#8221;). On July 27, 2017, the UK Financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Conduct Authority (&#8220;FCA&#8221;) announced that after 2021 it would cease </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its active encouragement of
banks to provide the quotations needed to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sustain LIBOR due to the absence of an active market for interbank </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unsecured lending and other reasons. The IBA ceased publication of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">most LIBOR settings on a representative
basis at the end of 2021 and is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expected to cease publication of a majority of U.S. dollar LIBOR settings </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on a representative basis after June 30, 2023. In addition, global </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulators have announced that, with
limited exceptions, no new </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">LIBOR-based contracts should be entered into after 2021. It is possible
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the FCA may compel (and in some cases, has already compelled) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the IBA to publish a subset of
LIBOR settings after these dates on a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;synthetic&#8221; basis, but any such publications would be considered </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-representative of the underlying market and are intended solely for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">use on a limited basis for legacy
transactions. Actions by regulators have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">resulted in the establishment of alternative reference rates in most </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">major currencies and various financial industry groups have been </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">planning for the transition away from LIBOR.
Although the transition </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">process away from LIBOR has become increasingly well-defined, there </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">remains uncertainty
regarding the future utilization of LIBOR and the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">nature of any replacement rate (e.g., the Secured Overnight Financing </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Rate, which is intended to replace U.S. dollar LIBOR and measures the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">cost of overnight borrowings through
repurchase agreement </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">transactions collateralized with U.S. Treasury securities). Any potential
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">effects of the transition away from LIBOR on the Fund or on certain </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments in which the Fund
invests can be difficult to ascertain, and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">they may vary depending on factors that include, but are not limited to: </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(i) existing fallback or termination provisions in individual contracts and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(ii) whether, how, and when
industry participants develop and adopt </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">new reference rates and fallbacks for both legacy and new products and </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments. For example, certain of the Fund's investments may involve </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">individual contracts that have no
existing fallback provision or language </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that contemplates the discontinuation of LIBOR, and those investments </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">could experience increased volatility or illiquidity as a result of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">transition process. In addition,
interest rate provisions included in such </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">contracts, or in contracts or other arrangements entered into by the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund, may need to be renegotiated. On March 15, 2022, the Adjustable </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Interest Rate (LIBOR) Act was signed into
law. This law provides a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">statutory fallback mechanism on a nationwide basis for certain </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">contracts
that reference LIBOR and contain no, or insufficient, fallback </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">provisions. Generally, the fallback mechanism replaces LIBOR with a </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">benchmark rate that </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">is based</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> on the Secured Overnight Financing Rate </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that has been selected by the Board of Governors of the Federal
Reserve </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">System pursuant to the implementing regulation it adopted in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">December 2022. . The
transition of investments from LIBOR to a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">replacement rate as a result of amendment, application of existing </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">fallbacks, statutory requirements or otherwise may also result in a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reduction in the value of certain
instruments held by the Fund, a change </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">in the cost of borrowing or the dividend rate for any Preferred Shares </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that may be issued by the Fund, or a reduction in the effectiveness of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">related Fund transactions such as
hedges. Any such effects of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">transition away from LIBOR, as well as other unforeseen effects, could </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">result in losses to the Fund.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Regulatory Risk&#8212;Commodity Pool Operator</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The CFTC has adopted regulations that subject registered investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies and their investment advisers to regulation by the CFTC if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the registered investment company invests
more than a prescribed level </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of its liquidation value in futures, options on futures or commodities, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swaps, or other financial instruments regulated under the Commodity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Exchange Act (&#8220;CEA&#8221;) and the
rules thereunder (&#8220;commodity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interests&#8221;), or if the Fund markets itself as providing investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exposure to such instruments. The Investment Manager is registered </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the CFTC as a CPO. However, with
respect to the Fund, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investment Manager has claimed an exclusion from registration as a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">CPO
pursuant to CFTC Rule 4.5. For the Investment Manager to remain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">eligible for this exclusion, the Fund must comply with certain limitations, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including limits on its ability to use any commodity interests and limits </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on the manner in which the Fund
holds out its use of such commodity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interests. These limitations may restrict the Fund&#8217;s ability to pursue its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment objective and strategies, increase the costs of implementing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its strategies, result in higher
expenses for the Fund, and/or adversely </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">15&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_16"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">affect the Fund&#8217;s total return. To the extent the Fund becomes ineligible </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">for this exclusion from CFTC
regulation, the Fund may consider steps in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">order to continue to qualify for exemption from CFTC regulation, or may </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">determine to operate subject to CFTC regulation.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Liquidity Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Liquidity risk exists when particular investments are difficult to purchase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or sell. Illiquid investments are
investments that the Fund reasonably </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expects cannot be sold or disposed of in current market conditions in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seven calendar days or less without the sale or disposition significantly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changing the market value of the
investment. Illiquid investments may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">become harder to value, especially in changing markets. The Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments in illiquid investments may reduce the returns of the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">because it may be unable to sell the
illiquid investments at an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">advantageous time or price or possibly require the Fund to dispose of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other investments at unfavorable times or prices in order to satisfy its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations, which could
prevent the Fund from taking advantage of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other investment opportunities. Additionally, the market for certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments may become illiquid under adverse market or economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions independent of any specific
adverse changes in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions of a particular issuer. To the extent that the Fund invests in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities of companies with smaller market capitalizations, foreign </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(non-U.S.) securities, Rule
144A securities, illiquid sectors of fixed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income securities, derivatives or securities with substantial market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or credit risk, the Fund will tend to have greater exposure to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity risk.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Further, fixed income
securities with longer durations until maturity face </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">heightened levels of liquidity risk as compared to fixed income securities </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with shorter durations until maturity. The risks associated with illiquid </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments may be particularly
acute in situations in which the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations require cash (such as in connection with tender offers) and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could result in the Fund borrowing to meet its short-term needs or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">incurring losses on the sale of illiquid
instruments. It may also be the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">case that other market participants may be attempting to liquidate fixed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income holdings at the same time as the Fund, causing increased supply </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the market and contributing to
liquidity risk and downward pricing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pressure.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Tax Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund has elected to be treated as a &#8220;regulated investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">company&#8221; under the Code and intends
each year to qualify and be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">eligible to be treated as such, so that it generally will not be subject to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. federal income tax on its net investment income or net short-term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or long-term capital gains, that are
distributed to shareholders. In order </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to qualify and be eligible for such treatment, the Fund must meet </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain asset diversification tests, derive at least 90% of its gross </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income for such year from certain types
of qualifying income, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribute to its shareholders at least 90% of its &#8220;investment company </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable income&#8221; as that term is defined in the Code (which includes, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">among other things, dividends,
taxable interest and the excess of any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">net short-term capital gains over net long-term capital losses, as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reduced by certain deductible expenses).</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investment
strategy will potentially be limited by its intention </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to continue qualifying for treatment as a RIC, and can limit the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to continue qualifying as such. The tax treatment of certain of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investments under one
or more of the qualification or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution tests applicable to RICs is uncertain. An adverse
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determination or future guidance by the Internal Revenue Service </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(&#8220;IRS&#8221;) or a change
in law might affect the Fund&#8217;s ability to qualify or be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">eligible for treatment as a RIC. Income and gains from certain of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s activities may not constitute qualifying income to a RIC for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purposes of the 90% gross income
test. If the Fund were to treat </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income or gain from a particular investment or activity as qualifying </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income and the income or gain were later determined not to constitute </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">qualifying income and, together with any
other nonqualifying income, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">caused the Fund&#8217;s nonqualifying income to exceed 10% of its gross
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income in any taxable year, the Fund would fail to qualify as a RIC </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unless it is eligible to and
does pay a tax at the Fund level.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">If, in any year, the Fund were to fail to qualify for treatment as a RIC </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under the Code, and was ineligible to
or did not otherwise cure such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">failure, the Fund would be subject to tax on its taxable income at
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">corporate rates and, when such income is distributed, shareholders </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would be subject to further
tax on such distributions to the extent of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s current or accumulated earnings and profits.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Portfolio Turnover Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Investment Manager manages the Fund without regard generally to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restrictions on portfolio turnover. The use of futures contracts and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivative instruments with
relatively short maturities may tend to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exaggerate the portfolio turnover rate for the Fund. Trading in fixed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income securities does not generally involve the payment of brokerage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commissions but does involve indirect
transaction costs. The use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">futures contracts and other derivative instruments may involve the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment of commissions to futures commission merchants or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intermediaries. Higher portfolio
turnover involves correspondingly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater expenses to the Fund, including brokerage commissions or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dealer mark-ups and other transaction costs on the sale of securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and reinvestments in other
securities. The higher the rate of portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">turnover of the Fund, the higher these transaction costs borne by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund generally will be. Such sales may result in realization of taxable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital gains (including short-term
capital gains, which are generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxed to shareholders at ordinary income tax rates when distributed net </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of short-term capital losses and net long-term capital losses), and may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely impact the Fund&#8217;s
after-tax returns.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Operational Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">An
investment in the Fund, like any fund, involves operational risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">arising from factors such as processing errors, human errors, inadequate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or failed internal or external processes, failures in systems and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">technology, changes in personnel and errors
caused by third-party </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service providers. The occurrence of any of these failures, errors or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">breaches could result in a loss of information, regulatory scrutiny, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reputational damage or other
events, any of which could have a </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">16</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_17"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">material adverse effect on
the Fund. While the Fund seeks to minimize </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such events through controls and oversight, there may still be failures </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that could cause losses to the Fund.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Other Investment Companies Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">When investing in an investment company, the Fund generally will bear </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its ratable share of that investment company&#8217;s expenses and remain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to payment of the
Fund&#8217;s management fees and other expenses </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with respect to assets so invested. Common Shareholders could </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">therefore be subject to duplicative expenses to the extent the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests in other investment companies. In
addition, the securities of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other investment companies may also be leveraged and will therefore
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be subject to the same leverage risks.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Cybersecurity Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As the use of technology has become more prevalent in the course of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business, the Fund is potentially more
susceptible to operational and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information security risks resulting from breaches in cyber security. A </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">breach in cyber security refers to both intentional and unintentional </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cyber events from outside threat actors
or internal resources that may, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">among other things, cause the Fund to lose proprietary information,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">suffer data corruption and/or destruction, lose operational capacity, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">result in the unauthorized
release or other misuse of confidential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information, or otherwise disrupt normal business operations. Cyber </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security breaches may involve unauthorized access to the Fund&#8217;s digital </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information systems (e.g.,
through &#8220;hacking&#8221; or malicious software </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coding), and may come from multiple sources, including outside attacks </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such as denial-of-service attacks (i.e., efforts to make network services </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unavailable to intended users) or
cyber extortion, including exfiltration </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of data held for ransom and/or &#8220;ransomware&#8221; attacks that renders </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">systems inoperable until ransom is paid, or insider actions. In addition, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cyber security breaches involving
the Fund&#8217;s third party service providers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(including but not limited to advisers, sub-advisers, administrators, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transfer agents, custodians, vendors, suppliers, distributors and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">third parties), trading counterparties
or issuers in which the Fund invests </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">can also subject the Fund to many of the same risks associated with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">direct cyber security breaches or extortion of company data. Moreover, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cyber security breaches involving
trading counterparties or issuers in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which the Fund invests could adversely impact such counterparties or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers and cause the Fund&#8217;s investment to lose value.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Cyber security failures or breaches may result in financial losses to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund and its shareholders. These failures or breaches may also result in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disruptions to business operations,
potentially resulting in financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">losses; interference with the Fund&#8217;s ability to calculate its NAV, process </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholder transactions or otherwise transact business with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholders; impediments to trading; violations
of applicable privacy </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other laws; regulatory fines; penalties; third party claims in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">litigation; reputational damage; reimbursement or other compensation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">costs; additional compliance
and cyber security risk management costs </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other adverse consequences. In addition, substantial costs may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">incurred in order to prevent any cyber incidents in the future.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Like with operational risk
in general, the Fund has established business </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">continuity plans and risk management systems designed to reduce the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks associated with cyber security. However, there are inherent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitations in these plans and systems,
including that certain risks may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not have been identified, in large part because different or unknown </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">threats may emerge in the future. As such, there is no guarantee that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such efforts will succeed, especially
because the Fund does not directly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">control the cyber security systems of issuers in which the Fund may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest, trading counterparties or third party service providers to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund. Such entities have experienced
cyber attacks and other attempts </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to gain unauthorized access to systems from time to time, and there is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no guarantee that efforts to prevent or mitigate the effects of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">attacks or other attempts to gain
unauthorized access will be successful. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">There is also a risk that cyber security breaches may not be detected. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund and its shareholders may suffer losses as a result of a cyber </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security breach related to the Fund, its
service providers, trading </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties or the issuers in which the Fund
invests.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Potential Conflicts of Interest Risk&#8212;Allocation of Investment
</font><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Opportunities.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Investment Manager and its affiliates are involved worldwide with a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broad spectrum of financial services
and asset management activities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and may engage in the ordinary course of business in activities in which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their interests or the interests of their clients may conflict with those of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund. The Investment Manager
may provide investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management services to other funds and discretionary managed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accounts that
follow an investment program similar to that of the Fund. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Subject to the requirements of the 1940 Act, the Investment Manager </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intends to engage in such activities and may receive compensation from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">third parties for its services. The
results of the Fund&#8217;s investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">activities may differ from those of other accounts managed by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investment Manager or its affiliates, and it is possible that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could sustain losses during periods in
which one or more other accounts </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">managed by the Investment Manager or its affiliates, including
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proprietary accounts, achieve profits on their trading.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Repurchase Agreements Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may enter into repurchase agreements, in which the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchases a security from a bank or broker-dealer, which agrees to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repurchase the security at the Fund&#8217;s
cost plus interest within a specified </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time. If the party agreeing to repurchase should default, the Fund would </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seek to sell the securities which it holds. This could involve costs or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delays in addition to a loss on the
securities if their value should fall </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">below their repurchase price. Repurchase agreements may be or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">become illiquid. These events could also trigger adverse tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consequences for the Fund.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Structured Investments Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Holders of structured products, including structured notes, credit-linked </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">notes and other types of structured products, bear the risks of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underlying investments, index or reference
obligation and are subject to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparty risk. The Fund may have the right to receive payments only </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from the structured product, and generally does not have direct rights </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">17&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_18"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">against the issuer or the entity that sold the assets to be securitized. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Although it is difficult to predict
whether the prices of indices and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities underlying structured products will rise or fall, these prices </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(and, therefore, the prices of structured products) are generally </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">influenced by the same types of political
and economic events that </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">affect issuers of securities and capital markets generally. Structured
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">products generally entail risks associated with derivative instruments.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Market Disruptions Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is subject to investment and operational risks associated with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial, economic and other global market developments and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disruptions, including those arising from war,
terrorism, market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manipulation, government interventions, defaults and shutdowns, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political
changes or diplomatic developments, public health </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">emergencies (such as the spread of infectious diseases, pandemics and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">epidemics) and natural/environmental disasters, which can all negatively </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impact the securities markets,
interest rates, secondary trading, ratings, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit risk, inflation, deflation, other factors relating to the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments or the Investment Manager&#8217;s operations and the value of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an investment in the Fund, its
distributions and its returns. These events </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">can also impair the technology and other operational systems upon </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which the Fund&#8217;s service providers, including PIMCO as the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment adviser, rely, and
could otherwise disrupt the Fund&#8217;s service </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">providers&#8217; ability to fulfill their obligations to the Fund.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For example, the
recent spread of an infectious respiratory illness caused </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by a novel strain of coronavirus (known as COVID-19) has caused </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">volatility, severe market dislocations and liquidity constraints in many </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">markets, including markets for the
securities the Fund holds, and may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affect the Fund&#8217;s investments and operations.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The foregoing could
lead to a significant economic downturn or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recession, increased market volatility, a greater number of market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">closures, higher default rates and adverse effects on the values and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity of securities or other assets.
Such impacts, which may vary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">across asset classes, may adversely affect the Fund's performance. In
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain cases, an exchange or market may close or issue trading halts on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specific securities or
even the entire market, which may result in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund being, among other things, unable to buy or sell certain securities </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or financial instruments or to accurately price their investments. These </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other developments may adversely
affect the liquidity of the Fund's </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holdings (see &#8220;Liquidity Risk&#8221; in this prospectus for further details).</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Certain Affiliations</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Certain broker-dealers may be considered to be affiliated persons of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Funds and/or the Investment Manager
due to their possible affiliations </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with Allianz SE, the ultimate parent of the Investment Manager, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">another Allianz entity. Allianz Asset Management of America LP merged </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with Allianz Asset Management of America
LLC, with the latter being </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the surviving entity, effective January 1, 2023. Following the merger,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Allianz Asset Management of America LLC is PIMCO LLC&#8217;s managing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">member and direct parent
entity. Absent an exemption from the SEC or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other regulatory relief, the Funds are generally precluded from effecting </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain principal transactions with affiliated brokers, and its ability to </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">purchase securities being underwritten by an affiliated broker or a </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">syndicate including an affiliated broker, or to utilize affiliated brokers for </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">agency transactions, is subject
to restrictions. This could limit the Fund&#8217;s </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">ability to engage in securities transactions and take advantage of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">market opportunities.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Anti-Takeover Provisions</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s Amended and Restated Declaration of Trust (the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Declaration&#8221;) and the Fund&#8217;s Bylaws (the &#8220;Bylaws&#8221;) include provisions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that
could limit the ability of other entities or persons to acquire control </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund or to convert the Fund to open-end status. See </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Anti-Takeover and Other Provisions in the Declaration of Trust and the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bylaws.&#8221; These provisions
in the Declaration and Bylaws could have the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">effect of depriving the Common Shareholders of opportunities to sell </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their Common Shares at a premium over the then-current market price </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Common Shares or at NAV.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Distribution Rate Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the Fund may seek to maintain level distributions, the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution rates may be affected by numerous factors, including but </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not limited to changes in realized and
projected market returns, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fluctuations in market interest rates, Fund performance, and other
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">factors. There can be no assurance that a change in market conditions or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other factors will not
result in a change in the Fund&#8217;s distribution rate or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the rate will be sustainable in the future.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For instance, during
periods of low or declining interest rates, the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributable income and dividend levels may decline for many reasons. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For example, the Fund may have to deploy uninvested assets (whether </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from purchases of Fund shares, proceeds
from matured, traded or called </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt obligations or other sources) in new, lower yielding instruments. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Additionally, payments from certain instruments that may be held by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund (such as variable and floating
rate securities) may be negatively </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impacted by declining interest rates, which may also lead to a decline in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s distributable income and dividend levels.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">AMT Bonds Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The fund may invest in &#8220;AMT Bonds,&#8221; which are municipal securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that pay interest that is
taxable under the federal alternative minimum </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tax applicable to noncorporate taxpayers. Such investments may expose </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund to certain risks in addition to those typically associated with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds. Interest or
principal on AMT Bonds paid out of current </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or anticipated revenues from a specific project or specific asset may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely impacted by declines in revenue from the project or asset. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Declines in general business activity
could also affect the economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">viability of facilities that are the sole source of revenue to support AMT </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bonds. In this regard, AMT Bonds may entail greater risks than general </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation municipal bonds. For
shareholders subject to the federal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">alternative minimum tax, a portion of the Fund&#8217;s distributions may not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be exempt from gross federal income, which may give rise to alternative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">minimum tax liability.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:right;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">18</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4fad0b55-7c7f-4e25-bf4a-60082e6a3c1d_19"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:30pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:55.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:46.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-12pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Privacy
and Data Security Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Gramm-Leach-Bliley Act (&#8220;GLBA&#8221;) and other laws limit the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disclosure of certain non-public personal information about a consumer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to non- affiliated third parties and
require financial institutions to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disclose certain privacy policies and practices with respect to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information sharing with both affiliates and non- affiliated third parties. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Many states and a
number of non-U.S. jurisdictions have enacted </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">privacy and data security laws requiring safeguards on the privacy and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security of consumers&#8217; personally identifiable information. Other laws </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">deal with obligations to
safeguard and dispose of private information in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a manner designed to avoid its dissemination. Privacy rules adopted by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the U.S. Federal Trade Commission and SEC implement GLBA and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements and govern the disclosure of
consumer financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information by certain financial institutions, ranging from banks to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">private
investment funds. U.S. platforms following certain models </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally are required to have privacy policies that conform to these </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">GLBA and other requirements. In addition, such platforms typically have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">policies and procedures intended to
maintain platform participants&#8217; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">personal information securely and dispose of it properly.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund generally
does not intend to obtain or hold borrowers&#8217; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-public personal information, and the Fund has implemented </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">procedures reasonably designed to prevent the disclosure of borrowers&#8217; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-public personal information
to the Fund. However, service providers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the Fund, including their custodians and the platforms acting as loan </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">servicers for the Fund, may obtain, hold or process such information. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund cannot guarantee the security
of non-public personal information </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the possession of such a service provider and cannot guarantee that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service providers have been and will continue to comply with the GLBA, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other data security and privacy laws
and any other related regulatory </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements. Violations of GLBA and other laws could subject the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to litigation and/or fines, penalties or other regulatory action, which, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">individually or in the aggregate,
could have an adverse effect on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund. The Fund may also face regulations related to privacy and data </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security in the other jurisdictions in which the Fund invests.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Focused Investment Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Substantial exposure to municipal bonds of particular issuers, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">geographies and/or jurisdictions will result in susceptibility to political, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">economic, regulatory and other
factors affecting issuers of such bonds, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their ability to meet their obligations and the economic condition of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">facility or specific revenue source from whose revenues payments of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations may be made. The ability of
state, county, or local </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">governments or other issuers to meet their obligations will depend
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">primarily on the availability of tax and other revenues to those entities. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The amounts of tax and
other revenues available to issuers may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affected from time to time by economic, political and demographic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions that specifically impact such issuers. In addition, there are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitutional and statutory
restrictions that limit the power of certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers to raise revenues or increase taxes. The availability of federal, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">state and local aid to issuers may also affect their ability to meet their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations. The creditworthiness
of obligations issued by local issuers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">within a given state may be unrelated to the creditworthiness of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations issued by the state and there is no obligation on the part of </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the state to make payment on such local obligations in the event of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">default. Any reduction in the actual or perceived ability of an issuer to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">meet its obligations (including a
reduction in the rating of its </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">outstanding securities) would likely affect adversely the market value </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and marketability of its obligations and could adversely affect the values </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of other bonds as well. Moreover,
in such circumstances, the value of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s shares may fluctuate more widely than the value of shares of a </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">more diversified fund.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Many factors, including national economic, social and environmental </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">policies and conditions, which are not within the control of issuers, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could affect or could have an adverse
impact on the financial condition </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the issuers. The Fund is unable to predict whether or to what extent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such factors or other factors may affect issuers, the market value or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">marketability of such bonds or the
ability of the respective issuers of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds acquired by the Fund to pay interest on or principal of such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Insurance Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund
may purchase municipal securities that are secured by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">insurance, bank credit agreements or escrow accounts. The credit quality </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the companies that provide such credit enhancements will affect the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of those securities. Certain
significant providers of insurance for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal securities have incurred significant losses as a result of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exposure to sub-prime mortgages and other lower credit quality </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments that have experienced recent
defaults or otherwise suffered </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">extreme credit deterioration. As a result, such losses reduced the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">insurers&#8217; capital and called into question their continued ability to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perform their
obligations under such insurance if they are called upon to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">do so in the future. If the insurer of a municipal security suffers a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downgrade in its credit rating or the market discounts the value of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">insurance provided by the insurer, the
rating of the underlying municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security will be more relevant and the value of the municipal security </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would more closely, if not entirely, reflect such rating. In such a case, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of insurance associated
with a municipal security would decline </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and may not add any value. The insurance feature of a municipal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security does not guarantee the full payment of principal and interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through the life of an insured
obligation, the market value of the insured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation or the net asset value of the common shares represented by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such insured obligation.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investing in the municipal bond market involves the risks of investing in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt securities generally and certain other risks. The amount of public </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information available about the
municipal bonds in which the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest is generally less than that for corporate equities or bonds, and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment performance of the Fund&#8217;s investment in municipal bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may therefore be more dependent on
the analytical abilities of PIMCO </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than its investments in taxable bonds. The secondary market for
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds also tends to be less well developed or liquid than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">many other securities
markets, which may adversely affect the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to sell municipal bonds at attractive prices.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">19&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_9c519e66-9d8b-4520-a388-f621e5d8e3ee_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="background-color:#00687D;float:left;margin-left:190pt;margin-top:3pt;width:379pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-51.6pt;width:538pt;z-index:-1;min-height:40pt;"> <div style="margin-top:0.00pt;text-align:left;">
<img src="g291117img4aa016ac1.gif" alt=" " style="height:14pt;width:120pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:32pt;margin-top:-51.6pt;width:538pt;min-height:63pt;"> <div style="line-height:21.0pt;margin-top:0;text-align:left;"><font
style="color:#FFFFFF;font-family:Times New Roman;font-size:21pt;line-height:21pt;margin-left:184pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-61pt;width:538pt;min-height:61.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:2.2pt;width:260pt;min-height:642pt;"> <div style="line-height:14.0pt;margin-top:8pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Summary of
Fund Expenses</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The following table is intended to assist investors in understanding the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fees and expenses (annualized) that an investor in Common Shares of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund would bear, directly or
indirectly, as a result of an offering. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">table reflects the use of leverage attributable to the Fund&#8217;s outstanding </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares and TOBs in an amount equal to [ ]% of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total managed assets (including
assets attributable to such leverage), </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which reflects approximately the percentage of the Fund&#8217;s total average </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">managed assets attributable to such leverage averaged over the year </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ended December 31, 2022, and shows Fund
expenses as a percentage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of net assets attributable to Common Shares. The percentage above and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information below do not reflect the Fund&#8217;s use of other forms of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">economic leverage, such
as credit default swaps or other derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments. The table and example below are based on the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital structure as of December 31, 2022. The extent of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets attributable to leverage
following an offering, and the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated expenses, are likely to vary (perhaps significantly) from these </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assumptions.</font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Shareholder Transaction Expenses:</font><font
style="color:#000000;font-family:Arial Narrow;font-size:1pt;font-weight:bold;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt;" cellpadding="0" cellspacing="0">
<tr style="height:17.5pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:217.47pt;"> <div style="line-height:0.5pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:42.53pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Percentage of</font></div> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;">Offering Price</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:217.47pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Sales Load (as a percentage of offering price)</font><font
style="color:#323232;font-family:Arial Narrow;font-size:4.5pt;margin-left:0.0pt;position:relative;top:-3pt;">(1)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:42.53pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">[-]%</font></div> </div> </td> </tr>
<tr style="height:20pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:217.47pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Offering Expenses Borne by Common Shareholders (as a percentage of
</font></div> <div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">offering price)</font><font
style="color:#323232;font-family:Arial Narrow;font-size:4.5pt;margin-left:0.0pt;position:relative;top:-3pt;">(2)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:42.53pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">[-]%</font></div> </div> </td> </tr>
<tr style="height:9pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:217.47pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Dividend Reinvestment Plan Fees</font><font
style="color:#323232;font-family:Arial Narrow;font-size:4.5pt;margin-left:0.0pt;position:relative;top:-3pt;">(3)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:42.53pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">None</font></div> </div> </td> </tr> </table> </div> <div> <div style="clear:both;margin-top:2.0pt;position:relative;width:100%;">
<div style="float:left;line-height:7pt;text-align:left;width:5.99pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">(1)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:4.01pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">In the event that the Common Shares to which this prospectus relates are sold to or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">through underwriters or dealer managers, a corresponding prospectus supplement will </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">disclose the
applicable sales load and/or commission.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:2.0pt;position:relative;width:100%;">
<div style="float:left;line-height:7pt;text-align:left;width:5.99pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">(2)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:4.01pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">The related prospectus supplement will disclose the estimated amount of offering
</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">expenses, the offering price and the offering expenses borne by the Fund and indirectly </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">by all of
its Common Shareholders as a percentage of the offering price.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:2.0pt;position:relative;width:100%;">
<div style="float:left;line-height:7pt;text-align:left;width:5.99pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">(3)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:4.01pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">You will pay brokerage charges if you direct your broker or the plan agent to sell your
</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Common Shares that you acquired pursuant to a dividend reinvestment plan. You may </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">also pay a pro
rata share of brokerage commissions incurred in connection with </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">open-market purchases pursuant to the Plan. See &#8220;Dividend Reinvestment Plan.&#8221;</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:6.0pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Annual Expenses</font><font
style="color:#000000;font-family:Arial Narrow;font-size:1pt;font-weight:bold;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt;" cellpadding="0" cellspacing="0">
<tr style="height:32pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:131.22pt;"> <div style="line-height:7.5pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Annual Expenses</font></div> </div> </td>
<td style="padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:128.78pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Percentage of</font></div> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Net Assets Attributable to Common</font></div> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Shares (reflecting leverage</font></div> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">attributable to Preferred Shares and TOBs)</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:131.22pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Management Fees</font><font
style="color:#323232;font-family:Arial Narrow;font-size:4.5pt;margin-left:0.0pt;position:relative;top:-3pt;">(1)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:128.78pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">[ ]%</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:131.22pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Dividend Cost on Preferred Shares</font><font
style="color:#323232;font-family:Arial Narrow;font-size:4.5pt;margin-left:0.0pt;position:relative;top:-3pt;">(2)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:128.78pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">[ ]%</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:131.22pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Interest Payments on Borrowed Funds</font><font
style="color:#323232;font-family:Arial Narrow;font-size:4.5pt;margin-left:0.0pt;position:relative;top:-3pt;">(3)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:128.78pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">[ ]%</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:131.22pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Other Expenses</font><font
style="color:#323232;font-family:Arial Narrow;font-size:4.5pt;margin-left:0.0pt;position:relative;top:-3pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:128.78pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">[ ]%</font></div> </div> </td> </tr>
<tr style="height:9pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:131.22pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Total Annual Expenses</font><font
style="color:#323232;font-family:Arial Narrow;font-size:4.5pt;margin-left:0.0pt;position:relative;top:-3pt;">(5)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:128.78pt;"> <div style="line-height:8.0pt;text-align:left;"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">[ ]%</font></div> </div> </td> </tr> </table> </div> <div> <div style="clear:both;margin-top:2.0pt;position:relative;width:100%;">
<div style="float:left;line-height:10.0pt;text-align:left;width:7.98pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">(1)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:2.02pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Management Fees include fees payable to the Investment Manager for advisory </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">services and for supervisory, administrative and other services. The Fund pays for the </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">advisory, supervisory and
administrative services it requires under what is essentially </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">an all-in fee structure (the &#8220;unified management fee&#8221;). Pursuant to an investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">management agreement, PIMCO is paid a Management Fee of 0.685% of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">average daily net assets
(including daily net assets attributable to any Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Shares). The Fund (and not PIMCO) will be responsible for certain fees and expenses, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">which are reflected in the table above, that are not covered by the unified </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">management fee under the investment
management agreement. Please see </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> <div style="float:left;margin-left:18pt;margin-top:2.2pt;width:260pt;min-height:642pt;">
<div style="line-height:10.0pt;margin-left:10pt;margin-top:5pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;">&#8220;Management of the Fund&#8211;Investment Management Agreement&#8221; for an explanation
</font><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;">of the unified management fee.</font><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div> <div>
<div style="clear:both;margin-top:2pt;position:relative;width:100%;"> <div style="float:left;line-height:10.0pt;text-align:left;width:7.98pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">(2)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:2.02pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Restated to reflect the Fund&#8217;s outstanding ARPS and RVMTP averaged over the year
</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">ended December 31, 2022, which represented [ ]% and [ ]%, respectively, of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Fund&#8217;s total
average managed assets (including the liquidation preference of </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">outstanding Preferred Shares and assets attributable to TOBs), at an annual estimated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">dividend cost to the Fund of [ ]% for ARPS and [ ]% for RVMTP as of December 31, </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">2022, and assumes the Fund will
continue to pay dividends on the ARPS at the </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">&#8220;maximum applicable rate&#8221; called for under the Fund&#8217;s Bylaws due to the ongoing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">failure of auctions for the ARPS. The actual dividend rate paid on the Preferred Shares </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">will vary over time in
accordance with variations in market interest rates. See &#8220;Use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Leverage&#8221; and &#8220;Description of Capital Structure.&#8221;</font><font
style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:2pt;position:relative;width:100%;">
<div style="float:left;line-height:10.0pt;text-align:left;width:7.98pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">(3)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:2.02pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Restated to reflect the Fund&#8217;s use of leverage in the form of TOBs averaged over
the </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">year ended December 31, 2022, which represented [ ]% of the Fund&#8217;s total average </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">managed
assets (including assets attributable to Preferred Shares and TOBs), at an </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">estimated annual interest rate cost to the Fund of [ ]%% as of December 31, 2022. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">See &#8220;Use of Leverage&#8212;Effects of Leverage.&#8221; The actual amount of interest expense </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">borne by the
Fund will vary over time in accordance with the level of the Fund&#8217;s use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Preferred Shares, TOBs and/or other forms of borrowing and variations in market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">interest rates. Borrowing expense is required to be treated as an expense of the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">for accounting purposes.
Any associated income or gains (or losses) realized from </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">leverage obtained through such instruments is not reflected in the Annual Expenses </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">table above, but would be reflected in the Fund&#8217;s performance results.</font><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div>
</div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:2pt;position:relative;width:100%;"> <div style="float:left;line-height:10.0pt;text-align:left;width:7.98pt;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">(4)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:2.02pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">&#8220;Other Expenses&#8221; are estimated for the Fund&#8217;s current fiscal year
ending </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">December 31, 2023.</font><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:2pt;position:relative;width:100%;"> <div style="float:left;line-height:10.0pt;text-align:left;width:7.98pt;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">(5)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:2.02pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">&#8220;Dividend Cost on Preferred Shares&#8221;, including distributions on Preferred
Shares, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">&#8220;Interest Payments on Borrowed Funds&#8221; are borne by the Fund separately from the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">management fees paid to PIMCO. Excluding such expenses, Total Annual Expenses are </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">[ ]%.</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Example</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The following example illustrates the expenses that you would pay on a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">$1,000 investment in Common Shares of the Fund, assuming (1) that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s net assets do not increase
or decrease, (2) that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">incurs total annual expenses of [ ]% of net assets attributable to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares in years 1 through 10 (assuming outstanding Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares and TOBs representing
[ ]% of Fund total managed assets) and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(3) a 5% annual
return</font><font style="color:#323232;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">(1)</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">:</font><font
style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt;" cellpadding="0" cellspacing="0">
<tr style="height:8.5pt;">
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:132.84pt;"> <div style="line-height:0.5pt;text-align:left;">
<div style="margin-left:3pt;margin-right:5.75pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">&nbsp;</font></div> </div> </td>
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:29.55pt;"> <div style="line-height:7pt;text-align:left;">
<div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">1 Year</font></div> </div> </td>
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.32pt;"> <div style="line-height:7pt;text-align:left;">
<div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">3 Years</font></div> </div> </td>
<td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.32pt;"> <div style="line-height:7pt;text-align:left;">
<div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">5 Years</font></div> </div> </td>
<td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.96pt;"> <div style="line-height:7pt;text-align:left;"> <div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">10 Years</font></div> </div> </td> </tr>
<tr style="height:9pt;">
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:132.84pt;"> <div style="line-height:7.5pt;text-align:left;">
<div style="margin-left:3pt;margin-right:5.75pt;text-align:Left;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Total Expenses Incurred</font></div> </div> </td>
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:29.55pt;"> <div style="line-height:7.5pt;text-align:left;">
<div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">$[ ]</font></div> </div> </td>
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt;"> <div style="line-height:7.5pt;text-align:left;">
<div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">$[ ]</font></div> </div> </td>
<td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt;"> <div style="line-height:7.5pt;text-align:left;">
<div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap;"><font style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">$[ ]</font></div> </div> </td>
<td style="background-color:#ECF6F8;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.96pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#323232;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">$[ ]</font></div> </div> </td> </tr> </table> </div> <div> <div style="clear:both;margin-top:2.0pt;position:relative;width:100%;">
<div style="float:left;line-height:7pt;text-align:left;width:5.99pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">(1)</font></div>
<div style="float:left;line-height:10.0pt;margin-left:4.01pt;text-align:left;width:245.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;">The example above should not be considered a representation of future
</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-weight:bold;">expenses. Actual expenses may be higher or lower than those shown.</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;"> The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">example assumes that the estimated Interest Payments on Borrowed Funds, Dividend </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Cost on Preferred Shares and
Other Expenses set forth in the Annual Expenses table </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">are accurate, that the rate listed under Total Annual Expenses remains the same each </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">year and that all dividends and distributions are reinvested at NAV. Actual expenses </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">may be greater or less than
those assumed. Moreover, the Fund&#8217;s actual rate of return </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">may be greater or less than the hypothetical 5% annual return shown in the example. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">The example does not include commissions or estimated offering expenses, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">would cause the expenses shown in
the example to increase. In connection with an </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">offering of Common Shares, the prospectus supplement will set forth an example </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">including sales load and estimated offering costs.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">PIMCO Municipal
Income Fund II | </font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base
Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">20</font></div>
</div> <div style="clear:both;"> </div> <div style="float:left;height:12pt;margin-left:30pt;margin-top:-12pt;width:538pt;z-index:-1;"> <div style="margin-top:0.00pt;text-align:left;">
<img src="g291117img01f08d683.gif" alt=" " style="height:10pt;width:79pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_97d9c2ca-0117-4794-94ee-07b5ad061d49_1"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:14.0pt;margin-top:8pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Financial
Highlights</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The information in the table below for the fiscal years ended December 31, 2022, 2021, 2020,
2019 and 2018 is derived from the Fund&#8217;s financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">statements for the fiscal year ended December 31, 2022, audited by [ ], whose report on such financial statements is
contained in the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">December 31, 2022 Annual Report and is incorporated by reference into the Statement of Additional Information. The information in the table
below </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for the fiscal years ended December 31, 2017, 2016, fiscal years ended May 31, 2015, 2014 and 2013 and for the fiscal period ended December 31, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2015</font><font style="color:#323232;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">1</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> is
 derived from the Fund&#8217;s financial statements for the fiscal year ended December 31, 2017.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">[To be
updated by subsequent amendment]</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">21&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:14.0pt;margin-top:8pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Use of Proceeds</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The net
proceeds of an offering will be invested in accordance with the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment objective and policies as set forth below. It is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">currently anticipated that the Fund will be able to invest substantially all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the net proceeds of an
offering in accordance with its investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">objective and policies within approximately 30 days of receipt by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund, depending on the amount and timing of proceeds available to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund as well as the availability of
investments consistent with the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment objective and policies, and except to the extent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds are held in cash to pay dividends or expenses, or for temporary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">defensive purposes. Pending such
investment, it is anticipated that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds of an offering will be invested in high grade, short-term </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, credit-linked trust certificates, and/or high yield securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">index futures contracts or similar
derivative instruments designed to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">give the Fund exposure to the securities and markets in which it intends </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to invest while the Investment Manager selects specific investments.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">The Fund</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is a
diversified, closed-end management investment company. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund was organized as a Massachusetts business trust on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">March 29, 2002, pursuant to an Agreement and Declaration of Trust </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">governed by the laws of the Commonwealth of
Massachusetts. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund commenced operations on June 28, 2002, following the initial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">public
offering of its Common Shares.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Investment Objective and Policies</font></div>
<div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund seeks to provide current income exempt from federal income </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tax. In pursuing the Fund&#8217;s investment objective, the Fund&#8217;s investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manager, Pacific
Investment Management Company LLC (&#8220;PIMCO or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the &#8220;Investment Manager&#8221;), also seeks to preserve and enhance the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the Fund&#8217;s holdings relative to the municipal bond market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally, using proprietary
analytical models that test and evaluate the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sensitivity of those holdings to changes in interest rates and yield </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relationships. The Fund cannot assure you that it will achieve its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment objective, and you could lose
all of your investment in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Portfolio Investment Strategies</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under normal circumstances, the Fund invests at least 90% of its net </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets in municipal bonds which pay
interest that, in the opinion of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bond counsel to the issuer (or on the basis of other authority believed by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO to be reliable), is exempt from regular federal income taxes (i.e., </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">excluded from gross income for
federal income tax purposes but not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">necessarily exempt from the federal alternative minimum tax). Subject to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its other investment policies, the Fund may invest up to 20% of its total </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets in investments the interest
from which is subject to the federal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">alternative minimum tax.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund invests at least 80% of its net assets in municipal bonds that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">at the time of investment are investment grade quality. (For the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">avoidance of doubt, the Fund complies with
the requirements of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rule 35d-1 and invests at least 80% of its net assets (plus borrowings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for
investment purposes) in municipal bonds which pay interest that, in </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the opinion of bond counsel to the issuer (or on the basis of authority </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">believed by PIMCO to be reliable), is
exempt from regular federal </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">income tax (i.e. excluded from gross income for federal income tax
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">purposes but not necessarily exempt from the federal alternative </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">minimum tax), and will not
change this policy without the shareholder </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">approval required by Rule 35d-1.) Investment grade quality bonds are </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">bonds rated within the four highest grades (Baa by Moody&#8217;s or BBB or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">better by S&amp;P or Fitch), or
bonds that are unrated but determined to be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of comparable quality by PIMCO. The Fund may invest up to 20% of its </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">net assets in municipal bonds that are, at the time of investment, rated </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Ba/BB or B or lower by Moody&#8217;s,
S&amp;P or Fitch or that are unrated but </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">judged to be of comparable quality by PIMCO. Bonds of below </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment grade quality are regarded as having predominantly </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">speculative characteristics with respect to
capacity to pay interest and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">repay principal, and are commonly referred to as &#8220;junk bonds.&#8221; Bonds in </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the lowest investment grade category may also be considered to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">possess some speculative characteristics. In
the event that ratings </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">services assign different ratings to the same security, PIMCO will use the
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">highest rating as the credit rating for that security.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investment in municipal bonds may be based on PIMCO&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">belief that they have attractive
yield and/or total return potential. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund attempts to produce returns relative to the municipal bond market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally by prudent selection of municipal bonds. The Fund may invest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in bonds associated with a particular
municipal market sector (for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">example, electric utilities), issued by a particular municipal issuer, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">having particular structural characteristics, that PIMCO believes may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">undervalued. PIMCO may purchase such
a bond for the Fund&#8217;s portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">because it represents a market sector or issuer that PIMCO considers </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">undervalued. For example, municipal bonds of particular types (e.g., </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hospital bonds, industrial revenue bonds
or bonds issued by a particular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal issuer) could be undervalued if there is a temporary excess of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">supply in that market sector, or because of a general decline in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market price of municipal bonds of the
market sector for reasons that do </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not apply to the particular municipal bonds that are considered
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">undervalued.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Portfolio Contents</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
municipal bonds in which the Fund invests are generally issued by a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. state or territory, a city in a U.S. state or territory, or a political </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subdivision, agency, authority, or instrumentality of such state, territory </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or city.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Also included within
the general category of municipal bonds in which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund may invest are loans (including participations and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assignments) and participations in lease obligations. A lease obligation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is an obligation in the form of a
lease or installment purchase that is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued by a state or local government to acquire equipment and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">facilities. Income from such obligations generally is exempt from state </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and local tax in the state of
issuance. Lease obligations may be secured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or unsecured. Lease obligations do not constitute general obligations of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the municipality for which the municipality's taxing power is pledged.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">22</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_2"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in
&#8220;structured&#8221; notes, which are privately </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">negotiated debt obligations where the principal and/or interest is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined by reference to the performance of a benchmark asset or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market, such as selected securities or an
index of securities, or the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">differential performance of two assets or markets, such as indices
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reflecting taxable and tax-exempt bonds. The Fund may do so for the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purpose of reducing the
interest rate sensitivity of the Fund&#8217;s portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(and thereby decreasing the Fund&#8217;s exposure to interest rate risk). The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate of interest on an income-producing security may be fixed, floating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or variable.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase municipal bonds that are additionally secured </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by insurance, bank credit agreements, or escrow accounts. The credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quality of companies which provide such
credit enhancements will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect the value and overall credit risk posed by investments in such
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. Although the insurance feature reduces certain financial risks, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the premiums for
insurance and the higher market price paid for insured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations may reduce the Fund&#8217;s income and returns.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may buy and
sell municipal bonds on a when-issued, delayed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivery or forward commitment basis, making payment or taking </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivery at a later date. The Fund may invest in floating rate debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments (&#8220;floaters&#8221;),
including inverse floaters, and engage in credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">spread trades. A credit spread trade is an investment position relating to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a difference in the prices or interest rates of two bonds or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, in which the value of the
investment position is determined </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by changes in the difference between the prices or interest rates, as the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">case may be, of the respective securities.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in and/or originate loans, including, without </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation, to, on behalf of, authorized by, sponsored by, and/or in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with a project for which
authority and responsibility lies with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more U.S. states or territories, cities in a U.S. state or territory, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political subdivisions, agencies, authorities or instrumentalities of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">states, territories or cities,
which may be in the form of whole loans, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assignments, participations, secured and unsecured notes, senior and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">second lien loans, mezzanine loans, bridge loans or similar investments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including to borrowers that are
unrated or have credit ratings that are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined by one or more NRSROs and/or PIMCO to be below
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade. This may include loans to public or private firms or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">individuals, such as in
connection with housing development projects. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The loans the Fund invests in or originates may vary in maturity and/or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">duration. The Fund is not limited in the amount, size or type of loans it </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may invest in and/or originate,
including with respect to a single </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrower or with respect to borrowers that are determined to be below </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade, other than pursuant to any applicable law. The Fund's </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment in or origination of loans
may also be limited by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements the Fund intends to observe under Subchapter M of the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Code in order to qualify as a RIC.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in trust certificates issued in TOB programs. In </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these programs, a trust typically issues
two classes of certificates, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">floating rate certificates (&#8220;TOB Floaters&#8221;) and residual interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certificates (&#8220;TOB Residuals&#8221;), and seeks to use the proceeds to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase municipal securities
having longer maturities and bearing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest at a higher fixed interest rate than prevailing short-term </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">tax-exempt rates. Service
providers of such trusts may have recourse </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">against the Fund in certain cases, such as if the Fund holds recourse TOB </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Residuals. The Fund may invest in both non-recourse and recourse TOB </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Residuals to leverage its
portfolio.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may also invest up to 10% of its total assets in securities of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other open- or closed-end investment companies that invest primarily in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds of the types in which
the Fund may invest directly. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may invest in other investment companies either during periods </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">when it has large amounts of uninvested cash, during periods when </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">there is a shortage of attractive,
high-yielding municipal bonds available </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the market, or when PIMCO believes share prices of other investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies offer attractive values. The Fund may invest in investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies that are advised by PIMCO or
its affiliates to the extent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">permitted by applicable law and/or pursuant to exemptive relief from
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the SEC. As a shareholder of an investment company, the Fund will bear </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its ratable share of that
investment company&#8217;s expenses and would </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">remain subject to payment of the Fund&#8217;s management fees and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses with respect to assets so invested.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase and sell (write) a variety of derivatives, such as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">put options and call options on securities, short sales, swap agreements, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit default swaps, and securities
indexes, and enter into interest rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and index futures contracts and purchase and sell options on such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">futures contracts for hedging purposes or as part of its overall </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment strategy. The Fund also may enter
into swap agreements </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with respect to interest rates and indexes of securities. If other types of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial instruments, including other types of options, futures contracts, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or futures options
are traded in the future, the Fund may also use those </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 20% of its net assets in securities which are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">illiquid at the time of investment (i.e., any investment that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reasonably expects cannot be sold or
disposed of in current market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions in seven calendar days or less without the sale or disposition </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly changing the market value of the investment).</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may enter into repurchase agreements, in which the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchases a security from a bank or broker-dealer and the bank or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broker-dealer agrees to repurchase the
security at the Fund&#8217;s cost plus </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest within a specified time.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund has outstanding auction rate preferred shares of beneficial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest (&#8220;ARPS&#8221;) and
remarketable variable rate munifund term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred shares of beneficial interest (&#8220;RVMTP Shares&#8221; and, together </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the ARPS and any other preferred shares the Fund may have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding, the &#8220;Preferred
Shares&#8221;). In connection with rating the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s Preferred Shares, Moody&#8217;s and Fitch, as applicable, impose </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specific asset coverage tests and other limitations and restrictions that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may limit the Fund&#8217;s ability
to engage in certain of the transactions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">described above. In addition, failure to comply with these limitations </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and restrictions could, among other things, preclude the Fund from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">declaring or paying dividend or
distributions.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:underline;">Temporary Defensive Investments</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may make short-term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments when attempting to respond to adverse market, economic, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political, or other conditions, as determined by PIMCO. Upon PIMCO&#8217;s </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">23&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_3"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">recommendation, for temporary defensive purposes and in order to keep </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s cash fully invested,
the Fund may invest up to 100% of its </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">net assets in high quality, short-term investments, including
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">U.S. government, mortgage-backed and corporate debt securities that </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may be either tax-exempt or
taxable. To the extent the Fund invests in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">taxable short-term investments, the Fund will not at such times be in a </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">position to achieve its investment objective.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Additional Information</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The following provides additional information regarding the types of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities and other instruments in which the Fund will ordinarily invest. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A more detailed discussion of these
and other instruments and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment techniques that may be used by the Fund is provided under
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Investment Objective and Policies&#8221; in the Statement of Additional
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Information.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Municipal Bonds</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipal bonds share the attributes of debt/fixed income securities in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">general, but are generally issued by states, municipalities and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political subdivisions, agencies,
authorities and instrumentalities of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">states and multi-state agencies or authorities, and may be either taxable </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or tax-exempt instruments. The municipal bonds that the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase include, without limitation, general
obligation bonds and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limited obligation bonds (or revenue bonds), including industrial
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">development bonds issued pursuant to former federal tax law. General </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation bonds are
obligations involving the credit of an issuer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possessing taxing power and are payable from such issuer&#8217;s general </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">revenues and not from any particular source. Limited obligation bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are payable only from the revenues
derived from a particular facility or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">class of facilities or, in some cases, from the proceeds of a special excise </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or other specific revenue source or annual revenues. Private activity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds and industrial development bonds
generally are also limited </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation bonds and thus are not payable from the issuer&#8217;s general </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">revenues. The credit and quality of private activity bonds and industrial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">development bonds are usually
related to the credit of the corporate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">user of the facilities. Payment of interest on and repayment of principal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of such bonds is the responsibility of the corporate user (and/or any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">guarantor).</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest
in Build America Bonds, which are tax credit bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">created by the American Recovery and Reinvestment Act of 2009, which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">authorized state and local governments to issue Build America Bonds as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable bonds in 2009 and 2010, without
volume limitations, to finance </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any capital expenditures for which such issuers could otherwise issue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">traditional tax-exempt bonds. State and local governments may receive </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a direct federal subsidy payment for a
portion of their borrowing costs </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on Build America Bonds equal to 35% of the total coupon interest paid </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to investors (or 45% in the case of Recovery Zone Economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Development Bonds). The state or local government
issuer can elect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">either take the federal subsidy or pass the 35% tax credit along to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bondholders. The Fund&#8217;s investments in Build America Bonds will result </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in taxable income
and the Fund may elect to pass through to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholders any corresponding tax credits. Such tax credits can </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally be used to offset federal income taxes and the alternative </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">minimum tax, but such credits are generally not refundable. Build </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">America Bonds involve similar risks as municipal bonds, including credit </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and market risk. They are intended to
assist state and local governments </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">in financing capital projects at lower borrowing costs and are likely to </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">attract a broader group of investors than tax-exempt municipal bonds. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Although Build America Bonds were only
authorized for issuance during </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">2009 and 2010, the program may have resulted in reduced issuance of
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">tax-exempt municipal bonds during the same period. The Build America </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Bond program expired on
December 31, 2010, at which point no further </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">issuance of new Build America Bonds was permitted. As of the date of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">this prospectus, there is no indication that Congress will renew the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">program to permit issuance of new Build
America Bonds.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in pre-refunded municipal bonds. Pre-refunded </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds are bonds that have been
refunded to a call date prior </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the final maturity of principal, or, in the case of pre-refunded
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds commonly referred to as &#8220;escrowed-to-maturity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds,&#8221; to the final
maturity of principal, and remain outstanding in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal market. The payment of principal and interest of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pre-refunded municipal bonds held by the Fund is funded from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities in a designated escrow account that
holds U.S. Treasury </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities or other obligations of the U.S. government (including its
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agencies and instrumentalities (&#8220;Agency Securities&#8221;)). Interest payments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on
pre-funded municipal bonds issued on or prior to December 31, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2017 are exempt from federal income tax; pre-funded municipal bonds </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued after December 31, 2017 will not qualify for such tax-advantaged </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">treatment. Pre-refunded municipal
bonds usually will bear an AAA/Aaa </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating (if rerated by Fitch, Moody&#8217;s or S&amp;P or if determined by PIMCO to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be of comparable quality) because they are backed by U.S. Treasury </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities or Agency Securities. For the
avoidance of any doubt, PIMCO&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determination of issuer credit rating will be used for compliance with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s investment parameters. See &#8220;Credit Ratings and Unrated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Securities.&#8221; Because the
payment of principal and interest is generated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from securities held in an escrow account established by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipality and an independent escrow agent, the pledge of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipality has been fulfilled and the
original pledge of revenue by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipality is no longer in place. The escrow account securities pledged </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to pay the principal and interest of the pre-refunded municipal bond do </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not guarantee the price movement of
the bond before maturity. Issuers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of municipal bonds refund in advance of maturity the outstanding
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher cost debt and issue new, lower cost debt, placing the proceeds of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the lower cost issuance
into an escrow account to pre-refund the older, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher cost debt. Investment in pre-refunded municipal bonds held by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund may subject the Fund to interest rate risk and market risk. In </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addition, while a secondary market
exists for pre-refunded municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds, if the Fund sells pre-refunded municipal bonds prior to maturity, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the price received may be more or less than the original cost, depending </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on market conditions at the time of
sale.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund may invest in instruments, or participations in instruments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued in connection with lease obligations or installment purchase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contract obligations of municipalities (&#8220;municipal lease obligations&#8221;). </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although municipal lease
obligations do not constitute general </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations of the issuing municipality, a lease obligation may be backed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by the municipality&#8217;s covenant to budget for, appropriate funds for and </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">24</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_4"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">make the payments due under
the lease obligation. However, certain </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">municipal lease obligations contain &#8220;non-appropriation&#8221; clauses, which </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">provide that the municipality has no obligation to make lease or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">installment purchase payments in future years
unless money is </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">appropriated for such purpose in the relevant years. In deciding whether </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to
purchase a lease obligation for the Fund, PIMCO will generally assess </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the financial condition of the borrower, the merits of the project, the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">level of public support for the project, and the legislative history of lease </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">financing in the state.
Municipal lease obligations may be less readily </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">marketable than other municipal securities.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Projects financed with certificates of participation generally are not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to state constitutional debt
limitations or other statutory </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements that may apply to other municipal securities. Payments by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the public entity on the obligation underlying the certificates are derived </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from available revenue sources.
That revenue might be diverted to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">funding of other municipal service projects. Payments of interest and/or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal with respect to the certificates are not guaranteed and do not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitute an obligation of a state
or any of its political subdivisions.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Some longer-term municipal bonds give the investor the right to
&#8220;put&#8221; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or sell the security at par (face value) within a specified number of days
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">following the investor&#8217;s request-usually one to seven days. This demand </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">feature enhances a
security&#8217;s liquidity by shortening its effective </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maturity and enables it to trade at a price equal to or very close to par. If </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a demand feature terminates prior to being exercised, the Fund would </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hold the longer-term security, which
could experience substantially more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">volatility.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in municipal warrants, which are essentially call </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">options on municipal bonds. In exchange for a premium, municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">warrants give the purchaser the right, but
not the obligation, to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase a municipal bond in the future. The Fund may purchase a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">warrant
to lock in forward supply in an environment in which the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">current issuance of bonds is sharply reduced. Like options, warrants may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expire worthless and may have reduced liquidity.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in municipal bonds with credit enhancements such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as letters of credit, municipal bond insurance and standby bond </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase agreements (&#8220;SBPAs&#8221;).
Letters of credit are issued by a third </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">party, usually a bank, to enhance liquidity and to ensure repayment of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal and any accrued interest if the underlying municipal bond </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">should default. Municipal bond insurance,
which is usually purchased by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the bond issuer from a private, nongovernmental insurance company,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provides an unconditional and irrevocable guarantee that the insured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bond&#8217;s principal and
interest will be paid when due. Insurance does not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">guarantee the price of the bond. The credit rating of an insured bond </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reflects the credit rating of the insurer, based on its claims-paying ability. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The obligation of a municipal
bond insurance company to pay a claim </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">extends over the life of each insured bond. Although defaults on insured </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds have been low to date and municipal bond insurers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have met their claims, there is no assurance
that this will continue. A </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher-than expected default rate could strain the insurer&#8217;s loss reserves </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and adversely affect its ability to pay claims to bondholders. Because a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significant portion of insured
municipal bonds that have been issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and are outstanding is insured by a small number of insurance </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">companies, not all of which
have the highest credit rating, an event </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">involving one or more of these insurance companies, such as a credit </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">rating downgrade, could have a significant adverse effect on the value </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of the municipal bonds insured by such
insurance company or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">companies and on the municipal bond markets as a whole. An SBPA is a
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">liquidity facility provided to pay the purchase price of bonds that cannot </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">be re-marketed. The
obligation of the liquidity provider (usually a bank) </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">is only to advance funds to purchase tendered bonds that cannot be </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">re-marketed and does not cover principal or interest under any other </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">circumstances. The liquidity
provider&#8217;s obligations under the SBPA are </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">usually subject to numerous conditions, including the continued </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">creditworthiness of the underlying borrower.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Tender Option Bonds</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund may invest in trust certificates issued in TOB programs. In a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">TOB transaction, a TOB Trust issues a TOB Floater and a TOB Residual </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and utilizes the proceeds of such issuance to purchase a Fixed Rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bond that either is owned or identified by
the Fund. The TOB Floater is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally issued to third party investors (typically a money market fund) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the TOB Residual is generally issued to the Fund, which sold or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">identified the Fixed Rate Bond. The TOB
Trust divides the income stream </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provided by the Fixed Rate Bond to create two securities, the TOB
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Floater, which is a short-term security, and the TOB Residual, which is a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">longer-term security.
The interest rates payable on the TOB Residual </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued to the Fund bear an inverse relationship to the interest rate on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the TOB Floater. The interest rate on the TOB Floater is reset by a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">remarketing process typically every 7 to
35 days. After income is paid on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the TOB Floater at current rates, the residual income from the Fixed Rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bond goes to the TOB Residual. Therefore, rising short-term rates result </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in lower income for the TOB Residual,
and vice versa. In the case of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">TOB Trust that utilizes the cash received (less transaction expenses) from </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the issuance of the TOB Floater and TOB Residual to purchase the Fixed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rate Bond from the Fund, the Fund may
then invest the cash received in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional securities, generating leverage for the Fund. Other
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO-managed accounts may also contribute municipal bonds to a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">TOB Trust into which the Fund has
contributed Fixed Rate Bonds. If </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">multiple PIMCO-managed accounts participate in the same TOB Trust,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the economic rights and obligations under the TOB Residual will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shared among the funds ratably
in proportion to their participation in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the TOB Trust.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The TOB Residual may be more volatile and less liquid than other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds of comparable maturity. In most circumstances the TOB </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Residual holder bears substantially all
of the underlying Fixed Rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bond&#8217;s downside investment risk and also benefits from any
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appreciation in the value of the underlying Fixed Rate Bond. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investments in a TOB Residual
typically will involve greater risk than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments in Fixed Rate Bonds.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A TOB Residual held by the Fund provides the Fund with the right to: (1) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cause the holders of the TOB Floater to tender their notes at par, and (2) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cause the sale of the Fixed Rate
Bond held by the TOB Trust, thereby </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collapsing the TOB Trust. TOB Trusts are generally supported by a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity facility provided by a third party bank or other financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">institution (the &#8220;Liquidity
Provider&#8221;) that provides for the purchase of </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">25&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_5"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">TOB Floaters that cannot be remarketed. The holders of the TOB Floaters </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">have the right to tender their
certificates in exchange for payment of par </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">plus accrued interest on a periodic basis (typically weekly) or on the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">occurrence of certain mandatory tender events. The tendered TOB </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Floaters are remarketed by a remarketing
agent, which is typically an </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">affiliated entity of the Liquidity Provider. If the TOB Floaters cannot be </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">remarketed, the TOB Floaters are purchased by the TOB Trust either from </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the proceeds of a loan from the
Liquidity Provider or from a liquidation </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of the Fixed Rate Bond.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The TOB Trust may also be collapsed without the consent of the Fund, as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the TOB Residual holder, upon the occurrence of certain &#8220;tender option </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">termination events&#8221; (or
&#8220;TOTEs&#8221;) as defined in the TOB Trust </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements. Such termination events typically include the bankruptcy or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default of the municipal bond, a substantial downgrade in credit quality </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the municipal bond, or a judgment
or ruling that interest on the Fixed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rate Bond is subject to federal income taxation. Upon the occurrence of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a termination event, the TOB Trust would generally be liquidated in full </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the proceeds typically applied
first to any accrued fees owed to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">trustee, remarketing agent, and liquidity provider, and then to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders of the TOB Floater up to par plus accrued interest owed on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">TOB Floater and a portion of gain
share, if any, with the balance paid </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">out to the TOB Residual holder. In the case of a mandatory termination </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event, after the payment of fees, the TOB Floater holders would be paid </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">before the TOB Residual holders (i.e.,
the Fund). In contrast, in the case </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of a TOTE, after payment of fees, the TOB Floater holders and the TOB </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Residual holders would be paid pro rata in proportion to the respective </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">face values of their
certificates.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">If there are insufficient proceeds from the liquidation of the TOB Trust, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the party that would bear the losses
would depend upon whether the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund holds a non-recourse TOBs Residual or a recourse TOBs Residual. If </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund holds a non-recourse TOBs Residual, the Liquidity Provider or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders of the TOBs Floaters would bear
the losses on those securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and there would be no recourse to the Fund&#8217;s assets. If the Fund holds a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recourse TOBs Residual, the Fund (and, indirectly, holders of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares) would typically
bear the losses. In particular, if the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund holds a recourse TOBs Residual, it will typically have entered into </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an agreement pursuant to which the Fund would be required to pay to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Liquidity Provider the difference
between the purchase price of any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">TOBs Floaters put to the Liquidity Provider by holders of the TOBs </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Floaters and the proceeds realized from the remarketing of those TOBs </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Floaters or the sale of the assets in
the TOBs Issuer. The Fund may invest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in both non-recourse and recourse TOBs Residuals to leverage its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In December 2013, regulators finalized rules implementing Section 619 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(the &#8220;Volcker Rule&#8221;) and
Section 941 (the &#8220;Risk Retention Rules&#8221;) of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Dodd-Frank Act. Both the Volcker Rule and the Risk Retention Rules </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">apply to TOB programs. In particular, these rules preclude banking </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entities from (i) sponsoring or acquiring
interests in the trusts used to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hold a municipal bond in the creation of TOB Trusts; and (ii) continuing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to service or maintain relationships with existing programs involving </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">TOB Trusts to the same extent and in the
same capacity as existing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">programs. The Risk Retention Rules require the sponsor to a TOB Trust to </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">retain at least five
percent of the credit risk of the underlying assets </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">supporting to the TOB Trust&#8217;s municipal bonds. The Risk Retention Rules </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may increase the costs of such transactions in certain circumstances.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In response to these rules, industry participants explored various </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structuring alternatives for TOB Trusts established after December 31, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2013 and TOB Trusts established prior
to December 31, 2013 (&#8220;Legacy </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">TOB Trusts&#8221;) and agreed on a new TOB structure in which the Fund hires </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service providers to assist with establishing, structuring, and sponsoring </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a TOB Trust. Service providers to a
TOB Trust, such as administrators, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity providers, trustees, and remarketing agents act at the direction </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of, and as agent of, the Fund as the TOB Residual holder.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under the new TOB Trust structure, the Liquidity Provider or remarketing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agent will no longer purchase the tendered TOB Floaters, even in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event of failed remarketing. This may
increase the likelihood that a TOB </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Trust will need to be collapsed and liquidated in order to purchase the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tendered TOB Floaters. The TOB Trust may draw upon a loan from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Liquidity Provider to purchase the tendered
TOB Floaters. Any loans </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">made by the Liquidity Provider will be secured by the purchased TOB
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Floaters held by the TOB Trust and will be subject to an interest rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreed with the Liquidity
Provider.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Bonds</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in&nbsp;bonds of varying maturities issued by non-U.S. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(foreign) and U.S. corporations and other business entities, governments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and quasi-governmental entities and
municipalities and other issuers. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bonds may include, among other things, fixed or variable/floating-rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt obligations, including bills, notes, debentures, money market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments and similar instruments and
securities. Bonds generally are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">used by corporations as well as governments and other issuers to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrow money from investors. The issuer pays the investor a fixed or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">variable rate of interest
and normally must repay the amount borrowed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on or before maturity. Certain bonds are &#8220;perpetual&#8221; in that they have </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no maturity date.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Loans and Other Indebtedness, Loan Participations and </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Assignments</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund
may purchase indebtedness and participations in loans, as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">well as interests and/or servicing or similar rights in such loans. Such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments may be secured or unsecured and may be newly-originated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(and may be specifically designed for the
Fund). Such investments are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">different from traditional debt securities in that debt securities are part </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of a large issue of securities to the public whereas indebtedness may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not be a security for purposes of the
Securities Act and may represent a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specific loan to a borrower. Loan participations typically represent direct </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participation, together with other parties, in a loan to a borrower, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally are offered by banks or
other financial institutions or lending </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">syndicates. The Fund may participate in such syndications, or can buy all </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or part of a loan, becoming a lender. When purchasing indebtedness </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and loan participations, the Fund assumes
the credit risk associated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the borrower and may assume the credit risk associated with an </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">26</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_6"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">interposed bank or other
financial intermediary. The indebtedness and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">loan participations that the Fund may acquire may not be rated by any </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">nationally recognized rating service.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A
loan is often administered by an agent bank acting as agent for all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders. The agent bank administers the terms of the loan, as specified </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the loan agreement. In addition, the agent bank is normally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">responsible for the collection of principal and
interest payments from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the borrower and the apportionment of these payments to the credit of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">all
institutions which are parties to the loan agreement. Unless, under </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the terms of the loan or other indebtedness, the Fund has direct </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recourse against the borrower, the Fund may have to rely on the agent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bank or other financial intermediary to
apply appropriate credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">remedies against a borrower.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A financial institution&#8217;s employment as agent bank might be terminated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the event that it fails to
observe a requisite standard of care or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">becomes insolvent. A successor agent bank would generally be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appointed to replace the terminated agent bank, and assets held by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agent bank under the loan agreement
should remain available to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders of such indebtedness. However, if assets held by the agent bank
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for the benefit of the Fund were determined to be subject to the claims </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the agent bank&#8217;s
general creditors, the Fund might incur certain costs </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and delays in realizing payment on a loan or loan participation and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could suffer a loss of up to its entire investment, including principal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or interest. In situations
involving other interposed financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">institutions (e.g., an insurance company or governmental agency) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar risks may arise.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Purchasers of
loans and other forms of direct indebtedness depend </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">primarily upon the creditworthiness of the borrower for payment of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal and interest. If the Fund does not receive scheduled interest or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal payments on such
indebtedness, the Fund&#8217;s share price and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">yield could be adversely affected. Loans that are fully secured may offer </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund more protection than an unsecured loan in the event of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-payment of scheduled interest or principal
if the Fund is able to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">access and monetize the collateral. However, the collateral underlying a
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loan, if any, may be unavailable or insufficient to satisfy a borrower&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation. In the
event of the bankruptcy of a borrower, the Fund could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">experience delays or limitations in its ability to realize the benefits of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any collateral securing a loan.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund
may acquire loan participations with credit quality comparable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to that of issuers of its securities investments. Indebtedness of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrowers whose creditworthiness is poor involves substantially greater </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks, and may be highly speculative.
Some borrowers may never pay off </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their indebtedness, or may pay only a small fraction of the amount
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">owed. Consequently, when acquiring indebtedness of borrowers with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">poor credit, the Fund bears a
substantial risk of losing the entire amount </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the instrument acquired. The Fund may make purchases of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indebtedness and loan participations to achieve income and/or capital </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appreciation.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loans and other types of direct indebtedness (which the Fund acquires </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or otherwise gains exposure to) may not be readily marketable and may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be subject to restrictions on resale. In
some cases, negotiations involved </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in disposing of indebtedness may require weeks to complete. </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Consequently, some
indebtedness may be difficult or impossible to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">dispose of readily at what the Investment Manager believes to be a fair </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">price. In addition, valuation of illiquid indebtedness involves a greater </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">degree of judgment in determining
the Fund&#8217;s net asset value than if </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that value were based on available market quotations, and could result </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">in significant variations in the Fund&#8217;s daily share price. At the same time, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">some loan interests are
traded among certain financial institutions and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">accordingly may be deemed liquid. Please refer to &#8220;Illiquid Investments&#8221; </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">for further discussion of regulatory considerations and constraints </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">relating to investment liquidity.
Investments in loan participations are </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">considered to be debt obligations for purposes of the Fund&#8217;s investment </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">restriction relating to the lending of funds or assets.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In purchasing loans, the Fund will compete with a broad spectrum of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lenders. Increased competition for, or a
diminishment in the available </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">supply of, qualifying loans could result in lower yields on such loans, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could reduce Fund performance.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investments in loans through a purchase of a loan or a direct </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assignment of a financial institution&#8217;s interests with respect to the loan </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may involve additional risks
to the Fund. The purchaser of an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assignment typically succeeds to all the rights and obligations under the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loan agreement with the same rights and obligations as the assigning </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lender. Assignments may, however, be
arranged through private </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">negotiations between potential assignees and potential assignors, and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the rights and obligations acquired by the purchaser of an assignment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may differ from, and be
more limited than, those held by the assigning </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lender. For example, if a loan is foreclosed, the Fund could become </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">owner, in whole or in part, of any collateral and would bear the costs </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and liabilities associated with owning
and holding or disposing of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral. In addition, it is conceivable that under emerging legal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">theories of lender liability, the Fund could be held liable. It is unclear </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">whether loans and other forms of
direct indebtedness offer securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">law protections against fraud and misrepresentation. In the absence of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">definitive regulatory guidance, the Fund relies on the Investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Manager&#8217;s research in an attempt to
avoid situations where fraud or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">misrepresentation could adversely affect the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in debtor-in-possession financings (commonly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">known as &#8220;DIP financings&#8221;). DIP
financings are arranged when an entity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seeks the protections of the bankruptcy court under Chapter 11 of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. Bankruptcy Code. These financings allow the entity to continue its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business operations while reorganizing
under Chapter 11. Such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financings constitute senior liens on unencumbered security (i.e.,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security not subject to other creditors&#8217; claims). There is a risk that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entity will not
emerge from Chapter 11 and be forced to liquidate its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidation, the Fund&#8217;s only recourse will be against the property </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securing the DIP
financing.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In making a direct loan, the Fund is exposed to the risk that the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrower may default or become insolvent and, consequently, that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund will lose money on the loan.
Furthermore, direct loans may subject </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund to liquidity and interest rate risk and certain direct loans may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be deemed illiquid. Direct loans are not publicly traded and may not </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">27&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_7"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">have a secondary market. The lack of a secondary market for direct loans </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may have an adverse impact on the
ability of the Fund to dispose of a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">direct loan and/or to value the direct loan.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Various state licensing requirements could apply to the Fund with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to investments in loans and similar
assets. The licensing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements could apply depending on the location of the borrower, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the
location of the collateral securing the loan, or the location where the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund or PIMCO operates or has offices. In states in which it is licensed, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund or PIMCO will be required to comply with applicable laws and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulations, including consumer
protection and anti-fraud laws, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could impose restrictions on the Fund&#8217;s or PIMCO&#8217;s ability to take </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain actions to protect the value of its investments in such assets and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impose compliance costs. Failure to
comply with such laws and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulations could lead to, among other penalties, a loss of the Fund&#8217;s or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO&#8217;s license, which in turn could require the Fund to divest assets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">located in or secured by real
property located in that state. These risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will also apply to issuers and entities in which the Fund invests that hold </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar assets, as well as any origination company or servicer in which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund owns an
interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loan origination and servicing companies are routinely involved in legal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceedings concerning matters that arise in the ordinary course of their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business. These legal proceedings
range from actions involving a single </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">plaintiff to class action lawsuits with potentially tens of thousands of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">class members. In addition, a number of participants in the loan </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">origination and servicing industry (including
control persons of industry </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participants) have been the subject of regulatory actions by state
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulators, including state attorneys general, and by the federal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government. Governmental
investigations, examinations or regulatory </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">actions, or private lawsuits, including purported class action lawsuits, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may adversely affect such companies&#8217; financial results. To the extent the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund seeks to engage in
origination and/or servicing directly, or has a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial interest in, or is otherwise affiliated with, an origination or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">servicing company, the Fund will be subject to enhanced risks of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">litigation, regulatory actions and other
proceedings. As a result, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may be required to pay legal fees, settlement costs, damages,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">penalties or other charges, any or all of which could materially adversely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect the Fund and
its holdings.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Loan Origination</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in and/or originate loans, including, without </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation, to, on behalf of, authorized by, sponsored by, and/or in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with a project for which
authority and responsibility lies with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more U.S. states or territories, cities in a U.S. state or territory, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political subdivisions, agencies, authorities or instrumentalities of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">states, territories or cities,
which may be in the form of whole loans, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assignments, participations, secured and unsecured notes, senior and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">second lien loans, mezzanine loans, bridge loans or similar investments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including to borrowers that are
unrated or have credit ratings that are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined by one or more NRSROs and/or PIMCO to be below
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade. This may include loans to public or private firms or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">individuals, such as in
connection with housing development projects. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The loans the Fund invests in or originates may vary in maturity and/or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">duration. The Fund is not limited in the amount, size or type of loans it </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may invest in and/or originate, including with respect to a single </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">borrower or with respect to borrowers that are determined to be below </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment grade, other than pursuant to
any applicable law. The Fund's </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment in or origination of loans may also be limited by the
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">requirements the Fund intends to observe under Subchapter M of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Code in order to qualify as a
RIC. The loans acquired by the Fund may be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">&#8220;municipal bonds&#8221; (including of a particular state) for purposes of the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund's investment policies or may be loans that produce income that is </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">subject to applicable regular income
tax, subject to the Fund's </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment limits.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In making a direct loan, the Fund is exposed to the risk that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrower may default or become insolvent
and, consequently, that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund will lose money on the loan. Furthermore, direct loans may subject
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund to liquidity and interest rate risk and certain direct loans may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be deemed illiquid.
Direct loans are not publicly traded and may not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have a secondary market. The lack of a secondary market for direct loans </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may have an adverse impact on the ability of the Fund to dispose of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">direct loan and/or to value the direct
loan.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">When engaging in direct lending, the Fund&#8217;s performance may depend, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in part, on the ability of the Fund to originate loans on advantageous </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">terms. In originating and purchasing
loans, the Fund will often compete </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with a broad spectrum of lenders. Increased competition for, or a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">diminishment in the available supply of, qualifying loans could result in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lower yields on and/or less
advantageous terms of such loans, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could reduce Fund performance.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As part of its lending activities, the Fund may originate loans (including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subprime loans) to borrowers that
are experiencing significant financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or business difficulties, including borrowers involved in bankruptcy or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other reorganization and liquidation proceedings or that are rated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;below investment grade&#8221; by a
NRSRO or unrated. Although the terms </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of such financing may result in significant financial returns to the Fund, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">they involve a substantial degree of risk. The level of analytical </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sophistication, both financial and legal,
necessary for successful </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financing to borrowers experiencing significant business and financial
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">difficulties is unusually high. Different types of assets may be used as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral for the
Fund&#8217;s loans and, accordingly, the valuation of and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks associated with such collateral will vary by loan. There is no </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assurance that the Fund will correctly evaluate the value of the assets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateralizing the Fund&#8217;s loans
or the prospects for a successful </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reorganization or similar action. In any reorganization or liquidation </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeding relating to a borrower that the Fund funds, the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lose all or part of the amounts advanced
to the borrower or may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">required to accept collateral with a value less than the amount of the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loan advanced by the Fund or its affiliates to the borrower. Furthermore, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the event of a
default by a borrower, the Fund may have difficulty </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disposing of the assets used as collateral for a loan.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bridge loans are short-term loan arrangements (e.g., 12 to 18 months) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">typically made by a borrower in anticipation of intermediate-term or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">long-term permanent financing. Most
bridge loans are structured as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">floating-rate debt with step-up provisions under which the interest rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on the bridge loan rises over time. Thus, the longer the loan remains </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding, the more the interest rate
increases. In addition, bridge </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">28</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_8"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">loans commonly contain a
conversion feature that allows the bridge </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">loan investor to convert its loan interest into senior exchange notes if </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the loan has not been prepaid in full on or prior to its maturity date. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Bridge loans may be subordinate to
other debt and may be secured or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">unsecured. Like any loan, bridge loans involve credit risk. Bridge loans </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">are generally made with the expectation that the borrower will be able </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to obtain permanent financing in the
near future. Any delay in obtaining </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">permanent financing subjects the bridge loan investor to increased risk. </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">A borrower&#8217;s use of bridge loans also involves the risk that the borrower </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may be unable to locate
permanent financing to replace the bridge </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">loan, which may impair the borrower&#8217;s perceived creditworthiness.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Various state licensing requirements could apply to the Fund with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to the origination, acquisition, holding, servicing, foreclosure </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or disposition of loans and
similar assets. The licensing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements could apply depending on the location of the borrower,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the location of the collateral securing the loan, or the location where the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund or PIMCO
operates or has offices. In states in which it is licensed, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund or PIMCO will be required to comply with applicable laws and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulations, including consumer protection and anti-fraud laws, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could impose restrictions on the
Fund&#8217;s or PIMCO&#8217;s ability to take </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain actions to protect the value of its holdings in such assets and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impose compliance costs. Failure to comply with such laws and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulations could lead to, among other
penalties, a loss of the Fund&#8217;s or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO&#8217;s license, which in turn could require the Fund to divest assets </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">located in or secured by real property located in that state. These risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will also apply to issuers and
entities in which the Fund invests that hold </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar assets, as well as any origination company or servicer in which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund owns an interest. Loan origination and servicing companies </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are routinely involved in legal
proceedings concerning matters that arise </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the ordinary course of their business. These legal proceedings range </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from actions involving a single plaintiff to class action lawsuits with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">potentially tens of thousands of class
members. In addition, a number of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participants in the loan origination and servicing industry (including </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">control persons of industry participants) have been the subject of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulatory actions by state regulators,
including state attorneys general, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and by the federal government. Governmental investigations,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">examinations or regulatory actions, or private lawsuits, including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purported class action
lawsuits, may adversely affect such companies&#8217; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial results. To the extent the Fund seeks to engage in origination </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or servicing directly, or has a financial interest in, or is otherwise </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affiliated with, an origination or
servicing company, the Fund will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to enhanced risks of litigation, regulatory actions and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceedings. As a result, the Fund may be required to pay legal fees, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">settlement costs, damages, penalties or
other charges, any or all of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could materially adversely affect the Fund and its holdings.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Commercial Paper</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Commercial paper represents short-term unsecured promissory notes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued in bearer form by corporations such
as banks or bank holding </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies and finance companies. The rate of return on commercial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">paper
may be linked or indexed to the level of exchange rates between </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the U.S. dollar and a foreign currency or currencies.</font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">U.S.
Government Securities</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. government securities are obligations of and, in certain cases, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">guaranteed by, the U.S. government, its agencies or instrumentalities. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The U.S. government does not guarantee
the NAV of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">common shares. Some U.S. government securities, such as Treasury bills,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">notes and bonds, and securities guaranteed by the Government </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">National Mortgage Association, are
supported by the full faith and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit of the United States; others, such as those of the Federal Home </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loan Banks, are supported by the right of the issuer to borrow from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. Department of the Treasury (the
&#8220;U.S. Treasury&#8221;); others, such as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those of the Federal National Mortgage Association, are supported by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the discretionary authority of the U.S. government to purchase the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency&#8217;s obligations; and still
others are supported only by the credit of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the instrumentality. U.S. government securities may include zero coupon </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, which do not distribute interest on a current basis and tend to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be subject to greater risk than
interest-paying securities of similar </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maturities.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">High Yield Securities</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 20% of its net assets in municipal bonds that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are, at the time of purchase, rated below &#8220;investment grade&#8221; by at least </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one of Moody&#8217;s,
S&amp;P Global Ratings or Fitch, or unrated but determined </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by PIMCO to be of comparable quality. &#8220;Investment grade&#8221; means a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating, in the case of Moody&#8217;s, of Baa3 or higher, in the case of S&amp;P and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fitch, of BBB-or higher.
The Fund may invest in securities of stressed or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distressed issuers, which include securities at risk of being in default as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the repayment of principal and/or interest at the time of acquisition </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by the Fund or that are rated in the
lower rating categories by one or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more nationally recognized statistical rating organizations (for example, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ca or lower by Moody&#8217;s or CC or lower by S&amp;P or Fitch) or, if unrated, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are determined by PIMCO to be
of comparable quality. The Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest in defaulted securities and debtor-in-possession financings. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Below investment grade securities are commonly referred to as &#8220;high </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">yield&#8221; securities or
&#8220;junk bonds.&#8221; High yield securities involve a greater </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">degree of risk (in particular, a greater risk of default) than, and special </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks in addition to, the risks associated with investment grade debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations. While offering a greater
potential opportunity for capital </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appreciation and higher yields, high yield securities typically entail </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater potential price volatility and may be less liquid than higher-rated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. High yield securities
may be regarded as predominantly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative with respect to the issuer&#8217;s continuing ability to make timely </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal and interest payments. They also may be more susceptible to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">real or perceived adverse economic and
competitive industry conditions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than higher-rated securities. Debt securities in the lowest investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">grade category also may be considered to possess some speculative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">characteristics by certain ratings
agencies.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The market values of high yield securities tend to reflect individual </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">developments of the issuer to a greater extent than do higher-quality </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, which tend to react mainly
to fluctuations in the general level </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of interest rates. In addition, lower-quality debt securities tend to be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more sensitive to general economic conditions. Certain emerging market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">governments that issue high yield
securities in which the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest are among the largest debtors to commercial banks, foreign </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">29&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_9"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">governments and supranational organizations, such as the World Bank, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and may not be able or willing to make
principal and/or interest </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">payments as they come due.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Credit Ratings and Unrated Securities</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rating agencies are private services that provide ratings of the credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quality of debt obligations. Appendix A to this prospectus describes the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">various ratings assigned to debt
obligations by Moody&#8217;s, S&amp;P and Fitch. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As noted in Appendix A, Moody&#8217;s, S&amp;P and Fitch may modify their </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings of securities to show relative standing within a rating category, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the addition of numerical
modifiers (1, 2 or 3) in the case of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s, and with the addition of a plus (+) or minus (-) sign in the case </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of S&amp;P and Fitch. Ratings assigned by a rating agency are not absolute </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">standards of credit quality and do
not evaluate market risks. Rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agencies may fail to make timely changes in credit ratings and an
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer&#8217;s current financial condition may be better or worse than a rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indicates. The
Fund will not necessarily sell a security when its rating is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reduced below its rating at the time of purchase. PIMCO does not rely </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">solely on credit ratings, and develops its own analysis of issuer credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quality.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The ratings of a debt
security may change over time. Moody&#8217;s, S&amp;P and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fitch monitor and evaluate the ratings assigned to securities on an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ongoing basis. As a result, debt instruments held by the Fund could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">receive a higher rating (which would tend
to increase their value) or a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lower rating (which would tend to decrease their value) during the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">period in which they are held by the Fund.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase unrated securities (which are not rated by a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating agency) if PIMCO determines, in its sole discretion, that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security is of comparable quality to a
rated security that the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase. In making these determinations, PIMCO may take into
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">account different factors than those taken into account by rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agencies, and PIMCO&#8217;s
rating of a security may differ from the rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that a rating agency may have given the same security. Unrated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities may be less liquid than comparable rated securities and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involve the risk that the portfolio manager
may not accurately evaluate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the security&#8217;s comparative credit rating. The Fund may invest a
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">substantial portion of its assets in unrated securities and therefore may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be particularly subject
to the associated risks. Analysis of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness of issuers of high yield securities may be more complex </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than for issuers of higher-quality fixed income securities. To the extent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the Fund invests in high yield
and/or unrated securities, the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">success in achieving its investment objective may depend more heavily </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on the portfolio manager&#8217;s credit analysis than if the Fund invested </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exclusively in higher-quality and
higher-rated securities.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Variable- and Floating-Rate Securities</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Variable- and floating-rate instruments are instruments that pay interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">at rates that adjust whenever a specified interest rate changes and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that reset on predetermined dates (such
as the last day of a month or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">calendar quarter). In addition to senior loans, variable- and floating-rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments may include, without limitation, instruments such as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">catastrophe and other event-linked bonds,
bank capital securities, </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">unsecured bank loans, corporate bonds, money market instruments and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">certain types of mortgage-related and
other asset-backed securities. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Due to their variable- or floating-rate features, these instruments will </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">generally pay higher levels of income in a rising interest rate </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">environment and lower levels of income as
interest rates decline. For the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">same reason, the market value of a variable- or floating-rate instrument </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">is generally expected to have less sensitivity to fluctuations in market </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">interest rates than a fixed-rate
instrument, although the value of a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">variable- or floating-rate instrument may nonetheless decline as interest </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">rates rise and due to other factors, such as changes in credit quality.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund also may engage in credit spread trades. A credit spread trade </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is an investment position relating to
a difference in the prices or interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rates of two bonds or other securities, in which the value of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment position is determined by changes in the difference between </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the prices or interest rates, as the
case may be, of the respective </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Inverse Floaters</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">An
inverse floater is a type of debt instrument that bears a floating or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">variable interest rate that moves in the opposite direction to interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rates generally or the interest rate on another security or index. Changes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in interest rates generally, or the
interest rate of the other security or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">index, inversely affect the interest rate paid on the inverse floater, with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the result that the inverse floater&#8217;s price will be considerably more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">volatile than that of a fixed-rate
bond. The Fund may invest without </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation in inverse floaters, which brokers typically create by depositing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an income-producing instrument, which may be a mortgage-related </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security, in a trust. The trust in turn issues
a variable rate security and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">inverse floaters. The interest rate for the variable rate security is typically </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined by an index or an auction process, while the inverse floater </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holder receives the balance of the
income from the underlying </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income-producing instrument less an auction fee. The market prices of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">inverse floaters may be highly sensitive to changes in interest rates and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prepayment rates on the
underlying securities, and may decrease </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly when interest rates increase or prepayment rates change. In </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a transaction in which the Fund purchases an inverse floater from a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">trust, and the underlying bond was held by
the Fund prior to being </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">deposited into the trust, the Fund will typically treat the transaction as a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">secured borrowing for financial reporting purposes. As a result, for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial reporting purposes, the Fund
will generally incur a non-cash </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest expense with respect to interest paid by the trust on the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">variable rate securities, and will recognize additional interest income in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an amount directly
corresponding to the non-cash interest expense. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Therefore, the Fund&#8217;s NAV per Common Share and performance will not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be affected by the non-cash interest expense. This accounting treatment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">does not apply to inverse floaters
acquired by the Fund when the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">did not previously own the underlying bond.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Derivatives</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund
may, but is not required to, use various derivative instruments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for risk management purposes or as part of its investment strategy. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may use various derivatives transactions to add leverage to its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio. See &#8220;Use of
Leverage.&#8221;</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">30</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_10"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Generally, derivatives are
financial contracts whose value depends </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">upon, or is derived from, the value of an underlying asset, reference rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or index, and may relate to, among others, stocks, bonds, real estate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments, interest rates, spreads
between different interest rates, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">currencies or currency exchange rates, commodities and related indexes. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Examples of derivative instruments that the Fund may use include, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">without limitation, futures and forward
contracts (including foreign </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">currency exchange contracts), call and put options (including options on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">futures contracts), credit default swaps, total return swaps, basis swaps </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other swap agreements. The
Fund&#8217;s use of derivative instruments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involves risks different from, or possibly greater than, the risks </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with investing directly in securities and other more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">traditional investments. Please see
&#8220;Principal Risks of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8212;Derivatives Risk&#8221; in this prospectus and see &#8220;Investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Objective and Policies&#8212;Derivative Instruments&#8221; in the Statement of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Additional Information for
additional information about these and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivative instruments that the Fund may use and the risks associated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with such instruments. There is no assurance that these derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">strategies will be available at any time or
that PIMCO will determine to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">use them for the Fund or, if used, that the strategies will be successful. In </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addition, the Fund may be subject to certain restrictions on its use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivative strategies imposed by
guidelines of one or more rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agencies that may issue ratings for any preferred shares issued by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Certain Interest
Rate Transactions</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In order to reduce the interest rate risk inherent in the Fund&#8217;s underlying
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments and capital structure, the Fund may (but is not required to) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">enter into interest rate
swap transactions. Interest rate swaps involve </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the exchange by the Fund with a counterparty of their respective </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitments to pay or receive interest, such as an exchange of fixed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate payments for floating rate payments.
These transactions generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involve an agreement with the swap counterparty to pay a fixed or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">variable rate payment in exchange for the counterparty paying the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the other type of payment
stream (i.e., variable or fixed). The payment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation would be based on the notional amount of the swap. Other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">forms of interest rate swap agreements in which the Fund may invest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">include without limitation interest rate
caps, under which, in return for a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">premium, one party agrees to make payments to the other to the extent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that interest rates exceed a specified rate, or &#8220;cap;&#8221; interest rate floors, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under which, in
return for a premium, one party agrees to make </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments to the other to the extent that interest rates fall below a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specified rate, or &#8220;floor;&#8221; and interest rate &#8220;collars,&#8221; under which a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">party sells a
cap and purchases a floor or vice versa in an attempt to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">protect itself against interest rate movements exceeding given minimum </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or maximum levels. The Fund may (but is not required to) use interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate swap transactions with the intent
to reduce or eliminate the risk </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that an increase in short-term interest rates could pose for the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance of the Fund's Common Shares as a result of leverage, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also may use these
instruments for other hedging or investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purposes. Any termination of an interest rate swap transaction could </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">result in a termination payment by or to the Fund.</font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Credit Default Swaps</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may enter into credit default swaps for both investment and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk management purposes, as well as to
add leverage to the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio. A credit default swap may have as reference obligations one </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or more securities that are not currently held by the Fund. The protection </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;buyer&#8221; in a credit
default swap is generally obligated to pay the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">protection &#8220;seller&#8221; an upfront or a periodic stream of payments over the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">term of the contract provided that no credit event, such as a default, on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a reference obligation has occurred.
If a credit event occurs, the seller </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally must pay the buyer the &#8220;par value&#8221; (full notional value) of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swap in exchange for an equal face amount of deliverable obligations of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the reference entity described in the
swap, or the seller may be required </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to deliver the related net cash amount, if the swap is cash settled. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rather than exchange the bonds for par value, a single cash payment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be due from the protection seller
representing the difference </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">between the par value of the bonds and the current market value of the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds (which may be determined through an auction). The Fund may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">either the buyer or seller in
the transaction. If the Fund is a buyer and no </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit event occurs, the Fund may recover nothing if the swap is held </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through its termination date. However, if a credit event occurs, the buyer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally may elect to receive the
full notional value of the swap from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the seller, who, in turn, generally will recover an amount significantly </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lower than the equivalent face amount of the obligations of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reference entity, whose value may have
significantly decreased, through </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(i) physical delivery of such obligations by the buyer, (ii) cash settlement </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or (iii) an auction process. As a seller, the Fund generally receives an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">upfront payment or a fixed rate of
income throughout the term of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swap provided that there is no credit event. As the seller, the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would effectively add leverage to its portfolio because, in addition to its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total net assets, the Fund would
be subject to investment exposure on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the notional amount of the swap.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The spread of a credit default swap is the annual amount the protection </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">buyer must pay the protection seller
over the length of the contract, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expressed as a percentage of the notional amount. When spreads rise, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market perceived credit risk rises and when spreads fall, market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived credit risk falls. Wider credit
spreads and decreasing market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">values, when compared to the notional amount of the swap, represent a
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">deterioration of the referenced entity&#8217;s credit soundness and a greater </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">likelihood or risk
of default or other credit event occurring as defined </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under the terms of the agreement. For credit default swaps on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset-backed securities and credit indexes, the quoted market prices and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">resulting values, as well as the
annual payment rate, serve as an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indication of the current status of the payment/performance risk.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Credit default swaps involve greater risks than if the Fund had invested </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the reference obligation directly since, in addition to general market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks, credit default swaps are
subject to illiquidity risk, counterparty risk </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and credit risk, among other risks associated with derivative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments. A buyer generally also will lose the upfront and/or periodic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments it made for the swap and
recover nothing should no credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event occur and the swap is held to its termination date. If a credit event </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">were to occur, the value of any deliverable obligation received by the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">31&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_11"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">seller, coupled with the upfront or periodic payments previously </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">received, may be less than the full notional
value it pays to the buyer, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">resulting in a loss of value to the seller.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Structured Notes and Related Instruments</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in &#8220;structured&#8221; notes and other related </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments, which are privately negotiated debt obligations in which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the principal and/or interest is
determined by reference to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance of a benchmark asset, market or interest rate (an
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;embedded index&#8221;), such as selected securities, an index of securities or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specified
interest rates, or the differential performance of two assets or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">markets, such as indexes reflecting bonds. Structured instruments may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be issued by corporations, including banks, as well as by governmental </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agencies. Structured instruments
frequently are assembled in the form </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of medium-term notes, but a variety of forms are available and may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">used in particular circumstances. The terms of such structured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments normally provide that their
principal and/or interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments are to be adjusted upwards or downwards (but ordinarily not
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">below zero) to reflect changes in the embedded index while the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structured instruments are
outstanding. As a result, the interest and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal payments that may be made on a structured product may vary </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">widely, depending on a variety of factors, including the volatility of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">embedded index and the effect of
changes in the embedded index on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal and/or interest payments. The rate of return on structured </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">notes may be determined by applying a multiplier to the performance or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">differential performance of the
referenced index(es) or other asset(s). </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Application of a multiplier involves leverage that will serve to magnify </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the potential for gain and the risk of loss.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may use structured instruments for investment purposes and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also for risk management purposes, such as
to reduce the duration and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rate sensitivity of the Fund&#8217;s portfolio, and for leveraging </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purposes. While structured instruments may offer the potential for a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">favorable rate of return from time to
time, they also entail certain risks. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Structured instruments may be less liquid than other debt securities, and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the price of structured instruments may be more volatile. In some cases, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">depending on the terms of the
embedded index, a structured instrument </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may provide that the principal and/or interest payments may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adjusted below zero. Structured instruments also may involve significant </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit risk and risk of default by
the counterparty. Structured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments may also be illiquid. Like other sophisticated strategies, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s use of structured instruments may not work as intended. If the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the embedded index
changes in a manner other than that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expected by PIMCO, principal and/or interest payments received on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structured instrument may be substantially less than expected. Also, if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO chooses to use structured
instruments to reduce the duration of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s portfolio, this may limit the Fund&#8217;s return when having a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">longer duration would be beneficial (for instance, when interest rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decline).</font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Rule 144A
Securities</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in securities that have not been registered for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">public sale, but that are eligible for purchase and sale pursuant to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rule 144A under the Securities Act. Rule
144A permits certain qualified </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">institutional buyers, such as the Fund, to trade in privately placed
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities that have not been registered for sale under the Securities Act.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Other Investment Companies</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in securities of other open- or closed-end </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment companies (including those advised
by PIMCO), including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">without limitation ETFs, to the extent that such investments are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consistent
with the Fund&#8217;s investment objective, strategies and policies </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and permissible under the 1940 Act. The Fund may invest in other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment companies (including those advised by PIMCO) to gain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broad market, sector exposure or for cash
management purposes, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including during periods when it has large amounts of uninvested cash </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(such
as the period shortly after the Fund receives the proceeds of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offering of its Common Shares) or when PIMCO believes share prices of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other investment companies offer attractive values. The Fund may invest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in certain money market funds and/or
short-term bond funds (&#8220;Central </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Funds&#8221;), to the extent permitted by the 1940 Act, the rules thereunder </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or exemptive relief therefrom. The Central Funds are registered </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment companies created for use by
certain registered investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies advised by PIMCO in connection with their cash </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management
activities. The Fund will treat its investments in other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment companies that invest primarily in types of securities in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which the Fund may invest directly as investments in such types of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities for purposes of the Fund&#8217;s
investment policies (e.g., the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment in an investment company that invests primarily in debt </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities will be treated by the Fund as an investment in a debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security). As a shareholder in an investment
company, the Fund would </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bear its ratable share of that investment company&#8217;s expenses and would </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">remain subject to payment of the Fund&#8217;s management fees and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses with respect to assets so
invested. Common Shareholders </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would therefore be subject to duplicative expenses to the extent the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund invests in other investment companies. The securities of other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment companies may be
leveraged, in which case the NAV and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market value of the investment company&#8217;s shares will be more volatile </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than unleveraged investments. See &#8220;Principal Risks of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8212;Leverage Risk.&#8221;</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Regulatory changes adopted by the SEC concerning investments by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">registered investment companies in the securities of other registered </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment companies may, among other
things, limit investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">flexibility and could affect the Fund&#8217;s ability to utilize the Central Funds. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">This could adversely impact the Fund&#8217;s investment strategies and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations. The &#8220;Investment
Objective and Policies - Regulatory Risk&#8221; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">section in the Statement of Additional Information discusses these </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changes in further detail.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:right;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">32</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_12"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Repurchase
Agreements</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may enter into repurchase agreements, in which the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchases a security from a bank or broker-dealer and the bank or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broker-dealer agrees to repurchase the
security at the Fund&#8217;s cost plus </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest within a specified time. If the party agreeing to repurchase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">should default, the Fund would seek to sell the securities which it holds. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">This could involve costs or delays
in addition to a loss on the securities if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their value should fall below their repurchase price.&nbsp; Repurchase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements maturing in more than seven days are considered to be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">illiquid securities.&nbsp;See
&#8220;Principal Risks of the Fund&#8212;Repurchase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Agreements Risk.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">When-Issued, Delayed Delivery and Forward Commitment
</font><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Transactions</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase securities that it is eligible to purchase on a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">when-issued basis, may purchase and sell such securities for delayed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivery and may make contracts to
purchase such securities for a fixed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">price at a future date beyond normal settlement time (forward
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitments). When-issued transactions, delayed delivery purchases </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and forward commitments
involve a risk of loss if the value of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities declines prior to the settlement date. This risk is in addition to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the risk that the Fund&#8217;s other assets will decline in value. Therefore, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these transactions may result in
a form of leverage and increase the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s overall investment exposure. When the Fund has sold a security </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on a when-issued, delayed delivery or forward commitment basis, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund does not participate in future gains
or losses with respect to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security. If the other party to a transaction fails to pay for the securities, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund could suffer a loss. Additionally, when selling a security on a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">when-issued, delayed delivery or
forward commitment basis without </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">owning the security, the Fund will incur a loss if the security&#8217;s price </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appreciates in value such that the security&#8217;s price is above the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreed-upon price on the settlement
date.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Portfolio Turnover</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The length of time the Fund has held a particular security is not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally a consideration in investment decisions. A change in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities held by the Fund is known as
&#8220;portfolio turnover.&#8221; The Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may engage in frequent and active trading of portfolio securities to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">achieve its investment objective, particularly during periods of volatile </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market movements. High portfolio
turnover (e.g., over 100%) generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involves correspondingly greater expenses to the Fund, including </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">brokerage commissions or dealer mark-ups and other transaction costs </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on the sale of securities and
reinvestments in other securities. Sales of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio securities may also result in realization of taxable capital gains, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including short-term capital gains (which are generally treated as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ordinary income upon distribution in the
form of dividends). The trading </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">costs and tax effects associated with portfolio turnover may adversely </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect the Fund&#8217;s performance.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Use of Leverage</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund currently utilizes leverage principally through its outstanding </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares and floating rate notes issued in TOB transactions. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may also enter into transactions other than those noted above </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that may give rise to a form of leverage including, among others, futures </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and forward contracts (including foreign currency exchange contracts), </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">total return swaps and other derivative
transactions, loans of portfolio </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities, short sales, when-issued, delayed delivery and forward
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">commitment transactions and selling credit default swaps. The Fund </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may also determine to issue
other types of Preferred Shares or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">determine to decrease the leverage it currently maintains by redeeming </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">its outstanding Preferred Shares or unwinding TOBs and may or may not </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">determine to replace such leverage
through other sources.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Depending upon market conditions and other factors, the Fund may or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may not determine to add leverage
following an offering to maintain or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase the total amount of leverage (as a percentage of the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total assets) that the Fund currently maintains, taking into account the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional assets raised through the
issuance of Common Shares in such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offering. The Fund may utilize opportunistically and may choose to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase or decrease, or eliminate entirely, its use of such leverage over </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time and from time to time based on
PIMCO&#8217;s assessment of the yield </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">curve environment, interest rate trends, market conditions and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">factors. The Fund may also determine to decrease the leverage it </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">currently maintains by redeeming its
outstanding Preferred Shares or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unwinding TOBs and may or may not determine to replace such leverage </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through other sources. If the Fund determines to add leverage following </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an offering, it is not possible to
predict with accuracy the precise </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount of leverage that would be added, in part because it is not
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possible to predict the number of Common Shares that ultimately will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be sold in an offering or
series of offerings. To the extent that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">does not add additional leverage following an offering, the Fund&#8217;s total </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount of leverage as a percentage of its total assets will decrease, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could result in a reduction of
investment income available for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution to Common Shareholders.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under the 1940 Act, the Fund is not permitted to issue Preferred Shares </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unless immediately after such issuance the value of the Fund&#8217;s total net </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets (as defined below) is at
least 200% of the liquidation value of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the outstanding Preferred Shares plus the aggregate amount of any </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">senior securities of the Fund representing indebtedness (i.e., such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidation value plus the aggregate
amount of senior securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">representing indebtedness may not exceed 50% of the Fund&#8217;s total net </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets). In addition, the Fund is not permitted to declare any cash </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividend or other distribution on its
Common Shares unless, at the time </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of such declaration, the value of the Fund&#8217;s total net assets satisfies the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">above-referenced 200% coverage requirement.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is subject to the 1940 Act requirement that an investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">company satisfy an asset coverage requirement of 300% of its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indebtedness measured at the time the investment
company incurs the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indebtedness. This means that at any given time the value of the Fund's </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total
indebtedness may not exceed one-third the value of its total assets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(including assets attributable to such leverage). The interests of persons </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with whom the Fund enters into leverage arrangements will not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">necessarily be aligned with the interests of the
Fund's shareholders and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such persons will have claims on the Fund's assets that are senior to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those of the Fund's shareholders.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">33&#8194;&#8194;Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal
Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_13">
</A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may enter into derivatives or other transactions that may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provide leverage (other than through the
issuance of Preferred Shares or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bank borrowing). The Derivatives Rule regulates a registered investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">company's use of derivatives and certain other transactions that create </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">future payment and/or delivery
obligations by the Fund. This new rule </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">became operative in August 2022. The Derivatives Rule prescribes </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specific VaR leverage limits that apply to the Fund (although the Fund in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the future could qualify as a
limited derivatives user (as defined in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Derivatives Rule) and would therefore not be subject to all of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements of the Derivatives Rule)). VaR is an estimate of potential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">losses on an instrument or portfolio
over a specified time horizon and at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a given confidence level. The Fund may apply a relative VaR test or an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">absolute VaR test (if the Fund's derivatives risk manager determines that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a designated reference portfolio
would not provide an appropriate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reference portfolio for purposes of the relative VaR test). The limit under </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the relative VaR test when a fund has outstanding preferred shares is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">250% (or 200% when no preferred shares
are outstanding) of the VaR </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of a designated reference portfolio, which, very generally, may be a
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">designated unleveraged index or a fund's securities portfolio excluding </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives. If
applicable, the limit under the absolute VaR test when a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fund has outstanding preferred shares is 25% (or 20% when no </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred shares are outstanding) of the value of a fund's net assets. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Derivatives Rule also generally
requires the Fund to appoint a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives risk manager, maintain a derivatives risk management
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">program (&#8220;DRMP&#8221;) designed to identify, assess, and reasonably </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manage the risks
associated with transactions covered by the rule, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">abide by certain board and other reporting obligations and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recordkeeping requirements. With respect to reverse repurchase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements or other similar financing
transactions in particular, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Derivatives Rule permits a fund to enter into such transactions if the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fund either (i) complies with the asset coverage requirements of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Section 18 of the 1940 Act, and combines the
aggregate amount of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indebtedness associated with all reverse repurchase agreements and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar
financing with the aggregate amount of any other senior </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities representing indebtedness when calculating the relevant asset </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coverage ratio, or (ii) treats all reverse repurchase agreements and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar financing transactions (including
TOB financings (&#8220;TOB </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financings&#8221;)) as derivatives transactions for all purposes under the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Derivatives Rule. The Fund has adopted procedures for investing in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives and other transactions in
compliance with the Derivatives </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rule. Compliance with the Derivatives Rule could adversely affect the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value or performance of the Fund. Limits or restrictions applicable to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties or issuers, as
applicable, with which the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">engage in derivative transactions could also limit or prevent the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from using certain instruments.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund&#8217;s ability to utilize leverage is also limited by asset coverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements and other guidelines imposed by rating agencies (currently </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s and Fitch) that provide ratings for the Preferred Shares, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are more restrictive than the
limitations imposed by the 1940 Act noted </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">above. See &#8220;Description of Capital Structure&#8221; for more information.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Leveraging is a
speculative technique and there are special risks and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">costs involved. The Fund cannot assure you that its use of Preferred </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares and any other forms of leverage (such as TOBs) will be successful </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or result in a higher yield on your Common Shares. If used, there can be </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">no assurance that the Fund&#8217;s leveraging strategies will result in a higher </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">yield on your Common Shares.
When leverage is used, the NAV and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">market price of the Common Shares and the yield to Common
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Shareholders will be more volatile. See &#8220;Principal Risks of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund&#8212;Leverage
Risk.&#8221; In addition, dividend, interest and other costs </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and expenses borne by the Fund with respect to its use of The Fund also </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may borrow money in order to repurchase its shares or as a temporary </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">measure for extraordinary or emergency
purposes, including for the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">payment of dividends or the settlement of securities transactions which
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">otherwise might require untimely dispositions of portfolio securities held </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">by the Fund. Leverage
transactions pursued by the Fund may increase its </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">duration and sensitivity of the value of the Fund&#8217;s portfolio to interest </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">rate movements.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund also may borrow
money in order to repurchase its shares or as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a temporary measure for extraordinary or emergency purposes, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including for the payment of dividends or the settlement of securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions which otherwise might
require untimely dispositions of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio securities held by the Fund.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Effects of Leverage</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
following table is furnished in response to requirements of the SEC. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">It is designed to illustrate the effects of leverage through the use of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">senior securities, as that term is defined under Section 18 of the 1940 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Act, on Common Share total return,
assuming investment portfolio total </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">returns (consisting of income and changes in the value of investments </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">held in the Fund&#8217;s portfolio) of -10%, -5%, 0%, 5% and 10%. The table </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">below assumes the Fund&#8217;s
continued use of Preferred Shares averaged </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">over the year ended December 31, 2022, representing approximately [ </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">]% of the Fund&#8217;s total managed assets, and, although not senior </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities under the 1940 Act, the
Fund&#8217;s use of TOBs averaged over the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">year ended December 31, 2022, representing approximately [ ]% of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s total average managed assets. The table below also assumes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the Fund will pay dividends on
Preferred Shares at an estimated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">annual effective Preferred Share dividend rate of [ ]% for ARPS and [ ]% </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for RVMTP (as of December 31, 2022) and interest on TOBs at an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">estimated annual effective interest expense
rate of [ ]% (as of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">December 31, 2022). Based on such estimates, the annual return that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the
Fund&#8217;s portfolio must experience (net of expenses) in order to cover </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such costs is [ ]%. The information below does not reflect any Fund&#8217;s use </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of certain other forms of economic leverage achieved through the use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other instruments or transactions not
considered to be senior securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under the 1940 Act, such as covered credit default swaps or other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivative instruments.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The assumed investment portfolio returns in the table below are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hypothetical figures and are not necessarily indicative of the investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio returns experienced or
expected to be experienced by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund. Your actual returns may be greater or less than those appearing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">below. In addition, the actual Preferred Share dividend rate and the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">actual borrowing expenses associated with
TOBs (or other forms of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage, if any) used by the Fund may vary frequently and may be
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly higher or lower than the rates used for the example below.</font><font style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div>
</div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">34</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_14"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt;" cellpadding="0" cellspacing="0">
<tr style="height:21.5pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:72.25pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Assumed Portfolio Total </font></div> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Return</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:42.24pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:4.00pt;margin-right:4.00pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-right:-2.5pt;">(10.00)%</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:38.64pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:4.00pt;margin-right:4.00pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-right:-2.5pt;">(5.00)%</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.76pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:4.00pt;margin-right:4.00pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">0.00%</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.76pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:4.00pt;margin-right:4.00pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">5.00%</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.36pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:2pt;margin-right:1pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">10.00%</font></div> </div> </td> </tr>
<tr style="height:16pt;">
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:72.25pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Common Share Total </font></div> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Return</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:42.24pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:4.00pt;margin-right:4.00pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:7.2pt;">[</font><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:17.05pt;"> ]%</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:38.64pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:4.00pt;margin-right:4.00pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:3.6pt;">[</font><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:17.05pt;"> ]%</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:34.76pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:4.00pt;margin-right:4.00pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:1.66pt;">[</font><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:15.11pt;"> ]%</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:34.76pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:4.00pt;margin-right:4.00pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:1.66pt;">[</font><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:15.11pt;"> ]%</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:37.36pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:2pt;margin-right:1pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:5.26pt;">[</font><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:15.11pt;"> ]%</font></div> </div> </td> </tr> </table> </div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Share total return is composed of two elements&#8212;the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Share dividends paid by the Fund (the amount of which is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">largely determined by the net investment
income of the Fund after </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">paying dividends on Preferred Shares and expenses on any forms of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage outstanding, including TOBs) and gains or losses on the value </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the securities and
other instruments the Fund owns. As required by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">SEC rules, the table assumes that the Fund is more likely to suffer capital </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">losses than to enjoy capital appreciation. For example, to assume a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio total return of 0%, the Fund
must assume that the income it </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">receives on its investments is entirely offset by losses in the value of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those investments. This table reflects hypothetical performance of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s portfolio and not the
actual performance of the Fund&#8217;s Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares, the value of which is determined by market forces and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">factors.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Should the Fund elect to add additional leverage to its portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">following an offering, any benefits of such
additional leverage cannot </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be fully achieved until the proceeds resulting from the use of such
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage have been received by the Fund and invested in accordance </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the Fund&#8217;s
investment objective and policies. As noted above, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s willingness to use additional leverage, and the extent to which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage is used at any time, will depend on many factors, including, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">among other things, PIMCO&#8217;s
assessment of the yield curve </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">environment, interest rate trends, market conditions and other factors.</font></div>
<div style="line-height:14.0pt;margin-top:10.0pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Principal Risks of the Fund</font></div>
<div style="line-height:12.0pt;margin-top:2.0pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is subject to the principal risks noted below, whether through </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s direct investments or derivatives positions.</font></div> <div style="line-height:12.0pt;margin-top:10.0pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Market Discount Risk</font></div>
<div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The price of the Fund&#8217;s Common Shares will fluctuate with market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions and other factors. If you sell your Common Shares, the price </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">received may be more or less than your
original investment. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares are designed for long-term investors and should not be
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">treated as trading vehicles. Shares of closed-end management </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment companies frequently
trade at a discount from their NAV. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares may trade at a price that is less than the offering price </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for Common Shares issued pursuant to an offering. This risk may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater for investors who sell their Common
Shares relatively shortly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">after completion of an offering. The sale of Common Shares by the Fund
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(or the perception that such sales may occur), particularly if sold at a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">discount to the then
current market price of the Common Shares, may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have an adverse effect on the market price of the Common Shares.</font></div>
<div style="line-height:12.0pt;margin-top:10.0pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Market Risk</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The market price of securities owned by the Fund may go up or down, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sometimes rapidly or unpredictably.
Securities may decline in value due </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to factors affecting securities markets generally or particular industries </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">represented in the securities markets. The value of a security may decline </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">due to general market conditions that are not specifically related to a </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">particular company, such as real or perceived adverse economic </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">conditions, changes in the general outlook for
corporate earnings, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">changes in interest or currency rates, adverse changes to credit markets </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or
adverse investor sentiment generally. The value of a security may also </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">decline due to factors that affect a particular industry or industries, such </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">as labor shortages or increased production costs and competitive </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">conditions within an industry.&nbsp;During a
general downturn in the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities markets, multiple asset classes may decline in value
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">simultaneously. Equity securities generally have greater price volatility </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">than fixed income
securities. Credit ratings downgrades may also </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">negatively affect securities held by the Fund. Even when markets </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">perform well, there is no assurance that the investments held by the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund will increase in value along with
the broader market.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, market risk includes the risk that geopolitical and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events will disrupt the economy on a national or global level. For </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instance, war, terrorism, market
manipulation, government defaults, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government shutdowns, political changes or diplomatic developments, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">public health emergencies (such as the spread of infectious diseases, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pandemics and epidemics) and
natural/environmental disasters can all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">negatively impact the securities markets, which could cause the Fund to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lose value. These events could reduce consumer demand or economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">output, result in market closures, travel
restrictions or quarantines, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly adversely impact the economy. The current contentious </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">domestic political environment, as well as political and diplomatic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events within the United States and
abroad, such as presidential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">elections in the United States or abroad or the U.S. government&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">inability at times to agree on a long-term budget and deficit reduction </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">plan, has in the past resulted, and
may in the future result, in a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government shutdown or otherwise adversely affect the U.S. regulatory </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">landscape, the general market environment and/or investor sentiment, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could have an adverse impact on the
Fund&#8217;s investments and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations. Additional and/or prolonged U.S. federal government
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shutdowns may affect investor and consumer confidence and may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely impact financial markets
and the broader economy, perhaps </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">suddenly and to a significant degree. Governmental and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quasi-governmental authorities and regulators throughout the world </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have previously responded to
serious economic disruptions with a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">variety of significant fiscal and monetary policy changes, including but </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not limited to, direct capital infusions into companies, new monetary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">programs and dramatically lower interest
rates. An unexpected or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sudden reversal of these policies, or the ineffectiveness of these policies, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could increase volatility in securities markets, which could adversely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect the Fund&#8217;s investments.
Any market disruptions could also prevent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund from executing advantageous investment decisions in a timely </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manner.&nbsp;Funds that have focused their investments in a region enduring </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">geopolitical market disruption, it
will face higher risks of loss. Thus, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investors should closely monitor current market conditions to determine </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">whether the Fund meets their individual financial needs and tolerance </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for risk.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Recently, inflation levels have been at their highest point in nearly </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">40 years and the Federal Reserve has begun an aggressive campaign to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">raise certain benchmark interest rates in
an effort to combat inflation. </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">35&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_15"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">During any periods of rising inflation, fixed income securities markets </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may experience heightened levels of
interest rate, volatility and liquidity </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">risk. Any interest rate increases in the future could cause the value of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">any fund, such as the Fund, that invests in fixed income securities to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">decrease.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Exchanges and securities markets may close early, close late or issue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">trading halts on specific securities, which may result in, among other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">things, the Fund being unable to buy or
sell certain securities or financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments at an advantageous time or accurately price its portfolio </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Municipal
Bond Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investing in the municipal bond market involves the risks of investing in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt securities generally and certain other risks. The amount of public </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information available about the
municipal bonds in which a fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest is generally less than that for corporate equities or bonds, and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment performance of the Fund's investment in municipal bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may therefore be more dependent on the
analytical abilities of PIMCO </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than its investments in taxable bonds. The secondary market for
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds also tends to be less well developed or liquid than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">many other securities
markets, which may adversely affect a fund's </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to sell municipal bonds at attractive prices.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The ability of municipal issuers to make timely payments of interest and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal may be diminished during general economic downturns, by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">litigation, legislation or political events,
or by the bankruptcy of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer. Laws, referenda, ordinances or regulations enacted in the future </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by Congress or state legislatures or the applicable governmental entity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could extend the time for payment of
principal and/or interest, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impose other constraints on enforcement of such obligations, or on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability of municipal issuers to levy taxes. Issuers of municipal securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also might seek protection under
the bankruptcy laws. In the event of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bankruptcy of such an issuer, the Fund could experience delays in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collecting principal and interest and the Fund may not, in all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">circumstances, be able to collect all principal
and interest to which it is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entitled. To enforce its rights in the event of a default in the payment of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest or repayment of principal, or both, the Fund may take </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possession of and manage the assets securing
the issuer&#8217;s obligations </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on such securities, which may increase the Fund&#8217;s operating expenses. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Adverse economic, business, legal or political developments might affect </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">all or a substantial portion of the
Fund&#8217;s municipal bonds in the same </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manner. The Fund will be particularly subject to these risks to the extent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that it focuses its investments in municipal bonds in a particular state or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">geographic region.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest
in trust certificates issued in TOB programs. In </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these programs, a trust typically issues two classes of certificates and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">uses the proceeds to purchase municipal securities having relatively </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">long maturities and bearing interest at a
fixed interest rate substantially </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher than prevailing short-term tax-exempt rates. There is a risk that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund will not be considered the owner of a TOB for federal income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tax purposes, and thus will not be
entitled to treat such interest as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exempt from federal income tax. Certain TOBs may be less liquid or may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">become less liquid as a result of, among other things, a credit rating </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">downgrade, a payment default or a disqualification from tax-exempt </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">status. The Fund&#8217;s investment in the securities issued by a TOB trust may </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">involve greater risk and
volatility than an investment in a fixed rate </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">bond, and the value of such securities may decrease significantly when </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">market interest rates increase. TOB trusts could be terminated due to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">market, credit or other events beyond
the Fund&#8217;s control, which could </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">require the Fund to dispose of portfolio investments at inopportune </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">times and prices. The Fund may use a TOB program as a way of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">achieving leverage in its portfolio, in which
case the Fund will be subject </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to leverage risk. The use of TOBs typically will increase the Fund&#8217;s </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">duration and cause the Fund to be subject to increased duration and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">interest rate risk.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in revenue bonds, which are typically issued to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fund a wide variety of capital projects including electric, gas, water and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sewer systems; highways, bridges
and tunnels; port and airport facilities; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">colleges and universities; and hospitals. Because the principal security </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for a revenue bond is generally the net revenues derived from a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">particular facility or group of facilities or,
in some cases, from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds of a special excise or other specific revenue source, there is no
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">guarantee that the particular project will generate enough revenue to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pay its obligations, in
which case the Fund&#8217;s performance may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affected.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in taxable municipal bonds, such as Build America </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bonds. Build America Bonds are tax
credit bonds created by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">American Recovery and Reinvestment Act of 2009, which authorized
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">state and local governments to issue Build America Bonds as taxable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds in 2009 and 2010,
without volume limitations, to finance any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital expenditures for which such issuers could otherwise issue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">traditional tax-exempt bonds. The Fund&#8217;s investments in Build America </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bonds or similar taxable municipal
bonds will result in taxable income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the Fund may elect to pass through Common Shareholders the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">corresponding tax credits. Such tax credits can generally be used to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offset federal income taxes
and the alternative minimum tax, but such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credits are generally not refundable. Taxable municipal bonds involve </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar risks as tax-exempt municipal bonds, including credit and market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in participations in lease obligations or installment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase contract obligations of municipal authorities or entities. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although a municipal lease obligation does
not constitute a general </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation of the municipality for which the municipality's taxing power
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is pledged, a municipal lease obligation is ordinarily backed by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipality's covenant to
budget for, appropriate and make the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments due under the municipal lease obligation. However, certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal lease obligations contain &#8220;non-appropriation&#8221; clauses, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provide that the
municipality has no obligation to make lease or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">installment purchase payments in future years unless money is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appropriated for such purpose on a yearly basis. In the case of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;non-appropriation&#8221; lease, the
Fund's ability to recover under the lease </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the event of non-appropriation or default will be limited solely to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repossession of the leased property, without recourse to the general </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit of the lessee, and the disposition
or re-leasing of the property </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">might prove difficult.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">36</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_16"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipal securities are
also subject to interest rate, credit, and liquidity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk, which are discussed generally elsewhere in this section, and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">elaborated upon below with respect to municipal bonds.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Interest Rate Risk</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The value of municipal securities, similar to other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fixed income securities, will likely drop as interest rates rise in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">general market. Conversely, when rates
decline, bond prices generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rise.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Credit Risk</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The risk that a borrower may be unable to make interest or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal payments when they are due. A fund that invests in municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities relies on the ability of the
issuer to service its debt.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">This subjects the Fund to credit risk in that the municipal issuer may be
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fiscally unstable or exposed to large liabilities that could impair its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to honor its
obligations. Municipal issuers with significant debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service requirements, in the near-to mid-term; unrated issuers and those </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with less capital and liquidity to absorb additional expenses may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">most at risk. To the extent the Fund
invests in lower quality or high yield </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal securities, it may be more sensitive to the adverse credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events in the municipal market. The treatment of municipalities in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bankruptcy is more uncertain, and
potentially more adverse to debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders, than for corporate issues.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Liquidity Risk</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The risk that investors may have difficulty finding a buyer </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">when they seek to sell, and therefore, may be forced to sell at a discount </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the market value. Liquidity may
sometimes be impaired in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal market and because the Fund primarily invests in municipal
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, it may find it difficult to purchase or sell such securities at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">opportune times.
Liquidity can be impaired due to interest rate concerns, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit events, or general supply and demand imbalances. Depending on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the particular issuer and current economic conditions, municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities could be deemed more volatile
investments.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition to general municipal market risks, different municipal sectors </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may face different risks. For instance, general obligation bonds are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">secured by the full faith, credit, and
taxing power of the municipality </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuing the obligation. As such, timely payment depends on the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipality&#8217;s ability to raise tax revenue and maintain a fiscally sound </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">budget. The
timely payments may also be influenced by any unfunded </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pension liabilities or other post-employee benefit plan (OPEB) liabilities.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Revenue bonds are secured by special tax revenues or other revenue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sources. If the specified revenues do not materialize, then the bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may not be repaid.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Private activity bonds are yet another type of municipal security. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipalities use private activity bonds to finance the development of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industrial facilities for use by
private enterprise. Principal and interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments are to be made by the private enterprise benefitting from the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">development, which means that the holder of the bond is exposed to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the risk that the private issuer may
default on the bond.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moral obligation bonds are usually issued by special purpose public </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entities. If the public entity defaults, repayment becomes a &#8220;moral </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation&#8221; instead of a legal
one. The lack of a legally enforceable right </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to payment in the event of default poses a special risk for a holder of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the bond because it has little or no ability to seek recourse in the event </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of default.</font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, a significant
restructuring of federal income tax rates, such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as the changes to federal income tax rates that occurred in 2017, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">even serious discussion on the topic in Congress could cause municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bond prices to fall. The demand for
municipal securities is strongly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">influenced by the value of tax-exempt income to investors relative to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable income. Lower income tax rates potentially could reduce the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">advantage of owning municipal
securities.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Similarly, changes to state or federal regulation tied to a specific sector, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such as the hospital sector, could have an impact on the revenue stream </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for a given subset of the market.
Municipal notes are similar to general </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal debt obligations, but they generally possess shorter terms.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipal notes can
be used to provide interim financing and may not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be repaid if anticipated revenues are not realized.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Municipal Project-Specific Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may be more sensitive to adverse economic, business or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political developments if it invests a substantial portion of its assets in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the bonds of specific projects
(such as those relating to education, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">health care, housing, transportation, and utilities), industrial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">development bonds, or in general obligation bonds, particularly if there </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is a large concentration from issuers
in a single state. This is because the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of municipal securities can be significantly affected by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political, economic, legal, and legislative realities of the particular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer&#8217;s locality or municipal
sector events. Similarly, changes to state or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal regulation tied to a specific sector, such as the hospital sector, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could have an impact on the revenue stream for a given subset of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Municipal Project Housing &#8211; Related Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in the bonds of projects focused on low-income, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affordable or other housing developments and businesses located in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">low income areas or invest in or originate
loans that finance or are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally related to such projects. There are significant risks associated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the Fund&#8217;s investment in the bonds of these types of projects and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loans related to such projects.
There may be federal, state and local </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">governmental regulatory restrictions on the operation, rental and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transfer of these projects, such as the requirement that the owners of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these affordable housing developments
rent or sell certain residential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">units to persons or families of low or moderate income and that the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount of rent that may be charged for these units may be less than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market rates. These restrictions may
adversely affect economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance relative to properties that are not subject to these
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restrictions. There are also no assurances that a project owner will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">able to achieve and
maintain sufficient rental income in order to pay all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operating expenses and maintenance and repair costs of such a project </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the debt service on the related bonds or loan on a timely basis. In </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the event that a project owner is
unable to pay all such costs, expenses </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and debt service, a default on the related bonds or loan is likely to occur.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">37&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_17"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Loans and Other Indebtedness; Loan Participations and </font><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Assignments
Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loan interests may take the form of (i) direct interests acquired during a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">primary distribution or other purchase of a loan, (ii) loans originated by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund or (iii) assignments of,
novations of or participations in all or a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portion of a loan acquired in secondary markets. In addition to credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk and interest rate risk, the Fund&#8217;s exposure to loan interests may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to additional risks.
For example, purchasers of loans and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">forms of direct indebtedness depend primarily upon the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness of the borrower for payment of principal and interest. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loans are subject to the
risk that scheduled interest or principal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments will not be made in a timely manner or at all, either of which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may adversely affect the value of the loan. If the Fund does not receive </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">scheduled interest or principal
payments on such indebtedness, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s share price and yield could be adversely affected. Loans that are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fully secured may offer the Fund more protection than an unsecured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loan in the event of non-payment of
scheduled interest or principal if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund is able to access and monetize the collateral. However, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral underlying a loan, if any, may be unavailable or insufficient to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">satisfy a borrower&#8217;s
obligation. If the Fund becomes owner, whole or in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">part, of any collateral after a loan is foreclosed, the Fund may incur costs </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with owning and/or monetizing its ownership of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moreover, the
purchaser of an assignment typically succeeds to all the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rights and obligations under the loan agreement with the same rights </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and obligations as the assigning lender. Assignments may, however, be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">arranged through private negotiations
between potential assignees and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">potential assignors, and the rights and obligations acquired by the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchaser of an assignment may differ from, and be more limited than, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those held by the assigning
lender.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In connection with purchasing loan participations, the Fund generally </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will have no right to enforce compliance by the borrower with the terms </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the loan agreement relating to the
loan, nor any rights of set-off </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">against the borrower, and the Fund may not directly benefit from any </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral supporting the loan in which it has purchased the loan </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participation. As a result, the Fund will be
subject to the credit risk of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">both the borrower and the lender that is selling the participation. In the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event of the insolvency of the lender selling a participation, the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be treated as a general creditor
of the lender and may not benefit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from any set-off between the lender and the borrower. Certain loan </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participations may be structured in a manner designed to prevent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchasers of participations from being
subject to the credit risk of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lender, but even under such a structure, in the event of the lender&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">insolvency, the lender&#8217;s servicing of the participation may be delayed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the assignability of the
participation impaired.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may have difficulty disposing of loans and loan participations.
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Because there is no liquid market for many such investments, the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">anticipates that such
investments could be sold only to a limited number </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of institutional investors. The lack of a liquid secondary market may have </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an adverse impact on the value of such investments and the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to dispose of particular loans
and loan participations when that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would be desirable, including in response to a specific economic event </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such as a deterioration in
the creditworthiness of the borrower. The lack </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of a liquid secondary market for loans and loan participations also may </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">make it more difficult for the Fund to assign a value to these securities </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">for purposes of valuing the
Fund&#8217;s portfolio. Investments in loans may </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">include participations in bridge loans, which are loans taken out by </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">borrowers for a short period (typically less than one year) pending </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">arrangement of more permanent financing
through, for example, the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">issuance of bonds frequently high yield bonds issued for the purpose of
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">acquisitions.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To the extent
the Fund invests in loans or originates loans, the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be subject to greater levels of credit risk, call risk, settlement risk and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity risk. These instruments are considered predominantly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative with respect to an issuer&#8217;s
continuing ability to make </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal and interest payments and may be more volatile than other
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">types of securities. The Fund may also be subject to greater levels of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity risk than funds
that do not invest in loans. In addition, the loans </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in which the Fund invests may not be listed on any exchange and a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">secondary market for such loans may be comparatively illiquid relative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to markets for other more liquid fixed
income securities. Consequently, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions in loans may involve greater costs than transactions in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more actively traded securities. In connection with certain loan </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions, transaction costs that are
borne by the Fund may include </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the expenses of third parties that are retained to assist with reviewing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and conducting diligence, negotiating, structuring and servicing a loan </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transaction, and/or providing other
services in connection therewith. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Furthermore, the Fund may incur such costs in connection with loan </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions that are pursued by the Fund but not ultimately </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consummated (so-called &#8220;broken deal
costs&#8221;).</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Restrictions on transfers in loan agreements, a lack of publicly available </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information, irregular trading activity and wide bid/ask spreads, among </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other factors, may, in certain
circumstances, make loans more difficult to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sell at an advantageous time or price than other types of securities or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments. These factors may result in the Fund being unable to realize </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">full value for the loans and/or may
result in the Fund not receiving the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds from a sale of a loan for an extended period after such sale, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">each of which could result in losses to the Fund. Some loans may have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">extended trade settlement periods,
including settlement periods of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater than seven days, which may result in cash not being
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">immediately available to the Fund. If an issuer of a loan prepays or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">redeems the loan prior to
maturity, the Fund may have to reinvest the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds in other loans or similar instruments that may pay lower </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rates. Because of the risks involved in investing in loans, an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment in the Fund should be
considered speculative.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investments in subordinated and unsecured loans generally
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are subject to similar risks as those associated with investments in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">secured loans. Subordinated
or unsecured loans are lower in priority of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment to secured loans and are subject to the additional risk that the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cash flow of the borrower and property securing the loan or debt, if any, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be insufficient to meet
scheduled payments after giving effect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the senior secured obligations of the borrower. This risk is generally </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher for subordinated unsecured loans or debt, which are not backed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by a security interest in any specific
collateral. Subordinated and </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">38</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_18"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">unsecured loans generally
have greater price volatility than secured </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">loans and may be less liquid. There is also a possibility that originators </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">will not be able to sell participations in subordinated or unsecured </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">loans, which would create greater credit
risk exposure for the holders of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such loans. Subordinate and unsecured loans share the same risks as </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">other below investment grade securities.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">There may be less readily available information about most loans and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the underlying borrowers than is the case for many other types of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. Loans may be issued by borrowers
that are not subject to SEC </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reporting requirements and therefore may not be required to file reports </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the SEC or may file reports that are not required to comply with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">SEC form requirements. In addition, such
borrowers may be subject to a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">less stringent liability disclosure regime than companies subject to SEC </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reporting requirements. Loans may not be considered &#8220;securities,&#8221; and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchasers, such as the
Fund, therefore may not be entitled to rely on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the anti-fraud protections of the federal securities laws. Because there is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limited public information available regarding loan investments, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund is particularly dependent on the
analytical abilities of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio managers.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Economic exposure to loan interests through the use of derivative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions may involve greater risks than if the Fund had invested in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the loan interest directly during a
primary distribution, through direct </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">originations or through assignments of, novations of or participations in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a loan acquired in secondary markets since, in addition to the risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">described above, certain derivative
transactions may be subject to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage risk and greater illiquidity risk, counterparty risk, valuation risk </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other risks.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Loan
Origination Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in and/or originate loans, including, without </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation, to, on behalf of, authorized by, sponsored by, and/or in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with a project for which
authority and responsibility lies with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more U.S. states or territories, cities in a U.S. state or territory, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political subdivisions, agencies, authorities or instrumentalities of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">states, territories or cities,
which may be in the form of whole loans, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assignments, participations, secured and unsecured notes, senior and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">second lien loans, mezzanine loans, bridge loans or similar investments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including to borrowers that are
unrated or have credit ratings that are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined by one or more NRSROs and/or PIMCO to be below
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade. This may include loans to public or private firms or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">individuals, such as in
connection with housing development projects. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The loans the Fund invests in or originates may vary in maturity and/or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">duration. The Fund is not limited in the amount, size or type of loans it </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may invest in and/or originate,
including with respect to a single </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrower or with respect to borrowers that are determined to be below </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade, other than pursuant to any applicable law. The Fund's </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment in or origination of loans
may also be limited by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements the Fund intends to observe under Subchapter M of the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Code in order to qualify as a RIC. The loans acquired by the Fund may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;municipal
bonds&#8221; (including of a particular state) for purposes of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund's investment policies or may be loans that produce income that is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to applicable regular income tax, subject to the Fund's </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment limits. The Fund may subsequently
offer such investments for </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">sale to third parties; provided, that there is no assurance that the Fund </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">will complete the sale of such an
investment. If the Fund is unable to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">sell, assign or successfully close transactions for the loans that it </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">originates, the Fund will be forced to hold its interest in such loans for </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">an indeterminate period of time.
This could result in the Fund&#8217;s </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investments having high exposure to certain borrowers. The Fund will be </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">responsible for the expenses associated with originating a loan </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(whether or not consummated). This may include
significant legal and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">due diligence expenses, which will be indirectly borne by the Fund and
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Common Shareholders.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bridge
loans are generally made with the expectation that the borrower </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will be able to obtain permanent financing in the near future. Any delay </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in obtaining permanent financing subjects the bridge loan investor to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increased risk. A borrower&#8217;s use
of bridge loans also involves the risk </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the borrower may be unable to locate permanent financing to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">replace the bridge loan, which may impair the borrower&#8217;s perceived </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Loan origination and servicing companies are routinely involved in legal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceedings concerning matters that arise in the ordinary course of their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business. In addition, a number of
participants in the loan origination </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and servicing industry (including control persons of industry
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participants) have been the subject of regulatory actions by state </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulators, including state
attorneys general, and by the federal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government. Governmental investigations, examinations or regulatory </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">actions, or private lawsuits, including purported class action lawsuits, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may adversely affect such
companies&#8217; financial results. To the extent the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund engages in origination and/or servicing directly, or has a financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest in, or is otherwise affiliated with, an origination or servicing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">company, the Fund will be subject to
enhanced risks of litigation, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulatory actions and other proceedings. As a result, the Fund may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">required to pay legal fees, settlement costs, damages, penalties or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">charges, any or all of which could
materially adversely affect the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and its holdings.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">U.S. Government Securities Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Certain U.S. government securities, such as U.S. Treasury bills, notes, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds and mortgage-related securities
guaranteed by the GNMA, are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">supported by the full faith and credit of the United States; others, such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as those of the FHLBs or the FHLMC, are supported by the right of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer to borrow from the U.S. Treasury;
others, such as those of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">FNMA, are supported by the discretionary authority of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S.
government to purchase the agency&#8217;s obligations; and still others </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are supported only by the credit of the agency, instrumentality or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">corporation. Although legislation has been enacted to support certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government sponsored entities, including
the FHLBs, FHLMC and FNMA, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">there is no assurance that the obligations of such entities will be
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">satisfied in full, or that such obligations will not decrease in value or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default. It is
difficult, if not impossible, to predict the future political, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulatory or economic changes that could impact the government </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sponsored entities and the values of their related securities or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations. In addition, certain
governmental entities, including FNMA </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and FHLMC, have been subject to regulatory scrutiny regarding their </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accounting policies and practices and other concerns that may result in </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">39&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_19"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">legislation, changes in regulatory oversight and/or other consequences </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that could adversely affect the credit
quality, availability or investment </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">character of securities issued by these entities. Yields available from </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">U.S. government debt securities are generally lower than the yields </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">available from other debt securities. The
values of U.S. government </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities change as interest rates fluctuate.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Asset Allocation Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investment performance depends upon how its assets are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">allocated and reallocated. A principal risk of investing in the Fund is that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO may make less than optimal
or poor asset allocation decisions. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO employs an active approach to allocation among multiple
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fixed-income sectors, but there is no guarantee that such allocation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">techniques will produce the
desired results. It is possible that PIMCO </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will focus on an investment that performs poorly or underperforms other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments under various market conditions. You could lose money on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">your investment in the Fund as a result
of these allocation decisions.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Management Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is subject to management risk because it is an actively </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">managed investment portfolio. PIMCO and each individual portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manager will apply investment techniques and
risk analysis in making </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment decisions for the Fund, but there can be no guarantee that
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these decisions will produce the desired results. Certain securities or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other instruments in
which the Fund seeks to invest may not be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">available in the quantities desired. In addition, regulatory restrictions, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">actual or potential conflicts of interest or other considerations may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cause PIMCO to restrict or prohibit
participation in certain investments. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In such circumstances, PIMCO or the individual portfolio managers may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determine to purchase other securities or instruments as substitutes. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Such substitute securities or
instruments may not perform as intended, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could result in losses to the Fund. The Fund is also subject to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk that deficiencies in the internal systems or controls of PIMCO or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">another service provider will cause
losses for the Fund or hinder Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations. For example, trading delays or errors (both human and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">systemic) could prevent the Fund from purchasing a security expected to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appreciate in value. To the extent the
Fund employs strategies targeting </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived pricing inefficiencies, arbitrage strategies or similar strategies, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">it is subject to the risk that the pricing or valuation of the securities and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments involved in such
strategies may change unexpectedly, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may result in reduced returns or losses to the Fund. Additionally, actual </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or potential conflicts of interest, legislative, regulatory, or tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restrictions, policies or developments may
affect the investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">techniques available to PIMCO and each individual portfolio manager in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with managing the Fund and may also adversely affect the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability of the Fund to
achieve its investment objective. There also can be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no assurance that all of the personnel of PIMCO will continue to be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with PIMCO for any length of time. The loss of the services of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more key employees of PIMCO
could have an adverse impact on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s ability to realize its investment objective.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, the Fund may rely on various third-party sources to calculate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its NAV. As a result, the Fund is
subject to certain operational risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with reliance on service providers and service providers&#8217; data </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">sources. In particular,
errors or systems failures and other technological </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">issues may adversely impact the Fund&#8217;s calculations of its NAV, and such </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">NAV calculation issues may result in inaccurately calculated NAV, delays </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">in NAV calculation and/or the
inability to calculate NAV over extended </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">periods. The Fund may be unable to recover any losses associated with </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such failures.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Issuer
Risk</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The value of a security may decline for a number of reasons that directly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relate to the issuer, such as
management performance, financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage and reduced demand for the issuer&#8217;s goods or services, as well </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as the historical and prospective earnings of the issuer and the value of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its assets. A change in the
financial condition of a single issuer may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect securities markets as a whole. These risks can apply to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares issued by the Fund and to the issuers of securities and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other instruments in which the Fund
invests.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Interest Rate Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Interest rate risk is the risk that fixed income securities and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments in the Fund&#8217;s portfolio will decline in value because of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">change in interest rates. As
nominal interest rates rise, the value of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain fixed income securities held by the Fund is likely to decrease. A </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nominal interest rate can be described as the sum of a real interest rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and an expected inflation rate.
Interest rate changes can be sudden and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unpredictable, and the Fund may lose money as a result of movements </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in interest rates. The Fund may not be able to effectively hedge against </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changes in interest rates or may
choose not to do so for cost or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reasons.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A wide variety of factors can cause interest rates or yields of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. Treasury securities (or yields of other
types of bonds) to rise (e.g., </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">central bank monetary policies, inflation rates, general economic
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions). Recently, inflation levels have been at their highest point in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nearly 40 years, and
the Federal Reserve has begun an aggressive </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">campaign to raise certain benchmark interest rates in an effort to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">combat inflation. During any periods of rising inflation, fixed income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities markets may experience
heightened levels of interest, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">volatility and liquidity risk.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fixed income securities with longer durations tend to be more sensitive </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to changes in interest rates, usually
making them more volatile. Duration </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is a measure used to determine the sensitivity of a security&#8217;s price to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changes in interest rates that incorporates a security&#8217;s yield, coupon, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">final maturity and call
features, among other characteristics. Duration is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">useful primarily as a measure of the sensitivity of a fixed income </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security&#8217;s market price to interest rate (i.e., yield) movements. All other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">things remaining equal, for
each one percentage point increase in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rates, the value of a portfolio of fixed income investments would </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally be expected to decline by one percent for every year of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio&#8217;s average duration above
zero. For example, the value of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio of fixed income securities with an average duration of fourteen </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">years would generally be expected to decline by approximately 14% if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rates rose by one percentage
point.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">40</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_20"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Variable and floating rate
securities may decline in value if their interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rates do not rise as much, or as quickly, as interest rates in general. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Conversely, floating rate securities will not generally increase in value if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rates decline. Inverse
floating rate securities may decrease in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value if interest rates increase. Inverse floating rate securities may also </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exhibit greater price volatility than a fixed rate obligation with similar </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit quality. When the Fund holds
variable or floating rate securities, a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decrease (or, in the case of inverse floating rate securities, an increase) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in market interest rates will adversely affect the income received from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such securities and the NAV of the
Fund&#8217;s shares.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">During periods of very low or negative interest rates, the Fund may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unable to maintain positive returns. Very low or negative interest rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may magnify interest rate risk.
Changing interest rates, including rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that fall below zero, may have unpredictable effects on markets, may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">result in heightened market volatility and may detract from Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance to the extent the Fund is exposed
to such interest rates.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Measures such as average duration may not accurately reflect the true </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rate sensitivity of the Fund. This is especially the case if the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consists of securities with
widely varying durations. Therefore, if the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund has an average duration that suggests a certain level of interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate risk, the Fund may in fact be subject to greater interest rate risk </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than the average would suggest. This
risk is greater to the extent the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund uses leverage or derivatives in connection with the management </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Convexity is an additional
measure used to understand a security&#8217;s or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s interest rate sensitivity.&nbsp;Convexity measures the rate of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">change of duration in response to changes in interest rates. With respect </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to a security&#8217;s price, a
larger convexity (positive or negative) may imply </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more dramatic price changes in response to changing interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rates.&nbsp;Convexity may be positive or negative. Negative convexity implies </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that interest rate increases
result in increased duration, meaning </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increased sensitivity in prices in response to rising interest rates. Thus, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities with negative convexity, which may include bonds with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">traditional call features and certain
mortgage-backed securities, may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">experience greater losses in periods of rising interest rates. Accordingly, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">if the Fund holds such securities, the Fund may be subject to a greater </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk of losses in periods of rising
interest rates.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rising interest rates may result in periods of volatility and a decline in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the Fund&#8217;s fixed income investments. Further, while U.S. bond </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">markets have steadily grown over
the past three decades, dealer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;market making&#8221; ability has remained relatively stagnant. As a result, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dealer inventories of certain types of bonds and similar instruments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which provide a core indication of the
ability of financial intermediaries </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to &#8220;make markets,&#8221; are at or near historic lows in relation to market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">size. Because market makers provide stability to a market through their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intermediary services, a significant
reduction in dealer inventories could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">potentially lead to decreased liquidity and increased volatility in the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fixed income markets. Such issues may be exacerbated during periods of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">economic uncertainty. All of these
factors, collectively and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">individually, could cause the Fund to lose value.</font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Credit
Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund could lose money if the issuer or guarantor of a fixed income </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security (including a security purchased with securities lending </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral), or the counterparty to a
derivatives contract, repurchase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreement or a loan of portfolio securities, is unable or unwilling, or is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived as unable or unwilling, to make timely principal and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest payments or to otherwise honor its
obligations. The risk that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such issuer, guarantor or counterparty is less willing or able to do so is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">heightened in market environments where interest rates are rising. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downgrade of the credit of a security
held by the Fund may decrease its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value. Measures such as average credit quality may not accurately
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reflect the true credit risk of the Fund. This is especially the case if the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund consists of
securities with widely varying credit ratings. Securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are subject to varying degrees of credit risk, which are often reflected in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit ratings. This risk is greater to the extent the Fund uses leverage or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives in connection with
the management of the Fund. Municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds are subject to the risk that litigation, legislation or other political </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events, local business or economic conditions, or the bankruptcy of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer could have a significant effect
on an issuer&#8217;s ability to make </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments of principal and/or interest. Rising or high interest rates may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">deteriorate the credit quality of an issuer or counterparty, particularly if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an issuer or counterparty faces
challenges rolling or refinancing its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">High Yield Securities Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To the extent that the Fund invests in high yield securities and unrated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities of similar credit quality
(commonly known as &#8220;high yield </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities&#8221; or &#8220;junk bonds&#8221;), the Fund will be subject to greater levels of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit risk, call risk and liquidity risk than funds that do not invest in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such securities, which could have a
negative effect on the NAV and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market price of the Fund&#8217;s Common Shares or Common Share
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividends. These securities are considered predominantly speculative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with respect to an
issuer&#8217;s continuing ability to make principal and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest payments, and may be more volatile than other types of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. An economic downturn or individual corporate developments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could adversely affect the market for
these securities and reduce the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s ability to sell these securities at an advantageous time or price. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase distressed securities that are in default or the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers of which are in bankruptcy,
which involve heightened risks.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Issuers of high yield securities may have the right to
&#8220;call&#8221; or redeem </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the issue prior to maturity, which may result in the Fund having to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reinvest the proceeds in other high yield securities or similar instruments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that may pay lower
interest rates. The Fund may also be subject to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater levels of liquidity risk than funds that do not invest in high yield </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. Consequently, transactions in high yield securities may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involve greater costs than transactions in
more actively traded </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. To the extent that the Fund invests in high yield securities and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unrated securities of similar credit quality (commonly known as &#8220;high </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">yield
securities&#8221; or &#8220;junk bonds&#8221;), the Fund may be subject to greater </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">levels of credit risk, call risk and liquidity risk than funds that do not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest in such securities, which could have a negative effect on the NAV </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and market price of the Fund&#8217;s
Common Shares or Common Share </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividends. These securities are considered predominantly speculative </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">41&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_21"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">with respect to an issuer&#8217;s continuing ability to make principal and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">interest payments, and may be more
volatile than other types of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities. An economic downturn or individual corporate developments
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">could adversely affect the market for these securities and reduce the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s ability to
sell these securities at an advantageous time or price. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase distressed securities that are in default or the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">issuers of which are in bankruptcy, which involve heightened risks. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Issuers of high yield securities may have
the right to &#8220;call&#8221; or redeem </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the issue prior to maturity, which may result in the Fund having to </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reinvest the proceeds in other high yield securities or similar instruments </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that may pay lower interest rates.
The Fund may also be subject to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">greater levels of liquidity risk than funds that do not invest in high yield </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities. Consequently, transactions in high yield securities may </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">involve greater costs than transactions in
more actively traded </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities. These factors may result in the Fund being unable to realize
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">full value for these securities and/or may result in the Fund not receiving </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the proceeds from a
sale of a high yield security for an extended period </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">after such sale, each of which could result in losses to the Fund. Because </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of the risks involved in investing in high yield securities, an investment in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund should be considered
speculative.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In general, lower rated debt securities carry a greater degree of risk that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the issuer will lose its ability to make interest and principal payments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which could have a negative effect
on the Fund. Securities of below </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade quality are regarded as having predominantly
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative characteristics with respect to capacity to pay interest and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repay principal and are
commonly referred to as &#8220;high yield&#8221; securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or &#8220;junk bonds.&#8221; High yield securities involve a greater risk of default </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and their prices are generally more volatile and sensitive to actual or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived negative developments. Debt
securities in the lowest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment grade category also may be considered to possess some
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative characteristics by certain rating agencies.&nbsp;&nbsp;The Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase stressed
or distressed securities that are in default or the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers of which are in bankruptcy, which involve heightened risks.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">An economic downturn could severely affect the ability of issuers </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(particularly those that are highly leveraged) to service or repay their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt obligations. Lower-rated
securities are generally less liquid than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">higher-rated securities, which may have an adverse effect on the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to dispose of them. For example, under adverse market or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">economic conditions, the secondary market for
below investment grade </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities could contract further, independent of any specific adverse
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changes in the condition of a particular issuer, and certain securities in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s
portfolio may become illiquid or less liquid. As a result, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund could find it more difficult to sell these securities or may be able to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sell these securities only at prices lower than if such securities were </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">widely traded. To the extent the Fund
focuses on below investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">grade debt obligations, PIMCO&#8217;s capabilities in analyzing credit quality </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and associated risks will be particularly important, and there can be no </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assurance that PIMCO will be
successful in this regard. Due to the risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involved in investing in high yield securities, an investment in the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">should be considered speculative.</font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s credit quality policies apply only at the time a security is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchased, and the Fund is not required to dispose of a security in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event that a rating agency or PIMCO
downgrades its assessment of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit characteristics of a particular issue. Analysis of creditworthiness </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be more complex for issuers of high yield securities than for issuers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of higher quality debt
securities.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Reinvestment Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Income from the Fund&#8217;s portfolio will decline if and when the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests the proceeds from matured, traded or called debt obligations at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market interest rates that are below
the portfolio&#8217;s current earnings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate.&nbsp;For instance, during periods of declining interest rates, an issuer of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt obligations may exercise an option to redeem securities prior to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maturity, forcing the Fund to invest in
lower-yielding securities. The Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also may choose to sell higher yielding portfolio securities and to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase lower yielding securities to achieve greater portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">diversification, because the portfolio
managers believe the current </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holdings are overvalued or for other investment-related reasons. A
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decline in income received by the Fund from its investments is likely to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have a negative effect
on dividend levels and the market price, NAV </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or overall return of the Common Shares.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Securities Lending Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For the purpose of achieving income, the Fund may lend its portfolio </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities to brokers, dealers, and other financial institutions provided a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">number of conditions are
satisfied, including that the loan is fully </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateralized. Please see &#8220;Investment Objective and Policies&#8212;Loans of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Portfolio Securities&#8221; in the Statement of Additional Information for more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">details. When the Fund lends
portfolio securities, its investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance will continue to reflect changes in the value of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities loaned, and the Fund will also receive a fee or interest on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral. Securities lending
involves the risk of loss of rights in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral or delay in recovery of the collateral if the borrower fails to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">return the security loaned or becomes insolvent. The Fund may pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lending fees to a party arranging the loan.
Cash collateral received by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund in securities lending transactions may be invested in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term liquid fixed income instruments or in money market or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term mutual funds, or
similar investment vehicles, including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affiliated money market or short-term mutual funds. The Fund bears the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk of such investments.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Call Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Call risk
refers to the possibility that an issuer may exercise its right to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">redeem a fixed income security earlier than expected. Issuers may call </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding securities prior to their maturity for a number of reasons. If </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an issuer calls a security in which
the Fund has invested, the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not recoup the full amount of its initial investment and may be forced to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reinvest in lower-yielding securities, securities with greater credit risks or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities with other, less
favorable features.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">42</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_22"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">U.S.
Government Securities Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Certain U.S. government securities, such as U.S. Treasury bills, notes,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds and mortgage-related securities guaranteed by the GNMA, are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">supported by the full faith and
credit of the United States; others, such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as those of the FHLBs or the FHLMC, are supported by the right of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer to borrow from the U.S. Treasury; others, such as those of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">FNMA, are supported by the discretionary
authority of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. government to purchase the agency&#8217;s obligations; and still others </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are
supported only by the credit of the agency, instrumentality or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">corporation. Although legislation has been enacted to support certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government sponsored entities, including the FHLBs, FHLMC and FNMA, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">there is no assurance that the obligations
of such entities will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">satisfied in full, or that such obligations will not decrease in value or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default. It is difficult, if not impossible, to predict the future political, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulatory or
economic changes that could impact the government </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sponsored entities and the values of their related securities or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations. In addition, certain governmental entities, including FNMA </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and FHLMC, have been subject to
regulatory scrutiny regarding their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accounting policies and practices and other concerns that may result in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">legislation, changes in regulatory oversight and/or other consequences </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that could adversely affect the credit
quality, availability or investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">character of securities issued by these entities. Yields available from </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. government debt securities are generally lower than the yields </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">available from other debt securities. The
values of U.S. government </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities change as interest rates fluctuate.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">California State-Specific Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in municipal bonds issued by or on behalf of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">State of California and its political
subdivisions, financing authorities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and their agencies, and therefore may invest in municipal bonds issued </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by or on behalf of the State of California and its political subdivisions, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financing authorities and their
agencies, and therefore may be affected </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly by political, economic, regulatory, social, environmental, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">public health developments affecting the ability of California tax exempt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers to pay interest or repay
principal. Certain issuers of California </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds have experienced serious financial difficulties in the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">past and reoccurrence of these difficulties may impair the ability of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain California issuers to pay
principal or interest on their obligations. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Provisions of the California Constitution and State statutes which limit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the taxing and spending authority of California governmental entities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may impair the ability of California
issuers to pay principal and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest on their obligations. While California&#8217;s economy is broad, it does </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have major concentrations in advanced technology, aerospace and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">defense-related manufacturing, trade,
entertainment, real estate and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial services, and may be sensitive to economic problems affecting </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those industries. Future California political and economic developments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitutional amendments,
legislative measures, executive orders, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">administrative regulations, litigation and voter initiatives as well as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">environmental events, natural disasters, pandemics, epidemics or social </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unrest could have an adverse effect on
the debt obligations of California </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers.</font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">New York State-Specific Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may be affected significantly by economic, regulatory or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political developments affecting the ability of New York issuers to pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest or repay principal. Certain
issuers of New York municipal bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have experienced serious financial difficulties in the past and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reoccurrence of these difficulties may impair the ability of certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">New York issuers to pay
principal or interest on their obligations. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Provisions of the New York Constitution and State statutes which limit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the taxing and spending authority of New York governmental entities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may impair the ability of New York issuers
to pay principal and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest on their obligations. While New York&#8217;s economy is broad, it does </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have major concentrations in certain industries, such as financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">services, and may be sensitive to economic
problems affecting those </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industries. Future New York political and economic developments,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitutional amendments, legislative measures, executive orders, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">administrative regulations,
litigation and voter initiatives could have an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adverse effect on the debt obligations of New York issuers.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Puerto Rico-Specific Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may be affected significantly by economic, regulatory, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restructuring or political developments affecting the ability of Puerto </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rico issuers to pay interest or repay
principal. Certain issuers of Puerto </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rico municipal bonds have experienced serious financial difficulties in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the past and reoccurrence of these difficulties may impair the ability of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain Puerto Rico issuers to pay
principal or interest on their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations. Provisions of the Puerto Rico Constitution and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Commonwealth laws, including a federally-appointed oversight board </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to oversee the
Commonwealth&#8217;s financial operations, which limit the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxing and spending authority of Puerto Rico governmental entities may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impair the ability of Puerto Rico issuers to pay principal and/or interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on their obligations. While Puerto
Rico&#8217;s economy is broad, it does have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">major concentrations in certain industries, such as manufacturing and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service, and may be sensitive to economic problems affecting those </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industries. Future Puerto Rico political
and economic developments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitutional amendments, legislative measures, executive orders,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">administrative regulations, litigation, debt restructuring, and voter </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">initiatives could have an
adverse effect on the debt obligations of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Puerto Rico issuers.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Valuation Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Certain
securities in which the Fund invests may be less liquid and more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">difficult to value than other types of securities. Investments for which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market quotations are not readily available are valued at fair value as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determined in good faith pursuant to
Rule 2a-5 under the 1940 Act. Fair </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value pricing may require subjective determinations about the value of a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security or other asset. As a result, there can be no assurance that fair </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value pricing will result in
adjustments to the prices of securities or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets or that fair value pricing will reflect actual market value, and it is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possible that the fair value determined for a security or other asset will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be materially different from quoted
or published prices, from the prices </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">used by others for the same security or other asset and/or from the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value that actually could be or is realized upon the sale of that security </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or other asset.</font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">43&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_23"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Leverage Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund&#8217;s use of leverage (as described under &#8220;Use of Leverage&#8221; in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">body of this prospectus) creates the opportunity for increased Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Share net income, but also creates special risks for Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders. To the extent used, there is no
assurance that the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leveraging strategies will be successful. Leverage is a speculative
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">technique that may expose the Fund to greater risk and increased costs. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s assets
attributable to any outstanding Preferred Shares or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the net proceeds that the Fund obtains from its use of TOBs, derivatives </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or other forms of leverage, if any, will be invested in accordance with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s investment objective
and policies as described in this </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prospectus. Dividends payable with respect to Preferred Shares
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding and interest expense payable by the Fund with respect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any TOBs, derivatives and
other forms of leverage will generally be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">based on shorter-term interest rates that would be periodically reset. If </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shorter-term interest rates rise relative to the rate of return on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s portfolio, the interest
and other costs to the Fund of leverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(including interest expenses on TOBs and the dividend rate on any </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding Preferred Shares s, including the Preferred Shareholder </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Gross-Up (as defined below)) could exceed
the rate of return on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt obligations and other investments held by the Fund, thereby
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reducing return to Common Shareholders. Leveraging transactions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pursued by the Fund may increase
its duration and sensitivity of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the Fund's portfolio to interest rate movements. In addition, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fees and expenses of any form of leverage used by the Fund will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borne entirely by the Common Shareholders
(and not by preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholders) and will reduce the investment return of the Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares.
Therefore, there can be no assurance that the Fund&#8217;s use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage will result in a higher yield on the Common Shares, and it may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">result in losses. In addition, Preferred Shares issued by the Fund pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cumulative dividends, which may tend to
increase leverage risk. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Leverage creates several major types of risks for Common Shareholders,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including:</font></div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;">
<div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the likelihood of greater volatility of NAV and market price of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares, and of the investment return to Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders, than a comparable portfolio without
leverage;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the possibility either that Common Share dividends will fall if the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest and other costs of leverage rise, or that dividends paid on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares will fluctuate because such
costs vary over time; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the effects of leverage in a declining market or a rising interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate environment, as leverage is likely to cause a greater decline in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the NAV of the Common Shares than if the
Fund were not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leveraged and may result in a greater decline in the market value </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Common
Shares.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, the
counterparties to the Fund&#8217;s leveraging transactions and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred shareholders of the Fund will have priority of payment over </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s Common Shareholders.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is required to satisfy certain asset coverage requirements in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">connection with its use of Preferred Shares, including those imposed by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulatory and rating agency
requirements. Accordingly, any decline in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the net asset value of the Fund&#8217;s investments could result in the risk that </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund will fail to meet
its asset coverage requirements for Preferred </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Shares or the risk of the Preferred Shares being downgraded by a rating </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">agency. In an extreme case, the Fund&#8217;s current investment income might </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">not be sufficient to meet the
dividend requirements on Preferred Shares </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">outstanding. In order to address these types of events, the Fund might </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">need to liquidate investments in order to fund a redemption of some or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">all of the Preferred Shares.
Liquidations at times of adverse economic </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">conditions may result in a loss to the Fund. At other times, these </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">liquidations may result in gain at the Fund level and thus in additional </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">taxable distributions to Common
Shareholders. See &#8220;Tax Matters&#8221; for </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">more information. Any Preferred Shares, TOBs, loans of portfolio </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities, short sales and when-issued, delayed delivery and forward </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">commitment transactions, credit default
swaps, reverse repurchases, or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">other derivatives by the Fund or counterparties to the Fund&#8217;s other </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">leveraging transactions, if any, would have, seniority over the Fund&#8217;s </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Common Shares.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">When the Fund issues Preferred Shares, the Fund pays (and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shareholders bear) all costs and expenses relating to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuance and ongoing maintenance of Preferred
Shares. In addition, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders of Preferred Shares issued by the Fund would have complete </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">priority
over Common Shareholders in the distribution of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets. Furthermore, preferred shareholders, voting separately as a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">single class, have the right to elect two members of the Board at all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">times and to elect a majority of the
trustees in the event two full years&#8217; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividends on the Preferred Shares are unpaid, and also have separate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">class voting rights on certain matters. Accordingly, preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholders may have interests that differ
from those of Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders, and may at times have disproportionate influence over </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the
Fund&#8217;s affairs.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Because the fees received by the Investment Manager are based on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">average daily net asset value of the Fund (including daily net assets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">attributable to any Preferred Shares),
the Investment Manager has a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial incentive for the Fund to utilize Preferred Shares, which may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">create a conflict of interest between the Investment Manager, on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one hand, and the Common Shareholders, on
the other hand.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Short Exposure Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s short sales and short positions, if any, are subject to special </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks. A short sale involves the sale by the Fund of a security that it does </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not own with the hope of
purchasing the same security at a later date at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a lower price. The Fund may also enter into a short position through a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">forward commitment or a short derivative position through a futures </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contract or swap agreement. If the price
of the security or derivative has </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increased during this time, then the Fund will incur a loss equal to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase in price from the time that the short sale was entered into plus </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any transaction costs (i.e.,
premiums and interest) paid to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broker-dealer to borrow securities. Therefore, short sales involve the risk </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that losses may be exaggerated, potentially losing more money than the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">actual cost of the investment. By
contrast, a loss on a long position </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">arises from decreases in the value of the security and is limited by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fact that a security&#8217;s value cannot decrease below zero. By investing the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds received from selling
securities short, the Fund could be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">deemed to be employing a form of leverage, which creates special risks. </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">44</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_24"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The use of leverage may
increase the Fund&#8217;s exposure to long security </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">positions and make any change in the Fund&#8217;s NAV greater than it would </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">be without the use of leverage. This could result in increased volatility of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">returns. There is no guarantee
that any leveraging strategy the Fund </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">employs will be successful during any period in which it is employed.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In times of unusual or adverse market, economic, regulatory or political </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions, the Fund may not be able, fully or partially, to implement its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short selling strategy. Periods of
unusual or adverse market, economic, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulatory or political conditions generally may exist for long periods of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time. Also, there is the risk that the third party to the short sale or short </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">position will not fulfill its
contractual obligations, causing a loss to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Derivatives Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
use of derivative instruments involves risks different from, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possibly greater than, the risks associated with investing directly in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities and other traditional investments.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The use of derivative instruments involves risks different from, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possibly greater than, the risks
associated with investing directly in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities and other traditional investments. Derivatives are subject to a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">number of risks, including leverage risk, liquidity risk (which may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">heightened for highly-customized
derivatives), interest rate risk, market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk, credit risk, counterparty risk, tax risk, management risk, operational </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk and legal risk as well as risks arising from changes in applicable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements. They also involve the
risk of mispricing, the risk of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unfavorable or ambiguous documentation and the risk that changes in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the value of a derivative instrument may not correlate perfectly with the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underlying asset, rate
or index. If the Fund invests in a derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instrument, the Fund could lose more than the amount invested and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives may increase the volatility of the Fund, especially in unusual </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or extreme market conditions. The
Fund may be required to hold </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional cash or sell other investments in order to obtain cash to close </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">out a position and changes in the value of a derivative may also create </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">margin delivery or settlement payment
obligations for the Fund. Also, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">suitable derivative transactions may not be available in all circumstances </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and there can be no assurance that the Fund will engage in these </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions to reduce exposure to other
risks when that would be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">beneficial or that, if used, such strategies will be successful. The Fund's </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">use of derivatives may increase or accelerate the amount of taxes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payable by Common Shareholders.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">OTC derivatives are also subject to the risk that a counterparty to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transaction will not fulfill its contractual obligations to the other party, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as many of the protections
afforded to centrally-cleared derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions might not be available for OTC derivative transactions. For </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives traded on an exchange or through a central counterparty, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit risk resides with the Fund&#8217;s
clearing broker, or the clearinghouse, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rather than with a counterparty in an OTC derivative transaction. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">primary credit risk on derivatives that are exchange-traded or traded </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through a central clearing counterparty
resides with the Fund&#8217;s clearing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broker, or the clearinghouse. Participation in the markets for derivative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments involves investment risks and transaction costs to which the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may not be subject absent the
use of these strategies. The skills </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">needed to successfully execute derivative strategies may be different </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">from those needed for other types of
transactions. If the Fund incorrectly </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">forecasts the value and/or creditworthiness of securities, currencies, </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">interest rates, counterparties or other economic factors involved in a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">derivative transaction, the Fund might
have been in a better position if </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund had not entered into such derivative transaction. In evaluating </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the risks and contractual obligations associated with particular </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">derivative instruments, it is important to
consider that certain derivative </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">transactions may be modified or terminated only by mutual consent of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund and its counterparty.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Therefore, it may not be possible for the Fund to modify, terminate, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offset the Fund&#8217;s obligations or the Fund&#8217;s exposure to the risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with a derivative
transaction prior to its scheduled </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">termination or maturity date, which may create a possibility of increased </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">volatility and/or decreased liquidity to the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Because the markets for certain derivative instruments (including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">markets located in foreign countries) are
relatively new and still </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">developing, appropriate derivative transactions may not be available in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">all circumstances for risk management or other purposes. Upon the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expiration of a particular
contract, the Fund may wish to retain the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s position in the derivative instrument by entering into a similar </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contract, but may be unable to do so if the counterparty to the original </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contract is unwilling to enter into
the new contract and no other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appropriate counterparty can be found. When such markets are
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unavailable, the Fund will be subject to increased liquidity and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment risk.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may enter into opposite sides of interest rate swap and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives for the principal purpose of generating distributable gains on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the one side (characterized as
ordinary income for tax purposes) that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are not part of the Fund&#8217;s duration or yield curve management </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">strategies (&#8220;paired swap transactions&#8221;), and with a substantial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possibility that the Fund will
experience a corresponding capital loss </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and decline in NAV with respect to the opposite side transaction (to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">extent it does not have corresponding offsetting capital gains). </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Consequently, Common Shareholders may receive
distributions and owe </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tax on amounts that are effectively a taxable return of the shareholder&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment in the Fund, at a time when their investment in the Fund has </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">declined in value, which tax may be at
ordinary income rates. The tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">treatment of certain derivatives in which the Fund invests may be
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unclear and thus subject to recharacterization. Any recharacterization of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments made or
received by the Fund pursuant to derivatives </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">potentially could affect the amount, timing or character of Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions. In addition, the tax treatment of such investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">strategies may be changed by regulation or
otherwise.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">When a derivative is used as a hedge against a position that the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holds, any loss generated by the derivative generally should be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">substantially offset by gains on the hedged
investment, and vice versa. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although hedging can reduce or eliminate losses, it can also reduce or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">eliminate gains. Hedges are sometimes subject to imperfect matching </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">between the derivative and
the underlying instrument, and there can be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no assurance that the Fund&#8217;s hedging transactions will be effective. In </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such case, the Fund may lose money. The regulation of the derivatives </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">45&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_25"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">markets has increased over the past several years, and additional future </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">regulation of the derivatives markets
may make derivatives more costly, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may limit the availability or reduce the liquidity of derivatives or may </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">otherwise adversely affect the value or performance of derivatives. Any </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such adverse future developments could
impair the effectiveness or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">raise the costs of the Fund&#8217;s derivative transactions, impede the
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">employment of the Fund&#8217;s derivatives strategies, or adversely affect the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s
performance and cause the Fund to lose value.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under the Derivatives Rule, the Fund&#8217;s leverage, including through </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives exposure, is limited
through a VaR test. In addition, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Derivatives Rule may restrict the Fund&#8217;s ability to engage in certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives transactions and certain other transactions and/or increase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the cost of such transactions, which
could adversely impact the value or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance of the Fund. Limits or restrictions applicable to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties or issuers, as applicable, with which the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">engage in derivative transactions could also
limit or prevent the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from using certain instruments. See &#8220;Use of Leverage.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Credit Default Swaps Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Credit default swap agreements may involve greater risks than if the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund had invested in the reference obligation directly since, in addition </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to general market risks, credit
default swaps are subject to illiquidity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk, counterparty risk and credit risk. A buyer generally also will lose its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment and recover nothing should no credit event occur and the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swap is held to its termination date. If a
credit event were to occur, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of any deliverable obligation received by the seller (if any), </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coupled with the upfront or periodic payments previously received, may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be less than the full notional value it
pays to the buyer, resulting in a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loss of value to the seller. When the Fund acts as a seller of a credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default swap, it is exposed to many of the same risks of leverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">described herein since if an event of
default occurs, the seller must pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the buyer the full notional value of the reference obligation.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the Fund may seek to realize gains by selling credit default </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swaps that increase in value, to realize gains on selling credit default </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swaps, an active secondary market for
such instruments must exist or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund must otherwise be able to close out these transactions at
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">advantageous times. In addition to the risk of losses described above, if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no such secondary
market exists or the Fund is otherwise unable to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">close out these transactions at advantageous times, selling credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default swaps may not be profitable for the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The market for credit default swaps has become more volatile as the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness of certain counterparties
has been questioned and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downgraded. The Fund will be subject to credit risk with respect to the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties to the credit default swap contract (whether a clearing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">corporation or another
third party). If a counterparty&#8217;s credit becomes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significantly impaired, multiple requests for collateral posting in a short </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">period of time could increase the risk that the Fund may not receive </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adequate collateral. The Fund may exit
its obligations under a credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default swap only by terminating the contract and paying applicable
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">breakage fees, or by entering into an offsetting credit default swap </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">position, which may cause
the Fund to incur more losses.</font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Counterparty Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund will be subject to credit risk with respect to the counterparties </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the derivative contracts and other instruments entered into by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund or held by special purpose or structured vehicles in which the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests. In the event that the Fund
enters into a derivative transaction </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with a counterparty that subsequently becomes insolvent or becomes </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the subject of a bankruptcy case, the derivative transaction may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">terminated in accordance with its terms
and the Fund&#8217;s ability to realize </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its rights under the derivative instrument and its ability to distribute the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds could be adversely affected. If a counterparty becomes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bankrupt or otherwise fails to perform its
obligations under a derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contract due to financial difficulties, the Fund may experience significant </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delays in obtaining any recovery (including recovery of any collateral it </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">has provided to the counterparty) in
a dissolution, assignment for the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">benefit of creditors, liquidation, winding-up, bankruptcy or other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">analogous proceeding. In addition, in the event of the insolvency of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparty to a derivative
transaction, the derivative transaction </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would typically be terminated at its fair market value. If the Fund is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">owed this fair market value in the termination of the derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transaction and its claim is unsecured, the
Fund will be treated as a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">general creditor of such counterparty and will not have any claim with
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to any underlying security or asset. The Fund may obtain only a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limited recovery or may
obtain no recovery in such circumstances.&nbsp;While </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund may seek to manage its counterparty risk by transacting with a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">number of counterparties, concerns about the solvency of, or a default </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by, one large market participant could
lead to significant impairment of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity and other adverse consequences for other counterparties.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Additional Risks Associated with the Fund&#8217;s Preferred Shares</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the Fund&#8217;s ARPS ordinarily would pay dividends at rates set at </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">periodic auctions, the weekly auctions for the ARPS (and auctions for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar preferred shares issued by
closed-end funds in the U.S.) have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">failed since 2008. The dividend rates on the ARPS since that time have </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">been paid, and the Fund expects that they will continue to be paid for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the foreseeable future, at the
&#8220;maximum applicable rate.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The maximum applicable rate for the ARPS and the RVMTP Share
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Dividend Rate (as defined below) is based in part on a multiple of or a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">spread plus a reference
rate. An increase in market interest rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally, therefore, could increase substantially the dividend rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">required to be paid by the Fund to the holders of Preferred Shares, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which would increase the costs associated
with the Fund&#8217;s leverage and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reduce the Fund&#8217;s net income available for distribution to holders of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares. In addition, the multiple or spread used to calculate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the maximum applicable rate for the ARPS
and the RVMTP Share </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Dividend Rate is based in part on the credit rating assigned to the ARPS </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or
RVMTP Shares by the applicable rating agency(ies), with the multiple </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or spread generally increasing as the rating declines. Accordingly, future </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings downgrades may result in increases to the maximum applicable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate for the ARPS or to the RVMTP Share
Dividend Rate.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Therefore, it is possible that a substantial rise in market interest rates </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and/or further ratings downgrades of the Preferred Shares could, by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reducing income available for distribution
to the holders of Common </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">46</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_26"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Shares and otherwise
detracting from the Fund&#8217;s investment </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">performance, make the Fund&#8217;s continued use of Preferred Shares for </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">leverage purposes less attractive. In such case, the Fund may elect to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">redeem some or all of the Preferred
Shares outstanding, which may </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">require it to dispose of investments at inopportune times and to incur </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">losses on such dispositions. Such dispositions may adversely affect the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment performance
generally, and the resultant loss of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">leverage may materially and adversely affect the Fund&#8217;s investment </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">returns.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is also subject to
certain asset coverage tests associated with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the rating agencies that rate the Preferred Shares. Failure by the Fund to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maintain the asset coverages (or to cure such failure in a timely manner) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may require the Fund to redeem
Preferred Shares and could preclude </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund from declaring or paying any dividends or distributions to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holders of Common Shares. Failure to satisfy ratings agency asset </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coverage tests or other guidelines could
also result in the applicable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings agency downgrading its then-current ratings on the Preferred
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares, as described above. Moreover, the rating agency guidelines </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impose restrictions or
limitations on the Fund&#8217;s use of certain financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments or investment techniques that the Fund might otherwise </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">utilize in order to achieve its investment objective, which may adversely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect the Fund&#8217;s investment
performance. Rating agency guidelines may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be modified by the rating agencies in the future and such modifications </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may make such guidelines substantially more restrictive or otherwise </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">result in downgrades, which could further
negatively affect the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment performance.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The ratings agencies that have assigned ratings to the Fund&#8217;s Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares may change their rating
methodologies, perhaps substantially. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Such a change could adversely affect the ratings assigned to the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares, the dividend rates paid thereon, and the expenses </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borne by holders of Common Shares. For
instance, Fitch Ratings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">published ratings criteria relating to closed-end funds on December 4,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2020, which effectively result in a rating cap of &#8220;AA&#8221; for debt and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred stock
issued by all closed-end funds and a rating cap of &#8220;A&#8221; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for debt and preferred shares issued by (i) closed-end funds exposed to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">emerging market debt, below-investment-grade and unrated debt, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structured securities and equity, and (ii)
closed-end funds with material </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exposure to &#8220;BBB&#8221; category rated assets. On December 6, 2021, Fitch </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affirmed &#8220;AA&#8221; long-term ratings of the Fund&#8217;s RVMTP Shares. Fitch does </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not currently rate
the Fund&#8217;s ARPS. In addition, future ratings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downgrades by Moody&#8217;s or Fitch, as applicable, may result in an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase to the Fund&#8217;s Preferred Shares dividend rates.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Confidential Information Access Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In managing the Fund (and other PIMCO clients), PIMCO may from time </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to time have the opportunity to receive
material, nonpublic information </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(&#8220;Confidential Information&#8221;) about the issuers of certain investments, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including, without limitation, senior floating rate loans, other loans and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">related investments being
considered for acquisition by the Fund or held </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the Fund&#8217;s portfolio. For example, an issuer of privately placed loans </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">considered by the Fund may offer to provide PIMCO with financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information and related documentation
regarding the issuer that is not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">publicly available. Pursuant to applicable policies and procedures, </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">PIMCO may (but is not
required to) seek to avoid receipt of Confidential </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Information from the issuer so as to avoid possible restrictions on its </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">ability to purchase and sell investments on behalf of the Fund and other </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">clients to which such Confidential
Information relates. In such </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">circumstances, the Fund (and other PIMCO clients) may be
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">disadvantaged in comparison to other investors, including with respect </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to the price the Fund pays
or receives when it buys or sells an </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment. Further, PIMCO&#8217;s and the Fund&#8217;s abilities to assess the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">desirability of proposed consents, waivers or amendments with respect </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to certain investments may be
compromised if they are not privy to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">available Confidential Information. PIMCO may also determine to </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">receive such Confidential Information in certain circumstances under its </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">applicable policies and procedures.
If PIMCO intentionally or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">unintentionally comes into possession of Confidential Information, it
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may be unable, potentially for a substantial period of time, to purchase </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or sell investments to
which such Confidential Information relates.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Private Placements and Restricted
Securities&nbsp;Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A private placement involves the sale of securities that have not been </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">registered under the Securities Act or relevant provisions of applicable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-U.S. law to certain institutional
and qualified individual purchasers, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such as the Fund. In addition to the general risks to which all securities </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are subject, securities received in a private placement generally are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to strict restrictions on
resale, and there may be no liquid </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">secondary market or ready purchaser for such securities. See &#8220;Principal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Risks of the Fund &#8211; Liquidity Risk.&#8221; Therefore, the Fund may be unable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to dispose of such
securities when it desires to do so, or at the most </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">favorable time or price. Private placements may also raise valuation </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks. Restricted securities are often purchased at a discount from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market price of unrestricted
securities of the same issuer reflecting the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fact that such securities may not be readily marketable without some </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time delay. Such securities are often more difficult to value and the sale </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of such securities often requires
more time and results in higher </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">brokerage charges or dealer discounts and other selling expenses than </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">does the sale of securities trading on national securities exchanges or in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the over-the-counter markets. Until
the Fund can sell such securities into </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the public markets, its holdings may be less liquid and any sales will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">need to be made pursuant to an exemption under the Securities Act.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Inflation/Deflation Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Inflation risk is the risk that the value of assets or income from the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investments will be worth less in the future as inflation decreases </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the value of payments at
future dates. As inflation increases, the real </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the Fund&#8217;s portfolio could decline. Inflation has recently </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increased and it cannot be predicted whether it may decline. Deflation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk is the risk that prices throughout
the economy decline over time. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Deflation may have an adverse effect on the creditworthiness of issuers </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and may make issuer default more likely, which may result in a decline </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the value of the Fund&#8217;s
portfolio and Common Shares.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">47&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_27"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Regulatory Changes Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Financial entities, such as investment companies and investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">advisers, are generally subject to extensive government regulation and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intervention. Government regulation
and/or intervention may change </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the way the Fund is regulated, affect the expenses incurred directly by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund and the value of its investments, and limit and /or preclude the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s ability to achieve its
investment objective. Government </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulation may change frequently and may have significant adverse
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consequences. The Fund and the Investment Manager have historically </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">been eligible for exemptions
from certain regulations. However, there is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no assurance that the Fund and the Investment Manager will continue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to be eligible for such exemptions. Actions by governmental entities may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also impact certain instruments in
which the Fund invests.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moreover, government regulation may have unpredictable and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unintended effects. Legislative or regulatory actions to address </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perceived liquidity or other issues in fixed
income markets generally, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in particular markets such as the municipal securities market, may alter </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or impair the Fund&#8217;s ability to pursue its investment objective or utilize </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain investment strategies
and techniques.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Regulatory Risk - London Interbank Offered Rate
(&#8220;LIBOR&#8221;)</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund's investments (including, but not limited to, repurchase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements, collateralized loan obligations and mortgage-backed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities), payment obligations and financing
terms may rely in some </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fashion on the London Interbank Offered Rate (&#8220;LIBOR&#8221;). LIBOR is an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">average interest rate that banks charge one another for the use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term money as determined by LIBOR's
administrator, the ICE </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Benchmark Administration (&#8220;IBA&#8221;). On July 27, 2017, the UK Financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Conduct Authority (&#8220;FCA&#8221;) announced that after 2021 it would cease </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its active encouragement of
banks to provide the quotations needed to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sustain LIBOR due to the absence of an active market for interbank </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unsecured lending and other reasons. The IBA ceased publication of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">most LIBOR settings on a representative
basis at the end of 2021 and is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expected to cease publication of a majority of U.S. dollar LIBOR settings </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on a representative basis after June 30, 2023. In addition, global </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulators have announced that, with
limited exceptions, no new </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">LIBOR-based contracts should be entered into after 2021. It is possible
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the FCA may compel (and in some cases, has already compelled) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the IBA to publish a subset of
LIBOR settings after these dates on a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;synthetic&#8221; basis, but any such publications would be considered </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-representative of the underlying market and are intended solely for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">use on a limited basis for legacy
transactions. Actions by regulators have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">resulted in the establishment of alternative reference rates in most </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">major currencies and various financial industry groups have been </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">planning for the transition away from LIBOR.
Although the transition </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">process away from LIBOR has become increasingly well-defined, there
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">remains uncertainty regarding the future utilization of LIBOR and the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nature of any replacement
rate (e.g., the Secured Overnight Financing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rate, which is intended to replace U.S. dollar LIBOR and measures the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cost of overnight borrowings through repurchase agreement </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions collateralized with U.S. Treasury
securities). Any potential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">effects of the transition away from LIBOR on the Fund or on certain
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments in which the Fund invests can be difficult to ascertain, and </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">they may vary depending on
factors that include, but are not limited to: </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(i) existing fallback or termination provisions in individual contracts and </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(ii) whether, how, and when industry participants develop and adopt </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">new reference rates and fallbacks for both
legacy and new products and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments. For example, certain of the Fund's investments may involve
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">individual contracts that have no existing fallback provision or language </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that contemplates the
discontinuation of LIBOR, and those investments </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">could experience increased volatility or illiquidity as a result of the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">transition process. In addition, interest rate provisions included in such </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">contracts, or in contracts or other
arrangements entered into by the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund, may need to be renegotiated. On March 15, 2022, the Adjustable </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Interest Rate (LIBOR) Act was signed into law. This law provides a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">statutory fallback mechanism on a
nationwide basis for certain </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">contracts that reference LIBOR and contain no, or insufficient, fallback </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">provisions. Generally, the fallback mechanism replaces LIBOR with a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">benchmark rate that is based on the
Secured Overnight Financing Rate </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that has been selected by the Board of Governors of the Federal Reserve </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">System pursuant to the implementing regulation it adopted in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">December 2022. The transition of investments from
LIBOR to a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">replacement rate as a result of amendment, application of existing </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">fallbacks,
statutory requirements or otherwise may also result in a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reduction in the value of certain instruments held by the Fund, a change </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">in the cost of borrowing or the dividend rate for any preferred shares </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that may be issued by the Fund, or a
reduction in the effectiveness of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">related Fund transactions such as hedges. Any such effects of the
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">transition away from LIBOR, as well as other unforeseen effects, could </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">result in losses to the
Fund.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Regulatory Risk &#8211; Commodity Pool Operator</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The CFTC has adopted regulations that subject registered investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies and their investment advisers to regulation by the CFTC if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the registered investment company invests
more than a prescribed level </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of its liquidation value in futures, options on futures or commodities, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swaps, or other financial instruments regulated under the CEA and the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rules thereunder (&#8220;commodity
interests&#8221;), or if the Fund markets itself </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as providing investment exposure to such instruments.&nbsp;The Investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Manager is registered with the CFTC as a CPO. However, with respect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund, the Investment Manager has
claimed an exclusion from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">registration as a CPO pursuant to CFTC Rule 4.5. For the Investment
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Manager to remain eligible for this exclusion, the Fund must comply </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with certain limitations,
including limits on its ability to use any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commodity interests and limits on the manner in which the Fund holds </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">out its use of such commodity interests. These limitations may restrict </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s ability to pursue its
investment objective and strategies </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase the costs of implementing its strategies, result in higher </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses for the Fund, and/or adversely affect the Fund&#8217;s total return. To </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the extent the Fund becomes
ineligible for this exclusion from CFTC </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulation, the Fund may consider steps in order to continue to qualify </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for exemption from CFTC regulation, or may determine to operate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to CFTC regulation.</font></div>
</div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">48</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_28"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Liquidity
Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Liquidity risk exists when particular investments are difficult to purchase </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or sell. Illiquid investments are investments that the Fund reasonably </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expects cannot be sold or disposed of
in current market conditions in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seven calendar days or less without the sale or disposition significantly </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changing the market value of the investment. Illiquid investments may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">become harder to value, especially in
changing markets. The Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments in illiquid investments may reduce the returns of the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">because it may be unable to sell the illiquid investments at an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">advantageous time or price or possibly require
the Fund to dispose of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other investments at unfavorable times or prices in order to satisfy its
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations, which could prevent the Fund from taking advantage of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other investment
opportunities. Additionally, the market for certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments may become illiquid under adverse market or economic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions independent of any specific adverse changes in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions of a particular issuer. Bond markets
have consistently grown </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">over the past three decades while the capacity for traditional dealer
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties to engage in fixed income trading has not kept pace and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in some cases has
decreased. As a result, dealer inventories of corporate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds, which provide a core indication of the ability of financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intermediaries to &#8220;make markets,&#8221; are at or near historic lows in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relation to market size. Because
market makers seek to provide stability </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to a market through their intermediary services, a significant reduction </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in dealer inventories could potentially lead to decreased liquidity and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increased volatility in the fixed
income markets. Such issues may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exacerbated during periods of economic uncertainty. In such cases, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund, due to the difficulty in purchasing and selling such securities or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments, may be unable to achieve
its desired level of exposure to a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain sector. To the extent that the Fund invests in securities of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies with smaller market capitalizations, foreign (non-U.S.) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, Rule 144A securities, illiquid
sectors of fixed income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, derivatives or securities with substantial market and/or credit
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk, the Fund will tend to have greater exposure to liquidity risk.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Further, fixed income securities with longer durations until maturity face </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">heightened levels of liquidity risk
as compared to fixed income securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with shorter durations until maturity. The risks associated with illiquid </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments may be particularly acute in situations in which the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations require cash (such as
in connection with tender offers) and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could result in the Fund borrowing to meet its short-term needs or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">incurring losses on the sale of illiquid instruments. It may also be the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">case that other market participants
may be attempting to liquidate fixed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income holdings at the same time as the Fund, causing increased supply </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the market and contributing to liquidity risk and downward pricing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pressure.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Tax Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund has elected to be treated as a RIC under the Code and intends </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">each year to qualify and be eligible to
be treated as such, so that it </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally will not be subject to U.S. federal income tax on its net
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment income or net short-term or long-term capital gains that are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributed to
shareholders. In order to qualify and be eligible for such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">treatment, the Fund must meet certain asset diversification tests, derive </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">at least 90% of its gross income for such year from certain types of </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">qualifying income, and distribute to its shareholders at least 90% of its </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">&#8220;investment company taxable income&#8221; as that term is defined in the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Code (which includes, among
other things, dividends, taxable interest </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and the excess of any net short-term capital gains over net long term </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">capital losses, as reduced by certain deductible expenses).</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investment strategy will potentially be limited by its intention </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to continue qualifying for
treatment as a RIC, and can limit the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to continue qualifying as such. The tax treatment of certain of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investments under one or more of the qualification or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution tests applicable to RICs is
uncertain. An adverse </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determination or future guidance by the IRS or a change in law might </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect
the Fund&#8217;s ability to qualify or be eligible for treatment as a RIC. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Income and gains from certain of the Fund&#8217;s&nbsp;activities may not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitute qualifying income to a RIC for purposes of the 90% gross </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income test. If the Fund were to treat
income or gain from a particular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment or activity as qualifying income and the income or gain were </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">later determined not to constitute qualifying income and, together with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any other nonqualifying income, caused
the Fund&#8217;s nonqualifying </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income to exceed 10% of its gross income in any taxable year, the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would fail to qualify as a RIC unless it is eligible to and does pay a tax at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund level.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">If, in any year, the Fund were to fail to qualify for treatment as a RIC </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under the Code, and were ineligible to or did not otherwise cure such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">failure, the Fund would be subject to
tax on its taxable income at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">corporate rates and, when such income is distributed, shareholders
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would be subject to further tax, on such distributions to the extent of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s current
or accumulated earnings and profits.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Portfolio Turnover Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Investment Manager manages the Fund without regard generally to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restrictions on portfolio turnover. The use of futures contracts and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivative instruments with
relatively short maturities may tend to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exaggerate the portfolio turnover rate for the Fund. Trading in fixed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income securities does not generally involve the payment of brokerage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commissions, but does involve indirect
transaction costs. The use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">futures contracts and other derivative instruments may involve the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment of commissions to futures commission merchants or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intermediaries. Higher portfolio
turnover involves correspondingly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater expenses to the Fund, including brokerage commissions or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dealer mark-ups and other transaction costs on the sale of securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and reinvestments in other
securities. The higher the rate of portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">turnover of the Fund, the higher these transaction costs borne by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund generally will be. Such sales may result in realization of taxable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital gains (including short-term
capital gains, which are generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxed to shareholders at ordinary income tax rates when distributed net </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of short-term capital losses and net long-term capital losses), and may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely impact the Fund&#8217;s
after-tax returns.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Operational Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">An investment in the Fund, like any fund, involves operational risks </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">arising from factors such as processing errors, human errors, inadequate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or failed internal or external
processes, failures in systems and </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">49&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_29"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">technology, changes in personnel and errors caused by third-party </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">service providers. The occurrence of any of
these failures, errors or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">breaches could result in a loss of information, regulatory scrutiny,
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reputational damage or other events, any of which could have a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">material adverse effect on the
Fund. While the Fund seeks to minimize </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such events through controls and oversight, there may still be failures </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that could cause losses to the Fund.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Other Investment Companies Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">When investing in an investment company, the Fund generally will bear </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its ratable share of that investment
company&#8217;s expenses and remain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to payment of the Fund&#8217;s management fees and other expenses </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with respect to assets so invested. Common Shareholders could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">therefore be subject to duplicative expenses to
the extent the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests in other investment companies. In addition, the securities of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other
investment companies may also be leveraged and will therefore </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be subject to the same leverage risks.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Cybersecurity Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As the use of technology has become more prevalent in the course of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business, the Fund is potentially more
susceptible to operational and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information security risks resulting from breaches in cyber security. A </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">breach in cyber security refers to both intentional and unintentional </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cyber events from outside threat actors
or internal resources that may, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">among other things, cause the Fund to lose proprietary information,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">suffer data corruption and/or destruction, lose operational capacity, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">result in the unauthorized
release or other misuse of confidential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information, or otherwise disrupt normal business operations. Cyber </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security breaches may involve unauthorized access to the Fund&#8217;s digital </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information systems (e.g.,
through &#8220;hacking&#8221; or malicious software </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coding), and may come from multiple sources, including outside attacks </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such as denial-of-service attacks (i.e., efforts to make network services </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unavailable to intended users) or
cyber extortion, including exfiltration </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of data held for ransom and/or &#8220;ransomware&#8221; attacks that renders </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">systems inoperable until ransom is paid, or insider actions. In addition, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cyber security breaches involving
the Fund&#8217;s third party service providers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(including but not limited to advisers, sub-advisers, administrators, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transfer agents, custodians, vendors, suppliers, distributors and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">third parties), trading counterparties
or issuers in which the Fund invests </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">can also subject the Fund to many of the same risks associated with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">direct cyber security breaches or extortion of company data. Moreover, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cyber security breaches involving
trading counterparties or issuers in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which the Fund invests could adversely impact such counterparties or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers and cause the Fund&#8217;s investment to lose value.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Cyber security failures or breaches may result in financial losses to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund and its shareholders. These
failures or breaches may also result in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disruptions to business operations, potentially resulting in financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">losses; interference with the Fund&#8217;s ability to calculate its NAV, process </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholder transactions or
otherwise transact business with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholders; impediments to trading; violations of applicable privacy </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other laws; regulatory fines; penalties; third party claims in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">litigation; reputational damage;
reimbursement or other compensation </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">costs; additional compliance and cyber security risk management costs </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and other adverse consequences. In
addition, substantial costs may be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">incurred in order to prevent any cyber incidents in the future.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Like with operational risk in general, the Fund has established business </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">continuity plans and risk management systems designed to reduce the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks associated with cyber security.
However, there are inherent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitations in these plans and systems, including that certain risks may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not have been identified, in large part because different or unknown </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">threats may emerge in the future. As
such, there is no guarantee that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such efforts will succeed, especially because the Fund does not directly </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">control the cyber security systems of issuers in which the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest, trading counterparties or third
party service providers to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund. Such entities have experienced cyber attacks and other attempts </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to gain unauthorized access to systems from time to time, and there is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">no guarantee that efforts to prevent or
mitigate the effects of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">attacks or other attempts to gain unauthorized access will be successful. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">There is also a risk that cyber security breaches may not be detected. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund and its shareholders may
suffer losses as a result of a cyber </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security breach related to the Fund, its service providers, trading </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties or the issuers in which the Fund invests.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Potential Conflicts of Interest Risk&#8212;Allocation of Investment
</font><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Opportunities</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Investment Manager and its affiliates are involved worldwide with a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broad spectrum of financial services
and asset management activities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and may engage in the ordinary course of business in activities in which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their interests or the interests of their clients may conflict with those of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund. The Investment Manager
may provide investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management services to other funds and discretionary managed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accounts that
follow an investment program similar to that of the Fund. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Subject to the requirements of the 1940 Act, the Investment Manager </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intends to engage in such activities and may receive compensation from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">third parties for its services. The
results of the Fund&#8217;s investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">activities may differ from those of other accounts managed by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investment Manager or its affiliates, and it is possible that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could sustain losses during periods in
which one or more other accounts </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">managed by the Investment Manager or its affiliates, including
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proprietary accounts, achieve profits on their trading.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Repurchase Agreements Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may enter into repurchase agreements, in which the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchases a security from a bank or
broker-dealer, which agrees to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repurchase the security at the Fund&#8217;s cost plus interest within a specified </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">time. If the party agreeing to repurchase should default, the Fund would </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seek to sell the securities which it
holds. This could involve costs or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delays in addition to a loss on the securities if their value should fall </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">below their repurchase price. Repurchase agreements may be or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">become illiquid. These events could also trigger
adverse tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consequences for the Fund.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">50</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_30"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Structured
Investments Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Holders of structured products, including structured notes, credit-linked </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">notes and other types of structured products, bear the risks of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underlying investments, index or reference
obligation and are subject to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparty risk. The Fund may have the right to receive payments only </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from the structured product, and generally does not have direct rights </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">against the issuer or the entity that
sold the assets to be securitized. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">While certain structured products enable the investor to acquire
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interests in a pool of securities without the brokerage and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses associated with
directly holding the same securities, investors </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in structured products generally pay their share of the structured </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">product&#8217;s administrative and other expenses. Although it is difficult to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">predict whether the prices of
indices and securities underlying </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structured products will rise or fall, these prices (and, therefore, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prices of structured products) are generally influenced by the same types </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of political and economic events
that affect issuers of securities and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital markets generally. If the issuer of a structured product uses </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shorter term financing to purchase longer term securities, the issuer may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be forced to sell its securities at
below market prices if it experiences </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">difficulty in obtaining such financing, which may adversely affect the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the structured products owned by the Fund. Structured </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">products generally entail risks associated with
derivative instruments.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Market Disruptions Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is subject to investment and operational risks associated with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial, economic and other global market developments and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disruptions, including those arising from war,
terrorism, market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">manipulation, government interventions, defaults and shutdowns, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political
changes, diplomatic developments or the imposition of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sanctions and other similar measures, public health emergencies (such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as the spread of infectious diseases, pandemics and epidemics) and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">natural/environmental disasters, which can
all negatively impact the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities markets, interest rates, secondary trading, ratings, credit risk, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">inflation, deflation, other factors relating to the Fund&#8217;s investments or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Investment Manager&#8217;s
operations and the value of an investment in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund, its distributions and its returns. These events can also impair </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the technology and other operational systems upon which the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service providers, including PIMCO as
the Fund&#8217;s investment adviser, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rely, and could otherwise disrupt the Fund&#8217;s service providers&#8217; ability to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fulfill their obligations to the Fund.&nbsp;For example, the recent spread of an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">infectious respiratory
illness caused by a novel strain of coronavirus </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(known as COVID-19) has caused volatility, severe market dislocations </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and liquidity constraints in many markets, including markets for the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities the Fund holds, and may
adversely affect the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments and operations.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The foregoing could lead to a significant economic downturn or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recession, increased market volatility, a
greater number of market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">closures, higher default rates and adverse effects on the values and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity of securities or other assets. Such impacts, which may vary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">across asset classes, may
adversely affect the Fund's performance. In </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain cases, an exchange or market may close or issue trading halts on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specific securities or even the entire market, which may result in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund being, among other things, unable
to buy or sell certain securities </font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or financial instruments or to accurately price their investments. These </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and other developments may adversely
affect the liquidity of the Fund's </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">holdings (see &#8220;Liquidity Risk&#8221; in this prospectus for further details).</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Certain Affiliations</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Certain broker-dealers may be considered to be affiliated persons of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund and/or the Investment Manager
due to their possible affiliations </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with Allianz SE, the ultimate parent of the Investment Manager, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">another Allianz entity. Allianz Asset Management of America LP merged </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with Allianz Asset Management of America
LLC, with the latter being </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the surviving entity, effective January 1, 2023. Following the merger,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Allianz Asset Management of America LLC is PIMCO LLC&#8217;s managing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">member and direct parent
entity. Absent an exemption from the SEC or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other regulatory relief, the Fund is generally precluded from effecting </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain principal transactions with affiliated brokers, and its ability to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase securities being
underwritten by an affiliated broker or a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">syndicate including an affiliated broker, or to utilize affiliated brokers for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency transactions, is subject to restrictions. This could limit the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to engage in
securities transactions and take advantage of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market opportunities.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO has received exemptive relief from the SEC that will permit the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund to, if it determines to rely on the
exemptive relief, among other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">things, co-invest with certain other persons, including certain affiliates </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of PIMCO and certain public or private funds managed by PIMCO and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its affiliates, subject to certain terms and
conditions.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Anti-Takeover Provisions</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Declaration and the Bylaws include provisions that could limit the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability of other entities or persons to acquire control of the Fund or to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">convert the Fund to open-end status.
See &#8220;Anti-Takeover and Other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Provisions in the Declaration of Trust&nbsp;and the Bylaws.&#8221; &nbsp;These provisions </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the Declaration could have the effect of depriving the Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders of opportunities to sell their
Common Shares at a premium </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">over the then-current market price of the Common Shares or at NAV.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Distribution Rate Risk</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the Fund may seek to maintain level distributions, the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution rates may be affected by numerous factors, including but </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not limited to changes in realized and
projected market returns, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fluctuations in market interest rates, Fund performance, and other
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">factors. There can be no assurance that a change in market conditions or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other factors will not
result in a change in the Fund&#8217;s distribution rate or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the rate will be sustainable in the future.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For instance, during periods of low or declining interest rates, the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributable income and dividend levels may decline for many reasons. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For example, the Fund may have to
deploy uninvested assets (whether </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from purchases of Fund shares, proceeds from matured, traded or called </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt obligations or other sources) in new, lower yielding instruments. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Additionally, payments from certain
instruments that may be held by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund (such as variable and floating rate securities) may be negatively </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impacted by declining interest rates, which may also lead to a decline in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s distributable
income and dividend levels.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">51&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_31"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">AMT Bonds Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund
may invest &#8220;AMT Bonds,&#8221; which are municipal securities that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pay interest that is taxable under the federal alternative minimum tax </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable to noncorporate taxpayer. Such investments may expose the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund to certain risks in addition to
those typically associated with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds. Interest or principal on AMT Bonds paid out of current </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or anticipated revenues from a specific project or specific asset may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely impacted by declines in
revenue from the project or asset. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Declines in general business activity could also affect the economic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">viability of facilities that are the sole source of revenue to support AMT </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bonds. In this regard, AMT Bonds
may entail greater risks than general </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation municipal bonds. For shareholders subject to the federal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">alternative minimum tax, a portion of the Fund&#8217;s distributions may not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be exempt from gross federal
income, which may give rise to alternative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">minimum tax liability.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Privacy and Data Security Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Gramm-Leach Bliley Act (&#8220;GLBA&#8221;) and other laws limit the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disclosure of certain non-public
personal information about a consumer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to non- affiliated third parties and require financial institutions to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disclose certain privacy policies and practices with respect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information sharing with both affiliates and
non- affiliated third parties. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Many states and a number of non-U.S. jurisdictions have enacted
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">privacy and data security laws requiring safeguards on the privacy and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security of
consumers&#8217; personally identifiable information. Other laws </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">deal with obligations to safeguard and dispose of private information in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a manner designed to avoid its dissemination. Privacy rules adopted by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the U.S. Federal Trade Commission and
SEC implement GLBA and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements and govern the disclosure of consumer financial
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information by certain financial institutions, ranging from banks to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">private investment funds.
U.S. platforms following certain models </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally are required to have privacy policies that conform to these </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">GLBA and other requirements. In addition, such platforms typically have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">policies and procedures intended to
maintain platform participants&#8217; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">personal information securely and dispose of it properly.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund generally does not intend to obtain or hold borrowers&#8217; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-public personal information, and the
Fund has implemented </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">procedures reasonably designed to prevent the disclosure of borrowers&#8217;
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-public personal information to the Fund. However, service providers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the Fund, including
their custodians and the platforms acting as loan </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">servicers for the Fund, may obtain, hold or process such information. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund cannot guarantee the security of non-public personal information </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the possession of such a service
provider and cannot guarantee that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service providers have been and will continue to comply with the GLBA, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other data security and privacy laws and any other related regulatory </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements. Violations of GLBA and
other laws could subject the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to litigation and/or fines, penalties or other regulatory action, which, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">individually or in the aggregate, could have an adverse effect on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund. The Fund may also face regulations
related to privacy and data </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security in the other jurisdictions in which the Fund invests.</font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Focused
Investment Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Substantial exposure to municipal bonds of particular issuers, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">geographies and/or jurisdictions will result in susceptibility to political, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">economic, regulatory and other
factors affecting issuers of such bonds, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their ability to meet their obligations and the economic condition of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">facility or specific revenue source from whose revenues payments of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations may be made. The ability of
state, county, or local </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">governments or other issuers to meet their obligations will depend
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">primarily on the availability of tax and other revenues to those entities. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The amounts of tax and
other revenues available to issuers may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affected from time to time by economic, political and demographic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions that specifically impact such issuers. In addition, there are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">constitutional and statutory
restrictions that limit the power of certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers to raise revenues or increase taxes. The availability of federal, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">state and local aid to issuers may also affect their ability to meet their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations. The creditworthiness
of obligations issued by local issuers </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">within a given state may be unrelated to the creditworthiness of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations issued by the state and there is no obligation on the part of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the state to make payment on such
local obligations in the event of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default. Any reduction in the actual or perceived ability of an issuer to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">meet its obligations (including a reduction in the rating of its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding securities) would likely affect
adversely the market value </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and marketability of its obligations and could adversely affect the values </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of other bonds as well. Moreover, in such circumstances, the value of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s shares may fluctuate
more widely than the value of shares of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more diversified fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Many factors, including national economic, social and environmental </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">policies and conditions, which are not
within the control of issuers, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could affect or could have an adverse impact on the financial condition </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the issuers. The Fund is unable to predict whether or to what extent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such factors or other factors may
affect issuers, the market value or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">marketability of such bonds or the ability of the respective issuers of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds acquired by the Fund to pay interest on or principal of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Insurance Risk</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase municipal securities that are secured by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">insurance, bank credit agreements or escrow
accounts. The credit quality </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the companies that provide such credit enhancements will affect the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of those securities. Certain significant providers of insurance for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal securities
have incurred significant losses as a result of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exposure to sub-prime mortgages and other lower credit quality </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments that have experienced recent defaults or otherwise suffered </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">extreme credit deterioration. As a
result, such losses reduced the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">insurers&#8217; capital and called into question their continued ability to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perform their obligations under such insurance if they are called upon to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">do so in the future. If the insurer
of a municipal security suffers a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downgrade in its credit rating or the market discounts the value of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">insurance provided by the insurer, the rating of the underlying municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security will be more relevant and
the value of the municipal security </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would more closely, if not entirely, reflect such rating. In such a case, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of insurance associated with a municipal security would decline </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and may not add any value. The insurance
feature of a municipal </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">52</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_55d0e1b5-71cb-4688-8ca0-ee01590c9834_32"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">security does not guarantee
the full payment of principal and interest </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">through the life of an insured obligation, the market value of the insured </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">obligation or the net asset value of the common shares represented by </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such insured obligation.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investing in the municipal bond market involves the risks of investing in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt securities generally and certain other risks. The amount of public </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information available about the
municipal bonds in which the Fund may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invest is generally less than that for corporate equities or bonds, and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment performance of the Fund&#8217;s investment in municipal bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may therefore be more dependent on
the analytical abilities of PIMCO </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than its investments in taxable bonds. The secondary market for
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds also tends to be less well developed or liquid than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">many other securities
markets, which may adversely affect the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ability to sell municipal bonds at attractive prices.</font></div>
<div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">How the Fund Manages Risk</font></div>
<div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may (but is not required to) use various investment strategies </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to attempt to hedge exposure to reduce the risk of price fluctuations of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its portfolio securities, the risk of
loss, and to preserve capital. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Derivatives strategies and instruments that the Fund may use include, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">among others, reverse repurchase agreements; interest rate swaps; total </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">return swaps; credit default swaps;
basis swaps; other types of swap </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements or options thereon; dollar rolls; futures and forward
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contracts (including foreign currency exchange contracts); short sales; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">options on financial
futures; options based on either an index of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal securities or taxable debt securities whose prices, PIMCO </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">believes, correlate with the prices of the Fund&#8217;s investments; other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivative transactions; loans of
portfolio securities and when-issued, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delayed delivery and forward commitment transactions. Income earned </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by the Fund from its hedging and related transactions may be subject to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more special U.S. federal
income tax rules that can affect the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount, timing and/or character of distributions to holders of the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares. For instance, many hedging activities will be treated as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital gain and, if not offset by net
realized capital loss, will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributed to shareholders in taxable distributions. If effectively used, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hedging strategies will offset in varying percentages losses incurred on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s investments due to
adverse interest rate changes. There is no </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assurance that these hedging strategies will be available at any time or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that PIMCO will determine to use them for the Fund or, if used, that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">strategies will be successful. PIMCO
may determine not to engage in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hedging strategies or to do so only in unusual circumstances or market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions. In addition, the Fund may be subject to certain restrictions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on its use of hedging strategies
imposed by guidelines of one or more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings agencies that may issue ratings on any Preferred Shares issued </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may take certain
actions if short-term interest rates increase or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market conditions otherwise change (or the Fund anticipates such an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase or change) and the Fund&#8217;s leverage begins (or is expected) to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affect Common
Shareholders. In order to attempt to offset </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such a negative impact of leverage on Common Shareholders, the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may shorten the average maturity or duration of its investment portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(by investing in short-term, high
quality securities or implementing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain hedging strategies). The Fund also may attempt to reduce </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">leverage by redeeming or
otherwise purchasing any Preferred Shares </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(subject to any restrictions discussed under &#8220;Description of Capital </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Structure&#8212;Preferred Shares Redemption&#8221;), unwinding TOBs or by </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reducing any holdings in other
instruments that create leverage. As </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">explained above under &#8220;Principal Risks of the Fund&#8212;Leverage Risk,&#8221; </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the success of any such attempt to limit leverage risk depends on </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">PIMCO&#8217;s ability to accurately predict
interest rate or other market </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">changes. Because of the difficulty of making such predictions, the Fund </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may not be successful in managing its interest rate exposure in the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">manner described above.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, the Fund has adopted certain investment limitations </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">designed to limit investment risk. See &#8220;Investment Restrictions&#8221; in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Statement of Additional
Information for a description of these </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitations.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">53&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Management of the Fund</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Trustees and Officers</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The business of the Fund is managed under the direction of the Fund&#8217;s Board, including supervision of the
duties performed by the Investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Manager. The Board is currently composed of nine Trustees of the Fund (&#8220;Trustees&#8221;), two of whom are treated as
&#8220;interested persons&#8221; of the Fund (as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">defined in the 1940 Act). The names and business addresses of the Trustees and officers of the Fund and their principal
occupations and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affiliations during the past five years are set forth under &#8220;Management of the Fund&#8221; in the Statement of Additional
Information.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Investment Manager</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO serves as the investment manager of the Fund. Subject to the supervision of the Board. PIMCO is responsible
for managing the investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">activities of the Fund and the Fund&#8217;s business affairs and other administrative matters.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO is located at 650 Newport Center Drive, Newport Beach, CA, 92660. Organized in 1971, PIMCO provides investment
management and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">advisory services to private accounts of institutional and individual clients and to registered investment companies. PIMCO is a majority-owned </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indirect subsidiary of Allianz SE, a publicly traded European insurance and financial services company. As of December 31, 2022, PIMCO had </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">approximately $1.74 trillion of assets under management. As of December 31, 2022, PIMCO had $1.36 trillion of third-party assets under </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management.&nbsp;</font> <br></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">David Hammer is
primarily responsible for the day-to-day portfolio management of the Fund.</font><font style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div>
<div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;width:538pt;" cellpadding="0" cellspacing="0">
<tr style="height:14.25pt;">
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:105pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;margin-left:0.0pt;">Portfolio Manager</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:27.43pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;margin-left:0.0pt;">Since</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:405.57pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;margin-left:0.0pt;">Recent Professional Experience</font></div> </div> </td> </tr>
<tr style="height:31.25pt;">
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:105pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">David Hammer</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:27.43pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">2015</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:405.57pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Mr. Hammer is a Managing Director and municipal bond portfolio manager in the Newport Beach office. He rejoined PIMCO in 2015 from Morgan </font></div>
<div style="margin-left:6pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Stanley, where he was managing director and head of municipal trading, risk
management and research. Previously at PIMCO, he was a senior vice </font></div>
<div style="margin-left:6pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">president and municipal bond portfolio manager, and prior to joining PIMCO in
2012, he was an executive director and head of the high yield and </font></div>
<div style="margin-left:6pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">distressed municipal bond trading group at Morgan Stanley.</font></div> </div>
</td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Control Persons</font></div>
<div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A control person is a person who owns, either directly or indirectly, beneficially more than 25% of the voting
securities of a company. As of March 31, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2023, the Fund did not know of any person or entity who &#8220;controlled&#8221; the Fund.</font></div>
<div style="line-height:12.0pt;margin-top:10.0pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Additional Information</font></div>
<div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Trustees are responsible generally for overseeing the management of the Fund. The Trustees authorize the Fund
to enter into service agreements </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the Investment Manager and other service providers in order to provide, and in some cases authorize service providers to procure
through other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">parties, necessary or desirable services on behalf of the Fund. Shareholders are not intended to be third-party beneficiaries of such service </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements.</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Neither this prospectus,
the Fund&#8217;s Statement of Additional Information, any contracts filed as exhibits to the Fund&#8217;s registration statement, nor any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other communications or disclosure
documents from or on behalf of the Fund creates a contract between a shareholder of the Fund and the Fund, a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">service provider to the Fund, and/or the Trustees or officers of
the Fund. The Trustees may amend this prospectus, the Statement of Additional </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Information, and any other contracts to which the Fund is a party, and interpret the investment
objective, policies, restrictions and contractual </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provisions applicable to the Fund without shareholder input or approval, except in circumstances in which shareholder
approval is specifically required </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by law (such changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the
Fund's </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prospectus or Statement of Additional Information.</font></div> <div style="line-height:12.0pt;margin-top:10.0pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Investment Management Agreement</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Pursuant to an investment management agreement between the Investment Manager and the Fund (the &#8220;Investment Management Agreement&#8221;), the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund has agreed to pay the Investment Manager an annual fee, payable monthly, in an amount equal to 0.685% of the Fund&#8217;s average daily net </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset value (including daily net assets attributable to any Preferred Shares) for the services rendered, for the facilities it provides and for certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses borne by the Investment Manager pursuant to the Investment Management Agreement. Average daily net asset value includes total assets </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund (including daily net assets attributable to any Preferred Shares) minus accrued liabilities.</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Pursuant to the Investment Management Agreement, PIMCO shall provide to the Fund investment guidance and policy direction in connection with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the management of the Fund, including oral and written research, analysis, advice and statistical and economic data and information. In addition, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under the terms of the Investment Management Agreement, subject to the general supervision of the Board, the Investment Manager shall provide or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cause to be furnished all supervisory and administrative and other services reasonably necessary for the operation of the Fund under the unified </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management fee structure, including but not limited to the supervision and coordination of matters relating to the operation of the Fund, including </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">54</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_2"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO High Income Fund</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">any necessary coordination among the custodian, transfer agent, dividend disbursing agent and recordkeeping agent (including pricing and valuation </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of the Fund), accountants, attorneys, auction agents and other parties performing services or operational functions for the Fund; the provision of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">adequate personnel, office space, communications facilities, and other facilities necessary for the effective supervision and administration of the Fund, </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">as well as the services of a sufficient number of persons competent to perform such supervisory and administrative and clerical functions as are </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">necessary for compliance with federal securities laws and other applicable laws; the maintenance of the books and records of the Fund; the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">preparation of all federal, state, local and foreign tax returns and reports for the Fund; provision of administrative services to shareholders for the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund including the maintenance of a shareholder information telephone number; the provision of certain statistical information and performance of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund, an internet website (if requested), and maintenance of privacy protection systems and procedures; the preparation and filing of such </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">registration statements and other documents with such authorities as may be required to register and maintain the listing of the shares of the Fund; </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the taking of other such actions as may be required by applicable law (including establishment and maintenance of a compliance program for the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund); and the preparation, filing and distribution of proxy materials, periodic reports to shareholders and other regulatory filings.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, under the Investment Management Agreement, the Investment Manager will procure, at its own expense, the
following services, and will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bear expenses associated with the following for the Fund: a custodian or custodians for the Fund to provide for the safekeeping of the
Fund&#8217;s assets; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a recordkeeping agent to maintain the portfolio accounting records for the Fund; a transfer agent for the Fund; a dividend disbursing agent and/or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">registrar for the Fund; all audits by the Fund&#8217;s independent public accountant (except fees to auditors associated with satisfying rating agency </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements for preferred shares or other securities issued by the Fund and other related requirements in the Fund&#8217;s organizational documents); </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">valuation services; maintaining the Fund&#8217;s tax records; all costs and/or fees incident to meetings of the Fund&#8217;s shareholders, the preparation, printing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and mailing of the Fund&#8217;s prospectuses (although the Fund will bear such expenses in connection with the offerings made pursuant to this prospectus </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as noted below) notices and proxy statements, press releases and reports to its Shareholders, the filing of reports with regulatory bodies, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maintenance of the Fund&#8217;s existence and qualification to do business, the expense of issuing, redeeming, registering and qualifying for sale, Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares with the federal and state securities authorities, and the expense of qualifying and listing Shares with any securities exchange or other trading </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">system; legal services (except for extraordinary legal expenses); costs of printing certificates representing Shares of the Fund; the Fund&#8217;s pro rata </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portion of its fidelity bond and other insurance premiums; and association membership dues.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund (and not Investment Manager) will be responsible for certain fees and expenses that are not covered by the unified fee under the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investment Management Agreement. These include fees and expenses, including travel expenses, and fees and expenses of legal counsel retained for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their benefit, of Trustees who are not officers, employees, partners, shareholders or members of PIMCO or its subsidiaries or affiliates; the salaries and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other compensation or expenses, including travel expenses, of any of the Fund&#8217;s executive officers and employees, if any, who are not officers, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">directors, shareholders, members, partners or employees of Investment Manager or its subsidiaries or affiliates; taxes and governmental fees, if any, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">levied against the Fund; brokerage fees and commissions and other portfolio transaction expenses incurred by or for the Fund (including, without </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">limitation, fees and expenses of outside legal counsel or third-party consultants retained in connection with reviewing, negotiating, and structuring </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specialized loans and other investments made by the Fund and subject to specific or general authorization by the Fund&#8217;s Board of Trustees (for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">example so-called &#8220;broken-deal costs&#8221; (</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">e.g</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">., fees, costs, expenses and liabilities, including, for example, due diligence-related fees, costs, expenses
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and liabilities, with respect to unconsummated investments))); expenses of the Fund&#8217;s securities lending (if any), including any securities lending agent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fees, as governed by a separate securities lending agreement; costs, including interest expenses, of borrowing money or engaging in other types of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage financing including, without limitation, through the use by the Fund of reverse repurchase agreements, TOBs, bank borrowings and credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">facilities; costs, including dividend and/or interest expenses and other costs (including, without limitation, offering and related legal costs, fees to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">brokers, fees to auction agents, fees to transfer agents, fees to ratings agencies and fees to auditors associated with satisfying ratings agency </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements for Preferred Shares or other securities issued by the Fund and other related requirements in the Fund&#8217;s organizational documents) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">associated with the Fund&#8217;s issuance, offering, redemption and maintenance of Preferred Shares, commercial paper or other senior securities for the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purpose of incurring leverage; fees and expenses of any underlying funds or other pooled vehicles in which the Fund invests; dividend and interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses on short positions taken by the Fund; organizational and offering expenses of the Fund, including with respect to share offerings following </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s initial offering, such as rights and shelf offerings (including expenses associated with offerings made pursuant to this prospectus), and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses associated with tender offers and other share repurchases and redemptions; extraordinary expenses, including extraordinary legal expenses </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as may arise, including expenses incurred in connection with litigation, proceedings, other claims, and the legal obligations of the Fund to indemnify </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its Trustees, officers, employees, shareholders, distributors, and agents with respect thereto; and expenses of the Fund which are capitalized in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accordance with generally accepted accounting principles.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Because the fees received by the Investment Manager are based on the average daily net asset value of the Fund (including daily net assets </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">attributable to any Preferred Shares), the Investment Manager has a financial incentive for the Fund to utilize Preferred Shares, which may create a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conflict of interest between the Investment Manager, on the one hand, and the holders of the Fund&#8217;s Common Shares, on the other hand.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A discussion regarding the considerations of the Fund&#8217;s Board for approving the Investment Management
Agreement between PIMCO and the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is available in the Fund&#8217;s semi-annual report to shareholders for the period ended June 30, 2022.</font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">55&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO High Income Fund</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_3"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Net Asset Value</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
price of the Fund&#8217;s Common Shares is based on the Fund&#8217;s NAV. The NAV of the Fund&#8217;s Common Shares is determined by dividing the total value </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the
Fund&#8217;s portfolio investments and other assets, less any liabilities, by the total number of common shares outstanding.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">On each day that the NYSE is open, Fund shares are ordinarily valued as of the close of regular trading (normally
4:00 p.m., Eastern time) (&#8220;NYSE </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Close&#8221;). Information that becomes known to the Fund or its agents after the time as of which NAV has been calculated on a
particular day will not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. If regular trading on the NYSE closes
earlier </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than scheduled, the Fund may calculate its NAV as of the earlier closing time or calculate its NAV as of the normally scheduled close of regular trading </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on the NYSE for that day. The Fund generally does not calculate its NAV on days on which the NYSE is not open for business. If the NYSE is closed on a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">day it would normally be open for business, the Fund may calculate its NAV as of the normally scheduled NYSE Close or such other time that the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may determine. If regular trading on the NYSE closes earlier than scheduled, the Fund reserves the right to either (i) calculate its NAV as of the earlier </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">closing time or (ii) calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day. The Fund generally does not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">calculate its NAV on days during which the NYSE is closed. However, if the NYSE is closed on a day it would normally be open for business, the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reserves the right to calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day or such other time that the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may determine.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For purposes of
calculating NAV, portfolio securities and other assets for which market quotations are readily available are valued at market value. A </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market quotation is readily available
only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">can access at the measurement date, provided that a
quotation will not be readily available if it is not reliable. Market value is generally determined </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on the basis of official closing prices or the last reported sales
prices. The Fund will normally use pricing data for domestic equity securities received </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shortly after the NYSE Close and does not normally take into account trading,
clearances or settlements that take place after the NYSE Close. If market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more
than one exchange is typically valued using pricing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information from the exchange considered by PIMCO to be the primary exchange. A foreign (non-U.S.) equity security will
be valued as of the close of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Investments for
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which market quotations are not readily available are valued at fair value as determined in good faith pursuant to Rule 2a-5 under the 1940 Act. As a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">general principle, the fair value of a security or other asset is the price that would be received to sell an asset or paid to transfer a liability in an orderly </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transaction between market participants at the measurement date. Pursuant to Rule 2a-5, the Board has designated PIMCO as the valuation </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">designee (&#8220;Valuation Designee&#8221;) for each Fund to perform the fair value determination relating to all Fund investments. PIMCO may carry out its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">designated responsibilities as Valuation Designee through various teams and committees. The Valuation Designee&#8217;s policies and procedures govern </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Valuation Designee&#8217;s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Designee may value Fund portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">services, quotation reporting systems, valuation agents and other third-party sources (together, &#8220;Pricing Sources&#8221;). Domestic and foreign (non-U.S.) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dealers or Pricing Sources using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Sources </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market-based prices supplied by Pricing Sources. With respect to any portion of the Fund&#8217;s assets that are invested in one or more open-end </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management investment companies (including those advised by PIMCO) (other than ETFs), the Fund&#8217;s NAV will be calculated based upon the NAVs of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such investments.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fair valuation may
require subjective determinations about the value of a security. While the Fund&#8217;s and Valuation Designee's policies and procedures </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are intended to result in a
calculation of the Fund&#8217;s NAV that fairly reflects security values as of the time of pricing, the Fund cannot ensure that fair </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">values accurately reflect the price that
the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in a forced or distressed sale). The prices used by the
Fund may differ from the value that would be realized if the securities were sold.</font></div>
<div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Distributions</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund makes regular monthly cash distributions to Common Shareholders at a rate based upon the past and projected net income of the Fund. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Subject to applicable law, the Fund may fund a portion of its distributions with gains from the sale of portfolio securities and other sources. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Distributions can only be made from net investment income after paying any accrued dividends to holders of the Preferred Shares. The dividend rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the Fund pays on its Common Shares may vary as portfolio and market conditions change, and will depend on a number of factors, including </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">without limit the amount of the Fund&#8217;s undistributed net investment income and net short- and long-term capital gains, as well as the costs of any </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage obtained by the Fund (including the amount of the costs and dividend rates on the outstanding Preferred Shares and interest or other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses on any TOBs, reverse repurchase agreements, credit default swaps, dollar rolls/buy backs and borrowings). As portfolio and market </font></div> </div> <div style="clear:both;">
</div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">56</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_4"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">conditions change, the rate
of distributions on the Common Shares and the Fund&#8217;s dividend policy could change. There can be no assurance that a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">change in market conditions or other factors will
not result in a change in the Fund distribution rate or that the rate will be sustainable in the future. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">See &#8220;Principal Risks of the Fund&#8212;Fund Distribution
Rates.&#8221; For a discussion of factors that may cause the Fund&#8217;s income and capital gains (and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">therefore the dividend) to vary, see &#8220;Principal Risks of the
Fund.&#8221; The Fund generally distributes each year all of its net investment income and net </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">short-term capital gains. In addition, at least annually, the Fund generally
distributes net realized long-term capital gains not previously distributed, if </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">any. The net investment income of the Fund consists of all income (other than net short-term
and long-term capital gains) less all expenses of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund (after it pays accrued dividends on the outstanding Preferred Shares).</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To permit the Fund to maintain a more level monthly distribution, the Fund may distribute less than the entire
amount of net investment income </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">earned in a particular period. The undistributed net investment income would be available to supplement future distributions. As a result,
the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions paid by the Fund for any particular monthly period may be more or less than the amount of net investment income actually earned by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund during the period. Undistributed net investment income will be additive to the Fund&#8217;s NAV and, correspondingly, distributions from </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">undistributed net investment income will be deducted from the Fund&#8217;s NAV.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The tax treatment and characterization of the Fund&#8217;s distributions may vary significantly from time to time because of the varied nature of the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments. For example, the Fund may enter into opposite sides of multiple interest rate swaps or other derivatives with respect to the same </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underlying reference instrument (e.g., a 10-year U.S. treasury) that have different effective dates with respect to interest accrual time periods for the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal purpose of generating distributable gains (characterized as ordinary income for tax purposes) that are not part of the Fund&#8217;s duration or yield </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">curve management strategies. In such a &#8220;paired swap transaction&#8221;, the Fund would generally enter into one or more interest rate swap agreements </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">whereby the Fund agrees to make regular payments starting at the time the Fund enters into the agreements equal to a floating interest rate in return </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for payments equal to a fixed interest rate (the &#8220;initial leg&#8221;). The Fund would also enter into one or more interest rate swap agreements on the same </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underlying instrument, but take the opposite position (i.e., in this example, the Fund would make regular payments equal to a fixed interest rate in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">return for receiving payments equal to a floating interest rate) with respect to a contract whereby the payment obligations do not commence until a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">date following the commencement of the initial leg (the &#8220;forward leg&#8221;). The Fund may engage in investment strategies, including those that employ </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the use of derivatives, to, among other things, seek to generate current, distributable income, even if such strategies could potentially result in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">declines in the Fund&#8217;s net asset value (&#8220;NAV&#8221;). The Fund&#8217;s income and gain-generating strategies, including certain derivatives strategies, may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generate current income and gains taxable as ordinary income sufficient to support monthly distributions even in situations when the Fund has </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">experienced a decline in net assets due to, for example, adverse changes in the broad U.S. or non-U.S. equity markets or the Fund&#8217;s debt investments, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or arising from its use of derivatives. Because some or all of these transactions may generate capital losses without corresponding offsetting capital </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">gains, portions of the Fund&#8217;s distributions recognized as ordinary income for tax purposes (such as from paired swap transactions) may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">economically similar to a taxable return of capital when considered together with such capital losses. The tax treatment of certain derivatives in which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund invests may be unclear and thus subject to recharacterization. Any recharacterization of payments made or received by the Fund pursuant to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivatives potentially could affect the amount, timing or character of Fund distributions. In addition, the tax treatment of such investment strategies </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be changed by regulation or otherwise.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To the extent required by the 1940 Act and other applicable laws, absent an exemption, a notice will accompany each
monthly distribution with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to the estimated source (as between net income, gains or other capital source) of the distribution made. If the Fund estimates that a
portion </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of one of its dividend distributions may be comprised of amounts from sources other than net investment income in accordance with its internal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">policies, and accounting records and related accounting practices, the Fund will notify shareholders of record of the estimated composition of such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution through a Section 19 Notice. For these purposes, the Fund estimates the source or sources from which a distribution is paid, to the close </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Section 19 Notice generally would not be issued. It is important to note that differences exist between the Fund&#8217;s daily internal accounting records </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and practices, the Fund&#8217;s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instance, the Fund&#8217;s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other consequences, it is possible that the Fund may not issue a Section 19 Notice in situations where the Fund&#8217;s financial statements prepared later </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">included capital gains and/or a return of capital.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The tax characterization of the Fund&#8217;s distributions made in a taxable year cannot finally be determined until at or after the end of such taxable year. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As a result, there is a possibility that the Fund may make total distributions during a taxable year in an amount that exceeds the Fund&#8217;s net </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment income and net realized capital gains (as reduced by any capital loss carry-forwards) for the relevant year. For example, the Fund may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribute amounts early in the year that are derived from short-term capital gains, but incur net short-term capital losses later in the year, thereby </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offsetting short-term capital gains out of which the Fund has already made distributions. In such a situation, the amount by which the Fund&#8217;s total </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">57&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_5"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">distributions exceed net investment income and net realized capital gains would generally be treated as a tax-free return of capital up to the amount </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of a shareholder&#8217;s tax basis in his or her Common Shares, with any amounts exceeding such basis treated as gain from the sale of Common Shares. In </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">general terms, a return of capital would occur where the Fund distribution (or portion thereof) represents a return of a portion of your investment, </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">rather than net income or capital gains generated from your investment during a particular period. A return of capital distribution is not taxable, but it </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reduces a shareholder&#8217;s tax basis in the Common Shares, thus reducing any loss or increasing any gain on a subsequent taxable disposition by the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">shareholder of the Common Shares. The Fund will prepare and make available to shareholders detailed tax information with respect to the Fund&#8217;s </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">distributions annually. See &#8220;Tax Matters.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The 1940 Act currently limits the number of times the Fund may distribute long-term capital gains in any tax year, which may increase the variability </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund&#8217;s distributions and result in certain distributions being comprised more or less heavily than others of long-term capital gains currently </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">eligible for favorable income tax rates. The Fund, as well as several other PIMCO-managed closed end funds, has received exemptive relief from the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">SEC permitting it to make a greater number of capital gains distributions to holders of the ARPS than would otherwise be permitted by Section 19(b) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the 1940 Act and Rule 19b-1 under the 1940 Act.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Unless a Common Shareholder elects to receive distributions in cash, all distributions of Common Shareholders whose shares are registered with the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">plan agent will be automatically reinvested in additional Common Shares of the Fund under the Plan.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Dividend Reinvestment Plan</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The information contained under the heading &#8220;Dividend Reinvestment Plan&#8221; in the Fund&#8217;s annual report to shareholders for the fiscal year ended </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">December 31, 2022, is incorporated herein by reference.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Description of Capital Structure</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The following is a brief description of the capital structure of the Fund. This description does not purport to be complete and is subject to and qualified </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in its entirety by reference to the Declaration and the Bylaws. The Declaration and Bylaws are each exhibits to the registration statement of which this </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prospectus is a part.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is an unincorporated voluntary association with transferable shares of beneficial interest (commonly
referred to as a &#8220;Massachusetts </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business trust&#8221;) established under the laws of the Commonwealth of Massachusetts by the Declaration. The Declaration provides
that the Trustees of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund may authorize separate classes of shares of beneficial interest. Preferred shares (such as the ARPS and the RVMTP Shares) are permitted to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be issued in one or more series, with such par value and with such rights as determined by the Board, by action of the Board without the approval of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Common Shareholders.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The following table shows, for each class of authorized securities of the Fund, the amount of (i) shares authorized
and (ii) shares outstanding, each as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of December 31, 2022.</font><font style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div>
<div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;width:538pt;" cellpadding="0" cellspacing="0">
<tr style="height:14.25pt;">
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:399.52pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;margin-left:0.0pt;">Title of Class</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:68.6pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Amount Authorized</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:69.88pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Amount Outstanding</font></div> </div> </td> </tr>
<tr style="height:11.25pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:399.52pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Common Shares</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:68.6pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">Unlimited</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:69.88pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">65,990,117</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:399.52pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Preferred Shares</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:68.6pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:-34.3pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:69.88pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:-36.44pt;">&nbsp;</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:399.52pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Series A ARPS</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:68.6pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">4,040</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:69.88pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">2,279</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:399.52pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Series B ARPS</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:68.6pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">4,040</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:69.88pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">2,577</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:399.52pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Series C ARPS</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:68.6pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">4,040</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:69.88pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">2,422</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:399.52pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Series D ARPS</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:68.6pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">4,040</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:69.88pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">2,300</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:399.52pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Series E ARPS</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:68.6pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">4,040</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:69.88pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">2,353</font></div> </div> </td> </tr>
<tr style="height:8.5pt;">
<td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:399.52pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Series 2051 RVMTP Shares</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:68.6pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">Unlimited</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:69.88pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">687</font></div> </div> </td> </tr> </table> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Common Shares of the Fund commenced trading on the NYSE in June 2002, under the trading or &#8220;ticker&#8221; symbol &#8220;PML.&#8221; As of the close of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">trading on the NYSE on [ ], 2023, the NAV per Common Share was $[ ], and the closing price per Common Share on the NYSE was $[ ], representing a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">premium to NAV of [ ]%.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common
Shareholders will be entitled to the payment of dividends and other distributions when, as and if declared by the Board after payment of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferential amounts payable to
holders of Preferred Shares. All Common Shares have equal rights to the payment of dividends and the distribution of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets upon liquidation after payment of the
preferential amounts payable to holders of Preferred Shares. Common Shares will, when issued, be fully </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">paid and, subject to matters discussed in &#8220;Anti-Takeover and
Other Provisions in the Declaration of Trust,&#8221; non-assessable, and will have no </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pre-emptive or conversion rights or rights to cumulative voting. Upon liquidation of
the Fund, after paying or adequately providing for the payment of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">all liabilities of the Fund and the liquidation preference with respect to any outstanding Preferred
Shares, and upon receipt of such releases, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indemnities and refunding agreements as they deem necessary for their protection, the Trustees may distribute the remaining assets
of the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">among the Fund&#8217;s Common Shareholders.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">58</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_6"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Preferred
Shares</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Declaration authorizes the issuance of an unlimited number of preferred shares. Preferred
shares may be issued in one or more classes or series, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with such par value and rights as determined by the Board of Trustees, by action of the Board of Trustees without the
approval of the Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund initially issued ARPS in five series (Series A, Series B, Series C, Series D and Series E) in August 2002, in the amount of 4,040 shares per </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">series. The ARPS have a par value of $0.00001 and liquidation value of $25,000 per share. The ARPS have various rights determined by action of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Board without the approval of Common Shareholders, most of which are specified in Article 11 of the Bylaws.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">On September 18, 2018, the Fund issued 687 variable municipal term preferred shares in a single series (the &#8220;VMTP Shares&#8221;). On June 30, 2021, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pursuant to the authority expressly vested in the Board, the Board authorized the redesignation of the Fund&#8217;s VMTP Shares as Remarketable Variable </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rate MuniFund Term Preferred Shares, Series 2051 (the &#8220;RVMTP Shares&#8221; and, together with the ARPS and any other preferred shares the Fund may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have outstanding, the &#8220;Preferred Shares&#8221;), effective July 14, 2021.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">For so long as any Preferred Shares are outstanding, the Fund generally may not declare, pay or set apart for payment any dividend or other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution (other than a dividend or distribution paid in shares of additional Common Shares or options, warrants or rights to subscribe for or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purchase Common Shares or other shares ranking junior to the Preferred Shares as to dividends or upon liquidation) in respect of Common Shares or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any other shares of the Fund ranking junior to or on a parity with the Preferred Shares as to dividends or upon liquidation, or call for redemption, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">redeem, purchase or otherwise acquire for consideration any Common Shares or any other such junior shares (except by conversion into or exchange </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for shares of beneficial interest of the Fund ranking junior to Preferred Shares as to dividends and upon liquidation) or any such parity shares (except </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by conversion into or exchange for shares of beneficial interest of the Fund ranking junior to or on a parity with Preferred Shares as to dividends and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">upon liquidation), unless and only if: (i) immediately after such transaction, the Fund would satisfy Moody&#8217;s Ratings Agency Preferred Shares Asset </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Coverage and 1940 Act Preferred Shares Asset Coverage (each as defined and described under &#8220;&#8212;Rating Agency Guidelines and Asset Coverage&#8221;); </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(ii) full cumulative dividends on the Preferred Shares due on or prior to the date of the transaction have been declared and paid or shall have been </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">declared and sufficient funds for the payment thereof deposited with the auction agent for the Preferred Shares; and (iii) the Fund has redeemed the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">full number of Preferred Shares required to be redeemed by any provision for mandatory redemption contained in the Bylaws. See &#8220;Preferred Shares </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Redemption.&#8221; Further, so long as any Preferred Shares are outstanding, the Fund generally may not declare, pay or set apart for payment any dividend </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or other distribution on any parity shares other than the Preferred Shares unless the Fund contemporaneously declares, pays or sets apart for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment, as the case may be, the same proportionate share of dividends on the Preferred Shares. The Fund expects that similar restrictions would </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">apply to any other classes of Preferred Shares that the Fund might choose to issue in the future. In addition, if the Fund has outstanding any senior </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security representing indebtedness, the 1940 Act prohibits the Fund from declaring any dividend or distribution on the Fund&#8217;s Common Shares (other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than a dividend or distribution paid in shares of additional Common Shares) unless such senior securities representing indebtedness have, at the time </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the declaration, asset coverage of at least 300% after deducting the amount of such dividend or distribution. See &#8220;Use of Leverage.&#8221;</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders of each class are entitled to one vote for each share held. Common Shareholders will vote with the
holders of any outstanding Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares as a single class on each matter submitted to a vote of holders of Common Shares, except as otherwise provided by the
Declaration, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Bylaws or applicable law. Except as otherwise provided by the Declaration, the Bylaws or applicable law, holders of Preferred Shares, voting as a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">separate class, are entitled to elect two of the Fund&#8217;s Trustees. The remaining Trustees are elected by Common Shareholders and holders of Preferred </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares, voting together as a single class. In the unlikely event that two full years of accrued dividends are unpaid on the Preferred Shares, the holders </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of all outstanding Preferred Shares, voting as a separate class, will be entitled to elect a majority of the Fund&#8217;s Trustees until all dividends in arrears </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have been paid or declared and set apart for payment. The holders of Preferred Shares also have the right to elect a majority of the Fund&#8217;s Trustees as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be required under the 1940 Act.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Preferred Shares have various rights that were approved by the Board without the approval of Common Shareholders, which are specified in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s Bylaws. Certain
rights, terms and conditions the Preferred Shares are summarized below:</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Distribution
Preference</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. Any Preferred Shares, including, without limitation, the ARPS and the RVMTP Shares, have complete priority over the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares as to distribution of assets.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Voting Rights</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. Under
the 1940 Act, Preferred Shares (including, without limitation, the ARPS and the RVMTP Shares) are required to be voting shares </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and to have equal voting rights with Common
Shares. Except as otherwise indicated in this prospectus and the Statement of Additional Information, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and except as otherwise required by applicable law, Preferred Shares
vote together with Common Shareholders as a single class.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, holders of Preferred Shares, including the ARPS and the RVMTP Shares, voting as a separate class, are entitled to elect two of the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">trustees. The remaining trustees are elected by Common Shareholders and Preferred Shareholders, voting together as a single class. In the unlikely </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event that two full years of accrued dividends are unpaid on the Preferred Shares, the holders of all outstanding Preferred Shares voting as a separate </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">59&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_7"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">class, are entitled to elect a majority of the Fund&#8217;s trustees until all dividends in arrears with respect to the Preferred Shares have been paid or </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">declared and set apart for payment. In order for the Fund to take certain actions or enter into certain transactions, a separate class vote of Preferred </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Shareholders is required, in addition to the single class vote of the holders of Preferred Shares and Common Shares.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Liquidation
Preference</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. Subject to the rights of holders of any series or class or classes of shares ranking on a parity with the Preferred Shares with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to the distribution of assets upon liquidation of the Fund, upon a liquidation of the Fund (whether voluntary or involuntary), the holders of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares then outstanding would be entitled to receive and to be paid, out of the assets of the Fund available for distribution to its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholders, before any payment or distribution would be made on the Fund&#8217;s Common Shares or any other class of shares of the Fund ranking </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">junior in right of payment upon liquidation to the Preferred Shares, an amount equal to the liquidation preference with respect to such Preferred </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares ($25,000 per share for the ARPS and $100,000 per share for the RVMTP Shares), plus an amount equal to all dividends thereon (whether or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not earned or declared by the Fund, but excluding the interest thereon) accumulated but unpaid to (but not including) the date of final distribution in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">same-day funds in connection with the liquidation of the Fund. If such assets of the Fund are insufficient to make the full liquidation payment on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding Preferred Shares, then such assets will be distributed among the holders of Preferred Shares and the holders of shares of such other class </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or series ratably in proportion to the respective preferential amounts to which they are entitled. After the payment to the holders of Preferred Shares </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the full preferential amounts provided for as described herein, the holders of Preferred Shares as such would have no right or claim to any of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">remaining assets of the Fund. For these purposes, a liquidation of the Fund does not include the sale of all or any portion of the assets of the Fund or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the merger, consolidation or statutory share exchange of the Fund into or with any trust or other entity.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As used in this
prospectus, unless otherwise noted, the Fund&#8217;s &#8220;net assets&#8221; include assets of the Fund attributable to any outstanding Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares, with no deduction
for the liquidation preference of the Preferred Shares. Solely for financial reporting purposes, however, the Fund is required </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to exclude the liquidation preference of the
Preferred Shares from &#8220;net assets,&#8221; so long as the Preferred Shares have redemption features that are not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">solely within the control of the Fund. For all
regulatory and tax purposes, the Fund&#8217;s Preferred Shares will be treated as stock (rather than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indebtedness).</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">1940 Act Asset
Coverage</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. In accordance with the Fund&#8217;s governing documents and the 1940 Act, the Fund is required to maintain certain asset </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coverage with respect to all outstanding senior securities of the Fund which are stocks for purposes of the 1940 Act, including the ARPS and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RVMTP Shares.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under the 1940 Act, the Fund is not permitted to issue preferred shares unless, immediately after such issuance, the Fund has &#8220;asset coverage,&#8221; as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">defined in Section 18(h) of the 1940 Act (&#8220;1940 Act Asset Coverage&#8221;) with respect to at least 200% of the liquidation value of any outstanding </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred shares and the newly issued preferred shares plus the aggregate amount of any senior securities of the Fund representing indebtedness </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(i.e., such liquidation value plus the aggregate amount of senior securities representing indebtedness may not exceed 50% of the Fund&#8217;s total net </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets). In addition, the Fund is not permitted to declare or pay common share dividends unless immediately thereafter the Fund has a minimum asset </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">coverage ratio of 200% with respect to all outstanding senior securities of the Fund which are stocks for purposes of the 1940 Act after deducting the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount of such common share dividends.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Issuance of Additional Preferred Shares</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. So long as any Preferred Shares are outstanding, the Fund may, without the vote or consent of the holders
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">thereof, authorize, establish and create and issue and sell shares of one or more series of Preferred Shares ranking on a parity with the ARPS and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RVMTP Shares as to the payment of dividends and the distribution of assets upon dissolution, liquidation or the winding up of the affairs of the Fund, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in addition to then outstanding series of Preferred Shares, including additional series of RVMTP Shares, and authorize, issue and sell additional shares </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of any such Series of Preferred Shares then outstanding or so established or created, including additional series of RVMTP Shares, in each case in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accordance with applicable law, provided that the Fund shall, immediately after giving effect to the issuance of such Preferred Shares and to its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">receipt and application of the proceeds thereof, including to the redemption of Preferred Shares with such proceeds, have &#8220;asset coverage,&#8221; as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">defined for the purposes of Section 18(h) of the 1940 Act, of at least 200%.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Redemption</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. Although
the Preferred Shares are subject to redemption under certain circumstances as described below, unlike the shares of an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">open-end mutual fund, the Preferred Shares may not be
redeemed at a shareholder&#8217;s option at NAV or otherwise.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">RVMTP SHARES</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Dividends</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The dividend rate paid on the RVMTP Shares is determined over the course of
&#8220;Rate Period,&#8221; which generally begins each Thursday and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ends the following Wednesday. The dividends per share for the RVMTP Shares for a given Rate Period are
dependent on the RVMTP Share dividend </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate (the &#8220;RVMTP Share Dividend Rate&#8221;) for that Rate Period. The RVMTP Share Dividend Rate for the RMVTP Shares is equal to
the greater of (i) the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sum of the &#8220;Index Rate&#8221;</font><font style="color:#323232;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">1</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> plus an &#8220;Applicable Spread&#8221;</font><font style="color:#323232;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">2</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> for the Rate Period plus the &#8220;Failed Remarketing Spread,&#8221;</font><font style="color:#323232;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">3</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> if applicable, and (ii) the sum of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(a) the product of the Index Rate multiplied by the &#8220;Applicable
Multiplier&#8221;</font><font style="color:#323232;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">4</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> for such Rate Period plus (b) 0.92% plus (c)
the Failed Remarketing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Spread, if applicable. The dividend per RVMTP Share for the Rate Period is then determined as described in the table below.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">5</font><font style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">60</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_8"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:0.0pt;margin-top:6pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;margin-left:46.7pt;width:444.6pt;" cellpadding="0" cellspacing="0">
<tr style="height:35.25pt;">
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:141.89pt;" colspan="2"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Dividend Rate</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:169.76pt;" colspan="2"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Rate Period Fraction</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:51.89pt;" colspan="2"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">RVMTP</font></div>
<div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Shares</font></div>
<div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Liquidation</font></div>
<div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Preference</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:81.05pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Dividend</font></div> </div> </td> </tr>
<tr style="height:23.75pt;">
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:126pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">Dividend Rate</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:15.89pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">X</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:153.87pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">Number of days in the Rate Period (or a part thereof)</font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">Divided by</font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">Total
number of days in the year</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:15.89pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">X</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:35.39pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">100,000</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:16.5pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">=</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:81.05pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;">Dividends per RVMTP Share</font></div> </div> </td> </tr> </table> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">RVMTP Special Terms Period</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The Fund, at its option, may designate special terms applicable
to all of the outstanding RVMTP Shares for a certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">period (a &#8220;Special Terms Period&#8221;) pursuant to a notice of special terms. Such special terms may differ from
those provided in the current governing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">documents of the RVMTP Shares and may include, without limitation, changes to the RVMTP Dividend Rate, dividend payment dates,
redemption </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provisions (including, without limitation, the RVMTP Term Redemption Date or the RVMTP Early Term Redemption Date), required Effective Leverage </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ratio, and the Preferred Shareholder Gross-Up (each as defined below); provided that such special terms do not affect the parity ranking of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RVMTP Shares to any other class or series of Preferred Shares then outstanding with respect to dividends or distribution of assets upon dissolution, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidation, or winding up of the affairs of the Fund. No Special Terms Period with respect to the RVMTP Shares will become effective unless certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions are satisfied, including that all of the RVMTP Shares are remarketed (except with respect to any RVMTP Shares whose holders have elected </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to retain their RVMTP Shares for the Special Terms Period). A Special Terms Period will not become effective before the 12-month anniversary of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">date of original issue of the RVMTP Shares.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Preferred Shareholder Gross-Up</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. As noted above, RVMTP Shares each pay dividend distributions
at stated rates, which rates are based generally on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the assumption that such dividend distributions consist entirely of &#8220;exempt-interest dividends&#8221; (as defined
below under &#8220;Taxation&#8212;Exempt-Interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Dividends&#8221;). The terms of the RVMTP Shares provide further that, in the event less than the entire amount of any
particular dividend distribution paid </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pursuant to the stated rate were to consist of &#8220;exempt-interest dividends&#8221; (i.e., if a portion of any particular dividend
were to derive from ordinary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income or capital gain, including short-term capital gain taxable as ordinary income when distributed), the amount of such dividend would
increase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by an amount (the &#8220;Preferred Shareholder Gross-Up&#8221;) such that the after-tax amount of such dividend, as increased by the Preferred Shareholder </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Gross-Up, would equal the total amount the holder of such RVMTP Shares would have received if the dividend at the stated rate had consisted </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entirely of &#8220;exempt-interest dividends.&#8221; The Preferred Shareholder Gross-Up is calculated (i) without consideration being given to the time value of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">money, (ii) assuming that no holder of RVMTP Shares is subject to the federal alternative minimum tax, and (iii) assuming that the portion of any </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividend distribution (including the amount of the Preferred Shareholder Gross-Up) that is not an exempt interest dividend would be taxable (x), in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the hands of the initial purchaser of the RVMTP Shares (or certain of its affiliates), at the maximum marginal regular federal corporate income tax </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate, and (y) in the case of any other holder, at the greater of (a) the maximum marginal regular federal individual income tax rate (taking into account </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the 3.8% Medicare contribution tax on net investment income) applicable to ordinary income or net capital gain, as applicable, or (b) the maximum </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">marginal regular federal corporate income tax rate applicable to ordinary income or net capital gain, as applicable, in each case disregarding the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">effect of any state or local taxes. Any Preferred Shareholder Gross-Up will reduce the amount that would otherwise be distributable to Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders.</font> <hr style="background-color:#000000;height:0.5pt;margin-bottom:2pt;margin-left:0%;margin-top:8.0pt;text-align:left;width:72pt;"> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:7pt;text-align:left;width:2.88pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">1</font></div>
<div style="float:left;line-height:10.0pt;margin-left:7.12pt;text-align:left;width:523.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">The &#8220;Index Rate&#8221; means the Securities Industry and Financial Markets
Association (&#8220;SIFMA&#8221;) Municipal Swap Index, or such other weekly, high-grade index comprised of seven-day, </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">tax-exempt variable rate demand notes produced by
Municipal Market Data, Inc. or its successor, or as otherwise designated by the Securities Industry and Financial Markets </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Association; provided that if the SIFMA Municipal
Swap Index is less than zero (0), the SIFMA Municipal Swap Index will be deemed to be zero (0) for purposes of the determination of </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">the Index Rate.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:7pt;text-align:left;width:2.88pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">2</font></div>
<div style="float:left;line-height:10.0pt;margin-left:7.12pt;text-align:left;width:523.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">For the RVMTP Shares, the Applicable Spread for a Rate Period is a percentage per annum
that is based on the long-term rating most recently assigned by the applicable ratings agency </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">to such RVMTP Shares.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:7pt;text-align:left;width:2.88pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">3</font></div>
<div style="float:left;line-height:10.0pt;margin-left:7.12pt;text-align:left;width:523.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">With respect to the RVMTP Shares, a Failed Remarketing Spread means (a) in the case of
a Failed Special Terms Period Remarketing (as defined below): (i) for so long as two or more </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Failed Special Terms Period Remarketings have not occurred, 0.05%, and (ii)
following the second occurrence of a Failed Special Terms Period Remarketing, 0.10% multiplied by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">number of Failed Special Terms Period Remarketings that have occurred
after the first Failed Special Terms Period Remarketing, and (b) in the case of a Failed Early Term Redemption </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Date Remarketing (as defined below): (i) 0.75% for the first 59
days following the applicable Early Term Redemption Date, (ii) 1.00% for the 60th to the 89th day following such Early </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Term Redemption Date, (iii) 1.25% for the 90th to the
119th day following such Early Term Redemption Date, (iv) 1.50% for the 120th to the 149th day following such Early Term </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Redemption Date, and (v) 1.75% for the 150th day
following such Early Term Redemption Date to the date of the associated mandatory redemption of the Series 2052-A RVMTP </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Shares. With respect to the RVMTP Shares, a
&#8220;Failed Special Terms Period Remarketing&#8221; will occur if any RVMTP Shares subject to a Mandatory Tender Event due to the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">designating a Special Terms Period
have not been either retained by the holders or successfully remarketed by the Mandatory Tender Date. In addition, with respect to the RVMTP </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Shares, a &#8220;Failed Early
Term Redemption Date Remarketing&#8221; will occur if any RVMTP Shares subject to a Mandatory Tender Event have not been either retained by the holders or </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">successfully
remarketed by the Early Term Redemption Date.</font><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:7pt;text-align:left;width:2.88pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">4</font></div>
<div style="float:left;line-height:10.0pt;margin-left:7.12pt;text-align:left;width:523.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">The Applicable Multiplier for a Rate Period is a percentage that is based on the
long-term rating most recently assigned by the applicable ratings agency to such series of the RVMTP </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Shares.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:7pt;text-align:left;width:2.88pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">5</font></div>
<div style="float:left;line-height:10.0pt;margin-left:7.12pt;text-align:left;width:523.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">An increased RVMTP Share Dividend Rate could be triggered by the Fund&#8217;s failure
to comply with certain requirements relating to the RVMTP Shares, certain actions taken by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">applicable ratings agency or certain determinations regarding the tax status of
such series of the RVMTP Shares made by a court or other applicable governmental authority. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">RVMTP Share Dividend Rate will in no event exceed 15% per year.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:8pt;line-height:10pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">61&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_9"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Additional Investment Limitations</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. Under the terms of purchase agreement between the Fund
and the initial investor in the RVMTP Shares, the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is subject to various investment limitations. These investment limitations are in addition to, and may be more
restrictive than, those to which the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is subject in accordance with its investment objective and policies as described herein and in the Statement of Additional
Information.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Effective Leverage Ratio Requirement</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. In accordance with the Bylaws, without the prior
written consent of the holders of RVMTP Shares, the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Effective Leverage Ratio may not exceed 50% (or 51% solely by reason of fluctuations in the market value of
the Fund&#8217;s portfolio securities) as of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">close of business on any business day. If the Fund fails to comply with any additional requirements relating to the
calculation of the Effective Leverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ratio requirement applicable to the RVMTP Shares and, in any such case, such failure is not cured as of the close of business on the
date that is ten </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">business days following the business day on which such non-compliance is first determined (the &#8220;Effective Leverage Ratio Cure Date&#8221;), the Fund
shall </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cause the Effective Leverage Ratio to not exceed 42.5% (or 43.5% solely by reason of fluctuations in the market value of the Fund&#8217;s portfolio </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities), by (i) not later than the close of business on the business day next following the Effective Leverage Ratio Cure Date, engaging in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions involving or relating to any floating rate securities not owned by the Fund and/or any inverse floating rate securities owned by the Fund, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including the purchase, sale or retirement thereof, (ii) to the extent permitted by law, not later than the close of business on the second business day </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">next following the Effective Leverage Ratio Cure Date, causing a notice of redemption to be issued for the redemption of a sufficient number of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares, in accordance with the terms of the Preferred Shares, or (iii) engaging in any combination, in the Fund&#8217;s discretion, of the actions </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contemplated by clauses (i) and (ii).</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Calculation of Effective Leverage Ratio</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. For purposes of determining whether the effective leverage requirement discussed above is satisfied, the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Effective Leverage Ratio&#8221; on any date shall mean the quotient of: (i) The sum of (A) the aggregate liquidation preference of the Fund&#8217;s &#8220;senior
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities&#8221; (as that term is defined in the 1940 Act) that are stock for purposes of the 1940 Act, excluding, without duplication, (1) any such senior </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities for which the Fund has issued a notice of redemption and either has delivered deposit securities or sufficient securities or funds, (as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable in accordance with the terms of such senior securities) to the paying agent for such senior securities or otherwise has adequate deposit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities or sufficient securities or funds on hand for the purpose of such redemption (as applicable in accordance with the terms of such senior </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities) and (2) any such senior securities that are to be redeemed with net proceeds from the sale of the RVMTP Shares, for which the Fund has </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">delivered deposit securities or sufficient securities or funds (as applicable in accordance with the terms of such senior securities) to the paying agent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for such senior securities or otherwise has adequate deposit securities or sufficient securities or funds on hand (as applicable in accordance with the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">terms of such senior securities) for the purpose of such redemption; (B) the aggregate principal amount of the Fund&#8217;s &#8220;senior securities representing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indebtedness&#8221; (as that term is defined in the 1940 Act giving effect to any interpretations thereof by the SEC or its staff); and (C) the aggregate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal amount of floating rate securities corresponding to any associated residual floating rate securities not owned by the Fund (less the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">aggregate principal amount of any such floating rate securities owned by the Fund and corresponding to the associated residual floating rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities owned by the Fund).</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Ratings Agency
Guidelines</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The Fund has obtained ratings for the RVMTP Shares from Fitch. For so long as Fitch is rating the RVMTP Shares, the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">has agreed to adhere to separate guidelines and asset coverage requirements specific to Fitch (&#8220;Fitch Preferred Shares Asset Coverage&#8221;) as described </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in Fitch&#8217;s published Closed-End Funds and Market Value Structures Rating Criteria (&#8220;Fitch Rating Criteria&#8221;). These guidelines may be changed by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fitch, in its sole discretion, from time to time. These guidelines impose asset coverage or portfolio composition requirements that may be more </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">stringent than those imposed on the Fund by the 1940 Act.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Satisfaction of Fitch Preferred Shares Asset Coverage for the RVMTP Shares requires that the Fund satisfy both a
&#8220;Fitch Total Overcollateralization </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Test&#8221; (&#8220;Fitch Total OC&#8221;) and a &#8220;Fitch Net Over Collateralization Test&#8221; (&#8220;Fitch Net OC&#8221;,
and together with Fitch Total OC, the &#8220;Fitch OC Tests&#8221;), in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">each case to be consistent with the then-current rating of the RVMTP Shares assigned by Fitch using
the calculations set forth in the Fitch Rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Criteria, including information therein relating to diversification guidelines as applied to the Fund.</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund has agreed
that it will adhere to the Fitch OC Tests as described above as of the close of business on the last business day of each month for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">so long as Fitch is rating the RVMTP
Shares. If the Fund fails to adhere to the Fitch OC Tests as described in the preceding sentence, the Fund will cure </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such failure (including, without limitation, by causing
a notice of redemption to be issued for the redemption of a sufficient number of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares) within ten days following the business day on which such
failure is first determined.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fitch may change its rating methodologies for evaluating and providing ratings for shares of closed-end funds at any time and in its sole discretion, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">perhaps substantially. Such a change could adversely affect the ratings assigned to the Fund&#8217;s Preferred Shares (including the RVMTP Shares), the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividend rates paid thereon, and the expenses borne by the Fund&#8217;s Common Shareholders.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Mandatory Redemptions</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The RVMTP Shares are subject to a mandatory term redemption date on July 14, 2051, subject to the Fund&#8217;s right to extend </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the term with the consent of the holders of the RVMTP Shares (the &#8220;RVMTP Share Term Redemption Date&#8221;). There is no assurance that the term of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the RVMTP Shares will be extended.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition, with respect to the RVMTP Shares, a &#8220;Mandatory Tender Event&#8221; will occur on each date that
is (i) 20 business days before each three-year </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">anniversary of the date of original issue of such series of the RVMTP Shares, (ii) the date the Fund delivers a notice
designating a Special Terms Period, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and (iii) 20 business days before the end of a Special Terms Period (provided that no subsequent Terms Period is designated). If any
RVMTP Shares </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">62</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_10"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">subject to a Mandatory
Tender Event upon a three-year anniversary of the date of original issue of the RVMTP Shares or upon the end of a Special </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Terms Period (each, an &#8220;RVMTP Early Term
Redemption Date&#8221;) have not been either retained by the holders or remarketed by the Mandatory Tender </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Date, the Fund will redeem such RVMTP Shares on the RVMTP Early
Term Redemption Date.6</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The RVMTP Shares are also subject to mandatory redemption by the Fund, in whole or in part, in certain circumstances, such as the failure by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund to comply with asset coverage and/or effective leverage ratio requirements described above (and the failure to cure any such failure within the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable cure period) or certain actions taken by the applicable ratings agency.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Term Redemption and Early Term Redemption Liquidity Account</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. At least six months prior to the RVMTP Share Redemption Date, or the RVMTP Early </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Term Redemption Date (each,
a &#8220;Redemption Date&#8221;), the Fund will maintain segregated assets of a minimum credit rating quality with a market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value equal to at least 110% of the redemption
price of all outstanding RVMTP Shares to be redeemed until the redemption of all such outstanding </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RVMTP Shares, as applicable. The Fund will include certain liquid and/or
highly rated assets in an amount equal to 20% of such segregated assets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with five months remaining to the Redemption Date, which amount will increase monthly by 20% and
reach 100% with one month remaining to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Redemption Date.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Optional redemption</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">.
The Fund may redeem, in whole or from time to time in part, the outstanding RVMTP Shares at a redemption price per share </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">equal to (i) the liquidation preference of the RVMTP
Shares, as applicable, plus (ii) an amount equal to all unpaid dividends and other distributions on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such RVMTP Shares, as applicable, accumulated from and including the date
of issuance to (but excluding) the date of redemption (whether or not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">earned or declared by the Fund, but without interest thereon) plus (iii) any applicable optional
redemption premium.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">RVMTP Mandatory Tender</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. Upon the occurrence of a Mandatory Tender Event with respect to a
series of RVMTP Shares, all RVMTP Shares in such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">series will be subject to mandatory tender (subject to the holders&#8217; election to retain their RVMTP Shares) and the
Fund will issue or cause to be issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a notice of mandatory tender to the holders of such RVMTP Shares for remarketing on the Mandatory Tender Date.</font></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">ARPS</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Dividends</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The ARPS have complete priority over the Common Shares as to distribution of
assets and equal priority with the RVMTP Shares. The terms </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the ARPS provide that they would ordinarily pay dividends at a rate set at auctions held every seven days,
normally payable on the first business day </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">following the end of the rate period, subject to a &#8220;maximum applicable rate&#8221; calculated as a function of the
ARPS&#8217; then-current ratings and a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reference interest rate as described below. However, the weekly auctions for the ARPS, as well as auctions for similar preferred
shares issued by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">closed-end funds in the U.S., have failed since February 2008, and the dividend rates on the ARPS since that time have been paid at the maximum </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable rate under the Bylaws. Ratings agencies may change their methodologies for evaluating and providing ratings for shares of closed-end </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">funds at any time and in their sole discretion, which may affect the rating (if any) of the Fund&#8217;s shares. Fitch Ratings published ratings criteria relating </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to closed-end funds on December 4, 2020, which effectively result in a rating cap of &#8220;AA&#8221; for debt and preferred stock issued by all closed-end funds </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and a rating cap of &#8220;A&#8221; for (i) debt and preferred shares issued by closed-end funds exposed to emerging market debt, below-investment-grade and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unrated debt, structured securities and equity, (ii) and closed-end funds with material exposure to &#8220;BBB&#8221; category rated assets. The long-term rating </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">actions were driven by changes in the updated ratings criteria for closed-end funds rather than by any fundamental changes to the Fund&#8217;s credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">profile. The Fund expects that the ARPS will continue to pay dividends at the maximum applicable rate for the foreseeable future and cannot predict </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">whether or when the auction markets for the ARPS may resume normal functioning.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As noted, the &#8220;maximum applicable rate&#8221; for each series of ARPS depends on the credit ratings assigned to such shares. The maximum applicable rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for any regular rate period (i.e., any rate period other than a non-payment period) will be the applicable percentage of the reference rate. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reference rate is the applicable &#8220;AA&#8221; Financial Composite Commercial Paper Rate (for a Dividend Period of fewer than 184 days) or the applicable </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Treasury Index Rate (for a Dividend Period of 184 days or more). The applicable percentage for any Dividend Period is generally determined based on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the lower of the credit ratings assigned to the ARPS by Moody&#8217;s or Fitch on the auction date for such period (as set forth in the table below).</font><font
style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;width:538pt;" cellpadding="0" cellspacing="0">
<tr style="height:14.25pt;">
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:397.49pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;margin-left:0.0pt;">Moody&#8217;s Credit Rating</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:66.29pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Fitch Credit Rating</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:74.22pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Applicable Percentage</font></div> </div> </td> </tr>
<tr style="height:11.25pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:397.49pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Aa3 or above</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:66.29pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">AA- or above</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:74.22pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">150%</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:397.49pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">A3 to A1</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:66.29pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">A- to A+</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:74.22pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">160%</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:397.49pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Baa3 to Baa1</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:66.29pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">BBB- to BBB+</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:74.22pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">250%</font></div> </div> </td> </tr>
<tr style="height:8.5pt;">
<td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:397.49pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Below Baa3</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:66.29pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Below BBB-</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:74.22pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">275%</font></div> </div> </td> </tr> </table> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Ratings Agency Preferred Shares Asset Coverage</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. The Fund is required under the Bylaws to
satisfy separate asset coverage tests specific to each rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency (the &#8220;Ratings Agency Preferred Shares Asset Coverage&#8221;).</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Moody&#8217;s Preferred Shares Asset Coverage</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. Satisfaction of Moody&#8217;s Ratings Agency Preferred Shares Asset Coverage generally requires the Fund to
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have eligible assets having in the aggregate a discounted value equal to or in excess of a &#8220;Preferred Shares Basic Maintenance Amount.&#8221; Generally, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Preferred Shares Basic Maintenance Amount includes the sum of (a) the aggregate liquidation preference of the Fund&#8217;s Preferred Shares then </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding (including the ARPS) and (b) certain accrued and projected payment obligations of the Fund, including without limit any accrued and </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">63&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_11"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">projected dividends on its Preferred Shares then outstanding (including the ARPS). Article 11 of the Bylaws includes Moody&#8217;s-specific guidelines for </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">calculating discounted value for purposes of determining whether the Moody&#8217;s Ratings Agency Preferred Shares Asset Coverage test is satisfied. These </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">guidelines specify discount factors that the Fund must apply to various types of securities in its portfolio for purposes of calculating whether the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">discounted value of the Fund&#8217;s eligible assets is at least equal to the Preferred Shares Basic Maintenance Amount (with the level of discount generally </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">becoming greater as the credit quality of a security becomes lower). In addition, under the Moody&#8217;s guidelines, certain types of securities (including </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities in which the Fund may otherwise invest) are not eligible for inclusion in the calculation of the discounted value of the Fund&#8217;s portfolio. The </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s guidelines for calculating discounted value do not impose any limitations on the percentage of the Fund&#8217;s assets that may be invested in </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">ineligible assets, and the amount of ineligible assets included in the Fund&#8217;s portfolio at any time may vary depending upon the rating, diversification </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and other characteristics of the Moody&#8217;s eligible assets included in the portfolio.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Fitch Preferred Shares Asset Coverage</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. Satisfaction of Fitch Preferred Shares Asset Coverage
requires that the Fund satisfy both a &#8220;Fitch Total </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Overcollateralization Test (&#8220;Fitch Total OC&#8221;) and a &#8220;Fitch Net Over Collateralization Test
(&#8220;Fitch Net OC&#8221;), in each case to be consistent with the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">then-current rating from Fitch. Under the Bylaws, Fitch Preferred Shares Asset Coverage is satisfied if,
as of a particular date or time, the Fund has </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sufficient asset coverage with respect to the Preferred Shares such that the Fund satisfies both the (i) Fitch Total OC test
and the (ii) Fitch Net OC test </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as of such date or time. The Fitch Total OC test and the Fitch Net OC test are satisfied if the Fund has Fitch Total OC or Fitch Net OC, as
the case may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be, in excess of one-hundred percent (100%) pursuant to the applicable formula below.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s Bylaws incorporate by reference the Closed-End Fund Criteria Report issued by Fitch entitled
&#8220;Rating Closed-End Fund and Market Value </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Structures Rating Criteria&#8221; or similar future report most recently published by Fitch and approved for use by the Trust
by resolution of the Board of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Trustees of the Trust (the &#8220;Fitch Criteria&#8221;). The Fitch Criteria include, among other things, the current formulations for
satisfaction of the Fitch Total OC </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">test and the Fitch Net OC test, asset discount factors (used in part to calculate Fitch Total OC and Fitch Net OC), issuer and industry
diversification and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">concentration thresholds and guidelines and a description of other rating considerations.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fitch Criteria define Fitch Total OC and Fitch Net OC as follows:</font><font
style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:209.5pt;" cellpadding="0" cellspacing="0">
<tr style="height:12.5pt;">
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:43.06pt;" rowspan="2"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Arial Narrow;font-size:8pt;">Fitch Total OC</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:10.8pt;" rowspan="2"> <div style="line-height:10pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;">=</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:2.375pt;padding-top:2.375pt;vertical-align:Top;width:155.65pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="margin-left:3pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;">Total Net Discounted Assets at MV*</font></div> </div> </td> </tr>
<tr style="height:19.5pt;">
<td style="background-color:azure;border-bottom:0.5pt solid #000000;padding-bottom:2.375pt;padding-top:2.375pt;vertical-align:Top;width:155.65pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="margin-left:3pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;">Fitch Rated Liability + Other Liabilities Pari Passu and</font></div>
<div style="margin-left:3pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Arial Narrow;font-size:8pt;">Senior to Rated Liability</font></div> </div> </td> </tr> </table> </div> <div>
<div style="clear:both;margin-top:2pt;position:relative;width:100%;"> <div style="float:left;line-height:10.0pt;text-align:left;width:3.84pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-style:italic;">* </font></div>
<div style="float:left;line-height:10.0pt;margin-left:6.16pt;text-align:left;width:523.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-style:italic;">Total net discounted assets at market value (MV) equal total
portfolio assets at MV and accrued income, including assets held as collateral for other Fund liabilities, less nonleverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-style:italic;">liabilities that are not part of
a rolling leverage strategy (such as to-be-announced, or TBA, securities, futures and forwards, among others), then discounted pursuant to the Fitch
</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;font-style:italic;">discount factors specified in the Fitch Criteria and adjusted per Fitch&#8217;s criteria discussed in the Fitch Criteria.</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In the event the Fund does not timely cure a failure to
maintain (a) both Moody&#8217;s Ratings Agency Preferred Shares Asset Coverage and Fitch Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shares Asset Coverage or (b) 1940 Act Preferred Shares Asset Coverage, in
each case in accordance with the requirements of the rating agency or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agencies then rating the ARPS, the Fund will be required to redeem ARPS as described under
&#8220;Mandatory Redemption&#8221; below.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In addition to the requirements described above, the rating
agency guidelines impose restrictions or limitations on the Fund&#8217;s use of certain financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments or investment techniques that the Fund might otherwise utilize
in order to obtain and maintain a rating from Moody&#8217;s and Fitch on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ARPS. It is not currently anticipated that these guidelines will materially impede PIMCO from
managing the Fund&#8217;s portfolio in accordance with the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment objective and policies.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may, but is not required to, adopt any modifications to the guidelines that may be established by
Moody&#8217;s and/or Fitch with respect to their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings of the ARPS. Failure to adopt any such modifications, however, may result in a reduction in the rating described
above or a withdrawal of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating altogether. In addition, any rating agency providing a rating for the ARPS may, at any time, change or withdraw any such rating. The Board
may, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">without shareholder approval, amend, alter or repeal various definitions and related provisions that have been adopted by the Fund pursuant to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating agency guidelines in the event the Fund receives written confirmation from Moody&#8217;s or Fitch (or any substitute rating agency) that any such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amendment, alteration or repeal would not impair the rating then assigned by the rating agency to the ARPS.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The ratings of the ARPS are based on current information furnished to Moody&#8217;s and Fitch by the Fund or the Investment Manager or information </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obtained from other sources. The ratings may be changed, suspended or withdrawn as a result of changes in, or the unavailability of, such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information. The Common Shares have not been rated by any NRSROs. A rating agency&#8217;s guidelines will apply to the ARPS Shares only so long as the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating agency is rating the shares.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund pays certain fees to Moody&#8217;s and Fitch for rating the ARPS. The foregoing description of the rating agency guidelines and asset coverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements applicable
to the ARPS is intended only as a summary and is qualified in its entirety by reference to the actual terms of Article 11 and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other relevant provisions of the Bylaws and
Exhibit 1 thereto.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Mandatory redemption</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. As noted above, the Fund is required under the Bylaws to maintain (a) Moody&#8217;s Ratings Agency Preferred Shares Asset </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Coverage, (b) Fitch Preferred Shares Asset Coverage, and (c) 1940 Act Asset Coverage. Eligible portfolio securities for the purposes of (a) and (b) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">above will be determined from time to time by the rating agency then rating the then outstanding ARPS. If the Fund fails to maintain such asset </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">64</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_12"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">coverage amounts and does
not timely cure such failure in accordance with the Bylaws, the Fund would be required to redeem all or a portion of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">ARPS. This mandatory redemption would take place on
a date that the Board specifies out of legally available funds in accordance with the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Declaration, the Bylaws and applicable law, at the redemption price of $25,000 per
share, plus accumulated but unpaid dividends (whether or not </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">earned or declared) to (but not including) the date fixed for redemption. In determining the number of Preferred
Shares required to be redeemed in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">accordance with the foregoing, the Fund would redeem the lesser of (a) the minimum number of ARPS necessary to satisfy the Ratings Agency
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Preferred Shares Asset Coverage or 1940 Act Preferred Shares Asset Coverage, as the case may be, and (b) the maximum number of ARPS and any </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">other Preferred Shares of the Fund subject to redemption or retirement that can be redeemed out of funds expected to be legally available therefor at </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the time of redemption, and in any case will redeem such Preferred Shares pro rata among the Preferred Shares subject to redemption or retirement. </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The mandatory redemption will be limited to the number of ARPS and any other Preferred Shares necessary to restore the required Ratings Agency </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Preferred Shares Asset Coverage or 1940 Act Preferred Shares Asset Coverage, as the case may be.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Optional redemption</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">. To the extent permitted under the 1940 Act and under Massachusetts law,
upon giving notice of redemption, as provided </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">below, the Fund, at its option, may redeem Preferred Shares, in whole or in part, out of funds legally available therefore, at
the Optional Redemption </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Price (as defined below) per share on any dividend payment date, provided that no Preferred Shares may be redeemed at the option of the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">during (a) the initial rate period with respect to the Preferred Shares or (b) a non-call period to which such shares are subject. &#8220;Optional Redemption </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Price&#8221; means $25,000 per Preferred Share plus an amount equal to accumulated but unpaid dividends (whether or not earned or declared) to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">date fixed for redemption plus the applicable redemption premium, if any. The Fund has the authority to redeem Preferred Shares for any reason and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may redeem all or part of the outstanding Preferred Shares if it anticipates that the Fund&#8217;s leveraged capital structure will result, for a significant </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">period of time, in a lower rate of return to Common Shareholders than that obtainable if the Common Shares were not so leveraged.</font></div>
<div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Plan of Distribution</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may sell Common Shares through underwriters or dealers, directly to one or more purchasers (including existing shareholders in a rights </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offering), through agents, to or through underwriters or dealers, or through a combination of any such methods of sale. The applicable prospectus </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">supplement will identify any underwriter or agent involved in the offer and sale of the Common Shares, any sales loads, discounts, commissions, fees </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or other compensation paid to any underwriter, dealer or agent, the offering price, net proceeds and use of proceeds and the terms of any sale.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The distribution of the Common Shares may be effected from time to time in one or more transactions at a fixed price
or prices, which may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changed, at prevailing market prices at the time of sale, at prices related to such prevailing market prices, or at negotiated prices. The sale of
Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares by the Fund (or the perception that such sales may occur), particularly if sold at a discount to the then-current market price of the Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares, may have an adverse effect on the market price of the Common Shares.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may sell the Common Shares directly to, and solicit offers from, institutional investors or others who may be deemed to be underwriters as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">defined in the Securities Act for any resales of the securities. In this case, no underwriters or agents would be involved. The Fund may use electronic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">media, including the Internet, to sell offered securities directly.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In connection with the sale of the Common Shares, underwriters or agents may receive compensation from the Fund or from PIMCO or its affiliates in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the form of discounts, concessions or commissions. Underwriters may sell Common Shares to or through dealers, and such dealers may receive </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">compensation in the form of discounts, concessions or commissions from the underwriters and/or commissions from the purchasers for whom they </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may act as agents. Underwriters, dealers and agents that participate in the distribution of the Common Shares may be deemed to be underwriters </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under the Securities Act, and any discounts and commissions they receive from the Fund and any profit realized by them on the resale of the Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares may be deemed to be underwriting discounts and commissions under the Securities Act. Any such underwriter or agent will be identified and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any such compensation received from the Fund will be described in the applicable prospectus supplement. The maximum amount of compensation to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be received by any Financial Industry Regulatory Authority member or independent broker-dealer will not exceed 8% for the sale of any securities </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">being registered pursuant to Rule 415 under the Securities Act. The Fund will not pay any compensation to any underwriter or agent in the form of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">warrants, options, consulting or structuring fees or similar arrangements.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">If a prospectus supplement so indicates, the Fund may grant the underwriters an option to purchase additional Common Shares at the public offering </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">price, less the underwriting discounts and commissions, within a certain number of days (often 30 to 45 days) from the date of the prospectus </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">supplement, to cover any over-allotments.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under agreements into which the Fund may enter, underwriters, dealers and agents who participate in the distribution
of the Common Shares may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entitled to indemnification by the Fund against certain liabilities, including liabilities under the Securities Act. Underwriters, dealers and
agents may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">engage in transactions with the Fund, or perform services for the Fund, in the ordinary course of business.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">If so indicated in the applicable prospectus supplement, the Fund will, or will authorize underwriters or other
persons acting as its agents to, solicit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offers by certain institutions to purchase Common Shares from the Fund pursuant to contracts providing for payment and delivery on a
future date. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Institutions with which such contracts may be made include commercial and savings banks, insurance companies, pension funds, investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies, educational and charitable institutions and others, but in all cases such institutions must be approved by the Fund. The obligation of any </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">65&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_13"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">purchaser under any such contract will be subject to the condition that the purchase of the Common Shares shall not at the time of delivery be </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">prohibited under the laws of the jurisdiction to which such purchaser is subject. The underwriters and such other agents will not have any </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">responsibility in respect of the validity or performance of such contracts. Such contracts will be subject only to those conditions set forth in the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">prospectus supplement, and the prospectus supplement will set forth the commission payable for solicitation of such contracts.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To the extent permitted under the 1940 Act and the rules and regulations promulgated thereunder, the underwriters
may from time to time act as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">brokers or dealers and receive fees in connection with the execution of the Fund&#8217;s portfolio transactions after the underwriters have
ceased to be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underwriters and, subject to certain restrictions, each may act as a broker while it is an underwriter.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A prospectus and accompanying prospectus supplement in electronic form may be made available on the websites
maintained by underwriters. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underwriters may agree to allocate a number of securities for sale to their online brokerage account holders. Such allocations of securities
for Internet </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions will be made on the same basis as other allocations. In addition, securities may be sold by the underwriters to securities dealers who </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">resell securities to online brokerage account holders.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In order to comply with the securities laws of certain states, if applicable, Common Shares offered hereby will be sold in such jurisdictions only </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through registered or licensed brokers or dealers.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Market and Net Asset Value Information</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s Common Shares are listed on the NYSE under the trading or &#8220;ticker&#8221; symbol &#8220;PML&#8221;. The Fund&#8217;s Common Shares commenced trading on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the NYSE in June 2002. The Fund cannot predict whether its Common Shares will trade in the future at a premium or discount to NAV. The conduct of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any offering and the issuance of additional Common Shares pursuant to any offering may have an adverse effect on prices in the secondary market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for the Fund&#8217;s Common Shares by increasing the number of shares available, which may put downward pressure on the market price for the Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares. The NAV of the Fund&#8217;s Common Shares will be reduced immediately following an offering by the sales load, commissions and offering </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">NAV per Common Share for all existing Common Shareholders.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The following table sets forth, for each of the periods indicated, the high and low closing market prices of the
Fund&#8217;s Common Shares on the NYSE, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the high and low NAV per Common Share and the high and low premium/discount to NAV per Common Share. See &#8220;Net Asset
Value&#8221; for information </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as to how the Fund&#8217;s NAV is determined.</font><font style="color:#000000;font-family:Arial Narrow;font-size:1pt;">&#8195;</font></div>
<div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="border-bottom:0.5pt solid #00687D;empty-cells:show;width:538pt;" cellpadding="0" cellspacing="0">
<tr style="height:21.25pt;">
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:364.31pt;"> <div style="line-height:0.5pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:51.6pt;" colspan="2"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Common share</font></div>
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">market price</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:4.5pt;font-weight:bold;position:relative;top:-2.75pt;">(1)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:51.6pt;" colspan="2"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Common share</font></div>
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">net asset value</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:70.52pt;" colspan="2"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Premium (discount) as</font></div>
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">a % of net asset value</font></div> </div> </td> </tr>
<tr style="height:11.5pt;">
<td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:364.31pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;margin-left:0.0pt;">Quarter</font></div> </div> </td>
<td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:25.8pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">High</font></div> </div> </td>
<td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:25.8pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Low</font></div> </div> </td>
<td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:25.8pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">High</font></div> </div> </td>
<td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:25.8pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Low</font></div> </div> </td>
<td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:35.26pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">High</font></div> </div> </td>
<td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:35.26pt;"> <div style="line-height:8.0pt;text-align:left;">
<div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font style="color:#00687D;font-family:Arial Narrow;font-size:7pt;font-weight:bold;">Low</font></div> </div> </td> </tr>
<tr style="height:11.25pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:364.31pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Quarter ended December 31, 2022</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">$9.89</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">$8.58</font><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;line-height:7.5pt;"> </font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">$9.13</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">$8.03</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">14.60%</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">2.83%</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:364.31pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Quarter ended September 30, 2022</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.10</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">$9.53</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$10.12</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">$8.42</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">20.64%</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">12.74%</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:364.31pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Quarter ended June 30, 2022</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$11.82</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$10.12</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$10.78</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">$9.14</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">16.48%</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">2.22%</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:364.31pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Quarter ended March 31, 2022</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$14.55</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$11.20</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.37</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$10.70</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">19.55%</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">3.99%</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:364.31pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Quarter ended December 31, 2021</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$14.83</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$13.86</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.42</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.15</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">19.58%</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">13.51%</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:364.31pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Quarter ended September 30, 2021</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$15.31</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$14.74</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.77</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.32</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">20.72%</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">16.72%</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:364.31pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Quarter ended June 30, 2021</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$15.08</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$14.53</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.68</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.26</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">22.02%</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">16.48%</font></div> </div> </td> </tr>
<tr style="height:8.5pt;">
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:364.31pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Quarter ended March 31, 2021</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$15.35</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$14.15</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.65</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.8pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;">$12.14</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">21.67%</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:35.26pt;"> <div style="line-height:7.5pt;text-align:left;"> <div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#3F3F3F;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.00pt;">13.63%</font></div> </div> </td> </tr> </table> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:7pt;text-align:left;width:2.88pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:5pt;position:relative;top:0;">1</font></div>
<div style="float:left;line-height:10.0pt;margin-left:7.12pt;text-align:left;width:523.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Such prices reflect inter-dealer prices, without retail mark-up, mark-down or
commission and may not represent actual transactions.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s NAV per Common share at the close of business on [ ], 2023 was $[ ] and the last reported sale price of a Common Share on the NYSE on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that day was $[ ], representing a [ ]% [premium] to such NAV.</font></div> <div style="line-height:14.0pt;margin-top:10.0pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Anti-Takeover and Other Provisions in the Declaration of Trust and Bylaws</font></div> <div style="line-height:12.0pt;margin-top:10.0pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Anti-Takeover Provisions</font></div> <div style="line-height:12.0pt;margin-top:2.0pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Declaration and the Bylaws include provisions that could limit the ability of other entities or persons to acquire control of the Fund or to convert </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund to open-end status. The Fund&#8217;s Trustees are divided into three classes. At each annual meeting of shareholders, the term of one class will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expire and each Trustee elected to that class will hold office until the third annual meeting thereafter. The classification of the Board in this manner </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could delay for an additional year the replacement of a majority of the Board. In addition, the Declaration provides that a Trustee may be removed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">only for cause and only (i) by action of at least seventy-five percent (75%) of the outstanding shares of the classes or series of shares entitled to vote </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for the election of such Trustee, or (ii) by written instrument, signed by at least seventy-five percent (75%) of the remaining Trustees, specifying the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">date when such removal shall become effective. Cause for these purposes shall require willful misconduct, dishonesty or fraud on the part of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Trustee in the conduct of his or her office or such Trustee being convicted of a felony.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">66</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_14"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As described below, the
Declaration grants special approval rights with respect to certain matters to members of the Board who qualify as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Continuing Trustees,&#8221; which term means a
Trustee who either (i) has been a member of the Board since the date when Common Shares are first sold </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pursuant to a public offering or (ii) was nominated to serve as a
member of the Board, or designated as a Continuing Trustee, by a majority of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Continuing Trustees then members of the Board.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Declaration requires the affirmative vote or consent of at least seventy-five percent (75%) of the Board and
holders of at least seventy-five </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">percent (75%) of the Fund&#8217;s shares to authorize certain Fund transactions not in the ordinary course of business, including a merger
or consolidation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or share exchange, any shareholder proposal as to specific investment decisions made or to be made with respect to the assets of the Fund, a sale, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lease, exchange, mortgage, pledge, transfer or other disposition by the Fund or any series or class of shares (in one or a series of transactions in any </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">twelve-month period) to or with any person of any assets of the Fund or such series or class having an aggregate fair market value of $1,000,000 or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more, except for transactions in securities effected by the Fund or a series or class in the ordinary course of business, or issuance or transfer by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund of the Fund&#8217;s shares having an aggregate fair market value of $1,000,000 or more (except as may be made pursuant to a public offering, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Plan or upon exercise of any stock subscription rights), unless the transaction is authorized by both a majority of the Trustees and seventy-five percent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(75%) of the Continuing Trustees (in which case no shareholder authorization would be required by the Declaration, but may be required in certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cases under the 1940 Act). The Declaration also requires the affirmative vote or consent of holders of at least seventy-five percent (75%) of each class </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund&#8217;s shares entitled to vote on the matter to authorize a conversion of the Fund from a closed-end to an open-end investment company, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unless the conversion is authorized by both a majority of the Trustees and seventy-five percent (75%) of the Continuing Trustees (in which case </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholders would have only the minimum voting rights required by the 1940 Act with respect to the conversion). Also, separate from the limited </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">term provision, the Declaration provides that the Fund may be terminated at any time by vote or consent of at least seventy-five percent (75%) of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s shares or, alternatively, by vote or consent of both a majority of the Trustees and seventy-five percent (75%) of the Continuing Trustees. See </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Anti-Takeover and Other Provisions in the Declaration of Trust and Bylaws&#8221; in the Statement of Additional Information for a more detailed summary </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of these provisions.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Board may from
time to time grant other voting rights to shareholders with respect to these and other matters in the Bylaws, certain of which are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">required by the 1940 Act.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The overall effect of these provisions is to render more difficult the accomplishment of a merger or the assumption
of control of the Fund by a third </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">party. These provisions also provide, however, the advantage of potentially requiring persons seeking control of the Fund to negotiate with
its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management regarding the price to be paid and facilitating the continuity of the Fund&#8217;s investment objective and policies. The provisions of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Declaration and the Bylaws described above could have the effect of depriving the Common Shareholders of opportunities to sell their Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares at a premium over the then-current market price of the Common Shares by discouraging a third party from seeking to obtain control of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund in a tender offer or similar transaction. The Board has considered the foregoing anti-takeover provisions and concluded that they are in the best </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interests of the Fund and its shareholders, including Common Shareholders.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The foregoing is intended only as a summary and is qualified in its entirety by reference to the full text of the Declaration and the Bylaws, both of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which are on file with the SEC.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Shareholder Liability</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Under Massachusetts law, shareholders could, in certain circumstances, be held personally liable for the obligations
of the Fund. However, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Declaration contains an express disclaimer of shareholder liability for acts or obligations of the Fund and requires that notice of such limited
liability </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be given in each agreement, obligation or instrument entered into or executed by the Fund or the Trustees. The Declaration further provides for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indemnification out of the assets and property of the Fund for all loss and expense of any shareholder held personally liable for the obligations of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the Fund would be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unable to meet its obligations. The Fund believes that the likelihood of such circumstances is remote.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Derivative and Direct Claims of Shareholders</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A shareholder may not bring or maintain any court action, proceeding or claim on behalf of the Fund or any series or class of shares without first </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">making demand on the Trustees requesting the Trustees to bring or maintain such action, proceeding or claim. Such demand shall not be excused </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under any circumstances, including claims of alleged interest on the part of the Trustees, unless the plaintiff makes a specific showing that irreparable </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nonmonetary injury to the Trust or series or class of shares would otherwise result. The Trustees shall consider such demand within 45 days of its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">receipt by the Fund. In their sole discretion, the Trustees may submit the matter to a vote of shareholders of the Fund or a series or class of shares, as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appropriate. Any decision by the Trustees to bring, maintain or settle (or not to bring, maintain or settle) such court action, proceeding or claim, or to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">submit the matter to a vote of shareholders shall be made by the Trustees in their business judgment and shall be binding upon the shareholders.</font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">67&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_15"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A shareholder may not bring or maintain a direct action or claim for monetary damages against the Fund or the Trustees predicated upon an express </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or implied right of action under the Declaration or the 1940 Act (excepting rights of action permitted under Section 36(b) of the 1940 Act), nor shall </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any single shareholder, who is similarly situated to one or more other shareholders with respect to the alleged injury, have the right to bring such an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">action, unless such shareholder has obtained authorization from the Trustees to bring the action. The requirement of authorization shall not be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">excused under any circumstances, including claims of alleged interest on the part of the Trustees, unless the plaintiff makes a specific showing that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">irreparable nonmonetary injury to the Trust or series or class of shares would otherwise result. The Trustees shall consider such request within 45 days </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of its receipt by the Fund. In their sole discretion, the Trustees may submit the matter to a vote of shareholders of the Fund or series or class of shares, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">as appropriate. Any decision by the Trustees to settle or to authorize (or not to settle or to authorize) such court action, proceeding or claim, or to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">submit the matter to a vote of shareholders, shall be made in their business judgment and shall be binding on all shareholders.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Any person purchasing or otherwise acquiring or holding any interest in shares of beneficial interest of the Fund
will be deemed to have notice of and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consented to the foregoing provisions. These provisions may limit a shareholder&#8217;s ability to bring a claim against the Trustees,
officers or other agents </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund and its service providers, which may discourage such lawsuits with respect to such claims.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">These provisions in the Declaration regarding derivative and direct claims of shareholders shall not apply to claims
made under federal securities laws.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Repurchase of Common Shares; Conversion to
Open-End Fund</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund is a closed-end investment company and as such its shareholders will not have
the right to cause the Fund to redeem their shares. Instead, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Common Shares will trade in the open market at a price that will be a function of factors relating to the
Fund such as dividend levels and stability </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(which will in turn be affected by Fund expenses, including the costs of any TOBs,&nbsp; reverse repurchase agreements, dollar
rolls/buy backs, borrowings, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred shares and other leverage used by the Fund, levels of dividend and interest payments by the Fund&#8217;s portfolio holdings, levels of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appreciation/depreciation of the Fund&#8217;s portfolio holdings, regulation affecting the timing and character of the Fund&#8217;s distributions and other factors), </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio credit quality, liquidity, call protection, market supply and demand and similar factors relating to the Fund&#8217;s portfolio holdings. The market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">price of the Common Shares may also be affected by general market or economic conditions, including market trends affecting securities values </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally or values of closed-end fund shares more specifically. Shares of a closed-end investment company may frequently trade at prices lower than </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">NAV. The Fund&#8217;s Board of Trustees regularly monitors the relationship between the market price and NAV of the Common Shares. If the Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares were to trade at a substantial discount to NAV for an extended period of time, the Board of Trustees may consider the repurchase of its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares on the open market or in private transactions, the making of a tender offer for such shares or the conversion of the Fund to an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">open-end investment company. The Fund cannot assure you that its Board of Trustees will decide to take or propose any of these actions, or that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">share repurchases or tender offers will actually reduce any market discount. See &#8220;Tax Matters&#8221; in the Statement of Additional Information for a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">discussion of the tax implications of a tender offer by the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">If the Fund were to convert to an open-end company, the Common Shares likely would no longer be listed on the NYSE. In contrast to a closed-end </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment company, shareholders of an open-end investment company may require the company to redeem their shares at any time (except in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain circumstances as authorized by or under the 1940 Act) at their NAV, less any redemption charge that is in effect at the time of redemption.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Before deciding whether to take any action to convert the Fund to an open-end investment company, the Board of
Trustees would consider all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relevant factors, including the extent and duration of the discount, the liquidity of the Fund&#8217;s portfolio, the impact of any action that
might be taken </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on the Fund or its shareholders, and market considerations. Based on these considerations, even if the Common Shares should trade at a discount, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Board of Trustees may determine that, in the interest of the Fund and its shareholders, no action should be taken. See the Statement of Additional </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Information under &#8220;Repurchase of Common Shares; Conversion to Open-End Fund&#8221; for a further discussion of possible action to reduce or eliminate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any such discount to NAV.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Tax Matters</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">This
section summarizes some of the U.S. federal income tax consequences to U.S. persons of investing in the Fund; the consequences under other tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">laws and to non-U.S.
shareholders may differ.&nbsp;This summary is based on the Code, U.S. Treasury regulations, and other applicable authority, all as of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the date of this prospectus. These
authorities are subject to change by legislative or administrative action, possibly with retroactive </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">effect.&nbsp;Shareholders should consult their tax advisors as to the
possible application of federal, state, local or non-U.S. income tax laws. Please see the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Statement of Additional Information for additional information regarding the tax
aspects of investing in the Fund.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Taxation of the Fund</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund has elected to be treated, and intends each year to qualify and be eligible to be treated, as a
&#8220;regulated investment company&#8221; under </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Subchapter M of the Code. A RIC is not subject to U.S. federal income tax at the corporate level on income and gains from
investments that are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributed in a timely manner to shareholders in the form of dividends. The Fund&#8217;s failure to qualify as a RIC would result in corporate-level
taxation, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">thereby reducing the return on your investment.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">68</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_16"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As described under
&#8220;Use of Leverage&#8221; above, if at any time when preferred shares or other senior securities are outstanding the Fund does not meet </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable asset coverage
requirements, it will be required to suspend distributions to Common Shareholders until the requisite asset coverage is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restored. Any such suspension may cause the Fund to
pay a U.S. federal income and excise tax on undistributed income or gains and may, in certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">circumstances, prevent the Fund from qualifying for treatment as a RIC. The
Fund may repurchase or otherwise retire preferred shares or other senior </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, as applicable, in an effort to comply with the distribution requirement applicable to
RICs.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Distributions</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund intends to make monthly distributions of net investment income. The municipal bonds in which the Fund
primarily invests are generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued by states, cities, or a political subdivision, agency, authority or instrumentality of such state or city, the interest on which is
generally exempt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from regular federal income tax, and Fund distributions of such interest that the Fund properly reports to you as &#8220;exempt-interest dividends&#8221;
will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally not be subject to regular federal income tax. An investment in the Fund may result in liability for federal alternative minimum tax for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">individuals.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A shareholder subject to
U.S. federal income tax will generally be subject to tax on Fund distributions other than exempt-interest dividends. For </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. federal income tax purposes, Fund distributions
other than exempt-interest dividends will generally be taxable to a shareholder as either ordinary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income or capital gains. Distributions of net investment income other than
&#8220;exempt-interest dividends&#8221; will generally be taxable to you as ordinary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income. The federal tax exemption for exempt-interest dividends from the Fund does not
necessarily result in the exemption of such dividends from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">state and local taxes. The Fund will seek to produce income that is generally exempt from federal income tax and
will not benefit investors in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tax-advantaged retirement plans or individuals not subject to federal income tax.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Federal taxes on Fund distributions of capital gains are determined by how long the Fund owned or is deemed to have
owned the investments that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generated the capital gains, rather than how long a shareholder has owned its shares of the Fund. Distributions of net capital gains (that is, the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">excess of net long-term capital gains over net short-term capital losses, in each case determined with reference to any loss carryforwards) that are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">properly reported by the Fund as capital gain dividends generally will be treated as long-term capital gains includible in a shareholder&#8217;s net capital </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">gains and taxed to individuals at reduced rates. The Fund does not expect a significant portion of its distributions to be treated as long-term capital </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">gains. Distributions of net short-term capital gains in excess of net long-term capital losses generally will be taxable to shareholders as ordinary </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income. Distributions that the Fund properly reports to you as &#8220;qualified dividend income&#8221; are taxable in the hands of individuals at the reduced rates </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable to long-term capital gains provided that both the individual shareholder and the Fund meet certain holding period and other requirements.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Section 1411 of the Code generally imposes a 3.8% Medicare contribution tax on the &#8220;net investment
income&#8221; of certain individuals, trusts and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">estates to the extent their income exceeds certain threshold amounts. Net investment income generally includes for this
purpose dividends paid by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund, including any capital gain dividends, but not including exempt-interest dividends, and any net capital gains recognized on the sale,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">redemption or exchange of shares of the Fund. Shareholders are advised to consult their tax advisors regarding the possible implications of this </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional tax on their investment in the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The ultimate tax characterization of the Fund&#8217;s distributions made in a taxable year cannot be determined finally until after the end of that taxable </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">year. As a result, there is a possibility that the Fund may make total distributions during a taxable year in an amount that exceeds the Fund&#8217;s current </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and accumulated earnings and profits. In that case, the excess generally would be treated as return of capital and would reduce the shareholders&#8217; tax </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">basis in the applicable shares, with any amounts exceeding such basis treated as gain from the sale of such shares. A return of capital is not taxable, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">but it reduces a shareholder&#8217;s tax basis in the shares, thus reducing any loss or increasing any gain on a subsequent taxable disposition by the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholder of the Common Shares.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A
shareholder whose distributions are reinvested in Common Shares under the Plan will be treated for U.S. federal income tax purposes as having </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">received an amount in
distribution equal to either (i) if newly issued Common Shares are issued under the Plan, generally the fair market value of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">newly issued Common Shares issued to the
shareholder or (ii) if reinvestment is made through open-market purchases under the Plan, the amount of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cash allocated to the shareholder for the purchase of Common Shares
on its behalf in the open market. For U.S. federal income tax purposes, all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions are generally taxable in the manner described above, whether a shareholder takes
them in cash or they are reinvested pursuant to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Plan in additional shares of the Fund. See &#8220;Dividend Reinvestment Plan&#8221; above for further
details.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The IRS currently requires a RIC that the IRS recognizes as having two or more
&#8220;classes&#8221; of stock for U.S. federal income tax purposes to allocate to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">each such class proportionate amounts of each type of its income (such as ordinary income
and capital gains) based upon the percentage of total </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividends distributed to each class for the tax year. Accordingly, as and when applicable, the Fund intends each tax
year to allocate capital gain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividends between and among its Common Shares and each series of its Preferred Shares in proportion to the total dividends paid to each class
with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">respect to such tax year, and in a manner intended to comply with both applicable IRS rules and SEC requirements regarding the frequency of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions of capital gains. Dividends qualifying and not qualifying for the dividends received deduction, as qualified dividend income or as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exempt-interest dividends will similarly be allocated between and among Common Shares and each series of preferred shares, as and when issued.</font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">69&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_17"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:right;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Certain Fund Investments</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investments in certain debt instruments could cause the Fund to recognize taxable income in excess
of the cash generated by such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments (which may require the Fund to liquidate other investments in order to make required distributions).</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may at times buy tax-exempt investments at a discount from the price at which they were originally issued,
especially during periods of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rising interest rates. For federal income tax purposes, some or all of this market discount will be included in the Fund&#8217;s ordinary income
and will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable to you as such when it is distributed.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Taxes When You Dispose of Your Shares</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Any gain resulting from the sale or other disposition of Fund shares that is treated as a sale or exchange for U.S. federal income tax purposes </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally will be taxable to shareholders as capital gains for U.S. federal income tax purposes.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders who offer, and are able to sell all of the Common Shares they hold or are deemed to hold in response to a tender offer (as described </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">above) generally will be treated as having sold their shares and generally will recognize a capital gain or loss. In the case of shareholders who tender </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or are able to sell fewer than all of their shares, it is possible that any amounts that the shareholder receives in such repurchase will be taxable as a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividend to such shareholder. In addition, there is a risk that shareholders who do not tender any of their shares for repurchase, or whose percentage </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest in the Fund otherwise increases as a result of the tender offer, will be treated for U.S. federal income tax purposes as having received a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable dividend distribution as a result of their proportionate increase in the ownership of the Fund. The Fund&#8217;s use of cash to repurchase shares </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could adversely affect its ability to satisfy the distribution requirements for treatment as a RIC. The Fund could also recognize income in connection </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with its disposition of portfolio securities to fund share repurchases. Any such income would be taken into account in determining whether the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">has satisfied any applicable distribution requirements.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Backup Withholding</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The
Fund is generally required to withhold and remit to the U.S. Treasury a percentage of the taxable distributions and tender/offer liquidation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">proceeds paid to any shareholder
who fails to properly furnish the Fund with a correct taxpayer identification number, who has under-reported </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dividend or interest income, or who fails to certify to the Fund
that he, she or it is not subject to such withholding. The backup withholding rules may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also apply to distributions that are properly reported as exempt-interest
dividends.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Shares Purchased Through Tax-Advantaged Plans</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Special tax rules apply to investments through defined contribution plans and other tax-advantaged plans. Common
Shareholders should consult </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their tax advisors to determine the suitability of the Fund&#8217;s Common Shares as an investment through such plans and the precise effect of
an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment on their particular tax situation.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">General</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The foregoing
discussion relates solely to U.S. federal income tax laws. Dividends and distributions also may be subject to state and local taxes. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shareholders are urged to consult
their tax advisors regarding specific questions as to federal, state, local, and, where applicable, foreign </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxes. Foreign investors should consult their tax advisors
concerning the tax consequences of ownership of Common Shares of the Fund.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The foregoing is a general
and abbreviated summary of the applicable provisions of the Code and related regulations currently in effect. For the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">complete provisions, reference should be made to the
pertinent Code sections and regulations. The Code and regulations are subject to change by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">legislative or administrative actions.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Please see &#8220;Taxation&#8221; in the Statement of Additional Information for additional information regarding
the tax aspects of investing in Common Shares </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Fund.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Custodian and Transfer Agent</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The custodian of the assets of the Fund is State Street Bank and Trust Company, 801 Pennsylvania Avenue, Kansas City, Missouri 64105. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">custodian performs custodial and fund accounting services as well as sub-administrative services on behalf of the Fund.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">American Stock Transfer &amp; Trust Company, LLC, 6201 15th Avenue, Brooklyn, New York 11219, serves as the
Fund&#8217;s transfer agent, registrar, dividend </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disbursement agent and shareholder servicing agent, as well as agent for the Plan.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Deutsche Bank Trust Company Americas, 60 Wall Street, New York, New York 10005, serves as auction agent, transfer
agent, registrar, dividend </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">paying agent and redemption agent for the Preferred Shares.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">70</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_09abd8a8-4c13-4dbd-ad17-293313d48fd4_18"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:34pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;text-align:left;"><font
style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-70pt;width:538pt;min-height:51.8pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:42.33pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;min-height:642pt;">
<div style="line-height:14.0pt;margin-top:8pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Independent Registered Public Accounting Firm</font></div>
<div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">[ ] serves as independent registered public accounting firm for the Fund. [ ] provides audit services, tax and other
audit related services to the Fund.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Legal Matters</font></div>
<div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Certain legal matters will be passed on for the Fund by Ropes &amp; Gray LLP, Prudential Tower, 800 Boylston Street,
Boston, Massachusetts&nbsp;02199.</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Incorporation by Reference</font></div>
<div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">As noted above, this prospectus is part of a registration statement filed with the SEC. The Fund is permitted to
&#8220;incorporate by reference&#8221; the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information filed with the SEC, which means that the Fund can disclose important information to you by referring you to those
documents. In </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addition, all documents subsequently filed by the Fund pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amended (the &#8220;Exchange Act&#8221;) (excluding any information furnished rather than filed) prior to the termination of the offering shall be deemed to be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">incorporated by reference into the prospectus and the Statement of Additional Information. The information incorporated by reference is an important </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">part of this prospectus. Any statement in a document incorporated by reference into this prospectus will be deemed to be automatically modified or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">superseded to the extent a statement contained in (1) this prospectus or (2) any other subsequently filed document that is incorporated by reference </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">into this prospectus modifies or supersedes such statement. The documents incorporated by reference herein include:</font></div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:511.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s Statement of Additional Information, dated [ ], 2023, filed with this
prospectus;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:511.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s Annual Report on Form N-CSR, filed on [ ], 2023; and</font></div>
</div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:511.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s </font><a href="https://www.sec.gov/Archives/edgar/data/1170299/000092701602003304/d8a12b.txt">
<font style="font-family:Arial Narrow;font-size:10pt;text-decoration:underline;">Description of Shares on Form 8-A</font></A><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">, filed on June 19, 2002.</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">You may obtain copies of any information incorporated by
reference into this prospectus, at no charge, by calling toll-free (844)-337-4626 or by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">writing to the Fund at c/o Pacific Investment Management Company LLC, 1633 Broadway,
New York, New York 10019. The Fund&#8217;s periodic reports </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">filed pursuant to Rule 30b2-1 of the 1940 Act and Sections 13 and 15(d) of the Exchange Act, as well as this
prospectus and the Statement of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Additional Information, are available on the Fund&#8217;s website http://www.pimco.com/prospectuses. In addition, the SEC maintains a website
at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">www.sec.gov, free of charge that contains these reports, the Fund&#8217;s proxy and information statements, and other information relating to the Fund.</font></div>
</div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">71&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4c86fc12-d518-4a62-8a76-18c3281346df_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:15.2pt;width:538pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:63.13pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-53.8pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;margin-top:13pt;text-align:right;"><font style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base
Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:14.0pt;margin-top:8pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Appendix A</font></div>
<div style="line-height:14.0pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;">Description of Securities Ratings</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s investments may range in quality from securities rated in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lowest category in which the
Fund is permitted to invest to securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rated in the highest category (as rated by Moody&#8217;s, Standard &amp; Poor&#8217;s or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fitch, or, if unrated, determined by PIMCO to be of comparable quality). </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The percentage of the Fund&#8217;s
assets invested in securities in a particular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating category will vary. The following terms are generally used to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">describe the credit quality of fixed income securities:</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">High Quality Debt Securities</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are those rated in one of the two highest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating categories (the highest category for commercial paper) or, if </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unrated, deemed comparable by
PIMCO.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Investment Grade Debt Securities</font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are those rated in one of the four </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">highest rating categories, or, if unrated, deemed comparable by
PIMCO.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Below Investment Grade High Yield Securities (&#8220;Junk
Bonds&#8221;),</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those rated lower than Baa by Moody&#8217;s, BBB by Standard &amp; Poor&#8217;s or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fitch, and comparable securities. They are deemed predominantly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative with respect to the issuer&#8217;s
ability to repay principal and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The following is a description of Moody&#8217;s, Standard &amp; Poor&#8217;s and Fitch&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating
categories applicable to fixed income securities.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Moody&#8217;s Investors Service,
Inc.</font></div> <div style="line-height:12.0pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Global Long-Term Rating Scale</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ratings assigned on Moody&#8217;s global long-term rating scales are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">forward-looking opinions of the relative credit risks of financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations issued by non-financial
corporates, financial institutions, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structured finance vehicles, project finance vehicles, and public sector </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entities. Long-term ratings are assigned to issuers or obligations with an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">original maturity of eleven months
or more and reflect both on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">likelihood of a default or impairment on contractual financial
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations and the expected financial loss suffered in the event of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default or
impairment.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Aaa: Obligations rated Aaa are judged to be of the highest quality, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to the lowest level of credit risk.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Aa: Obligations rated Aa are judged to be of high quality and are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to very low credit
risk.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A: Obligations rated A are judged to be upper-medium grade and are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to low credit risk.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Baa:
Obligations rated Baa are judged to be medium-grade and subject </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to moderate credit risk and as such may possess certain speculative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">characteristics.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ba: Obligations rated
Ba are judged to be speculative and are subject to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">substantial credit risk.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">B: Obligations rated B are considered speculative and are subject to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">high credit risk.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Caa: Obligations rated Caa are judged to be speculative of poor </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">standing and are subject to very high credit risk.</font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ca: Obligations rated Ca are highly speculative and are likely in, or very </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">near, default, with some prospect of recovery of principal and interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">C: Obligations rated C are the lowest rated and are typically in default, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with little prospect for recovery of
principal or interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s appends numerical modifiers 1, 2, and 3 to each generic rating
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">classification from Aa through Caa. The modifier 1 indicates that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation ranks in the
higher end of its generic rating category; the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ranking in the lower end of that generic rating category. Additionally, a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;(hyb)&#8221; indicator is
appended to all ratings of hybrid securities issued by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">banks, insurers, finance companies, and securities firms.*</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">* By their terms, hybrid securities allow for the omission of scheduled </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">dividends, interest, or principal payments, which can potentially result in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">impairment if such an omission occurs. Hybrid securities may also be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">subject to contractually allowable write-downs of principal that could
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">result in impairment. Together with the hybrid indicator, the long-term </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">obligation rating assigned to a hybrid security is an expression of the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">relative credit risk associated with that security.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Medium-Term Note Program Ratings</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s assigns provisional ratings to medium-term note (MTN) or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar programs and definitive ratings
to the individual debt securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued from them (referred to as drawdowns or notes).</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">MTN program ratings are intended to reflect the ratings likely to be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assigned to drawdowns issued from the
program with the specified </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">priority of claim (</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">e.g.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">, senior or subordinated). To capture the contingent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nature of a program rating, Moody&#8217;s assigns
provisional ratings to MTN </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">programs. A provisional rating is denoted by a (P) in front of the rating.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The rating assigned to a drawdown from a rated MTN or bank/deposit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">note program is definitive in nature, and may differ from the program </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating if the drawdown is exposed to
additional credit risks besides the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer&#8217;s default, such as links to the defaults of other issuers, or has </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other structural features that warrant a different rating. In some </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">circumstances, no rating may be assigned to
a drawdown.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s encourages market participants to contact Moody&#8217;s Ratings </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Desks or visit www.moodys.com directly if they have questions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regarding ratings for specific notes issued
under a medium-term note </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">program. Unrated notes issued under an MTN program may be assigned </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an NR
(not rated) symbol.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Global Short-Term Rating Scale</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ratings assigned on Moody&#8217;s global short-term rating scales are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">forward-looking opinions of the relative credit risks of financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations issued by non-financial
corporates, financial institutions, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structured finance vehicles, project finance vehicles, and public sector </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entities. Short-term ratings are assigned to obligations with an original </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maturity of thirteen months or less
and reflect both on the likelihood of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a default or impairment on contractual financial obligations and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">expected financial loss suffered in the event of default or impairment.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s employs the following designations to indicate the relative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repayment ability of rated
issuers:</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;A-1</font></div> </div>
</div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4c86fc12-d518-4a62-8a76-18c3281346df_2">
</A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:15.2pt;width:538pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:63.13pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-53.8pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;margin-top:13pt;text-align:left;"><font style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO
Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">P-1: Ratings of Prime-1 reflect a superior ability to repay short-term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">P-2: Ratings of Prime-2 reflect a strong ability to repay short-term </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">P-3: Ratings of Prime-3
reflect an acceptable ability to repay short-term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">NP: Issuers (or supporting institutions) rated Not Prime do not fall within </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any of the Prime rating
categories.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">National Scale Long-Term Ratings</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s long-term National Scale Ratings (NSRs) are opinions of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relative creditworthiness of issuers and financial obligations within a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">particular country. NSRs are not
designed to be compared among </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">countries; rather, they address relative credit risk within a given country. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s assigns national scale ratings in certain local capital markets in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which investors have found
the global rating scale provides inadequate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">differentiation among credits or is inconsistent with a rating scale </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">already in common use in the country.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In
each specific country, the last two characters of the rating indicate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the country in which the issuer is located or the financial obligation was </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued (</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">e.g.,</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">
Aaa.ke for Kenya).</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Aaa.n: Issuers or issues rated Aaa.n demonstrate the strongest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness relative to other domestic issuers and issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Aa.n: Issuers or issues rated Aa.n demonstrate very strong </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness relative to other domestic issuers
and issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A.n: Issuers or issues rated A.n present above-average creditworthiness </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relative to other domestic issuers and issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Baa.n: Issuers or issues rated Baa.n represent average creditworthiness </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relative to other domestic issuers and
issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ba.n: Issuers or issues rated Ba.n demonstrate below-average </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness relative to other domestic issuers and issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">B.n: Issuers or issues rated B.n demonstrate weak creditworthiness </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relative to other domestic issuers and
issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Caa.n: Issuers or issues rated Caa.n demonstrate very weak </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness relative to other domestic issuers and issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ca.n: Issuers or issues rated Ca.n demonstrate extremely weak </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness relative to other domestic
issuers and issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">C.n: Issuers or issues rated C.n demonstrate the weakest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">creditworthiness relative to other domestic issuers and issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s appends numerical modifiers 1, 2, and 3 to each generic rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">classification from Aa through
Caa. The modifier 1 indicates that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation ranks in the higher end of its generic rating category; the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ranking in the lower end of that
generic rating category.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">National Scale Short-Term Ratings</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s short-term NSRs are opinions of the ability of issuers or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuances in a given country, relative
to other domestic issuers or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuances, to repay debt obligations that have an original maturity not </font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">exceeding thirteen months.
Short-term NSRs in one country should not </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">be compared with short-term NSRs in another country, or with Moody&#8217;s </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">global ratings. There are four categories of short-term national scale </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">ratings, generically denoted N-1
through N-4 as defined below.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In each specific country, the first two letters indicate the country in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which the issuer is located (</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">e.g.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">, KE-1 through KE-4 for Kenya).</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">N-1: N-1
issuers or issuances represent the strongest likelihood of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repayment of short-term debt obligations relative to other domestic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers or issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">N-2: N-2 issuers
or issuances represent an above average likelihood of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repayment of short-term debt obligations relative to other domestic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers or issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">N-3: N-3 issuers
or issuances represent an average likelihood of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repayment of short-term debt obligations relative to other domestic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers or issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">N-4: N-4 issuers
or issuances represent a below average likelihood of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repayment of short-term debt obligations relative to other domestic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuers or issuances.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The short-term
rating symbols P-1.za, P-2.za, P-3.za and NP.za are used </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in South Africa.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Short-Term Obligation Ratings</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Municipal Investment Grade (MIG) scale is used for US municipal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cash flow notes, bond anticipation notes and certain other short-term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations, which typically mature in
three years or less. Under certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">circumstances, the MIG scale is used for bond anticipation notes with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maturities of up to five years.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">MIG 1:
This designation denotes superior credit quality. Excellent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">protection is afforded by established cash flows, highly reliable liquidity </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">support, or demonstrated broad-based access to the market for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">refinancing.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">MIG 2: This designation denotes strong credit quality. Margins of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">protection are ample, although not as large as in the preceding group.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">MIG 3: This designation denotes acceptable credit quality. Liquidity and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cash-flow protection may be narrow,
and market access for refinancing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is likely to be less well-established.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">SG: This designation denotes speculative-grade credit quality. Debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments in this category may lack
sufficient margins of protection.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Demand Obligation Ratings</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In the case of variable rate demand obligations (VRDOs), a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">two-component rating is assigned. The components are a long-term </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating and a short-term demand obligation
rating. The long-term rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addresses the issuer&#8217;s ability to meet scheduled principal and interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments. The short-term demand obligation rating addresses the ability </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the issuer or the liquidity
provider to make payments associated with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the purchase-price-upon-demand feature (&#8220;demand feature&#8221;) of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">VRDO. The short-term demand obligation rating uses the Variable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Municipal Investment Grade (VMIG)
scale.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">A-2&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4c86fc12-d518-4a62-8a76-18c3281346df_3"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:15.2pt;width:538pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:63.13pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-53.8pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;margin-top:13pt;text-align:right;"><font style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base
Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">VMIG 1: This designation denotes superior credit quality. Excellent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">protection is afforded by the superior
short-term credit strength of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity provider and structural and legal protections.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">VMIG 2: This designation denotes strong credit quality. Good protection </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is afforded by the strong short-term
credit strength of the liquidity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provider and structural and legal protections.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">VMIG 3: This designation denotes acceptable credit quality. Adequate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">protection is afforded by the
satisfactory short-term credit strength of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the liquidity provider and structural and legal protections.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">SG: This designation denotes speculative-grade credit quality. Demand </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">features rated in this category may be supported by a liquidity provider </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that does not have a sufficiently
strong short-term rating or may lack </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the structural or legal protections.</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Standard &amp; Poor&#8217;s Ratings Services</font></div>
<div style="line-height:12.0pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Long-Term Issue Credit Ratings</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Issue credit ratings are based, in varying degrees, on S&amp;P Global </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ratings&#8217; (&#8220;S&amp;P&#8221;)
analysis of the following considerations:</font></div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Likelihood of payment&#8212;capacity and willingness of the obligor to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">meet its financial commitments on an obligation in accordance </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with the terms of the obligation;</font></div>
</div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Nature and provisions of the financial obligation and the promise </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">S&amp;P imputes; and</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Protection afforded by, and relative position of, the financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation in the event of a bankruptcy, reorganization, or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">arrangement under the laws of bankruptcy and
other laws </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affecting creditors&#8217; rights.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Issue ratings are an assessment of default risk, but may incorporate an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assessment of relative seniority or ultimate recovery in the event of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default. Junior obligations are
typically rated lower than senior </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations, to reflect lower priority in bankruptcy, as noted above. (Such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">differentiation may apply when an entity has both senior and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subordinated obligations, secured and unsecured
obligations, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operating company and holding company obligations.)</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Investment Grade</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">AAA:
An obligation rated &#8216;AAA&#8217; has the highest rating assigned by S&amp;P. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The obligor&#8217;s capacity to meet its financial commitments on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation is extremely strong.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">AA: An
obligation rated &#8216;AA&#8217; differs from the highest-rated obligations </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">only to a small degree. The obligor&#8217;s capacity to meet its financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitments on the obligation is very strong.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A: An obligation rated &#8216;A&#8217; is somewhat more susceptible to the adverse </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">effects of changes in
circumstances and economic conditions than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations in higher-rated categories. However, the obligor&#8217;s capacity to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">meet its financial commitments on the obligation is still strong.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">BBB: An obligation rated &#8216;BBB&#8217; exhibits adequate protection parameters. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">However, adverse economic
conditions or changing circumstances are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more likely to weaken the obligor&#8217;s capacity to meet its financial </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitments on the obligation.</font></div> </div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Speculative Grade</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Obligations rated &#8216;BB&#8217;, &#8216;B&#8217;, &#8216;CCC&#8217;, &#8216;CC&#8217;, and &#8216;C&#8217; are regarded as having </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significant speculative characteristics. &#8216;BB&#8217; indicates the least degree of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculation and
&#8216;C&#8217; the highest. While such obligations will likely have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">some quality and protective characteristics, these may be outweighed by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">large uncertainties or major exposure to adverse conditions.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">BB: An obligation rated &#8216;BB&#8217; is less vulnerable to nonpayment than other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">speculative issues.
However, it faces major ongoing uncertainties or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exposure to adverse business, financial, or economic conditions that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could lead to the obligor&#8217;s inadequate capacity to meet its financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitments on the
obligation.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">B: An obligation rated &#8216;B&#8217; is more vulnerable to nonpayment than </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations rated &#8216;BB&#8217;, but the obligor currently has the capacity to meet </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its financial
commitments on the obligation. Adverse business, financial, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or economic conditions will likely impair the obligor&#8217;s capacity or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">willingness to meet its financial commitments on the obligation.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">CCC: An obligation rated &#8216;CCC&#8217; is currently vulnerable to nonpayment, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and is dependent upon
favorable business, financial, and economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions for the obligor to meet its financial commitments on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation. In the event of adverse business, financial, or economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions, the obligor is not likely to
have the capacity to meet its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial commitments on the obligation.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">CC: An obligation rated &#8216;CC&#8217; is currently highly vulnerable to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nonpayment. The &#8216;CC&#8217;
rating is used when a default has not yet </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">occurred, but S&amp;P expects default to be a virtual certainty, regardless of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the anticipated time to default.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">C: An
obligation rated &#8216;C&#8217; is currently highly vulnerable to nonpayment, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the obligation is expected to have lower relative seniority or lower </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ultimate recovery compared with obligations that are rated higher.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">D: An obligation rated &#8216;D&#8217; is in default or in breach of an imputed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">promise. For non-hybrid
capital instruments, the &#8216;D&#8217; rating category is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">used when payments on an obligation are not made on the date due, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unless S&amp;P believes that such payments will be made within the next </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">five business days in the absence of a
stated grace period or within the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">earlier of the stated grace period or the next 30 calendar days. The &#8216;D&#8217; </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating also will be used upon the filing of a bankruptcy petition or the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taking of similar action and where
default on an obligation is a virtual </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certainty, for example due to automatic stay provisions. A rating on an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation is lowered to &#8216;D&#8217; if it is subject to a distressed debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restructuring.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">NR: This indicates that a rating has not been assigned or is no longer </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assigned.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Plus (+) or minus (-): The
ratings from &#8216;AA&#8217; to &#8216;CCC&#8217; may be modified by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the addition of a plus (+) or minus (-) sign to show relative standing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">within the rating categories.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:right;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;A-3</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4c86fc12-d518-4a62-8a76-18c3281346df_4"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:15.2pt;width:538pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:63.13pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-53.8pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;margin-top:13pt;text-align:left;"><font style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO
Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Short-Term Issue Credit Ratings</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A-1: A short-term obligation rated &#8216;A-1&#8217; is rated in the highest category </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by S&amp;P. The
obligor&#8217;s capacity to meet its financial commitments on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation is strong. Within this category, certain obligations are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">designated with a plus sign (+). This indicates that the obligor&#8217;s capacity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to meet its financial
commitments on these obligations is extremely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">strong.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A-2: A short-term obligation rated &#8216;A-2&#8217; is somewhat more susceptible </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the adverse effects of
changes in circumstances and economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions than obligations in higher rating categories. However, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligor&#8217;s capacity to meet its financial commitments on the obligation is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">satisfactory.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A-3: A short-term obligation rated &#8216;A-3&#8217; exhibits adequate protection </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">parameters. However, adverse economic conditions or changing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">circumstances are more likely to weaken an
obligor&#8217;s capacity to meet </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its financial commitments on the obligation.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">B: A short-term obligation rated &#8216;B&#8217; is regarded as vulnerable and has </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">significant speculative
characteristics. The obligor currently has the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capacity to meet its financial commitments; however, it faces major </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ongoing uncertainties that could lead to the obligor&#8217;s inadequate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capacity to meet its financial
commitments.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">C: A short-term obligation rated &#8216;C&#8217; is currently vulnerable to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nonpayment and is dependent upon favorable business, financial, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">economic conditions for the obligor to
meet its financial commitments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">on the obligation.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">D: A short-term obligation rated &#8216;D&#8217; is in default or in breach of an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">imputed promise. For
non-hybrid capital instruments, the &#8216;D&#8217; rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">category is used when payments on an obligation are not made on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">date due, unless S&amp;P believes that such payments will be made within </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any stated grace period. However, any
stated grace period longer than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">five business days will be treated as five business days. The &#8216;D&#8217; rating </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also will be used upon the filing of a bankruptcy petition or the taking </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of a similar action and where default
on an obligation is a virtual </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certainty, for example due to automatic stay provisions. A rating on an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation is lowered to &#8216;D&#8217; if it is subject to a distressed debt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">restructuring.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Dual Ratings: Dual ratings may be assigned to debt issues that have a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">put option or demand feature. The first component of the rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addresses the likelihood of repayment of
principal and interest as due, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the second component of the rating addresses only the demand
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">feature. The first component of the rating can relate to either a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term or long-term
transaction and accordingly use either </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term or long-term rating symbols. The second component of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating relates to the put option and is assigned a short-term rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">symbol (for example,
&#8216;AAA/A-1+&#8216; or &#8216;A-1+/ A-1&#8217;). With U.S. municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term demand debt, the U.S. municipal short-term note rating </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">symbols are used for the first component of the rating (for example, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8216;SP-1+/A-1+&#8216;).</font></div>
</div> <div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Active Qualifiers</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">S&amp;P uses the following qualifiers that limit the scope of a rating. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structure of the transaction can
require the use of a qualifier such as a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8216;p&#8217; qualifier, which indicates the rating addresses the principal portion of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the obligation only. A qualifier appears as a suffix and is part of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">L: Ratings qualified with &#8216;L&#8217; apply only to amounts invested up to federal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">deposit insurance limits.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">p: This suffix
is used for issues in which the credit factors, the terms, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">both, that determine the likelihood of receipt of payment of principal are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">different from the credit factors, terms or both that determine the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">likelihood of receipt of interest on the
obligation. The &#8216;p&#8217; suffix indicates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the rating addresses the principal portion of the obligation only and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the interest is not rated.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prelim:
Preliminary ratings, with the &#8216;prelim&#8217; suffix, may be assigned to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligors or obligations, including financial programs, in the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">circumstances described below. Assignment of a final rating is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditional on the receipt by S&amp;P of
appropriate documentation. S&amp;P </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reserves the right not to issue a final rating. Moreover, if a final rating is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued, it may differ from the preliminary rating.</font></div> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preliminary ratings may be assigned to obligations, most </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commonly structured and project finance issues, pending receipt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of final documentation and legal
opinions.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preliminary ratings may be assigned to obligations that will likely </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">be issued upon the obligor&#8217;s emergence from bankruptcy or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar reorganization, based on late-stage
reorganization plans, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">documentation and discussions with the obligor. Preliminary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings may
also be assigned to the obligors. These ratings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consider the anticipated general credit quality of the reorganized </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or post-bankruptcy issuer as well as attributes of the anticipated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation(s).</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preliminary ratings may be assigned to entities that are being </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">formed or that are in the process of being independently </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">established when, in S&amp;P&#8217;s opinion,
documentation is close to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">final. Preliminary ratings may also be assigned to the obligations </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of
these entities.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div>
<div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preliminary ratings may be assigned when a previously unrated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entity is undergoing a well-formulated restructuring, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recapitalization, significant financing or other
transformative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">event, generally at the point that investor or lender commitments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are invited. The
preliminary rating may be assigned to the entity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and to its proposed obligation(s). These preliminary ratings </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consider the anticipated general credit quality of the obligor, as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">well as attributes of the anticipated
obligation(s), assuming </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">successful completion of the transformative event. Should the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transformative event not occur, S&amp;P would likely withdraw these </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preliminary
ratings.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt;"><font
style="color:#1E8297;font-family:Arial Narrow;font-size:10pt;">&#9726;</font></div> <div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A
preliminary recovery rating may be assigned to an obligation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that has a preliminary issue credit rating.</font></div> </div> <div style="clear:both;position:relative;">
</div> </div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">A-4&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4c86fc12-d518-4a62-8a76-18c3281346df_5"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:15.2pt;width:538pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:63.13pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-53.8pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;margin-top:13pt;text-align:right;"><font style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base
Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">t: This symbol indicates termination structures that are designed to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">honor their contracts to full maturity
or, should certain events occur, to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">terminate and cash settle all their contracts before their final maturity </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">date.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cir: This symbol indicates a
Counterparty Instrument Rating (CIR), which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is a forward-looking opinion about the creditworthiness of an issuer in a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securitization structure with respect to a specific financial obligation to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a counterparty (including interest
rate swaps, currency swaps, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidity facilities). The CIR is determined on an ultimate payment basis; </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these opinions do not take into account timeliness of payment.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Inactive Qualifiers (no longer applied or outstanding)</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">*:This symbol indicated that the rating was contingent upon S&amp;P receipt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of an executed copy of the escrow
agreement or closing documentation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">confirming investments and cash flows. Discontinued use in August </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">1998.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">c: This qualifier was used to
provide additional information to investors </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the bank may terminate its obligation to purchase tendered bonds </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">if the long-term credit rating of the issuer was lowered to below an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment-grade level and/or the
issuer&#8217;s bonds were deemed taxable. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Discontinued use in January 2001.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">G: The letter &#8216;G&#8217; followed the rating symbol when a fund&#8217;s portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consisted primarily of
direct U.S. government securities.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">i: This suffix was used for issues in which the credit factors,
terms, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">both that determine the likelihood of receipt of payment of interest are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">different from
the credit factors, terms, or both that determine the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">likelihood of receipt of principal on the obligation. The 'i' suffix indicated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the rating addressed the interest portion of the obligation only. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">'i' suffix was always used in
conjunction with the 'p' suffix, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addresses likelihood of receipt of principal. For example, a rated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation could have been assigned a rating of 'AAApNRi' indicating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that the principal portion was rated
'AAA' and the interest portion of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the obligation was not rated.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pi: This qualifier was used to indicate ratings that were based on an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">analysis of an issuer&#8217;s published
financial information, as well as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional information in the public domain. Such ratings did not, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">however, reflect in-depth meetings with an issuer&#8217;s management and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">therefore, could have been based on
less comprehensive information </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">than ratings without a &#8216;pi&#8217; suffix. Discontinued use as of December 2014 </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and as of August 2015 for Lloyd&#8217;s Syndicate Assessments.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pr: The letters &#8216;pr&#8217; indicate that the rating was provisional. A provisional </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating assumed the
successful completion of a project financed by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt being rated and indicates that payment of debt service </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements was largely or entirely dependent upon the successful, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">timely completion of the project. This
rating, however, while addressing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit quality subsequent to completion of the project, made no
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">comment on the likelihood of or the risk of default upon failure of such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">completion.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">q: A &#8216;q&#8217; subscript indicates that the rating is based solely on quantitative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">analysis of publicly available information. Discontinued use in April </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2001.</font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">r: The &#8216;r&#8217;
modifier was assigned to securities containing extraordinary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks, particularly market risks, that are not covered in the credit rating. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The absence of an &#8216;r&#8217; modifier should not be taken as an indication that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an obligation would not
exhibit extraordinary noncredit-related risks. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">S&amp;P discontinued the use of the &#8216;r&#8217; modifier for most obligations in June </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2000 and for the balance of obligations (mainly structured finance </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions) in November
2002.</font></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Fitch Ratings</font></div> <div style="line-height:12.0pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Long-Term Credit Ratings</font> <br><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;margin-left:0%;">Investment Grade</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Rated entities in a number of sectors, including financial and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-financial corporations, sovereigns, insurance companies and certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sectors within public finance, are
generally assigned Issuer Default </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ratings (&#8220;IDRs&#8221;). IDRs are also assigned to certain entities or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">enterprises in global infrastructure, project finance, and public finance. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">IDRs opine on an entity&#8217;s
relative vulnerability to default (including by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">way of a distressed debt exchange) on financial obligations. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">threshold default risk addressed by the IDR is generally that of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial obligations whose non-payment
would best reflect the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">uncured failure of that entity. As such, IDRs also address relative
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">vulnerability to bankruptcy, administrative receivership or similar </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">concepts.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In aggregate, IDRs provide an ordinal ranking of issuers based on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency&#8217;s view of their relative vulnerability to default, rather than a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prediction of a specific
percentage likelihood of default.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">AAA: Highest credit quality. &#8216;AAA&#8217; ratings denote the
lowest expectation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of default risk. They are assigned only in cases of exceptionally strong
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capacity for payment of financial commitments. This capacity is highly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unlikely to be adversely
affected by foreseeable events.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">AA: Very high credit quality. &#8216;AA&#8217; ratings denote
expectations of very low </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default risk. They indicate very strong capacity for payment of financial
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitments. This capacity is not significantly vulnerable to foreseeable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">events.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A: High credit quality. &#8216;A&#8217; ratings denote expectations of low default risk. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The capacity for payment of financial commitments is considered strong. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">This capacity may, nevertheless, be
more vulnerable to adverse business </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or economic conditions than is the case for higher ratings.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">BBB: Good credit quality. &#8216;BBB&#8217; ratings indicate that expectations of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default risk are currently
low. The capacity for payment of financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitments is considered adequate, but adverse business or economic </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions are more likely to impair this capacity.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Speculative Grade</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">BB:
Speculative. &#8216;BB&#8217; ratings indicate an elevated vulnerability to default </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk, particularly in the event of adverse changes in business or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">economic conditions over time; however, business or financial flexibility </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exists that supports the servicing
of financial commitments.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;A-5</font></div> </div>
</div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4c86fc12-d518-4a62-8a76-18c3281346df_6">
</A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:15.2pt;width:538pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:63.13pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-53.8pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;margin-top:13pt;text-align:left;"><font style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO
Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">B: Highly speculative. &#8216;B&#8217; ratings indicate that material default risk is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">present, but a limited
margin of safety remains. Financial commitments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are currently being met; however, capacity for continued payment is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">vulnerable to deterioration in the business and economic environment.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">CCC: Substantial credit risk. Very low margin for safety. Default is a real </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">possibility.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">CC: Very high levels of credit risk. Default of some kind appears </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">probable.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">C: Near default.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A default or default-like process has begun, or the issuer is in standstill, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or for a closed funding vehicle, payment capacity is irrevocably impaired. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Conditions that are indicative of a
&#8216;C&#8217; category rating for an issuer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">include:</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a. the issuer has entered into a grace or cure period following </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-payment of a material financial
obligation;</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">b. the issuer has entered into a temporary negotiated waiver or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">standstill agreement following a payment default on a material financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation;</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">c. the formal announcement by the issuer or their agent of a distressed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt exchange;</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">d. a closed financing
vehicle where payment capacity is irrevocably </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impaired such that it is not expected to pay interest and/or principal in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">full during the life of the transaction, but where no payment default is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">imminent</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RD: Restricted default. &#8216;RD&#8217; ratings indicate an issuer that in Fitch </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Ratings&#8217; opinion has experienced an uncured payment default or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distressed debt exchange on a bond, loan
or other material financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation but has not entered into bankruptcy filings, administration,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">receivership, liquidation or other formal winding-up procedure, and has </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not otherwise ceased
operating. This would include:</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">i. the selective payment default on a specific class or currency of
debt;</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ii. the uncured expiry of any applicable grace period, cure period or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default forbearance period following a payment default on a bank loan, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital markets security or other
material financial obligation;</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">iii. the extension of multiple waivers or forbearance periods upon a
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment default on one or more material financial obligations, either in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">series or in parallel;
ordinary execution of a distressed debt exchange on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one or more material financial obligations.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">D: Default. &#8216;D&#8217; ratings indicate an issuer that in Fitch Ratings&#8217; opinion </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">has entered into
bankruptcy filings, administration, receivership, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidation or other formal winding-up procedure or that has otherwise </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ceased business. Default ratings are not assigned prospectively to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entities or their obligations; within this
context, non-payment on an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instrument that contains a deferral feature or grace period will generally </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not be considered a default until after the expiration of the deferral or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">grace period, unless a default is
otherwise driven by bankruptcy or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar circumstance, or by a distressed debt exchange.</font></div> </div>
<div style="float:left;margin-left:18pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">In all cases, the
assignment of a default rating reflects the agency&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">opinion as to the most appropriate rating category consistent with the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rest of its universe of ratings, and may differ from the definition of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default under the terms of an
issuer&#8217;s financial obligations or local </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commercial practice.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The modifiers &#8220;+&#8221; or &#8220;-&#8221; may be appended to a rating to denote </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relative status within
major rating categories. For example, the rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">category &#8216;AA&#8217; has three notch-specific rating levels (&#8217;AA+&#8216;; &#8217;AA&#8217;; &#8216;AA-&#8217;;
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">each a rating level). Such suffixes are not added to &#8216;AAA&#8217; ratings and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings below
the &#8216;CCC&#8217; category.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Recovery Ratings</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Recovery Ratings are assigned to selected individual securities and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations, most frequently for individual obligations of corporate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">finance issuers with IDRs in speculative
grade categories.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Among the factors that affect recovery rates for securities are the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral, the seniority relative to other obligations in the capital </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">structure (where appropriate), and the
expected value of the company </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or underlying collateral in distress.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Recovery Rating scale is based on the expected relative recovery </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">characteristics of an obligation upon the
curing of a default, emergence </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from insolvency or following the liquidation or termination of the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligor or its associated collateral.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Recovery Ratings are an ordinal scale and do not attempt to precisely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">predict a given level of recovery. As a
guideline in developing the rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assessments, the agency employs broad theoretical recovery bands in its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings approach based on historical averages and analytical judgment, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">but actual recoveries for a given
security may deviate materially from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">historical averages.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RR1: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Outstanding recovery prospects given default.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> &#8216;RR1&#8217; rated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities have characteristics consistent with securities historically </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recovering 91%-100% of current principal and related interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RR2: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Superior recovery prospects given default.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> &#8216;RR2&#8217; rated securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have characteristics consistent with securities historically recovering
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">71%-90% of current principal and related interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RR3: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Good recovery prospects given default.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> &#8216;RR3&#8217; rated securities have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">characteristics consistent with securities historically recovering
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">51%-70% of current principal and related interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RR4: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Average recovery prospects given default.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> &#8216;RR4&#8217; rated securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have characteristics consistent with securities historically recovering
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">31%-50% of current principal and related interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RR5: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Below average recovery prospects given default.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> &#8216;RR5&#8217; rated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities have characteristics consistent with securities historically </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recovering 11%-30% of current principal and related interest.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RR6: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Poor recovery prospects given default.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> &#8216;RR6&#8217; rated securities have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">characteristics consistent with securities historically recovering
0%-10% </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of current principal and related interest.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">A-6&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4c86fc12-d518-4a62-8a76-18c3281346df_7"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:15.2pt;width:538pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:63.13pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-53.8pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;margin-top:13pt;text-align:right;"><font style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">Base
Prospectus</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:260pt;min-height:642pt;"> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Short-Term Credit Ratings</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">A short-term issuer or obligation rating is based in all cases on the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term vulnerability to default of the rated entity and relates to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capacity to meet financial
obligations in accordance with the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">documentation governing the relevant obligation. Short-term deposit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings may be adjusted for loss severity. Short-Term Ratings are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assigned to obligations whose initial
maturity is viewed as &#8220;short term&#8221; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">based on market convention (a long-term rating can also be used to rate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an issue with short maturity). Typically, this means up to 13 months for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">corporate, sovereign, and structured
obligations, and up to 36 months </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for obligations in U.S. public finance markets.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">F1: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Highest short-term credit quality.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> Indicates the strongest intrinsic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capacity for timely payment of financial commitments; may have an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">added &#8220;+&#8221; to denote any exceptionally strong credit feature.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">F2: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Good short-term credit quality.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> Good intrinsic capacity for timely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment of financial commitments.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">F3: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Fair short-term
credit quality.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> The intrinsic capacity for timely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment of financial commitments is
adequate.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">B: </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Speculative short-term credit quality.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> Minimal capacity for timely </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment of financial commitments, plus heightened vulnerability to near </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">term adverse changes in financial and
economic conditions.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">C: </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">High short-term default risk.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> Default is a real possibility.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RD: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Restricted
default.</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> Indicates an entity that has defaulted on one or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more of its financial commitments,
although it continues to meet other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial obligations. Typically applicable to entity ratings only.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">D: </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Default.</font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> Indicates a broad-based default event for an entity, or the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">default of a short-term obligation.</font></div>
</div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;"> <div style="line-height:14.21pt;text-align:right;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">[ ], 2023 | </font><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">&#8194;&#8194;A-7</font></div> </div>
</div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_4c86fc12-d518-4a62-8a76-18c3281346df_8">
</A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:15.2pt;width:538pt;min-height:72.6pt;"> <div style="line-height:14.21pt;text-align:left;">
<hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:63.13pt;position:relative;text-align:left;top:6.73pt;width:538pt;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-53.8pt;width:538pt;min-height:72pt;"> <div style="line-height:19.0pt;margin-top:13pt;text-align:left;"><font style="color:#00687D;font-family:Times New Roman;font-size:19pt;line-height:19pt;">PIMCO
Municipal Income Fund II</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:-16pt;width:538pt;z-index:-1;min-height:642pt;"> <div style="text-align:center;">
<img src="g291117logo.jpg" alt=" " style="height:14pt;width:120pt;"><font style="color:#000000;float:left;font-family:Arial Narrow;font-size:10pt;line-height:1pt;">&#8201;</font></div> <div style="line-height:14.0pt;margin-top:12pt;text-align:center;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:12pt;font-weight:bold;margin-left:0%;">PIMCO Municipal Income Fund II</font></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:center;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;margin-left:0%;">Common Shares</font></div> <div style="line-height:12.0pt;margin-top:31.0pt;text-align:center;">
<hr style="background-color:#00687D;height:0.5pt;margin-bottom:2pt;margin-top:31.0pt;width:82pt;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;margin-left:0%;">PROSPECTUS</font>
<hr style="background-color:#00687D;height:0.5pt;margin-bottom:2pt;margin-top:8.0pt;width:82pt;"> </div> <div style="line-height:12.0pt;margin-top:4.5pt;text-align:center;"><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;margin-left:0%;">[ ], 2023</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:12pt;width:538pt;min-height:12pt;">
<div style="line-height:14.21pt;text-align:left;"> <hr style="background-color:#323232;height:0.5pt;margin-bottom:0pt;margin-left:0%;margin-top:0.53pt;text-align:left;top:8.73pt;width:538pt;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:8pt;font-weight:bold;line-height:14.21pt;">A-8&#8194;&#8194;Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO Municipal
Income Fund II</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_294bc023-d7be-4b4a-9f44-4246f3fd6c0e_1">
</A> <div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:24pt;width:538pt;z-index:-1;min-height:40pt;"> <div style="margin-top:0.00pt;text-align:left;">
<img src="g291117img4aa016ac1.gif" alt=" " style="height:14pt;width:120pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-40pt;width:538pt;z-index:-1;min-height:40pt;"> <div style="margin-top:0.00pt;text-align:right;">
<img src="g291117signup.gif" alt=" " style="height:36pt;width:135pt;"><font style="color:#000000;float:left;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:212pt;width:258pt;min-height:461pt;"> <div style="line-height:13.0pt;margin-top:7pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">As permitted by regulations
adopted by the Securities and </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">Exchange Commission, paper copies of the Fund&#8217;s annual and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">semi-annual shareholder reports will no longer be sent by mail, </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">unless you specifically request
paper copies of the reports from </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">the Fund or from your financial intermediary, such as a
</font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">broker-dealer or bank. Instead, the reports will be made available </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">on the Fund&#8217;s website,
pimco.com/literature, and you will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">notified by mail each time a report is posted and provided with a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:11pt;">website link to access the report.</font></div> <div style="line-height:13.0pt;margin-top:18pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">If
you already elected to receive shareholder reports </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">electronically, you will not be affected by this change and you </font><font
style="color:#323232;font-family:Arial Narrow;font-size:11pt;">need not take any action. You may elect to receive shareholder </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">reports and other communications from the Fund
electronically </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">by visiting pimco.com/edelivery or by contacting your financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">intermediary, such
as a broker-dealer or bank.</font></div> <div style="line-height:13.0pt;margin-top:18pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">You may elect to receive all future reports in paper free of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:11pt;">charge. If you own these shares through a financial intermediary, </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">such as a broker-dealer or bank, you may
contact your financial </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">intermediary to request that you continue to receive paper copies </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">of your
shareholder reports. If you invest directly with the Fund, </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">you can inform the Fund that you wish to continue receiving </font><font
style="color:#323232;font-family:Arial Narrow;font-size:11pt;">paper copies of your shareholder reports by calling </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">844.337.4626. Your election to receive reports in paper
will </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">apply to all funds held with the fund complex if you invest </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">directly with the Fund or to all
funds held in your account if you </font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">invest through a financial intermediary, such as a broker-dealer
</font><font style="color:#323232;font-family:Arial Narrow;font-size:11pt;">or bank.</font></div> <div style="line-height:10.0pt;text-align:left;"> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;height:12pt;margin-left:30pt;margin-top:7pt;width:538pt;margin-bottom:24pt;"> <div style="line-height:14.21pt;margin-top:9.47pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;margin-left:490pt;">CEF0024_041323</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_294bc023-d7be-4b4a-9f44-4246f3fd6c0e_2"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:30pt;margin-top:24pt;width:538pt;z-index:-1;min-height:40pt;"> <div style="margin-top:0.00pt;text-align:left;">
<img src="g291117img4aa016ac1.gif" alt=" " style="height:14pt;width:120pt;"><font style="color:#000000;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:30pt;margin-top:-40pt;width:538pt;z-index:-1;min-height:40pt;"> <div style="margin-top:0.00pt;text-align:right;">
<img src="g291117signup.gif" alt=" " style="height:36pt;width:135pt;"><font style="color:#000000;float:left;font-family:Arial Narrow;font-size:13.03pt;line-height:1pt;">&#8201;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;height:12pt;margin-left:30pt;margin-top:680pt;width:538pt;margin-bottom:24pt;"> <div style="line-height:14.21pt;margin-top:9.47pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;margin-left:490pt;">CEF0024_041323</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
  <div> <div><a name="xx_0865ff63-949c-4f0c-a3de-4f73cc360ad5_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:66pt;width:480pt;min-height:666pt;"> <div style="line-height:13.0pt;margin-top:6pt;text-align:left;"><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">The information in this Statement of Additional Information is not </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">complete and may be changed. We may not sell these securities until the </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">registration statement filed with the Securities and Exchange Commission </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">is effective. This Statement of Additional Information, which is not a </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">prospectus, is not an offer to sell these securities and it is not soliciting </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">an offer to buy these securities in any state or jurisdiction where the </font><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;text-transform:uppercase;">offer or sale is not permitted.</font></div> <div style="line-height:13.0pt;margin-top:4pt;text-align:center;"><font
style="color:#FF0000;font-family:Arial;font-size:11pt;font-weight:bold;margin-left:0%;">Subject to completion, dated April 13, 2023</font></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:12pt;font-weight:bold;margin-left:0%;">PIMCO MUNICIPAL INCOME FUND&nbsp;II</font></div> <div style="line-height:14.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:12pt;margin-left:0%;">Statement of Additional Information</font></div> <div style="line-height:14.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:12pt;margin-left:0%;">[ ], 2023</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:20pt;">PIMCO Municipal Income Fund II (the &#8220;Fund&#8221;) is a diversified, closed-end management investment company.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Pacific Investment Management Company LLC (&#8220;PIMCO&#8221; or the &#8220;Investment
Manager&#8221;), 650 Newport Center </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Drive, Newport Beach, California 92660, is the investment manager to the Fund.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">This Statement of Additional Information relating to the common shares of beneficial
interest, par value $0.00001 </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">per share, of the Fund (the &#8220;Common Shares&#8221;) is not a prospectus, and should be read in conjunction with the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prospectus relating thereto dated [ ], 2023 (the &#8220;Prospectus&#8221;) and any related prospectus supplement. This Statement of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Additional Information does not include all information that a prospective investor should consider before purchasing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Common Shares, and investors should obtain and read the Prospectus and any related prospectus supplement prior to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchasing such shares. A copy of the Prospectus and any related prospectus supplement or the annual or semi-annual </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reports for the Fund&nbsp;may be obtained without charge by calling 844-337-4626. You may also obtain a copy of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Prospectus or any related prospectus supplement on the website of the Securities and Exchange Commission (the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;SEC&#8221;) at http://www.sec.gov. Capitalized terms used but not defined in this Statement of Additional Information have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the meanings ascribed to them in the Prospectus and any related prospectus supplement.</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;">
</div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_65cb3040-2a7e-4437-a79f-91f0d30c64e0_sai-toc-lvl1_1"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:66pt;width:480pt;min-height:636pt;"> <div style="line-height:10.0pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">Table of Contents</font>
<br><font style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:21.5pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_1">THE FUND</A></font></div> </div> </td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">1</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_1">INVESTMENT OBJECTIVE AND POLICIES</A></font></div> </div> </td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">1</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_64">INVESTMENT RESTRICTIONS</A></font></div> </div> </td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">64</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_67">Management of the Fund</A></font></div> </div> </td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">67</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_81">Investment Manager</A></font></div> </div> </td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">81</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_92">PORTFOLIO TRANSACTIONS AND BROKERAGE</A></font></div> </div> </td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">92</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_94">DISTRIBUTIONS</A></font></div> </div> </td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">94</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_95">DESCRIPTION OF SHARES</A></font></div> </div> </td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">95</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_95">ANTI-TAKEOVER AND OTHER PROVISIONS IN THE DECLARATION OF TRUST AND
BYLAWS</A></font></div> </div> </td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">95</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_97">REPURCHASE OF COMMON SHARES;&nbsp;CONVERSION TO OPEN-END FUND</A></font></div> </div>
</td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">97</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_99">TAXATION</A></font></div> </div> </td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">99</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_113">PERFORMANCE RELATED AND COMPARATIVE INFORMATION</A></font></div> </div> </td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">113</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_114">CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSEMENT AGENT</A></font></div> </div>
</td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">114</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_114">INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></font></div> </div> </td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">114</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_114">COUNSEL</A></font></div> </div> </td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">114</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_114">REGISTRATION STATEMENT</A></font></div> </div> </td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">114</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:18pt;">
<td style="vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_114">INCORPORATION BY REFERENCE</A></font></div> </div> </td>
<td style="vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">114</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:10pt;"> </font></div> </div> </td> </tr>
<tr style="height:25.5pt;">
<td style="background-color:azure;vertical-align:Bottom;width:461.45pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_e894d944-c6db-46ae-99aa-f8e1abebf5ea_1">Appendix A Procedures for Shareholders to Submit Nominee Candidates for the
</A></font></div> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-transform:uppercase;"><a href="#xx_e894d944-c6db-46ae-99aa-f8e1abebf5ea_1">Pimco
 Sponsored Closed-End Funds</A></font></div> </div> </td>
<td style="background-color:azure;vertical-align:Bottom;width:18.55pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;text-align:Right;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">A</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">-</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">1</font></div> </div>
</td> </tr> </table> </div> <div style="line-height:10.0pt;text-align:left;"> </div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:26pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:14.21pt;margin-left:0%;">i</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_1"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">THE FUND</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund commenced operations on June 28, 2002, following the initial public offering of its Common Shares. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund was organized as a Massachusetts business trust on March 29, 2002. Prior to commencing operations on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">June 28, 2002, the Fund had no operations other than matters relating to its organization and registration as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">closed-end management company registered under the Investment Company Act of 1940, as amended (the &#8220;1940 </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Act&#8221;).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">INVESTMENT OBJECTIVE AND POLICIES</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The investment objective and general investment policies of the Fund are described in the Prospectus. Additional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information concerning the characteristics of certain of the Fund&#8217;s investments, strategies and risks is set forth below. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Unless a strategy or policy described below is specifically prohibited by the investment restrictions listed in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Prospectus, by the investment restrictions under &#8220;Investment Restrictions&#8221; in this Statement of Additional Information, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or by applicable law, the Fund may engage in each of the practices described below. However, the Fund is not required </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to engage in any particular transaction or purchase any particular type of securities or investment even if to do so </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">might benefit the Fund. Unless otherwise stated herein, all investment policies of the Fund may be changed by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Board of Trustees (the &#8220;Board&#8221;) without shareholder approval. In addition, the Fund may be subject to restrictions on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">its ability to utilize certain investments or investment techniques. Unless otherwise stated herein, these additional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">restrictions may be changed with the consent of the Board but without approval by or notice to shareholders.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">High Yield Securities (&#8220;Junk Bonds&#8221;) and Securities of Distressed
Companies</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest without limit in debt instruments that are, at
the time of purchase, rated below &#8220;investment </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">grade&#8221; by at least one of Moody&#8217;s Investors Service, Inc. (&#8220;Moody&#8217;s&#8221;), S&amp;P Global
Ratings (&#8220;S&amp;P&#8221;) or Fitch, Inc. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;Fitch&#8221;), or unrated but determined by PIMCO to be of comparable quality. The Fund may also invest in
defaulted </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities and debtor-in-possession financings. A description of the ratings categories used is set forth in Appendix A to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Prospectus.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A security is considered to be below &#8220;investment grade&#8221; quality if it is either
(1) not rated in one of the four </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">highest rating categories by one of the nationally recognized statistical rating organizations (&#8220;NRSROs&#8221;) (i.e., rated Ba
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">or below by Moody&#8217;s, BB or below by S&amp;P or BB or below by Fitch) or (2) if unrated, determined by PIMCO to be of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">comparable quality to obligations so rated. Investments in securities rated below investment grade are described as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;speculative&#8221; by Moody&#8217;s, S&amp;P and Fitch.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investment in lower rated corporate debt securities (&#8220;high yield&#8221; securities or
&#8220;junk bonds&#8221;) and securities of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">distressed companies generally provides greater income and increased opportunity for capital appreciation than </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments in higher quality securities, but it also typically entails greater price volatility and principal and income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risk. Securities of distressed companies include both debt and equity securities. High yield securities and debt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities of distressed companies are regarded as predominantly speculative with respect to the issuer&#8217;s continuing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability to make timely principal and interest payments. Issuers of high yield and distressed company securities may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">involved in restructurings or bankruptcy proceedings that may not be successful. Analysis of the creditworthiness of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuers of debt securities that are high yield or debt securities of distressed companies may be more complex than for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuers of higher quality debt.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">High yield securities and debt securities of distressed companies may be more susceptible
to real or perceived </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">adverse economic and competitive industry conditions than investment grade securities. The prices of these securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have been found to be more sensitive to adverse economic downturns or individual corporate developments. A
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">projection of an economic downturn, for example, could cause a decline in prices of high yield securities and debt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities of distressed companies because the advent of a recession could lessen the ability of a highly leveraged </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">company to make principal and interest payments on its debt securities, and a high yield security may lose significant </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market value before a default occurs. If an issuer defaults, in addition to risking payment of all or a portion of interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and principal, the Fund, by investing in such securities, may incur additional expenses to seek recovery of their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">respective investments. In the case of securities structured as zero-coupon or pay-in-kind securities, their market prices </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are affected to a greater extent by interest rate changes, and therefore tend to be more volatile than securities which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pay interest periodically and in cash.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;">
</div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">1</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_2"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">High yield and distressed company securities and securities of distressed companies may have the right to &#8220;call&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or redeem the issue prior to maturity, which may result in the Fund having to reinvest the proceeds in other high yield </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities that may pay lower interest rates. The Fund may also be subject to greater levels of liquidity risk than funds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that do not invest in these securities. In addition, the high yield securities and securities of distressed companies in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which the Fund invests may not be listed on any exchange and a secondary market for such securities may be
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">comparatively less liquid relative to markets for other more liquid fixed-income securities. Consequently, transactions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in high yield and distressed company securities may involve greater costs than transactions in more actively traded </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, which could adversely affect the price at which the Fund could sell a high yield or distressed company </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security, and could adversely affect the daily net asset value of the shares. A lack of publicly-available information, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">irregular trading activity and wide bid/ask spreads among other factors, may, in certain circumstances, make high yield </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and distressed company debt more difficult to sell at an advantageous time or price than other types of securities or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments. These factors may result in the Fund being unable to realize full value for these securities and/or may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">result in the Fund not receiving the proceeds from a sale of a high yield or distressed company security for an extended </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">period after such sale, each of which could result in losses to the Fund. Because of the risks involved in investing in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">high yield securities and securities of distressed companies, an investment in the Fund should be considered </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">speculative.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Analysis of the creditworthiness of issuers of high yield securities and distressed company
securities may be more </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">complex than for issuers of higher quality debt securities, and achievement of the Fund&#8217;s investment objective may, to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the extent of its investments in high yield and distressed company securities, depend more heavily on PIMCO&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">creditworthiness analysis than would be the case if the Fund were investing in higher quality securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">High yield securities structured as &#8220;zero-coupon&#8221; bonds or &#8220;payment-in-kind&#8221; securities (&#8220;PIKs&#8221;) tend to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">especially volatile as they are particularly sensitive to downward pricing pressures from rising interest rates or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">widening spreads and may require the Fund to make taxable distributions of income greater than the total amount of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cash interest the Fund has actually received. Even though such securities do not pay current interest in cash, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">nonetheless is required to accrue interest income on these investments and to distribute the interest income on a current </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">basis. Thus, the Fund could be required at times to sell other investments in order to satisfy its distribution </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements (including when it is not advantageous to do so).</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The secondary market on which high yield securities are traded may be less liquid than the
market for higher </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">grade securities. Less liquidity in the secondary trading market could adversely affect the price at which the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">could sell a high yield security, and could adversely affect the daily net asset value of the shares. Lower liquidity in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">secondary markets could adversely affect the value of high yield/high risk securities held by the Fund. While lower </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rated securities typically are less sensitive to interest rate changes than higher rated securities, the market prices of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">high yield/high risk securities structured as zero coupon bonds or PIKs may be affected to a greater extent by interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rate changes. In addition, adverse publicity and investor perceptions, whether or not based on fundamental analysis, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may decrease the values and liquidity of high yield securities, especially in a thinly traded market. When secondary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets for high yield and distressed company securities are less liquid than the market for other types of securities, it </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be more difficult to value the securities because such valuation may require more research, and elements of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">judgment may play a greater role in the valuation because there is less reliable, objective data available.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The use of credit ratings as the sole method of evaluating high yield securities and debt securities of distressed </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">companies can involve certain risks. For example, credit ratings evaluate the safety of principal and interest payments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of a debt security, not the market value risk of a security. Also, credit rating agencies may fail to change credit ratings </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in a timely fashion to reflect events since the security was last rated. PIMCO does not rely solely on credit ratings </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">when selecting debt securities for the Fund. If a credit rating agency changes the rating of a debt security held by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund, the Fund may retain the security.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Mortgage-Related and Other Asset-Backed Securities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Mortgage-related instruments are interests in pools of residential or commercial mortgage loans, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Such
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage loans may include reperforming loans (&#8220;RPLs&#8221;), which are loans that have previously been delinquent but </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are current at the time securitized. Pools of mortgage loans are assembled as securities for sale to investors by various </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">governmental, government-related and private organizations. The Fund may invest in a variety of mortgage-related and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other ABS issued by government agencies or other governmental entities or by private originators or issuers.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">2</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_3"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The mortgage-related assets in which the Fund may invest include, without limitation, mortgage pass-through </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, collateralized mortgage obligations (&#8220;CMOs&#8221;), commercial or residential mortgage-backed securities, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage dollar rolls/buy backs, CMO residuals, adjustable rate mortgage-backed securities (&#8220;ARMBS&#8221;), stripped </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage-backed securities (&#8220;SMBS&#8221;) and other securities that directly or indirectly represent a participation in, or are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">secured by and payable from, mortgage loans on real property. The Fund may also invest in other types of ABS, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including collateralized debt obligations (&#8220;CDOs&#8221;), which include collateralized bond obligations (&#8220;CBOs&#8221;), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">collateralized loan obligations (&#8220;CLOs&#8221;) and other similarly structured securities. The mortgage-related securities in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which the Fund may invest may pay variable or fixed rates of interest. When acquiring mortgage-related or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">asset-backed securities, the Fund is not restricted by any particular borrower credit criteria. Accordingly, loans </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying mortgage-related securities acquired by the Fund may be subprime in quality, or may become subprime in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">quality.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Through investments in mortgage-related securities, including those that are issued by
private issuers, the Fund </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">may have some exposure to subprime loans as well as to the mortgage and credit markets generally. Private issuers </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">include commercial banks, savings associations, mortgage companies, investment banking firms, finance companies </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and special purpose finance entities (called special purpose vehicles (&#8220;SPVs&#8221;)) and other entities that acquire and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">package mortgage loans for resale as mortgage-related securities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Mortgage Pass-Through Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Mortgage pass-through securities are securities representing interests in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;pools&#8221; of
mortgage loans secured by residential or commercial real property. Interests in pools of mortgage-related </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities differ from other forms of debt securities, which
normally provide for periodic payment of interest in fixed </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">or variable amounts with principal payments at maturity or specified call dates. Instead, these securities
provide a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">monthly payment that consists of both interest and principal payments. In effect, these payments are a &#8220;pass-through&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the monthly payments made by the individual borrowers on their residential or commercial mortgage loans, net of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any fees paid to the issuer or guarantor of such securities. Additional payments are caused by repayments of principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">resulting from the sale of the underlying property, refinancing or foreclosure, net of fees or costs that may be incurred. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Some mortgage-related securities (such as securities issued by the Government National Mortgage Association </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;Ginnie Mae&#8221; or &#8220;GNMA&#8221;)) are described as &#8220;modified pass-through.&#8221; These securities entitle the holder to receive </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">all interest and principal payments owed on the mortgage pool, net of certain fees, at the scheduled payment dates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regardless of whether or not the mortgagor actually makes the payment.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The rate of pre-payments on underlying mortgages will affect the price and volatility of a
mortgage-related </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">security, and may have the effect of shortening or extending the effective duration of the security relative to what was </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">anticipated at the time of purchase. Early repayment of principal on some mortgage-related securities (arising from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prepayments of principal due to the sale of the underlying property, refinancing, or foreclosure, net of fees and costs </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that may be incurred) may expose the Fund to a lower rate of return upon reinvestment of principal. Also, if a security </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to prepayment has been purchased at a premium, the value of the premium would be lost in the event of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prepayment. Like other fixed-income securities, when interest rates rise, the value of a mortgage-related security </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally will decline; however, when interest rates are declining, the value of mortgage-related securities with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prepayment features may not increase as much as other fixed-income securities. Adjustable rate mortgage-related and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other ABS are also subject to some interest rate risk. For example, because interest rates on most adjustable rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage- and other ABS only reset periodically (e.g., monthly or quarterly), changes in prevailing interest rates (and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particularly sudden and significant changes) can be expected to cause some fluctuations in the market value of these </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, including declines in value as interest rates rise. In addition, to the extent that unanticipated rates of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pre-payment on underlying mortgages increase the effective duration of a mortgage-related security, the volatility of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such security can be expected to increase.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The residential mortgage market in the United States has experienced in the past, and could
experience in the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">future, difficulties that may adversely affect the performance and market value of certain of the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage-related investments. Delinquencies, defaults and losses on residential mortgage loans may increase </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">substantially over a shorter period of time. A decline in or flattening of housing values may exacerbate such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delinquencies and losses on residential mortgages. Borrowers with adjustable rate mortgage loans are more sensitive to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">changes in interest rates, which affect their monthly mortgage payments, and may be unable to secure replacement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgages at comparably low interest rates. As a result of the 2008 financial crisis, a number of residential mortgage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loan originators experienced serious financial difficulties or bankruptcy. Owing largely to the foregoing, reduced </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investor demand for mortgage loans and mortgage-related securities and increased investor yield requirements caused </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limited liquidity in the secondary market for certain mortgage-related securities, which adversely affected the market </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">3</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_4"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">value of mortgage-related securities. It is possible that such limited liquidity in such secondary markets could recur or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">worsen in the future.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Agency Mortgage-Related Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Payment of principal and interest on some mortgage pass-through securities </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(but not the market value of
the securities themselves) may be guaranteed by the full faith and credit of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. government (in the case of securities guaranteed by GNMA) or guaranteed by agencies
or instrumentalities of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. government (in the case of securities guaranteed by the Federal National Mortgage Association (&#8220;FNMA&#8221;) or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Federal Home Loan Mortgage Corporation (&#8220;FHLMC&#8221;)). The principal governmental guarantor of mortgage-related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities is GNMA. GNMA is a wholly-owned U.S. government corporation within the U.S. Department of Housing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and Urban Development (the &#8220;Department of Housing and Urban Development&#8221; or &#8220;HUD&#8221;). GNMA is authorized to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guarantee, with the full faith and credit of the U.S. government, the timely payment of principal and interest on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities issued by institutions approved by GNMA (such as savings and loan institutions, commercial banks and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage bankers) and backed by pools of mortgages insured by the Federal Housing Administration (the &#8220;FHA&#8221;), or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guaranteed by the Department of Veterans Affairs (the &#8220;VA&#8221;).</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Government-related guarantors (i.e., not backed by the full faith and credit of the U.S.
government) include </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">FNMA and FHLMC. FNMA is a government-sponsored corporation. FNMA primarily purchases conventional (i.e., </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which includes state and federally chartered savings and loan associations, mutual savings banks, commercial banks, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. government. Instead, they </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are supported only by the discretionary authority of the U.S. government to purchase the agency&#8217;s obligations. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHLMC was created by Congress in 1970 for the purpose of increasing the availability of mortgage credit for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">residential housing. It is a government-sponsored corporation that issues participation certificates (&#8220;PCs&#8221;), which are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the U.S. government. Instead, they are supported only by the discretionary authority of the U.S. government to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase the agency&#8217;s obligations.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">FNMA and FHLMC also securitize RPLs. For example, in FNMA&#8217;s case, the RPLs are
single-family, fixed rate </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">reperforming loans that generally were previously placed in an MBS trust guaranteed by FNMA, purchased from the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">trust by FNMA and held as a distressed asset after four or more months of delinquency, and subsequently became </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">current (i.e., performing) again. Such RPLs may have exited delinquency through efforts at reducing defaults (e.g., </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loan modification). In selecting RPLs for securitization, FNMA follows certain criteria related to length of time the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loan has been performing, the type of loan (single-family, fixed rate), and the status of the loan as first lien, among </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other things. FNMA may include different loan structures and modification programs in the future.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">On September 6, 2008, the Federal Housing Finance Agency (&#8220;FHFA&#8221;) placed FNMA and FHLMC into </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conservatorship. As the conservator, the FHFA succeeded to all rights, titles, powers and privileges of FNMA and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHLMC and of any stockholder, officer or director of FNMA and FHLMC with respect to FNMA and FHLMC and
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the assets of FNMA and FHLMC. FHFA selected a new chief executive officer and chairman of the board of directors </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for each of FNMA and FHLMC.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In connection with the conservatorship, the U.S. Department of the Treasury (the
&#8220;U.S. Treasury&#8221;) entered into a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Senior Preferred Stock Purchase Agreement with each of FNMA and FHLMC pursuant to which the U.S. Treasury </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will purchase up to an aggregate of $100 billion of each of FNMA and FHLMC to maintain a positive net worth in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">each enterprise. This agreement contains various covenants that severely limit each enterprise&#8217;s operations. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange for entering into these agreements, the U.S. Treasury received $1 billion of each enterprise&#8217;s senior preferred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities and warrants to purchase 79.9% of each enterprise&#8217;s common stock. In 2009, the U.S. Treasury announced </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that it was doubling the size of its commitment to each enterprise under the Senior Preferred Stock Program to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$200 billion. The U.S. Treasury&#8217;s obligations under the Senior Preferred Stock Program are for an indefinite period of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time for a maximum amount of $200 billion per enterprise. In 2009, the U.S. Treasury further amended the Senior </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Preferred Stock Purchase Agreement to allow the cap on the U.S. Treasury&#8217;s funding commitment to increase as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">necessary to accommodate any cumulative reduction in FNMA&#8217;s and FHLMC&#8217;s net worth through the end of 2012. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">August 2012, the Senior Preferred Stock Purchase Agreement was further amended to, among other things, accelerate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the wind down of the retained portfolio, terminate the requirement that FNMA and FHLMC each pay a 10% dividend </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">4</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_5"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">annually on all amounts received under the funding commitment, and require the submission of an annual risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management plan to the U.S. Treasury.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">FNMA and FHLMC are continuing to operate as going concerns while in conservatorship and
each remains liable </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">for all of its obligations, including its guaranty obligations, associated with its mortgage-backed securities. The Senior </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Preferred Stock Purchase Agreement is intended to enhance each of FNMA&#8217;s and FHLMC&#8217;s ability to meet its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations. The FHFA has indicated that the conservatorship of each enterprise will end when the director of FHFA </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">determines that FHFA&#8217;s plan to restore the enterprise to a safe and solvent condition has been completed.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Under the Federal Housing Finance Regulatory Reform Act of 2008 (the &#8220;Reform Act&#8221;), which was included as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">part of the Housing and Economic Recovery Act of 2008, FHFA, as conservator or receiver, has the power to repudiate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any contract entered into by FNMA or FHLMC prior to FHFA&#8217;s appointment as conservator or receiver, as applicable, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">if FHFA determines, in its sole discretion, that performance of the contract is burdensome and that repudiation of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract promotes the orderly administration of FNMA&#8217;s or FHLMC&#8217;s affairs. The Reform Act requires FHFA to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercise its right to repudiate any contract within a reasonable period of time after its appointment as conservator or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">receiver.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">FHFA, in its capacity as conservator, has indicated that it has no intention to repudiate
the guaranty obligations of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">FNMA or FHLMC because FHFA views repudiation as incompatible with the goals of the conservatorship. However, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the event that FHFA, as conservator or if it is later appointed as receiver for FNMA or FHLMC, were to repudiate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any such guaranty obligation, the conservatorship or receivership estate, as applicable, would be liable for actual direct </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">compensatory damages in accordance with the provisions of the Reform Act. Any such liability could be satisfied only </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the extent of FNMA&#8217;s or FHLMC&#8217;s assets available therefor.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In the event of repudiation, the payments of interest to holders of FNMA or FHLMC
mortgage-backed securities </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">would be reduced if payments on the mortgage loans represented in the mortgage loan groups related to such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage-backed securities are not made by the borrowers or advanced by the servicer. Any actual direct
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">compensatory damages for repudiating these guaranty obligations may not be sufficient to offset any shortfalls </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">experienced by such mortgage-backed security holders.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Further, in its capacity as conservator or receiver, FHFA has the right to transfer or sell
any asset or liability of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">FNMA or FHLMC without any approval, assignment or consent. Although FHFA has stated that it has no present </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">intention to do so, if FHFA, as conservator or receiver, were to transfer any such guaranty obligation to another party, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holders of FNMA or FHLMC mortgage-backed securities would have to rely on that party for satisfaction of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guaranty obligation and would be exposed to the credit risk of that party.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, certain rights provided to holders of mortgage-backed securities
issued by FNMA and FHLMC under </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the operative documents related to such securities may not be enforced against FHFA, or enforcement of such rights </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be delayed, during the conservatorship or any future receivership. The operative documents for FNMA and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHLMC mortgage-backed securities may provide (or with respect to securities issued prior to the date of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">appointment of the conservator may have provided) that upon the occurrence of an event of default on the part of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FNMA or FHLMC, in its capacity as guarantor, which includes the appointment of a conservator or receiver, holders </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of such mortgage-backed securities have the right to replace FNMA or FHLMC as trustee if the requisite percentage of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage-backed securities holders consent. The Reform Act prevents mortgage-backed security holders from
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">enforcing such rights if the event of default arises solely because a conservator or receiver has been appointed. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Reform Act also provides that no person may exercise any right or power to terminate, accelerate or declare an event </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of default under certain contracts to which FNMA or FHLMC is a party, or obtain possession of or exercise control </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">over any property of FNMA or FHLMC, or affect any contractual rights of FNMA or FHLMC, without the approval of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHFA, as conservator or receiver, for a period of 45 or 90 days following the appointment of FHFA as conservator or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">receiver, respectively.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">FHFA and the White House have made public statements regarding plans to consider ending the
conservatorships </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of FNMA and FHLMC. In the event that FNMA and FHLMC are taken out of conservatorship, it is unclear how the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital structure of FNMA and FHLMC would be constructed and what effects, if any, there may be on FNMA&#8217;s and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHLMC&#8217;s creditworthiness and guarantees of certain mortgage-backed securities. It is also unclear whether the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. Treasury would continue to enforce its rights or perform its obligations under the Senior Preferred Stock </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">5</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_6"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Programs. Should FNMA&#8217;s and FHLMC&#8217;s conservatorship end, there could be an adverse impact on the value of their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, which could cause losses to the Fund.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In June 2019, under the Single Security Initiative, FNMA and FHLMC started issuing a
uniform mortgage-backed </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">security (&#8220;UMBS&#8221;) in place of their current offerings of TBA-eligible securities. The Single Security Initiative seeks to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">support the overall liquidity of the TBA market and aligns the characteristics of FNMA and FHLMC certificates. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">effects that the Single Security Initiative may have on the market for TBA and other mortgage-backed securities are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">uncertain.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Privately Issued Mortgage-Related (Non-Agency) Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Commercial banks, savings and loan institutions, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">private mortgage insurance companies, mortgage bankers
and other secondary market issuers also create pass-through </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">pools of conventional residential mortgage loans. Such issuers may be the originators and/or servicers of the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying mortgage loans as well as the guarantors of the mortgage-related securities. Pools created by such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-governmental issuers generally offer a higher rate of interest than government and government-related pools </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">because there are no direct or indirect government or agency guarantees of payments in the former pools. However, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">timely payment of interest and principal of these pools may be supported by various forms of insurance or guarantees, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including individual loan, title, pool and hazard insurance and letters of credit, which may be issued by governmental </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entities, private insurers or the mortgage poolers. The insurance and guarantees are issued by governmental entities, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">private insurers or the mortgage poolers. Such insurance and guarantees, and the creditworthiness of the issuers </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">thereof, will be considered in determining whether a mortgage-related security meets the Fund&#8217;s investment quality </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">standards. There can be no assurance that insurers or guarantors can meet their obligations under the insurance policies </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or guarantee arrangements. The Fund may buy mortgage-related securities without insurance or guarantees. Securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issued by certain private organizations may not be readily marketable.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Privately issued mortgage-related securities are not subject to the same underwriting
requirements for the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying mortgages that are applicable to those mortgage-related assets that have a government or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government-sponsored entity guarantee. As a result, the mortgage loans underlying privately issued mortgage-related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government or government-sponsored mortgage-related securities and have wider variances in a number of terms </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including interest rate, term, size, purpose and borrower characteristics. Mortgage pools underlying privately issued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage-related securities more frequently include second mortgages, high loan-to-value ratio mortgages and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">manufactured housing loans, in addition to commercial mortgages and other types of mortgages where a government </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or government sponsored entity guarantee is not available. The coupon rates and maturities of the underlying mortgage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loans in a privately issued mortgage-related securities pool may vary to a greater extent than those included in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government guaranteed pool, and the pool may include subprime mortgage loans. Subprime loans are loans made to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrowers with weakened credit histories or with a lower capacity to make timely payments on their loans. For these </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reasons, the loans underlying these securities have had in many cases higher default rates than those loans that meet </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government underwriting requirements.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The risk of non-payment is greater for mortgage-related securities that are backed by loans
that were originated </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">under weak underwriting standards, including loans made to borrowers with limited means to make repayment. A level </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of risk exists for all loans, although, historically, the poorest performing loans have been those classified as subprime. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Other types of privately issued mortgage-related securities, such as those classified as pay-option adjustable rate or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Alt-A have also performed poorly. Even loans classified as prime have experienced higher levels of delinquencies and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">defaults. The substantial decline in real property values across the U.S. has exacerbated the level of losses that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investors in privately issued mortgage-related securities have experienced. It is not certain when these trends may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reverse. Market factors that may adversely affect mortgage loan repayment include adverse economic conditions, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">unemployment, a decline in the value of real property, or an increase in interest
rates.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase privately issued mortgage-related assets that are originated, packaged and serviced by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">third party entities. It is possible these third parties could have interests that are in conflict with the holders of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage-related assets, and such holders (such as the Fund) could have rights against the third parties or their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affiliates. For example, if a loan originator, servicer or its affiliates engaged in negligence or willful misconduct in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">carrying out its duties, then a holder of the mortgage-related asset could seek recourse against the originator/servicer or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">its affiliates, as applicable. Also, as a loan originator/servicer, the originator/servicer or its affiliates may make certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">representations and warranties regarding the quality of the mortgages and properties underlying a mortgage-related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">asset. If one or more of those representations or warranties is false, then the holders of the mortgage-related securities </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">6</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_7"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">(such as the Fund) could trigger an obligation of the originator/servicer or its affiliates, as applicable, to repurchase the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgages from the issuing trust. Notwithstanding the foregoing, many of the third parties that are legally bound by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">trust and other documents have failed to perform their respective duties, as stipulated in such trust and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">documents, and investors have had limited success in enforcing terms. To the extent third party entities involved with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">privately issued mortgage-related assets are involved in litigation relating to the securities, actions may be taken that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are adverse to the interests of holders of the mortgage-related securities, including the Fund. For example, third parties </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may seek to withhold proceeds due to holders of the mortgage-related assets, including the Fund, to cover legal or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">related costs. Any such action could result in losses to the Fund.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Privately issued mortgage-related securities are not traded on an exchange and there may be
a limited market for </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">active trading market, mortgage-related assets held in the Fund&#8217;s portfolio may be particularly difficult to value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">because of the complexities involved in assessing the value of the underlying mortgage loans.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The assets underlying mortgage-related securities may be represented by a portfolio of residential or commercial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgages (including both whole mortgage loans and mortgage participation interests that may be senior or junior in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">terms of priority of repayment) or portfolios of mortgage pass-through securities issued or guaranteed by GNMA, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FNMA or FHLMC. Mortgage loans underlying a mortgage-related security may in turn be insured or guaranteed by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the FHA or the VA. In the case of privately issued mortgage-related securities whose underlying assets are neither </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. government securities nor U.S. government-insured mortgages, to the extent that real properties securing such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets may be located in the same geographical region, the security may be subject to a greater risk of default than </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other comparable securities in the event of adverse economic, political or business developments that may affect such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">region and, ultimately, the ability of residential homeowners to make payments of principal and interest on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying mortgages.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In determining whether and how much to invest in privately issued mortgage-related
securities, and how to </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">allocate those assets, the Investment Manager will generally consider a number of factors. These may include, but are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not limited to: (1) the nature of the borrowers (e.g., residential vs. commercial); (2) the collateral loan type (e.g., for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">residential: First Lien &#8211; Jumbo/Prime, First Lien &#8211; Alt-A, First Lien &#8211; Subprime, First Lien &#8211; Pay-Option or Second </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Lien; for commercial: Conduit, Large Loan or Single Asset/Single Borrower); and (3) in the case of residential loans, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">whether they are fixed rate or adjustable mortgages. Each of these criteria can cause privately issued mortgage-related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities to have differing primary economic characteristics and distinguishable risk factors and performance </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">characteristics.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Collateralized Mortgage Obligations (&#8220;CMOs&#8221;).</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">A CMO is a debt obligation of a legal entity that is </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">collateralized by mortgages and divided into
classes. Similar to a bond, interest and prepaid principal is paid, in most </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">cases, semi-annually or on a monthly basis. CMOs may be collateralized by whole mortgage loans
or private mortgage </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">bonds, but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed by GNMA, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHLMC or FNMA, and their income streams.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">CMOs are structured into multiple classes, often referred to as &#8220;tranches,&#8221;
with each class bearing a different </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">stated maturity and entitled to a different schedule for payments of principal and interest, including pre-payments. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Actual maturity and average life will depend upon the pre-payment experience of the collateral. In the case of certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CMOs (known as &#8220;sequential pay&#8221; CMOs), payment of principal received from the pool of underlying mortgages, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including prepayments, are applied to the classes of CMOs in the order of their respective final distribution dates. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Thus, no payment of principal will be made to any class of sequential pay CMOs until all other classes having an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">earlier final distribution date have been paid in full.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In a typical CMO transaction, a corporation (&#8220;issuer&#8221;) issues multiple series
(e.g., A, B, C, Z) of CMO bonds </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;Bonds&#8221;). Proceeds of the Bond offering are used to purchase mortgages or mortgage pass-through certificates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;Collateral&#8221;). The Collateral is pledged to a third party trustee as security for the Bonds. Principal and interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments from the Collateral are used to pay principal on the Bonds in the order A, B, C, Z. The Series A, B, and C </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Bonds all bear current interest. Interest on the Series Z Bond is accrued and added to principal and a like amount is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">paid as principal on the Series A, B, or C Bond currently being paid off. When the Series A, B, and C Bonds are paid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in full, interest and principal on the Series Z Bond begins to be paid currently. With some CMOs, the issuer serves as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conduit to allow loan originations (primarily builders or savings and loan associations) to borrow against their loan </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolios. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage or ABS.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">7</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_8"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As CMOs have evolved, some classes of CMO bonds have become more common. For example, the Fund may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invest in parallel-pay and planned amortization class (&#8220;PAC&#8221;) CMOs and multi-class pass-through certificates. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Parallel-pay CMOs and multi-class pass-through certificates are structured to provide payments of principal on each </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payment date to more than one class. These simultaneous payments are taken into account in calculating the stated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">maturity date or final distribution date of each class, which, as with other CMO and multi-class pass-through </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">structures, must be retired by its stated maturity date or final distribution date but may be retired earlier. PACs </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally require payments of a specified amount of principal on each payment date. PACs are parallel-pay CMOs </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the required principal amount on such securities having the highest priority after interest has been paid to all </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">classes. Any CMO or multi-class pass-through structure that includes PAC securities must also have support
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">tranches&#8212;known as support bonds, companion bonds or non-PAC bonds&#8212;which lend or absorb principal cash flows </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to allow the PAC securities to maintain their stated maturities and final distribution dates within a range of actual </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prepayment experience. These support tranches are subject to a higher level of maturity risk compared to other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage-related securities, and usually provide a higher yield to compensate investors. If principal cash flows are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">received in amounts outside a pre-determined range such that the support bonds cannot lend or absorb sufficient cash </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">flows to the PAC securities as intended, the PAC securities are subject to heightened maturity risk. Consistent with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s investment objective and policies, PIMCO may invest in various tranches of CMO bonds, including support </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bonds.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">FHLMC Collateralized Mortgage Obligations. FHLMC CMOs are debt obligations of FHLMC issued
in multiple </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">classes having different maturity dates which are secured by the pledge of a pool of conventional mortgage loans </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchased by FHLMC. Payments of principal and interest on the CMOs are made semi-annually, as opposed to
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">monthly. The amount of principal payable on each semi-annual payment date is determined in accordance with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHLMC&#8217;s mandatory sinking fund schedule, which in turn, is equal to approximately 100% of FHA prepayment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">experience applied to the mortgage collateral pool. All sinking fund payments in the CMOs are allocated to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">retirement of the individual classes of bonds in the order of their stated maturities. Payment of principal on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage loans in the collateral pool in excess of the amount of FHLMC&#8217;s minimum sinking fund obligation for any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payment date are paid to the holders of the CMOs as additional sinking fund payments.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Because of the &#8220;pass-through&#8221; nature of all principal payments
received on the collateral pool in excess of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHLMC&#8217;s minimum sinking fund requirement, the rate at which principal of the CMOs is actually repaid is likely to
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">be such that each class of bonds will be retired in advance of its scheduled maturity date.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If collection of principal (including prepayments) on the mortgage loans during any semi-annual payment period </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is not sufficient to meet FHLMC&#8217;s minimum sinking fund obligation on the next sinking fund payment date, FHLMC </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agrees to make up the deficiency from its general funds.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Criteria for the mortgage loans in the pool backing the FHLMC CMOs are identical to those
of FHLMC PCs. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">FHLMC has the right to substitute collateral in the event of delinquencies and/or defaults.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Commercial or Residential Mortgage-Backed Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Commercial mortgage-backed securities (&#8220;CMBS&#8221;) and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">residential mortgage-backed securities
(&#8220;RMBS&#8221;) include securities that reflect an interest in, and are secured by, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage loans on commercial or residential real property. Many of the risks of
investing in CMBS or RMBS reflect </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the risks of investing in the real estate securing the underlying mortgage loans. These risks reflect the effects of local </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and other economic conditions on real estate markets, the ability of tenants to make loan payments, and the ability of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">property to attract and retain tenants. CMBS or RMBS may be less liquid and exhibit greater price volatility than other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">types of mortgage- or ABS.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">CMO Residuals.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CMO residuals are mortgage securities issued by agencies or instrumentalities of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. government or
by private originators of, or investors in, mortgage loans, including savings and loan associations, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">homebuilders, mortgage banks, commercial banks, investment banks and
special purpose entities of the foregoing.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make required </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments of principal and interest on the CMOs and second to pay the related administrative expenses and any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management fee of the issuer. The residual in a CMO structure generally represents the interest in any excess cash </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a CMO </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class of CMO, </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">8</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_9"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">prevailing interest rates, the amount of administrative expenses and the pre-payment experience on the mortgage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets. In particular, the yield to maturity on CMO residuals is extremely sensitive to pre-payments on the related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying mortgage assets, in the same manner as an interest-only (&#8220;IO&#8221;) class of SMBS. See &#8220;Stripped </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Mortgage-Backed Securities&#8221; below. In addition, if a series of a CMO includes a class that bears interest at an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adjustable rate, the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">level of the index upon which interest rate adjustments are based. As described below with respect to SMBS, in certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">circumstances the Fund may fail to recoup fully its initial investment in a CMO
residual.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">CMO residuals are generally purchased and sold by institutional investors through several investment banking </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">firms acting as brokers or dealers. CMO residuals may, or pursuant to an exemption therefrom, may not, have been </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">registered under the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;). CMO residuals, whether or not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">registered under the Securities Act, may be subject to certain restrictions on transferability.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Adjustable Rate Mortgage Backed Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ARMBS have interest rates that reset at periodic intervals. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Acquiring ARMBS permits the Fund to
participate in increases in prevailing current interest rates through periodic </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">adjustments in the coupons of mortgages underlying the pool on which ARMBS are based. Such
ARMBS generally </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">have higher current yield and lower price fluctuations than is the case with more traditional fixed-income debt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities of comparable rating and maturity. In addition, when prepayments of principal are made on the underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgages during periods of rising interest rates, the Fund can reinvest the proceeds of such prepayments at rates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">higher than those at which they were previously invested. Mortgages underlying most ARMBS, however, have limits </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on the allowable annual or lifetime increases that can be made in the interest rate that the mortgagor pays. Therefore, if </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">current interest rates rise above such limits over the period of the limitation, the Fund, when holding an ARMBS, does </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not benefit from further increases in interest rates. Moreover, when interest rates are in excess of coupon rates (i.e., the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rates being paid by mortgagors) of the mortgages, ARMBS behave more like fixed-income securities and less like </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adjustable rate securities and are subject to the risks associated with fixed-income securities. In addition, during </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">periods of rising interest rates, increases in the coupon rate of adjustable rate mortgages generally lag current market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rates slightly, thereby creating the potential for capital depreciation on such securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Stripped Mortgage-Backed
Securities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">SMBS are derivative multi-class mortgage securities. SMBS may be </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">issued by agencies or instrumentalities
of the U.S. government, or by private originators of, or investors in, mortgage </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">loans, including savings and loan associations, mortgage banks, commercial banks,
investment banks and special </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">purpose entities of the foregoing.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">SMBS are usually structured with two classes that receive different
proportions of the interest and principal </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions on a pool of mortgage assets. A common type of SMBS will have one class receiving some of the interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and most of the principal from the mortgage assets, while the other class will receive most of the interest and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">remainder of the principal. In the most extreme case, one class will receive all of the interest (the &#8220;IO&#8221; class), while the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other class will receive all of the principal (the &#8220;PO&#8221; class). The yield to maturity on an IO class is extremely sensitive </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the rate of principal payments (including prepayments) on the related underlying mortgage assets, and a rapid rate of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal payments may have a material adverse effect on the Fund&#8217;s yield to maturity from these securities. If the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to recoup </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">some or all of its initial investment in these securities even if the security is in one of the highest rating categories. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">SMBS may be deemed &#8220;illiquid.&#8221;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Other Mortgage-Related Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Other mortgage-related securities include securities other than those </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">described above that directly or
indirectly represent a participation in, or are secured by and payable from, mortgage </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">loans on real property, including mortgage dollar rolls/buy backs, CMO residuals or
SMBS. Other mortgage-related </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities may be equity or debt securities issued by agencies or instrumentalities of the U.S. government or by private </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">originators of, or investors in, mortgage loans, including savings and loan associations, homebuilders, mortgage banks, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commercial banks, investment banks, partnerships, trusts and special purpose entities of the foregoing.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Mortgage-related securities include, among other things, securities that reflect an interest in reverse mortgages. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a reverse mortgage, a lender makes a loan to a homeowner based on the homeowner&#8217;s equity in his or her home. While </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a homeowner must be age 62 or older to qualify for a reverse mortgage, reverse mortgages may have no income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">restrictions. Repayment of the interest or principal for the loan is generally not required until the homeowner dies, sells </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the home, or ceases to use the home as his or her primary residence.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
</div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">9</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_10"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">There are three general types of reverse mortgages: (1) single-purpose reverse mortgages, which are offered by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain state and local government agencies and nonprofit organizations; (2) federally-insured reverse mortgages, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which are backed by the U. S. Department of Housing and Urban Development; and (3) proprietary reverse mortgages, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which are privately offered loans. A mortgage-related security may be backed by a single type of reverse mortgage. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Reverse mortgage-related securities include agency and privately issued mortgage-related securities. The principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government guarantor of reverse mortgage-related securities is GNMA.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Reverse mortgage-related securities may be subject to risks different than other types of
mortgage-related </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities due to the unique nature of the underlying loans. The date of repayment for such loans is uncertain and may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">occur sooner or later than anticipated. The timing of payments for the corresponding mortgage-related security may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">uncertain. Because reverse mortgages are offered only to persons 62 and older and there may be no income
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">restrictions, the loans may react differently than traditional home loans to market events. Additionally, there can be no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assurance that service providers to reverse mortgage trusts (&#8220;RMTs&#8221;) will diligently and appropriately execute their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">duties with respect to servicing such trusts. As a result, investors (which may include the Fund) in notes issued by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">RMTs may be deprived of payments to which they are entitled. This could result in losses to the Fund. Investors, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including the Fund, may determine to pursue negotiations or legal claims or otherwise seek compensation from RMT </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">service providers in certain instances. This may involve the Fund incurring costs and expenses associated with such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">actions.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Asset-Backed Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund may invest in, or have exposure to, ABS, which are securities that represent a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">participation
in, or are secured by and payable from, a stream of payments generated by particular assets, most often a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">pool or pools of similar assets (e.g., trade receivables). ABS
are created from many types of assets, including, but not </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">limited to, auto loans, accounts receivable such as credit card receivables and hospital account receivables,
home </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">aircraft leases, computer leases and syndicated bank loans. The credit quality of these securities depends primarily </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">upon the quality of the underlying assets and the level of credit support and/or enhancement provided. To protect ABS </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investors from the possibility that some borrowers could miss payments or even default on their loans, ABS include </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">various forms of credit enhancement.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The underlying assets (e.g., loans) are subject to prepayments that shorten the
securities&#8217; weighted average </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">maturity and may lower their return. If the credit support or enhancement is exhausted, losses or delays in payment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may result if the required payments of principal and interest are not made. The value of these securities also may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">change because of changes in the market&#8217;s perception of the creditworthiness of the servicing agent for the pool, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">originator of the pool, or the financial institution or trust providing the credit support or enhancement. Typically, there </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is no perfected security interest in the collateral that relates to the financial assets that support ABS. ABS have many of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the same characteristics and risks as the mortgage-backed securities described above.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase or have exposure to commercial paper, including
asset-backed commercial paper </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;ABCP&#8221;), that is issued by structured investment vehicles or other conduits. These conduits may be sponsored by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage companies, investment banking firms, finance companies, hedge funds, private equity firms and special </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purpose finance entities. ABCP typically refers to a short-term debt security, the payment of which is supported by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cash flows from underlying assets, or one or more liquidity or credit support providers, or both. Assets backing ABCP </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">include credit card, car loan and other consumer receivables and home or commercial mortgages, including subprime </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgages. The repayment of ABCP issued by a conduit depends primarily on the cash collections received from the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conduit&#8217;s underlying asset portfolio and the conduit&#8217;s ability to issue new ABCP. Therefore, there could be losses to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund if investing in ABCP in the event of credit or market value deterioration in the conduit&#8217;s underlying portfolio, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ABCP, or the conduit&#8217;s inability to issue new ABCP. To protect investors from these risks, ABCP programs may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">structured with various protections, such as credit enhancement, liquidity support, and commercial paper stop-issuance </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and wind-down triggers. However, there can be no guarantee that these protections will be sufficient to prevent losses </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to investors in ABCP. Some ABCP programs provide for an extension of the maturity date of the ABCP if, on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">related maturity date, the conduit is unable to access sufficient liquidity through the issue of additional ABCP. This </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may delay the sale of the underlying collateral and the Fund may incur a loss if the value of the collateral deteriorates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">during the extension period. Alternatively, if collateral for ABCP deteriorates in value, the collateral may be required to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be sold at inopportune times or at prices insufficient to repay the principal and interest on the ABCP. ABCP programs </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may provide for the issuance of subordinated notes as an additional form of credit enhancement. The subordinated </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">10</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_11"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">notes are typically of a lower credit quality and have a higher risk of default. To the extent the Fund purchases these </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subordinated notes, it will have a higher likelihood of loss than investors in the senior notes.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some ABS, particularly home equity loan transactions, are subject to interest-rate risk and prepayment risk. A </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">change in interest rates can affect the pace of payments on the underlying loans, which in turn, affects total return on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the securities. ABS also carry credit or default risk. If many borrowers on the underlying loans default, losses could </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exceed the credit enhancement level and result in losses to investors in an ABS transaction. Additionally, the value of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ABS is subject to risks associated with the servicers&#8217; performance. In some circumstances, a servicer&#8217;s or originator&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mishandling of documentation related to the underlying collateral (e.g., failure to properly document a security interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the underlying collateral) may affect the rights of the security holders in and to the underlying collateral. Finally, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ABS have structure risk due to a unique characteristic known as early amortization, or early payout, risk. Built into the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">structure of most ABS are triggers for early payout, designed to protect investors from losses. These triggers are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">unique to each transaction and can include: a big rise in defaults on the underlying loans, a sharp drop in the credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">enhancement level, or even the bankruptcy of the originator. Once early amortization begins, all incoming loan </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments (after expenses are paid) are used to pay investors as quickly as possible based upon a predetermined priority </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of payment.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:20pt;">Collateralized Bond Obligations, Collateralized Loan Obligations and Other
Collateralized Debt
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;">Obligations.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund may invest in each of CBOs, CLOs, other CDOs and other similarly
structured securities. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">CBOs, CLOs and other CDOs are types of ABS. A CBO is a trust that is often backed by a diversified pool of high </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risk, below investment grade fixed-income securities. The collateral can be from many different types of fixed-income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities such as high-yield debt, residential privately issued mortgage-related securities, commercial or residential </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">privately issued mortgage-related securities, trust preferred securities and emerging market debt. A CLO is a trust </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loans, senior unsecured loans and subordinate corporate loans, including loans that may be rated below investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">various parties. CBOs, CLOs and other CDOs may charge management fees and administrative expenses.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For CBOs, CLOs and other CDOs, the cash flows from the trust are split into two or more portions, called </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tranches, varying in risk and yield. The riskiest portion is the &#8220;equity&#8221; tranche which bears the bulk of defaults from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">severe circumstances. Since it is partially protected from defaults, a senior tranche from a CBO trust, CLO trust or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">trust of another CDO typically have higher ratings and lower yields than their underlying securities, and can be rated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment grade. Despite the protection from the equity tranche, CBO, CLO or other CDO tranches can experience </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">substantial losses due to actual defaults, downgrades of the underlying collateral by rating agencies, forced liquidation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the collateral pool due to a failure of coverage tests, increased sensitivity to defaults due to collateral default and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO, CLO or other CDO </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities as a class. Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">form of obligations of the same type rather than cash), which involves continued exposure to default risk with respect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to such payments.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The risks of an investment in a CBO, CLO or other CDO depend largely on the type of the
collateral securities </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and the class of the instrument in which the Fund invests. Normally, CBOs, CLOs and other CDOs are privately </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offered and sold, and thus, are not registered under the securities laws. As a result, investments in CBOs, CLOs and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other CDOs may be characterized by the Fund as illiquid investments. However, an active dealer market may exist for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CBOs, CLOs and other CDOs allowing them to qualify for transactions under Rule 144A of the Securities Act. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">addition to the normal risks associated with fixed-income securities discussed elsewhere in this Statement of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Additional Information and the Prospectus (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">based on multiples of changes in interest rates or inversely to changes in interest rates) and default risk), CBOs, CLOs </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and other CDOs carry additional risks that include, but are not limited to: (i) the possibility that distributions from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">collateral securities will not be adequate to make interest or other payments; (ii) the risk that the quality of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">collateral may decline in value or default; (iii) the risk that the Fund may invest in CBOs, CLOs or other CDOs that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are subordinate to other classes; (iv) the complex structure of the security may not be fully understood at the time of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment and may produce disputes with the issuer or unexpected investment results; (v) the investment return </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">achieved by the Fund could be significantly different than those predicted by financial models; (vi) the lack of a </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">11</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_12"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">readily available secondary market for CDOs; (vii) risk of forced &#8220;fire sale&#8221; liquidation due to technical defaults such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as coverage test failures; and (viii) the CDO&#8217;s manager may perform poorly.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Other Asset-Backed Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Similarly, PIMCO expects that other ABS (unrelated to mortgage loans) will be </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">offered to investors in
the future and may be purchased by the Fund. Several types of ABS have already been offered </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to investors, including Enhanced Equipment Trust Certificates
(&#8220;EETCs&#8221;) and Certificates for Automobile Receivables </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;CARS&#8221;).</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">EETCs are typically issued by specially-created trusts established by airlines, railroads, or other transportation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">corporations. The proceeds of EETCs are used to purchase equipment, such as airplanes, railroad cars, or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">equipment, which in turn serve as collateral for the related issue of the EETCs. The equipment generally is leased by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the airline, railroad or other corporation, which makes rental payments to provide the projected cash flow for payments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to EETC holders. Holders of EETCs must look to the collateral securing the certificates, typically together with a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guarantee provided by the lessee corporation or its parent company for the payment of lease obligations, in the case of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">default in the payment of principal and interest on the EETCs. However, because principal and interest payments on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">EETCs are funded in the ordinary course by the lessee corporation, the Fund treats EETCs as corporate
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">bonds/obligations for purposes of compliance testing and related classifications.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">CARS represent undivided fractional interests in a trust whose assets consist of a pool of motor vehicle retail </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">installment sales contracts and security interests in the vehicles securing the contracts. Payments of principal and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest on CARS are passed through monthly to certificate holders, and are guaranteed up to certain amounts and for a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain time period by a letter of credit issued by a financial institution unaffiliated with the trustee or originator of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">trust. An investor&#8217;s return on CARS may be affected by early prepayment of principal on the underlying vehicle sales </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts. If the letter of credit is exhausted, the trust may be prevented from realizing the full amount due on a sales </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract because of state law requirements and restrictions relating to foreclosure sales of vehicles and the obtaining of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deficiency judgments following such sales or because of depreciation, damage or loss of a vehicle, the application of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">federal and state bankruptcy and insolvency laws, or other factors. As a result, certificate holders may experience </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delays in payments or losses if the letter of credit is exhausted.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Consistent with the Fund&#8217;s investment objective and policies, PIMCO also may invest
in other types of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">asset-backed and related securities (such as credit card receivables or student loans). Other ABS may be collateralized </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the fees earned by service providers. The value of ABS may be substantially dependent on the servicing of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying asset pools and is therefore subject to risks associated with the negligence by, or defalcation of, their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">servicers. In certain circumstances, the mishandling of related documentation may also affect the rights of the security </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holders in and to the underlying collateral. The insolvency of entities that generate receivables or that utilize the assets </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may result in added costs and delays in addition to losses associated with a decline in the value of the underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investors should note that Congress from time to time may consider actions that would limit
or remove the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">explicit or implicit guarantee of the payment of principal and/or interest on many types of ABS. Any such action </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would likely adversely impact the value of such securities.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Real Estate Assets and Related Derivatives</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may generally gain exposure to the real estate sector by investing in real-estate linked derivatives, real </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">estate investment trusts (&#8220;REITs&#8221;) and common, preferred and convertible securities of issuers in real estate-related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">industries. The Fund may also invest in loans or other investments secured by real estate (other than mortgage-backed </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities) and may, as a result of default, foreclosure or otherwise, take possession of and hold real estate as a direct </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">owner (see &#8220;Loans and Other Indebtedness; Loan Participations and Assignments&#8221; below). Each of these types of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments are subject, directly or indirectly, to risks associated with ownership of real estate, including changes in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the general economic climate or local conditions (such as an oversupply of space or a reduction in demand for space), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loss to casualty or condemnation, increases in property taxes and operating expenses, zoning law amendments, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">changes in interest rates, overbuilding and increased competition, including competition based on rental rates, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">variations in market value, changes in the financial condition of tenants, changes in operating costs, attractiveness and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">location of the properties, adverse changes in the real estate markets generally or in specific sectors of the real estate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">industry and possible environmental liabilities. Real estate-related investments may entail leverage and may be highly </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">volatile.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">12</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_13"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">REITs are pooled investment vehicles that own, and typically operate, income-producing real estate. If a REIT </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">meets certain requirements, including distributing to shareholders substantially all of its taxable income (other than net </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital gains), then it is not generally taxed on the income distributed to shareholders. REITs are subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management fees and other expenses, and so the Fund would bear its proportionate share of the costs of the REITs&#8217; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">operations if it invests in REITs. Dividends received by the Fund from a REIT generally will not constitute qualified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend income. REITs may not provide complete tax information to the Fund until after the calendar year-end. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Consequently, because of the delay, it may be necessary for the Fund to request permission from the IRS to extend the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deadline for issuance of Forms 1099-DIV.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">There are three general categories of REITs: Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invest primarily in direct fee ownership or leasehold ownership of real property; they derive most of their income from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rents. Mortgage REITs invest mostly in mortgages on real estate, which may secure construction, development or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">long-term loans, and the main source of their income is mortgage interest payments. Hybrid REITs hold both
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">ownership and mortgage interests in real estate.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Along with the risks common to different types of real estate-related securities, REITs, no matter the type, involve </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">additional risk factors. These include poor performance by the REIT&#8217;s manager, changes to the tax laws, and failure by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the REIT to qualify for favorable tax treatment or exemption under the 1940 Act. Furthermore, REITs are&nbsp;not typically </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">diversified and are heavily dependent on cash flow. Investments in REIT equity securities could require the Fund to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accrue and distribute income not yet received by the Fund. On the other hand, investments in REIT equity securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">can also result in the Fund&#8217;s receipt of cash in excess of the REIT&#8217;s earnings; if the Fund distributes such amounts, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such distribution could constitute a return of capital to Fund shareholders for federal income tax purposes &nbsp;under the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;). In addition, some REITs have limited diversification </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">because they invest in a limited number of properties, a narrow geographic area, or a single type of property. Also, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">organizational documents of a REIT may contain provisions that make changes in control of the REIT difficult and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time-consuming. Finally, private REITs are not traded on a national securities exchange. This reduces the ability of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund to redeem its investment early. Private REITs are also generally harder to value and may bear higher fees than </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">public REITs.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some of the REITs in which the Fund may invest may be permitted to hold senior or residual
interests in real </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">estate mortgage investment conduits (&#8220;REMICs&#8221;) or debt or equity interests in taxable mortgage pools (&#8220;TMPs&#8221;). The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may also hold interests in &#8220;Re-REMICs&#8221;, which are interests in securitizations formed by the contribution of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">asset backed or other similar securities into a trust which then issues securities in various tranches. The Fund may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participate in the creation of a Re-REMIC by contributing assets to the trust and receiving junior and/or senior </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities in return. An interest in a Re-REMIC security may be riskier than the securities originally held by and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contributed to the trust, and the holders of the Re-REMIC securities will bear the costs associated with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securitization.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Foreign (Non-U.S.) Securities</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Subject to the limit described in the Prospectus on investments in securities and
instruments that are economically </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">tied to &#8220;emerging market&#8221; countries, the Fund may invest without limitation in instruments of corporate and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign (non-U.S.) issuers, and in instruments traded principally outside of the United States. The Fund may invest in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sovereign and other debt securities issued by foreign governments and their respective sub-divisions, agencies or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrumentalities, government sponsored enterprises and supranational government entities. The Fund may also invest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">directly in foreign currencies, including currencies of emerging market countries.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The foreign securities in which the Fund may invest include without limitation Eurodollar obligations and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Yankee Dollar&#8221; obligations. Eurodollar obligations are U.S. dollar-denominated certificates of deposit and time </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deposits issued outside the U.S. capital markets by foreign branches of U.S. banks and by foreign banks. Yankee </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Dollar obligations are U.S. dollar-denominated obligations issued in the U.S. capital markets by foreign banks. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Eurodollar and Yankee Dollar obligations are generally subject to the same risks that apply to domestic debt issues, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">notably credit risk, interest rate risk, market risk and liquidity risk. Additionally, Eurodollar (and to a limited extent, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Yankee Dollar) obligations are subject to certain sovereign risks. One such risk is the possibility that a sovereign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">country might prevent capital, in the form of U.S. dollars, from flowing across its borders. Other risks include adverse </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">13</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_14"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">political and economic developments; the extent and quality of government regulation of financial markets and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">institutions; the imposition of foreign withholding or other taxes; and the expropriation or nationalization of foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuers.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The
Fund may also invest in American Depositary Receipts (&#8220;ADRs&#8221;), European Depositary Receipts (&#8220;EDRs&#8221;) </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">or Global Depositary Receipts
(&#8220;GDRs&#8221;). ADRs are U.S. dollar-denominated receipts issued generally by domestic </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">banks and represent the deposit with the bank of a security of a non-U.S.
issuer. EDRs are foreign </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency-denominated receipts similar to ADRs and are issued and traded in Europe, and are publicly traded on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchanges or OTC in the United States. GDRs may be offered privately in the United States and also trade in public or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">private markets in other countries. ADRs, EDRs and GDRs may be issued as sponsored or unsponsored programs. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sponsored programs, an issuer has made arrangements to have its securities trade in the form of ADRs, EDRs or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">GDRs. In unsponsored programs, the issuer may not be directly involved in the creation of the program. Although </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulatory requirements with respect to sponsored and unsponsored programs are generally similar, in some cases it </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be easier to obtain financial information from an issuer that has participated in the creation of a sponsored </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">program.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investing in non-U.S. securities involves special risks and considerations not typically
associated with investing in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. securities. These include: differences in accounting, auditing and financial reporting standards, generally higher </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commission rates on non-U.S. portfolio transactions, the possibility of expropriation or confiscatory taxation, adverse </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">changes in investment or exchange control regulations including the imposition of sanctions and other similar </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">measures&nbsp;(which may include suspension of the ability to transfer currency from a country), market disruption, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">possibility of security suspensions, political instability which can affect U.S. investments in non-U.S. countries and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">potential restrictions on the flow of international capital. In addition, foreign securities and the Fund&#8217;s income in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">respect of those securities may be subject to foreign taxes, including taxes withheld from payments on those securities, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which would reduce the Fund&#8217;s return on such securities. Non-U.S. securities often trade with less frequency and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">volume than domestic securities and therefore may exhibit greater price volatility. Changes in foreign exchange rates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will affect the value of those securities that are denominated or quoted in currencies other than the U.S. dollar. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currencies of non-U.S. countries may experience significant declines against the U.S. dollar, and devaluation may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">occur subsequent to investments in these currencies by the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investment in sovereign debt can involve a high degree of risk. The governmental entity that controls the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in accordance </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the terms of the debt. A governmental entity&#8217;s willingness or ability to repay principal and interest due in a timely </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">manner may be affected by, among other factors, its cash flow situation, the extent of its foreign reserves, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the economy as a whole, the governmental entity&#8217;s policy toward the International Monetary Fund, and the political </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">constraints to which a governmental entity may be subject. Governmental entities also&nbsp;may depend on expected </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disbursements from foreign governments, multilateral agencies and others to reduce principal and interest arrearages </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on their debt. The commitment on the part of these governments, agencies and others to make such disbursements may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be conditioned on a governmental entity&#8217;s implementation of economic reforms and/or economic performance and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">timely service of such debtor&#8217;s obligations. Failure to implement such reforms, achieve such levels of economic </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">performance or repay principal or interest when due may result in the cancellation of such third parties&#8217; commitments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to lend funds to the governmental entity, which may further impair such debtor&#8217;s ability or willingness to service its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">debts in a timely manner. Consequently, governmental entities may default on their sovereign debt. Holders of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sovereign debt (including the Fund) may be requested to participate in the rescheduling of such debt and to extend </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">further loans to governmental entities. There is no bankruptcy proceeding by which sovereign debt on which
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">governmental entities have defaulted may be collected in whole or in part. Quasi-sovereign obligations are typically </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">less liquid and less standardized than direct sovereign obligations.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The investments in foreign currency denominated debt obligations and hedging activities by the Fund will likely </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">produce a difference between the Fund&#8217;s book income and its taxable income. This difference may cause a portion of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s income distributions to constitute returns of capital for tax purposes or require the Fund to make </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions exceeding book income to qualify as a regulated investment company (&#8220;RIC&#8221;) for U.S. federal tax </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purposes. The Fund&#8217;s investments in non-U.S. securities may increase or accelerate the amount of ordinary income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recognized by shareholders. See &#8220;Taxation.&#8221;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">14</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_15"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Euro- and European Union-related risks.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The global economic crisis brought several small economies in Europe </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the brink of bankruptcy and many
other economies into recession and weakened the banking and financial sectors of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">many European countries. For example, the governments of Greece, Spain, Portugal, and the
Republic of Ireland have </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">all experienced large public budget deficits, the effects of which are still yet unknown and may slow the overall </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recovery of the European economies from the global economic crisis. In addition, due to large public deficits, some </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">European countries may be dependent on assistance from other European governments and institutions or other central </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">banks or supranational agencies such as the International Monetary Fund. Assistance may be dependent on a country&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">implementation of reforms or reaching a certain level of performance. Failure to reach those objectives or an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">insufficient level of assistance could result in a deep economic downturn which could significantly affect the value of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s European investments.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Economic and Monetary Union of the European Union (&#8220;EMU&#8221;) is comprised of the European Union (&#8220;EU&#8221;) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">members that have adopted the euro currency. By adopting the euro as its currency, a member state relinquishes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">control of its own monetary policies. As a result, European countries are significantly affected by fiscal and monetary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">policies implemented by the EMU and European Central Bank. The euro currency may not fully reflect the strengths </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and weaknesses of the various economies that comprise the EMU and Europe generally.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">It is possible that one or more EMU member countries could abandon the euro and return to a national currency </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and/or that the euro will cease to exist as a single currency in its current form. The effects of such an abandonment or a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">country&#8217;s forced expulsion from the euro on that country, the rest of the EMU, and global markets are impossible to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">predict, but are likely to be negative. The exit of any country out of the euro may have an extremely destabilizing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">effect on other Eurozone countries and their economies and a negative effect on the global economy as a whole. Such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">an exit by one country may also increase the possibility that additional countries may exit the euro should they face </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">similar financial difficulties. In addition, in the event of one or more countries&#8217; exit from the euro, it may be difficult to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value investments denominated in euros or in a replacement currency.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">On January 31, 2020, the United Kingdom officially withdrew from the EU (commonly known as &#8220;Brexit&#8221;). </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Upon the United Kingdom&#8217;s withdrawal, the EU and the United Kingdom entered into a transition phase, which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">concluded on December 31, 2020. Negotiators representing the United Kingdom and EU came to a preliminary trade </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreement that took effect on January 1, 2021, but many aspects of the United Kingdom-EU trade relationship remain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to further negotiation. Uncertainties remain relating to certain aspects of the United Kingdom&#8217;s future </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">economic, trading, and legal relationships with the European Union and with other countries. Due to political </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">uncertainty, it is not possible to anticipate the form or nature of the future trading relationship between the United </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Kingdom and the EU. The UK, EU and broader global economy may experience substantial volatility in foreign
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange markets and a sustained weakness in the British pound&#8217;s exchange rate against the United States dollar, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">euro and other currencies, which may impact Fund returns. Brexit may also destabilize some or all of the other EU </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">member countries and/or the Eurozone. These developments could result in losses to the Fund, as there may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">negative effects on the value of the Fund&#8217;s investments and/or on the Fund&#8217;s ability to enter into certain transactions or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value certain investments, and these developments may make it more difficult for the Fund to exit certain investments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">at an advantageous time or price. Such events could result from, among other things, increased uncertainty and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">volatility in the United Kingdom, the EU and other financial markets; fluctuations in asset values; fluctuations in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange rates; decreased liquidity of investments located, traded or listed within the United Kingdom, the EU or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">elsewhere; changes in the willingness or ability of financial and other counterparties to enter into transactions or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price and terms on which other counterparties are willing to transact; and/or changes in legal and regulatory regimes to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which Fund investments are or become subject. Any of these events, as well as an exit or expulsion of an EU member </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">state other than the United Kingdom from the EU, could negatively impact Fund returns.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Foreign Currency Transactions</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase and sell foreign currency options and foreign currency futures contracts and related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">options (see &#8220;Derivative Instruments&#8221; below), and may engage in foreign currency transactions either on a spot (cash) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">basis at the rate prevailing in the currency exchange market at the time or through forward currency contracts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;forwards&#8221;). The Fund may engage in these transactions in order to attempt to protect against uncertainty in the level </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of future foreign exchange rates in the purchase and sale of securities or because PIMCO believes a currency is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">overvalued. The Fund may also use foreign currency options, foreign currency forward contracts, foreign currency </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures and foreign currency spot transactions to increase exposure to a foreign currency or to shift exposure to foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency fluctuations from one currency to another.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">15</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_16"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A forward involves an obligation to purchase or sell a certain amount of a specific currency at a future date, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time of the contract. These contracts may be bought or sold to protect the Fund against a possible loss resulting from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">an adverse change in the relationship between foreign currencies and the U.S. dollar or to increase exposure to a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particular foreign currency. Although, when used for hedging, forwards are intended to minimize the risk of loss due to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a decline in the value of the hedged currencies, at the same time, they tend to limit any potential gain which might </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">result should the value of such currencies increase. Forwards are used primarily to adjust the foreign exchange </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exposure of the Fund with a view to protecting the outlook, and the Fund might be expected to enter into such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts under the following circumstances:</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Lock In.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> When PIMCO desires to lock in the U.S.
dollar price on the purchase or sale of a security denominated </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">in a foreign currency.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Cross Hedge.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> If a particular currency is expected
to decrease against another currency, the Fund may sell the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency expected to decrease and purchase a currency which is expected to increase against the currency sold
in an </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">amount approximately equal to some or all of the Fund&#8217;s portfolio holdings denominated in the currency sold.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Direct Hedge.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;"> If PIMCO wants to limit the risk of owning a particular currency, and/or if PIMCO thinks that the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund
can benefit from price appreciation in a given country&#8217;s bonds but does not want to hold the currency, it may </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">employ a direct hedge back into the U.S. dollar. In
either case, the Fund would enter into a forward contract to sell the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency in which a portfolio security is denominated and purchase U.S. dollars at an exchange rate
established at the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">time it initiated the contract. The cost of the direct hedge transaction may offset most, if not all, of the yield advantage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offered by the foreign security, but the Fund would hope to benefit from an increase (if any) in the value of the bond.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Proxy Hedge.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;"> The Fund might choose to use a proxy hedge, which may be less costly than a direct hedge. In this </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">case,
the Fund, having purchased a security, will sell a currency whose value is believed to be closely linked to the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency in which the security is denominated. Interest
rates prevailing in the country whose currency was sold would </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">be expected to be closer to those in the United States and lower than those of securities denominated in the
currency of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the original holding. This type of hedging entails greater risk than a direct hedge because it is dependent on a stable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relationship between the two currencies paired as proxies and the relationships can be very unstable at times.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Costs of Hedging.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;"> When the Fund purchases a foreign (non-U.S.) bond with a higher interest rate than is </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">available on U.S.
bonds of a similar maturity, the additional yield on the foreign (non-U.S.) bond could be </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">substantially reduced or lost if the Fund were to enter into a direct hedge by
selling the foreign currency and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchasing the U.S. dollar. This is what is known as the &#8220;cost&#8221; of hedging. Proxy hedging attempts to reduce this cost
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">through an indirect hedge back to the U.S. dollar.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">It is important to note that hedging costs are treated as capital transactions and are not, therefore, deducted from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s dividend distribution and are not reflected in its yield. Instead such costs will, over time, be reflected in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s net asset value per share.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may enter into foreign currency transactions as a substitute for cash investments and for other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment purposes not involving hedging, including, without limitation, to exchange payments received in a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency into U.S. dollars or in anticipation of settling a transaction that requires the Fund to deliver a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The forecasting of currency market movement is extremely difficult, and whether any hedging
strategy will be </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">successful is highly uncertain. Moreover, it is impossible to forecast with precision the market value of portfolio </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities at the expiration of a foreign currency forward contract. Accordingly, the Fund may be required to buy or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sell additional currency on the spot market (and bear the expense of such transaction) if PIMCO&#8217;s predictions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regarding the movement of foreign currency or securities markets prove inaccurate. Also, foreign currency
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions, like currency exchange rates, can be affected unpredictably by intervention (or the failure to intervene) by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. or foreign governments or central banks, or by currency controls or political developments. Such events may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prevent or restrict the Fund&#8217;s ability to enter into foreign currency transactions, force the Fund to exit a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency transaction at a disadvantageous time or price or result in penalties for the Fund, any of which may result in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loss to the Fund. In addition, the use of cross-hedging transactions may involve special risks, and may leave the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in a less advantageous position than if such a hedge had not been established. Because foreign currency forward </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">16</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_17"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">contracts are privately negotiated transactions, there can be no assurance that the Fund will have the flexibility to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">roll-over a foreign currency forward contract upon its expiration if it desires to do so. Additionally, there can be no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assurance that the other party to the contract will perform its services thereunder. Under definitions adopted by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. Commodity Futures Trading Commission (the &#8220;CFTC&#8221;) and the SEC, many non-deliverable foreign currency </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">forwards are considered swaps for certain purposes, including determination of whether such instruments need to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange-traded and centrally cleared as discussed further in &#8220;Risks of Potential Government Regulation of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Derivatives&#8221; and &#8220;Additional Risk Factors in Cleared Derivatives Transactions.&#8221; These changes are expected to reduce </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">counterparty risk as compared to bi-laterally negotiated contracts.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may hold a portion of its assets in bank deposits denominated in foreign currencies, so as to facilitate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment in foreign securities as well as to protect against currency fluctuations and the need to convert such assets </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">into U.S. dollars (thereby also reducing transaction costs). To the extent these monies are converted back into </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. dollars, the value of the assets so maintained will be affected favorably or unfavorably by changes in foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency exchange rates and exchange control regulations.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Tax Consequences of Hedging and other Foreign Currency Transactions.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;"> Foreign currency gains are generally </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">treated as qualifying income for purposes of the 90% gross income
test described under &#8220;Taxation&#8221; below. However, it </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">is possible the Internal Revenue Service (&#8220;IRS&#8221;) could issue contrary regulations with respect
to foreign currency </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">gains that are not directly related to a RIC&#8217;s principal business of investing in stocks or securities (or options or futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with respect to stocks or securities), and such regulations could apply retroactively. Such regulations, if issued, could </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limit the ability of the Fund to enter into the foreign currency transactions described above or could bear adversely on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s ability to qualify as a RIC. In addition, hedging transactions may result in the application of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mark-to-market and straddle provisions of the Code. Those provisions could affect the amount, timing or character of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends paid by the Fund, including whether dividends paid by the Fund are classified as capital gains or ordinary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Foreign
Currency Exchange-Related Securities</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Foreign Currency
Warrants.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Foreign currency warrants such as Currency Exchange Warrants are warrants which </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">entitle the holder to
receive from their issuer an amount of cash (generally, for warrants issued in the United States, in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. dollars) which is calculated pursuant to a predetermined formula
and based on the exchange rate between a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">specified foreign currency and the U.S. dollar as of the exercise date of the warrant. Foreign currency warrants </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally are exercisable upon their issuance and expire as of a specified date and time. Foreign currency warrants </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have been issued in connection with U.S. dollar-denominated debt offerings by major corporate issuers in an attempt to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reduce the foreign currency exchange risk which, from the point of view of prospective purchasers of the securities, is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">inherent in the international fixed-income marketplace. Foreign currency warrants may attempt to reduce the foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange risk assumed by purchasers of a security by, for example, providing for a supplemental payment in the event </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that the U.S. dollar depreciates against the value of a major foreign currency such as the Japanese yen or the Euro. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">formula used to determine the amount payable upon exercise of a foreign currency warrant may make the warrant </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">worthless unless the applicable foreign currency exchange rate moves in a particular direction (e.g., unless the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. dollar appreciates or depreciates against the particular foreign currency to which the warrant is linked or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">indexed)&nbsp;or degree. Foreign currency warrants are severable from the debt obligations with which they may be offered, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and may be listed on exchanges. Foreign currency warrants may be exercisable only in certain minimum amounts, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">an investor wishing to exercise warrants who possesses less than the minimum number required for exercise may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">required either to sell the warrants or to purchase additional warrants, thereby incurring additional transaction costs. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the case of any exercise of warrants, there may be a time delay between the time a holder of warrants gives </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instructions to exercise and the time the exchange rate relating to exercise is determined, during which time the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange rate could change significantly, thereby affecting both the market and cash settlement values of the warrants </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">being exercised. The expiration date of the warrants may be accelerated if the warrants should be delisted from an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange or if their trading should be suspended permanently, which would result in the loss of any remaining &#8220;time </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value&#8221; of the warrants (i.e., the difference between the current market value and the exercise value of the warrants), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and, in the case the warrants were &#8220;out-of-the-money,&#8221; in a total loss of the purchase price of the warrants. Warrants </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are generally unsecured obligations of their issuers and are not standardized foreign currency options issued by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Options Clearing Corporation (&#8220;the OCC&#8221;). Unlike foreign currency options issued by the OCC, the terms of foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange warrants generally will not be amended in the event of governmental or regulatory actions affecting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange rates or in the event of the imposition of other regulatory controls affecting the international currency </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets. The initial public offering price of foreign currency warrants is generally considerably in excess of the price </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">17</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_18"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">that a commercial user of foreign currencies might pay in the interbank market for a comparable option involving </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">significantly larger amounts of foreign currencies. Foreign currency warrants are subject to significant foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange risk, including risks arising from complex political or economic factors.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Principal Exchange Rate Linked Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Principal exchange rate linked securities (&#8220;PERLs&#8221;) are debt </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations the principal on
which is payable at maturity in an amount that may vary based on the exchange rate </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">between the U.S. dollar and a particular foreign currency at or about that time. The
return on &#8220;standard&#8221; principal </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange rate linked securities is enhanced if the foreign currency to which the security is linked appreciates against </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the U.S. dollar, and is adversely affected by increases in the foreign exchange value of the U.S. dollar; &#8220;reverse&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal exchange rate linked securities are like &#8220;standard&#8221; securities, except that their return is enhanced by increases </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the value of the U.S. dollar and adversely impacted by increases in the value of foreign currency. Interest payments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on the securities are generally made in U.S. dollars at rates that reflect the degree of foreign currency risk assumed or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">given up by the purchaser of the notes (i.e., at relatively higher interest rates if the purchaser has assumed some of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign exchange risk, or relatively lower interest rates if the issuer has assumed some of the foreign exchange risk, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">based on the expectations of the current market). PERLs may in limited cases be subject to acceleration of maturity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(generally, not without the consent of the holders of the securities), which may have an adverse impact on the value of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the principal payment to be made at maturity.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Performance Indexed
Paper.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Performance indexed paper is U.S. dollar-denominated commercial paper the yield </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of which is linked to
certain foreign exchange rate movements. The yield to the investor on performance indexed paper </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">is established at maturity as a function of spot exchange rates between
the U.S. dollar and a designated currency as of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">or about that time (generally, the index maturity two days prior to maturity). The yield to the investor will be within a
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">range stipulated at the time of purchase of the obligation, generally with a guaranteed minimum rate of return that is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">below, and a potential maximum rate of return that is above, market yields on U.S. dollar-denominated commercial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">paper, with both the minimum and maximum rates of return on the investment corresponding to the minimum and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">maximum values of the spot exchange rate two business days prior to maturity.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">U.S. Government Securities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">U.S. government securities are obligations of, and, in certain cases, guaranteed by, the U.S. government, its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agencies or instrumentalities. The U.S. government does not guarantee the net asset value of the Fund&#8217;s shares. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. government securities are subject to market and interest rate risk, and may be subject to varying degrees of credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risk. Some U.S. government securities, such as Treasury bills, notes and bonds, and securities guaranteed by GNMA, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are supported by the full faith and credit of the United States; others, such as those of the Federal Home Loan Banks, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are supported by the right of the issuer to borrow from the U.S. Treasury; others, such as those of the FNMA, are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">supported by the discretionary authority of the U.S. government to purchase the agency&#8217;s obligations; and still others, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such as securities issued by members of the Farm Credit System, are supported only by the credit of the agency, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrumentality or corporation. U.S. government securities may include zero coupon securities, which do not distribute </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest on a current basis and tend to be subject to greater risk than interest-paying securities of similar maturities.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Securities issued by U.S. government agencies or government-sponsored enterprises may not
be guaranteed by </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the U.S. Treasury. GNMA, a wholly owned U.S. government corporation, is authorized to guarantee, with the full faith </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and credit of the U.S. government, the timely payment of principal and interest on securities issued by institutions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or guaranteed </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the VA. Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. government) include </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the FNMA and FHLMC. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and interest by FNMA but are not backed by the full faith and credit of the U.S. government. FHLMC guarantees the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">timely payment of interest and ultimate collection of principal, but its PCs are not backed by the full faith and credit of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the U.S. government. &nbsp;Instead, they are supported only by the discretionary authority of the U.S. government to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase the agency&#8217;s obligations. Under the direction of the FHFA, FNMA and FHLMC have entered into a joint </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">initiative to develop a common securitization platform for the issuance of UMBS (the &#8220;Single Security Initiative&#8221;) that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">aligns the characteristics of FNMA and FHLMC certificates. The Single Security Initiative was implemented in June </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">2019, and the effects it may have on the market for mortgage-backed securities are uncertain.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">U.S. government securities include securities that have no coupons, or have been stripped of their unmatured </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest coupons, individual interest coupons from such securities that trade separately, and evidences of receipt of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such securities. Such securities may pay no cash income, and are purchased at a deep discount from their value at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">maturity. Because interest on zero coupon securities is not distributed on a current basis but is, in effect, compounded, </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">18</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_19"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">zero coupon securities tend to be subject to greater risk than interest-paying securities of similar maturities. Custodial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">receipts issued in connection with so-called trademark zero coupon securities, such as CATs and TIGRs, are not issued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the U.S. Treasury, and are therefore not U.S. government securities, although the underlying bond represented by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such receipt is a debt obligation of the U.S. Treasury. Other zero coupon Treasury securities (e.g., STRIPs and CUBEs) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are direct obligations of the U.S. government.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Municipal Securities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in securities issued by states, territories, possessions, municipalities and other political </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subdivisions, agencies, authorities and instrumentalities of states, territories, possessions and multi-state agencies or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">authorities.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Municipal Securities</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">. Municipal securities include debt obligations
issued by governmental entities to obtain </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">funds for various public purposes, including the construction of a wide range of public facilities, the refunding of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">outstanding obligations, the payment of general operating expenses, and the extension of loans to public institutions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and facilities. Municipal securities can be classified into two principal categories, including &#8220;general obligation&#8221; bonds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and other securities and &#8220;revenue&#8221; bonds and other securities. General obligation bonds are secured by the issuer&#8217;s full </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">faith, credit and taxing power for the payment of principal and interest. Revenue securities are payable only from the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax or other specific revenue source, such as the user of the facility being financed. Municipal securities also may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">include &#8220;moral obligation&#8221; securities, which normally are issued by special purpose public authorities. If the issuer of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">moral obligation securities is unable to meet its debt service obligations from current revenues, it may draw on a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reserve fund, the restoration of which is a moral commitment but not a legal obligation of the governmental entity that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">created the special purpose public authority. Municipal securities may be structured as fixed-, variable- or floating-rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations or as zero-coupon, PIKs and step-coupon securities and may be privately placed or publicly offered.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in instruments, or participations in instruments, issued in connection
with lease obligations </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">or installment purchase contract obligations of municipalities (&#8220;municipal lease obligations&#8221;). Although municipal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">lease obligations do not constitute general obligations of the issuing municipality, a lease obligation may be backed by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the municipality&#8217;s covenant to budget for, appropriate funds for and make the payments due under the lease obligation. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">However, certain municipal lease obligations contain &#8220;non-appropriation&#8221; clauses, which provide that the municipality </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">has no obligation to make lease or installment purchase payments in future years unless money is appropriated for such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purpose in the relevant years. In deciding whether to purchase a lease obligation for the Fund, PIMCO will generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assess the financial condition of the borrower, the merits of the project, the level of public support for the project, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the legislative history of lease financing in the state. Municipal lease obligations may be less readily marketable than </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other municipal securities.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Projects financed with certificates of participation generally are not subject to state constitutional debt limitations </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or other statutory requirements that may apply to other municipal securities. Payments by the public entity on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligation underlying the certificates are derived from available revenue sources. That revenue might be diverted to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">funding of other municipal service projects. Payments of interest and/or principal with respect to the certificates are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not guaranteed and do not constitute an obligation of a state or any of its political subdivisions.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Municipal leases may also be subject to &#8220;abatement risk.&#8221; The leases underlying certain municipal lease </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations may state that lease payments are subject to partial or full abatement. That abatement might occur, for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">example, if material damage to or destruction of the leased property interferes with the lessee&#8217;s use of the property. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">However, in some cases that risk might be reduced by insurance covering the leased property, or by the use of credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">enhancements such as letters of credit to back lease payments, or perhaps by the lessee&#8217;s maintenance of reserve </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">monies for lease payments. While the obligation might be secured by the lease, it might be difficult to dispose of that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">property in case of a default.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Municipal notes may be issued by governmental entities and other tax-exempt issuers in order to finance </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">short-term cash needs or, occasionally, to finance construction. Most municipal notes are general obligations of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuing entity payable from taxes or designated revenues expected to be received within the relevant fiscal period. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Municipal notes generally have maturities of one year or less. Municipal notes can be subdivided into two
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">sub-categories: (i) municipal commercial paper and (ii) municipal demand obligations. Municipal commercial paper </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">typically consists of very short-term unsecured negotiable promissory notes that are sold, for example, to meet </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">19</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_20"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">seasonal working capital or interim construction financing needs of a governmental entity or agency. While these </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations are intended to be paid from general revenues or refinanced with long-term debt, they frequently are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">backed by letters of credit, lending agreements, note repurchase agreements or other credit facility agreements offered </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by banks or institutions.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Municipal demand obligations can be subdivided into two general types: variable rate demand notes and master </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">demand obligations. Variable rate demand notes are tax-exempt municipal obligations or participation interests that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provide for a periodic adjustment in the interest rate paid on the notes. They permit the holder to demand payment of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the notes, or to demand purchase of the notes at a purchase price equal to the unpaid principal balance, plus accrued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest either directly by the issuer or by drawing on a bank letter of credit or guaranty issued with respect to such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">note. The issuer of the municipal obligation may have a corresponding right to prepay at its discretion the outstanding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal of the note plus accrued interest upon notice comparable to that required for the holder to demand payment. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The variable rate demand notes in which the Fund may invest are payable, or are subject to purchase, on demand </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">usually on notice of seven calendar days or less. The terms of the notes generally provide that interest rates are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adjustable at intervals ranging from daily to six months.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Master demand obligations are tax-exempt municipal obligations that provide for a periodic adjustment in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rate paid and permit daily changes in the amount borrowed. The interest on such obligations is, in the opinion </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of counsel for the borrower, excluded from gross income for federal income tax purposes (but not necessarily for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">alternative minimum tax purposes). Although there is no secondary market for master demand obligations, such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations are considered by the Fund to be liquid because they are payable upon demand.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investing in municipal securities is subject to certain risks. There are variations in the quality of municipal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, both within a particular classification and between classifications, and the rates of return on municipal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities can depend on a variety of factors, including general money market conditions, the financial condition of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer, general conditions of the municipal bond market, the size of a particular offering, the maturity of the obligation, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and the rating of the issue. The ratings of NRSROs represent their opinions as to the quality of municipal securities. It </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">should be emphasized, however, that these ratings are general and are not absolute standards of quality, and municipal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities with the same maturity, interest rate, and rating may have different rates of return while municipal securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the same maturity and interest rate with different ratings may have the same rate of return.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The payment of principal and interest on most municipal securities purchased by the Fund will depend upon the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability of the issuers to meet their obligations. An issuer&#8217;s obligations under its municipal securities are subject to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provisions of bankruptcy, insolvency, and other laws affecting the rights and remedies of creditors, such as the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">United States Bankruptcy Code. The power or ability of an issuer to meet its obligations for the payment of interest on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and principal of its municipal securities may be materially adversely affected by litigation or other conditions.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">There are particular considerations and risks relevant to investing in a portfolio of a
single state&#8217;s municipal </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, such as the greater risk of concentration of portfolio holdings. Each state&#8217;s municipal securities may include, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in addition to securities issued by the relevant state and its political subdivisions, agencies, authorities and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrumentalities, securities issued by the governments of Guam, Puerto Rico or the U.S. Virgin Islands. These </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities may be subject to different risks than municipal securities issued by the relevant state and its political </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subdivisions, agencies, authorities and instrumentalities.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Municipal Bonds.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> Municipal bonds share the
attributes of debt/ fixed-income securities in general, but are </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally issued by states, municipalities and other political subdivisions, agencies, authorities and
instrumentalities of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">states and multi-state agencies or authorities. The municipal bonds that the Fund may purchase include general </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligation bonds and limited obligation bonds (or revenue bonds), including industrial development bonds issued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pursuant to former federal tax law. General obligation bonds are obligations involving the credit of an issuer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">possessing taxing power and are payable from such issuer&#8217;s general revenues and not from any particular source. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Limited obligation bonds are payable only from the revenues derived from a particular facility or class of facilities or, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in some cases, from the proceeds of a special excise or other specific revenue source or annual revenues. Tax-exempt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">private activity bonds and industrial development bonds generally are also revenue bonds and thus are not payable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from the issuer&#8217;s general revenues. The credit and quality of private activity bonds and industrial development bonds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are usually related to the credit of the corporate user of the facilities. Payment of interest on and repayment of principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of such bonds is the responsibility of the user and any guarantor. The Fund does not expect to be eligible to pass </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">through to shareholders the tax-exempt character of interest earned on municipal bonds. The Fund may be more </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">20</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_21"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">industrial development bonds.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund that may invest in municipal bonds may invest in pre-refunded municipal bonds. Pre-refunded </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipal bonds are tax-exempt bonds that have been refunded to a call date prior to the final maturity of principal, or, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the case of pre-refunded municipal bonds commonly referred to as &#8220;escrowed-to-maturity bonds,&#8221; to the final </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">maturity of principal, and remain outstanding in the municipal market. The payment of principal and interest of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pre-refunded municipal bonds held by the Fund is funded from securities in a designated escrow account that holds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. Treasury securities or other obligations of the U.S. Government (including its agencies and instrumentalities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;Agency Securities&#8221;)).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As the payment of principal and interest is generated from securities held in an escrow account established by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipality and an independent escrow agent, the pledge of the municipality has been fulfilled and the original pledge </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of revenue by the municipality is no longer in place. Pre-refunded municipal bonds may bear an AAA/Aaa rating (for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">example, if re-rated by a rating service or, if not re-rated, determined by PIMCO to be of comparable quality) because </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">they are backed by U.S. Treasury securities or Agency Securities. For the avoidance of any doubt, PIMCO&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">determination of issuer credit rating will be used for compliance with the Fund&#8217;s investment parameters when an issue </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">either loses its rating or is not re-rated upon pre-refunding. The escrow account securities pledged to pay the principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and interest of the pre-refunded municipal bond do not guarantee the price movement of the bond before maturity. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Issuers of municipal bonds refund in advance of maturity the outstanding higher cost debt and issue new, lower cost </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">debt, placing the proceeds of the lower cost issuance into an escrow account to pre-refund the older, higher cost debt. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investments in pre-refunded municipal bonds held by the Fund may subject the Fund to interest rate risk, market risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and credit risk. In addition, while a secondary market exists for pre-refunded municipal bonds, if the Fund sells </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pre-refunded municipal bonds prior to maturity, the price received may be more or less than the original cost, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">depending on market conditions at the time of sale. To the extent permitted by the SEC and the IRS, the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment in pre-refunded municipal bonds backed by U.S. Treasury and Agency securities in the manner described </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">above, will, for purposes of diversification tests applicable to the Fund, be considered an investment in the respective </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. Treasury and Agency securities.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Under the Code, certain limited obligation bonds are considered &#8220;private activity bonds&#8221; and interest paid on such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bonds is treated as an item of tax preference for purposes of calculating federal alternative minimum tax liability.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Certain Risks of Investing in Municipal
Bonds.&nbsp;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Economic downturns and budgetary constraints have made </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipal bonds more
susceptible to downgrade, default and bankruptcy. In addition, difficulties in the municipal bond </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets could result in increased illiquidity, volatility and credit
risk, and a decrease in the number of municipal bond </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment opportunities. The value of municipal bonds may also be affected by uncertainties involving the taxation
of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipal bonds or the rights of municipal bond holders in the event of a bankruptcy. Proposals to restrict or eliminate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the federal income tax exemption for interest on municipal bonds are introduced before Congress from time to time. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">These legal uncertainties could affect the municipal bond market generally, certain specific segments of the market, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the relative credit quality of particular securities.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase and sell portfolio investments to take advantage of changes or anticipated changes in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">yield relationships, markets or economic conditions. The Fund may also sell municipal bonds due to changes in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO&#8217;s evaluation of the issuer. The secondary market for municipal bonds typically has been less liquid than that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for taxable debt/ fixed-income securities, and this may affect the Fund&#8217;s ability to sell particular municipal bonds at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">then-current market prices, especially in periods when other investors are attempting to sell the same securities.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Additionally, municipal bonds rated below investment grade (i.e., high yield municipal
bonds) may not be as </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">liquid as higher-rated municipal bonds. Reduced liquidity in the secondary market may have an adverse impact on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market price of a municipal bond and on the Fund&#8217;s ability to sell a municipal bond in response to changes or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">anticipated changes in economic conditions or to meet the Fund&#8217;s cash needs. Reduced liquidity may also make it </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">more difficult to obtain market quotations based on actual trades for purposes of valuing the Fund&#8217;s portfolio. For </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">more information on high yield securities please see &#8220;High Yield Securities (&#8220;Junk Bonds&#8221;) and Securities of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Distressed Companies&#8221; above.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Prices and yields on municipal bonds are dependent on a variety of factors, including general money-market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conditions, the financial condition of the issuer, general conditions of the municipal bond market, the size of a </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">21</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_22"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">particular offering, the maturity of the obligation and the rating of the issue. A number of these factors, including the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ratings of particular issues, are subject to change from time to time. Information about the financial condition of an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer of municipal bonds may not be as extensive as that which is made available by corporations whose securities are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">publicly traded.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The perceived increased likelihood of default among issuers of municipal bonds has resulted in constrained </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">illiquidity, increased price volatility and credit downgrades of issuers of municipal bonds. Local and national market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">forces&#8212;such as declines in real estate prices and general business activity&#8212;may result in decreasing tax bases, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fluctuations in interest rates, and increasing construction costs, all of which could reduce the ability of certain issuers </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of municipal bonds to repay their obligations. Certain issuers of municipal bonds have also been unable to obtain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">additional financing through, or must pay higher interest rates on, new issues, which may reduce revenues available for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuers of municipal bonds to pay existing obligations. In addition, events have demonstrated that the lack of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disclosure rules in this area can make it difficult for investors to obtain reliable information on the obligations </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying municipal bonds. Adverse developments in the municipal bond market may negatively affect the value of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">all or a substantial portion of the Fund&#8217;s holdings in municipal bonds.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Obligations of issuers of municipal bonds are subject to the provisions of bankruptcy, insolvency and other laws </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affecting the rights and remedies of creditors. Congress or state legislatures may seek to extend the time for payment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of principal or interest, or both, or to impose other constraints upon enforcement of such obligations. There is also the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">possibility that as a result of litigation or other conditions, the power or ability of issuers to meet their obligations for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the payment of interest and principal on their municipal bonds may be materially affected or their obligations may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">found to be invalid or unenforceable. Such litigation or conditions may from time to time have the effect of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">introducing uncertainties in the market for municipal bonds or certain segments thereof, or of materially affecting the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit risk with respect to particular bonds. Adverse economic, business, legal or political developments might affect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">all or a substantial portion of the Fund&#8217;s municipal bonds in the same manner.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the federal income tax exemption for interest on certain types of municipal bonds. Additionally, certain other proposals </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have been introduced that would have the effect of taxing a portion of exempt interest and/or reducing the tax benefits </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of receiving exempt interest. It can be expected that similar proposals may be introduced in the future. As a result of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any such future legislation, the availability of such municipal bonds for investment by the Fund and the value of such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipal bonds held by the Fund may be affected. In addition, it is possible that events occurring after the date of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipal bond&#8217;s issuance, or after the Fund&#8217;s acquisition of such obligation, may result in a determination that the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest paid on that obligation is taxable, in certain cases retroactively.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some longer-term municipal bonds give the investor the right to &#8220;put&#8221; or sell the security at par (face value) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">within a specified number of days following the investor&#8217;s request&#8212;usually one to seven days. This demand feature </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">enhances a security&#8217;s liquidity by shortening its effective maturity and enables it to trade at a price equal to or very </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">close to par. If a demand feature terminates prior to being exercised, the Fund would hold the longer-term security, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which could experience substantially more volatility.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in taxable municipal bonds, such as Build America Bonds. Build America Bonds are tax </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit bonds created by the American Recovery and Reinvestment Act of 2009, which authorized state and local </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">governments to issue Build America Bonds as taxable bonds in 2009 and 2010, without volume limitations, to finance </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any capital expenditures for which such issuers could otherwise issue traditional tax-exempt bonds. State and local </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">governments may receive a direct federal subsidy payment for a portion of their borrowing costs on Build America </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Bonds equal to 35% of the total coupon interest paid to investors (or 45% in the case of Recovery Zone Economic </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Development Bonds). The state or local government issuer can elect to either take the federal subsidy or pass the 35% </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax credit along to bondholders. The Fund&#8217;s investments in Build America Bonds or similar taxable municipal bonds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will result in taxable income and the Fund may elect to pass through to holders of the Fund&#8217;s Common Shares </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;Common Shareholders&#8221;) the corresponding tax credits. The tax credits can generally be used to offset federal income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxes and the alternative minimum tax, but such credits are generally not refundable. Build America Bonds or similar </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxable municipal bonds involve similar risks as tax-exempt municipal bonds, including credit and market risk. They </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are intended to assist state and local governments in financing capital projects at lower borrowing costs and are likely </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to attract a broader group of investors than tax-exempt municipal bonds. Although Build America Bonds were only </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">authorized for issuance during 2009 and 2010, the program may have resulted in reduced issuance of tax- exempt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipal bonds during the same period.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">22</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_23"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Build America Bond program expired on December 31, 2010, at which point no further issuance of new </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Build America Bonds was permitted. As of the date of this Statement of Additional Information, there is no indication </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that Congress will renew the program to permit issuance of new Build America Bonds.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Tender Option Bonds.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> The Fund may invest in trust certificates issued
in tender option bond &#8220;TOB&#8221; programs. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">In a &#8220;TOB&#8221; transaction, a tender option bond trust (&#8220;TOB Trust&#8221;) issues floating rate
certificates (&#8220;TOB Floater&#8221;) and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">residual interest certificates (&#8220;TOB Residual&#8221;) and utilizes the proceeds of such issuance to purchase a
fixed-rate </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipal bond (&#8220;Fixed Rate Bond&#8221;) that either is owned or identified by the Fund. The TOB Floater is generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issued to third party investors (typically a money market fund) and the TOB Residual is generally issued to the Fund, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which sold or identified the Fixed Rate Bond. The TOB Trust divides the income stream provided by the Fixed Rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Bond to create two securities, the TOB Floater, which is a short-term security, and the TOB Residual, which is a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">longer-term security. The interest rates payable on the TOB Residual issued to the Fund bear an inverse relationship to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the interest rate on the TOB Floater. The interest rate on the TOB Floater is reset by a remarketing process typically </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">every 7 to 35 days. After income is paid on the TOB Floater at current rates, the residual income from the Fixed Rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Bond goes to the TOB Residual. Therefore, rising short-term rates result in lower income for the TOB Residual, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">vice versa. In the case of a TOB Trust that utilizes the cash received (less transaction expenses) from the issuance of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the TOB Floater and TOB Residual to purchase the Fixed Rate Bond from the Fund, the Fund may then invest the cash </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">received in additional securities, generating leverage for the Fund. Other PIMCO-managed accounts may also
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">contribute municipal bonds to a TOB Trust into which the Fund has contributed Fixed Rate Bonds. If multiple </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO-managed accounts participate in the same TOB Trust, the economic rights and obligations under the TOB </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Residual will be shared among the funds ratably in proportion to their participation in the TOB Trust.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The TOB Residual may be more volatile and less liquid than other municipal bonds of
comparable maturity. In </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">most circumstances the TOB Residual holder bears substantially all of the underlying Fixed Rate Bond&#8217;s downside </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment risk and also benefits from any appreciation in the value of the underlying Fixed Rate Bond. Investments in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a TOB Residual typically will involve greater risk than investments in Fixed Rate
Bonds.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A TOB Residual held by the Fund provides the Fund with the right to: (1) cause the holders of the TOB Floater to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tender their notes at par, and (2) cause the sale of the Fixed-Rate Bond held by the TOB Trust, thereby collapsing the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">TOB Trust. TOB Trusts are generally supported by a liquidity facility provided by a third party bank or other financial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">institution (the &#8220;Liquidity Provider&#8221;) that provides for the purchase of TOB Floaters that cannot be remarketed. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holders of the TOB Floaters have the right to tender their certificates in exchange for payment of par plus accrued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest on a periodic basis (typically weekly) or on the occurrence of certain mandatory tender events. The tendered </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">TOB Floaters are remarketed by a remarketing agent, which is typically an affiliated entity of the Liquidity Provider. If </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the TOB Floaters cannot be remarketed, the TOB Floaters are purchased by the TOB Trust either from the proceeds of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a loan from the Liquidity Provider or from a liquidation of the Fixed Rate Bond.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The TOB Trust may also be collapsed without the consent of the Fund, as the TOB Residual holder, upon the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">occurrence of certain &#8220;tender option termination events&#8221; (or &#8220;TOTEs&#8221;) as defined in the TOB Trust agreements. Such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">termination events typically include the bankruptcy or default of the municipal bond, a substantial downgrade in credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">quality of the municipal bond, or a judgment or ruling that interest on the Fixed Rate Bond is subject to federal income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxation. Upon the occurrence of a termination event, the TOB Trust would generally be liquidated in full with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">proceeds typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">then to the holders of the TOB Floater up to par plus accrued interest owed on the TOB Floater and a portion of gain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">share, if any, with the balance paid out to the TOB Residual holder. In the case of a mandatory termination event, after </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the payment of fees, the TOB Floater holders would be paid before the TOB Residual holders (i.e., the Fund). In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contrast, in the case of a TOTE, after payment of fees, the TOB Floater holders and the TOB Residual holders would </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be paid pro rata in proportion to the respective face values of their certificates.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If there are insufficient proceeds from the liquidation of the TOB Trust, the party that would bear the losses would </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">depend upon whether the Fund holds a non-recourse TOB Residual or a recourse TOB Residual. If the Fund holds a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-recourse TOB Residual, the Liquidity Provider or holders of the TOB Floaters would bear the losses on those </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities and there would be no recourse to the Fund&#8217;s assets. If the Fund holds a recourse TOB Residual, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(and, indirectly, holders of the Fund&#8217;s Common Shares) would typically bear the losses. In particular, if the Fund holds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a recourse TOB Residual, it will typically have entered into an agreement pursuant to which the Fund would be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">required to pay to the Liquidity Provider the difference between the purchase price of any TOB Floaters put to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Liquidity Provider by holders of the TOB Floaters and the proceeds realized from the remarketing of those TOB </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">23</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_24"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Floaters or the sale of the assets in the TOB Issuer. The Fund may invest in both non-recourse and recourse TOB </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Residuals to leverage its portfolio.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In December 2013, regulators finalized rules implementing Section 619 (the &#8220;Volcker Rule&#8221;) and Section 941 (the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Risk Retention Rules&#8221;) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the &#8220;Dodd-Frank Act&#8221;). </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Both the Volcker Rule and the Risk Retention Rules apply to tender option bond programs and place restrictions on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">way certain sponsors may participate in tender option bond programs. Specifically, the Volcker Rule generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prohibits banking entities from engaging in proprietary trading or from acquiring or retaining an ownership interest in, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or sponsoring, a hedge fund or private equity fund (&#8220;covered fund&#8221;), subject to certain exemptions and limitations. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Tender option bond programs generally are considered to be covered funds under the Volcker Rule, and, thus, may not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be sponsored by a banking entity absent an applicable exemption. The Volcker Rule does not provide for any
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">exemption that would allow banking entities to sponsor tender option bonds in the same manner as they did prior to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Volcker Rule's compliance date, which was July 21, 2017.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Risk Retention Rules took effect in December 2016 and require the sponsor to a TOB Trust to retain at least </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">five percent of the credit risk of the underlying assets supporting the TOB Trust's Municipal Bonds. The Risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Retention Rules may adversely affect the Fund's ability to engage in TOB Trust transactions or increase the costs of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such transactions in certain circumstances.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund has restructured its TOB Trusts in conformity with regulatory guidelines. Under the new TOB Trust </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">structure, the Liquidity Provider or remarketing agent will no longer purchase the tendered TOB Floaters, even in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">event of failed remarketing. This may increase the likelihood that a TOB Trust will need to be collapsed and liquidated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in order to purchase the tendered TOB Floaters. The TOB Trust may draw upon a loan from the Liquidity Provider to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase the tendered TOB Floaters. Any loans made by the Liquidity Provider will be secured by the purchased TOB </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Floaters held by the TOB Trust and will be subject to an increased interest rate based on the number of days the loan is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">outstanding.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Puerto Rico Municipal
Securities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Municipal obligations issued by the Commonwealth of Puerto Rico (&#8220;Puerto </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Rico&#8221; or the
&#8220;Commonwealth&#8221;) or its political subdivisions, agencies, instrumentalities, or public corporations may be </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">affected by economic, market, political, and social
conditions in Puerto Rico. Puerto Rico currently is experiencing </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">significant fiscal and economic challenges, including substantial debt service obligations, high levels
of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">unemployment, underfunded public retirement systems, and persistent government budget deficits. These challenges </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may negatively affect the value of the Fund&#8217;s investments in Puerto Rico municipal securities. Major ratings agencies </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have downgraded the general obligation debt of Puerto Rico to below investment grade and continue to maintain a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">negative outlook for this debt, which increases the likelihood that the rating will be lowered further. Further </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">downgrades or defaults may place additional strain on the Puerto Rico economy and may negatively affect the value, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">liquidity, and volatility of the Fund&#8217;s investments in Puerto Rico municipal securities. Legislation, including legislation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that would allow Puerto Rico to restructure its municipal debt obligations, thus increasing the risk that Puerto Rico </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may never pay off municipal indebtedness, or may pay only a small fraction of the amount owed, could also impact </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the value of the Fund&#8217;s investments in Puerto Rico municipal securities.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">These challenges and uncertainties have been exacerbated by Hurricane Maria and the resulting natural disaster in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Puerto Rico. In September 2017, Hurricane Maria struck Puerto Rico, causing major damage across the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Commonwealth, including damage to its water, power, and telecommunications infrastructure. The length of time </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">needed to rebuild Puerto Rico&#8217;s infrastructure is unclear, but could amount to years, during which the Commonwealth </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is likely to be in an uncertain economic state. The full extent of the natural disaster&#8217;s impact on Puerto Rico&#8217;s economy </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and foreign investment in Puerto Rico is difficult to estimate.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In late December 2019 and January 2020, a series of earthquakes, including a magnitude 6.4
earthquake-the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">strongest to hit the island in more than a century-caused an estimated $200 million in damage. The aftershocks from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">these earthquakes may continue for years, and it is not currently possible to predict the extent of the damage that could </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">arise from any aftershocks. The length of time needed to rebuild Puerto Rico&#8217;s infrastructure is unclear, but could </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amount to years, during which the Commonwealth is likely to be in an uncertain economic state. The full extent of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">natural disaster&#8217;s impact on Puerto Rico&#8217;s economy and foreign investment in Puerto Rico is difficult to estimate, but </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is expected to have substantially adverse effects on Puerto Rico&#8217;s economy. In addition to diverting funds to relief and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recovery efforts, Puerto Rico is expected to lose substantial revenue as a result of decreased tourism and general </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">business operations. There can be no assurances that Puerto Rico will receive the necessary aid to rebuild from the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">24</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_25"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">damage caused by the hurricanes or earthquakes or that future catastrophic weather events or natural disasters will not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cause similar damage.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, in early 2020, the Commonwealth was significantly impacted by a pandemic, which had a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">substantially adverse effect on the health of the population and economic activity. In March 2020, the Oversight Board </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">authorized the Commonwealth to implement a $787 million relief package to fight the pandemic and its economic </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">impacts. Any reduction in the Commonwealth&#8217;s revenues as a result of the pandemic could have a negative ability on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Commonwealth to meet its debt service obligations, including with respect to debt held by the Fund.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The damage caused by Hurricanes Irma and Maria, the earthquakes and aftershocks, and the
pandemic is </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">expected to have substantially adverse effects on the Commonwealth&#8217;s economy. In addition to diverting funds to relief </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and recovery efforts, the Commonwealth is expected to lose revenue as a result of decreased tourism and general </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">business operations. There can be no assurances that the Commonwealth will receive the necessary aid to rebuild from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the damage caused by Hurricanes Irma and Maria, the earthquakes and aftershocks, and the pandemic, and it is not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currently possible to predict the long-term impact that these and other natural disasters or public health emergencies </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will have on the Commonwealth&#8217;s economy. All these developments have a material adverse effect on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Commonwealth&#8217;s finances and negatively impact the payment of principal and interest, the marketability, liquidity and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of securities issued by the Commonwealth that are held by the Fund. Moreover, future weather events, natural </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disasters, or public health emergencies could negatively impact Puerto Rico&#8217;s ability to resolve ongoing debt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">negotiations.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Corporate Debt Securities</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in corporate debt securities of U.S. issuers and foreign issuers,
and/or it may hold its assets </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">in these securities for cash management purposes. The investment return of corporate debt securities reflects interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">earnings and changes in the market value of the security. The market value of a corporate debt obligation may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally be expected to rise and fall inversely with interest rates generally. There also exists the risk that the issuers of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the securities may not be able to meet their obligations on interest or principal payments at the time called for by an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrument. The Fund&#8217;s investments in U.S. dollar or foreign currency-denominated corporate debt securities of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">domestic or foreign issuers are limited to corporate debt securities (corporate bonds, debentures, notes and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">similar corporate debt instruments, including convertible securities) which meet the minimum ratings criteria set forth </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for the Fund or, if unrated, are in PIMCO&#8217;s opinion comparable in quality. Corporate income-producing securities may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">include forms of preferred or preference stock.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The rate of interest on a corporate debt security may be fixed, floating or variable, and may vary inversely with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">respect to a reference rate. The rate of return or return of principal on some debt obligations may be linked or indexed </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the level of exchange rates between the U.S. dollar and a foreign currency or currencies. Corporate debt securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be acquired with warrants attached.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Securities rated Baa3 by Moody&#8217;s, BBB- by S&amp;P and BBB- by Fitch are the lowest which are considered </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;investment grade&#8221; obligations. Moody&#8217;s describes securities rated Baa as judged to be &#8220;medium-grade&#8221; and subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">moderate credit risk and as such may possess certain speculative characteristics. S&amp;P describes securities rated BBB as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exhibiting adequate protection parameters. However, adverse economic conditions or changing circumstances are more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">likely to weaken the obligor&#8217;s capacity to meet its financial commitments on the obligation. Fitch describes securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rated BBB as having good credit quality with current low expectations of default. The capacity for payment of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">this capacity. For a discussion of securities rated below investment grade, see &#8220;High Yield Securities (&#8220;Junk Bonds&#8221;) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and Securities of Distressed Companies&#8221; above.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Commercial Paper</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Commercial paper represents short-term unsecured promissory notes issued in bearer form by corporations such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as banks or bank holding companies and finance companies. The Fund may invest in commercial paper of any credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">quality consistent with the Fund&#8217;s investment objective and policies, including unrated commercial paper. See </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Appendix A to the Prospectus for a description of the ratings assigned by Moody&#8217;s, S&amp;P and Fitch Ratings to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commercial paper. The rate of return on commercial paper may be linked or indexed to the level of exchange rates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">between the U.S. dollar and a foreign currency or currencies.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">25</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_26"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Convertible Securities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in convertible securities, which may offer higher income than the common stocks into </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which they are convertible. A convertible security is a bond, debenture, note, preferred security or other security that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entitles the holder to acquire common stock or other equity securities of the same or a different issuer. A convertible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security generally entitles the holder to receive interest paid or accrued until the convertible security matures or is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">redeemed, converted or exchanged. Before conversion, convertible securities have characteristics similar to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-convertible debt securities or preferred securities, as applicable. Convertible securities rank senior to common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">stock in a corporation&#8217;s capital structure and, therefore, generally entail less risk than the corporation&#8217;s common stock, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">although the extent to which such risk is reduced depends in large measure upon the degree to which the convertible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security sells above its value as a fixed-income security. Convertible securities are subordinate in rank to any senior </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">debt obligations of the issuer, and, therefore, an issuer&#8217;s convertible securities entail more risk than its debt obligations. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Convertible securities generally offer lower interest or dividend yields than non-convertible debt securities of similar </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit quality because of the potential for capital appreciation. In addition, convertible securities are often lower-rated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Because of the conversion feature, the price of the convertible security will normally
fluctuate in some proportion </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to changes in the price of the underlying asset, and as such is subject to risks relating to the activities of the issuer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and/or general market and economic conditions. The income component of a convertible security may tend to cushion </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the security against declines in the price of the underlying asset. However, the income component of convertible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities causes fluctuations based upon changes in interest rates and the credit quality of the issuer.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the convertible security&#8217;s &#8220;conversion value,&#8221; which is the market
value of the underlying common stock that </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">would be obtained upon the conversion of the convertible security, is substantially below the &#8220;investment value,&#8221;
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">which is the value of a convertible security viewed without regard to its conversion feature (i.e., strictly on the basis of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">its yield), the price of the convertible security is typically governed principally by its investment value. If the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conversion value of a convertible security increases to a point that approximates or exceeds its investment value, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of the security will typically be principally influenced by its conversion value. A convertible security generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will sell at a premium over its conversion value to the extent investors place value on the right to acquire the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying common stock while holding an income-producing security.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A convertible security may be subject to redemption at the option of the issuer at a predetermined price. If a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">convertible security held by the Fund is called for redemption, the Fund would be required to permit the issuer to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">redeem the security and convert it to underlying common stock, or would sell the convertible security to a third party, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which may have an adverse effect on the Fund&#8217;s ability to achieve its investment objective. The Fund generally would </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invest in convertible securities for their favorable price characteristics and total return potential.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in so-called &#8220;synthetic convertible securities,&#8221; which are
composed of two or more different </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities whose investment characteristics, taken together, resemble those of convertible securities. A third party or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO may create a &#8220;synthetic&#8221; convertible security by combining separate securities that possess the two principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">characteristics of a traditional convertible security, i.e., an income-producing security (&#8220;income-producing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">component&#8221;) and the right to acquire an equity security (&#8220;convertible component&#8221;). The income-producing component </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is achieved by investing in non-convertible, income-producing securities such as bonds, preferred securities and money </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market instruments, which may be represented by derivative instruments. The convertible component is achieved by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investing in securities or instruments such as warrants or options to buy common stock at a certain exercise price, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">options on a stock index. Unlike a traditional convertible security, which is a single security having a unitary market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value, a synthetic convertible comprises two or more separate securities, each with its own market value. Therefore, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the &#8220;market value&#8221; of a synthetic convertible security is the sum of the values of its income-producing component and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">its convertible component. For this reason, the values of a synthetic convertible security and a traditional convertible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security may respond differently to market fluctuations.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">More flexibility is possible in the assembly of a synthetic convertible security than in the purchase of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">convertible security. Although synthetic convertible securities may be selected where the two components are issued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by a single issuer, thus making the synthetic convertible security similar to the traditional convertible security, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">character of a synthetic convertible security allows the combination of components representing distinct issuers, when </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO believes that such a combination may better achieve the Fund&#8217;s investment objective. A synthetic convertible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security also is a more flexible investment in that its two components may be purchased separately. For example, the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">26</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_27"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Fund may purchase a warrant for inclusion in a synthetic convertible security but temporarily hold short-term </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments while postponing the purchase of a corresponding bond pending development of more favorable market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conditions.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A holder of a synthetic convertible security faces the risk of a decline in the price of
the security or the level of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the index or security involved in the convertible component, causing a decline in the value of the security or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrument, such as a call option or warrant purchased to create the synthetic convertible security. Should the price of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the stock fall below the exercise price and remain there throughout the exercise period, the entire amount paid for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">call option or warrant would be lost. Because a synthetic convertible security includes the income-producing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">component as well, the holder of a synthetic convertible security also faces the risk that interest rates will rise, causing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a decline in the value of the income-producing component.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund also may purchase synthetic convertible securities created by other parties, including convertible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">structured notes. Convertible structured notes are income-producing debentures linked to equity, and are typically </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issued by investment banks. Convertible structured notes have the attributes of a convertible security; however, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment bank that issues the convertible note, rather than the issuer of the underlying common stock into which the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">note is convertible, assumes credit risk associated with the underlying investment, and the Fund in turn assumes credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risk associated with the convertible note.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Contingent Convertible
Instruments.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Contingent convertible securities (&#8220;CoCos&#8221;) are a form of hybrid debt </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">security issued
primarily by non-U.S. issuers, which have loss absorption mechanisms built into their terms. CoCos </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">have no stated maturity, have fully discretionary coupons and are
typically issued in the form of subordinated debt </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments. CoCos generally either convert into common stock of the issuer or have their principal written down upon
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the occurrence of certain triggering events (&#8220;triggers&#8221;) linked to regulatory capital thresholds or regulatory actions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">calling into question the issuing banking institution&#8217;s continued viability as a going concern. In certain scenarios, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investors in CoCos may suffer a loss of capital ahead of equity holders or when equity holders do not. There is no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guarantee that the Fund will receive a return of principal on CoCos. Any indication that an automatic write-down or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conversion event may occur can be expected to have an adverse effect on the market price of CoCos. CoCos are often </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rated below investment grade and are subject to the risks of high yield securities. Because CoCos are issued primarily </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by financial institutions, CoCos may present substantially increased risks at times of financial turmoil, which could </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affect financial institutions more than companies in other sectors and industries. Further, the value of an investment in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CoCos is unpredictable and will be influenced by many factors and risks, including interest rate risk, credit risk, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market risk and liquidity risk. An investment by the Fund in CoCos may result in losses to the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">CoCos&#8217; unique equity conversion or principal write-down features are tailored by the issuing banking institution </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and its regulatory requirements.&nbsp;Some additional risks associated with CoCos include, but are not limited to:</font></div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;">Loss absorption risk. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CoCos may be subject to an automatic write-down (i.e., the automatic write-down of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal amount
or value of the securities, potentially to zero, and the cancellation of the securities) under </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain circumstances, which could result in the Fund losing a portion or
all of its investment in such </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities. In addition, the Fund may not have any rights with respect to repayment of the principal amount of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the securities that has not become due or the payment of interest or dividends on such securities for any
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">period from (and including) the interest or dividend payment date falling immediately prior to the occurrence </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of such automatic write-down. An automatic write-down could also result in a reduced income rate if the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend or interest payment is based on the security&#8217;s par value. In addition, CoCos have fully discretionary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">coupons. This means coupons can potentially be cancelled at the issuer&#8217;s discretion or at the request of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relevant regulatory authority in order to help the issuer absorb losses and may be suspended in the event there </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are insufficient distributable reserves.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;">Subordinated instruments. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CoCos will, in the majority of circumstances, be issued in the form of subordinated </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">debt instruments in
order to provide the appropriate regulatory capital treatment prior to a conversion. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Accordingly, in the event of liquidation, dissolution or winding-up of an issuer
prior to a conversion having </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">occurred, the rights and claims of the holders of the CoCos, such as the Fund, against the issuer in respect of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or arising under the terms of the CoCos shall generally rank junior to the claims of all holders of
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">unsubordinated obligations of the issuer. In addition, if the CoCos are converted into the issuer&#8217;s underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">equity securities following a conversion event (i.e., a &#8220;trigger&#8221;), each holder will be subordinated due to their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conversion from being the holder of a debt instrument to being the holder of an equity instrument.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;">Market value will fluctuate based on unpredictable factors.
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The trading behavior of a given issuer&#8217;s CoCos </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> <div style="clear:both;">
</div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">27</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_28"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-left:36pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.00%;">may be strongly impacted by the trading behavior of other issuers&#8217; CoCos, such that negative information </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from an unrelated CoCo may cause a decline in value of one or more CoCos held by the Fund. Accordingly,
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the trading behavior of CoCos may not follow the trading behavior of other similarly structured securities. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The value of CoCos is unpredictable and could be influenced by many factors including, without limitation:
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(i) the creditworthiness of the issuer and/or fluctuations in such issuer&#8217;s applicable capital ratios; (ii) supply </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and demand for the CoCos; (iii) general market conditions and available liquidity; and (iv) economic,
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">financial and political events that affect the issuer, its particular market or the financial markets in general.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Equity Securities</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Subject to the Fund&#8217;s investment policies, the Fund may hold common stocks and other
equity securities from </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">time to time, including, without limitation, those it has received through the conversion of a convertible security held </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the Fund or in connection with the restructuring of a debt security. Common stocks include common shares and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other common equity interests issued by private or public issuers. The Fund may invest in securities that have not been </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">registered for public sale in the U.S. or relevant non-U.S. jurisdictions, including without limitation securities eligible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for purchase and sale pursuant to Rule 144A under the Securities Act, or relevant provisions of applicable
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-U.S. law, and other securities issued in private placements. The market price of common stocks and other equity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities may go up or down, sometimes rapidly or unpredictably. Equity securities may decline in value due to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">factors affecting equity securities markets generally, particular industries represented in those markets, or the issuer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">itself. The values of equity securities may decline due to general market conditions that are not specifically related to a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particular company, such as real or perceived adverse economic conditions, changes in the general outlook for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">competitive conditions within an industry. Equity securities generally have greater price volatility than fixed-income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities. These risks are generally magnified in the case of equity investments in distressed companies.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Different types of equity securities provide different voting and dividend rights and
priority in the event of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">bankruptcy and/or insolvency of the issuer. In addition to common stock, equity securities may include preferred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, convertible securities and warrants, which are discussed elsewhere in the Prospectus and this Statement of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Additional Information. Equity securities other than common stock are subject to many of the same risks as common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">stock, although possibly to different degrees. The risks of equity securities are generally magnified in the case of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">equity investments in distressed companies.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Preferred Securities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Preferred securities represent an equity interest in a company that generally entitles the holder to receive, in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">preference to the holders of other stocks such as common stocks, dividends and a fixed share of the proceeds resulting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from a liquidation of the company. Some preferred securities also entitle their holders to receive additional liquidation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">proceeds on the same basis as holders of a company&#8217;s common stock, and thus also represent an ownership interest in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that company. Preferred securities are subject to issuer-specific and market risks applicable generally to equity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities. In addition, a company&#8217;s preferred securities generally pay dividends only after the company makes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">required payments to holders of its bonds and other debt. For this reason, the value of preferred securities will usually </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">react more strongly than bonds and other debt to actual or perceived changes in the company&#8217;s financial condition or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prospects. Preferred securities of smaller companies may be more vulnerable to adverse developments than preferred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities of larger companies.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The value of a company&#8217;s preferred securities may fall as a result of factors relating directly to that company&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">products or services. A preferred security&#8217;s value may also fall because of factors affecting not just the company, but </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">companies in the same industry or in a number of different industries, such as increases in production costs.&nbsp;The value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of preferred securities may also be affected by changes in financial markets that are relatively unrelated to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">company or its industry, such as changes in interest rates or currency exchange rates. In addition, a company&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">preferred securities generally pay dividends only after the company makes required payments to holders of its bonds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">debt to actual or perceived changes in the company&#8217;s financial condition or prospects. Preferred securities of smaller </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">companies may be more vulnerable to adverse developments than those of larger companies.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">28</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_29"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Smaller Company
Risk.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The general risks associated with debt instruments or equity securities are particularly </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">pronounced for
securities issued by companies with small market capitalizations. Small capitalization companies </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">involve certain special risks. They are more likely than larger companies
to have limited product lines, markets or </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">financial resources, or to depend on a small, inexperienced management group. Securities of smaller companies may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">trade less frequently and in lesser volume than more widely held securities and their values may fluctuate more sharply </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">than other securities. They may also have limited liquidity. These securities may therefore be more vulnerable to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adverse developments than securities of larger companies, and the Fund may have difficulty purchasing or selling </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities positions in smaller companies at prevailing market prices. Also, there may be less publicly available </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information about smaller companies or less market interest in their securities as compared to larger companies. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Companies with medium-sized market capitalizations may have risks similar to those of smaller companies.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Adjustable Rate and Auction Preferred Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Typically, the dividend rate on an adjustable rate preferred </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">security is determined prospectively each
quarter by applying an adjustment formula established at the time of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuance of the security. Although adjustment formulas vary among issues, they typically involve a
fixed premium or </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">discount relative to rates on specified debt securities issued by the U.S. Treasury. Typically, an adjustment formula will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provide for a fixed premium or discount adjustment relative to the highest base yield of three specified U.S. Treasury </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities: the 90-day Treasury bill, the 10-year Treasury note and the 20-year Treasury bond. The premium or discount </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adjustment to be added to or subtracted from this highest U.S. Treasury base rate yield is fixed at the time of issue and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cannot be changed without the approval of the holders of the security. The dividend rate on another type of preferred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security in which the Fund may invest, commonly known as auction preferred securities, is adjusted at intervals that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be more frequent than quarterly, such as every 7 or 49 days, based on bids submitted by holders and prospective </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchasers of such securities and may be subject to stated maximum and minimum dividend rates. The issues of most </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adjustable rate and auction preferred securities currently outstanding are perpetual, but are redeemable after a specified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">date, or upon notice, at the option of the issuer. Certain issues supported by the credit of a high-rated financial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">institution provide for mandatory redemption prior to expiration of the credit arrangement. No redemption can occur if </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">full cumulative dividends are not paid. Although the dividend rates on adjustable and auction preferred securities are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally adjusted or reset frequently, the market values of these preferred securities may still fluctuate in response to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">changes in interest rates. Market values of adjustable preferred securities also may substantially fluctuate if interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rates increase or decrease once the maximum or minimum dividend rate for a particular security is approached. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Auctions for U.S. auction preferred securities have failed since early 2008, and the dividend rates payable on such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">preferred securities since that time typically have been paid at their maximum applicable rate (typically a function of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reference rate of interest).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Fixed Rate Preferred
Securities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Some fixed rate preferred securities in which the Fund may invest, known as </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">perpetual preferred
securities, offer a fixed return with no maturity date. Because they never mature, perpetual </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">preferred securities act like long-term bonds and can be more volatile than
and more sensitive to changes in interest </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">rates than other types of preferred securities that have a maturity date. The Fund may also invest in sinking fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">preferred securities. These preferred securities also offer a fixed return, but have a maturity date and are retired or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">redeemed on a predetermined schedule. The shorter duration of sinking fund preferred securities makes them perform </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">somewhat like intermediate-term bonds and they typically have lower yields than perpetual preferred securities.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Bank Obligations</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in bank capital securities of both non-U.S. (foreign) and U.S. issuers.
Bank capital securities </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">are issued by banks to help fulfill their regulatory capital requirements. There are three common types of bank capital: </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Lower Tier II, Upper Tier II and Tier I. Bank capital is generally, but not always, of investment grade quality. Upper </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Tier II securities are commonly thought of as hybrids of debt and preferred securities. Upper Tier II securities are often </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">perpetual (with no maturity date), callable and have a cumulative interest deferral feature. This means that under </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain conditions, the issuer bank can withhold payment of interest until a later date. However, such deferred interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments generally earn interest. Tier I securities often take the form of trust preferred securities. Foreign banks may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be categorized in multiple industries for purposes of the Fund&#8217;s industry concentration policy.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Bank obligations in which the Fund may invest include, without limitation, certificates of deposit, bankers&#8217; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">acceptances and fixed time deposits. Certificates of deposit are negotiable certificates that are issued against funds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deposited in a commercial bank for a definite period of time and that earn a specified return. Bankers&#8217; acceptances are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">negotiable drafts or bills of exchange, normally drawn by an importer or exporter to pay for specific merchandise, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which are &#8220;accepted&#8221; by a bank, meaning, in effect, that the bank unconditionally agrees to pay the face value of the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">29</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_30"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">instrument on maturity. Fixed time deposits are bank obligations payable at a stated maturity date and bearing interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">at a fixed rate. Fixed time deposits may be withdrawn on demand by the investor, but may be subject to early </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">There are generally no contractual restrictions on the right to transfer a beneficial interest in a fixed time deposit to a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">third party, although there is&nbsp;generally no market for such deposits.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The activities of U.S. banks and most foreign banks are subject to comprehensive regulations which, in the case </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of U.S. regulations, have undergone substantial changes in the past decade and are currently subject to legislative and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulatory scrutiny. The enactment of new legislation or regulations, as well as changes in interpretation and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">enforcement of current laws, may affect the manner of operations and profitability of U.S. and foreign banks. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Significant developments in the U.S. banking industry have included increased competition from other types of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">financial institutions, increased acquisition activity and geographic expansion. Banks may be particularly susceptible to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain economic factors, such as interest rate changes and adverse developments in the market for real estate. Fiscal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and monetary policy and general economic cycles can affect the availability and cost of funds, loan demand and asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">quality and thereby impact the earnings and financial conditions of banks.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Obligations of foreign banks involve somewhat different investment risks than those affecting obligations of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. banks, including the possibilities that their liquidity could be impaired because of future political and economic </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">developments, that their obligations may be less marketable than comparable obligations of U.S. banks, that a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">jurisdiction might impose withholding or other taxes on interest income payable on those obligations, that foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deposits may be seized or nationalized, that foreign governmental restrictions such as exchange controls may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adopted which might adversely affect the payment of principal and interest on those obligations and that the selection </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of those obligations may be more difficult because there may be less publicly available information concerning foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">banks and the accounting, auditing and financial reporting standards, practices and requirements applicable to foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">banks may differ from those applicable to U.S. banks. Foreign banks are not generally subject to examination by any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. government agency or instrumentality.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Loans and Other Indebtedness; Loan Participations and Assignments</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase indebtedness and participations in commercial loans, as well as interests and/or servicing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or similar rights in such loans. Such instruments may be secured or unsecured and may be newly-originated (and may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be specifically designed for the Fund). Indebtedness is different from traditional debt securities in that debt securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are part of a large issue of securities to the public whereas indebtedness may not be a security and may represent a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">specific commercial loan to a borrower. Loan participations typically represent direct participation, together with other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">parties, in a loan to a corporate borrower, and generally are offered by banks or other financial institutions or lending </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">syndicates. The Fund may participate in such syndications, or can buy part of a loan, becoming a part lender. When </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchasing indebtedness and loan participations, the Fund assumes the credit risk associated with the corporate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrower and may assume the credit risk associated with an interposed bank or other financial intermediary. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">indebtedness and loan participations that the Fund may acquire may not be rated by any NRSROs.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A loan is often administered by an agent bank acting as agent for all holders. The agent bank administers the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">terms of the loan, as specified in the loan agreement. In addition, the agent bank is normally responsible for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">collection of principal and interest payments from the corporate borrower and the apportionment of these payments to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the credit of all institutions which are parties to the loan agreement. Unless, under the terms of the loan or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">indebtedness, the Fund has direct recourse against the corporate borrower, the Fund may have to rely on the agent bank </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or other financial intermediary to apply appropriate credit remedies against a corporate borrower.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A financial institution&#8217;s employment as agent bank might be terminated in the event that it fails to observe a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requisite standard of care or becomes insolvent. A successor agent bank would generally be appointed to replace the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">terminated agent bank, and assets held by the agent bank under the loan agreement should remain available to holders </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of such indebtedness. However, if assets held by the agent bank for the benefit of the Fund were determined to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to the claims of the agent bank&#8217;s general creditors, the Fund might incur certain costs and delays in realizing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payment on a loan or loan participation and could suffer a loss of principal and/or interest. In situations involving other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interposed financial institutions (e.g., an insurance company or governmental agency) similar risks may arise.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">corporate borrower for payment of principal and interest. If the Fund does not receive scheduled interest or principal </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">30</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_31"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">payments on such indebtedness, the Fund&#8217;s share price and yield could be adversely affected. Loans that are fully </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">secured offer the Fund more protection than an unsecured loan in the event of non-payment of scheduled interest or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">corporate borrower&#8217;s obligation, or that the collateral can be liquidated. In the event of the bankruptcy of a borrower, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund could experience delays or limitations in its ability to realize the benefits of any collateral securing a loan.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may acquire loan participations with credit quality comparable to that of issuers of its securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments. Indebtedness of companies whose creditworthiness is poor involves substantially greater risks, and may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be highly speculative. Some companies may never pay off their indebtedness, or may pay only a small fraction of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amount owed. Consequently, when acquiring indebtedness of companies with poor credit, the Fund bears a substantial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risk of losing the entire amount of the instrument acquired. The Fund may make purchases of indebtedness and loan </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participations to achieve income and/or capital appreciation.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund limits the amount of its total assets that it will invest in issuers within the
same industry. For purposes </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of these limits, the Fund generally will treat the corporate borrower as the &#8220;issuer&#8221; of indebtedness held by the Fund. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">In the case of loan participations where a bank or other lending institution serves as a financial intermediary between </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund and the corporate borrower, if the participation does not shift to the Fund the direct debtor-creditor </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relationship with the corporate borrower, SEC interpretations require the Fund to treat both the lending bank or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">lending institution and the corporate borrower as &#8220;issuers.&#8221; Treating a financial intermediary as an issuer of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">indebtedness may restrict the Fund&#8217;s ability to invest in indebtedness related to a single financial intermediary, or a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">group of intermediaries engaged in the same industry, even if the underlying borrowers represent many different </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">companies and industries.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Loans and other types of direct indebtedness (which the Fund may invest in or otherwise
gain exposure to) may </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">not be readily marketable and may be subject to restrictions on resale. In some cases, negotiations involved in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disposing of indebtedness may require weeks to complete. Consequently, some indebtedness may be difficult or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">impossible to dispose of readily at what the Investment Manager believes to be a fair price. In addition, valuation of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">illiquid indebtedness involves a greater degree of judgment in determining the Fund&#8217;s net asset value than if that value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">were based on available market quotations, and could result in significant variations in the Fund&#8217;s daily share price. At </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the same time, some loan interests are traded among certain financial institutions and accordingly may be deemed </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">liquid. As the market for different types of indebtedness develops, the liquidity of these instruments is expected to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">improve. Investments in loan participations are considered to be debt obligations for purposes of the Fund&#8217;s investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">restriction relating to the lending of funds or assets.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In purchasing loans, the Fund will compete with a broad spectrum of lenders. Increased
competition for, or a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">diminishment in the available supply of, qualifying loans could result in lower yields on and/or less advantageous </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">terms of such loans, which could reduce Fund performance.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investments in loans through a purchase of a loan or a direct assignment of a financial
institution&#8217;s interests with </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">respect to a loan may involve additional risks to the Fund. The purchaser of an assignment typically succeeds to all the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rights and obligations under the loan agreement with the same rights and obligations as the assigning lender. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Assignments may, however, be arranged through private negotiations between potential assignees and potential </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limited than, those held by the assigning lender. For example, if a loan is foreclosed, the Fund could become owner, in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">whole or in part, of any collateral, which could include, among other assets, real estate or other real or personal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">property, and would bear the costs and liabilities associated with owning and holding or disposing of the collateral (see </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Real Estate Assets and Related Derivatives&#8221; above). In addition, it is conceivable that under emerging legal theories </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of lender liability, the Fund could be held liable as co-lender. It is unclear whether loans and other forms of direct </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulatory guidance, the Fund relies on the Investment Manager&#8217;s research in an attempt to avoid situations where </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fraud or misrepresentation could adversely affect the Fund.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may make, participate in or acquire debtor-in-possession financings (commonly
known as &#8220;DIP </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">financings&#8221;). DIP financings are arranged when an entity seeks the protections of the bankruptcy court under Chapter </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">11 of the U.S. Bankruptcy Code. These financings allow the entity to continue its business operations while </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reorganizing under Chapter 11. Such financings constitute senior liens on unencumbered security (i.e., security not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to other creditors&#8217; claims). There is a risk that the entity will not emerge from Chapter 11 and be forced to </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">31</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_32"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">liquidate its assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of liquidation, the Fund&#8217;s only recourse </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will be against the property securing the DIP financing.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may acquire residential mortgage loans and unsecured consumer loans through
Subsidiaries. The </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Subsidiaries directly holding a beneficial interest in loans will be formed as domestic common law or statutory trusts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with a federally chartered bank serving as trustee. Each such Subsidiary trust will hold the beneficial interests of loans </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and the federally chartered bank acting as trustee will hold legal title to the loans for the benefit of the Subsidiary trust </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and/or the trust&#8217;s beneficial owners (i.e., the Fund or its Subsidiary). State licensing laws typically exempt federally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">chartered banks from their licensing requirements, and federally chartered banks may also benefit from federal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">preemption of state laws, including any licensing requirements. The use of common law or statutory trusts with a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">federally chartered bank serving as trustee is intended to address any state licensing requirements that may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">applicable to purchasers or holders of loans, including state licensing requirements related to foreclosure. The Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">believes that such Subsidiary trusts will not be treated as associations or publicly traded partnerships taxable as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">corporations for U.S. federal income tax purposes, and that therefore, the Subsidiary trusts will not be subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. federal income tax at the Subsidiary level. Investments in residential mortgage loans or unsecured consumer loans </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">through entities that are not so treated can potentially be limited by the Fund&#8217;s intention to qualify as a RIC under </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Subchapter M of the Code, and limit the Fund&#8217;s ability to qualify as such.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the Fund or its Subsidiary trust is required to be licensed in any
particular jurisdiction in order to originate, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">acquire, hold, dispose or foreclose loans, obtaining the required license may not be viable (because, for example, it is
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">not possible or practical) and the Fund or its Subsidiary trust may be unable to restructure its holdings to address the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">licensing requirement. In that case, the Fund or its Subsidiary trust may be forced to cease activities involving the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affected loans, or may be forced to sell such loans. If a state regulator or court were to determine that the Fund or its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Subsidiary trust acquired, held or foreclosed a loan without a required state license, the Fund or its Subsidiary trust </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">could be subject to penalties or other sanctions, prohibited or restricted in its ability to enforce its rights under the loan, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or subject to litigation risk or other losses or damages.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investments in loans may include unfunded loan commitments, which are contractual
obligations for future </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Fund to supply </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain circumstances, the Fund may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or paid are recorded as a component of interest income or interest expense, respectively, on the Consolidated Statement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of Operations.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some lending platforms (or their affiliates) may attempt to take advantage of policies in
certain states that allow </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">lenders to make loans at advantageous interest rates by incorporating choice of law provisions into loan agreements </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that hold that the agreements are to be governed by the laws of those lender-friendly states. In the event that a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrower or state regulator successfully invalidates such choice-of-law clause, platforms (of their affiliates) may not be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">able to collect some or all of the interest and principal due on such loans, such loans may not be found to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">enforceable or the platforms (or their affiliates) could become subject to penalties and damages. Other platforms may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">engage in arrangements with funding banks where the platform assists the bank in originating loans that are funded by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the bank. In some cases, the loans are sold to the platforms and the platforms as assignees of the bank under applicable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">law and precedent utilize the bank&#8217;s rate and fee exportation authority. At least one federal circuit court has cast doubt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">upon this theory and other litigation challenges the ability of assignees to utilize a bank&#8217;s exportation authority as an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assignee of the bank&#8217;s loans.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Loan Origination</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in and/or originate loans, including, without limitation, to, on behalf
of, authorized by, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">sponsored by, and/or in connection with a project for which authority and responsibility lies with one or more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. states or territories, cities in a U.S. state or territory, or political subdivisions, agencies, authorities or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrumentalities of such states, territories or cities, which may be in the form of whole loans, assignments, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participations, secured and unsecured notes, senior and second lien loans, mezzanine loans, bridge loans or similar </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">32</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_33"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">investments, including to borrowers that are unrated or have credit ratings that are determined by one or more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">NRSROs and/or PIMCO to be below investment grade. This may include loans to public or private firms or
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">individuals, such as in connection with housing development projects. The loans the Fund invests in or originates may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">vary in maturity and/or duration. The Fund is not limited in the amount, size or type of loans it may invest in and/or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">originate, including with respect to a single borrower or with respect to borrowers that are determined to be below </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment grade, other than pursuant to any applicable law. The Fund's investment in or origination of loans may also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be limited by the requirements the Fund intends to observe under Subchapter M of the Code in order to qualify as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">RIC. The loans acquired by the Fund may be &#8220;municipal bonds&#8221; (including of a particular state) for purposes of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s investment policies or may be loans that produce income that is subject to applicable regular income tax, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to the Fund&#8217;s investment limits. The Fund may subsequently offer such investments for sale to third parties; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provided, that there is no assurance that the Fund will complete the sale of such an investment. If the Fund is unable to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sell, assign or successfully close transactions for the loans that it originates, the Fund will be forced to hold its interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in such loans for an indeterminate period of time. This could result in the Fund&#8217;s investments having high exposure to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain borrowers. The Fund will be responsible for the expenses associated with originating a loan (whether or not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consummated). This may include significant legal and due diligence expenses, which will be indirectly borne by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund and Common Shareholders.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Bridge loans are generally made with the expectation that the borrower will be able to obtain permanent financing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the near future. Any delay in obtaining permanent financing subjects the bridge loan investor to increased risk. A </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrower&#8217;s use of bridge loans also involves the risk that the borrower may be unable to locate permanent financing to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">replace the bridge loan, which may impair the borrower&#8217;s perceived creditworthiness.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Loan origination and servicing companies are routinely involved in legal proceedings concerning matters that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">arise in the ordinary course of their business. In addition, a number of participants in the loan origination and servicing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">industry (including control persons of industry participants) have been the subject of regulatory actions by state </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulators, including state attorneys general, and by the federal government. Governmental investigations,
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">examinations or regulatory actions, or private lawsuits, including purported class action lawsuits, may adversely affect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such companies&#8217; financial results. To the extent the Fund engages in origination and/or servicing directly, or has a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">financial interest in, or is otherwise affiliated with, an origination or servicing company, the Fund will be subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">enhanced risks of litigation, regulatory actions and other proceedings. As a result, the Fund may be required to pay </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">legal fees, settlement costs, damages, penalties or other charges, any or all of which could materially adversely affect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund and its holdings.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Risk Retention Investments</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in risk retention tranches of commercial mortgage-backed securities (&#8220;CMBS&#8221;) or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">eligible securitizations, if any (&#8220;risk retention tranches&#8221;), which are eligible residual interests held by the sponsors of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such securitizations pursuant to the final rules implementing the credit risk retention requirements of Section 941 of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Dodd-Frank Act (the &#8220;U.S. Risk Retention Rules&#8221;). In the case of CMBS transactions, for example, the U.S. Risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Retention Rules permit all or a portion of the retained credit risk associated with certain securitizations (i.e., retained </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risk) to be held by an unaffiliated &#8220;third party purchaser,&#8221; such as the Fund, if, among other requirements, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">third-party purchaser holds its retained interest, unhedged, for at least five years following the closing of the CMBS </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction, after which it is entitled to transfer its interest in the securitization to another person that meets the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements for a third-party purchaser. Even after the required holding period has expired, due to the generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">illiquid nature of such investments, no assurance can be given as to what, if any, exit strategies will ultimately be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">available for any given position.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, there is limited guidance on the application of the final U.S. Risk Retention
Rules to specific </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securitization structures. There can be no assurance that the applicable federal agencies charged with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">implementation of the final U.S. Risk Retention Rules (the Federal Deposit Insurance Corporation, the Comptroller of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Currency, the Federal Reserve Board, the SEC, the Department of Housing and Urban Development, and the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Federal Housing Finance Agency) could not take positions in the future that differ from the interpretation of such rules </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taken or embodied in such securitizations, or that the final U.S. Risk Retention Rules will not change.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Furthermore, in situations where the Fund invests in risk retention tranches of securitizations structured by third </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">parties, the Fund may be required to execute one or more letters or other agreements, the exact form and nature of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which will vary (each, a &#8220;Risk Retention Agreement&#8221;) under which it will make certain undertakings designed to </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">33</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_34"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">ensure such securitization complies with the final U.S. Risk Retention Rules. Such Risk Retention Agreements may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">include a variety of representations, warranties, covenants and other indemnities, each of which may run to various </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction parties. If the Fund breaches any undertakings in any Risk Retention Agreement, it will be exposed to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">claims by the other parties thereto, including for any losses incurred as a result of such breach, which could be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">significant and exceed the value of the Fund&#8217;s investments.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Alternative Lending ABS</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in shares, certificates, notes or other securities issued by a special
purpose entity (&#8220;SPE&#8221;) </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">sponsored by an alternative lending platform or its affiliates (the &#8220;Sponsor&#8221;) that represent the right to receive
principal </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and interest payments due on pools of whole loans or fractions of whole loans, which may (but may not) be issued by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Sponsor, held by the SPE (&#8220;Alt Lending ABS&#8221;). Alternative lending, which may include or sometimes be referred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to as peer-to-peer lending, online lending or marketplace lending, is a method of financing in which an alternative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">lending platform (i.e., an online lending marketplace or lender that is not a traditional lender, such as a bank) facilitates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the borrowing and lending of money while generally not relying on deposits for capital to fund loans. It is considered </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">an alternative to more traditional debt financing done through a bank. There are several different models of alternative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">lending but, very generally, a platform typically matches consumers, small or medium-sized businesses or other types </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of borrowers with investors that are interested in gaining investment exposure to the loans made to such borrowers. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Prospective borrowers are usually required to provide or give access to certain financial information to the platform, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such as the intended purpose of the loan, income, employment information, credit score, debt-to-income ratio, credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">history (including defaults and delinquencies) and home ownership status, and, in the case of small business loans, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">business financial statements and personal credit information regarding any guarantor, some of which information is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">made available to prospective lenders. Often, platforms charge fees to borrowers to cover these screening and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">administrative costs. Based on this and other relevant supplemental information, the platform usually assigns its own </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit rating to the borrower and sets the interest rate for the requested borrowing. Platforms then post the borrowing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requests online and investors may choose among the loans, based on the interest rates the loans are expected to yield </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">less any servicing or origination fees charged by the platform or others involved in the lending arrangement, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">background data provided on the borrowers and the credit rating assigned by the platform. In some cases, a platform </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">partners with a bank to originate a loan to a borrower, after which the bank sells the loan to the platform or directly to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the investor; alternatively, some platforms may originate loans themselves. Some investors, including the Fund, may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not review the particular characteristics of the loans in which they invest at the time of investment, but rather negotiate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in advance with platforms the general criteria of the investments, as described above. As a result, the Fund is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dependent on the platforms&#8217; ability to collect, verify and provide information to the Fund about each loan and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrower. Platforms may set minimum eligibility standards for borrowers to participate in alternative lending </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">arrangements and may limit the maximum permitted borrowings. Depending on the purpose and nature of the loan, its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">term may, for example, be as short as six months or shorter, or as long as thirty years or longer.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Senior Loans</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">To the extent the Fund invests in senior loans, the Fund may be subject to greater levels of credit risk, call (or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;prepayment&#8221;) risk, settlement risk and liquidity risk, than funds that do not invest in such securities. These </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments are considered predominantly speculative with respect to an issuer&#8217;s continuing ability to make principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and interest payments, and may be more volatile than other types of securities. An economic downturn or individual </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">corporate developments could adversely affect the market for these instruments and reduce the Fund&#8217;s ability to sell </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">these instruments at an advantageous time or price. An economic downturn would generally lead to a higher
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-payment rate, and a senior loan may lose significant market value before a default occurs. The Fund may also be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to greater levels of liquidity risk than funds that do not invest in senior loans. In addition, the senior loans in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which the Fund invests may not be listed on any exchange and a secondary market for such loans may be
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">comparatively less liquid relative to markets for other more liquid fixed-income securities. Consequently, transactions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in senior loans may involve greater costs than transactions in more actively traded securities. In connection with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain loan transactions, transaction costs that are borne by the Fund may include the expenses of third parties that are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">retained to assist with reviewing and conducting diligence, negotiating, structuring and servicing a loan transaction, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and/or providing other services in connection therewith. Furthermore, the Fund may incur such costs in connection </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with loan transactions that are pursued by the Fund but not ultimately consummated (so-called &#8220;broken deal costs&#8221;). </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Restrictions on transfers in loan agreements, a lack of publicly-available information, irregular trading activity and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">wide bid/ask spreads among other factors, may, in certain circumstances, make senior loans difficult to value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accurately or sell at an advantageous time or price than other types of securities or instruments. These factors may </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">34</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_35"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">result in the Fund being unable to realize full value for the senior loans and/or may result in the Fund not receiving the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">proceeds from a sale of a senior loan for an extended period after such sale, each of which could result in losses to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund. Senior loans may have extended trade settlement periods, which may result in cash not being immediately </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">available to the Fund. As a result, transactions in senior loans that settle on a delayed basis may limit the Fund&#8217;s ability </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to make additional investments or satisfy the Fund&#8217;s repurchase obligations. The Fund may seek to satisfy any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">short-term liquidity needs resulting from an extended trade settlement process by, among other things, selling portfolio </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets, holding additional cash or entering into temporary borrowing arrangements with banks and other potential </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">funding sources. If an issuer of a senior loan prepays or redeems the loan prior to maturity, the Fund may have to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reinvest the proceeds in other senior loans or similar instruments that may pay lower interest rates. Senior loans in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which the Fund invests may or may not be collateralized, although the loans may not be fully collateralized and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">collateral may be unavailable or insufficient to meet the obligations of the borrower. The Fund may have limited rights </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to exercise remedies against such collateral or a borrower, and loan agreements may impose certain procedures that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delay receipt of the proceeds of collateral or require the Fund to act collectively with other creditors to exercise its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rights with respect to a senior loan. Senior loans may not be considered securities under the federal securities laws. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such circumstances, fewer legal protections may be available with respect to the Fund&#8217;s investment in senior loans. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particular, if a senior loan is not considered a security under the federal securities laws, certain legal protections </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">normally available to securities investors under the federal securities laws, such as those against fraud and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">misrepresentation, may not be available. Because of the risks involved in investing in senior loans, an investment in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund that invests in such instruments should be considered speculative.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Senior loans that are covenant-lite obligations contain fewer maintenance covenants than other types of loans, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">no maintenance covenants, and may not include terms that allow the lender to monitor the performance of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrower and declare a default if certain criteria are breached. Covenant-lite obligations may carry more risk than </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">traditional loans as they allow borrowers to engage in activities that would otherwise be difficult or impossible under a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">covenant-heavy loan agreement. In the event of default, covenant-lite obligations may exhibit diminished recovery </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">values as the lender may not have the opportunity to negotiate with the borrower prior to default. The Fund may have a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">greater risk of loss on investments in covenant-lite obligations as compared to investments in traditional loans.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Secondary trades of senior loans may have extended settlement periods. Any settlement of a
secondary market </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase of senior loans in the ordinary course, on a settlement date beyond the period expected by loan market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participants (i.e., T+7 for par/near par loans and T+20 for distressed loans, in other words more than seven or twenty </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">business days beyond the trade date, respectively) is subject to the &#8220;delayed compensation&#8221; rules prescribed by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Loan Syndications and Trading Association (&#8220;LSTA&#8221;) and addressed in the LSTA&#8217;s standard loan documentation for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">par/near par trades and for distressed trades. &#8220;Delayed compensation&#8221; is a pricing adjustment comprised of certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest and fees, which is payable between the parties to a secondary loan trade. The LSTA introduced a
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements-based rules program in order to incentivize shorter settlement times for secondary transactions and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discourage certain delay tactics that create friction in the loan syndications market by, among other things, mandating </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that the buyer of a senior loan satisfy certain &#8220;basic requirements&#8221; as prescribed by the LSTA no later than T+5 in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">order for the buyer to receive the benefit of interest and other fees accruing on the purchased loan from and after T+7 </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for par/near par loans (for distressed trades, T+20) until the settlement date, subject to certain specific exceptions. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">These &#8220;basic requirements&#8221; generally require a buyer to execute the required trade documentation and to be, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">remain, financially able to settle the trade no later than T+7 for par/near par loans (and T+20 for distressed trades). In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">addition, buyers are required to fund the purchase price for a secondary trade upon receiving notice from the agent of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the effectiveness of the trade in the agent&#8217;s loan register. The Fund, as a buyer of a senior loan in the secondary market, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would need to meet these &#8220;basic requirements&#8221; or risk forfeiting all or some portion of the interest and other fees </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accruing on the loan from and after T+7 for par/near par loans (for distressed trades, T+20) until the settlement date. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The &#8220;delayed compensation&#8221; mechanism does not mitigate the other risks of delayed settlement or other risks </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">associated with investments in senior loans.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investors should be aware that the Fund&#8217;s investment in a senior loan may result in
the Fund or PIMCO receiving </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">information about the issuer that may be deemed material, non-public information. Under such circumstances, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s investment opportunities may be limited, as trading in securities of such issuer may be restricted. Additionally, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO may seek to avoid receiving material, non-public information about issuers of senior loans. As a result, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO may forgo certain investment opportunities or be disadvantaged as compared to other investors that do not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">restrict information that they receive from senior loan issuers.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">35</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_36"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Delayed Funding Loans and Revolving Credit Facilities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may also enter into, or acquire participations in, delayed funding loans and revolving credit facilities. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Delayed funding loans and revolving credit facilities are borrowing arrangements in which the lender agrees to make </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loans up to a maximum amount upon demand by the borrower during a specified term. A revolving credit facility </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">differs from a delayed funding loan in that as the borrower repays the loan, an amount equal to the repayment may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrowed again during the term of the revolving credit facility. Delayed funding loans and revolving credit facilities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">usually provide for floating or variable rates of interest. These commitments may have the effect of requiring the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to increase its investment in an issuer at a time when it might not otherwise decide to do so (including a time when the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer&#8217;s financial condition makes it unlikely that such amounts will be repaid).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in delayed funding loans and revolving credit facilities with credit quality comparable to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that of issuers of its securities investments. Delayed funding loans and revolving credit facilities may be subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">restrictions on transfer, and only limited opportunities may exist to resell such instruments. As a result, the Fund may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be unable to sell such investments at an opportune time or may have to resell them at less than fair market value. For a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">further discussion of the risks involved in investing in loan participations and other forms of direct indebtedness see </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Loans and Other Indebtedness; Loan Participations and Assignments.&#8221; Participation interests in revolving credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">facilities will be subject to the limitations discussed in &#8220;Loans and Other Indebtedness; Loan Participations and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Assignments.&#8221; Delayed funding loans and revolving credit facilities are considered to be debt obligations for purposes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund&#8217;s investment restriction relating to the lending of funds or assets by the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Zero-Coupon Bonds, Step-Ups and Payment-In-Kind Securities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest directly or indirectly in zero-coupon securities, &#8220;step-ups&#8221; and PIKs. Zero-coupon securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are debt obligations that do not entitle the holder to any periodic payments of interest either for the entire life of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligation or for an initial period after the issuance of the obligations. Like zero-coupon bonds, &#8220;step-up&#8221; bonds pay no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest initially but eventually begin to pay a coupon rate prior to maturity, which rate may increase at stated intervals </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">during the life of the security. PIKs are debt obligations that pay &#8220;interest&#8221; in the form of other debt obligations instead </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of cash. Each of these instruments is normally issued and traded at a deep discount from face value. The amount of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discount varies depending on such factors as the time remaining until maturity of the securities, prevailing interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rates, the liquidity of the security and the perceived credit quality of the issuer. The market prices of zero-coupon </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bonds, step-ups and PIKs generally are more volatile than the market prices of debt instruments that pay interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currently and in cash and are likely to respond to changes in interest rates to a greater degree than do other types of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities having similar maturities and credit quality.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In order to satisfy a requirement for qualification as a RIC under the Code, an investment company, such as the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund, must distribute each year at least 90% of its net investment income, including the original issue discount accrued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on zero-coupon bonds, step-ups and PIKs. Because the Fund will not, on a current basis, receive cash payments from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the issuer of these securities in respect of any accrued original issue discount, in some years, the Fund may have to sell </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other portfolio holdings in order to obtain cash to satisfy the distribution requirements under the Code even though </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment considerations might otherwise make it undesirable for the Fund to sell securities at such time. Under many </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market conditions, investments in zero-coupon bonds, step-ups and PIKs may be illiquid, making it difficult for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund to dispose of them or determine their current value.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Variable and Floating Rate Debt Securities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Variable and floating rate securities provide for a periodic adjustment in the interest rate paid on the obligations. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The terms of such obligations must provide that interest rates are adjusted periodically based upon an interest rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adjustment index as provided in the respective obligations. The adjustment intervals may be regular, and range from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">daily up to annually, or may be event based, such as based on a change in the prime rate.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in floating rate debt instruments, including senior loans (described in more detail above). </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Variable and floating rate securities are securities that pay interest at rates that adjust whenever a specified interest rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">changes, float at a fixed margin above a generally recognized base lending rate and/or reset or are redetermined (e.g., </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pursuant to an auction) on specified dates (such as the last day of a month or calendar quarter). These instruments may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">include, without limitation, variable-rate preferred securities, bank loans, money market instruments and certain types </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of mortgage-backed and other ABS. Due to their variable- or floating-rate features, these instruments will generally </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">36</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_37"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">pay higher levels of income in a rising interest rate environment and lower levels of income as interest rates decline. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">For the same reason, the market value of a variable- or floating-rate instrument is generally expected to have less </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sensitivity to fluctuations in market interest rates than a fixed-rate instrument, although the value of a floating-rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrument may nonetheless decline as interest rates rise and due to other factors, such as changes in credit quality.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in floating rate debt instruments (&#8220;floaters&#8221;) and engage
in credit spread trades. The interest </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">rate on a floater is a variable rate which is tied to another interest rate, such as a money-market index or U.S. Treasury </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bill rate. The interest rate on a floater resets periodically, typically every six months. While, because of the interest rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reset feature, floaters provide the Fund with a certain degree of protection against rises in interest rates, the Fund will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participate in any declines in interest rates as well. A credit spread trade is an investment position relating to a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">difference in the prices or interest rates of two securities or currencies where the value of the investment position is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">determined by movements in the difference between the prices or interest rates, as the case may be, of the respective </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities or currencies.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may also invest without limitation in inverse floating rate debt instruments (&#8220;inverse floaters&#8221;). The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rate on an inverse floater resets in the opposite direction from the market rate of interest to which the inverse </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">floater is indexed. An inverse floater may exhibit greater price volatility than a fixed rate obligation of similar credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">quality. See &#8220;Mortgage-Related and Other Asset-Backed Securities&#8221; above. The Fund&#8217;s investments in variable- and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">floating-rate securities may require the Fund to accrue and distribute income not yet received. As a result, in order to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generate cash to make the requisite distributions, the Fund may be required to sell securities in its portfolio that it </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would otherwise have continued to hold. See &#8220;Taxation.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in residual interest bonds. The term &#8220;residual interest bonds&#8221; generally includes TOB Trust </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">residual interest certificates and instruments designed to receive residual interest payments or other excess cash flows </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from collateral pools once other interest holders and expenses have been paid.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Inflation-Indexed Bonds</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal value is periodically adjusted according to the rate of inflation. Two structures are common. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. Treasury and some other issuers utilize a structure that accrues inflation into the principal value of the bond. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Many other issuers pay out the Consumer Price Index accruals as part of a semiannual coupon.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Inflation-indexed bonds issued by the U.S. Treasury have maturities of approximately five, ten or thirty years, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">although it is possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest on a semi-annual basis equal to a fixed percentage of the inflation-adjusted principal amount. For example, if </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">1.5% semi-annually), and the rate of inflation over the first six months was 1%, the mid-year par value of the bond </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would be $1,010 and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the second half of the year resulted in the whole year&#8217;s inflation equaling 3%, the end-of-year par value of the bond </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would be $1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is guaranteed in the case of a U.S. Treasury inflation-indexed bond, even during a period of deflation, although the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">inflation-adjusted principal received could be less than the inflation-adjusted principal that had accrued to the bond at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the time of purchase. However, the current market value of the bonds is not guaranteed and will fluctuate. The Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may&nbsp;also invest in other inflation-related bonds that may or may not provide a similar guarantee. If a guarantee of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal amount.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the rate of inflation rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increase at a faster rate than inflation, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">real interest rates might rise, leading to a decrease in value of inflation-indexed bonds.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">37</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_38"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">While these securities are expected to provide protection from long-term inflationary trends, short-term increases </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not reflected in the bond&#8217;s inflation measure.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The periodic adjustment of U.S. inflation-indexed bonds is tied to the Consumer Price Index for All Urban </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Consumers (&#8220;CPI-U&#8221;), which is not seasonally adjusted and which is calculated monthly by the U.S. Bureau of Labor </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transportation and energy. Inflation-indexed bonds issued by a foreign (non-U.S.) government are generally adjusted to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reflect a comparable inflation index calculated by that government. There can be no assurance that the CPI-U or any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign (non-U.S.) inflation index will accurately measure the real rate of inflation in the prices of goods and services. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Moreover, there can be no assurance that the rate of inflation in a foreign (non-U.S.) country will be correlated to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rate of inflation in the United States.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">even though investors do not receive their principal until maturity. As a result, in order to generate cash to make the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requisite distributions, the Fund may be required to sell securities in its portfolio that it would otherwise have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">continued to hold. See &#8220;Taxation.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Event-Linked Bonds</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may obtain event-linked exposure by investing in &#8220;event-linked bonds,&#8221; or &#8220;event-linked swaps,&#8221; or by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">implementing &#8220;event-linked strategies.&#8221; Event-linked exposure results in gains that typically are contingent on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-occurrence of a specific &#8220;trigger&#8221; event, such as a hurricane, earthquake or other physical or weather-related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">phenomena. Some event-linked bonds are commonly referred to as &#8220;catastrophe bonds.&#8221; They may be issued by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government agencies, insurance companies, reinsurers, special purpose corporations or other on-shore or off-shore </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entities (such special purpose entities are created to accomplish a narrow and well-defined objective, such as the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuance of a note in connection with a reinsurance transaction). If a trigger event causes losses exceeding a specific </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amount in the geographic region and time period specified in a bond, the Fund may lose a portion or all of its principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invested in the bond. If no trigger event occurs, the Fund will recover its principal plus interest. For some event-linked </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bonds, the trigger event or losses may be based on company-wide losses, index-portfolio losses, industry indices or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">readings of scientific instruments rather than specified actual losses. Often the event-linked bonds provide for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">extensions of maturity that are mandatory, or optional at the discretion of the issuer, in order to process and audit loss </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">claims in those cases where a trigger event has, or possibly has, occurred. An extension of maturity may increase </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">volatility. In addition to the specified trigger events, event-linked bonds also may expose the Fund to certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">unanticipated risks including but not limited to issuer risk, credit risk, counterparty risk, adverse regulatory or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">jurisdictional interpretations and adverse tax consequences.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Event-linked bonds are a relatively new type of financial instrument. As such, there is no significant trading </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">history for many&nbsp;of these securities, and there can be no assurance that a liquid market in these instruments will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">develop. Lack of a liquid market may impose the risk of higher transaction costs and the possibility that the Fund may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be forced to liquidate positions when it would not be advantageous to do so. Event-linked bonds are typically rated, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and the Fund will only invest in event-linked bonds that meet the credit quality requirements for the Fund.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Commodities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase or sell derivatives, securities or other instruments that provide exposure to commodities. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund&#8217;s investments in commodities-related instruments may subject the Fund to greater volatility than investments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in traditional securities. The value of commodity-related instruments may be affected by changes in overall market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and regulatory developments. An unexpected surplus of a commodity caused by one of the aforementioned factors, for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">example, may cause a significant decrease in the value of the commodity (and a decrease in the value of any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments directly correlated to the commodity). Conversely, an unexpected shortage of a commodity caused by one </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the aforementioned factors may cause a significant increase in the value of the commodity (and a decrease in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of any investments inversely correlated to that commodity). The commodity markets are subject to temporary </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">38</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_39"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">distortions and other disruptions due to, among other factors, lack of liquidity, the participation of speculators, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government regulation and other actions.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may focus its commodity-related investments in a particular sector of the commodities market (such as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">gold, oil, metal or agricultural products). As a result, to the extent the Fund focuses its investments in a particular </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sector of the commodities market, the Fund may be more susceptible to risks associated with those sectors, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the risk of loss due to adverse economic, business or political developments affecting a particular sector. See </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Derivative Instruments&#8221; below for a more detailed discussion of risks related to commodities, including additional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discussion of commodity-related derivative instruments.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Derivative Instruments</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may, but is not required to, utilize various derivative strategies (both long and short positions) involving </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the purchase or sale of futures and forward contracts (including foreign currency exchange contracts), call and put </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">options, credit default swaps, total return swaps, basis swaps and other swap agreements and other derivative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments for investment purposes, leveraging purposes or in an attempt to hedge against market, credit, interest rate, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency and other risks in the portfolio.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Generally, derivatives are financial contracts whose value depends on, or is derived from, the value of an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying asset, reference rate or index and may relate to, among other things, stocks, bonds, interest rates, currencies </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or currency exchange rates, commodities, related indexes and other assets. The following describes certain derivative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments and products in which the Fund may invest and risks associated therewith. The derivatives market is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">always changing and the Fund may invest in derivatives other than those shown below.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In pursuing its investment objective, the Fund may, to the extent permitted by its investment objective and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">policies, purchase and sell (write) both put options and call options on securities, swap agreements, recovery locks, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities indexes, commodity indexes and foreign currencies, and enter into interest rate, foreign currency, index and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commodity futures contracts and purchase and sell options on such futures contracts (&#8220;futures options&#8221;) for hedging </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purposes, to seek to replicate the composition and performance of a particular index, or as part of its overall </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment strategies. The Fund also may purchase and sell foreign currency options for purposes of increasing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund also may enter into swap agreements with respect to interest rates, commodities, indexes of securities or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commodities, and to the extent it may invest in foreign currency-denominated securities, may enter into swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements with respect to foreign currencies. The Fund may invest in structured notes. If other types of financial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments, including other types of options, futures contracts, or futures options are traded in the future, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">also may use those instruments, provided that their use is consistent with the Fund&#8217;s investment objective.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The value of some derivative instruments in which the Fund invests may be particularly
sensitive to changes in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">prevailing interest rates, and, like the other investments of the Fund, the ability of the Fund to successfully utilize these </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments may depend in part upon the ability of PIMCO to forecast interest rates and other economic factors </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">correctly. If PIMCO incorrectly forecasts such factors and has taken positions in derivative instruments contrary to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prevailing market trends, the Fund could be exposed to additional, unforeseen risks, including the risk of loss.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund might not employ any of the strategies described below, and no assurance can be
given that any </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">strategy used will succeed. If PIMCO incorrectly forecasts interest rates, market values or other economic factors in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">using a derivatives strategy for the Fund, the Fund might have been in a better position if it had not entered into the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction at all. Also, suitable derivatives transactions may not be available in all circumstances. The use of these </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">strategies involves certain special risks, including a possible imperfect correlation, or even no correlation, between </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price movements of derivative instruments and price movements of related investments. While some strategies </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">result in losses by offsetting favorable price movements in related investments or otherwise, due to the possible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">inability of the Fund to purchase or sell a portfolio security at a time that otherwise would be favorable or the possible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">need to sell a portfolio security at a disadvantageous time. In addition, the Fund&#8217;s use of such instruments may cause </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund to realize higher amounts of short-term capital gains (generally subject to tax when distributed to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders at ordinary income tax rates) than if it had not used such instruments. If the Fund gains exposure to an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">asset class using derivative instruments backed by a collateral portfolio of fixed-income instruments, changes in the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">39</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_40"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">value of the fixed-income instruments may result in greater or lesser exposure to that asset class than would have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">resulted from a direct investment in securities comprising that asset class.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Participation in the markets for derivative instruments involves investment risks and transaction costs to which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund may not be subject absent the use of these strategies. The skills needed to successfully execute derivative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">strategies may be different from those needed for other types of transactions. If the Fund incorrectly forecasts the value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and/or creditworthiness of securities, currencies, interest rates, counterparties or other economic factors involved in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">derivatives transaction, the Fund might have been in a better position if the Fund had not entered into such derivatives </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction. In evaluating the risks and contractual obligations associated with particular derivative instruments, it is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">important to consider that certain derivatives transactions may be modified or terminated only by mutual consent of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund and its counterparty and certain derivatives transactions may be terminated by the counterparty or the Fund, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as the case may be, upon the occurrence of certain Fund-related or counterparty-related events, which may result in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">losses or gains to the Fund based on the market value of the derivatives transactions entered into between the Fund and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the counterparty. In addition, such early terminations may result in taxable events and accelerate gain or loss </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recognition for tax purposes. It may not be possible for the Fund to modify, terminate, or offset the Fund&#8217;s obligations </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or the Fund&#8217;s exposure to the risks associated with a derivatives transaction prior to its termination or maturity date, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which may create a possibility of increased volatility and/or decreased liquidity to the Fund. Upon the expiration or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">termination of a particular contract, the Fund may wish to retain its position in the derivative instrument by entering </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">into a similar contract, but may be unable to do so if the counterparty to the original contract is unwilling or unable to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">enter into the new contract and no other appropriate counterparty can be found, which could cause the Fund not to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">able to maintain certain desired investment exposures or not to be able to hedge other investment positions or risks, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which could cause losses to the Fund. Furthermore, after such an expiration or termination of a particular contract, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may have fewer counterparties with which to engage in additional derivatives transactions, which could lead to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">potentially greater counterparty risk exposure to one or more counterparties and which could increase the cost of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entering into certain derivatives. In such cases, the Fund may lose money.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may engage in investment strategies, including the use of derivatives, to, among other things, seek to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generate current, distributable income without regard to possible declines in the Fund&#8217;s net asset value. The Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income and gain-generating strategies, including certain derivatives strategies, may generate current, distributable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income, even if such strategies could potentially result in declines in the Fund&#8217;s net asset value. The Fund&#8217;s income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and gain-generating strategies, including certain derivatives strategies, may generate current income and gains taxable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as ordinary income sufficient to support monthly distributions even in situations when the Fund has experienced a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">decline in net assets due to, for example, adverse changes in the broad U.S. or non-U.S. securities markets or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s portfolio investments, or arising from its use of derivatives. Consequently, shareholders may receive </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions subject to tax at ordinary income rates at a time when their investment in the Fund has declined in value, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which may be economically similar to a taxable return of capital.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The tax treatment of certain derivatives may be open to different interpretations. Any recharacterization of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments made or received by the Fund pursuant to derivatives potentially could affect the amount, timing or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">characterization of Fund distributions. In addition, the tax treatment of such investment strategies may be changed by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulation or otherwise.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Also, suitable derivative and/or hedging transactions may not be available in all circumstances, and there can be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">no assurance that the Fund will be able to identify or employ a desirable derivative and/or hedging transaction at any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time or from time to time or, if a strategy is used, that it will be successful.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As further described below under &#8220;Additional Risk Factors in Cleared Derivatives Transactions,&#8221; recent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">legislative and regulatory reforms have resulted in new clearing, margin, reporting and registration requirements for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participants in the derivatives market. While the ultimate impact is not yet clear, these changes could restrict and/or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">impose significant costs or other burdens upon the Fund&#8217;s ability to participate in derivatives transactions. Similarly, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">these changes could impose limits or restrictions on the counterparties with which the Fund engages in derivatives </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions. As a result, the Fund may be unable to use certain derivative instruments or otherwise execute its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment strategy. These risks may be particularly acute to the extent the Fund uses commodity-related derivative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Options on Securities and Indexes.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> The Fund may, to
the extent specified herein or in the Prospectus, purchase </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and sell both put and call options on equity, fixed-income or other securities (including securities to be
purchased </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">40</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_41"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">when-issued, delayed delivery and forward commitment transactions) or indexes in standardized contracts traded on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign or domestic securities exchanges, boards of trade, or similar entities, or quoted on the National Association of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Securities Dealers Automated Quotations System (&#8220;NASDAQ&#8221;) or on an OTC market, and agreements, sometimes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">called cash puts, which may accompany the purchase of a new issue of bonds from a dealer. Among other reasons, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may purchase put options to protect holdings in an underlying or related security against a decline in market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value, and may purchase call options to protect against increases in the prices of securities it intends to purchase </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pending its ability to invest in such securities in an orderly manner.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">An option on a security (or index) is a contract that gives the holder of the option, in return for a premium, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the security underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the option (or the cash value of an option that is on an index or cash settled) at a specified exercise price, often at any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time during the term of the option for American options or only at expiration for European options. The writer of an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">option on a security that requires physical delivery has the obligation upon exercise of the option to deliver the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying security upon payment of the exercise price (in the case of a call) or to pay the exercise price upon delivery </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the underlying security (in the case of a put). Certain put options written by the Fund, which counterparties may use </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as a source of liquidity, may be structured to have an exercise price that is less than the market value of the underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities that would be received by the Fund. Upon exercise, the writer of an option on an index or a cash-settled </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">option on a security is obligated to pay the difference between the cash value of the index and the exercise price </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">multiplied by the specified multiplier for the option. An index is designed to reflect features of a particular financial or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities market, a specific group of financial instruments or securities, or certain economic indicators.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If an option written by the Fund expires unexercised, the Fund realizes a capital gain
equal to the premium </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">received at the time the option was written. If an option purchased by the Fund expires unexercised, the Fund realizes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a capital loss equal to the premium paid. Prior to the earlier of exercise or expiration, an exchange-traded option may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be closed out by an offsetting purchase or sale of an option of the same series (type, exchange, underlying security or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">index, exercise price, and expiration). There can be no assurance, however, that a closing purchase or sale transaction </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">can be effected when the Fund desires. In addition, the Fund may sell put or call options it has previously purchased, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which could result in a net gain or loss depending on whether the amount realized on the sale is more or less than the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">premium and other transaction costs paid on the put or call option which is sold. Prior to the exercise or expiration, an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">option may be closed out by an offsetting purchase or sale of an option of the same series.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund will realize a capital gain from a closing purchase transaction if the cost of the closing option is less </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">than the premium received from writing the option, or, if it is more, the Fund will realize a capital loss. If the premium </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">received from a closing sale transaction is more than the premium paid to purchase the option, the Fund will realize a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital gain or, if it is less, the Fund will realize a capital loss. The principal factors affecting the market value of a put </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or a call option include supply and demand, interest rates, the current market price of the underlying security or index </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in relation to the exercise price of the option, the volatility of the underlying security or index, and the time remaining </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">until the expiration date.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The premium paid for a put or call option purchased by the Fund is an asset of the Fund. The premium received </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for an option written by the Fund is recorded as a deferred credit. The value of an option purchased or written is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">marked-to-market daily and is valued in accordance with the Fund&#8217;s valuation policies and procedures. See &#8220;Net Asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Value&#8221; below.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may write covered straddles consisting of a combination of a call and a put written on the same </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying security. A straddle will be covered when sufficient liquid assets are deposited to meet the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">immediate obligations. The Fund may use the same liquid assets to cover both the call and put options where the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercise price of the call and put are the same, or where the exercise price of the call is higher than that of the put.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">OTC Options.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> Pursuant to policies adopted by the Fund&#8217;s Board,
purchased OTC options and the assets used as </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">cover for OTC options written by the Fund may be treated as liquid.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Risks Associated with Options on Securities and
Indexes</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">. There are several risks associated with transactions in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">options on securities and
on indexes. For example, there are significant differences between the securities and options </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets that could result in an imperfect correlation between these markets,
causing a given transaction not to achieve </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">41</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_42"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">its objectives. A decision as to whether, when and how to use options involves the exercise of skill and judgment, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">even a well-conceived transaction may be unsuccessful to some degree because of market behavior or unexpected </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">events.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The
writer of an American option often has no control over the time when it may be required to fulfill its </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligation as a writer of the option. Once an option writer has
received an exercise notice, it cannot effect a closing </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase transaction in order to terminate its obligation under the option and must deliver the underlying
security at </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the exercise price. To the extent the Fund writes a put option, the Fund has assumed the obligation during the option </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">period to purchase the underlying investment from the put buyer at the option&#8217;s exercise price if the put buyer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercises its option, regardless of whether the value of the underlying investment falls below the exercise price. This </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">means that the Fund that writes a put option may be required to take delivery of the underlying investment and make </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payment for such investment at the exercise price. This may result in losses to the Fund and may result in the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holding the underlying investment for some period of time when it is disadvantageous to do so. If a put or call option </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchased by the Fund is not sold when it has remaining value, and if the market price of the underlying security </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">remains equal to or greater than the exercise price (in the case of a put), or remains less than or equal to the exercise </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price (in the case of a call), the Fund will lose its entire investment in the option. Also, where a put or call option on a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particular security is purchased to hedge against price movements in a related security, the price of the put or call </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">option may move more or less than the price of the related security.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">There can be no assurance that a liquid market will exist when the Fund seeks to close out an option position. If </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund were unable to close out an option that it had purchased on a security, it would have to exercise the option in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">order to realize any profit or the option may expire worthless. If the Fund were unable to close out a covered call </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">option that it had written on a security, it would not be able to sell the underlying security unless the option expired </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">without exercise. As the writer of a covered call option, the Fund forgoes, during the option&#8217;s life, the opportunity to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">profit from increases in the market value of the security covering the call option above the sum of the premium and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercise price of the call.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If trading were suspended in an option purchased by the Fund, the Fund would not be able to close out the option. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">If restrictions on exercise were imposed, the Fund might be unable to exercise an option it has purchased. Except to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the extent that a call option on an index written by the Fund is covered by an option on the same index purchased by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund, movements in the index may result in a loss to the Fund; however, such losses may be mitigated by changes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the value of the Fund&#8217;s securities during the period the option was outstanding.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">To the extent that the Fund writes a call option on a security it holds in its portfolio and intends to use such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security as the sole means of &#8220;covering&#8221; its obligation under the call option, the Fund has, in return for the premium on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the option, given up the opportunity to profit from a price increase in the underlying security above the exercise price </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">during the option period, but, as long as its obligation under such call option continues, has retained the risk of loss </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">should the price of the underlying security decline. In accordance with current federal securities laws, rules and staff </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">positions, if the Fund were unable to close out such a call option, the Fund would not be able to sell the underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security unless the option expired without exercise.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Foreign Currency Options</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">. To the extent the Fund
invests in foreign currency-denominated securities, it may buy </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">or sell put and call options on foreign currencies. In addition, the Fund may buy or sell put and call
options on foreign </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">currencies either on exchanges or in the OTC market. A put option on a foreign currency gives the purchaser of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">option the right to sell a foreign currency at the exercise price until the option expires. A call option on a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency gives the purchaser of the option the right to purchase the currency at the exercise price until the option </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expires. Currency options traded on U.S. or other exchanges may be subject to position limits which may limit the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability of the Fund to reduce foreign currency risk using such options. OTC options differ from traded options in that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">they are bilateral contracts with price and other terms negotiated between buyer and seller, and generally do not have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as much market liquidity as exchange-traded options. Under definitions adopted by the CFTC and SEC, many foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency options are considered swaps for certain purposes, including determination of whether such instruments need </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to be exchange-traded and centrally cleared as discussed further in &#8220;Risks of Potential Government Regulation of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Derivatives.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;margin-left:4.17%;">Futures Contracts and Futures Options</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">. A futures
contract is an agreement to buy or sell a security or other asset </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">for a set price on a future date. These contracts are traded on exchanges, so that, in most cases, a
party can close out its </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">position on the exchange for cash, without delivering the underlying security or other underlying asset. An option on a </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">42</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_43"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">futures contract gives the holder of the option the right to buy or sell a position in a futures contract from or to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">writer of the option, at a specified price and on or before a specified expiration date. The Fund may invest in futures or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">options on futures with respect to interest rates, foreign currencies, securities or commodity indexes. The Fund may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invest in foreign exchange futures contracts and options thereon (&#8220;futures options&#8221;) that are traded on a U.S. or foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange or board of trade, or similar entity, or quoted on an automated quotation system as an adjunct to their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities activities. In addition, the Fund may purchase and sell futures contracts on various securities indexes (&#8220;Index </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Futures&#8221;) and related options for hedging purposes and for investment purposes. The Fund purchase and sale of Index </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Futures is limited to contracts and exchanges which have been approved by the CFTC. Through the use of Index </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Futures and related options, the Fund may diversify risk in its portfolio without incurring the substantial brokerage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">costs which may be associated with investment in the securities of multiple issuers. The Fund may also avoid potential </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market and liquidity problems which may result from increases in positions already held by the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">An interest rate, commodity, foreign currency or index futures contract provides for the future sale or purchase of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a specified quantity of a financial instrument, commodity, foreign currency or the cash value of an index at a specified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price and time. A Futures contract on an index is an agreement pursuant to which a party agrees to pay or receive an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amount of cash equal to the difference between the value of the index at the close of the last trading day of the contract </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and the price at which the index contract was originally written. Although the value of an Index might be a function of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the value of certain specified securities, no physical delivery of these securities is made. A unit is the value of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relevant Index from time to time. Entering into a contract to buy units is commonly referred to as buying or purchasing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a contract or holding a long position in an Index. Index Futures contracts can be traded through all major commodity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">brokers. The Fund will ordinarily be able to close open positions on the futures exchange on which Index Futures are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">then traded at any time up to and including the expiration day.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may close open positions on the futures exchanges on which Index Futures are traded at any time up to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and including the expiration day. All positions which remain open at the close of the last business day of the contract&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">life are required to settle on the next business day (based upon the value of the relevant index on the expiration day), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with settlement made with the appropriate clearing house. Positions in Index Futures may be closed out by the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">only on the futures exchanges upon which the Index Futures are then traded.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A public market exists in futures contracts covering a number of indexes as well as financial instruments and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign currencies, including, but not limited to: the S&amp;P 500; the S&amp;P Midcap 400; the Nikkei 225; the Markit CDX </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit index; the iTraxx credit index; U.S. Treasury bonds; U.S. Treasury notes; U.S. Treasury bills; 90-day </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commercial paper; bank certificates of deposit; Eurodollar certificates of deposit; the Australian dollar; the Canadian </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dollar; the British pound; the Japanese yen; the Swiss franc; the Mexican peso; and certain multinational currencies, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such as the euro. It is expected that other futures contracts will be developed and traded in the future. Certain futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts on indexes, financial instruments or foreign currencies may represent new investment products that lack </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">performance track records.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund might use financial futures contracts to hedge against anticipated changes in interest rates that might </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adversely affect either the value of the Fund&#8217;s securities or the price of the securities which the Fund intends to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase. The Fund&#8217;s hedging activities may include sales of futures contracts as an offset against the effect of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expected increases in interest rates, and purchases of futures contracts as an offset against the effect of expected </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">declines in interest rates. Although other techniques could be used to reduce the Fund&#8217;s exposure to interest rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fluctuations, the Fund may be able to hedge its exposure more effectively and perhaps at a lower cost by using futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts and futures options.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may also invest in commodity futures contracts and options thereon. A commodity futures contract is an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreement to buy or sell a commodity, such as an energy, agricultural or metal commodity at a later date at a price and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">quantity agreed-upon when the contract is bought or sold.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase and write call and put futures options. Futures options possess many of the same </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">characteristics as options on securities and indexes (discussed above). A futures option gives the holder the right, in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">return for the premium paid, to assume a long position (call) or short position (put) in a futures contract at a specified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercise price at any time during the period of the option. Upon exercise of a call option, the holder acquires a long </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">position in the futures contract and the writer is assigned the opposite short position. In the case of a put option, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">opposite is true. A call option is &#8220;in the money&#8221; if the value of the futures contract that is the subject of the option </font></div> </div> <div style="clear:both;">
</div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">43</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_44"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">exceeds the exercise price. A put option is &#8220;in the money&#8221; if the exercise price exceeds the value of the futures contract </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that is the subject of the option.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">When a purchase or sale of a futures contract is made by the Fund, the Fund is required to deposit with its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">custodian a specified amount of assets determined to be liquid (&#8220;initial margin&#8221;). The margin required for a futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract is set by the exchange on which the contract is traded and may be modified during the term of the contract. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Margin requirements on foreign exchanges may be different than U.S. exchanges. The initial margin is in the nature of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a performance bond or good faith deposit on the futures contract which is returned to the Fund upon termination of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract, assuming all contractual obligations have been satisfied. The Fund expects to earn interest income on its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">initial margin deposits. A futures contract held by the Fund is valued daily at the official settlement price of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange on which it is traded. Each day the Fund pays or receives cash, called &#8220;variation margin,&#8221; equal to the daily </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">change in value of the futures contract. This process is known as &#8220;marking-to-market.&#8221; Variation margin does not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">represent a borrowing or loan by the Fund but is instead a settlement between the Fund and the broker of the amount </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">one would owe the other if the futures contract expired. In computing daily net asset value, the Fund will
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">mark-to-market its open futures positions.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund is also required to deposit and maintain margin with respect to put and call options on futures contracts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">written by it. Such margin deposits will vary depending on the nature of the underlying futures contract (and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">related initial margin requirements), the current market value of the option, and other futures positions held by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Customer Account Agreements and related addenda govern cleared derivatives transactions
such as futures, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">each relevant clearing agency which is segregated in an account at a futures commission merchant (&#8220;FCM&#8221;) registered </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the CFTC. In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund assets in the segregated account. Portability of exposure reduces risk to the Fund. Variation margin, or changes in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market value, are generally exchanged daily, but may not be netted between futures and cleared OTC derivatives </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">unless the parties have agreed to a separate arrangement in respect of portfolio margining. Although some futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts call for making or taking delivery of the underlying securities or commodities, generally these obligations are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">closed out prior to delivery by offsetting purchases or sales of matching futures contracts (i.e., with the same exchange, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying security or index, and delivery month). Closing out a futures contract sale is effected by purchasing an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offsetting futures contract for the same aggregate amount of the specific type of financial instrument or commodity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the same delivery date. If an offsetting purchase price is less than the original sale price, the Fund realizes a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital gain, or if it is more, the Fund realizes a capital loss.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Conversely, if an offsetting sale price is more than the original purchase price, the Fund realizes a capital gain, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">if it is less, the Fund realizes a capital loss. The transaction costs must also be included in these calculations.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">When purchasing a futures contract that cash settles, the Fund will maintain with its
custodian (and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">mark-to-market on a daily basis) assets determined to be liquid that, when added to the amounts deposited with a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures commission merchant as margin, are equal to the daily marked-to-market net obligation (if any) of the futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract. Alternatively, the Fund may &#8220;cover&#8221; its position by purchasing a put option on the same futures contract with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a strike price as high or higher than the price of the contract held by the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In accordance with current federal securities laws, rules and staff positions, when selling a futures contract that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cash settles, the Fund will maintain with its custodian (and mark-to-market on a daily basis) assets determined to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">liquid that are equal to the daily marked to market net obligation of the futures contract. Alternatively, the Fund may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;cover&#8221; its position by owning the instruments underlying the futures contract (or, in the case of an Index Future, a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio with a volatility substantially similar to that of the Index on which the futures contract is based), or by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holding a call option permitting the Fund to purchase the same futures contract at a price no higher than the price of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the contract written by the Fund (or at a higher price if the difference is maintained in liquid assets with the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">custodian).</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">When selling a call option on a futures contract, the Fund may but is not required to
&#8220;earmark&#8221; or maintain with </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">its custodian (and mark-to-market on a daily basis) assets determined to be liquid that, when added to the amounts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deposited with a futures commission merchant as margin, equal the total market value of the futures contract </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying the call option. Alternatively, the Fund may cover its position by entering into a long position in the same </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">44</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_45"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">futures contract at a price no higher than the strike price of the call option, by owning the instruments underlying the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures contract, or by holding a separate call option permitting the Fund to purchase the same futures contract at a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price not higher than the strike price of the call option sold by the Fund. When selling a put option on a futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract, the Fund may but is not required to &#8220;earmark&#8221; or maintain with its custodian (and mark-to-market on a daily </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">basis) assets determined to be liquid that equal the purchase price of the futures contract, less any margin on deposit. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Alternatively, the Fund may cover the position either by entering into a short position in the same futures contract, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by owning a separate put option permitting it to sell the same futures contract so long as the strike price of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchased put option is the same or higher than the strike price of the put option sold by the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund will only enter into futures contracts and futures options which are standardized and traded on a U.S. or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign exchange, board of trade, or similar entity, or quoted on an automated quotation system, or in the case of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures options, for which an established OTC market exists.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The requirements for qualification as a RIC also may limit the extent to which the Fund may enter into futures, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures options and forward contracts. See &#8220;Taxation.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Commodity Pool Operators and Commodity Trading Advisors.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The CFTC has adopted regulations that subject </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">registered investment companies and their investment
advisers to regulation by the CFTC if the registered investment </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">company invests more than a prescribed level of its liquidation value in futures, options on futures or
commodities, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">swaps, or other financial instruments regulated under the Commodity Exchange Act and the rules thereunder </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;commodity interests&#8221;), or if the Fund markets itself as providing investment exposure to such instruments. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Manager is registered with the CFTC as a CPO. However, with respect to the Fund, the Investment
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Manager has claimed an exclusion from registration as a CPO pursuant to CFTC Rule 4.5. For the Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Manager to remain eligible for this exclusion, the Fund must comply with certain limitations, including limits on its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability to use any commodity interests and limits on the manner in which the Fund holds out its use of such commodity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interests. These limitations may restrict the Fund&#8217;s ability to pursue its investment objective and strategies, increase the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">costs of implementing its strategies, result in higher expenses for the Fund, and/or adversely affect the Fund&#8217;s total </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">return. To the extent the Fund becomes ineligible for this exclusion from CFTC regulation, the Fund may consider </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">steps in order to continue to qualify for exemption from CFTC regulation, or may determine to operate subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CFTC regulation.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Risks Associated with Futures and Futures Options.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">There are several risks associated with the use of futures </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts and futures options as hedging
techniques. A purchase or sale of a futures contract may result in losses in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">excess of the amount invested in the futures contract. There can be no guarantee that there
will be a correlation </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">between price movements in the hedging vehicle and in the Fund securities being hedged. In addition, there are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">significant differences between the securities and futures markets that could result in an imperfect correlation between </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the markets, causing a given hedge not to achieve its objective. The degree of imperfection of correlation depends on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">circumstances such as variations in speculative market demand for futures and futures options on securities, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">technical influences in futures trading and futures options, and differences between the financial instruments being </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">hedged and the instruments underlying the standard contracts available for trading in such respects as interest rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">levels, maturities, and creditworthiness of issuers. A decision as to whether, when and how to hedge involves the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market behavior or unexpected interest rate trends.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Futures contracts on U.S. government securities historically have reacted to an increase or decrease in interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rates in a manner similar to that in which the underlying U.S. government securities reacted. To the extent, however, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that the Fund enters into such futures contracts, the value of such futures will not vary in direct proportion to the value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund&#8217;s holdings of U.S. government securities. Thus, the anticipated spread between the price of the futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract and the hedged security may be distorted due to differences in the nature of the markets. The spread also may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be distorted by differences in initial and variation margin requirements, the liquidity of such markets and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participation of speculators in such markets.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Additionally, the price of Index Futures may not correlate perfectly with movement in the relevant index due to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain market distortions. First, all participants in the futures market are subject to margin deposit and maintenance </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements. Rather than meeting additional margin deposit requirements, investors may close futures contracts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">through offsetting transactions which could distort the normal relationship between the index and futures markets. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Second, the deposit requirements in the futures market are less onerous than margin requirements in the securities </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">45</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_46"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">market, and as a result, the futures market may attract more speculators than does the securities market. Increased </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participation by speculators in the futures market may also cause temporary price distortions. In addition, trading hours </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for foreign stock Index Futures may not correspond perfectly to hours of trading on the foreign exchange to which a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particular foreign stock Index Future relates. This may result in a disparity between the price of Index Futures and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of the relevant index due to the lack of continuous arbitrage between the Index Futures price and the value of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying index.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Futures exchanges may limit the amount of fluctuation permitted in certain futures contract prices during a single </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">trading day. The daily limit establishes the maximum amount that the price of a futures contract may vary either up or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">down from the previous day&#8217;s settlement price at the end of the current trading session. Once the daily limit has been </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reached in a futures contract subject to the limit, no more trades may be made on that day at a price beyond that limit. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The daily limit governs only price movements during a particular trading day and therefore does not limit potential </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">losses because the limit may work to prevent the liquidation of unfavorable positions. For example, futures prices have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">occasionally moved to the daily limit for several consecutive trading days with little or no trading, thereby preventing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prompt liquidation of positions and subjecting some holders of futures contracts to substantial losses.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">There can be no assurance that a liquid market will exist at a time when the Fund seeks to
close out a futures or a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures option position, and that the Fund would remain obligated to meet margin requirements until the position is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">closed. In addition, many of the contracts discussed above are relatively new instruments without a significant trading </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">history. As a result, there can be no assurance that an active secondary market will develop or continue to exist.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Risks Associated with Commodity Futures Contracts.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">There are several additional risks associated with </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions in commodity futures contracts,
including but not limited to:</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Storage.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Unlike the financial futures markets, in the commodity futures markets there are costs of physical
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">storage associated with purchasing the underlying commodity. The price of the commodity futures contract will reflect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the storage costs of purchasing the physical commodity, including the time value of money invested in the physical </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commodity. To the extent that the storage costs for an underlying commodity change while the Fund is invested in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures contracts on that commodity, the value of the futures contract may change proportionately.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Reinvestment.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">In the commodity futures markets, producers of the underlying commodity may
decide to hedge </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the price risk of selling the commodity by selling futures contracts today to lock in the price of the commodity at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delivery tomorrow. In order to induce speculators to purchase the other side of the same futures contract, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commodity producer generally must sell the futures contract at a lower price than the expected future spot price. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Conversely, if most hedgers in the futures market are purchasing futures contracts to hedge against a rise in prices, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">then speculators will only sell the other side of the futures contract at a higher futures price than the expected future </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">spot price of the commodity. The changing nature of the hedgers and speculators in the commodity markets will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">influence whether futures prices are above or below the expected future spot price, which can have significant </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">implications for the Fund. If the nature of hedgers and speculators in futures markets has shifted when it is time for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund to reinvest the proceeds of a maturing contract in a new futures contract, the Fund might reinvest at higher or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">lower futures prices, or choose to pursue other investments.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Other Economic
Factors.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The commodities which underlie commodity futures contracts may be subject to </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">additional economic and
non-economic variables, such as drought, floods, weather, livestock disease, embargoes, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">tariffs, and international economic, political and regulatory developments. These
factors may have a larger impact on </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">commodity prices and commodity-linked instruments, including futures contracts, than on traditional securities. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Certain commodities are also subject to limited pricing flexibility because of supply and demand factors. Others are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to broad price fluctuations as a result of the volatility of the prices for certain raw materials and the instability </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of supplies of other materials. These additional variables may create additional investment risks which subject the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s investments to greater volatility than investments in traditional securities.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:20pt;">Additional Risks of Options on Securities, Futures Contracts, Futures Options and Forward Currency Exchange </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;">Contracts and Options Thereon.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Options on securities, futures contracts, futures options, forward currency
exchange </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts and options on forward currency exchange contracts may be traded on foreign (non-U.S.) exchanges. Such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions may not be regulated as effectively as similar transactions in the United States, may not involve a clearing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mechanism and related guarantees, and are subject to the risk of governmental actions affecting trading in, or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prices of, foreign (non-U.S.) securities. The value of such positions also could be adversely affected by: (i) other </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">46</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_47"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">complex non-U.S. political, legal and economic factors; (ii) lesser availability than in the United States of data on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which to make trading decisions; (iii) delays in the Fund&#8217;s ability to act upon economic events occurring in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-U.S. markets during non-business hours in the United States; (iv) the imposition of different exercise and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">settlement terms and procedures and margin requirements than in the United States; and (v) lesser trading volume.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Swap Agreements and Options on Swap Agreements.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund may engage in swap transactions, including, but </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">not limited to, swap agreements on interest
rates, security or commodity indexes, specific securities and commodities, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and credit and event-linked swaps. To the extent the Fund may invest in foreign (non-U.S.)
currency denominated </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, it also may invest in currency exchange rate swap agreements. The Fund also may enter into options on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">swap agreements (&#8220;swaptions&#8221;).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may enter into swap transactions for any legal purpose consistent with its investment objective and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">policies, such as attempting to obtain or preserve a particular return or spread at a lower cost than obtaining a return or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">spread through purchases and/or sales of instruments in other markets, to protect against currency fluctuations, as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">duration management technique, to protect against any increase in the price of securities the Fund anticipates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchasing at a later date, or to gain exposure to certain markets in a more cost-efficient manner.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">OTC swap agreements are bilateral contracts entered into primarily by institutional investors for periods ranging </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from a few weeks to more than one year. In a standard OTC swap transaction, two parties agree to exchange the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The gross returns to be exchanged or &#8220;swapped&#8221; between the parties are generally calculated with respect to a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;notional amount,&#8221; i.e., the return on or change in value of a particular dollar amount invested at a particular interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rate or in a &#8220;basket&#8221; of securities or commodities representing a particular index. A &#8220;quanto&#8221; or &#8220;differential&#8221; swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">combines both an interest rate and a currency transaction. Certain swap agreements, such as interest rate swaps, are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">traded on exchanges and cleared through central clearing counterparties. Other forms of swap agreements include </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that interest rates exceed a specified rate, or &#8220;cap&#8221;; interest rate floors, under which, in return for a premium, one party </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agrees to make payments to the other to the extent that interest rates fall below a specified rate, or &#8220;floor&#8221;; and interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rate movements exceeding given minimum or maximum levels. A total return swap agreement is a contract in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which one party agrees to make periodic payments to another party based on the change in market value of underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets, which may include a single stock, a basket of stocks, or a stock index during the specified period, in return for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">periodic payments based on a fixed or variable interest rate or the total return from other underlying assets. Consistent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the Fund&#8217;s investment objective and general investment policies, the Fund may invest in commodity swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements. For example, an investment in a commodity swap agreement may involve the exchange of floating-rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest payments for the total return on a commodity index. In a total return commodity swap, the Fund will receive </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the price appreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreed-upon fee. If the commodity swap is for one period, the Fund may pay a fixed fee, established at the outset of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the swap. However, if the term of the commodity swap is more than one period, with interim swap payments, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may pay an adjustable or floating fee. With a &#8220;floating&#8221; rate, the fee may be pegged to a base rate, such as the London </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Interbank Offered Rate, and is adjusted each period. Therefore, if interest rates increase over the term of the swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract, the Fund may be required to pay a higher fee at each swap reset date.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund also may enter into combinations of swap agreements in order to achieve certain economic results. For </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">example, the Fund may enter into two swap transactions, one of which offsets the other for a period of time. After the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offsetting swap transaction expires, the Fund would be left with the economic exposure provided by the remaining </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">swap transaction. The intent of such an arrangement would be to lock in certain terms of the remaining swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction that the Fund may wish to gain exposure to in the future without having that exposure during the period the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offsetting swap is in place.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund also may enter into swaptions. A swaption is a contract that gives a counterparty the right (but not the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligation) in return for payment of a premium, to enter into a new swap agreement or to shorten, extend, cancel or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">otherwise modify an existing swap agreement, at some designated future time on specified terms. The Fund may write </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(sell) and purchase put and call swaptions.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Depending on the terms of the particular option agreement, the Fund will generally incur a greater degree of risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">when it writes a swaption than it will incur when it purchases a swaption. When the Fund purchases a swaption, it risks </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">47</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_48"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However, when </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying agreement.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund also may enter into forward volatility agreements, also known as volatility swaps.
In a volatility swap, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the counterparties agree to make payments in connection with changes in the volatility (i.e., the magnitude of change </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">over a specified period of time) of an underlying reference instrument, such as a currency, rate, index, security or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">financial instrument. Volatility swaps permit the parties to attempt to hedge volatility risk and/or take positions on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">projected future volatility of an underlying reference instrument. For example, the Fund may enter into a volatility </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">swap in order to take the position that the reference instrument&#8217;s volatility will increase over a particular period of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time. If the reference instrument&#8217;s volatility does increase over the specified time, the Fund will receive a payment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from its counterparty based upon the amount by which the reference instrument&#8217;s realized volatility level exceeds a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">volatility level agreed upon by the parties. If the reference instrument&#8217;s volatility does not increase over the specified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time, the Fund will make a payment to the counterparty based upon the amount by which the reference instrument&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">realized volatility level falls below the volatility level agreed upon by the parties. Payments on a volatility swap will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be greater if they are based upon the mathematical square of volatility (i.e., the measured volatility multiplied by itself, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which is referred to as &#8220;variance&#8221;). This type of a volatility swap is frequently referred to as a variance swap. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may potentially engage in variance swaps.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Most types of swap agreements entered into by the Fund will calculate the obligations of the parties to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreement on a &#8220;net basis.&#8221; Consequently, the Fund&#8217;s current obligations (or rights) under a swap agreement will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally be equal only to the net amount to be paid or received under the agreement based on the relative values of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the positions held by each party to the agreement (the &#8220;net amount&#8221;).</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund also may enter into OTC and cleared credit default swap agreements.
The credit default swap </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreement may reference one or more debt securities or obligations that are not currently held by the Fund. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">protection &#8220;buyer&#8221; in an OTC credit default swap contract is generally obligated to pay the protection &#8220;seller&#8221; an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">upfront or a periodic stream of payments over the term of the contract until a credit event, such as a default, on a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the &#8220;par value&#8221; (full </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">described in the swap, or the seller may be required to deliver the related net cash amount if the swap is cash settled. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund may be either the buyer or seller in the transaction. If the Fund is a buyer and no credit event occurs, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may recover nothing if the swap is held through its termination date. However, if a credit event occurs, the buyer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may receive the full notional value of the swap in exchange for an equal face amount of deliverable obligations of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reference entity whose value may have significantly decreased.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As a seller, the Fund generally receives an upfront payment or a fixed rate of income throughout the term of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">swap provided that there is no credit event. As the seller, the Fund would effectively add leverage to its portfolio </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the swap. The spread of a credit default swap is the annual amount the protection buyer must pay the protection seller </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">over the length of the contract, expressed as a percentage of the notional amount. When spreads rise, market perceived </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit risk rises and when spreads fall, market perceived credit risk falls. Wider credit spreads and decreasing market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">values, when compared to the notional amount of the swap, represent a deterioration of the credit soundness of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer of the reference obligation and a greater likelihood or risk of default or other credit event occurring as defined </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">under the terms of the agreement. For credit default swap agreements on ABS and credit indices, the quoted market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prices and resulting values, as well as the annual payment rate, serve as an indication of the current status of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payment/performance risk.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Credit default swap agreements sold by the Fund may involve greater risks than if the Fund had invested in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risk, counterparty risk (with respect to OTC credit default swaps) and credit risk. The Fund will enter into uncleared </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit default swap agreements only with counterparties that meet certain standards of creditworthiness. A buyer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally also will lose its investment and recover nothing should no credit event occur and the swap is held to its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller, coupled </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the upfront or periodic payments previously received, may be less than the full notional value it pays to the buyer, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">resulting in a loss of value to the seller. In addition, there may be disputes between the buyer and seller of a credit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">default swap agreement or within the swaps market as a whole as to whether a credit event has occurred or what the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">48</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_49"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">payment should be. Such disputes could result in litigation or other delays, and the outcome could be adverse for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">buyer or seller. The Fund&#8217;s obligations under a credit default swap agreement will be accrued daily (offset against any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amounts owing to the Fund).</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Dodd-Frank Act and related regulatory developments require the clearing and
exchange-trading of certain </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">standardized OTC derivative instruments that the CFTC and SEC have defined as &#8220;swaps.&#8221; The CFTC has </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">implemented mandatory exchange-trading and clearing requirements under the Dodd-Frank Act and the CFTC
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">continues to approve contracts for central clearing. Uncleared swaps are subject to certain margin requirements that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mandate the posting and collection of minimum margin amounts on certain uncleared swaps transactions, which may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">result in the Fund and its counterparties posting higher margin amounts for uncleared swaps than would otherwise be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the case. These amounts beyond coverage of daily exposure, if any, may (or if required by law, will) be segregated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with a third-party custodian. To the extent the Fund is required by regulation to post additional collateral beyond </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">coverage of daily exposure, it could potentially incur costs, including in procuring eligible assets to meet collateral </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements, associated with such posting. Although PIMCO will continue to monitor developments in this area, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particularly to the extent regulatory changes affect the Fund&#8217;s ability to enter into swap agreements, there can be no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assurance that such regulatory changes will not result in losses to the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Whether the Fund&#8217;s use of swap agreements or swaptions will be successful in furthering its investment objective </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will depend on PIMCO&#8217;s ability to predict correctly whether certain types of investments are likely to produce greater </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">returns than other investments. Moreover, the Fund bears the risk of loss of the amount expected to be received under a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. Certain restrictions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">imposed on the Fund by the Code may limit the Fund&#8217;s ability to use swap agreements. The swaps market is subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">increasing regulations, in both U.S. and non-U.S. markets. It is possible that developments in the swaps market, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including additional government regulation, could adversely affect the Fund&#8217;s ability to terminate existing swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements or to realize amounts to be received under such agreements.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Swaps are highly specialized instruments that require investment techniques, risk analyses, and tax planning </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">different from those associated with traditional investments. The use of a swap requires an understanding not only of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the reference asset, reference rate, or index but also of the swap itself, without the benefit of observing the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">performance of the swap under all possible market conditions.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Because OTC swap agreements are bilateral contracts that may be subject to contractual restrictions on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transferability and termination and because they may have remaining terms of greater than seven days, swap
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements may be considered to be illiquid and subject to regulatory limitations on investments in illiquid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments. Please refer to &#8220;Illiquid Investments&#8221; below for further discussion of regulatory considerations and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">constraints relating to investment liquidity. To the extent that a swap is not liquid, it may not be possible to initiate a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction or liquidate a position at an advantageous time or price, which may result in significant losses.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Like most other investments, swap agreements are subject to the risk that the market value
of the instrument will </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">change in a way detrimental to the Fund&#8217;s interest. The Fund bears the risk that PIMCO will not accurately forecast </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">future market trends or the values of assets, reference rates, indexes, or other economic factors in establishing swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">positions for the Fund. If PIMCO attempts to use a swap as a hedge against, or as a substitute for, a portfolio </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment, the Fund will be exposed to the risk that the swap will have or will develop imperfect or no correlation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the portfolio investment. This could cause substantial losses for the Fund. While hedging strategies involving </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">swap instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offsetting favorable price movements in other Fund investments.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:20pt;">Many swaps are complex and often valued subjectively.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Structured Notes.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund may invest without limitation in &#8220;structured&#8221; notes, which
are privately negotiated </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">asset, market or interest rate, such as selected securities, an index of securities or specified interest rates, or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">differential performance of two assets or markets, such as indexes reflecting bonds. Depending on the terms of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">note, the Fund may forgo all or part of the interest and principal that would be payable on a comparable conventional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">note. The rate of return on structured notes may be determined by applying a multiplier to the performance or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">differential performance of the referenced index(es) or other asset(s). Application of a multiplier involves leverage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which will serve to magnify the potential for gain and the risk of loss. The Fund may use structured notes to add </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">49</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_50"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">leverage to the portfolio and for investment as well as risk management purposes. Like other sophisticated strategies, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s use of structured notes may not work as intended.Certain issuers of structured products may be deemed to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be investment companies as defined in the 1940 Act. As a result, the Fund&#8217;s investments in these structured products </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be subject to limits applicable to investments in investment companies and may be subject to restrictions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contained in the 1940 Act.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Risks of Potential Government Regulation of Derivatives.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">It is possible that additional government regulation of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">various types of derivative instruments,
including futures, options and swap agreements, and regulation of certain </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">market participants&#8217; use of the same, may limit or prevent the Fund from using such
instruments as a part of its </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment strategy, and could ultimately prevent the Fund from being able to achieve its investment objective. It is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">impossible to fully predict the effects of past, present or future legislation and regulation by multiple regulators in this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">area, but the effects could be substantial and adverse. It is possible that legislative and regulatory activity could limit or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">restrict the ability of the Fund to use certain instruments as a part of its investment strategy. See &#8220;Derivatives Risk&#8221; in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Prospectus.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">There is a possibility of future regulatory changes altering, perhaps to a material extent, the nature of an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment in the Fund or the ability of the Fund to continue to implement its investment strategies. The futures, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">options and swaps markets are subject to comprehensive statutes, regulations, and margin requirements. In addition, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the SEC, CFTC and the exchanges are authorized to take extraordinary actions in the event of a market emergency, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including, for example, the implementation or reduction of speculative position limits, the implementation of higher </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">margin requirements, the establishment of daily price limits and the suspension of trading.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The regulation of futures, options and swaps transactions in the United States is a changing area of law and is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to modification by government and judicial action. In particular, the Dodd-Frank Act sets forth a legislative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">framework for OTC derivatives, including financial instruments, such as swaps, in which the Fund may invest. Title </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">VII of the Dodd-Frank Act makes broad changes to the OTC derivatives market, grants significant authority to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">SEC and the CFTC to regulate OTC derivatives and market participants, and requires clearing and exchange trading of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">many OTC derivatives transactions. The CFTC and various exchanges have rules limiting the maximum net long or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">short positions which any person or group may own, hold or control in any given futures contract or option on such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures contract. PIMCO will need to consider whether the exposure created under these contracts might exceed the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">applicable limits in managing the Fund, and the limits may constrain the ability to use such contracts. In addition, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">CFTC in October 2020 adopted amendments to its position limits rules that establish certain new and amended </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">position limits for 25 specified physical commodity futures and related options contracts traded on exchanges, other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">futures contracts and related options directly or indirectly linked to such 25 specified contracts, and any OTC </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions that are economically equivalent to the 25 specified contracts. PIMCO will need to consider whether the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exposure created under these contracts might exceed the new and amended limits in anticipation of the applicable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">compliance dates, and the limits may constrain the ability of the Fund to use such contracts. The amendments also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">modify the bona fide hedging exemption for which certain swap dealers are currently eligible, which could limit the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amount of speculative OTC transaction capacity each such swap dealer would have available for the Fund prior to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">applicable compliance date.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Provisions in the Dodd-Frank Act include capital and margin requirements and the mandatory use of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">clearinghouse mechanisms for many OTC derivatives transactions. The CFTC, SEC and other federal regulators have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adopted rules and regulations enacting the provisions of the Dodd-Frank Act. However, swap dealers, major market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">participants and swap counterparties are experiencing, and will continue to experience, new and additional regulations, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements, compliance burdens and associated costs. The Dodd-Frank Act and the rules promulgated thereunder </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may negatively impact the Fund&#8217;s ability to meet its investment objective either through limits or requirements </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">imposed on it or upon its counterparties. In particular, new position limits imposed on the Fund or its counterparties </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may impact its ability to invest in futures, options and swaps in a manner that efficiently meets its investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">objective. New requirements, even if not directly applicable to the Fund, including margin requirements, changes to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the CFTC speculative position limits regime and mandatory clearing, discussed further below in &#8220;Additional Risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Factors in Cleared Derivatives Transactions,&#8221; may increase the cost of the Fund&#8217;s investments and cost of doing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">business, which could adversely affect investors.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Additionally, the U.S. government and the EU have adopted mandatory minimum margin requirements for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bilateral derivatives. Such requirements could increase the amount of margin required to be provided by the Fund in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">connection with its derivatives transactions and, therefore, make derivatives transactions more expensive.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">50</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_51"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Also, in the event of a counterparty&#8217;s (or its affiliate&#8217;s) insolvency, the possibility exists that the Fund&#8217;s ability to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercise remedies, such as the termination of transactions, netting of obligations and realization on collateral, could be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">stayed or eliminated under new special resolution regimes adopted in the United States, the EU and various other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">jurisdictions. Such regimes provide government authorities broad authority to intervene when a financial institution is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">experiencing financial difficulty. In particular, in the EU, governmental authorities could reduce, eliminate, or convert </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to equity the liabilities to the Fund of a counterparty experiencing financial difficulties (sometimes referred to as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;bail in&#8221;).</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Additional Risk Factors in Cleared Derivatives Transactions.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Some types of swaps (including interest rate swaps </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and credit default index swaps on North American and
European indices) are required to be centrally cleared, and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">additional types of swaps may be required to be centrally cleared in the future. In a cleared derivatives
transaction, the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s counterparty is a clearing house, rather than a bank or broker. Since the Fund is not a member of clearing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">houses and only members of a clearing house can participate directly in the clearing house, the Fund will hold cleared </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">derivatives through accounts at clearing members. In cleared derivatives transactions, the Fund will make payments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(including margin payments) to and receive payments from a clearing house through its accounts at clearing members. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Clearing members guarantee performance of their clients&#8217; obligations to the clearing house.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In many ways, centrally cleared derivative arrangements are less favorable to registered funds than bilateral </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">arrangements. For example, the Fund may be required to provide greater amounts of margin for cleared derivatives </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions than for bilateral derivatives transactions. Also, in contrast to bilateral derivatives transactions, following a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">period of notice to the Fund, a clearing member generally can require termination of existing cleared derivatives </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions at any time or increases in margin requirements above the margin that the clearing member required at the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">beginning of a transaction. Clearing houses also have broad rights to increase margin requirements for existing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions or to terminate transactions at any time. Any increase in margin requirements or termination by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">clearing member or the clearing house could interfere with the ability of the Fund to pursue its investment strategy. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Further, any increase in margin requirements by a clearing member could also expose the Fund to greater credit risk to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">its clearing member, because margin for cleared derivatives transactions in excess of clearing house margin </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements typically is held by the clearing member. Also, the Fund is subject to risk if it enters into a derivatives </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction that is required to be cleared (or that PIMCO expects to be cleared), and no clearing member is willing or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">able to clear the transaction on the Fund&#8217;s behalf. While the documentation in place between the Fund and its clearing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">members generally provides that the clearing members will accept for clearing all transactions submitted for clearing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that are within credit limits (specified in advance) for the Fund, the Fund is still subject to the risk that no clearing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">member will be willing or able to clear a transaction. In those cases, the transaction might have to be terminated, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund could lose some or all of the benefit of the transaction, including loss of an increase in the value of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction and/or loss of hedging protection offered by the transaction. In addition, the documentation governing the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relationship between the Fund and the clearing members is developed by the clearing members and generally is less </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">favorable to the Fund than typical bilateral derivatives documentation. For example, this documentation generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">includes a one-way indemnity by the Fund in favor of the clearing member, indemnifying the clearing member against </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">losses it incurs in connection with acting as the Fund&#8217;s clearing member, and the documentation typically does not give </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund any rights to exercise remedies if the clearing member defaults or becomes insolvent.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some types of cleared derivatives are required to be executed on an exchange or on a swap execution facility (a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;SEF&#8221;). A SEF is a trading platform where multiple market participants can execute derivatives by accepting bids and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offers made by multiple other participants in the platform. This execution requirement may make it more difficult and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">costly for funds, such as the Fund, to enter into highly tailored or customized transactions. Trading swaps on a SEF </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may offer certain advantages over traditional bilateral OTC trading, such as ease of execution, price transparency, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">increased liquidity and/or favorable pricing. Execution through a SEF is not, however, without additional costs and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risks, as parties are required to comply with SEF and CFTC rules and regulations, including disclosure and
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">recordkeeping obligations, and SEF rights of inspection, among others. SEFs typically charge fees, and if the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">executes derivatives on a swap execution facility through a broker intermediary, the intermediary may impose fees as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">well. The Fund also may be required to indemnify a SEF, or a broker intermediary who executes swaps on a SEF on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s behalf, against any losses or costs that may be incurred as a result of the Fund&#8217;s transactions on the SEF. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">addition, the Fund may be subject to execution risk if it enters into a derivatives transaction that is required to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cleared, and no clearing member is willing to clear the transaction on the Fund&#8217;s behalf. In that case, the transaction </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">might have to be terminated, and the Fund could lose some or all of the benefit of any increase in the value of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction after the time of the trade.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;">
</div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">51</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_52"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">These and other new rules and regulations could, among other things, further restrict the Fund&#8217;s ability to engage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in, or increase the cost to the Fund of, derivatives transactions, for example, by making some types of derivatives no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">longer available to the Fund, increasing margin or capital requirements, or otherwise limiting liquidity or increasing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction costs. These regulations are relatively new and evolving, so their potential impact on the Fund and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">financial system are not yet known. While the new regulations and the central clearing of some derivatives transactions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are designed to reduce systemic risk (i.e., the risk that the interdependence of large derivatives dealers could cause a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">number of those dealers to suffer liquidity, solvency or other challenges simultaneously), there is no assurance that the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">new clearing mechanisms will achieve that result, and in the meantime, as noted above, central clearing will expose </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund to new kinds of risks and costs.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">A Note on Commodity-Linked Derivatives.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund may seek to gain exposure to the commodity markets by </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investing in commodity-linked derivative
instruments, swap transactions, or index-linked or commodity linked </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">structured notes.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The value of a commodity-linked derivative investment generally is based upon the price movements of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">physical commodity (such as energy, mineral, or agricultural products), a commodity futures contract or commodity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">index, or other economic variable based upon changes in the value of commodities or the commodities markets. Swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions are privately negotiated agreements between the Fund and a counterparty to exchange or swap investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cash flows or assets at specified intervals in the future. The obligations may extend beyond one year. There is no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">central exchange or market for swap transactions and therefore they are less liquid investments than exchange-traded </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments. The Fund bears the risk that the counterparty could default under a swap agreement. See &#8220;Swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Agreements and Options on Swap Agreements&#8221; above for further detail about swap transactions. Further, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may invest in derivative debt instruments with principal and/or coupon payments linked to the value of commodities, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commodity futures contracts or the performance of commodity indices. These are &#8220;commodity-linked&#8221; or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;index-linked&#8221; notes, and are sometimes referred to as &#8220;structured notes&#8221; because the terms of the debt instrument may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be structured by the issuer of the note and the purchaser of the note. See &#8220;Structured Notes&#8221; above for further </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discussion of these notes.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The value of these notes will rise or fall in response to changes in the underlying
commodity or related index of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment. These notes expose the Fund economically to movements in commodity prices. These notes also are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to risks, such as credit, market and interest rate risks, that in general affect the values of debt securities. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Therefore, at the maturity of the note, the Fund may receive more or less principal that it originally invested. The Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">might receive interest payments on the note that are more or less than the stated coupon interest payments.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund&#8217;s investments in commodity-linked instruments may bear on or be limited by the Fund&#8217;s intention to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">qualify as a RIC under the Code. See &#8220;Taxation.&#8221;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Hybrid Instruments</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in &#8220;hybrid&#8221; or indexed securities, which is a type of
potentially high-risk derivative that </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">combines a traditional stock, bond, or commodity with an option or forward contract. Generally, the principal amount, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amount payable upon maturity or redemption, or interest rate of a hybrid is tied (positively or negatively) to the price </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of some commodity, currency or securities index or another interest rate or some other economic factor (each a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;benchmark&#8221;).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The interest rate or (unlike most fixed-income securities) the principal amount payable at maturity of a hybrid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security may be increased or decreased, depending on changes in the value of the benchmark. An example of a hybrid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">could be a bond issued by an oil company that pays a small base level of interest with additional interest that accrues </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in correlation to the extent to which oil prices exceed a certain predetermined level. Such a hybrid instrument would be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a combination of a bond and a call option on oil.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Hybrids can be used as an efficient means of pursuing a variety of investment goals, including currency hedging, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">duration management and increased total return. Hybrids may not bear interest or pay dividends. The value of a hybrid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or its interest rate may be a multiple of a benchmark and, as a result, may be leveraged and move (up or down) more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">steeply and rapidly than the benchmark.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">52</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_53"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">These benchmarks may be sensitive to economic and political events, such as commodity shortages and currency </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">devaluations, which cannot be readily foreseen by the purchaser of a hybrid. Under certain conditions, the redemption </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of a hybrid could be zero. Thus, an investment in a hybrid may entail significant market risks that are not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">associated with a similar investment in a traditional, U.S. dollar-denominated bond that has a fixed principal amount </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and pays a fixed rate or floating rate of interest. The purchase of hybrids also exposes the Fund to the credit risk of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer of the hybrids. These risks may cause significant fluctuations in the net asset value of the Fund.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Certain hybrid instruments may provide exposure to the commodities markets. These are
derivative securities </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">with one or more commodity-linked components that have payment features similar to commodity futures contracts, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commodity options, or similar instruments. Commodity-linked hybrid instruments may be either equity or
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">fixed-income securities and are considered hybrid instruments because they have both security and commodity-like </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">characteristics. A portion of the value of these instruments may be derived from the value of a commodity, futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contract, index or other economic variable.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Certain issuers of structured products such as hybrid instruments may be deemed to be
investment companies, as </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">defined in the 1940 Act. As a result, the Fund&#8217;s investments in these products may be subject to limits applicable to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments in investment companies and may be subject to other restrictions imposed by the 1940 Act. In addition, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s investments in these products may be limited by the Fund&#8217;s intention to qualify as a RIC, and may limit the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s ability to so qualify.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Leverage and Borrowing</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund utilizes leverage through its outstanding auction rate preferred shares of beneficial interest (&#8220;ARPS&#8221;) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and remarketable variable rate munifund term preferred shares of beneficial interest (&#8220;RVMTP Shares&#8221; and, together </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the ARPS and any other preferred shares the Fund may have outstanding, the &#8220;Preferred Shares&#8221;) and the use of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">TOBs. The Fund may obtain additional leverage through reverse repurchase agreements, dollar rolls/buy backs or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrowings, such as through bank loans or commercial paper or other credit facilities. The Fund may also enter into </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions other than those noted above that may give rise to a form of leverage including, among others, futures and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loans of portfolio securities, short sales, when-issued, delayed delivery and forward commitment transactions and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">selling credit default swaps. The Fund may also determine to issue other types of Preferred Shares.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Depending upon market conditions and other factors, the Fund may or may not determine to add leverage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">following an offering to maintain or increase the total amount of leverage (as a percentage of the Fund&#8217;s total assets) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that the Fund currently maintains, taking into account the additional assets raised through the issuance of Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares in such offering. The Fund utilizes certain kinds of leverage, including, without limitation, Preferred Shares and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">TOBs, opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such leverage over </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time and from time to time based on PIMCO&#8217;s assessment of the yield curve environment, interest rate trends, market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conditions and other factors. The Fund may also determine to decrease the leverage it currently maintains by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">redeeming its outstanding Preferred Shares or unwinding TOBs and may or may not determine to replace such
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">leverage through other sources. If the Fund determines to add leverage following an offering, it is not possible to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">predict with accuracy the precise amount of leverage that would be added, in part because it is not possible to predict </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the number of Common Shares that ultimately will be sold in an offering or series of offerings. To the extent that the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund does not add additional leverage following an offering, the Fund&#8217;s total amount of leverage as a percentage of its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">total assets will decrease, which could result in a reduction of investment income available for distribution to Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shareholders.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund&#8217;s net assets attributable to its Preferred Shares and the net proceeds the
Fund obtains from TOBs or </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">other forms of leverage utilized, if any, will be invested in accordance with the Fund&#8217;s investment objective and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">policies as described in the Prospectus and any prospectus supplement. So long as the rate of return, net of applicable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund expenses, on the debt obligations and other investments purchased by the Fund exceeds the dividend rates </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payable on the Preferred Shares together with the costs to the Fund of other leverage it utilizes, the investment of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s assets attributable to leverage will generate more income than will be needed to pay the costs of the leverage. If </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">so, and all other things being equal, the excess may be used to pay higher dividends to Common Shareholders than if </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund were not so leveraged.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">53</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_54"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Regarding the costs associated with the Fund&#8217;s Preferred Shares, the terms of the Fund&#8217;s ARPS provide that they </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would ordinarily pay dividends at a rate set at auctions held every seven days, normally payable on the first business </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">day following the end of the rate period, subject to a maximum applicable rate calculated as a function of the ARPS&#8217; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">then-current rating and a reference interest rate, as described below. However, the weekly auctions for the ARPS, as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">well as auctions for similar preferred shares of other closed-end funds in the U.S., have failed since February 2008, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and the dividend rates on the ARPS since that time have been paid at the maximum applicable rate (i.e. a multiple of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reference rate, which is the applicable &#8220;AA&#8221; Financial Composite Commercial Paper Rate (for a dividend period of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fewer than 184 days) or the applicable Treasury Index Rate (for a dividend period of 184 days or more)). Ratings </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agencies may change their methodologies for evaluating and providing ratings for shares of closed-end funds at any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">time and in their sole discretion, which may affect the rating (if any) of the Fund&#8217;s shares. Fitch Ratings published </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ratings criteria relating to closed-end funds on December 4, 2020, which effectively result in a rating cap of &#8220;AA&#8221; for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">debt and preferred stock issued by all closed-end funds and a rating cap of &#8220;A&#8221; for (i) debt and preferred shares issued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by closed-end funds exposed to emerging market debt, below-investment-grade and unrated debt, structured securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and equity, (ii) and closed-end funds with material exposure to &#8220;BBB&#8221; category rated assets. Fitch does not currently </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rate the Fund&#8217;s ARPS. The long-term rating actions were driven by changes in the updated ratings criteria for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">closed-end funds rather than by any fundamental changes to the Fund&#8217;s credit profile. See &#8220;Description of Capital </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Structure.&#8221; The Fund expects that the ARPS will continue to pay dividends at the maximum applicable rate for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreseeable future and cannot predict whether or when the auction markets for the ARPS may resume normal
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">functioning. See &#8220;Principal Risks of the Fund&#8212;Leverage Risk,&#8221; &#8220;Principal Risks of the Fund&#8212;Additional Risks </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Associated with the Fund&#8217;s Preferred Shares&#8221; and &#8220;Description of Capital Structure&#8221; in the Prospectus for more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Under the 1940 Act, the Fund is not permitted to issue new preferred shares unless
immediately after such </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuance the value of the Fund&#8217;s total net assets (as defined below) is at least 200% of the liquidation value of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">outstanding Preferred Shares and the newly issued preferred shares plus the aggregate amount of any senior securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund representing indebtedness (i.e., such liquidation value plus the aggregate amount of senior securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">representing indebtedness may not exceed 50% of the Fund&#8217;s total net assets). In addition, the Fund is not permitted to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">declare any cash dividend or other distribution on its Common Shares unless, at the time of such declaration, the value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund&#8217;s total net assets satisfies the above-referenced 200% coverage requirement.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may enter into derivatives or other transactions that may provide leverage (other than through the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuance of Preferred Shares or bank borrowing). Rule 18f-4 under the 1940 Act (the &#8220;Derivatives Rule&#8221;) regulates a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">registered investment company's use of derivatives and certain other transactions that create future payment and/or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delivery obligations by the Fund. This new rule became operative in August 2022. The Derivatives Rule prescribes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">specific value-at-risk (&#8220;VAR&#8221;) leverage limits that apply to the Fund (although the Fund in the future could qualify as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a limited derivatives user (as defined in the Derivatives Rule) and would therefore not be subject to all of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements of the Derivatives Rule)). VaR is an estimate of potential losses on an instrument or portfolio over a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">specified time horizon and at a given confidence level. The Fund may apply a relative VaR test or an absolute VaR test </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(if the Fund's derivatives risk manager determines that a designated reference portfolio would not provide an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">appropriate reference portfolio for purposes of the relative VaR test). The limit under the relative VaR test when a fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">has outstanding preferred shares is 250% (or 200% when no preferred shares are outstanding) of the VaR of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">designated reference portfolio, which, very generally, may be a designated unleveraged index or a fund's securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio excluding derivatives. If applicable, the limit under the absolute VaR test when a fund has outstanding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">preferred shares is 25% (or 20% when no preferred shares are outstanding) of the value of a fund's net assets. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Derivatives Rule also generally requires the Fund to appoint a derivatives risk manager, maintain a derivatives risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management program (&#8220;DRMP&#8221;) designed to identify, assess, and reasonably manage the risks associated with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions covered by the rule, and abide by certain board and other reporting obligations and recordkeeping </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements. With respect to reverse repurchase agreements or other similar financing transactions in particular, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Derivatives Rule permits a fund to enter into such transactions if the fund either (i) complies with the asset coverage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements of Section 18 of the 1940 Act, and combines the aggregate amount of indebtedness associated with all </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reverse repurchase agreements and similar financing with the aggregate amount of any other senior securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">representing indebtedness when calculating the relevant asset coverage ratio, or (ii) treats all reverse repurchase </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements and similar financing transactions (including tender option bond financings (&#8220;TOB financings&#8221;)) as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">derivatives transactions for all purposes under the Derivatives Rule. The Fund has adopted procedures for investing in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">derivatives and other transactions in compliance with the Derivatives Rule. Compliance with the Derivatives Rule </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">could adversely affect the value or performance of the Fund. Limits or restrictions applicable to the counterparties or </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">54</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_55"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">issuers, as applicable, with which the Fund may engage in derivative transactions could also limit or prevent the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from using certain instruments.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Leveraging is a speculative technique and there are special risks and costs involved. The Fund cannot assure you </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that its Preferred Shares and any other forms of leverage (such as TOBs), will result in a higher yield on your Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares. When leverage is used, the NAV and market price of the Common Shares and the yield to Common
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shareholders will be more volatile. See &#8220;Principal Risks of the Fund&#8212;Leverage Risk&#8221; in the Prospectus. In addition, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend, interest and other costs and expenses borne by the Fund with respect to its Preferred Shares and its use of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">TOBs or any other forms of leverage are borne by the Common Shareholders (and not by the holders of Preferred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares) and result in a reduction of the NAV of the Common Shares. In addition, because the fees received by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Manager are based on the Fund&#8217;s average daily net asset value (including daily net assets attributable to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any Preferred Shares), the Investment Manager has a financial incentive for the Fund to utilize Preferred Shares, which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may create a conflict of interest between the Investment Manager, on the one hand, and the Common Shareholders, on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the other hand.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund&#8217;s ability to utilize leverage is also limited by asset coverage requirements
and other guidelines imposed </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">by rating agencies that provide ratings for the Preferred Shares, which may be more restrictive than the limitations </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">imposed by the 1940 Act noted above. See &#8220;Description of Capital Structure&#8221; in the Prospectus for more information.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund also may borrow money in order to repurchase its shares or as a temporary measure for extraordinary or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">emergency purposes, including for the payment of dividends or the settlement of securities transactions which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">otherwise might require untimely dispositions of portfolio securities held by the Fund.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Reverse Repurchase Agreements</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may enter into reverse repurchase agreements and economically similar transactions for hedging or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cash management purposes or to add leverage to its portfolio. See the sections &#8220;Use of Leverage&#8221; in the Prospectus </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and &#8220;Leverage and Borrowing&#8221; above. A reverse repurchase agreement involves the sale of a portfolio-eligible security </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the Fund to another party coupled with its agreement to repurchase the instrument at a specified time and price. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Under a reverse repurchase agreement, the Fund continues to be entitled to receive any principal and interest payments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on the underlying security during the term of the agreement. Reverse repurchase agreements involve the risk that the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market value of securities retained by the Fund may decline below the repurchase price of the securities sold by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund which it is obligated to repurchase.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund also may effect simultaneous purchase and sale transactions that are known as
&#8220;sale-buy backs.&#8221; A </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">sale-buy back is similar to a reverse repurchase agreement, except that in a sale-buy back, the counterparty that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchases the security is entitled to receive any principal or interest payments made on the underlying security pending </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">settlement of the Fund&#8217;s repurchase of the underlying security.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Mortgage Dollar Rolls/Buy Backs</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A mortgage dollar roll/buy back is similar to a reverse repurchase agreement in certain respects. In a &#8220;dollar roll&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or &#8220;buy back&#8221; transaction, the Fund sells a mortgage-related security, such as a security issued by GNMA, to a dealer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and simultaneously agrees to repurchase a similar security (but not the same security) in the future at a pre-determined </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price. A &#8220;dollar roll/buy back&#8221; can be viewed, like a reverse repurchase agreement, as a collateralized borrowing in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which the Fund pledges a mortgage-related security to a dealer to obtain cash. However, unlike reverse repurchase </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements, the dealer with which the Fund enters into a dollar roll/buy back transaction is not obligated to return the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">same securities as those originally sold by the Fund, but only securities which are &#8220;substantially identical.&#8221; To be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">considered &#8220;substantially identical,&#8221; the securities returned to the Fund generally must: (1) be collateralized by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">same types of underlying mortgages; (2) be issued by the same agency and be part of the same program; (3) have a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">similar original stated maturity; (4) have identical net coupon rates; (5) have similar market yields (and therefore </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price); and (6) satisfy &#8220;good delivery&#8221; requirements, meaning that the aggregate principal amounts of the securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delivered and received back must be within a specified percentage of the initial amount delivered.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">It is possible that changing government regulation may affect the Fund&#8217;s use of these strategies. Changes in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulatory requirements concerning margin for certain types of financing transactions, such as repurchase agreements, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reverse repurchase agreements, and securities lending and borrowing, could impact the Fund&#8217;s ability to utilize these </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment strategies and techniques.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;">
</div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">55</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_56"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Repurchase Agreements</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For the purposes of maintaining liquidity and achieving income, the Fund may enter into
repurchase agreements </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">with domestic commercial banks or registered broker-dealers. A repurchase agreement is a contract under which the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund would acquire a security for a relatively short period (usually not more than one week) subject to the obligation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the seller to repurchase and the Fund to resell such security at a fixed time and price (representing the Fund&#8217;s cost </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">plus interest). In the case of repurchase agreements with broker-dealers, the value of the underlying securities (or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">collateral) will be at least equal at all times to the total amount of the repurchase obligation, including the interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">factor. The Fund bears a risk of loss in the event that the other party to a repurchase agreement defaults on its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations and the Fund is delayed or prevented from exercising its rights to dispose of the collateral securities. This </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risk includes the risk of procedural costs or delays in addition to a loss on the securities if their value should fall below </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">their repurchase price.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Credit-Linked Trust Certificates</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in credit-linked trust certificates, which are investments in a limited purpose trust or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">vehicle which, in turn, invests in a basket of derivative instruments, such as credit default swaps, total return swaps, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">basis swaps, interest rate swaps and other derivative transactions or securities, in order to provide exposure to the high </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">yield or another debt securities market. For instance, the Fund may invest in credit-linked trust certificates as a cash </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management tool in order to gain exposure to the high yield markets and/or to remain fully invested when more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">traditional income-producing securities are not available, including during the period when the net proceeds of this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offering and any future offering are being invested.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Like an investment in a bond, investments in these credit-linked trust certificates
represent the right to receive </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">periodic income payments (in the form of distributions) and payment of principal at the end of the term of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certificate. However, these payments are conditioned on the Fund&#8217;s receipt of payments from, and the Fund&#8217;s potential </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations to, the counterparties to the derivative instruments and other securities in which the trust invests. For </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments over the term of the swap agreements provided that no event of default has occurred with respect to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">trust would be obligated to pay to the counterparty the par (or other agreed-upon value) of the referenced debt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligation. This, in turn, would reduce the amount of income and principal that the Fund would receive as an investor </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the trust. Please see &#8220;Derivatives Instruments&#8212;Swap Agreements and Options on Swap Agreements&#8221; in this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statement of Additional Information for additional information about credit default swaps. The Fund&#8217;s investments in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">these instruments are indirectly subject to the risks associated with derivative instruments, including, among others, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and management risk. It is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expected that the issuers which issue credit-linked trust certificates will constitute &#8220;private&#8221; investment companies, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exempt from registration under the 1940 Act. Therefore, the certificates will be subject to the risks described under </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Other Investment Companies,&#8221; and will not be subject to applicable investment limitations and other regulation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">imposed by the 1940 Act (although the Fund will remain subject to such limitations and regulation, including with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">respect to its investments in the certificates). Although the issuers are typically private investment companies, they </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally are not actively managed such as a &#8220;hedge fund&#8221; might be. It is also expected that the certificates will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exempt from registration under the Securities Act. Accordingly, there may be no established trading market for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certificates and they may constitute illiquid investments. See &#8220;Principal Risks of the Fund&#8212;Liquidity Risk&#8221; in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Prospectus. If market quotations are not readily available for the certificates, they will be valued by the Fund at fair </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value as determined by the Board or persons acting at its direction. See &#8220;Net Asset Value&#8221; in the Prospectus.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">When-Issued, Delayed Delivery and Forward Commitment Transactions</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis. These </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions may be known as to-be-announced (&#8220;TBA&#8221;) transactions. Typically, no income accrues on securities the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund has committed to purchase prior to the time delivery of the securities is made.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">When purchasing a security on a when-issued, delayed delivery or forward
commitment basis, the Fund assumes </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fluctuations into account when determining its net asset value. Because the Fund is not required to pay for the security </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">until the delivery date, these risks are in addition to the risks associated with the Fund&#8217;s other investments. If the other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">56</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_57"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Fund remains substantially fully invested at a time when when-issued, delayed delivery or forward commitment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchases are outstanding, the purchases may result in a form of leverage.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">When the Fund has sold a security on a when-issued, delayed delivery or
forward commitment basis, the Fund </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security&#8217;s price </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">appreciates in value such that the security&#8217;s price is above the agreed-upon price on the settlement date.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may dispose of or renegotiate a transaction after it is entered into, and may purchase or sell </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital gain or loss. There is no percentage limitation on the extent to which the Fund may purchase or sell securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on a when-issued, delayed delivery or forward commitment basis.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may purchase or sell securities, including mortgage-backed securities, in the TBA
market. A TBA </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase commitment is a security that is purchased or sold for a fixed price and the underlying securities are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">announced at a future date. Financial Industry Regulatory Authority rules include mandatory margin requirements for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the TBA market that require the Fund to post collateral in connection with its TBA transactions. There is no similar </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirement applicable to the Fund&#8217;s TBA counterparties. The required collateralization of TBA trades could increase </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the cost of TBA transactions to the Fund and impose added operational complexity.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Common Stocks</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Common stock includes common shares and other common equity interests issued by public or private issuers. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The value of a company&#8217;s stock may fall as a result of factors directly relating to that company, such as decisions made </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by its management or lower demand for the company&#8217;s products or services. A stock&#8217;s value also may fall because of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">factors affecting not just the company, but also companies in the same industry or in a number of different industries, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such as increases in production costs. The value of a company&#8217;s stock also may be affected by changes in financial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets that are relatively unrelated to the company or its industry, such as changes in interest rates or currency </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange rates. In addition, a company&#8217;s stock generally pays dividends only after the company invests in its own </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">business and makes required payments to holders of its bonds, other debt and preferred securities. For this reason, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of a company&#8217;s stock will usually react more strongly than its bonds, other debt and preferred securities to actual </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or perceived changes in the company&#8217;s financial condition or prospects. Stocks of smaller companies may be more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">vulnerable to adverse developments than those of larger companies. Stocks of companies that the portfolio managers </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">believe are fast-growing may trade at a higher multiple of current earnings than other stocks. The value of such stocks </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be more sensitive to changes in current or expected earnings than the values of other stocks.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Short Sales</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may make short sales of securities (i) to offset potential declines in long positions in similar securities, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(ii) to increase the flexibility of the Fund, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">part of its overall portfolio management strategies involving the use of derivative instruments. A short sale is a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">decline or will underperform relative to other securities held in the Fund&#8217;s portfolio.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">When the Fund makes a short sale, it will often borrow the security sold short and deliver it to the broker-dealer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">In connection with short sales of securities, the Fund may pay a fee to borrow securities or maintain an arrangement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with a broker to borrow securities and is often obligated to pay over any accrued interest and dividends on such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrowed securities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the price of the security sold short increases between the time of the short sale and
the time that the Fund </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">replaces the borrowed security, the Fund will incur a loss; conversely, if the price declines, the Fund will realize a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">successful use of short selling may be adversely affected by imperfect correlation between movements in the price of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the security sold short and the securities being hedged.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">57</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_58"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest pursuant to a risk arbitrage strategy to take advantage of a perceived relationship between </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the value of two securities. Frequently, a risk arbitrage strategy involves the short sale of a security.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may engage in short sales &#8220;against the box.&#8221; A short sale is &#8220;against the box&#8221; to the extent that the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contemporaneously owns, or has the right to obtain at no added cost, securities identical to those sold short. The Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will engage in short selling to the extent permitted by the federal securities laws and rules and interpretations </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">thereunder. To the extent the Fund engages in short selling in foreign (non-U.S.) jurisdictions, the Fund will do so to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the extent permitted by the laws and regulations of such jurisdiction.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may also engage in so-called &#8220;naked&#8221; short sales (i.e., short sales that are not &#8220;against the box&#8221;), in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which case the Fund&#8217;s losses could theoretically be unlimited, in cases where the Fund is unable for whatever reason to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">close out its short position. The Fund has the flexibility to engage in short selling to the extent permitted by the 1940 </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Act and rules and interpretations thereunder.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Illiquid Investments</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest without limitation in illiquid investments. PIMCO may be subject to significant delays in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disposing of illiquid investments, and transactions in illiquid investments may entail registration expenses and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transaction costs that are higher than those for transactions in liquid investments. The term &#8220;illiquid investments&#8221; for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">this purpose means any investment that the Fund reasonably expects cannot be sold or disposed of in current market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment. Depending on the circumstances, illiquid investments may be considered to include, among other things, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain purchased OTC options and the assets used to cover certain written OTC options, securities or other liquid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets being used as cover for such options, repurchase agreements with maturities in excess of seven days, certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loan participation interests, fixed time deposits which are not subject to prepayment or provide for withdrawal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">penalties upon prepayment (other than overnight deposits), securities that are subject to legal or contractual restrictions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on resale (such as privately placed debt securities), and other securities which legally or in PIMCO&#8217;s opinion may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deemed illiquid (not including securities issued pursuant to Rule 144A under the Securities Act), and certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commercial paper determined to be liquid.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Rule 144A Securities</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in securities that have not been registered for public sale, but that are eligible for purchase </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and sale pursuant to Rule 144A under the 1933 Act. Rule 144A permits certain qualified institutional buyers, such as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund, to trade in privately placed securities that have not been registered for sale under the 1933 Act. Rule 144A </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Securities may be deemed illiquid, although the Fund may determine that certain Rule 144A Securities are liquid.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Other Investment Companies</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">To the extent consistent with its investment objective and strategy and permissible under the 1940 Act, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may invest in securities of open- or closed-end investment companies (including those advised by PIMCO), including, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">without limitation, domestic and foreign exchange-traded funds (&#8220;ETFs&#8221;). The Fund treats its investments in other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment companies that invest primarily in types of securities in which the Fund may invest directly as investments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in such types of securities for purposes of the Fund&#8217;s investment policies (e.g., the Fund&#8217;s investment in an investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">company that invests primarily in debt securities will be treated by the Fund as an investment in a debt security).</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In general, under the 1940 Act, an investment company such as the Fund may not (i) own more than 3% of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">outstanding voting securities of any one registered investment company, (ii) invest more than 5% of its total assets in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the securities of any single registered investment company or (iii) invest more than 10% of its total assets in securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of other registered investment companies (the &#8220;3-5-10% Limitations&#8221;). The SEC adopted new Rule 12d1-4 under the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">1940 Act, which provides an exemption to permit acquiring funds to invest in the securities of other registered </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment companies in excess of the 3-5-10% Limitations, subject to certain conditions. In connection with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adoption of Rule 12d1-4, the SEC adopted certain other regulatory changes and took other actions related to the ability </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund to invest in another investment company in excess of the 3-5-10% Limitations. The Fund may invest in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other investment companies (including those advised by PIMCO) to gain broad market or sector exposure or for cash </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management purposes, including during periods when it has large amounts of uninvested cash (such as the period </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shortly after the Fund receives the proceeds of the offering of its Common Shares) or when PIMCO believes share </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prices of other investment companies offer attractive values. The Fund may invest in certain money market funds </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">58</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_59"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">and/or short-term bond funds (&#8220;Central Funds&#8221;), to the extent permitted by the 1940 Act, the rules thereunder or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exemptive relief therefrom. The Central Funds are registered investment companies created for use by certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">registered investment companies advised by PIMCO in connection with their cash management activities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As a shareholder in an investment company, the Fund will bear its ratable share of that investment company&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expenses and would remain subject to payment of the Fund&#8217;s management fees and other expenses with respect to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets so invested. Common Shareholders would therefore be subject to duplicative expenses to the extent the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invests in other investment companies. In addition, the securities of other investment companies may also be leveraged </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and will therefore be subject to the same leverage risks described in the Prospectus and herein.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Private Placements</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A private placement involves the sale of securities that have not been registered under the Securities Act, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relevant provisions of applicable non-U.S. law, to certain institutional and qualified individual purchasers, such as the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund. In addition to the general risks to which all securities are subject, securities received in a private placement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally are subject to strict restrictions on resale, and there may be no liquid secondary market or ready purchaser </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for such securities. Therefore, the Fund may be unable to dispose of such securities when it desires to do so, or at the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">most favorable time or price. Private placements may also raise valuation risks.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Fund Operations</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Operational Risk.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">An investment in the Fund, like any fund, involves operational risks arising
from factors such </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">events, any of which could have a material adverse effect on the Fund. While the Fund seeks to minimize such events </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">through controls and oversight, there may still be failures that could cause losses to the Fund.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Market Disruptions
Risk.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund is subject to investment and operational risks associated with financial, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">economic and other
global market developments and disruptions, including those arising from war, terrorism, market </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">manipulation, government interventions, defaults and shutdowns, political
changes or diplomatic developments, public </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">health emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disasters, which can all negatively impact the securities markets, interest rates, secondary trading, ratings, credit risk, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">inflation, deflation, other factors relating to the Fund&#8217;s investments or the Investment Manager&#8217;s operations and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of an investment in the Fund, its distributions and its returns. These events can also impair the technology and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other operational systems upon which the Fund&#8217;s service providers, including PIMCO as the Fund&#8217;s investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adviser, rely, and could otherwise disrupt the Fund&#8217;s service providers&#8217; ability to fulfill their obligations to the Fund.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For example, the rapid and global spread of a highly contagious novel coronavirus respiratory disease, designated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">COVID-19 has caused volatility, severe market dislocations and liquidity constraints in many markets, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets for the securities the Fund holds, and may adversely affect the Fund&#8217;s investments and operations.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Cybersecurity Risk.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">As the use of technology has become more prevalent in the course of business,
the Fund is </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">potentially more susceptible to operational and information security risks resulting from breaches in cyber security. A </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">breach in cyber security refers to both intentional and unintentional cyber events from outside threat actors or internal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">resources that may, among other things, cause the Fund to lose proprietary information, suffer data corruption and/or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">destruction, lose operational capacity, result in the unauthorized release or other misuse of confidential information, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">otherwise disrupt normal business operations. Cyber security breaches may involve unauthorized access to the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">digital information systems (e.g., through &#8220;hacking&#8221; or malicious software coding), and may come from multiple </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sources, including outside attacks such as denial-of-service attacks (i.e., efforts to make network services unavailable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to intended users) or cyber extortion, including exfiltration of data held for ransom and/or &#8220;ransomware&#8221; attacks that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">renders systems inoperable until ransom is paid, or insider actions. In addition, cyber security breaches involving the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s third party service providers (including but not limited to advisers, sub-advisers, administrators, transfer agents, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">vendors, suppliers, custodians, distributors and other third parties), trading counterparties or issuers in which the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invests can also subject the Fund to many of the same risks associated with direct cyber security breaches or extortion </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of company data. Moreover, cyber security breaches involving trading counterparties or issuers in which the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invests could adversely impact such counterparties or issuers and cause the Fund&#8217;s investment to lose value. Cyber </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security failures or breaches may result in financial losses to the Fund and its shareholders. These failures or breaches </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may also result in disruptions to business operations, potentially resulting in financial losses; interference with the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">59</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_60"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Fund&#8217;s ability to calculate its NAV, process shareholder transactions or otherwise transact business with shareholders; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; third-party claims </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in litigation; reputational damage; reimbursement or other compensation costs; additional compliance and cyber </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">attempt to prevent any cyber incidents in the future.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Like with operational risk in general, the Fund has established risk management systems and
business continuity </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">plans designed to reduce the risks associated with cyber security. However, there are inherent limitations in these plans </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and systems, including that certain risks may not have been identified, in large part because different or unknown </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">threats may emerge in the future. As such, there is no guarantee that such efforts will succeed, especially because the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund does not directly control the cyber security systems of issuers in which the Fund may invest, trading
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">counterparties or third-party service providers to the Fund. Such entities have experienced cyber attacks and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">attempts to gain unauthorized access to systems from time to time, and there is no guarantee that efforts to prevent or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mitigate the effects of such attacks or other attempts to gain unauthorized access will be successful. There is also a risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that cyber security breaches may not be detected. The Fund and its shareholders could be negatively impacted as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">result.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Portfolio Turnover</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A change in the securities held by the Fund and reinvestment of the proceeds is known as
&#8220;portfolio turnover.&#8221; </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO manages the Fund without regard generally to restrictions on portfolio turnover. Trading in fixed-income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities does not generally involve the payment of brokerage commissions, but does involve indirect transaction </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">costs. Trading in equity securities involves the payment of brokerage commissions, which are transaction costs paid by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund. The use of futures contracts may involve the payment of commissions to futures commission merchants. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">High portfolio turnover (e.g., greater than 100%) involves correspondingly greater expenses to the Fund, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other securities. The higher the rate of portfolio turnover of the Fund, the higher these transaction costs borne by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund generally will be. Such sales may result in realization of taxable capital gains (including short-term capital gains </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which are taxed when distributed to shareholders who are individuals at ordinary income tax rates). See &#8220;Taxation.&#8221;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The portfolio turnover rate of the Fund is calculated by dividing (a) the lesser of purchases or sales of portfolio </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities for the particular fiscal year by (b) the monthly average of the value of the portfolio securities owned by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund during the particular fiscal year. In calculating the rate of portfolio turnover, there is excluded from both (a) and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(b) all derivatives and all securities, including options, whose maturities or expiration dates at the time of acquisition </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">were one year or less. Proceeds from short sales and assets used to cover short positions undertaken are also excluded </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from both (a) and (b). For the fiscal year ended December 31, 2022, the Fund&#8217;s portfolio turnover rate was [ ]%. For </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the fiscal year ended December 31, 2021, the Fund&#8217;s portfolio turnover rate was 13%. For the fiscal year ended </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">December 31, 2020, the Fund&#8217;s portfolio turnover rate was 20%.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Warrants to Purchase Securities</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in or acquire warrants to purchase equity or fixed-income securities. Warrants are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments that give the holder the right, but not the obligation, to buy a security directly from an issuer at a specific </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price for a specific period of time. Changes in the value of a warrant do not necessarily correspond to changes in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of its underlying security. The price of a warrant may be more volatile than the price of its underlying security, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and a warrant may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holder to dividends or voting rights with respect to the underlying security, do not represent any rights in the assets of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the issuing company and are subject to the risk that the issuer-counterparty may fail to honor its obligations. A warrant </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">than other types of investments. Bonds with warrants attached to purchase equity securities have many characteristics </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of convertible bonds and their prices may, to some degree, reflect the performance of the underlying stock. Bonds also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be issued with warrants attached to purchase additional fixed-income securities at the same coupon rate. A decline </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in interest rates would permit the Fund to buy additional bonds at the favorable rate or to sell the warrants at a profit. If </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rates rise, the warrants would generally expire with no value.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may from time to time use non-standard warrants, including low exercise price
warrants or low exercise </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">price options (&#8220;LEPOs&#8221;), to gain exposure to issuers in certain countries. LEPOs are different from standard warrants </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in that they do not give their holders the right to receive a security of the issuer upon exercise. Rather, LEPOs pay the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">60</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_61"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">holder the difference in price of the underlying security between the date the LEPO was purchased and the date it is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sold. Additionally, LEPOs entail the same risks as other OTC derivatives, including the risks that the counterparty or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer of the LEPO may not be able to fulfill its obligations, that the holder and counterparty or issuer may disagree as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the meaning or application of contractual terms, or that the instrument may not perform as expected. Furthermore, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">while LEPOs may be listed on an exchange, there is no guarantee that a liquid market will exist or that the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">counterparty or issuer of a LEPO will be willing to repurchase such instrument when the Fund wishes to sell it.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Loans of Portfolio Securities</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Subject to certain conditions described in the Prospectus and below, the Fund may make secured loans of its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio securities to brokers, dealers and other financial institutions amounting to no more than one-third of its total </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets. The risks in lending portfolio securities, as with other extensions of credit, include possible delay in recovery of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the securities or possible loss of rights in the collateral should the borrowers (which typically include broker-dealers </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and other financial services companies) fail financially. However, such loans will be made only to borrowers that are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">believed by PIMCO to be of satisfactory credit standing. Securities loans are made to broker-dealers pursuant to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements requiring that loans be continuously secured by collateral consisting of U.S. government securities, cash or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cash equivalents (negotiable certificates of deposit, bankers&#8217; acceptances or letters of credit) maintained on a daily </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mark-to-market basis in an amount at least equal at all times to the market value of the securities lent. The borrower </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pays to the Fund, as the lender, an amount equal to any dividends or interest received on the securities lent.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest only the cash collateral received in interest-bearing, short-term securities or receive a fee </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from the borrower. In the case of cash collateral, the Fund typically pays a rebate to the lender. Although voting rights </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or rights to consent with respect to the loaned securities pass to the borrower, the Fund, as the lender, retains the right </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to call the loans and obtain the return of the securities loaned at any time on reasonable notice, and it will do so in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">order that the securities may be voted by the Fund if the holders of such securities are asked to vote upon or consent to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">matters materially affecting the investment. The Fund may also call such loans in order to sell the securities involved. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund&#8217;s performance will continue to reflect changes in the value of the securities loaned and will also reflect the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">receipt of either interest, through investment of cash collateral by the Fund in permissible investments, or a fee, if the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">collateral is U.S. government securities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Regulatory Risk</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Financial entities, such as investment companies and investment advisers, are generally subject to extensive </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government regulation and intervention. Government regulation and/or intervention may change the way the Fund is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulated, affect the expenses incurred directly by the Fund and the value of its investments, and limit and/or preclude </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s ability to achieve its investment objective. Government regulation may change frequently and may have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">significant adverse consequences. Moreover, government regulation may have unpredictable and unintended effects. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Many of the changes required by the Dodd-Frank Act could materially impact the profitability of the Fund and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of assets they hold, expose the Fund to additional costs, require changes to investment practices, and adversely </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affect the Fund&#8217;s ability to pay dividends. For example, the Volcker Rule&#8217;s restrictions on proprietary trading have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">negatively impacted fixed-income market making capacity, which resulted in reduced liquidity in certain fixed-income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets. Other regulations, such as the Risk Retention Rules, have increased costs for certain securitization </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions. Additional legislative or regulatory actions to address perceived liquidity or other issues in fixed-income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets generally, or in particular markets such as the municipal securities market, may alter or impair the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability to pursue its investment objective or utilize certain investment strategies and techniques. While there continues </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to be uncertainty about the full impact of these and other regulatory changes, it is the case that the Fund will be subject </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to a more complex regulatory framework, and may incur additional costs to comply with new requirements as well as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to monitor for compliance in the future.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Actions by governmental entities may also impact certain instruments in which the Fund
invests. For example, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain instruments in which the Fund may invest rely in some fashion upon the London Interbank Offered Rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;LIBOR&#8221;). LIBOR is an average interest rate, determined by the ICE Benchmark Administration that banks charge </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">one another for the use of short-term money. On July 27, 2017, the Chief Executive of the Financial Conduct Authority </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;FCA&#8221;), the United Kingdom&#8217;s financial regulatory body and regulator of LIBOR, announced that after 2021 it would </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cease its active encouragement of banks to provide the quotations needed to sustain LIBOR due to the absence of an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">active market for interbank unsecured lending and other reasons. On March 5, 2021, the FCA publicly announced that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">all U.S. Dollar LIBOR settings will either cease to be provided by any administrator or will no longer be representative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(i) immediately after December 31, 2021 for one-week and two-month U.S. Dollar LIBOR settings and (ii) </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">61</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_62"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">immediately after June 30, 2023 for the remaining U.S. Dollar LIBOR settings. As of January 1, 2022, as a result of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">supervisory guidance from U.S. regulators, some U.S. regulated entities have ceased entering into new LIBOR </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts with limited exceptions. There remains uncertainty regarding the future utilization of LIBOR and the nature </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of any replacement rate (e.g., the Secured Overnight Financing Rate (&#8220;SOFR&#8221;), which is intended to replace </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. dollar LIBOR and measures the cost of overnight borrowings through repurchase agreement transactions
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">collateralized with U.S. Treasury securities). Any potential effects of the transition away from LIBOR on the Fund or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on certain instruments in which the Fund invests can be difficult to ascertain, and they may vary depending on factors </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that include, but are not limited to: (i) existing fallback or termination provisions in individual contracts and (ii) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">whether, how, and when industry participants develop and adopt new reference rates and fallbacks for both legacy and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">new products and instruments. For example, certain of the Fund&#8217;s investments may involve individual contracts that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have no existing fallback provision or language that contemplates the discontinuation of LIBOR, and those
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments could experience increased volatility or reduced liquidity as a result of the transition process. In addition, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rate provisions included in such contracts may need to be renegotiated in contemplation of the transition away </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from LIBOR. On March 15, 2022, the Adjustable Interest Rate (LIBOR) Act was signed into law. This law provides a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">statutory fallback mechanism on a nationwide basis to replace LIBOR with a benchmark rate that is selected by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Board of Governors of the Federal Reserve System and based on SOFR for certain contracts that reference LIBOR and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contain no, or insufficient, fallback provisions. It is expected that implementing regulations in respect of the law will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">follow. The transition of investments from LIBOR to a replacement rate as a result of amendment, application of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">existing fallbacks, statutory requirements or otherwise may also result in a reduction in the value of certain instruments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">held by the Fund or a reduction in the effectiveness of related Fund transactions such as hedges. Any such effects of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the transition away from LIBOR, as well as other unforeseen effects, could result in losses to the Fund.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Additionally, alteration of the terms of a debt instrument or a modification of the terms of other types of contracts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to replace LIBOR or another interbank offered rate (&#8220;IBOR&#8221;) with a new reference rate could result in a taxable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange and the realization of income and gain/loss for U.S. federal income tax purposes. The IRS has issued final </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulations regarding the tax consequences of the transition from IBOR to a new reference rate in debt instruments and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-debt contracts. Under the final regulations, alteration or modification of the terms of a debt instrument to replace </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">an operative rate that uses a discontinued IBOR with a qualified rate (as defined in the final regulations) including true </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">up payments equalizing the fair market value of contracts before and after such IBOR transition, to add a qualified rate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as a fallback rate to a contract whose operative rate uses a discontinued IBOR or to replace a fallback rate that uses a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discontinued IBOR with a qualified rate would not be taxable. The IRS may provide additional guidance, with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">potential retroactive effect.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In October 2020, the SEC adopted a final rule related to the use of TOBs, derivatives,
reverse repurchase </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements and certain other transactions by registered investment companies that rescinded and withdrew the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guidance of the SEC and its staff regarding asset segregation and cover transactions reflected in the Fund&#8217;s asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">segregation and cover practices discussed herein. The final rule removes asset segregation and coverage requirements </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">related to derivatives. The final rule requires the Fund to trade derivatives and other transactions that create future </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">VaR leverage limits and derivatives risk management program and reporting requirements. Generally, these
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements apply unless the Fund satisfies a &#8220;limited derivatives users&#8221; exception that is included in the final rule.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As of August 19, 2022, these requirements may limit the ability of the Fund to use TOBs, derivatives, reverse </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">repurchase agreements, when-issued, delayed delivery and forward commitment transactions, unfunded commitment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements and similar financing transactions as part of its investment strategies. These requirements may increase the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cost of the Fund&#8217;s investments and cost of doing business, which could adversely affect investors. PIMCO cannot </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">predict the effects of these regulations on the Fund. PIMCO intends to monitor developments and seek to manage the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund in a manner consistent with achieving the Fund&#8217;s investment objective, but there can be no assurance that it will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be successful in doing so.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The
new rule sets forth </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements for good faith determinations of fair value, as well as for the performance of fair value determinations, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including related oversight and reporting obligations. The new rule also defines &#8220;readily available market quotations&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for purposes of the definition of &#8220;value&#8221; under the 1940 Act, and the SEC noted that this definition will apply in all </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contexts under the 1940 Act. The SEC adopted an 18-month transition period beginning from the effective date for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">both the new rule and the associated new recordkeeping requirements. The impact of the new rule on the Fund is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">uncertain at this time.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">62</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_63"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In May 2022, the SEC proposed amendments to a current rule governing fund naming conventions. In general, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the current rule requires funds with certain types of names to adopt a policy to invest at least 80% of their assets in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">type of investment suggested by the name. The proposed amendments would expand the scope of the current rule in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">number of ways that would result in an expansion of the types of fund names that would require the fund to adopt an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">80% investment policy under the rule. Additionally, the proposed amendments would modify the circumstances under </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which a fund may deviate from its 80% investment policy and address the use and valuation of derivatives instruments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for purposes of the rule. The proposal&#8217;s impact on the Fund will not be known unless and until any final rulemaking is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adopted.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Governmental and quasi-governmental authorities and regulators throughout the world have in
the past responded </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to major economic disruptions with a variety of significant fiscal and monetary policy changes, including but not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limited to, direct capital infusions into companies, new monetary programs and dramatically lower interest rates. For </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">example, in response to the outbreak of COVID-19, Congress has approved stimulus intended to offset the severity and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">duration of the adverse economic effects of COVID-19 and related disruptions in economic and business activity. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Many central banks across Europe, Asia and elsewhere have similarly announced and/or adopted economic relief </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">packages. The introduction and adoption of these packages could cause market disruption and volatility. In addition, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the end of any such program could cause market downturns, disruptions and volatility, particularly if markets view the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ending as premature.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">CSDR Related Risk</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The European Union has adopted a settlement discipline regime under Regulation (EU) No 909/2014 and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Settlement Discipline RTS as they may be modified from time to time (&#8220;CSDR&#8221;), which will have phased compliance </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dates. It aims to reduce the number of settlement fails that occur in EEA central securities depositories (&#8220;CSDs&#8221;) and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">address settlement fails where they occur. The key elements of the regime are: (i) mandatory buy-ins-if a settlement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fail continues for a specified period of time after the intended settlement date, a buy-in process must be initiated to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">effect the settlement; (ii) cash penalties-EEA CSDs are required to impose cash penalties on participants that cause </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">settlement fails and distribute these to receiving participants; and (iii) allocations and confirmations-EEA investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">firms are required to take measures to prevent settlement fails, including putting in place arrangements with their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">professional clients to communicate securities allocations and transaction confirmations. These requirements apply to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions in transferable securities (e.g., shares and bonds), money market instruments, units in funds and emission </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">allowances that are to be settled via an EEA CSD and, in the case of cash penalties and buy-in requirements only, are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">admitted to trading or traded on an EEA trading venue or cleared by an EEA central counterparty.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The implementation of the CSDR settlement discipline regime for funds that enter into in-scope transactions may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">result in increased operational and compliance costs being borne directly or indirectly by the Fund. CSDR may also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affect liquidity and increase trading costs associated with relevant securities. If in-scope transactions are subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">additional expenses and penalties as a consequence of the CSDR settlement discipline regime, such expenses and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">penalties may be charged to the relevant Fund depending upon their characterization under the Fund&#8217;s Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Management Agreement.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Participation on Creditors Committees</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Generally, when the Fund holds bonds or other similar fixed-income securities of an issuer,
the Fund becomes a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">creditor of the issuer. As a creditor of an issuer, the Fund may be subject to challenges related to the securities that it </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holds, either in connection with the bankruptcy of the issuer or in connection with another action brought by other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">creditors of the issuer, shareholders of the issuer or the issuer itself (collectively, &#8220;restructuring transactions&#8221;). </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Although under no obligation to do so, PIMCO, as adviser to the Fund, may from time to time have an opportunity to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consider, on behalf of the Fund and other similarly situated clients, negotiating or otherwise participating in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">restructuring of the Fund&#8217;s portfolio investment or the issuer of such investment. PIMCO, in its judgment and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discretion and based on the considerations deemed by PIMCO to be relevant, may believe that it is in the best interests </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund to negotiate or otherwise participate in a restructuring transaction. Accordingly, and subject to applicable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">procedures approved by the Board, the Fund may from time to time participate on committees formed by creditors to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">negotiate with the management of financially troubled issuers of securities held by the Fund. Such participation may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject the Fund to expenses such as legal fees and may make the Fund an &#8220;insider&#8221; of the issuer for purposes of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">federal securities laws, and therefore may restrict the Fund&#8217;s ability to trade in or acquire additional positions in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particular security when it might otherwise desire to do so. Participation by the Fund on such committees also may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expose the Fund to potential liabilities under the federal bankruptcy laws or other laws governing the rights of </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">63</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_64"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">creditors and debtors. Similarly, subject to the above-mentioned procedures, PIMCO may actively participate in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bankruptcy court and related proceedings on behalf of the Fund in order to protect the Fund&#8217;s interests in connection </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with a restructuring transaction, and PIMCO may cause the Fund to enter into an agreement reasonably indemnifying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">third parties or advancing from the Fund&#8217;s assets any legal fees or other costs to third parties, including parties </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">involved in or assisting the Fund with a restructuring transaction, such as trustees, servicers and other third parties. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Further, PIMCO has the general authority, subject to the above-mentioned procedures, to represent the Fund on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">creditors&#8217; committees (or similar committees) or otherwise in connection with the restructuring of an issuer&#8217;s debt and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally with respect to challenges related to the securities held by the Fund relating to the bankruptcy of an issuer or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in connection with another action brought by other creditors of the issuer, shareholders of the issuer or the issuer itself. </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Short-Term Investments / Temporary Defensive Strategies</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In attempting to respond to adverse market, economic, political, or other conditions, as determined by PIMCO, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">when PIMCO deems it appropriate to do so, the Fund may invest up to 100% of its net assets in investment grade debt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, including high quality, short-term debt instruments, credit-linked trust certificates and/or index futures </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts or similar derivative instruments. Such investments may prevent the Fund from achieving its investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">objective.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Subsidiaries and Affiliates</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may execute its strategy by investing through one or more subsidiaries. The Fund reserves the right to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">establish additional subsidiaries through which the Fund may execute its strategy. The Fund will treat a subsidiary&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets as assets of the Fund for purposes of determining compliance with various provisions of the 1940 Act applicable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the Fund, including those relating to investment policies (Section 8), capital structure and leverage (Section 18) and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affiliated transactions and custody (Section 17).</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO has received exemptive relief from the SEC that will permit the Fund to, if it
determines to rely on the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">exemptive relief, among other things, co-invest with certain other persons, including certain affiliates of PIMCO and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain public or private funds managed by PIMCO and its affiliates, subject to certain terms and conditions.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Tax Consequences</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The requirements for qualification as a RIC under Subchapter M of the Code may limit the extent to which the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may invest in certain positions and transactions described above and the Fund&#8217;s investment in certain positions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and transactions described above may limit the Fund&#8217;s ability to qualify as such.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, the Fund&#8217;s utilization of certain investment instruments
may alter the amount, timing and character of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s income, and, in turn, of the Fund&#8217;s distributions to its shareholders, relative to other means of
achieving </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">similar investment exposure. In certain circumstances, the Fund may be required to sell assets in order to meet RIC </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distribution requirements even when investment considerations make such sales otherwise undesirable. For more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information concerning these requirements and the taxation of the Fund&#8217;s investments, see &#8220;Taxation&#8221; below.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">INVESTMENT RESTRICTIONS</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Fundamental Investment Restrictions</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Unless otherwise indicated, the investment restrictions set forth below are each a
fundamental policy of the Fund </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">that may not be changed without the approval of the holders of a majority of the outstanding Common Shares and any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">outstanding preferred shares of beneficial interest (including Preferred Shares) voting together as a single class, and of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the holders of a majority of any outstanding preferred shares of beneficial interest (including Preferred Shares) voting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as a separate class. The Fund may not:</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div>
<div style="float:left;line-height:12pt;margin-left:12.34pt;text-align:left;width:451.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Concentrate its investments in a particular &#8220;industry,&#8221; as that term is
used in the Investment Company Act of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">1940, as amended, and as interpreted, modified, or otherwise permitted by regulatory authority having </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">jurisdiction, from time to time.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:12.34pt;text-align:left;width:451.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">With respect to 75% of the Fund&#8217;s total assets, purchase the securities of any
issuer, except securities issued or </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">guaranteed by the U.S. Government or any of its agencies or instrumentalities or securities issued by other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment companies, if, as a result, (i) more than 5% of the Fund&#8217;s total assets would be invested in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities of that issuer, or (ii) the Fund would hold more than 10% of the outstanding voting securities of that </font></div> </div> <div style="clear:both;position:relative;">
</div> </div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">64</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_65"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-left:24pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer. For the purpose of this restriction, each state and each separate political subdivision, agency, authority or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrumentality of such state, each multi-state agency or authority, and each obligor, if any, is treated as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">separate issuer of municipal bonds.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div>
<div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(3)</font></div>
<div style="float:left;line-height:12pt;margin-left:12.34pt;text-align:left;width:451.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Purchase or sell real estate, although it may purchase securities (including
municipal bonds) secured by real </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">estate or interests therein, or securities issued by companies which invest in real estate, or interests therein.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(4)</font></div>
<div style="float:left;line-height:12pt;margin-left:12.34pt;text-align:left;width:451.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Purchase or sell commodities or commodities contracts or oil, gas or mineral
programs. This restriction shall </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">not prohibit the Fund, as described in the Prospectus, from purchasing, selling or entering into futures contracts, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">options on futures contracts, forward contracts, or any interest rate, securities-related or other hedging
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrument, including swap agreements and other derivative instruments, subject to compliance with any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">applicable provisions of the federal securities or commodities laws.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
</div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(5)</font></div>
<div style="float:left;line-height:12pt;margin-left:12.34pt;text-align:left;width:451.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Borrow money or issue any senior security, except to the extent permitted under the
Investment Company Act </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of 1940, as amended, and as interpreted, modified, or otherwise permitted by regulatory authority having </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">jurisdiction, from time to time.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(6)</font></div>
<div style="float:left;line-height:12pt;margin-left:12.34pt;text-align:left;width:451.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Make loans, except to the extent permitted under the Investment Company Act of 1940,
as amended, and as </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(7)</font></div>
<div style="float:left;line-height:12pt;margin-left:12.34pt;text-align:left;width:451.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Act as an underwriter of securities of other issuers, except to the extent that in
connection with the disposition </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of portfolio securities, it may be deemed to be an underwriter under the federal securities laws.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(8) </font></div>
<div style="float:left;line-height:12pt;margin-left:12.34pt;text-align:left;width:451.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Make an investment if, at the time of such investment, the Fund has invested less
than 80% of its &#8220;assets&#8221; (as </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">that term is defined in Rule 35d-1 under the Investment Company Act of 1940, as amended) in investments the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income from which is, in the opinion of bond counsel to the issuer (or on the basis of other authority believes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by PIMCO to be reliable), exempt from federal income tax (not including, for these purposes, the federal
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">alternative minimum tax).</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Other Information Regarding Investment Restrictions</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Subject to the Fund&#8217;s self-imposed limitations, if any, as they may be amended from time to time, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interprets its policies with respect to leverage and borrowing, issuing senior securities and lending to permit such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">activities as may be lawful for the Fund, to the full extent permitted by the 1940 Act or by exemption from the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provisions therefrom pursuant to exemptive order of the SEC.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Currently, under the 1940 Act, the Fund may generally not lend money or property to any
person, directly or </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">indirectly, if such person controls or is under common control with the Fund, except for a loan from the Fund to a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">company that owns all of the outstanding securities of the Fund, except directors&#8217; and qualifying shares.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For purposes of the foregoing, &#8220;majority of the outstanding,&#8221; when used with respect to particular shares of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund (whether voting together as a single class or voting as separate classes), means (i) 67% or more of such shares </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">present at a meeting, if the holders of more than 50% of such shares are present or represented by proxy, or (ii) more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">than 50% of such shares, whichever is less.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Unless otherwise indicated, all limitations applicable to the Fund&#8217;s investments (as
stated above and elsewhere in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">this Statement of Additional Information or in the Prospectus) apply only at the time a transaction is entered into. Any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subsequent change in a rating assigned by any rating service to a security (or, if unrated, deemed by PIMCO to be of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">comparable quality), or change in the percentage of the Fund&#8217;s assets invested in certain securities or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments, or change in the average maturity or duration of the Fund&#8217;s investment portfolio, resulting from market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fluctuations or other changes in the Fund&#8217;s total assets will not require the Fund to dispose of an investment. In the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">event that rating agencies assign different ratings to the same security, PIMCO will determine which rating it believes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">best reflects the security&#8217;s quality and risk at that time, which may be the higher of the several assigned ratings.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Under the 1940 Act, a &#8220;senior security&#8221; does not include any promissory note or evidence of indebtedness where </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such loan is for temporary purposes only and in an amount not exceeding 5% of the value of the total assets of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer at the time the loan is made. A loan is presumed to be for temporary purposes if it is repaid within sixty days </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and is not extended or renewed.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For purposes of applying the terms of the Fund&#8217;s policy in paragraph (1) above (the
&#8220;industry concentration </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">policy&#8221;), the Fund would be deemed to &#8220;concentrate&#8221; its investments in a particular industry if it invested more than
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">25% of its total assets in that industry. For purposes of the industry concentration policy, PIMCO will, on behalf of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund, make reasonable determinations as to the appropriate industry classification to assign to each security or </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">65</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_66"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">instrument in which the Fund invests. The definition of what constitutes a particular &#8220;industry&#8221; is an evolving one, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particularly for industries or sectors within industries that are new or are undergoing rapid development. Some </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities could reasonably fall within more than one industry category. The Fund&#8217;s industry concentration policy does </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not preclude it from focusing investments in issuers in a group of related industrial sectors (such as different types of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">utilities). For purposes of the industry concentration policy, a foreign government is considered to be an industry, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">although currency positions are not considered to be an investment in a foreign government for these purposes. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Mortgage-related or ABS that are issued or guaranteed as to principal or interest by the U.S. Government or its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agencies or instrumentalities are not subject to the Fund&#8217;s industry concentration policy, by virtue of the exclusion </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from that test available to all U.S. government securities. Similarly, tax-exempt municipal bonds issued by states, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">municipalities and other political subdivisions, agencies, authorities and instrumentalities of states and multi-state </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agencies and authorities and repurchase agreements collateralized by any of the foregoing obligations are not subject </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the Fund&#8217;s industry concentration policy. The policy will also be interpreted to give broad authority to the Fund as to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">how to classify issuers within or among industries.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">To the extent that an underlying investment company in which the Fund invests has adopted a
policy to </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">concentrate its investments in a particular industry, the Fund will, to the extent practicable, take such underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment company&#8217;s concentration policy into consideration for purposes of the Fund&#8217;s own industry concentration </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">policy.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For purposes of the Fund&#8217;s investment policies and restrictions, the Fund may value
derivative instruments at </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">market value, notional value or full exposure value (i.e., the sum of the notional amount for the contract plus the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market value), or any combination of the foregoing (e.g., notional value for purposes of calculating the numerator and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market value for purposes of calculating the denominator for compliance with a particular policy or restriction). For </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">example, the Fund may value credit default swaps at full exposure value for purposes of the Fund&#8217;s credit quality </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guidelines because such value in general better reflects the Fund&#8217;s actual economic exposure during the term of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit default swap agreement. As a result, the Fund may, at times, have notional exposure to an asset class (before </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">netting) that is greater or lesser than the stated limit or restriction noted in the Fund&#8217;s Prospectus. In this context, both </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the notional amount and the market value may be positive or negative depending on whether the Fund is selling or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">buying protection through the credit default swap. The manner in which certain securities or other instruments are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">valued by the Fund for purposes of applying investment policies and restrictions may differ from the manner in which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">those investments are valued by other types of investors.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">From time to time, the Fund may voluntarily participate in actions (for example, rights
offerings, conversion </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">privileges, exchange offers, credit event settlements, etc.) where the issuer or counterparty offers securities or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments to holders or counterparties, such as the Fund, and the acquisition is determined to be beneficial to Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders (&#8220;Voluntary Action&#8221;). Notwithstanding any percentage investment limitation listed under this &#8220;Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Restrictions&#8221; section or any percentage investment limitation of the 1940 Act or rules thereunder, if the Fund has the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">opportunity to acquire a permitted security or instrument through a Voluntary Action, and the Fund will exceed a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">percentage investment limitation following the acquisition, it will not constitute a violation if, prior to the receipt of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities or instruments and after announcement of the offering, the Fund sells an offsetting amount of assets that are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to the investment limitation in question at least equal to the value of the securities or instruments to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">acquired.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Unless otherwise indicated, all percentage limitations on Fund investments (as stated
throughout this Statement of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Additional Information or in the Prospectus) that are not: (i) specifically included in this &#8220;Investment Restrictions&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">section; or (ii) imposed by the 1940 Act, rules thereunder, the Code or related regulations (the &#8220;Elective Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Restrictions&#8221;), will apply only at the time of investment unless the acquisition is a Voluntary Action. The percentage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limitations and absolute prohibitions with respect to Elective Investment Restrictions are not applicable to the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">acquisition of securities or instruments through a Voluntary Action.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may engage in roll-timing strategies where the Fund seeks to extend the expiration
or maturity of a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">position, such as a forward contract, futures contract or TBA transaction, on an underlying asset by closing out the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">position before expiration and contemporaneously opening a new position with respect to the same underlying asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that has substantially similar terms except for a later expiration date. Such &#8220;rolls&#8221; enable the Fund to maintain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">continuous investment exposure to an underlying asset beyond the expiration of the initial position without delivery of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the underlying asset. Similarly, as certain standardized swap agreements transition from OTC trading to mandatory </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange-trading and clearing due to the implementation of Dodd-Frank Act regulatory requirements, the Fund may </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">66</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_67"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">&#8220;roll&#8221; an existing OTC swap agreement by closing out the position before expiration and contemporaneously entering </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">into a new exchange-traded and cleared swap agreement on the same underlying asset with substantially similar terms </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">except for a later expiration date. These types of new positions opened contemporaneous with the closing of an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">existing position on the same underlying asset with substantially similar terms are collectively referred to as &#8220;Roll </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Transactions.&#8221; Elective Investment Restrictions (defined in the preceding paragraph), which normally apply at the time </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of investment, do not apply to Roll Transactions (although Elective Investment Restrictions will apply to the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entry into the initial position). In addition and notwithstanding the foregoing, for purposes of this policy, those </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Non-Fundamental Investment Restrictions that are considered Elective Investment Restrictions for purposes of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">policy on Voluntary Actions (described in the preceding paragraph) are also Elective Investment Restrictions for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purposes of this policy on Roll Transactions. The Fund will test for compliance with Elective Investment Restrictions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">at the time of the Fund&#8217;s initial entry into a position, but the percentage limitations and absolute prohibitions set forth </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the Elective Investment Restrictions are not applicable to the Fund&#8217;s subsequent acquisition of securities or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments through a Roll Transaction.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">Management of the Fund</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Trustees and Officers</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The business of the Fund is managed under the direction of the Board. Subject to the provisions of the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Amended and Restated Agreement and Declaration of Trust, as may be amended from time to time (the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Declaration&#8221;), its Amended and Restated Bylaws, as may be amended from time to time (the &#8220;Bylaws&#8221;), and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Massachusetts law, the Board has all powers necessary and convenient to carry out this responsibility, including the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">election and removal of the Fund&#8217;s officers. At the Board meetings held on June 15-16, 2022, the Board appointed Ms. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Kathleen A. McCartney as a Class II Trustee, effective July 1, 2022. The Board concluded that Ms. McCartney is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">qualified to serve as an Independent Trustee.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Board Leadership Structure.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> The Board is currently composed of eight
Trustees, six of whom are not </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;interested persons&#8221; (within the meaning of Section 2(a)(19) of the 1940 Act) of the Fund or of the Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Manager (the &#8220;Independent Trustees&#8221;), which represents 75% of the Trustees that are Independent Trustees.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">An Independent Trustee serves as Chair of the Board and is selected by a vote of the majority of the Independent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustees. The Chair of the Board presides at meetings of the Board and acts as a liaison with service providers, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">officers, attorneys and other Trustees generally between meetings, and performs such other functions as may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requested by the Board from time to time.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Board meets regularly four times each year to discuss and consider matters concerning the Fund, and also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holds special meetings to address matters arising between regular meetings. The Independent Trustees regularly meet </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">outside the presence of management and are advised by independent legal counsel. Regular meetings generally take </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">place in-person; other meetings may take place in-person or by telephone.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Board has established five standing Committees to facilitate the Trustees&#8217; oversight of the management of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund: the Audit Oversight Committee, the Governance and Nominating Committee, the Valuation Oversight
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Committee, the Contracts Committee and the Performance Committee. The functions and role of each Committee are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">described below under &#8220;Committees of the Board of Trustees.&#8221; The membership of each Committee (other than the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Performance Committee) consists of only the Independent Trustees. The Performance Committee consists of all&nbsp;of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustees. The Independent Trustees believe that participation on each Committee allows them to participate in the full </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">range of the Board&#8217;s oversight duties.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Board reviews its leadership structure periodically and has determined that this leadership structure, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including an Independent Chair, a supermajority of Independent Trustees and Committee membership limited to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Independent Trustees (with the exception of the Performance Committee), is appropriate in light of the characteristics </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and circumstances of the Fund. In reaching this conclusion, the Board considered, among other things, the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">predominant role of the Investment Manager in the day-to-day management of Fund affairs, the extent to which the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">work of the Board is conducted through the Committees, the number of funds in the fund complex overseen by
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">members, the variety of asset classes those funds include, the assets of the Fund and the other funds in the fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">complex and the management, distribution and other service arrangements of the Fund and such other funds. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Board also believes that its structure, including the presence of two Trustees who are&nbsp;or have been executives with the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">67</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_68"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Investment Manager or Investment Manager-affiliated entities, facilitates an efficient flow of information concerning </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the management of the Fund to the Independent Trustees.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Risk Oversight</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">. The Fund has retained the Investment Manager to
provide investment advisory services and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">administrative services. Accordingly, the Investment Manager is immediately responsible for the management of risks </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that may arise from Fund investments and operations. Some employees of the Investment Manager serve as the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">officers, including the Fund&#8217;s principal executive officer and principal financial and accounting officer, chief </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">compliance officer and chief legal officer. The Investment Manager and the Fund&#8217;s other service providers have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adopted policies, processes, and procedures to identify, assess and manage different types of risks associated with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s activities. The Board oversees the performance of these functions by the Investment Manager and the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other service providers, both directly and through the Committee structure it has established. The Board receives from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Investment Manager a wide range of reports, both on a regular and as-needed basis, relating to the Fund&#8217;s activities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and to the actual and potential risks of the Fund. These include reports on investment and market risks, custody and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">valuation of Fund assets, compliance with applicable laws, and the Fund&#8217;s financial accounting and reporting.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, the Board meets periodically with the portfolio managers of the Fund or their
delegates to receive </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">reports regarding the portfolio management of the Fund and its performance, including its investment risks. In the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">course of these meetings and discussions with the Investment Manager, the Board has emphasized to the Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Manager the importance of maintaining vigorous risk management programs and procedures.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, the Board has appointed a Chief Compliance Officer (&#8220;CCO&#8221;). The CCO oversees the development </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of compliance policies and procedures that are reasonably designed to minimize the risk of violations of the federal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities laws (&#8220;Compliance Policies&#8221;). The CCO reports directly to the Independent Trustees, interacts with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">individuals within the Investment Manager&#8217;s organization and provides presentations to the Board at its quarterly </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">meetings and an annual report on the application of the Compliance Policies. The Board periodically discusses relevant </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">risks affecting the Fund with the CCO at these meetings. The Board has approved the Compliance Policies and reviews </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the CCO&#8217;s reports. Further, the Board annually reviews the sufficiency of the Compliance Policies, as well as the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">appointment and compensation of the CCO.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Board recognizes that the reports it receives concerning risk management matters are, by their nature, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">typically summaries of the relevant information. Moreover, the Board recognizes that not all risks that may affect the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund can be identified in advance; that it may not be practical or cost-effective to eliminate or mitigate certain risks; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that it may be necessary to bear certain risks (such as investment-related risks) in seeking to achieve the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment objective; and that the processes, procedures and controls employed to address certain risks may be limited </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in their effectiveness.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Trustees and officers of the Fund, their years of birth, the position they hold with the Fund, their term of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">office and length of time served, a description of their principal occupations during the past five years, the number of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolios in the Fund Complex that the Trustee oversees and any other public company directorships held by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee are listed in the two tables immediately following. Except as shown, each Trustee&#8217;s and officer&#8217;s principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">occupation and business experience for the last five years have been with the employer(s) indicated, although in some </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cases the Trustee may have held different positions with such employer(s).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The charts below identify the Trustees and executive officers of the Fund.&nbsp;Unless otherwise indicated, the address </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of all persons below is c/o Pacific Investment Management Company LLC, 1633 Broadway, New York, New York
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">10019.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">Trustees</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div>
<div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:64.35pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name,
Address, </font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Year of Birth </font></div>
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Class</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with the Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Length of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Time Served</font><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(2)</font> <div style="clear:right;"> </div> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:168pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Number of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Portfolios in</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Fund</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Complex</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Overseen by </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Trustee</font><font style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(3)
</font> <div style="clear:right;"> </div> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Other
</font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Directorships</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held by Trustee</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:22.35pt;">
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Independent </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustees</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(1)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:168pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td> </tr> </table> </div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">68</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_69"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:64.35pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name,
Address, </font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Year of Birth </font></div>
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Class</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with the Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Length of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Time Served</font><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(2)</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:168pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Number of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Portfolios in</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Fund</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Complex</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Overseen by </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Trustee</font><font style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(3)
</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Other
</font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Directorships</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held by Trustee</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:246.85pt;">
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deborah A. </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">DeCotis</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1952</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;">&#8195;</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Class II</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Chair of the </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Board, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Chair Since </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">2019,</font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2011</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:168pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Advisory Director, Morgan Stanley &amp; </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Co., Inc. (since 1996); Member, Circle </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Financial Group (since 2009); </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Member, Council on Foreign Relations </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2013); Trustee, Smith College </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2017); Director, Cadre Inc., a </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">manufacturer of safety Equipment </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2022); Director, Watford Re </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2017); and Director, Cadre Inc., </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">a manufacturer of safety equipment </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2022). Formerly, Co-Chair </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Special Projects Committee, Memorial </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Sloan Kettering (2005-2015); Trustee, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Stanford University (2010-2015); </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Principal, LaLoop LLC, a retail </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">accessories company (1999- 2014); </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director, Helena Rubenstein </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Foundation (1997- 2010); and </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director, Armor Holdings </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2002-2010).</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">30</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee, </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Allianz Funds
</font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2011-2021); </font></div>
<div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee, </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Virtus Funds </font></div>
<div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2021-Present).</font></div> </div> </td> </tr>
<tr style="height:78pt;">
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Sarah E. </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Cogan</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1956</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;">&#8195;</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Class II</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2019</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Top;width:168pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Retired Partner, Simpson Thacher &amp; </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Bartlett LLP (law firm) (1989-2018); </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director, Girl Scouts of Greater </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">New York, Inc. (since 2016); and </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee, Natural Resources Defense </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Council, Inc. (since 2013).</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;"> </font></div> </div>
</td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">30</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee, </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Allianz Funds
</font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2019-2021); </font></div>
<div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee, </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Virtus Funds </font></div>
<div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2021-Present).</font></div> </div> </td> </tr>
<tr style="height:207.5pt;">
<td style="background-color:azure;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Joseph B. </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Kittredge, Jr.</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1954</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;">&#8195;</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Class III</font></div> </div> </td>
<td style="background-color:azure;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2020</font></div> </div> </td>
<td style="background-color:azure;padding-top:2.5pt;vertical-align:Top;width:168pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee (since 2019) and Governance </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Committee (since 2020), Vermont Law </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">School (since 2019); Director and </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Treasurer, Center for Reproductive </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Rights (since 2015); Formerly, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director (2013- 2020) and Chair </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2018- 2020), ACLU of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Massachusetts; General Counsel, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Grantham, Mayo, Van Otterloo &amp; Co. </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">LLC (2005-2018) and Partner </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2007-2018); President, GMO Trust </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(institutional mutual funds) </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2009-2018); Chief Executive Officer, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">GMO Trust (2009-2015); and </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">President and Chief Executive Officer, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">GMO Series Trust (platform based </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">mutual funds) (2011-2013).</font></div> </div> </td>
<td style="background-color:azure;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">30</font></div> </div> </td>
<td style="background-color:azure;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee, </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">GMO Trust
</font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2010- 2018); </font></div>
<div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Chairman of </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Board of </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustees,
</font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">GMO Series </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trust (2011- </font></div>
<div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">2018).</font></div> </div> </td> </tr> </table> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">69</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_70"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:64.35pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name,
Address, </font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Year of Birth </font></div>
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Class</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with the Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Length of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Time Served</font><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(2)</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:168pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Number of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Portfolios in</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Fund</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Complex</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Overseen by </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Trustee</font><font style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(3)
</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Other
</font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Directorships</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held by Trustee</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:210.85pt;">
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Kathleen </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">McCartney(4)</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1955</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;">&#8195;</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Class II</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2022</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:168pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">President, Smith College (since 2013); </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director (since 2013) and President </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2020), Five Colleges, Inc., </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">consortium of liberal arts colleges and </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">universities (since 2013); Formerly, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director, American Council on </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Education Board of Directors, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2015-2019); Director, Consortium on </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Financing Higher Education Board of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Directors (2015-2019); Director, edX </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Board of Directors, online course </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">provider (2012-2013); Director, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Bellwether Education Partners Board, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">national nonprofit organization </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2010-2013); Dean, Harvard Graduate </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">School of Education (2006-2013); and </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee, Tufts University (2007-2013).</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">30</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None.</font></div> </div> </td> </tr>
<tr style="height:243.5pt;">
<td style="background-color:#FFFFFF;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Alan </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Rappaport</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1953</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;">&#8195;</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Class I</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2010</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:2.5pt;vertical-align:Top;width:168pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director, Victory Capital Holdings </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Inc., an asset management firm (since </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">2013). Formerly, Adjunct Professor, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">New York University Stern School of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Business (2011-2020); Lecturer, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Stanford University Graduate School </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">of Business (2013-2020); Advisory </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director (formerly Vice Chairman), </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Roundtable Investment Partners </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2009-2018); Member of Board of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Overseers, NYU Langone Medical </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Center (2015-2016); Trustee, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">American Museum of Natural History </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2005-2015); Trustee, NYU Langone </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Medical Center (2007-2015); and Vice </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Chairman (formerly, Chairman and </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">President), U.S. Trust (formerly, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Private Bank of Bank of America, the </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">predecessor entity of U.S. Trust) </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2001-2008).</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">30</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:2.5pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee, </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Allianz Funds
</font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2010-2021); </font></div>
<div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Chairman of </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Board of </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustees,
</font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Virtus </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Closed-End </font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Funds
</font></div> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2021-Present).</font></div> </div> </td> </tr> </table> </div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">70</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_71"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:64.35pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name,
Address, </font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Year of Birth </font></div>
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Class</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with the Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Length of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Time Served</font><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(2)</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:168pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Number of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Portfolios in</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Fund</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Complex</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Overseen by </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Trustee</font><font style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(3)
</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Other
</font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Directorships</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held by Trustee</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:352.35pt;">
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">E. Grace </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vandecruze</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1963</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;">&#8195;</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Class I</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2021</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:168pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Founder and Managing Director, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Grace Global Capital LLC, a strategic </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">advisory firm to the insurance industry </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2006); Director, The Doctors </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Company, a medical malpractice </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">insurance company (since 2020); </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director, Link Logistics REIT, a real </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">estate company (since 2021); Director </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">and Member of the Investment &amp; Risk </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Committee, Resolution Life Group </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Holdings, a global life insurance group </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2021); Director, Wharton </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Graduate Executive Board; Chief </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Financial Officer, ShoulderUp </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Technology Acquisition Corp, a </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">special purpose acquisition company </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since 2021); and Director, Blackstone </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Private Equity Strategies Fund (since </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">2022). Formerly, Director, Resolution </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Holdings (2015-2019). Formerly, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Director and Member of the Audit </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Committee and the Wealth Solutions </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Advisory Committee, M Financial </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Group, a life insurance company </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2015-2021); Chief Financial Officer, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Athena Technology Acquisition Corp, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">a special purpose acquisition company </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2021-2022); and Director, SBLI USA, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">a life insurance company (2015-2018).</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">30</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None.</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Interested Trustees</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;font-weight:bold;position:relative;top:-4.25pt;">(5)</font><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:64.35pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name,
Address,</font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Year of Birth</font></div>
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Class</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with the Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Length of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Time Served</font><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(2)</font> <div style="clear:right;"> </div> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:168pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Number of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Portfolios in</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Fund</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Complex</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Overseen by</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Trustee</font><font style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(3)
</font> <div style="clear:right;"> </div> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Other
</font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Directorships</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held by Trustee</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:166.35pt;">
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">David N. </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Fisher</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1968</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;">&#8195;</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Class III</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2019</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:168pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Managing Director and Co-Head of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">U.S. Global Wealth Management </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Strategic Accounts, PIMCO (since </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">2021); Managing Director and Head of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Traditional Product Strategies, PIMCO </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2015-2021); and Director, Court </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Appointed Special Advocates (CASA) </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">of Orange County, a non-profit </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">organization (since 2015). Formerly, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Global Bond Strategist, PIMCO </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2008-2015); and Managing Director </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">and Head of Global Fixed Income, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">HSBC Global Asset Management </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2005-2008).</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">30</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None.</font></div> </div> </td> </tr> </table> </div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">71</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_72"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:64.35pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name,
Address,</font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Year of Birth</font></div>
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Class</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) </font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with the Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Length of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Time Served</font><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(2)</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:168pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;margin-right:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Number of</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Portfolios in</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Fund</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Complex</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Overseen by</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Trustee</font><font style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(3)
</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:62.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4.5pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Other
</font></div> <div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Directorships</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Held by Trustee</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:220.35pt;">
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">John C. </font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Maney</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1959</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;">&#8195;</font></div> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Class I</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2006</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:168pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Advisor to PIMCO (since June </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">2021); Non-Executive Director and a </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">member of the Compensation </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Committee of PIMCO Europe Ltd </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(since December 2017). Formerly, </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Consultant to PIMCO (January </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">2020-June 2021); Managing Director </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">of Allianz Asset Management of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">America L.P. (2005-2019); member of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">the Management Board and Chief </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Operating Officer of Allianz Asset </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Management of America L.P </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2006-2019); Member of the </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Management Board of Allianz Global </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Investors Fund Management LLC </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2007-2014) and Managing Director of </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Allianz Global Investors Fund </font></div> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Management LLC (2011-2014).</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;margin-right:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">30</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:62.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None.</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div>
<div style="line-height:12.0pt;margin-left:30pt;margin-top:-12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Independent Trustees&#8221; are those Trustees who are not &#8220;interested
persons&#8221; (as defined in Section 2(a)(19) of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the 1940 Act).</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Under the Fund&#8217;s Declaration of Trust, a Trustee serves until his or her
death, retirement, removal, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">disqualification, resignation or replacement. In accordance with the Fund&#8217;s Declaration of Trust (see </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Anti-Takeover and Other Provisions in the Declaration of Trust and Bylaws&#8221;), the Common and/or Preferred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shareholders of the Fund, as applicable, elect Trustees to fill the vacancies of Trustees whose terms expire at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">each annual meeting of the Fund&#8217;s shareholders.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(3)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The term &#8220;Fund Complex&#8221; as used herein includes the Fund and any other
registered investment company (i) </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">that holds itself out to investors as a related company for purposes of investment and investor services; or (ii) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for which PIMCO or an affiliate of PIMCO serves as primary investment adviser.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(4)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Ms. McCartney was appointed as a Trustee of the Fund effective July 1, 2022.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(5)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Interested Trustees&#8221; are those Trustees treated as &#8220;interested
persons&#8221; (as defined in Section 2(a)(19) of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">1940 Act) of the Fund.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div>
<div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Officers</font><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:20.85pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:108pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name, Address</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Year of Birth</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:74.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:148.8pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office and</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Length of Time Served</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:148.8pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:108.85pt;">
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Eric D. Johnson</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1970</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">President</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2019</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Executive Vice President and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Head of Funds Business Group </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Americas, PIMCO. President, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO-Managed Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Variable Insurance </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trust, PIMCO ETF Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Equity Series, PIMCO Equity </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Series VIT, and PIMCO Flexible </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Real Estate Income Fund.</font></div> </div> </td> </tr> </table> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">72</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_73"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:20.85pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:108pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name, Address</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Year of Birth</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:74.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:148.8pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office and</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Length of Time Served</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:148.8pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:137.85pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Keisha Audain-Pressley</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">2</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1975</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Chief </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Compliance </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Officer</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2018</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Executive Vice President and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deputy Chief Compliance Officer, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO. Chief Compliance </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Officer, PIMCO-Managed Funds, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Funds, PIMCO Variable </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Insurance Trust, PIMCO ETF </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Capital Solutions BDC </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Corp. and PIMCO Flexible Real </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Estate Income Fund.</font></div> </div> </td> </tr>
<tr style="height:161pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Ryan G. Leshaw</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1980</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Chief Legal </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Officer</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2019</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Executive Vice President and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Counsel, PIMCO. Chief </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Legal Officer, PIMCO-Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Flexible Real </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Estate Income Fund and PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Capital Solutions BDC Corp. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Chief Legal Officer and Secretary, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Funds, PIMCO Variable </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Insurance Trust, PIMCO ETF </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trust, PIMCO Equity Series and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Formerly, Associate, Willkie </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Farr &amp; Gallagher LLP.</font></div> </div> </td> </tr>
<tr style="height:101pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Joshua D. Ratner</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">2</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1976</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Vice </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">President</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2019</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Executive Vice President and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Head of Americas Operations, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO. Senior Vice President, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO-Managed Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Variable Insurance </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trust, PIMCO ETF Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Equity Series and PIMCO Equity </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Series VIT.</font></div> </div> </td> </tr>
<tr style="height:108pt;">
<td style="background-color:#FFFFFF;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Peter G. Strelow</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1970</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Vice </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">President</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2019</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Managing Director and Co-Chief </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Operating Officer, PIMCO. Senior </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President, PIMCO-Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">and PIMCO Equity Series VIT. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Formerly, Chief Administrative </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Officer, PIMCO.</font></div> </div> </td> </tr> </table> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">73</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_74"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:20.85pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:108pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name, Address</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Year of Birth</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:74.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:148.8pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office and</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Length of Time Served</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:148.8pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:161.85pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Wu-Kwan Kit</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1981</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President, </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Counsel </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">and Secretary</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2018</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Vice President and Senior </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Counsel, PIMCO. Vice President, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Counsel and Secretary, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO-Managed Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Capital Solutions BDC Corp. and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Flexible Real Estate </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Income Fund. Assistant Secretary, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Funds, PIMCO Variable </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Insurance Trust, PIMCO ETF </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trust, PIMCO Equity Series and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Formerly, Assistant General </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Counsel, VanEck Associates Corp.</font></div> </div> </td> </tr>
<tr style="height:113pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Douglas B. Burrill</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">2</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1980</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2022</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President, PIMCO-Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Capital Solutions BDC </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Corp. and PIMCO Flexible Real </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Estate Income Fund.</font></div> </div> </td> </tr>
<tr style="height:113pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Elizabeth A. Duggan</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1964</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2021</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Executive Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President, PIMCO-Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Capital Solutions BDC </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Corp. and PIMCO Flexible Real </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Estate Income Fund.</font></div> </div> </td> </tr>
<tr style="height:113pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Mark A. Jelic</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1981</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2021</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President, PIMCO-Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Capital Solutions BDC </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Corp. and PIMCO Flexible Real </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Estate Income Fund.</font></div> </div> </td> </tr>
<tr style="height:108pt;">
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Kenneth W. Lee</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1972</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2022</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President, PIMCO-Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Capital Solutions BDC </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Corp. and PIMCO Flexible Real </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Estate Income Fund.</font></div> </div> </td> </tr> </table> </div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">74</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_75"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:20.85pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:108pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name, Address</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">and Year of Birth</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:74.4pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Position(s) Held</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">with Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:148.8pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Term of Office and</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Length of Time Served</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:148.8pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Principal Occupation(s)</font></div> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">During the Past 5 Years</font></div> </div> </div> </td> </tr>
<tr style="height:113.85pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Brian J. Pittluck</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1977</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2020</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President, PIMCO-Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Capital Solutions BDC </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Corp. and PIMCO Flexible Real </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Estate Income Fund.</font></div> </div> </td> </tr>
<tr style="height:113pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Keith A. Werber</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1973</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2022</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Executive Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Vice President, PIMCO-Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Capital Solutions BDC </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Corp. and PIMCO Flexible Real </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Estate Income Fund.</font></div> </div> </td> </tr>
<tr style="height:101pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Bijal Y. Parikh</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1978</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Treasurer</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2021</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Executive Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Treasurer, PIMCO- Managed </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Flexible Real Estate </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Income Fund.</font></div> </div> </td> </tr>
<tr style="height:113pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Erik C. Brown</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">3</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1967</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Assistant </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Treasurer</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2015</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Executive Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Assistant Treasurer, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO-Managed Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Funds, PIMCO Variable Insurance </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trust, PIMCO ETF Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Equity Series, PIMCO Equity </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Series VIT, PIMCO Capital </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Solutions BDC Corp. and PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Flexible Real Estate Income Fund.</font></div> </div> </td> </tr>
<tr style="height:108pt;">
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:108pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Brandon T. Evans</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">1</font>
<div style="clear:right;"> </div> </div> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">1982</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:74.4pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deputy </font></div> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Treasurer</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Since 2022</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:148.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Senior Vice President, PIMCO. </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deputy Treasurer, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Managed Funds. Assistant </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Treasurer, PIMCO Funds, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Variable Insurance Trust, PIMCO </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">ETF Trust, PIMCO Equity Series, </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Equity Series VIT and </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO Flexible Real Estate </font></div> <div style="margin-left:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Income Fund.</font></div> </div> </td> </tr> </table> </div> <div style="line-height:15.0pt;margin-top:4pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;position:relative;top:-3.25pt;">(1)</font></div> <div style="line-height:10.0pt;margin-left:20pt;margin-top:-10pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;">The address of these officers is Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, California </font><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;">92660.</font></div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:7pt;text-align:left;width:6.99pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;position:relative;top:-3.25pt;">(2)</font></div> <div style="float:left;line-height:10pt;margin-left:13.01pt;text-align:left;width:455.00pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;">The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.</font></div> </div> <div style="clear:both;position:relative;">
</div> </div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:7pt;text-align:left;width:6.99pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;position:relative;top:-3.25pt;">(3)</font></div> <div style="float:left;line-height:10pt;margin-left:13.01pt;text-align:left;width:455.00pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;">The address of these officers is Pacific Investment Management Company LLC, 401 Congress Ave., Austin, Texas 78701.</font></div> </div> <div style="clear:both;position:relative;">
</div> </div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Each of the Fund&#8217;s executive officers is an &#8220;interested
person&#8221; of the Fund (as defined in Section 2(a)(19) of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">1940 Act) as a result of his or her position(s) set forth in the table above.</font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">75</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_76"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Trustee Qualifications</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">. The Board has determined that each Trustee is
qualified to serve as such based on several </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">factors (none of which alone is decisive). Each Trustee is knowledgeable about the Fund&#8217;s business and service </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provider arrangements in part because he or she serves as trustee or director to a number of other investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">companies advised by the Investment Manager and/or its affiliates with similar arrangements to that of the Fund. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Among the factors the Board considered when concluding that an individual is qualified to serve on the Board were </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the following: (i) the individual&#8217;s business and professional experience and accomplishments; (ii) the individual&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability to work effectively with other members of the Board; (iii) the individual&#8217;s prior experience, if any, serving on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the boards of public companies (including, where relevant, other investment companies) and other complex enterprises </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and organizations; and (iv) how the individual&#8217;s skills, experiences and attributes would contribute to an appropriate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mix of relevant skills and experience on the Board.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In respect of each current Trustee, the individual&#8217;s substantial professional accomplishments and prior experience, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including, in some cases, in fields related to the operations of the Fund, were a significant factor in the determination </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the Board that the individual is qualified to serve as a Trustee of the Fund. The following is a summary of various </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">qualifications, experiences and skills of each Trustee (in addition to business experience during the past five years set </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">forth in the table above) that contributed to the Board&#8217;s conclusion that an individual is qualified to serve on the Board. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">References to qualifications, experiences and skills are not intended to hold out the Board or individual Trustees as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">having any special expertise or experience, and shall not impose any greater responsibility or liability on any such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">person or on the Board by reason thereof.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Sarah E. Cogan</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Ms. Cogan has substantial legal experience in
the investment management industry, having </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">served as a partner at a large international law firm in the corporate department for over 25 years and as former head of
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the registered funds practice. She has extensive experience in oversight of investment company boards through her </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">experience as counsel to the Independent Trustees of certain PIMCO-Managed Funds and as counsel to other
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">independent trustees, investment companies and asset management firms.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Deborah A. DeCotis</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Ms. DeCotis has substantial senior
executive experience in the investment banking </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">industry, having served as a Managing Director for Morgan Stanley. She has extensive board experience and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">experience in oversight of investment management functions through her experience as a former Director of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Helena Rubenstein Foundation, Stanford Graduate School of Business and Armor Holdings.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">David N. Fisher</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Mr. Fisher has substantial executive
experience in the investment management industry. Mr. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fisher is a Managing Director and Co-Head of U.S. Global Wealth Management Strategic Accounts at PIMCO. In this
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">role, he helps oversee relationships with key distribution partners and develop the firm&#8217;s growth strategy across wealth </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management channels. Prior to taking on this position, Mr. Fisher was Head of Traditional Product Strategies at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO, where he oversaw teams of product strategists covering core and non-core fixed income strategies as well as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the firm&#8217;s suite of equity strategies, was a Global Bond Strategist at PIMCO, and has managed PIMCO&#8217;s Total Return </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Strategy. Because of his familiarity with PIMCO and its affiliates, Mr. Fisher serves as an important information </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">resource for the Independent Trustees and as a facilitator of communication with PIMCO.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Joseph B. Kittredge, Jr.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Mr. Kittredge has substantial
experience in the investment management industry, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">having served for thirteen years as General Counsel to Grantham, Mayo, Van Otterloo &amp; Co. LLC, the adviser to the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">GMO mutual fund complex, and as a Trustee and senior officer for Funds in the GMO complex. Previously, he was a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">partner at a large international law firm. Mr. Kittredge has extensive experience in asset management regulation and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">has provided legal advice to investment company boards, registered funds and their sponsors with respect to a broad </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">range of financial, legal, tax, regulatory and other issues. He also serves as the Audit Oversight Committee&#8217;s Chair and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">has been determined by the Board to be an &#8220;audit committee financial expert.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">John C. Maney</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Mr. Maney has substantial executive and board
experience in the investment management </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">industry. Prior to January 2020, he served in a variety of senior-level positions with investment advisory firms </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affiliated with the Investment Manager, including Allianz Asset Management of America L.P. (the Investment
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Manager&#8217;s U.S. parent company). In addition, Mr. Maney currently provides various services to the Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Manager as a senior advisor. Because of his familiarity with the Investment Manager and affiliated entities, he serves </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as an important information resource for the Independent Trustees and as a facilitator of communication with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Manager and its affiliates.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">76</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_77"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Kathleen A. McCartney</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Ms. McCartney has substantial board
experience, having served on a number of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">nonprofit boards, as trustee of Tufts University, director of the American Council on Education, director of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Consortium on Financing Higher Education, founding board member of edX, and director of the Bellwether Education </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Partners board. She also has substantial senior executive experience as the President of Smith College and director of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Five Colleges, Inc.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">Alan Rappaport</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Mr. Rappaport has substantial senior executive
experience in the financial services industry. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">He formerly served as Chairman and President of the Private Bank of Bank of America and as Vice Chairman of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. Trust and as an Advisory Director of an investment firm.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:4.17%;">E. Grace Vandecruze</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Ms. Vandecruze has substantial senior
executive experience in the financial services </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">industry. She is Founder and Managing Director of Grace Global Capital LLC, a strategic advisory firm to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">insurance industry (since 2006). She has extensive board experience and experience in oversight of investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management and insurance company functions through her experience as a Director and Member of the Audit
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Committee and the Wealth Solutions Advisory Committee, M Financial Group, a life insurance company (2015-2021), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a Director of The Doctors Company, a medical malpractice insurance company (since 2020) and a Director and
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Member of the Investment &amp; Risk Committee, Resolution Life Group Holdings, a global life insurance group (since </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">2021).</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Committees of the Board of Trustees</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Audit Oversight Committee.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Board has established an Audit Oversight Committee, currently consisting of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Mses. DeCotis, Cogan,
McCartney and Vandecruze and Messrs. Kittredge and Rappaport, each of whom is an </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Independent Trustee. Mr. Kittredge is the current Chair of the Fund&#8217;s Audit
Oversight Committee.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Audit Oversight Committee provides oversight with respect to the internal and external accounting and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">auditing procedures of the Fund and, among other things, determines the selection of an independent registered public </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accounting firm for the Fund and considers the scope of the audit, approves all audit and permitted non-audit services </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">proposed to be performed by those auditors on behalf of the Fund and approves non-audit services to be performed by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the auditors for certain affiliates, including PIMCO and entities in a control relationship with PIMCO that provide </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">services to the Fund where the engagement relates directly to the operations and financial reporting of the Fund. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Audit Oversight Committee considers the possible effect of those services on the independence of the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">independent registered public accounting firm. During the fiscal year ended December 31, 2022, the Audit Oversight </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Committee met [ ] times. Each member of the Fund&#8217;s Audit Oversight Committee is &#8220;independent,&#8221; as independence </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for audit committee members is defined in the currently applicable listing standards of the NYSE, on which the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Common Shares of the Fund are listed.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Governance and Nominating
Committee.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Board has established a Governance and Nominating Committee </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">composed solely of Independent Trustees,
currently consisting of Messrs. Kittredge and Rappaport and Mses. Cogan, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">DeCotis, McCartney and Vandecruze. Ms. DeCotis is the current Chair of the Governance and
Nominating Committee. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The primary purposes and responsibilities of the Governance and Nominating Committee are (i) advising and making </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recommendations to the Board on matters concerning Board governance and related Trustee practices, and (ii) the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">screening and nomination of candidates for election to the Board as Independent
Trustees.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The responsibilities of the Governance and Nominating Committee include considering and making </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recommendations to the Fund&#8217;s Board regarding: (1) governance, retirement and other policies, procedures and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">practices relating to the Board and the Trustees; (2) in consultation with the Chair of the Board, matters concerning the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">functions and duties of the Trustees and committees of the Board; (3) the size of the Board and, in consultation with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Chair of the Board, the Board&#8217;s committees and their composition; and (4) Board and committee meeting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">procedures. The Committee will also periodically review and recommend for approval by the Board the structure and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">levels of compensation and any related benefits to be paid or provided by the Fund to the Independent Trustees for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">their services on the Board and any committees on the Board. The Governance and Nominating Committee is
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">responsible for reviewing and recommending qualified candidates to the Board in the event that a position is vacated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or created or when Trustees are to be re-elected. During the fiscal year ended December 31, 2022, the Governance and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Nominating Committee met [ ] times. Each member of the Fund's Governance and Nominating Committee is
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;independent,&#8221; as independence for audit committee members is defined in the currently applicable listing standards of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the NYSE, on which the Common Shares of the Fund are listed.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">77</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_78"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Qualifications, Evaluation and Identification of Trustee/Nominees.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Governance and Nominating Committee </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund requires that Trustee candidates have a college
degree or equivalent business experience. When evaluating </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">candidates, the Governance and Nominating Committee may take into account a wide variety of factors including,
but </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">not limited to: (i) availability and commitment of a candidate to attend meetings and perform his or her responsibilities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on the Board, (ii) relevant industry and related experience, (iii) educational background, (iv) ability, judgment and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expertise and (v) overall diversity of the Board&#8217;s composition. The process of identifying nominees involves the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consideration of candidates recommended by one or more of the following sources: (i) the Fund&#8217;s current Trustees, (ii) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s officers, (iii) the Fund&#8217;s investment adviser, (iv) the Fund&#8217;s shareholders and (v) any other source the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Committee deems to be appropriate. The Governance and Nominating Committee may, but is not required to, retain a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">third-party search firm at the Fund&#8217;s expense to identify potential candidates.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Consideration of Candidates Recommended by
Shareholders.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Governance and Nominating Committee will </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">review and consider nominees recommended by shareholders to
serve as Trustees, provided that the recommending </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder follows the &#8220;Procedures for Shareholders to Submit Nominee Candidates,&#8221; which are set forth as
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Appendix B to the Fund&#8217;s Governance and Nominating Committee Charter and attached as Appendix A to this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statement of Additional Information. Among other requirements, these procedures provide that the recommending </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder must submit any recommendation in writing to the Fund, to the attention of the Fund&#8217;s Secretary, at the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">address of the principal executive offices of the Fund and that such submission must be received at such offices not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">less than 45 days nor more than 75 days prior to the date of the Board or shareholder meeting at which the nominee </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would be elected. Any recommendation must include certain biographical and other information regarding the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">candidate and the recommending shareholder, and must include a written and signed consent of the candidate to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">named as a nominee and to serve as a Trustee if elected. The foregoing description of the requirements is only a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">summary. Please refer to Appendix B to the Governance and Nominating Committee Charter, which is attached to this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statement of Additional Information as Appendix A for details.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Governance and Nominating Committee has full discretion to reject nominees recommended
by shareholders, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and there is no assurance that any such person properly recommended and considered by the Committee will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">nominated for election to the Board of Trustees.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Diversity.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Governance and Nominating Committee takes diversity of a particular nominee and overall </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">diversity of
the Board into account when considering and evaluating nominees for Trustee. The Board has adopted a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">diversity policy and, when considering a nominee&#8217;s and the
Board&#8217;s diversity, the Committee generally considers the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">manner in which each nominee&#8217;s professional experience, education, expertise in matters that are
relevant to the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">oversight of the Fund (e.g., investment management, distribution, accounting, trading, compliance, legal), general </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">leadership experience, and life experience are complementary and, as a whole, contribute to the ability of the Board to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">oversee the Fund.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Valuation Oversight Committee.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Board has established a Valuation Oversight Committee currently consisting </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of Messrs. Kittredge and
Rappaport and Mses. Cogan, DeCotis, McCartney and Vandecruze. Ms. Vandecruze is the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">current Chair of the Valuation Oversight Committee. The Valuation Oversight Committee
has been delegated </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">responsibility by the Board for overseeing determination of the fair value of the Fund&#8217;s portfolio securities and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets. The Valuation Oversight Committee periodically reviews and approves procedures for the fair valuation of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s portfolio securities and periodically reviews, reports and assessments provided by the Manager pursuant to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund's valuation procedures and the Manager's pricing policy. With respect to the fair valuation of portfolio securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for which market quotations are not readily available, the Manager has been designated as &#8220;valuation designee&#8221; for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">each Fund in accordance with Rule 2a-5 under the 1940 Act. Each Fund's Valuation Oversight Committee reports to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Board periodically as to the Committee's activities and oversight of the Manager's administration of the Fund's </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">valuation procedures and the valuation designee's carrying out of its responsibilities under Rule 2a-5. During the fiscal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">year ended December 31, 2022, the Valuation Oversight Committee met [ ] times.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Contracts Committee.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Board has established a Contracts Committee currently consisting of Messrs. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Kittredge and Rappaport
and Mses. Cogan, DeCotis, McCartney and Vandecruze. Ms. Cogan serves as the current </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Chair of the Fund&#8217;s Contracts Committee. The Contracts Committee meets as the
Board deems necessary to review the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">performance of, and the reasonableness of the fees paid to, as applicable, the Fund&#8217;s investment adviser(s) and any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sub-adviser(s), administrators(s) and principal underwriters(s) and to make recommendations to the Board regarding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the approval and continuance of the Fund&#8217;s contractual arrangements for investment advisory, sub-advisory, </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">78</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_79"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">administrative and distribution services, as applicable. During the fiscal year ended December 31, 2022, the Contracts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Committee met [ ] times.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Performance Committee.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Board has established a Performance Committee, currently consisting of Messrs. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Kittredge, Rappaport,
Maney and Fisher and Mses. Cogan, DeCotis, McCartney and Vandecruze. Mr. Rappaport serves </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">as the current Chair of the Performance Committee. The Performance
Committee&#8217;s responsibilities include reviewing </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the performance of the Fund and any changes in investment philosophy, approach and personnel of the Investment
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Manager. During the fiscal year ended December 31, 2022, the Performance Committee met [ ] times.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Securities Ownership</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For each Trustee, the following table discloses the dollar range of equity securities in
the Fund beneficially owned </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the Trustee and, on an aggregate basis, in any registered investment companies overseen by the Trustee within the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund's family of investment companies as of December 31, 2022:</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div>
<div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:66.85pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:120pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name of Trustee</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:180pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Dollar
Range of Equity</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Securities in the Fund</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:180pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:6pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Aggregate Dollar Range of</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Equity Securities in All</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Registered Investment</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Companies Overseen by</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Trustee in Family of</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Investment Companies</font><font style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;position:relative;top:-3.25pt;">(1)</font>
<div style="clear:right;"> </div> </div> </div> </div> </td> </tr>
<tr style="height:17.85pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0.0pt;">Independent Trustees</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:180pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:180pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Sarah E. Cogan</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[None</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Over $100,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deborah A. DeCotis</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Over $100,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Joseph B. Kittredge, Jr.</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$50,001-$100,000</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Over $100,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Kathleen McCartney</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">William B. Ogden, IV</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(3)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$50,001-$100,000</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Over $100,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Alan Rappaport</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$10,001-$50,000</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Over $100,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">E. Grace Vandecruze</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0.0pt;">Interested Trustees</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">David N. Fisher</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Over $100,000</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">John C. Maney</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Over $100,000]</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div> <div style="line-height:12.0pt;margin-left:30pt;margin-top:-12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The term
&#8220;Family of Investment Companies&#8221; as used herein includes the Fund and the following registered </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment companies: PIMCO Access Income Fund, PIMCO Municipal
Income Fund, PIMCO California </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Municipal Income Fund, PIMCO New York Municipal Income Fund, PIMCO Municipal Income Fund II, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO California Municipal Income Fund II, PIMCO New York Municipal Income Fund II, PIMCO </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Municipal
Income Fund III, PIMCO California Municipal Income Fund III, PIMCO New York Municipal </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Income Fund III, PIMCO Corporate &amp; Income Opportunity Fund, PIMCO Corporate
&amp; Income Strategy </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund, PCM Fund, Inc., PIMCO Dynamic Income Fund, PIMCO Dynamic Income Opportunities Fund, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO Access Income Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Global
StocksPLUS&#174; &amp; Income Fund, PIMCO Strategic Income Fund, Inc., PIMCO California Flexible </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Municipal Income Fund, PIMCO Flexible Municipal Income Fund, PIMCO
Flexible Credit Income Fund, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO Energy and Tactical Credit Opportunities Fund, PIMCO Flexible Emerging Markets Income Fund and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">each series of PIMCO Managed Accounts Trust.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div>
<div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Ms. McCartney was appointed as a Trustee of the Fund effective July 1, 2022.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(3)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Mr. Ogden retired from the Board of the Fund, effective December 31,
2022.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">To
the Fund&#8217;s knowledge, the following table provides information regarding each class of securities owned </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">beneficially in an investment adviser or principal
underwriter of the Fund, or a person (other than a registered </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment company) directly or indirectly controlling, controlled by, or under common control with an
investment </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">adviser or principal underwriter of the Fund as of [ ] by Independent Trustees and their immediate family members:</font><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">79</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_80"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:0.0pt;margin-top:6pt;text-align:left;"> </div>
<div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:36.85pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:104.98pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="border-bottom:0.5pt groove #000000;color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name of Trustee</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:76.2pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Name of
Owners</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">and Relations</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">to Trustee</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:76.2pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Company</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:76.2pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Title of
Class</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:76.2pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Value
of</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Securities</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:70.2pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:6pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Percent</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">of Class</font></div> </div> </div> </td> </tr>
<tr style="height:17.85pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Sarah E. Cogan</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;margin-left:0.0pt;"> </font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:70.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deborah A. DeCotis</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:70.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Joseph B. Kittredge, Jr.</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:70.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Kathleen McCartney</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(1)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:70.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">William B. Ogden, IV</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:70.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Alan Rappaport</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:70.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">E. Grace Vandecruze</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(3)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">None</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:76.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:70.2pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div> <div style="line-height:12.0pt;margin-top:-12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:30pt;">Ms.
McCartney was appointed as a Trustee of the Fund effective July 1, 2022.</font></div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Mr. Ogden owns a less than 1% limited liability company interest in PIMCO Global
Credit Opportunity </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Onshore Fund LLC, a PIMCO-sponsored private investment vehicle. Mr. Ogden retired from the Board of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund, effective December 31, 2022.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As of [ ], the Trustees and officers of the Fund as a group owned less than 1% of the outstanding Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As of [ ], to the knowledge of the Fund, the following entities owned beneficially or of
record 5% or more of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s outstanding equity securities. To the knowledge of the Fund, no other person owned beneficially or of record </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">5% or more of the Fund&#8217;s outstanding equity securities on such date.</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div>
<div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:46.85pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:120pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Record/Beneficial Owner</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:180pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Class</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:180pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:6pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Percentage of</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Outstanding Shares</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">of Fund Owned of</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Record</font></div> </div> </div> </td> </tr>
<tr style="height:12.85pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:0.85pt;vertical-align:Top;width:120pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:0.85pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:0.85pt;vertical-align:Top;width:180pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Trustees&#8217; Compensation</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Each of the Independent Trustees serves as a trustee of PIMCO Municipal Income Fund, PIMCO California </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Municipal Income Fund, PIMCO New York Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">California Municipal Income Fund II, PIMCO New York Municipal Income Fund II, PIMCO Municipal Income Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">III, PIMCO California Municipal Income Fund III, PIMCO New York Municipal Income Fund III, PIMCO Access
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Income Fund, PIMCO Corporate &amp; Income Strategy Fund, PIMCO Corporate &amp; Income Opportunity Fund, PIMCO </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Dynamic Income Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II,
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO Global StocksPLUS&#174; &amp; Income Fund, PIMCO Energy and Tactical Credit Opportunities Fund, PCM Fund, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Inc., PIMCO Strategic Income Fund, Inc. and PIMCO Dynamic Income Opportunities Fund, each a closed-end fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for which the Manager serves as investment manager (together with the Fund, the &#8220;PIMCO Closed-End Funds&#8221;), as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">well as PIMCO Flexible Emerging Markets Income Fund, PIMCO Flexible Credit Income Fund, PIMCO California
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Flexible Municipal Income Fund and PIMCO Flexible Municipal Income Fund, each a closed-end investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management company that is operated as an &#8220;interval fund&#8221; for which the Manager serves as investment manager (the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;PIMCO Interval Funds&#8221;) and PIMCO Managed Accounts Trust (&#8220;PMAT&#8221;), an open-end investment management </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">company with multiple series for which the Manager serves as investment adviser and administrator (together with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO Closed-End Funds and the PIMCO Interval Funds, the &#8220;PIMCO-Managed Funds&#8221;).</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Each Independent Trustee receives annual compensation of $250,000 for his or her service on the Boards of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO-Managed Funds, payable quarterly. The Independent Chair of the Boards receives an additional
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">$75,000 per year, payable quarterly. The Audit Oversight Committee Chair receives an additional $35,000 annually, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payable quarterly. The Performance Committee Chair and the Valuation Oversight Committee Chair each receive an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">additional $10,000 annually, payable quarterly. The Contracts Committee Chair receives an additional $25,000 </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">annually, payable quarterly. Trustees are also reimbursed for meeting-related expenses.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">80</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_81"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Each Trustee&#8217;s compensation for his or her service as a Trustee on the Boards of the PIMCO-Managed Funds and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other costs in connection with joint meetings of the funds are allocated among the PIMCO-Managed Funds, as
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">applicable, on the basis of fixed percentages as among PMAT, the PIMCO Interval Funds and the PIMCO Closed-End </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Funds. Trustee compensation and other costs are then further allocated pro rata among the individual funds within each </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">grouping based on each such fund&#8217;s relative net assets.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund has no employees. The Fund&#8217;s officers and Interested Trustees (Messrs.
Fisher and Maney) are </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">compensated by the Manager or its affiliates, as applicable.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The following table sets forth information regarding the compensation received by the Independent Trustees from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund for the fiscal year ended December 31, 2022 for serving as Trustees of the Fund and other funds in the same </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund Complex as the Fund. Each officer and each Trustee who is a director, officer, partner, member or employee of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Investment Manager, or of any entity controlling, controlled by or under common control with the Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Manager, including any Interested Trustee, serves without any compensation from the
Fund.</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:76.85pt;">
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:104.98pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="border-bottom:0.5pt groove #000000;color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name of Trustee</font><font
style="border-bottom:0.5pt groove #000000;color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;margin-left:0.0pt;position:relative;top:-3.25pt;">(2)</font> <div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:95.26pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Aggregate</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Compensation</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">from the Fund</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">for the Fiscal</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Year Ending</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">December 31, 2022</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:95.26pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Pension
or</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Retirement</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Benefits</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Accrued as</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Part of Fund</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Expenses</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:95.26pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:6pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Estimated</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Annual Benefits</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Upon Retirement</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:89.26pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:6pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Total Compensation</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">from the Fund</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Complex Paid to</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">the Trustees for</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">the Calendar</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Year Ended</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">December 31, 2022</font><font
style="color:#000000;font-family:Times New Roman;font-size:5pt;font-weight:bold;position:relative;top:-3.25pt;">(1)</font> <div style="clear:right;"> </div> </div> </div> </div> </td> </tr>
<tr style="height:17.85pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Sarah E. Cogan</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$12,173</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:0.85pt;vertical-align:Top;width:89.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$275,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deborah A. DeCotis</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$14,386</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:89.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$325,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Joseph B. Kittredge, Jr.</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$12,615</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:89.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$285,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Kathleen McCartney</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(3)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$5,436</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:89.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$125,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">William B. Ogden, IV</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$11,509</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:89.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$260,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Alan Rappaport</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$11,509</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:89.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$260,000</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:104.98pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">E. Grace Vandecruze</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(5)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$11,066</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:95.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N/A</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:89.26pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$250,000</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div> <div style="line-height:12.0pt;margin-top:-12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:30pt;">As of
December 31, 2022, the &#8220;Fund Complex&#8221; as used herein included the PIMCO-Managed Funds.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div>
<div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Messrs. Fisher and Maney are Interested Persons of the Fund and do not receive
compensation from the Fund </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">for their services as Trustees.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
</div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(3)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Ms. McCartney became a Trustee of the Fund effective July 1, 2022.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(4)</font></div>
<div style="float:left;line-height:12pt;margin-left:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Mr. Ogden retired from the Board of the Fund, effective December 31,
2022.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Codes of
Ethics</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund and PIMCO have each adopted a code of ethics under Rule
17j-1 of the 1940 Act. These codes permit </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">personnel subject to the codes to invest in securities, including securities that may be purchased or held by the Fund. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The codes of ethics are available on the EDGAR Database on the SEC&#8217;s Internet site at
</font><font style="color:#0000FF;font-family:Times New Roman;font-size:10pt;">http://www.sec.gov</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">, and copies </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be obtained, after paying a duplicating fee, by electronic request at the following email address:
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">publicinfo@sec.gov.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">Investment Manager</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Investment Manager</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO, a Delaware limited liability company, serves as investment manager to the Fund pursuant to an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment management agreement (the &#8220;Investment Management Agreement&#8221;) between PIMCO and the Fund. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO is located at 650 Newport Center Drive, Newport Beach, California 92660. As of [ ], PIMCO had
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">approximately $[ ] trillion of assets under management. As of [ ], PIMCO had $[ ] trillion of third-party assets under </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">81</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_82"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO is a majority owned subsidiary of Allianz Asset Management of America LLC (&#8220;Allianz Asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Management&#8221;) with a minority interest held by Allianz Asset Management U.S. Holding II LLC, a Delaware limited </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">liability company, and by certain current and former officers of PIMCO. Allianz Asset Management was organized as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limited liability company under Delaware law in 2000. Allianz Asset Management of America LP merged with Allianz </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Asset Management, with the latter being the surviving entity, effective January 1, 2023. Following the merger, Allianz </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Asset Management is PIMCO LLC&#8217;s managing member and direct parent entity. Through various holding company </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">structures, Allianz Asset Management is majority owned by Allianz SE. Allianz SE is a European based, multinational </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">insurance and financial services holding company and a publicly traded German company.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The general partner of Allianz Asset Management has substantially delegated
its management and control of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Allianz Asset Management to a Management Board. The Management Board of Allianz Asset Management is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">comprised of Tucker J. Fitzpatrick.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As of the date of this Statement of Additional Information, there are no significant institutional shareholders of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Allianz SE. Absent an SEC exemption or other regulatory relief, the Fund generally is precluded from effecting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">principal transactions with brokers that are deemed to be affiliated persons of the Fund or PIMCO, and the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability to purchase securities being underwritten by an affiliated broker or a syndicate including an affiliated broker is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">subject to restrictions. Similarly, the Fund&#8217;s ability to utilize the affiliated brokers for agency transactions is subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the restrictions of Rule 17e-1 under the&nbsp;1940 Act. PIMCO does not believe that the restrictions on transactions with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affiliated brokers described above will materially adversely affect its ability to provide services to the Fund, the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability to take advantage of market opportunities, or the Fund&#8217;s overall performance.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;text-decoration:underline;">Legal Proceedings</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">. On May 17, 2022, Allianz Global Investors
U.S. LLC (&#8220;AGI U.S.&#8221;) pleaded guilty in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">connection with the proceeding United States of America v. Allianz Global Investors U.S. LLC. AGI U.S. is an indirect
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">subsidiary of Allianz SE. The conduct resulting in the matter described above occurred entirely within AGI U.S. and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">did not involve PIMCO, or any personnel of PIMCO. Nevertheless, because of the disqualifying conduct of AGI U.S., </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">their affiliate, PIMCO would have been disqualified from serving as the investment adviser and as the principal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underwriter, to the Fund in the absence of SEC exemptive relief. PIMCO has received exemptive relief from the SEC </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to permit them to continue serving as investment adviser and principal underwriter for U.S.-registered investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">companies, including the Fund.&nbsp;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Investment Management Agreement</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Pursuant to an investment management agreement between the Investment Manager and the Fund (the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Investment Management Agreement&#8221;), the Fund has agreed to pay the Investment Manager an annual fee, payable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">monthly, in an amount equal to 0.685% of the Fund&#8217;s average daily net asset value (including daily net assets </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">attributable to any Preferred Shares) for the services rendered, for the facilities it provides and for certain expenses </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borne by the Investment Manager pursuant to the Investment Management Agreement. Average daily net asset value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">includes total assets of the Fund (including daily net assets attributable to any Preferred Shares) minus accrued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">liabilities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Pursuant to the Investment Management Agreement, PIMCO shall provide to the Fund investment
guidance and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">policy direction in connection with the management of the Fund, including oral and written research, analysis, advice </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and statistical and economic data and information. In addition, under the terms of the Investment Management </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Agreement, subject to the general supervision of the Board of Trustees, PIMCO shall provide or cause to be furnished </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">all supervisory and administrative and other services reasonably necessary for the operation of the Fund under the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">unified management fee structure, including but not limited to the supervision and coordination of matters relating to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the operation of the Fund, including any necessary coordination among the custodian, transfer agent, dividend </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disbursing agent, and recordkeeping agent (including pricing and valuation of the Fund), accountants, attorneys, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">auction agents and other parties performing services or operational functions for the Fund; the provision of adequate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">personnel, office space, communications facilities, and other facilities necessary for the effective supervision and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">administration of the Fund, as well as the services of a sufficient number of persons competent to perform such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">supervisory and administrative and clerical functions as are necessary for compliance with federal securities laws and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other applicable laws; the maintenance of the books and records of the Fund; the preparation of all federal, state, local </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and foreign tax returns and reports for the Fund; the provision of administrative services to shareholders for the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including the maintenance of a shareholder information telephone number, the provision of certain statistical </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information and performance of the Fund, an internet website (if requested), and maintenance of privacy protection </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">82</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_83"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">systems and procedures; the preparation and filing of such registration statements and other documents with such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">authorities as may be required to register and maintain the listing of the shares of the Fund; the taking of other such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">actions as may be required by applicable law (including establishment and maintenance of a compliance program for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund); and the preparation, filing and distribution of proxy materials, periodic reports to shareholders and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulatory filings.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, under the Investment Management Agreement, PIMCO will procure, at its own
expense, the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">following services, and will bear expenses associated with the following for the Fund: a custodian or custodians for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund to provide for the safekeeping of the Fund&#8217;s assets; a recordkeeping agent to maintain the portfolio accounting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">records for the Fund; a transfer agent for the Fund; a dividend disbursing agent and/or registrar for the Fund; all audits </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the Fund&#8217;s independent public accountant (except fees to auditors associated with satisfying rating agency </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements for Preferred Shares or other securities issued by the Fund and other related requirements in the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">organizational documents); valuation services; maintaining the Fund&#8217;s tax records; all costs and/or fees incident to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">meetings of the Fund&#8217;s shareholders, the preparation, printing and mailing of the Fund&#8217;s prospectuses (although the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund will bear such expenses in connection with the offerings made pursuant to the Prospectus as noted below), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">notices and proxy statements, press releases and reports to its Shareholders, the filing of reports with regulatory bodies, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the maintenance of the Fund&#8217;s existence and qualification to do business, the expense of issuing, redeeming, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">registering and qualifying for sale, common shares with the federal and state securities authorities, and the expense of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">qualifying and listing Shares with any securities exchange or other trading system; legal services (except for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">extraordinary legal expenses); costs of printing certificates representing Shares of the Fund; the Fund&#8217;s pro rata portion </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of its fidelity bond and other insurance premiums; and association membership dues.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund (and not PIMCO) will be responsible for certain fees and expenses
that are not covered by the unified </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">fee under the Investment Management Agreement. These include fees and expenses, including travel expenses, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fees and expenses of legal counsel retained for their benefit, of Trustees who are not officers, employees, partners, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders or members of PIMCO or its subsidiaries or affiliates; the salaries and other compensation or expenses, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including travel expenses, of any of the Fund&#8217;s executive officers and employees, if any, who are not officers, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">directors, shareholders, members, partners or employees of PIMCO or its subsidiaries or affiliates; taxes and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">governmental fees, if any, levied against the Fund; brokerage fees and commissions, and other portfolio transaction </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expenses incurred by or for the Fund (including, without limitation, fees and expenses of outside legal counsel or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">third-party consultants retained in connection with reviewing, negotiating and structuring specialized loan and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments made by the Fund, subject to specific or general authorization by the Fund&#8217;s Board of Trustees (for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">example, so-called &#8220;broken-deal costs&#8221; (e.g., fees, costs, expenses and liabilities, including, for example, due </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">diligence-related fees, costs, expenses and liabilities, with respect to unconsummated investments))); expenses of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s securities lending (if any), including any securities lending agent fees, as governed by a separate securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">lending agreement; costs, including interest expenses, of borrowing money or engaging in other types of leverage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">financing, including, without limitation, through the use by the Fund of TOBs, reverse repurchase agreements, bank </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrowings and credit facilities; costs, including dividend cost and/or interest expenses and other costs (including, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">without limitation, offering and related legal costs, fees to brokers, fees to auction agents, fees to transfer agents, fees </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to ratings agencies and fees to auditors associated with satisfying ratings agency requirements for Preferred Shares or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other securities issued by the Fund and other related requirements in the Fund&#8217;s organizational documents) associated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the Fund&#8217;s issuance, offering, redemption and maintenance of Preferred Shares, commercial paper or other senior </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities for the purpose of incurring leverage; fees and expenses of any underlying funds or other pooled vehicles in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which the Fund invests; dividend and interest expenses on short positions taken by the Fund; organizational and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offering expenses of the Fund, including with respect to share offerings following the Fund&#8217;s initial offering, such as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rights and shelf offerings (including expenses associated with offerings made pursuant to the Prospectus), and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expenses associated with tender offers and other share repurchases and redemptions; extraordinary expenses including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">extraordinary legal expenses as may arise, including expenses incurred in connection with litigation, proceedings, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other claims, and the legal obligations of the Fund to indemnify its Trustees, officers, employees, shareholders, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributors, and agents with respect thereto; and expenses of the Fund which are capitalized in accordance with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally accepted accounting principles.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Because the fees received by the Investment Manager are based on the Fund&#8217;s average
daily net asset value </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(including daily net assets attributable to any Preferred Shares), the Investment Manager has a financial incentive for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund to utilize Preferred Shares, which may create a conflict of interest between the Investment Manager, on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">one hand, and the Common Shareholders, on the other hand.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">83</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_84"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A discussion regarding the basis for the Board&#8217;s most recent continuation of the Investment Management </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Agreement is available in the Fund&#8217;s semi-annual report to shareholders for the six-months ended June 30, 2022. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Pursuant to the Investment Management Agreement, the Fund paid the Investment Manager the following amounts for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the fiscal years ended December 31, 2022, December 31, 2021, and December 31, 2020:</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:14.25pt;">
<td style="background-color:#FFFFFF;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:362.34pt;"> <div style="line-height:9.0pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="border-bottom:0.5pt groove #000000;color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Fiscal Year</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:117.66pt;"> <div style="line-height:9.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4pt;margin-right:1pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Management Fee Paid by Fund</font></div> </div> </div> </td> </tr>
<tr style="height:13.25pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:362.34pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">December 31, 2022</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:117.66pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:4pt;margin-right:1pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:41.67pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:362.34pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">December 31, 2021</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:117.66pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:4pt;margin-right:1pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">7,876,000</font></div> </div> </td> </tr>
<tr style="height:10pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:362.34pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">December 31, 2020</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:117.66pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:4pt;margin-right:1pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">7,756,000</font></div> </div> </td> </tr> </table> </div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO expects to earn a profit on the management fee paid by the Fund. Also, under the
terms of the Investment </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Management Agreement, PIMCO, and not Common Shareholders, would benefit from any price decreases in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">third-party services, including decreases resulting from an increase in net assets.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Certain Terms of the Investment Management Agreement</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Investment Management Agreement was approved by the Trustees of the Fund (including all of the Trustees </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">who are not &#8220;interested persons&#8221; of the Investment Manager). By its terms the Investment Management Agreement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">continues in force with respect to the Fund for an initial one year period, and continues in force from year to year </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">thereafter, but only so long as its continuance is approved at least annually by (i) vote, cast in person at a meeting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">called for that purpose, of a majority of those Trustees who are not &#8220;interested persons&#8221; of the Investment Manager or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund, and (ii) by the full Board of Trustees or the vote of a majority of the outstanding shares of all classes of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund. The Investment Management Agreement automatically terminates on assignment. The Investment Management </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Agreement may be terminated on not less than 60 days&#8217; notice by the Investment Manager to the Fund or by the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the Investment Manager.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Pursuant to the Investment Management Agreement, the Fund has agreed to pay PIMCO an annual management </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fee, payable on a monthly basis, at the annual rate of 0.685% of the Fund&#8217;s average daily &#8220;average daily net asset.&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Average daily net asset value includes total assets of the Fund (including daily net assets attributable to any Preferred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares) minus accrued liabilities.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Because the management fee received by PIMCO from the Fund is based on the average daily net asset value of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund (including daily net assets attributable to any Preferred Shares), PIMCO has a financial incentive for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund to utilize Preferred Shares, which may create a conflict of interest between PIMCO, on the one hand, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Common Shareholders, on the other hand.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Investment Management Agreement provides that neither the Investment Manager nor its members, officers, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">directors or employees shall be subject to any liability for, or any damages, expenses or losses incurred, in connection </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with any act or omission or mistake in judgment connected with or arising out of any services rendered under the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Management Agreement except by reason of willful misfeasance, bad faith or gross negligence in
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">performance of the Investment Manager&#8217;s duties, or by reason of reckless disregard of the Investment Manager&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations and duties under the Investment Management Agreement.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Portfolio Managers</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Other Accounts Managed. The portfolio managers who are jointly and primarily responsible for the day-to-day </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">management of the Fund also manage other registered investment companies, other pooled investment vehicles and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other accounts, as indicated in the table below. The following table identifies, as of December 31, 2022: (i) the number </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of other registered investment companies, pooled investment vehicles and other accounts managed by each portfolio </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">manager (exclusive of the Fund); and (ii) the total assets of such other companies, vehicles and accounts, and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">number and total assets of such companies, vehicles and accounts with respect to which the management fee is based </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on performance. The information includes amounts managed by a team, committee, or other group that includes the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio managers.</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">84</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_85"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:0.0pt;margin-top:6pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:54.35pt;">
<td style="background-color:#FFFFFF;padding-bottom:3.35pt;padding-top:3.35pt;vertical-align:Bottom;width:208pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Portfolio Manager</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:69.22pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4pt;margin-right:4pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Total
Number of</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Other Accounts</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:60.79pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4pt;margin-right:4pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Total
Assets</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">of All Other</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Accounts</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">(in $
Millions)</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:77.19pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:4pt;margin-right:4pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Number of
Other</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Accounts Paying</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">a Performance Fee</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:64.8pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="border-bottom:0.5pt solid #000000;margin-left:4pt;padding-bottom:1pt;">
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Total Assets of</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Other Accounts</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Paying a</font></div> <div style="text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Performance Fee</font></div>
<div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">(in $ Millions)</font></div> </div> </div> </td> </tr>
<tr style="height:12.85pt;">
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:3.35pt;vertical-align:Middle;width:208pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">David Hammer</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:3.35pt;vertical-align:Middle;width:69.22pt;"> <div style="line-height:0.5pt;text-align:left;">
<div style="margin-left:31.28pt;margin-right:31.28pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:3.35pt;vertical-align:Middle;width:60.79pt;"> <div style="line-height:0.5pt;text-align:left;">
<div style="margin-left:27.065pt;margin-right:27.065pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:3.35pt;vertical-align:Middle;width:77.19pt;"> <div style="line-height:0.5pt;text-align:left;">
<div style="margin-left:35.265pt;margin-right:35.265pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:3.35pt;vertical-align:Middle;width:64.8pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:4pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&nbsp;</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:208pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:10pt;">Registered Investment Companies</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:69.22pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:31.28pt;margin-right:31.28pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:60.79pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:27.065pt;margin-right:27.065pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:77.19pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:35.265pt;margin-right:35.265pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:64.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:208pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:10pt;">Other Pooled Investment Vehicles</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:69.22pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:31.28pt;margin-right:31.28pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:60.79pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:27.065pt;margin-right:27.065pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:77.19pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:35.265pt;margin-right:35.265pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:64.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:9.5pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:2.5pt;vertical-align:Middle;width:208pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:10pt;">Other Accounts</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:2.5pt;vertical-align:Middle;width:69.22pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:31.28pt;margin-right:31.28pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:2.5pt;vertical-align:Middle;width:60.79pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:27.065pt;margin-right:27.065pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:2.5pt;vertical-align:Middle;width:77.19pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:35.265pt;margin-right:35.265pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:2.5pt;vertical-align:Middle;width:64.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Conflicts of Interest</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:17pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">From time to time, potential and actual conflicts of interest may arise between a
portfolio manager&#8217;s management </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the investments of the Fund, on the one hand, and the management of other accounts, on the other. Potential and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">actual conflicts of interest may also arise as a result of PIMCO&#8217;s other business activities and PIMCO&#8217;s possession of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">material non-public information (&#8220;MNPI&#8221;) about an issuer. Other accounts managed by a portfolio manager might </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have similar investment objectives or strategies as the Fund, track the same index as the Fund tracks or otherwise hold, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase, or sell securities that are eligible to be held, purchased or sold by the Fund. The other accounts might also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have different investment objectives or strategies than the Fund. Potential and actual conflicts of interest may also arise </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as a result of PIMCO serving as investment adviser to accounts that invest in the Fund. In this case, such conflicts of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest could in theory give rise to incentives for PIMCO to, among other things, vote proxies of the Fund in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">manner beneficial to the investing account but detrimental to the Fund. Conversely, PIMCO&#8217;s duties to the Fund, as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">well as regulatory or other limitations applicable to the Fund, may affect the courses of action available to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO-advised accounts (including the Fund) that invest in the Fund in a manner that is detrimental to such investing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accounts. In addition, regulatory restrictions, actual or potential conflicts of interest or other considerations may cause </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO to restrict or prohibit participation in certain investments.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Because PIMCO is affiliated with Allianz SE, a large multi-national financial institution
(together with its </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">affiliates, &#8220;Allianz&#8221;), conflicts similar to those described below may occur between the Fund or other accounts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">managed by PIMCO and PIMCO&#8217;s affiliates or accounts managed by those affiliates. Those affiliates (or their clients), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which generally operate autonomously from PIMCO, may take actions that are adverse to the Fund or other accounts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">managed by PIMCO. In many cases, PIMCO will not be in a position to mitigate those actions or address those </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conflicts, which could adversely affect the performance of the Fund or other accounts managed by PIMCO (each, a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Client,&#8221; and collectively, the &#8220;Clients&#8221;). In addition, because certain Clients are affiliates of PIMCO or have investors </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">who are affiliates or employees of PIMCO, PIMCO may have incentives to resolve conflicts of interest in favor of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">these Clients over other Clients.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;text-decoration:underline;">Knowledge and Timing of Fund
Trades.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">A potential conflict of interest may arise as a result of a portfolio manager&#8217;s </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">day-to-day
management of the Fund. Because of their positions with the Fund, the portfolio managers know the size, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">timing and possible market impact of the Fund&#8217;s trades. It
is theoretically possible that the portfolio managers could </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">use this information to the advantage of other accounts they manage and to the possible detriment of the
Fund.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;text-decoration:underline;">Cross Trades.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">A potential conflict of interest may arise in instances where the Fund buys an instrument from a Client
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">or sells an instrument to a Client (each, a &#8220;cross trade&#8221;). Such conflicts of interest may arise, among other reasons, as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">result of PIMCO representing the interests of both the buying party and the selling party in the cross trade or because </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the price at which the instrument is bought or sold through a cross trade may not be as favorable as the price that might </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have been obtained had the trade been executed in the open market. PIMCO effects cross trades when appropriate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pursuant to procedures adopted under applicable rules and SEC guidance. Among other things, such procedures require </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that the cross trade is consistent with the respective investment policies and investment restrictions of both parties and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is in the best interests of both the buying and selling accounts.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;text-decoration:underline;">Investment Opportunities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">A potential conflict of interest may arise as a result of a portfolio
manager&#8217;s management of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">a number of accounts with varying investment guidelines. Often, an investment opportunity may be suitable for one or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">more Clients, but may not be available in sufficient quantities for all accounts to participate fully. Similarly, there may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be limited opportunity to sell an investment held by the Fund and another Client. PIMCO has adopted policies and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">procedures reasonably designed to allocate investment opportunities on a fair and equitable basis over time. In </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">85</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_86"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">addition, regulatory issues applicable to PIMCO or one or more Clients may result in certain Clients not receiving </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities that may otherwise be appropriate for them.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO seeks to allocate orders across eligible Client accounts with similar investment guidelines and investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">styles fairly and equitably, taking into consideration relevant factors including, among others, applicable investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">restrictions and guidelines, regulatory requirements, risk tolerances and available cash. As part of PIMCO&#8217;s trade </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">allocation process, portions of new fixed income investment opportunities are distributed among Client account </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">categories where the relevant portfolio managers seek to participate in the investment. Those portions are then further </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">allocated among the Client accounts within such categories pursuant to PIMCO&#8217;s trade allocation policy. Portfolio </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">managers managing quantitative strategies and specialized accounts, such as those focused on international securities, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mortgage-backed securities, bank loans, or other specialized asset classes, will likely receive an increased distribution </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of new fixed income investment opportunities where the investment involves a quantitative strategy or specialized </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">asset class that matches the investment objectives or focus of the Client account category.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Any particular allocation decision among Client accounts may be more or less advantageous to any one Client or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">group of Clients, and certain allocations will, to the extent consistent with PIMCO&#8217;s fiduciary obligations, deviate from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a pro rata basis among Clients in order to address for example, differences in legal, tax, regulatory, risk management, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">concentration, exposure, Client guideline limitations and/or mandate or strategy considerations for the relevant Clients. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO may determine that an investment opportunity or particular purchases or sales are appropriate for one or more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Clients, but not appropriate for other Clients, or are appropriate or suitable for, or available to, Clients but in different </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sizes, terms, or timing than is appropriate or suitable for other Clients. For example, some Clients have higher risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tolerances than other Clients, such as private funds, which, in turn, allows PIMCO to allocate a wider variety and/or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">greater percentage of certain types of investments (which may or may not outperform other types of investments) to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such Clients. Those Clients receiving an increased allocation as a result of the effect of their respective risk tolerance </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be Clients that pay higher investment management fees or that pay incentive fees. In addition, certain Client </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">account categories focusing on certain types of investments or asset classes will be given priority in new issue </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distribution and allocation with respect to the investments or asset classes that are the focus of their investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">mandate. Legal, contractual, or regulatory issues and/or related expenses applicable to PIMCO or one or more Clients </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may result in certain Clients not receiving securities that may otherwise be appropriate for them or may result in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO selling securities out of Client accounts even if it might otherwise be beneficial to continue to hold them. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Additional factors that are taken into account in the distribution and allocation of investment opportunities to Client </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accounts include, without limitation: ability to utilize leverage and risk tolerance of the Client account; the amount of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discretion and trade authority given to PIMCO by the Client; availability of other similar investment opportunities; the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Client account&#8217;s investment horizon and objectives; hedging, cash and liquidity needs of the portfolio; minimum </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">increments and lot sizes; and underlying benchmark factors. Given all of the foregoing factors, the amount, timing, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">structuring, or terms of an investment by a Client, including the Fund, may differ from, and performance may be lower </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">than, investments and performance of other Clients, including those that may provide greater fees or other
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">compensation (including performance-based fees or allocations) to PIMCO. PIMCO has also adopted additional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">procedures to complement the general trade allocation policy that are designed to address potential conflicts of interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">due to the side-by-side management of the Fund and certain pooled investment vehicles, including investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">opportunity allocation issues.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">From time to time, PIMCO may take an investment position or action for one or more Clients that may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">different from, or inconsistent with, an action or position taken for one or more other Clients having similar or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">differing investment objectives. These positions and actions may adversely impact, or in some instances may benefit, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">one or more affected Clients (including Clients that are PIMCO affiliates) in which PIMCO has an interest, or which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pays PIMCO higher fees or a performance fee. For example, a Client may buy a security and another Client may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">establish a short position in that same security. The subsequent short sale may result in a decrease in the price of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security that the other Client holds. Similarly, transactions or investments by one or more Clients may have the effect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of diluting or otherwise disadvantaging the values, prices or investment strategies of another Client.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">When PIMCO implements for one Client a portfolio decision or strategy ahead of, or contemporaneously with, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">similar portfolio decisions or strategies of another Client, market impact, liquidity constraints or other factors could </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">result in one or more Clients receiving less favorable trading results, the costs of implementing such portfolio </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">decisions or strategies could be increased or such Clients could otherwise be disadvantaged. On the other hand, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">potential conflicts may also arise because portfolio decisions regarding a Client may benefit other Clients. For </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">example, the sale of a long position or establishment of a short position for a Client may decrease the price of the same </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">86</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_87"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">security sold short by (and therefore benefit) other Clients, and the purchase of a security or covering of a short </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">position in a security for a Client may increase the price of the same security held by (and therefore benefit) other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Clients.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Under certain circumstances, a Client may invest in a transaction in which one or more
other Clients are expected </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to participate, or already have made or will seek to make, an investment. In addition, to the extent permitted by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">applicable law, a Client may also engage in investment transactions that may result in other Clients being relieved of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations, or that may cause other Clients to divest certain investments (e.g., a Client may make a loan to, or directly </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or indirectly acquire securities or indebtedness of, a company that uses the proceeds to refinance or reorganize its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital structure, which could result in repayment of debt held by another Client). Such Clients (or groups of Clients) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may have conflicting interests and objectives in connection with such investments, including with respect to views on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the operations or activities of the issuer involved, the targeted returns from the investment and the timeframe for, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">method of, exiting the investment. When making such investments, PIMCO may do so in a way that favors one Client </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">over another Client, even if both Clients are investing in the same security at the same time. Certain Clients may invest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on a &#8220;parallel&#8221; basis (i.e., proportionately in all transactions at substantially the same time and on substantially the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">same terms and conditions). In addition, other accounts may expect to invest in many of the same types of investments </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as another account. However, there may be investments in which one or more of such accounts does not invest (or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invests on different terms or on a non-pro rata basis) due to factors such as legal, tax, regulatory, business, contractual </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or other similar considerations or due to the provisions of a Client&#8217;s governing documents. Decisions as to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">allocation of investment opportunities among such Clients present numerous conflicts of interest, which may not be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">resolved in a manner that is favorable to a Client&#8217;s interests. To the extent an investment is not allocated pro rata </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">among such entities, a Client could incur a disproportionate amount of income or loss related to such investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relative to such other Client.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, Clients may invest alongside one another in the same underlying investments or otherwise pursuant to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a substantially similar investment strategy as one or more other Clients. In such cases, certain Clients may have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">preferential liquidity and information rights relative to other Clients holding the same investments, with the result that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such Clients will be able to withdraw/redeem their interests in underlying investments in priority to Clients who may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have more limited access to information or more restrictive withdrawal/redemption rights. Clients with more limited </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information rights or more restrictive liquidity may therefore be adversely affected in the event of a downturn in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Further, potential conflicts may be inherent in PIMCO&#8217;s use of multiple strategies.
For example, conflicts will </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">arise in cases where different Clients invest in different parts of an issuer&#8217;s capital structure, including circumstances in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which one or more Clients may own private securities or obligations of an issuer and other Clients may own or seek to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">acquire private securities of the same issuer. For example, a Client may acquire a loan, loan participation or a loan </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assignment of a particular borrower in which one or more other Clients have an equity investment, or may invest in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">senior debt obligations of an issuer for one Client and junior debt obligations or equity of the same issuer for another </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Client.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO may also, for example, direct a Client to invest in a tranche of a structured finance
vehicle, such as a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">CLO or CDO, where PIMCO is also, at the same or different time, directing another Client to make investments in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">different tranche of the same vehicle, which tranche&#8217;s interests may be adverse to other tranches. PIMCO may also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cause a Client to purchase from, or sell assets to, an entity, such as a structured finance vehicle, in which other Clients </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may have an interest, potentially in a manner that will have an adverse effect on the other Clients. There may also be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conflicts where, for example, a Client holds certain debt or equity securities of an issuer, and that same issuer has </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issued other debt, equity or other instruments that are owned by other Clients or by an entity, such as a structured </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">finance vehicle, in which other Clients have an interest.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In each of the situations described above, PIMCO may take actions with respect to the assets held by one Client </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that are adverse to the other Clients, for example, by foreclosing on loans, by putting an issuer into default, or by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercising rights to purchase or sell to an issuer, causing an issuer to take actions adverse to certain classes of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, or otherwise. In negotiating the terms and conditions of any such investments, or any subsequent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amendments or waivers or taking any other actions, PIMCO may find that the interests of a Client and the interests of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">one or more other Clients could conflict. In these situations, decisions over items such as whether to make the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment or take an action, proxy voting, corporate reorganization, how to exit an investment, or bankruptcy or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">similar matters (including, for example, whether to trigger an event of default or the terms of any workout) may result </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">87</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_88"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">in conflicts of interest. Similarly, if an issuer in which a Client and one or more other Clients directly or indirectly hold </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">different classes of securities (or other assets, instruments or obligations issued by such issuer or underlying </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments of such issuer) encounters financial problems, decisions over the terms of any workout will raise conflicts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of interests (including, for example, conflicts over proposed waivers and amendments to debt covenants). For example, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a debt holder may be better served by a liquidation of the issuer in which it may be paid in full, whereas an equity or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">junior bond holder might prefer a reorganization that holds the potential to create value for the equity holders. In some </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cases PIMCO may refrain from taking certain actions or making certain investments on behalf of Clients in order to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">avoid or mitigate certain conflicts of interest or to prevent adverse regulatory or other effects on PIMCO, or may sell </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments for certain Clients (in each case potentially disadvantaging the Clients on whose behalf the actions are not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taken, investments not made, or investments sold). In other cases, PIMCO may not refrain from taking actions or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">making investments on behalf of certain Clients that have the potential to disadvantage other Clients. In addition, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO may take actions or refrain from taking actions in order to mitigate legal risks to PIMCO or its affiliates or its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Clients even if disadvantageous to a Client&#8217;s account. Moreover, a Client may invest in a transaction in which one or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">more other Clients are expected to participate, or already have made or will seek to make, an investment.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Additionally, certain conflicts may exist with respect to portfolio managers who make
investment decisions on </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">behalf of several different types of Clients. Such portfolio managers may have an incentive to allocate trades, time or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">resources to certain Clients, including those Clients who pay higher investment management fees or that pay incentive </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fees or allocations, over other Clients. These conflicts may be heightened with respect to portfolio managers who are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">eligible to receive a performance allocation under certain circumstances as part of their compensation.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">From time to time, PIMCO personnel may come into possession of MNPI which, if disclosed,
might affect an </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investor&#8217;s decision to buy, sell or hold a security. Should a PIMCO employee come into possession of MNPI with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">respect to an issuer, he or she generally will be prohibited from communicating such information to, or using such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information for the benefit of, Clients, which could limit the ability of Clients to buy, sell or hold certain investments, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">thereby limiting the investment opportunities or exit strategies available to Clients. In addition, holdings in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities or other instruments of an issuer by PIMCO or its affiliates may affect the ability of a Client to make certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">acquisitions of or enter into certain transactions with such issuer. PIMCO has no obligation or responsibility to disclose </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such information to, or use such information for the benefit of, any person (including Clients).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO maintains one or more restricted lists of companies whose securities are subject to certain trading </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prohibitions due to PIMCO&#8217;s business activities. PIMCO may restrict trading in an issuer&#8217;s securities if the issuer is on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a restricted list or if PIMCO has MNPI about that issuer. In some situations, PIMCO may restrict Clients from trading </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in a particular issuer&#8217;s securities in order to allow PIMCO to receive MNPI on behalf of other Clients. A Client may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">unable to buy or sell certain securities until the restriction is lifted, which could disadvantage the Client. PIMCO may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">also be restricted from making (or divesting of) investments in respect of some Clients but not others. In some cases </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO may not initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relating to certain securities if a security is restricted due to MNPI or if PIMCO is seeking to limit receipt of MNPI.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO may conduct litigation or engage in other legal actions on behalf of one or more
Clients. In such cases, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Clients may be required to bear certain fees, costs, expenses and liabilities associated with the litigation. Other Clients </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that are or were investors in, or otherwise involved with, the subject investments may or may not (depending on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">circumstances) be parties to such litigation actions, with the result that certain Clients may participate in litigation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">actions in which not all Clients with similar investments may participate, and such non-participating Clients may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">benefit from the results of such litigation actions without bearing or otherwise being subject to the associated fees, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">costs, expenses and liabilities. PIMCO, for example, typically does not pursue legal claims on behalf of its separate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accounts. Furthermore, in certain situations, litigation or other legal actions pursued by PIMCO on behalf of a Client </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be brought against or be otherwise adverse to a portfolio company or other investment held by a Client.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0%;text-decoration:underline;">Co-Investments.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;"> The 1940 Act imposes significant limits on co-investment with affiliates of the Fund. PIMCO has </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">applied
for exemptive relief from the SEC that, if granted, would permit the Fund to, among other things, co-invest </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">with certain affiliates. Co-investment transactions may give
rise to conflicts of interest or perceived conflicts of interest </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">among the Fund and its affiliates. If granted, the exemptive order will impose certain conditions that
may limit or </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">restrict the Fund&#8217;s ability to participate in an investment or participate in an investment to a lesser extent. An inability </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to receive the desired allocation to potential investments may affect the Fund&#8217;s ability to achieve the desired </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment returns.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">In the event investment opportunities are allocated among the Fund and its affiliates
pursuant to </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">co-investment exemptive relief, the Fund may not be able to structure its investment portfolio in the manner desired. </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">88</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_89"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Although PIMCO will endeavor to allocate investment opportunities in a fair and equitable manner, the Fund will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally not be permitted to co-invest in any issuer in which a fund managed by PIMCO or any of its downstream </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affiliates (other than the Fund and its downstream affiliates) currently has an investment. However, the Fund would be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">able to co-invest with funds managed by PIMCO or any of its downstream affiliates, subject to compliance with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">existing regulatory guidance, applicable regulations and its allocation procedures.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Pursuant to
co-investment exemptive </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">relief, if granted, the Fund will be able to invest in opportunities in which PIMCO and/or its affiliates has an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment, and PIMCO and/or its affiliates will be able to invest in opportunities in which the Fund has made an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment. From time to time, the Fund and its affiliates may make investments at different levels of an issuer&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital structure or otherwise in different classes of an issuer&#8217;s securities. Such investments inherently give rise to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conflicts of interest or perceived conflicts of interest between or among the various classes of securities that may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">held by such entities. PIMCO has adopted procedures governing the co-investment in securities acquired in private </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">placements with certain clients of PIMCO.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The foregoing is not a complete list of conflicts to which PIMCO or Clients may be subject. PIMCO seeks to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">review conflicts on a case-by-case basis as they arise. Any review will take into consideration the interests of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relevant Clients, the circumstances giving rise to the conflict, applicable PIMCO policies and procedures, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">applicable laws. Clients (and investors in the Fund) should be aware that conflicts will not necessarily be resolved in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">favor of their interests and may in fact be resolved in a manner adverse to their interests. PIMCO will attempt to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">resolve such matters fairly, but even so, matters may be resolved in favor of other Clients which pay PIMCO higher </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fees or performance fees or in which PIMCO or its affiliates have a significant proprietary interest. There can be no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assurance that any actual or potential conflicts of interest will not result in a particular Client or group of Clients </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">receiving less favorable investment terms in or returns from certain investments than if such conflicts of interest did </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not exist.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Conflicts like those described above may also occur between Clients, on the one hand, and
PIMCO or its </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">affiliates, on the other. These conflicts will not always be resolved in favor of the Client. In addition, because PIMCO </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is affiliated with Allianz, a large multi-national financial institution, conflicts similar to those described above may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">occur between clients of PIMCO and PIMCO&#8217;s affiliates or accounts managed by those affiliates. Those affiliates (or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">their clients), which generally operate autonomously from PIMCO, may take actions that are adverse to PIMCO&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Clients. In many cases PIMCO will have limited or no ability to mitigate those actions or address those conflicts, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which could adversely affect Client performance. In addition, certain regulatory or internal restrictions may prohibit </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO from using certain brokers or investing in certain companies (even if such companies are not affiliated with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Allianz) because of the applicability of certain laws and regulations or internal Allianz policies applicable to PIMCO, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Allianz SE or their affiliates. An account&#8217;s willingness to negotiate terms or take actions with respect to an investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may also be, directly or indirectly, constrained or otherwise impacted to the extent Allianz SE, PIMCO, and/or their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affiliates, directors, partners, managers, members, officers or personnel are also invested therein or otherwise have a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">connection to the subject investment (e.g., serving as a trustee or board member thereof).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;text-decoration:underline;">Performance Fees.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">A portfolio manager may advise certain accounts with respect to which the
management fee is </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">based entirely or partially on performance. Performance fee arrangements may create a conflict of interest for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio manager in that the portfolio manager may have an incentive to allocate the investment opportunities that he </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or she believes might be the most profitable to such other accounts instead of allocating them to the Fund. PIMCO has </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">adopted policies and procedures reasonably designed to allocate investment opportunities between the Fund and such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other accounts on a fair and equitable basis over time.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Certain service providers to the Fund are expected to be owned by or otherwise related to
or affiliated with a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Client, and in certain cases, such service providers are expected to be, or are owned by, employed by, or otherwise </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">related to, PIMCO, Allianz SE, their affiliates and/or their respective employees, consultants and other personnel. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO may, in its sole discretion, determine to provide, or engage or recommend an affiliate of PIMCO to provide, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain services to the Fund, instead of engaging or recommending one or more third parties to provide such services. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Subject to the governance requirements of a particular fund and applicable law, PIMCO or its affiliates, as applicable, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will receive compensation in connection with the provision of such services. As a result, PIMCO faces a conflict of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest when selecting or recommending service providers for the Fund. Fees paid to an affiliated service provider will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be determined in PIMCO&#8217;s commercially reasonable discretion, taking into account the relevant facts and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">circumstances, and consistent with PIMCO&#8217;s responsibilities. Although PIMCO has adopted various policies and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">procedures intended to mitigate or otherwise manage conflicts of interest with respect to affiliated service providers, </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">89</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_90"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">there can be no guarantee that such policies and procedures (which may be modified or terminated at any time in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO&#8217;s sole discretion) will be successful.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Portfolio Manager Compensation</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO&#8217;s approach to compensation seeks to provide professionals with a Total Compensation Plan and process </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that is driven by PIMCO&#8217;s mission and values. Key Principles on Compensation Philosophy include:</font></div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:left;width:439.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO&#8217;s pay practices are designed to attract and retain high
performers;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO&#8217;s pay philosophy embraces a corporate culture of rewarding strong
performance, a strong work ethic, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and meritocracy;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO&#8217;s goal is to ensure key professionals are aligned to PIMCO&#8217;s
long-term success through equity </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">participation; and</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:left;width:439.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO&#8217;s &#8220;Discern and Differentiate&#8221; discipline guides total
compensation levels.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Total Compensation Plan consists of three components. The compensation program for portfolio managers is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">designed to align with clients&#8217; interests, emphasizing each portfolio manager&#8217;s ability to generate long-term investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">success for PIMCO&#8217;s clients. A portfolio manager&#8217;s compensation is not based solely on the performance of the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or any other account managed by that portfolio manager:</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Base Salary &#8211;
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Base salary is determined based on core job responsibilities, positions/levels and market factors. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Base
salary levels are reviewed annually, when there is a significant change in job responsibilities or position, or a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">significant change in market levels.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Performance Bonus &#8211; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Performance bonuses are designed to reward risk-adjusted performance and contributions </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to PIMCO&#8217;s
broader investment process. The compensation process is not formulaic and the following non-exhaustive </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">list of qualitative and quantitative criteria are considered when
determining the total compensation for portfolio </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">managers:</font></div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Performance measured over a variety of longer- and shorter-term periods, including
5- year, 4-year, 3-year, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">2-year and 1-year dollar-weighted and account-weighted, pre-tax total and risk-adjusted investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">performance as judged against the applicable benchmarks (which may include internal investment
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">performance-related benchmarks) for each account managed by a portfolio manager (including the Fund) and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relative to applicable industry peer groups; greatest emphasis is placed on 5-year and 3-year performance,
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">followed by 1-year performance;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Consistency of investment performance across portfolios of similar mandate and
guidelines, rewarding low </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">dispersion and consistency of outperformance;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Appropriate risk positioning and risk management mindset which includes consistency
with PIMCO&#8217;s </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment philosophy, the Investment Committee&#8217;s positioning guidance, absence of defaults, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">appropriate alignment with client objectives;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:left;width:439.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Contributions to mentoring, coaching and/or supervising members of team;</font></div>
</div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div> <div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Collaboration, idea generation, and contribution of investment ideas in the context of PIMCO&#8217;s investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">process, Investment Committee meetings, and day-to-day management of portfolios;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">With much lesser importance than the aforementioned factors: amount and nature of
assets managed by the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio manager, contributions to asset retention, and client satisfaction.</font></div> </div> <div style="clear:both;position:relative;"> </div>
</div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO&#8217;s partnership culture further rewards strong long term risk adjusted
returns with promotion decisions </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">almost entirely tied to long term contributions to the investment process. 10-year performance can also be considered, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">though not explicitly as part of the compensation process.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Deferred Compensation &#8211;
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Long Term Incentive Plan (&#8220;LTIP&#8221;) is awarded to key professionals. Employees </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">who reach a
total compensation threshold are delivered their annual compensation in a mix of cash and/or deferred </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">compensation. PIMCO incorporates a progressive allocation of
deferred compensation as a percentage of total </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">compensation, which is in line with market practices.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">90</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_91"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:justify;width:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The LTIP provides participants with deferred cash awards that appreciate or
depreciate based on PIMCO&#8217;s </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">operating earnings over a rolling three-year period. The plan provides a link between longer term company </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">performance and participant pay, further motivating participants to make a long term commitment to
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO&#8217;s success.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Eligibility to participate in LTIP is contingent upon continued employment at PIMCO and all other applicable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">eligibility requirements.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Profit Sharing Plan
&#8211;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Portfolio managers who are Managing Directors of PIMCO receive compensation from a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-qualified profit
sharing plan consisting of a portion of PIMCO&#8217;s net profits. Portfolio managers who are Managing </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Directors receive an amount determined by PIMCO&#8217;s
Compensation Committee, based upon an individual&#8217;s overall </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">contribution to the firm.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Securities Ownership</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">To the best of the Fund&#8217;s knowledge, the table below shows the dollar range of shares of the Fund beneficially </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">owned as of December 31, 2022 by each portfolio manager of the Fund.</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div>
<div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:22.25pt;">
<td style="background-color:#FFFFFF;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:390.64pt;"> <div style="line-height:9.0pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="border-bottom:0.5pt groove #000000;color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Portfolio Manager</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:89.36pt;"> <div style="line-height:9.0pt;text-align:left;">
<div style="border-bottom:0.5pt solid #000000;margin-left:6pt;margin-right:3pt;padding-bottom:1pt;"> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Dollar
Range of Equity</font></div> <div style="text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Securities in the Fund</font></div> </div> </div> </td> </tr>
<tr style="height:10.25pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:390.64pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">David Hammer</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:89.36pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Proxy Voting Policy and Procedures</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund has adopted the proxy voting policy and procedures of PIMCO when voting proxies on behalf of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;text-decoration:underline;">Policy Statement:</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The proxy voting policy is intended to foster PIMCO&#8217;s compliance with its fiduciary obligations
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and applicable law; the policy applies to any voting or consent rights with respect to securities held in accounts over </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which PIMCO has discretionary voting authority. The Policy is designed in a manner reasonably expected to ensure </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that voting and consent rights are exercised in the best interests of PIMCO&#8217;s clients.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;text-decoration:underline;">Overview:</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO has adopted a written proxy voting</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;position:relative;top:-4.25pt;">1</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> policy (&#8220;Proxy Policy&#8221;) as required by Rule 206(4)-6 under
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Advisers Act. As a general matter, when PIMCO has proxy voting authority, PIMCO has a fiduciary obligation to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">monitor corporate events and to take appropriate action on client proxies that come to its attention. Each proxy is voted </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on a case-by-case basis, taking into account relevant facts and circumstances. When considering client proxies, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO may determine not to vote a proxy in limited circumstances.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Equity Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;font-style:italic;position:relative;top:-4.25pt;">2</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO has retained an Industry Service Provider (&#8220;ISP&#8221;) to provide
research and voting </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">recommendations for proxies relating to equity securities in accordance with the ISP&#8217;s guidelines. By following the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guidelines of an independent third party, PIMCO seeks to mitigate potential conflicts of interest PIMCO may have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with respect to proxies covered by the ISP. PIMCO will follow the recommendations of the ISP unless: (i) the ISP does </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not provide a voting recommendation; or (ii) a portfolio manager decides to override the ISP&#8217;s voting recommendation. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">In either such case as described above, the Legal and Compliance department will review the proxy to determine </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">whether a material conflict of interest, or the appearance of one, exists.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:6.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Fixed-Income Securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fixed income securities can be processed as proxy ballots or corporate action-consents</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;position:relative;top:-4.25pt;">3</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">at the discretion of the issuer/ custodian. When processed as proxy ballots, the ISP generally does not provide a voting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recommendation and their role is limited to election processing and recordkeeping. When processed as corporate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">action-consents, the Legal and Compliance department will review all election forms to determine whether a conflict </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of interest, or the appearance of one, exists with respect to the PM&#8217;s consent election. PIMCO&#8217;s Credit Research and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Portfolio Management Groups are responsible for issuing recommendations on how to vote proxy ballots and
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">corporation action-consents with respect to fixed income securities.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:6.0pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:4.17%;">Resolution of Potential Conflicts of Interest.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Proxy Policy permits PIMCO to seek to resolve material </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">conflicts of interest by pursuing any one of
several courses of action. With respect to material conflicts of interest </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">between PIMCO and a client account, the Proxy Policy permits PIMCO to either: (i) convene a
working group to </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">assess and resolve the conflict (the &#8220;Proxy Working Group&#8221;); or (ii) vote in accordance with protocols previously </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">91</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_92"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">established by the Proxy Policy, the Proxy Working Group and/or other relevant procedures approved by PIMCO&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Legal and Compliance department with respect to specific types of conflicts.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO will supervise and periodically review its proxy voting activities and
the implementation of the Proxy </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Policy.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:6pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">Sub-Adviser Engagement:</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">&#8201;</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">As an investment manager, PIMCO may exercise its discretion to engage a
Sub-Adviser to </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">provide portfolio management services to certain Funds. Consistent with its management responsibilities, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Sub-Adviser will assume the authority for voting proxies on behalf of PIMCO for these Funds. Sub-Advisers may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">utilize third parties to perform certain services related to their portfolio management responsibilities. As a fiduciary, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO will maintain oversight of the investment management responsibilities performed by the Sub-Adviser and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracted third parties.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font>
<hr style="background-color:#000000;height:0.5pt;margin-bottom:2pt;margin-left:0%;margin-top:8.0pt;text-align:left;width:72pt;"> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:8.5pt;text-align:left;width:3.75pt;"><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;position:relative;top:0;">1</font></div>
<div style="float:left;line-height:12pt;margin-left:26.25pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Proxies generally describe corporate action-consent rights (relative to fixed income
securities) and proxy </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">voting ballots (relative to fixed income or equity securities) as determined by the issuer or custodian.</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Information about how PIMCO voted
the Fund&#8217;s proxies for the most recent twelve month period ended June </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">30th (Form N-PX) will be available no later than the following August 31st, without charge,
upon request, by calling </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund at (844) 33-PIMCO (844-337-4626), on the Fund&#8217;s website at www.pimco.com and on the SEC&#8217;s website at </font><font
style="color:#0000FF;font-family:Times New Roman;font-size:10pt;">http://www.sec.gov</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">PORTFOLIO TRANSACTIONS AND BROKERAGE</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Investment Decisions and Portfolio Transactions</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Investment decisions for the Fund and for the other investment advisory clients of PIMCO are made with a view </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to achieving their respective investment objectives. Investment decisions are the product of many factors in addition to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">basic suitability for the particular client involved (including the Fund). Some securities considered for investments by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund also may be appropriate for other clients served by PIMCO. Thus, a particular security may be bought or sold </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for certain clients even though it could have been bought or sold for other clients at the same time, including accounts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in which PIMCO, its affiliates and its employees may have a financial interest. If a purchase or sale of securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consistent with the investment policies of the Fund and one or more of these clients served by PIMCO is considered at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or about the same time, transactions in such securities will be allocated among the Fund and other clients pursuant to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO&#8217;s trade allocation policy, as applicable, that is designed to ensure that all accounts, including the Fund, are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">treated fairly, equitably, and in a non-preferential manner, such that allocations are not based upon fee structure or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio manager preference. PIMCO may acquire on behalf of its clients (including the Fund) securities or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">financial instruments providing exposure to different aspects of the capital and debt structure of an issuer, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">without limitation those that relate to senior and junior/subordinate obligations of such issuer. In certain circumstances, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the interests of those clients exposed to one portion of the issuer&#8217;s capital and debt structure may diverge from those </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">clients exposed to a different portion of the issuer&#8217;s capital and debt structure. PIMCO may advise some clients or take </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">actions for them in their best interests with respect to their exposures to an issuer&#8217;s capital and debt structure that may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">diverge from the interests of other clients with different exposures to the same issuer&#8217;s capital and debt structure.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO may aggregate orders for the Fund with simultaneous transactions entered into on
behalf of its other </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">clients when, in its reasonable judgment, aggregation may result in an overall economic benefit to the Fund and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other clients in terms of pricing, brokerage commissions or other expenses. When feasible, PIMCO allocates trades </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prior to execution. When pre-execution allocation is not feasible, PIMCO promptly allocates trades following </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">established and objective procedures. Allocations generally are made at or about the time of execution and before the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">end of the trading day. As a result, one account may receive a price for a particular transaction that is different from the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price received by another account for a similar transaction on the same day. In general, trades are allocated among </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio managers on a pro rata basis (to the extent a portfolio manager decides to participate fully in the trade), for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">further allocation by each portfolio manager among that manager&#8217;s eligible accounts. In allocating trades among </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accounts, portfolio managers generally consider a number of factors, including, but not limited to, each account&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deviation (in terms of risk exposure and/or performance characteristics) from a relevant model portfolio, each </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">account&#8217;s investment objectives, restrictions and guidelines, its risk exposure, its available cash, and its existing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holdings of similar securities. Once trades are allocated, they may be reallocated only in unusual circumstances due to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recognition of specific account restrictions. In some cases, PIMCO may sell a security on behalf of a client, including </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">92</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_93"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">the Fund, to a broker-dealer that thereafter may be purchased for the accounts of one or more other clients, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund, from that or another broker-dealer. PIMCO has adopted procedures it believes are reasonably designed to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obtain the best execution for the transactions by each account.</font>
<hr style="background-color:#000000;height:0.5pt;margin-bottom:2pt;margin-left:0%;margin-top:1.0pt;text-align:left;top:43pt;width:72pt;"> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:8.5pt;text-align:left;width:3.75pt;"><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;position:relative;top:0;">2</font></div>
<div style="float:left;line-height:12pt;margin-left:26.25pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The term &#8220;equity securities&#8221; means common and preferred stock, including
common and preferred shares </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">issued by investment companies; it does not include debt securities convertible into equity securities.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:8.5pt;text-align:left;width:3.75pt;"><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;position:relative;top:0;">3</font></div>
<div style="float:left;line-height:12pt;margin-left:26.25pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Voting or consent rights shall not include matters which are primarily decisions to
buy or sell investments, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">such as tender offers, exchange offers, conversions, put options, redemptions, and Dutch auctions.</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Brokerage and Research
Services</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">There is generally no stated commission in the case of fixed-income
securities, which are often traded in the OTC </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">markets, but the price paid by the Fund usually includes an undisclosed dealer commission or mark-up. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underwritten offerings, the price paid by the Fund includes a disclosed, fixed commission or discount retained by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underwriter or dealer. Transactions on U.S. stock exchanges and other agency transactions involve the payment by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund of negotiated brokerage commissions. Such commissions vary among different brokers. Also, a particular broker </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may charge different commissions according to such factors as the difficulty and size of the transaction. Transactions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in foreign securities generally involve the payment of fixed brokerage commissions, which are generally higher than </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">those in the United States. Transactions in fixed income securities on certain foreign exchanges may involve </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commission payments.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO places all orders for the purchase and sale of portfolio securities, options, futures contracts, swap </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreements and other instruments for the Fund and buys and sells such securities, options, futures, swap agreements </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and other instruments for the Fund through a substantial number of brokers and dealers. In so doing, PIMCO uses its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">best efforts to obtain for the Fund the best execution available, except to the extent it may be permitted to pay higher </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">brokerage commissions as described below. In seeking best execution, PIMCO, having in mind the Fund&#8217;s best </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interests, considers all factors it deems relevant, including, by way of illustration, price, the size of the transaction, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">nature of the market for the security, the amount of the commission, the timing of the transaction taking into account </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market prices and trends, the reputation, experience and financial stability of the broker-dealer involved and the quality </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of service rendered by the broker-dealer in other transactions. Changes in the aggregate amount of brokerage </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commissions paid by the Fund from year-to-year may be attributable to changes in the asset size of the Fund, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">volume of the portfolio transactions effected by the Fund, the types of instruments in which the Fund invests, or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rates negotiated by PIMCO on behalf of the Fund. Although the Fund may use financial firms that sell Fund shares to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">effect transactions for the Fund&#8217;s portfolio, neither the Fund nor PIMCO will consider the sale of Fund shares as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">factor when choosing financial firms to effect those transactions.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund did not pay any brokerage commissions during the fiscal years ended December 31, 2022, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">December 31, 2021 and December 31, 2020.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO places orders for the purchase and sale of portfolio investments for the Fund&#8217;s account with brokers or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dealers selected by it in its discretion. In effecting purchases and sales of portfolio securities for the account of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund, PIMCO will seek the best price and execution of the Fund&#8217;s orders. In doing so, the Fund may pay higher </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commission rates than the lowest available when PIMCO believes it is reasonable to do so in light of the value of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">brokerage and research services provided by the broker effecting the transaction, as discussed below.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">It has for many years been a common practice in the investment advisory business for advisers of investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">companies and other institutional investors to receive research and brokerage products and services (together, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;services&#8221;) from broker-dealers that execute portfolio transactions for the clients of such advisers. Consistent with this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">practice, PIMCO may receive research services from many broker-dealers with which PIMCO places the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio transactions. PIMCO also may receive research or research-related credits from brokers that are generated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from underwriting commissions when purchasing new issues of fixed-income securities or other assets for the Fund. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">These services, which in some cases may also be purchased for cash, include such matters as general economic and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">security market reviews, industry and company reviews, evaluations of securities and recommendations as to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase and sale of securities and services related to the execution of securities transactions. Some of these services </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are of value to PIMCO in advising various of its clients (including the Fund), although not all of these services are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">necessarily useful and of value in managing the Fund. Conversely, research and brokerage services provided to the </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">93</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_94"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Fund by broker-dealers in connection with trades executed on behalf of other clients of PIMCO may be useful to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO in managing the Fund, although not all of these services may be necessarily useful and of value to PIMCO in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">managing such other clients.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In reliance on the &#8220;safe harbor&#8221; provided by Section 28(e) of the Securities Exchange Act of 1934, as amended </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(the &#8220;Exchange Act&#8221;), PIMCO may cause the Fund to pay broker-dealers which provide them with &#8220;brokerage and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">research services&#8221; (as defined in the Exchange Act) an amount of commission for effecting a securities transaction for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund in excess of the commission which another broker-dealer would have charged for effecting that transaction if </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO determines in good faith that the commission is reasonable in relation to the value of the brokerage and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">research services provided by the broker-dealer viewed in terms of either a particular transaction or PIMCO&#8217;s overall </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">responsibilities to the advisory accounts for which PIMCO exercises investment discretion.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">PIMCO may place orders for the purchase and sale of exchanged-listed portfolio securities with a broker-dealer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that is an affiliate of PIMCO where, in the judgment of PIMCO, such firm will be able to obtain a price and execution </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">at least as favorable as other qualified broker-dealers.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Pursuant to rules of the SEC, a broker-dealer that is an affiliate of PIMCO may receive and retain compensation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for effecting portfolio transactions for the Fund on a national securities exchange of which the broker-dealer is a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">member if the transaction is &#8220;executed&#8221; on the floor of the exchange by another broker which is not an &#8220;associated </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">person&#8221; of the affiliated broker-dealer, and if there is in effect a written contract between PIMCO and the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expressly permitting the affiliated broker-dealer to receive and retain such compensation.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">SEC rules further require that commissions paid to such an affiliated broker dealer, or PIMCO by the Fund on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exchange transactions not exceed &#8220;usual and customary brokerage commissions.&#8221; The rules define &#8220;usual and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">customary&#8221; commissions to include amounts which are &#8220;reasonable and fair compared to the commission, fee or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">remuneration received or to be received by other brokers in connection with comparable transactions involving similar </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities being purchased or sold on a securities exchange during a comparable period of time.&#8221;</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund did not pay any commissions to affiliated brokers during the fiscal years ended
December 31, 2022, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">December&nbsp;31, 2021 and December&nbsp;31, 2020.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Holdings of Securities of the Fund&#8217;s Regular Broker and Dealer</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The following table lists the regular broker or dealer of the Fund whose securities the Fund acquired during the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fiscal year ended December 31, 2022, as well as the Fund&#8217;s holdings in such broker or dealer as of December 31, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">2022.</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div>
<div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:28.85pt;">
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:377.44pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Broker or Dealer</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:102.56pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Value of Securities</font></div>
<div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Held by the Fund as</font></div>
<div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">of December 31, 2022 ($000)</font></div> </div> </td> </tr>
<tr style="height:10.85pt;">
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:377.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:102.56pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">DISTRIBUTIONS</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:20pt;">See &#8220;Distributions&#8221; in the Prospectus for information relating to distributions to Fund shareholders.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For U.S. federal income tax purposes, the Fund is currently required to allocate each type of its income (such as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ordinary income and net capital gain), if any, between and among Common Shares and each series of Preferred Shares </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in proportion to total distributions paid to each class for the tax year.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">While any Preferred Shares are outstanding, the Fund may not declare any cash dividend or other distribution on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">its Common Shares unless: (i) immediately after such transaction, the Fund would satisfy Moody&#8217;s Ratings Agency </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Preferred Shares Asset Coverage and 1940 Act Preferred Shares Asset Coverage would be satisfied (each as defined </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and described under &#8220;Description of Capital Structure &#8211; Rating Agency Guidelines and Asset Coverage&#8221; in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Prospectus); (ii) full cumulative dividends on the Preferred Shares due on or prior to the date of the transaction have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">been declared and paid or shall have been declared and sufficient funds for the payment thereof deposited with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">auction agent for the Preferred Shares; and (iii) the Fund has redeemed the full number of Preferred Shares required to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be redeemed by any provision for mandatory redemption contained in the Bylaws. See &#8220;Preferred Shares </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">94</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_95"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Redemption.&#8221; This latter limitation on the Fund&#8217;s ability to make distributions on its Common Shares could cause the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund to incur income and excise tax and, under certain circumstances, impair the ability of the Fund to maintain its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">qualification for taxation as a RIC. See &#8220;Taxation.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:20pt;">The Board of Trustees has declared a dividend of $[ ] per Common Share payable on [ ].</font> <br></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">DESCRIPTION OF SHARES</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Common Shares</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund&#8217;s Declaration authorizes the issuance of an unlimited number of Common Shares. The Common Shares </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currently outstanding have been issued with a par value of $0.00001 per share. All Common Shares of the Fund have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">equal rights as to the payment of dividends and the distribution of assets upon liquidation of the Fund. The Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares currently outstanding have been fully paid and, subject to matters discussed in &#8220;Anti-Takeover and Other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Provisions in the Declaration of Trust&#8212;Shareholder Liability&#8221; below, are non-assessable, and have no pre-emptive or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conversion rights or rights to cumulative voting. At any time when the Preferred Shares are outstanding, Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shareholders will not be entitled to receive any distributions from the Fund unless all accrued dividends on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Preferred Shares have been paid, and unless asset coverage (as defined in the 1940 Act) with respect to the Preferred </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares would be at least 200% after giving effect to such distributions. See &#8220;Description of Capital Structure&#8221; in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Prospectus.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Common Shares are listed on the NYSE. The Fund intends to hold annual meetings of
shareholders so long </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">as the Common Shares are listed on a national securities exchange and such meetings are required as a condition to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such listing.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Shares of closed-end investment companies may frequently trade at prices lower than net
asset value, although </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">they have during some periods traded at prices equal to or higher than net asset value and during other periods traded </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">at prices lower than net asset value. There can be no assurance that Common Shares or shares of other similar funds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will trade at a price higher than net asset value in the future. Net asset value will be reduced immediately following </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any offering of Preferred Shares by the cost of that offering paid by the Fund. Net asset value generally increases when </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest rates decline, and decreases when interest rates rise, and these changes are likely to be greater in the case of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fund, such as the Fund, having a leveraged capital structure. Whether investors realize gains or losses upon the sale of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Common Shares will not depend upon the Fund&#8217;s net asset value but will depend entirely upon whether the market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">price of the Common Shares at the time of sale is above or below the original purchase price for the shares. Since the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market price of the Fund&#8217;s Common Shares will be determined by factors beyond the control of the Fund, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cannot predict whether the Common Shares will trade at, below, or above net asset value or at, below or above the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">initial public offering price. Accordingly, the Common Shares are designed primarily for long-term investors, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investors in the Common Shares should not view the Fund as a vehicle for trading purposes. See &#8220;Repurchase of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Common Shares; Conversion to Open-End Fund.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Preferred Shares</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:20pt;">See &#8220;Description of Capital Structure&#8221; in the Prospectus for information relating to the Preferred Shares.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As used in this Statement of Additional Information and in the Prospectus, unless otherwise noted, the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;net assets&#8221; include assets of the Fund attributable to any outstanding Preferred Shares, with no deduction for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">liquidation preference of the Preferred Shares. Solely for financial reporting purposes, however, the Fund is required to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exclude the liquidation preference of Preferred Shares from &#8220;net assets,&#8221; so long as the Preferred Shares have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">redemption features that are not solely within the control of the Fund. For all regulatory and tax purposes, the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Preferred Shares will be treated as stock (rather than indebtedness).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">ANTI-TAKEOVER AND OTHER PROVISIONS IN THE DECLARATION OF TRUST AND BYLAWS</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Shareholder Liability</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Under Massachusetts law, shareholders could, under certain circumstances, be held
personally liable for the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations of the Fund. However, the Declaration contains an express disclaimer of shareholder liability for acts or </font></div> </div>
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">95</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_96"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">obligations of the Fund and requires that notice of such limited liability be given in each agreement, obligation or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrument entered into or executed by the Fund or the Trustees. The Declaration also provides for indemnification out </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund&#8217;s assets and property for all loss and expense of any shareholder held personally liable on account of being </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or having been a shareholder. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">should be limited to circumstances in which such disclaimer is inoperative or the Fund is unable to meet its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations, and thus should be considered remote.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Anti-Takeover Provisions</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As described below, the Declaration and the Bylaws include provisions that could limit the
ability of other entities </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">or persons to acquire control of the Fund, convert the Fund to open-end status or to change the composition of its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Board, and could have the effect of depriving shareholders of opportunities to sell their shares at a premium over </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prevailing market prices by discouraging a third party from seeking to obtain control of the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As described below, the Declaration grants special approval rights with respect to certain matters to members of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Board who qualify as &#8220;Continuing Trustees,&#8221; which term means a Trustee who either (i) has been a member of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Board of Trustees for a period of at least thirty-six months ( or since the commencement of the Trust's operations, if </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">less than thirty-six months) or (ii) was nominated to serve as a member of the Board, or designated as a Continuing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee, by a majority of the Continuing Trustees then members of the Board. The Declaration requires the affirmative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">vote or consent of at least seventy-five percent (75%) of the Board and holders of at least seventy-five percent (75%) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund&#8217;s shares to authorize certain Fund transactions not in the ordinary course of business, including a merger or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consolidation or share exchange, any shareholder proposal as to specific investment decisions made or to be with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">respect to the assets of the Fund or issuance or transfer by the Fund of the Fund&#8217;s shares having an aggregate fair </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market value of $1,000,000 or more (except for transactions in securities effected by the Trust or a series or class in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ordinary course of business), unless the transaction is authorized by both a majority of the Trustees and seventy-five </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">percent (75%) of the Continuing Trustees (in which case no shareholder authorization would be required by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Declaration, but may be required in certain cases under the 1940 Act). The Declaration also requires the affirmative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">vote or consent of holders of at least seventy-five percent (75%) of each class of the Fund&#8217;s shares outstanding and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entitled to vote on the matter to authorize a conversion of the Fund from a closed-end to an open-end investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">company, unless the conversion is authorized by both a majority of the Trustees and seventy-five percent (75%) of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Continuing Trustees (in which case shareholders would have only the minimum voting rights required by the 1940 Act </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with respect to the conversion). Also, the Declaration provides that the Fund may be terminated at any time by vote or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consent of at least seventy-five percent (75%) of the Fund&#8217;s shares entitled to vote or, alternatively, by vote or consent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of both a majority of the Board and seventy-five percent (75%) of the Continuing Trustees upon written notice to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders of the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Trustees may from time to time grant other voting rights to shareholders with respect to these and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">matters in the Bylaws, certain of which are required by the 1940 Act.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The overall effect of these provisions is to render more difficult the accomplishment of a merger or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assumption of control of the Fund by a third party. These provisions also provide, however, the advantage of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">potentially requiring persons seeking control of the Fund to negotiate with its management regarding the price to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">paid and facilitating the continuity of the Fund&#8217;s investment objective and policies. The Board has considered the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foregoing anti-takeover provisions and concluded that they are in the best interests of the Fund and its shareholders, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including Common Shareholders.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The foregoing is intended only as a summary and is qualified in its entirety by reference to the full text of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Declaration and the Bylaws, both of which are on file with the SEC.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Liability of Trustees</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Declaration provides that the obligations of the Fund are not binding upon the Trustees of the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">individually, but only upon the assets and property of the Fund.&nbsp;The Declaration provides further that a Trustee or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">officer shall be liable for his or her own willful misfeasance, bad faith, gross negligence or reckless disregard of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">duties involved in the conduct of the office of Trustee or officer, and for nothing else, and shall not be liable for errors </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of judgment or mistakes of fact or law. No provision of the Declaration, however, shall limit or eliminate any duty </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">96</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_97"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">under the federal securities laws (including any fiduciary duties of loyalty and care) that a Trustee or officer owes to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund with respect to claims asserted under the federal securities laws.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Derivative and Direct Claims of Shareholders</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A shareholder&nbsp;or group of shareholders may not bring or maintain any court action, proceeding or claim on behalf </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund or any series or class of shares without first making demand on the Trustees requesting the Trustees to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bring or maintain such action, proceeding or claim. Such demand shall not be excused under any circumstances, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including claims of alleged interest on the part of the Trustees, unless the plaintiff makes a specific showing that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">irreparable nonmonetary injury to the Trust or series or class of shares would otherwise result The Trustees shall </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consider such demand within 45 days of its receipt by the Fund. In their sole discretion, the Trustees may submit the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">matter to a vote of shareholders of the Fund or a series or class of shares, as appropriate. Any decision by the Trustees </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to bring, maintain or settle (or not to bring, maintain or settle) such court action, proceeding or claim, or to submit the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">matter to a vote of shareholders shall be made by the Trustees in their business judgment and shall be binding upon the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A shareholder may not bring or maintain a direct action or claim for monetary damages
against the Fund or the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustees predicated upon an express or implied right of action under the Declaration or the 1940 Act (excepting rights </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of action permitted under Section 36(b) of the 1940 Act) , nor shall any single shareholder, who is similarly situated to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">one or more other shareholders with respect to the alleged injury, have the right to bring such an action, unless such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">group of shareholders or shareholder has obtained authorization from the Trustees to bring the action. The requirement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of authorization shall not be excused under any circumstances, including claims of alleged interest on the part of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustees. The Trustees shall consider such request within 45 days of its receipt by the Fund. In their sole discretion, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustees may submit the matter to a vote of shareholders of the Fund or series or class of shares, as appropriate. Any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">decision by the Trustees to settle or to authorize (or not to settle or to authorize) such court action, proceeding or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">claim, or to submit the matter to a vote of shareholders, shall be made in their business judgment and shall be binding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on all shareholders.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Any person purchasing or otherwise acquiring or holding any interest in shares of beneficial interest of the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will be deemed to have notice of and consented to the foregoing provisions. These provisions may limit a
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder&#8217;s ability to bring a claim against the Trustees, officers or other agents of the Fund and its service </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">providers, which may discourage such lawsuits with respect to such claims.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">These provisions in the Declaration regarding derivative and direct claims of shareholders shall not apply to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">claims made under federal securities laws.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">REPURCHASE OF COMMON SHARES;&nbsp;CONVERSION TO OPEN-END FUND</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund is a closed-end investment company and as such its shareholders will not have the
right to cause the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund to redeem their shares. Instead, the Fund&#8217;s Common Shares trade in the open market at a price that will be a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">function of several factors, including dividend levels and stability (which will in turn be affected by dividend and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest payments by the Fund&#8217;s portfolio holdings, regulations affecting the timing and character of Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions, Fund expenses and other factors), portfolio credit quality, liquidity, call protection, market supply and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">demand, and similar factors relating to the Fund&#8217;s portfolio holdings. Shares of a closed-end investment company may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">frequently trade at prices lower than net asset value. The Fund&#8217;s Board will regularly monitor the relationship between </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the market price and net asset value of the Common Shares. If the Common Shares were to trade at a substantial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discount to net asset value for an extended period of time, the Board may consider the repurchase of its Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares on the open market or in private transactions, the making of a tender offer for such shares or the conversion of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund to an open-end investment company. The Fund cannot assure you that the Board will decide to take or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">propose any of these actions, or that share repurchases or tender offers will actually reduce any market discount. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund has no present intention to repurchase its Common Shares and would do so only in the circumstances described </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in this section.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Notwithstanding the foregoing, at any time when the Preferred Shares are outstanding, the Fund may not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchase, redeem or otherwise acquire for consideration any of its Common Shares unless and only if: (i) immediately </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">after such transaction, the Fund would satisfy Moody&#8217;s Ratings Agency Preferred Shares Asset Coverage, Fitch </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Preferred Shares Asset Coverage and 1940 Act Preferred Shares Asset Coverage (each as defined and described under </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">97</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_98"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">&#8220;Description of Capital Structure - Rating Agency Guidelines and Asset Coverage&#8221; in the Prospectus); (ii) full </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cumulative dividends on the Preferred Shares due on or prior to the date of the transaction have been declared and paid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or shall have been declared and sufficient funds for the payment thereof deposited with the auction agent for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Preferred Shares; and (iii) the Fund has redeemed the full number of Preferred Shares required to be redeemed by any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provision for mandatory redemption contained in the Bylaws.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Subject to its investment limitations, the Fund may borrow to finance the repurchase of shares or to make a tender </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offer. Interest on any borrowings to finance share repurchase transactions or the accumulation of cash by the Fund in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">anticipation of share repurchases or tenders will reduce the Fund&#8217;s net income. Any share repurchase, tender offer or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrowing that might be approved by the Board would have to comply with the Exchange Act and the 1940 Act and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the rules and regulations thereunder.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund&#8217;s Board may also from time to time consider submitting to the holders of the shares of beneficial </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest of the Fund a proposal to convert the Fund to an open-end investment company. In determining whether to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exercise its sole discretion to submit this issue to shareholders, the Board would consider all factors then relevant, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">including the relationship of the market price of the Common Shares to net asset value and the extent to which the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s capital structure is leveraged and the possibility of re-leveraging, the spread, if any, between the yields on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities in the Fund&#8217;s portfolio and interest and dividend charges on Preferred Shares issued by the Fund and general </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">market and economic conditions.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Declaration requires the affirmative vote or consent of holders of at least seventy-five percent (75%) of each </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">class of the Fund&#8217;s shares entitled to vote on the matter to authorize a conversion of the Fund from a closed-end to an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">open-end investment company, unless the conversion is authorized by both a majority of the Board and seventy-five </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">percent (75%) of the Continuing Trustees (as defined above under &#8220;Anti-Takeover and Other Provisions in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Declaration of Trust and Bylaws&#8212;Anti-Takeover Provisions&#8221;). This seventy-five percent (75%) shareholder approval </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirement is higher than is required under the 1940 Act. In the event that a conversion is approved by the Trustees </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and the Continuing Trustees as described above, the minimum shareholder vote required under the 1940 Act would be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">necessary to authorize the conversion. Currently, the 1940 Act would require approval of the holders of a &#8220;majority of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the outstanding&#8221; Common Shares and Preferred Shares voting together as a single class, and the holders of a &#8220;majority </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the outstanding&#8221; Preferred Shares, voting as a separate class, in order to authorize a conversion.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the Fund were to convert to an open-end company, it would be required to redeem all
Preferred Shares then </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">outstanding (required in turn that it liquidate a portion of its investment portfolio) and the Fund&#8217;s Common Shares </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">likely would no longer be listed on the NYSE. In contrast to a closed-end investment company, shareholders of an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">open-end investment company may require the company to redeem their shares at any time (except in certain
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">circumstances as authorized by or under the 1940 Act) at their net asset value, less any redemption charge that is in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">effect at the time of redemption. In addition, if the Fund were to convert to an open-end company, it would likely have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to significantly reduce any leverage it is then employing and would not be able to invest more than 15% of its net </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets in illiquid investments, either or both of which may necessitate a substantial repositioning of the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment portfolio, which may in turn generate substantial transaction costs, which would be borne by Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shareholders, and may adversely affect Fund performance and Fund dividends. Shareholders of an open-end
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment company may require the company to redeem their shares on any business day (except in certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">circumstances as authorized by or under the 1940 Act) at their net asset value, less such redemption charge, if any, as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">might be in effect at the time of redemption. In order to avoid maintaining large cash positions or liquidating favorable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investments to meet redemptions, open-end companies typically engage in a continuous offering of their shares. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Open-end companies are thus subject to periodic asset inflows and out-flows that can complicate portfolio
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">management.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The repurchase by the Fund of its shares at prices below net asset value will result in an increase in the net asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value of those shares that remain outstanding. However, there can be no assurance that share repurchases or tenders at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or below net asset value will result in the Fund&#8217;s shares trading at a price equal to their net asset value. Nevertheless, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the fact that the Fund&#8217;s shares may be the subject of repurchase or tender offers at net asset value from time to time, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that the Fund may be converted to an open-end company, may reduce any spread between market price and net asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">value that might otherwise exist.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, a purchase by the Fund of its Common Shares will decrease the Fund&#8217;s total assets. This would likely </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">have the effect of increasing the Fund&#8217;s expense ratio. Any purchase by the Fund of its Common Shares at a time when </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">98</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_99"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">Preferred Shares, TOBs or other forms of leverage are outstanding will increase the leverage applicable to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">outstanding Common Shares then remaining. See the Prospectus under &#8220;Principal Risks of the Fund&#8212;Leverage Risk.&#8221; </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Before deciding whether to take any action if the Fund&#8217;s Common Shares trade below
net asset value, the Board </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">would consider all relevant factors, including the extent and duration of the discount, the liquidity of the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portfolio, the impact of any action that might be taken on the Fund or its shareholders and market considerations. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Based on these considerations, even if the Fund&#8217;s shares should trade at a discount, the Board may determine that, in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the interest of the Fund and its shareholders, no action should be taken.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">TAXATION</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The following discussion of U.S. federal income tax consequences of investment in Common Shares of the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is based on the Code, U.S. Treasury regulations, and other applicable authority, as of the date of this Statement of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Additional Information. These authorities are subject to change by legislative or administrative action, possibly with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">retroactive effect. The following discussion is only a summary of some of the important U.S. federal income tax </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">considerations generally applicable to investments in Common Shares of the Fund. This summary does not purport to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be a complete description of the U.S. federal income tax considerations applicable to an investment in Common Shares </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund. There may be other tax considerations applicable to particular shareholders. For example, except as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">otherwise specifically noted herein, we have not described certain tax considerations that may be relevant to certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">types of holders subject to special treatment under the U.S. federal income tax laws, including shareholders subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the U.S. federal alternative minimum tax, insurance companies, tax-exempt organizations, pension plans and trusts, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">RICs, dealers in securities, shareholders holding Common Shares through tax-advantaged accounts (such as
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">401(k) plans or individual retirement accounts), financial institutions, shareholders holding Common Shares as part of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a hedge, straddle, or conversion transaction, entities that are not organized under the laws of the United States or a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">political subdivision thereof, and persons who are neither citizens nor residents of the United States. This summary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assumes that investors hold Common Shares as capital assets (within the meaning of the Code). Shareholders should </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consult their own tax advisors regarding their particular situation and the possible application of U.S. federal, state, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">local, non-U.S. or other tax laws, and any proposed tax law changes.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Taxation of the Fund</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund has elected, and intends&nbsp;each year to qualify and&nbsp;be eligible to be treated, as a RIC under Subchapter M </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Code. In order to qualify for the special tax treatment accorded RICs and their shareholders, the Fund must, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">among other things: (a) derive at least 90% of its gross income for each taxable year from (i) dividends, interest, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments with respect to certain securities loans, and gains from the sale or other disposition of stock, securities or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign currencies, or other income (including but not limited to gains from options, futures, or forward contracts) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">derived with respect to its business of investing in such stock, securities, or currencies and (ii) net income derived from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interests in &#8220;qualified publicly traded partnerships&#8221; (as defined below); (b) diversify its holdings so that, at the end of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">each quarter of the Fund&#8217;s taxable year, (i) at least 50% of the value of the Fund&#8217;s total assets consists of cash and cash </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">items, U.S. government securities, securities of other RICs, and other securities limited in respect of any one issuer to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a value not greater than 5% of the value of the Fund&#8217;s total assets and not more than 10% of the outstanding voting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities of such issuer, and (ii) not more than 25% of the value of the Fund&#8217;s total assets is invested, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">through corporations in which the Fund owns a 20% or more voting stock interest, (x) in the securities (other than </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">those of the U.S. government or other RICs) of any one issuer or of two or more issuers that the Fund controls and that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are engaged in the same, similar, or related trades or businesses, or (y) in the securities of one or more qualified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">publicly traded partnerships (as defined below); and (c) distribute with respect to each taxable year at least 90% of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sum of its investment company taxable income (as that term is defined in the Code without regard to the deduction for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends paid&#8212;generally, taxable ordinary income and the excess, if any, of net short-term capital gains over net </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">long-term capital losses) and any net tax-exempt interest income for such year.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In general, for purposes of the 90% gross income requirement described in paragraph (a) above, income derived </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from a partnership will be treated as qualifying income only to the extent such income is attributable to items of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income of the partnership that would be qualifying income if realized directly by the RIC. However, 100% of the net </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income derived from an interest in a &#8220;qualified publicly traded partnership&#8221; (a partnership (x) the interests in which are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">traded on an established securities market or are readily tradable on a secondary market or the substantial equivalent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">thereof and (y) that derives less than 90% of its income from the qualifying income described in paragraph (a)(i) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">above) will be treated as qualifying income. In general, such entities will be treated as partnerships for U.S. federal </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">99</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_100"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">income tax purposes because they meet the passive income requirement under Code section 7704(c)(2). In addition, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">although in general the passive loss rules of the Code do not apply to RICs, such rules do apply to a RIC with respect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to items attributable to an interest in a qualified publicly traded partnership.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For purposes of the diversification test in (b) above, the term &#8220;outstanding voting securities of such issuer&#8221; will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">include the equity securities of a qualified publicly traded partnership. Also, for purposes of the diversification test in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(b) above, the identification of the issuer (or, in some cases, issuers) of a particular Fund investment can depend on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">terms and conditions of that investment. In some cases, identification of the issuer (or issuers) is uncertain under </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">current law, and an adverse determination or future guidance by the IRS with respect to issuer identification for a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particular type of investment may adversely affect the Fund&#8217;s ability to meet the diversification test in (b) above.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the Fund qualifies as a RIC that is accorded special tax treatment, the Fund will not be
subject to U.S. federal </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">income tax on income or gains distributed in a timely manner to Common Shareholders in the form of dividends </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(including Capital Gain Dividends, as defined below). If the Fund were to fail to meet the income, diversification, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distribution tests described above, the Fund could in some cases cure such failure, including by paying a fund-level </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax, paying interest, making additional distributions, or disposing of certain assets. If the Fund were ineligible to or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">otherwise did not cure such failure for any year, or were otherwise to fail to qualify as a RIC accorded special tax </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">treatment for such year, the Fund would be subject to tax on its taxable income at corporate rates, and all distributions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from earnings and profits, including any distributions of net tax-exempt income and net long-term capital gains, would </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be taxable to Common Shareholders as ordinary income. Some portions of such distributions may be eligible for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends-received deduction in the case of corporate shareholders and may be eligible to be treated as &#8220;qualified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend income&#8221; in the case of shareholders taxed as individuals, provided, in both cases, that the shareholder meets </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain holding period and other requirements in respect of the Fund&#8217;s Common Shares (as described below). In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">addition, the Fund could be required to recognize unrealized gains, pay substantial taxes and interest and make </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">substantial distributions before re-qualifying as a RIC that is accorded special tax treatment.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund intends to distribute to its shareholders, at least annually, all or substantially all of its investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">company taxable income (computed without regard to the dividends-paid deduction), its net tax-exempt income and its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">net capital gain (that is, the excess of net long-term capital gain over net short-term capital loss, in each case </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">determined with reference to any loss carryforwards). Any taxable income including any net capital gain retained by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund will be subject to tax at the Fund level at regular corporate rates. In the case of net capital gain, the Fund is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">permitted to designate the retained amount as undistributed capital gain in a timely notice to its shareholders who </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would then, in turn, (i) be required to include in income for U.S. federal income tax purposes, as long-term capital </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">gain, their share of such undistributed amount, and (ii) be entitled to credit their proportionate shares of the tax paid by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund on such undistributed amount against their U.S. federal income tax liabilities, if any, and to claim refunds on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a properly filed U.S. tax return to the extent the credit exceeds such liabilities. If the Fund makes this designation, for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. federal income tax purposes, the tax basis of Common Shares owned by a shareholder of the Fund will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">increased by an amount equal to the difference between the amount of undistributed capital gains included in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder&#8217;s gross income under clause (i) of the preceding sentence and the tax deemed paid by the shareholder </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">under clause (ii) of the preceding sentence. The Fund is not required to, and there can be no assurance that the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will, make this designation if it retains all or a portion of its net capital gain in a taxable year.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As described under &#8220;Use of Leverage&#8221; in the Prospectus, if at any time when Preferred Shares or other senior </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities, as applicable, are outstanding the Fund does not meet applicable asset coverage requirements, it will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">required to suspend distributions to Common Shareholders until the requisite asset coverage is restored. Any such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">suspension may cause the Fund to pay a U.S. federal income and excise tax on undistributed income or gains and may, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in certain circumstances, prevent the Fund from qualifying for treatment as a RIC. The Fund may repurchase or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">otherwise retire Preferred Shares or other senior securities, as applicable, in an effort to comply with the distribution </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirement applicable to RICs.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Capital losses in excess of capital gains (&#8220;net capital losses&#8221;) are not permitted to be deducted against the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">net investment income. Instead, potentially subject to certain limitations, the Fund may carry net capital losses from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any taxable year forward to subsequent taxable years to offset capital gains, if any, realized during such subsequent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxable years. Capital loss carryforwards are reduced to the extent they offset current-year net realized capital gains, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">whether the Fund retains or distributes such gains. If the Fund incurs or has incurred net capital losses, those losses </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will be carried forward to one or more subsequent taxable years without expiration. Any such carryforward losses will </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">100</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_101"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">retain their character as short-term or long-term. The Fund&#8217;s available capital loss carryforwards, if any, will be set </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">forth in its annual shareholder report for each fiscal year.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In determining its net capital gain, including in connection with determining the amount available to support a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Capital Gain Dividend (as defined below), its taxable income and its earnings and profits, a RIC generally may elect to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">treat part or all of any post-October capital loss (defined as any net capital loss attributable to the portion, if any, of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxable year after October 31 or, if there is no such loss, the net long-term capital loss or net short-term capital loss </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">attributable to such portion of the taxable year) or late-year ordinary loss (generally, the sum of its (i) net ordinary loss </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from the sale, exchange or other taxable disposition of property, attributable to the portion, if any, of the taxable year </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">after October 31, and its (ii) other net ordinary loss attributable to the portion, if any, of the taxable year after </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">December 31) as if incurred in the succeeding taxable year.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the Fund were to fail to distribute in a calendar year at least an amount equal to the sum of 98% of its ordinary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income for such year and 98.2% of its capital gain net income recognized for the one-year period ending on October </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">31 of such year (or November 30 or December 31 of that year if the Fund is permitted to elect and so elects), plus any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such amounts retained from the prior year, the Fund would be subject to a nondeductible 4% excise tax on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">undistributed amounts. For purposes of the required excise tax distribution, a RIC&#8217;s ordinary gains and losses from the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sale, exchange, or other taxable disposition of property that would otherwise be taken into account after October 31 (or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">November 30 of that year if the RIC makes the election described above) generally are treated as arising on January 1 </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the following calendar year; in the case of a RIC with a December 31 year end that makes the election described </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">above, no such gains or losses will be so treated. Also, for these purposes, the Fund will be treated as having </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributed any amount on which it is subject to corporate income tax for the taxable year ending within the calendar </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">year. The Fund intends generally to make distributions sufficient to avoid imposition of the 4% excise tax, although </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">there can be no assurance that it will be able to or will do so.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Fund Distributions</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund intends to make monthly distributions. Unless a shareholder elects otherwise, all distributions will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">automatically reinvested in additional Common Shares of the Fund pursuant to the Fund&#8217;s Dividend Reinvestment Plan </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(see &#8220;Dividend Reinvestment Plan&#8221; in the Prospectus). A shareholder whose distributions are reinvested in Common </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shares under the Dividend Reinvestment Plan will be treated for U.S. federal income tax purposes as having received </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">an amount in distribution equal to either (i) if newly issued Common Shares are issued under the Dividend
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Reinvestment Plan, generally the fair market value of the newly issued Common Shares issued to the shareholder or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(ii) if reinvestment is made through open-market purchases under the Dividend Reinvestment Plan, the amount of cash </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">allocated to the shareholder for the purchase of Common Shares on its behalf in the open market. For U.S. federal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income tax purposes, all distributions are generally taxable in the manner described below, whether a shareholder takes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">them in cash or they are reinvested pursuant to the Dividend Reinvestment Plan in additional shares of the Fund.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">For U.S. federal income tax purposes, distributions of investment income other than
exempt-interest dividends </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(described below) are generally taxable as ordinary income. Taxes on distributions of capital gains are determined by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">how long the Fund owned (or is deemed to have owned) the investments that generated the gains, rather than how long </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a shareholder has owned his or her Common Shares. In general, the Fund will recognize long-term capital gain or loss </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on investments it has owned (or is deemed to have owned) for more than one year, and short-term capital gain or loss </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on investments it has owned (or is deemed to have owned) for one year or less. Tax rules can alter the Fund&#8217;s holding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">period in investments and thereby affect the tax treatment of gain or loss in respect of such investments. Distributions </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of net capital gain that are properly reported by the Fund as capital gain dividends (&#8220;Capital Gain Dividends&#8221;) will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxable to shareholders as long-term capital gains includible in net capital gain and taxed to individuals at reduced </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rates relative to ordinary income. Distributions of net short-term capital gain (as reduced by any net long-term capital </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loss for the taxable year) will be taxable to shareholders as ordinary income. The IRS and the Department of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Treasury have issued regulations that impose special rules in respect of Capital Gain Dividends received through </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">partnership interests constituting &#8220;applicable partnership interests&#8221; under Section 1061 of the Code.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Distributions of investment income reported by the Fund as &#8220;qualified dividend
income&#8221; received by an </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">individual will be taxed at the reduced rates applicable to net capital gain. In order for some portion of the dividends </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">received by the Fund shareholder to be qualified dividend income, the Fund must meet holding period and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements with respect to some portion of the dividend-paying stocks in its portfolio and the shareholder must meet </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holding period and other requirements with respect to the Fund&#8217;s shares. In general, a dividend will not be treated as </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">101</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_102"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">qualified dividend income (at either the Fund or shareholder level) (1) if the dividend is received with respect to any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">share of stock held for fewer than 61 days during the 121-day period beginning on the date which is 60 days before the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">date on which such share becomes ex-dividend with respect to such dividend (or, in the case of certain preferred stock, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">91 days during the 181-day period beginning 90 days before such date), (2) to the extent that the recipient is under an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to positions in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">substantially similar or related property, (3) if the recipient elects to have the dividend income treated as investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income for purposes of the limitation on deductibility of investment interest, or (4) if the dividend is received from a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign corporation that is (a) not eligible for the benefits of a comprehensive income tax treaty with the United States </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(with the exception of dividends paid on stock of such a foreign corporation readily tradable on an established </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities market in the United States) or (b) treated as a passive foreign investment company.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In general, distributions of investment income reported by the Fund as derived from qualified dividend income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will be treated as qualified dividend income by a shareholder taxed as an individual provided the shareholder meets the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holding period and other requirements described above with respect to the Fund&#8217;s shares.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In general, dividends of net investment income received by corporate shareholders of the Fund will qualify for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends-received deduction generally available to corporations only to the extent of the amount of eligible dividends </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">received by the Fund from domestic corporations for the taxable year if certain holding period and other requirements </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are met at both the shareholder and Fund levels. The Fund does not expect a significant portion of distributions to be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">eligible for the dividends-received deduction.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Distributions by the Fund to its shareholders that the Fund properly reports as &#8220;section 199A dividends,&#8221; as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">defined and subject to certain conditions described below, are treated as qualified REIT dividends in the hands of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-corporate shareholders. Non-corporate shareholders are permitted a federal income tax deduction equal to 20% of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">qualified REIT dividends received by them, subject to certain limitations. Very generally, a &#8220;section 199A dividend&#8221; is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any dividend or portion thereof that is attributable to certain dividends received by a RIC from REITs, to the extent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such dividends are properly reported as such by the RIC in a written notice to its shareholders. A section 199A </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend is treated as a qualified REIT dividend only if the shareholder receiving such dividend holds the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend-paying RIC shares for at least 46 days of the 91-day period beginning 45 days before the shares become </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ex-dividend, and is not under an obligation to make related payments with respect to a position in substantially similar </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or related property. The Fund is permitted to report such part of its dividends as section 199A dividends as are eligible, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">but is not required to do so.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Any distribution of income that is attributable to (i) income received by the Fund in lieu of dividends with respect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to securities on loan pursuant to a securities lending transaction or (ii) dividend income received by the Fund on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities it temporarily purchased from a counterparty pursuant to a repurchase agreement that is treated for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. federal income tax purposes as a loan by the Fund, will not constitute qualified dividend income to non-corporate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders and will not be eligible for the dividends-received deduction for corporate shareholders. Similarly, any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distribution of income that is attributable to (i) income received by the Fund in lieu of tax-exempt interest with respect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to securities on loan or (ii) tax-exempt interest received by the Fund on tax-exempt securities it temporarily purchased </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from a counterparty pursuant to a repurchase agreement that is treated for U.S. federal income tax purposes as a loan </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the Fund, will not constitute an exempt-interest dividend to shareholders.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The IRS currently requires a RIC that the IRS recognizes as having two or more &#8220;classes&#8221; of stock for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. federal income tax purposes to allocate to each such class proportionate amounts of each type of its income (such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as ordinary income and capital gains) based upon the percentage of total dividends distributed to each class for the tax </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">year. Accordingly, as applicable, the Fund intends each tax year to allocate Capital Gain Dividends for each tax year </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">between and among its Common Shares and each series of its Preferred Shares in proportion to the total dividends paid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to each class with respect to such tax year. Dividends qualifying for the dividends received deduction, as qualified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend income or as exempt-interest dividends will be allocated between and among Common Shares and each
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">series of Preferred Shares separately from dividends that do not so qualify, in each case in proportion to the total </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends paid to each share class for the Fund&#8217;s tax year.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Code generally imposes a 3.8% Medicare contribution tax on the net investment income of certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">individuals, trusts and estates to the extent their income exceeds certain threshold amounts. For these purposes, &#8220;net </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment income&#8221; generally includes, among other things, (i) distributions paid by the Fund of net investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income (other than exempt-interest dividends, described below) and capital gains as described above, and (ii) any net </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">102</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_103"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">gain from the sale, exchange or other taxable disposition of Fund shares. Common Shareholders are advised to consult </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">their tax advisors regarding the possible implications of this additional tax on their investment in the Fund.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If, in and with respect to any taxable year, the Fund makes a distribution in excess of its
current and accumulated </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;earnings and profits,&#8221; the excess distribution will be treated as a return of capital to the extent of a shareholder&#8217;s tax
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">basis in his or her Common Shares, and thereafter as capital gain. A return of capital is not taxable, but it reduces a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder&#8217;s basis in his or her shares, thus reducing any loss or increasing any gain on a subsequent taxable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disposition by the shareholder of such shares. Where one or more such distributions occur in and with respect to any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxable year of the Fund, the available earnings and profits will be allocated first to the distributions made to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holders of Preferred Shares, and only thereafter to distributions made to holders of Common Shares. As a result, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holders of Preferred Shares will receive a disproportionate share of the distributions, if any, treated as dividends, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the holders of the Common Shares will receive a disproportionate share of the distributions, if any, treated as a return </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of capital.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A distribution by the Fund will be treated as paid on December 31 of any calendar year if
it is declared by the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund in October, November or December with a record date in such a month and paid by the Fund during January of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the following calendar year. Such distributions will be taxable to shareholders in the calendar year in which the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions are declared, rather than the calendar year in which the distributions are received.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As required by federal law, detailed federal tax information with respect to each calendar year will be furnished to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders early in the succeeding year. Dividends and distributions on Common Shares are generally subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. federal income tax as described herein to the extent they do not exceed the Fund&#8217;s realized income and gains, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">even though such dividends and distributions may economically represent a return of a particular shareholder&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment. Such distributions are likely to occur in respect of Common Shares purchased at a time when the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">net asset value reflects unrealized gains or income or gains that are realized but not yet distributed. Such realized </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income and gains may be required to be distributed even when the Fund&#8217;s net asset value also reflects unrealized </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">losses.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If
the Fund holds, directly or indirectly, one or more Build America Bonds issued before January 1, 2011, or other </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax credit bonds issued on or before December 31, 2017, on
one or more applicable dates during a taxable year, it is </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">possible that the Fund will elect to permit its shareholders to claim a tax credit on their income tax returns
equal to </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">each shareholder&#8217;s proportionate share of tax credits from the applicable bonds that otherwise would be allowed to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund. In such a case, a shareholder will be deemed to receive a distribution of money with respect to its Fund shares </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">equal to the shareholder&#8217;s proportionate share of the amount of such credits and be allowed a credit against the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder&#8217;s U.S. federal income tax liability equal to the amount of such deemed distribution, subject to certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limitations imposed by the Code on the credits involved. Even if the Fund is eligible to pass through tax credits to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders, the Fund may choose not to do so.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If for any taxable year the Fund were not a &#8220;publicly offered&#8221; RIC within the meaning of Code </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Section 67(c)(2)(B), certain of the Fund&#8217;s direct and indirect expenses would be subject to special &#8220;pass-through&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rules. Very generally, pursuant to Treasury Department regulations, expenses of a RIC that is not &#8220;publicly offered,&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">except those specific to its status as a RIC or separate entity (e.g., registration fees or transfer agency fees), are subject </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to special &#8220;pass-through&#8221; rules. These expenses (which include direct and certain indirect advisory fees) are treated as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">additional dividends to certain Fund shareholders (generally including other RICs that are not &#8220;publicly offered,&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">individuals and entities that compute their taxable income in the same manner as an individual) and, under current law, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are not deductible by those shareholders that are individuals (or entities that compute their taxable income in the same </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">manner as an individual).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Exempt-Interest Dividends</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund will be qualified to pay exempt-interest dividends to its shareholders if, at the close of each quarter of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s taxable year, at least 50% of the total value of the Fund&#8217;s assets consists of obligations the interest on which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is exempt from federal income tax under Section 103(a) of the Code. Distributions that the Fund reports as
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">exempt-interest dividends are treated as interest excludable from shareholders&#8217; gross income for federal income tax </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purposes but may be taxable for federal AMT purposes and for state and local purposes.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">103</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_104"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Part or all of the interest on indebtedness, if any, incurred or continued by a shareholder to purchase or carry </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shares of the Fund paying exempt-interest dividends is not deductible. The portion of interest that is not deductible is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">equal to the total interest paid or accrued on the indebtedness, multiplied by the percentage of the Fund&#8217;s total </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions (not including distributions from net long-term capital gains) paid to the shareholder that are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exempt-interest dividends. Under rules used by the IRS to determine when borrowed funds are considered used for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purpose of purchasing or carrying particular assets, the purchase of shares may be considered to have been made with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">borrowed funds even though such funds are not directly traceable to the purchase of shares.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A shareholder who receives Social Security or railroad retirement benefits should consult his or her tax adviser to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">determine what effect, if any, an investment in the Fund may have on the federal taxation of such benefits. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Exempt-interest dividends generally are included in income for purposes of determining the amount of benefits that are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxable.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In
general, exempt-interest dividends, if any, attributable to interest received on certain private activity obligations </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and certain industrial development bonds will not be
tax-exempt to any shareholders who are &#8220;substantial users&#8221; of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">facilities financed by such obligations or bonds or who are &#8220;related persons&#8221; of
such substantial users.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund will notify its shareholders in a written
statement of the portion of distributions for the taxable year that </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">constitutes exempt-interest dividends.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Exempt-interest dividends may be taxable for purposes of the federal AMT. For individual
shareholders, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">exempt-interest dividends that are derived from interest on private activity bonds that are issued after August 7, 1986 </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(other than a &#8220;qualified 501(c)(3) bond,&#8221; as such term is defined in the Code) generally must be included in an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">individual&#8217;s tax base for purposes of calculating the shareholder&#8217;s liability for U.S. federal AMT.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Sales, Exchanges or Repurchases of Shares</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The sale, exchange or repurchase of Fund shares may give rise to a gain or loss. In
general, any gain or loss </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">realized upon a taxable disposition of Fund shares treated as a sale or exchange for U.S. federal income tax purposes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will be treated as long-term capital gain or loss if the shares have been held for more than 12 months. Otherwise, such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">gain or loss on the taxable disposition of Fund shares will be treated as short-term capital gain or loss. However, any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loss realized upon a taxable disposition of Fund shares held for six months or less (i) will be treated as long-term, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rather than short-term, to the extent of any long-term capital gain distributions received (or deemed received) by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder with respect to the shares and (ii) generally will be disallowed to the extent of any exempt-interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends received by the shareholder with respect to the shares. All or a portion of any loss realized upon a taxable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disposition of Fund shares will be disallowed under the Code&#8217;s &#8220;wash sale&#8221; rule if other substantially identical shares </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund are purchased within 30 days before or after the disposition. In such a case, the basis of the newly </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purchased shares will be adjusted to reflect the disallowed loss.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In the event that the Fund repurchases a shareholder&#8217;s Common Shares (as described in the Prospectus), such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">repurchase generally will be treated as a sale or exchange of the shares by a shareholder provided that (i) the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder tenders, and the Fund repurchases, all of such shareholder&#8217;s shares (and such shareholder does not hold </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and is not deemed to hold any Preferred Shares), thereby reducing the shareholder&#8217;s percentage ownership of the Fund, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">whether directly or by attribution under Section 318 of the Code, to 0%, (ii) the shareholder meets numerical safe </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">harbors under the Code with respect to percentage voting interest and reduction in ownership of the Fund following </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">completion of the tender offer, or (iii) the tender offer otherwise results in a &#8220;meaningful reduction&#8221; of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder&#8217;s ownership percentage interest in the Fund, which determination depends on a particular shareholder&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">facts and circumstances.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If a tendering shareholder&#8217;s proportionate ownership of the Fund (determined after applying the ownership </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">attribution rules under Section 318 of the Code) is not reduced to the extent required under the tests described above, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such shareholder will be deemed to receive a distribution from the Fund under Section 301 of the Code with respect to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the shares held (or deemed held under Section 318 of the Code) by the shareholder after the tender offer (a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Section 301 distribution&#8221;). The amount of this distribution will equal the price paid by the Fund to such shareholder </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for the shares sold, and will be taxable as a dividend, (i.e., as ordinary income) to the extent of the Fund&#8217;s current or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accumulated earnings and profits allocable to such distribution, with the excess treated as a return of capital reducing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the shareholder&#8217;s tax basis in the shares held after the tender offer, and thereafter as capital gain. In the event a </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">104</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_105"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">repurchase is treated as a Section 301 distribution, any Fund shares held by a shareholder thereafter will be subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">basis adjustments in accordance with the provisions of the Code.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Provided that no tendering shareholder is treated as receiving a Section 301 distribution as a result of selling </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Common Shares pursuant to a particular tender offer, shareholders who do not sell shares pursuant to that tender offer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will not realize constructive distributions on their shares as a result of other shareholders selling shares in the tender </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offer. In the event that any tendering shareholder is deemed to receive a Section 301 distribution, it is possible that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders whose proportionate ownership of the Fund increases as a result of that tender offer, including </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders who do not tender any shares, will be deemed to receive a constructive distribution under Section 305(c) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Code in an amount equal to the increase in their percentage ownership of the Fund as a result of the tender offer. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Such constructive distribution will be treated as a dividend to the extent of current or accumulated earnings and profits </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">allocable to it.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Use of the Fund&#8217;s cash to repurchase shares may adversely affect the Fund&#8217;s ability to satisfy the distribution </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirements for treatment as a RIC described above. The Fund may also recognize income in connection with the sale </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of portfolio securities to fund share purchases, in which case the Fund would take any such income into account in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">determining whether such distribution requirements have been satisfied.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the Fund were to repurchase Common Shares on the open market, such repurchase would similarly result in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">percentage increase in the interests of remaining shareholders. In such a case, a selling shareholder would likely have </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">no specific knowledge that he or she is selling his or her shares to the Fund. It is therefore less likely that shareholders </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">whose percentage share interests in the Fund increase as a result of any such open-market sale will be treated as having </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">received a taxable distribution from the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The foregoing discussion does not address the tax treatment of tendering shareholders who do not hold their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shares as a capital asset. Such shareholders should consult their own tax advisors on the specific tax consequences to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">them of participating or not participating in the tender offer.</font></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Issuer Deductibility of Interest</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A portion of the interest paid or accrued on certain high-yield discount obligations owned by the Fund may not, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and interest paid on debt obligations, if any, that are considered for tax purposes to be payable in the equity of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer or a related party will not, be deductible to the issuer. This may affect the cash flow of the issuer. If a portion of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the interest paid or accrued on certain high-yield discount obligations is not deductible, that portion will be treated as a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend paid by the issuer for purposes of the corporate dividends received deduction. In such cases, if the issuer of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the high-yield discount obligations is a domestic corporation, dividend payments by the Fund may be eligible for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends-received deduction to the extent attributable to the deemed dividend portion of such accrued interest.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Original Issue Discount, Payment-in-Kind Securities, Market Discount, Preferred Securities, and
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Commodity-Linked Notes</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some debt obligations with a fixed maturity date of more than one year from the date of issuance (and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">zero-coupon debt obligations with a fixed maturity date of more than one year from the date of issuance) will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">treated as debt obligations that are issued originally at a discount. Generally, the amount of the original issue discount </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;OID&#8221;) is treated as interest income and is included in the Fund&#8217;s income and required to be distributed over the term </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the debt obligation, even though payment of that amount is not received until a later time, upon partial or full </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">repayment or disposition of the debt obligation. Increases in the principal amount of an inflation-indexed bond will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally be treated as OID.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some debt obligations with a fixed maturity date of more than one year from the date of issuance that are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">acquired by the Fund in the secondary market may be treated as having &#8220;market discount.&#8221; Very generally, market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discount is the excess of the stated redemption price of a debt obligation (or in the case of an obligation issued with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">OID, its &#8220;revised issue price&#8221;) over the purchase price of such obligation. Generally, (i) any gain recognized on the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disposition of, and any partial payment of principal on, a debt obligation having market discount is treated as ordinary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income to the extent the gain, or principal payment, does not exceed the &#8220;accrued market discount&#8221; on such debt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligation, (ii) alternatively, the Fund may elect to accrue market discount currently, in which case the Fund will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">required to include the accrued market discount on such debt obligations in the Fund&#8217;s income (as ordinary income) </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">105</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_106"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">and thus distribute it over the term of the debt obligations, even though payment of that amount is not received until a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">later time, upon partial or full repayment or disposition of the debt obligations, and (iii) the rate at which the market </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discount accrues, and thus is included in the Fund&#8217;s income, will depend upon which of the permitted accrual methods </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund elects. The Fund reserves the right to revoke such an election at any time pursuant to applicable IRS </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">procedures. In the case of higher-risk securities, the amount of market discount may be unclear. See &#8220;Higher-Risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Securities.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">From time to time, a substantial portion of the Fund&#8217;s investments in loans and other debt obligations could be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">treated as having OID and/or market discount, which, in some cases could be significant. To generate sufficient cash to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">make the requisite distributions, the Fund may be required to sell securities in its portfolio (including when it is not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">advantageous to do so) that it otherwise would have continued to hold.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A portion of the OID accrued on certain high yield discount obligations may not be deductible to the issuer and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will instead be treated as a dividend paid by the issuer for purposes of the dividends-received deduction. In such cases, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">if the issuer of the high yield discount obligations is a domestic corporation, dividend payments by the Fund may be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">eligible for the dividends-received deduction to the extent attributable to the deemed dividend portion of such OID.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some debt obligations with a fixed maturity date of one year or less from the date of
issuance may be treated as </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">having OID or, in certain cases, &#8220;acquisition discount&#8221; (very generally, the excess of the stated redemption price over </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the purchase price). The Fund will be required to include the OID or acquisition discount in income (as ordinary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income) and thus distribute it over the term of the debt obligation, even though payment of that amount is not received </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">until a later time, upon partial or full repayment or disposition of the debt obligation. The rate at which OID or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">acquisition discount accrues, and thus is included in the Fund&#8217;s income, will depend upon which of the permitted </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accrual methods the Fund elects.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Some preferred securities may include provisions that permit the issuer, at its discretion, to defer the payment of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions for a stated period without any adverse consequences to the issuer. If the Fund owns a preferred security </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that is deferring the payment of its distributions, the Fund may be required to report income for U.S. federal income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax purposes to the extent of any such deferred distributions even though the Fund has not yet actually received the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cash distribution.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, pay-in-kind obligations will, and commodity-linked notes may, give rise to income that is required to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be distributed and is taxable even though the Fund receives no interest payment in cash on the security during the year.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the Fund holds the foregoing kinds of obligations, or other obligations subject to
special rules under the Code, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund may be required to pay out as an income distribution each year an amount which is greater than the total </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amount of cash interest the Fund actually received. Such distributions may be made from the cash assets of the Fund or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by disposition of portfolio securities, if necessary (including when it is not advantageous to do so). The Fund may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">realize gains or losses from such dispositions, including short-term capital gains taxable as ordinary income. In the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">event the Fund realizes net capital gains from such transactions, its shareholders may receive a larger capital gain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distribution than they might otherwise receive in the absence of such transactions.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Higher-Risk Securities</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest in debt obligations that are in the lowest rating categories or are unrated, including debt </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obligations of issuers not currently paying interest or who are in default. Investments in debt obligations that are at risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of or in default present special tax issues for the Fund. Tax rules are not entirely clear about issues such as whether or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to what extent the Fund should recognize market discount on a debt obligation; when the Fund may cease to accrue </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest, OID or market discount, when and to what extent the Fund may take deductions for bad debts or worthless </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities and how the Fund should allocate payments received on obligations in default between principal and income. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">These and other related issues will be addressed by the Fund when, as and if it invests in such securities, in order to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">seek to ensure that it distributes sufficient income to preserve its status as a RIC and does not become subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">federal income or excise tax.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">106</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_107"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Securities Purchased at a Premium</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Very generally, where the Fund purchases a bond at a price that exceeds the redemption price at maturity (i.e., at a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">premium), the Fund may elect to amortize the premium over the remaining term of the bond which election would </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">apply to all bonds (other than bonds the interest on which is excludible from gross income for U.S. federal income tax </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purposes) held by the Fund. In the case of a taxable bond, if the Fund makes such election, which election is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">irrevocable without consent of the IRS, the Fund reduces the current taxable income from the bond by the amortized </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">premium and reduces its tax basis in the bond by the amount of such offset; upon the disposition or maturity of such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">bonds, the Fund is permitted to deduct any remaining premium allocable to a prior period. If the Fund does not elect to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">take bond premium into account currently, it will recognize a capital loss when the bond matures. In the case of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax-exempt bond, tax rules require the Fund to reduce its tax basis by the amount of amortized premium.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Catastrophe Bonds</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The proper tax treatment of income or loss realized by the retirement or sale of certain catastrophe bonds is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">unclear. The Fund will report such income or loss as capital or ordinary income or loss in a manner consistent with any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">IRS position on the subject following the publication of such a position.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Passive Foreign Investment Companies</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Equity investments by the Fund in certain &#8220;passive foreign investment companies&#8221; (&#8220;PFICs&#8221;) could subject the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund to a U.S. federal income tax (including interest charges) on distributions received from the PFIC or on proceeds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">received from the disposition of shares in the PFIC. This tax cannot be eliminated by making distributions to Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders. However, the Fund may elect to treat a PFIC as a &#8220;qualified electing fund&#8221; (i.e., make a &#8220;QEF election&#8221;), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in which case the Fund will be required to include its share of the company&#8217;s income and net capital gains annually, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regardless of whether it receives any distribution from the company. Under U.S. Treasury Regulations, any such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income or net capital gain of the PFIC that is required to be included in the Fund&#8217;s gross income is qualifying income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the extent derived with respect to the Fund&#8217;s business of investing in stock, securities or currencies. The Fund also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may make an election to mark the gains (and to a limited extent losses) in such holdings &#8220;to the market&#8221; as though it </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">had sold and repurchased its holdings in those PFICs on the last day of the Fund&#8217;s taxable year. Such gains and losses </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">are treated as ordinary income and loss. The QEF and mark-to-market elections may accelerate the recognition of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income (without the receipt of cash) and increase the amount required to be distributed by the Fund to avoid taxation. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Making either of these elections therefore may require the Fund to sell other investments (including when it is not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">advantageous to do so) to meet its distribution requirement, which also may accelerate the recognition of gain and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">affect the Fund&#8217;s total return. Because it is not always possible to identify a foreign corporation as a PFIC, the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may incur the tax and interest charges described above in some instances. Dividends paid by PFICs will not be eligible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to be treated as &#8220;qualified dividend income.&#8221;</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Certain Investments in REITs</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Any investment by the Fund in equity securities of REITs may result in the Fund&#8217;s receipt of cash in excess of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">REIT&#8217;s earnings; if the Fund distributes these amounts, these distributions could constitute a return of capital to Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders for U.S. federal income tax purposes. Investments in REIT equity securities also may require the Fund to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accrue and to distribute income not yet received. To generate sufficient cash to make the requisite distributions, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may be required to sell securities in its portfolio (including when it is not advantageous to do so) that it otherwise </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would have continued to hold. Dividends received by the Fund from a REIT generally will not constitute qualified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend income.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Distributions by the Fund to its shareholders that the Fund properly reports as &#8220;section 199A dividends,&#8221; as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">defined and subject to certain conditions described above, are treated as qualified REIT dividends in the hands of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">non-corporate shareholders.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Foreign Currency Transactions</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund&#8217;s transactions in foreign currencies, foreign currency-denominated debt obligations and certain foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">currency options, futures contracts and forward contracts (and similar instruments) may give rise to ordinary income or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loss to the extent such income or loss results from fluctuations in the value of the foreign currency concerned. Any </font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">107</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_108"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;">such net gains could require a larger dividend toward the end of the calendar year. Any such net losses will generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reduce and potentially require the recharacterization of prior ordinary income distributions, and may accelerate Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions to shareholders and increase the distributions taxed to shareholders as ordinary income. Any net ordinary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">losses so created cannot be carried forward by the Fund to offset income or gains earned in subsequent taxable years.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Options, Futures, and Forward Contracts, Swap Agreements, and other Derivatives</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In general, option premiums received by the Fund are not immediately included in the income
of the Fund. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Instead, the premiums are recognized when the option contract expires, the option is exercised by the holder, or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund transfers or otherwise terminates the option (e.g., through a closing transaction). If a call option written by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund is exercised and the Fund sells or delivers the underlying stock, the Fund generally will recognize capital gain or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loss equal to (a) the sum of the strike price and the option premium received by the Fund minus (b) the Fund&#8217;s basis in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the stock. Such gain or loss generally will be short-term or long-term depending upon the holding period of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">underlying stock. If securities are purchased by the Fund pursuant to the exercise of a put option written by it, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund will generally subtract the premium received for purposes of computing its cost basis in the stock purchased. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Gain or loss arising in respect of a termination of the Fund&#8217;s obligation under an option other than through the exercise </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the option will be short-term capital gain or loss depending on whether the premium income received by the Fund is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">greater or less than the amount paid by the Fund (if any) in terminating the transaction. Thus, for example, if an option </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">written by the Fund expires unexercised, the Fund generally will recognize short-term capital gain equal to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">premium received.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund&#8217;s options activities may include transactions constituting straddles for U.S. federal income tax purposes, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that is, that trigger the U.S. federal income tax straddle rules contained primarily in Section 1092 of the Code. Such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">straddles include, for example, positions in a particular security, or an index of securities, and one or more options that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offset the former position, including options that are &#8220;covered&#8221; by the Fund&#8217;s long position in the subject security. Very </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">generally, where applicable, Section 1092 requires (i) that losses be deferred on positions deemed to be offsetting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">positions with respect to &#8220;substantially similar or related property&#8221; to the extent of unrealized gain in the latter, and (ii) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that the holding period of such a straddle position that has not already been held for the long-term holding period be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">terminated and begin anew once the position is no longer part of a straddle. Options on single stocks that are not &#8220;deep </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the money&#8221; may constitute qualified covered calls, which generally are not subject to the straddle rules; the holding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">period on stock underlying qualified covered calls that are &#8220;in the money&#8221; although not &#8220;deep in the money&#8221; will be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">suspended during the period that such calls are outstanding. Thus, the straddle rules and the rules governing qualified </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">covered calls could cause gains that would otherwise constitute long-term capital gains to be treated as short-term </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital gains, and distributions that would otherwise constitute &#8220;qualified dividend income&#8221; or qualify for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends-received deduction to fail to satisfy the holding period requirements and therefore to be taxed as ordinary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income or to fail to qualify for the dividends received deduction, as the case may be.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The tax treatment of certain positions entered into by the Fund, including regulated futures contracts, certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign currency positions and certain listed non-equity options, will be governed by section 1256 of the Code </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;section 1256 contracts&#8221;). Gains or losses on section 1256 contracts generally are considered 60% long-term and 40% </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">short-term capital gains or losses (&#8220;60/40&#8221;), although certain foreign currency gains and losses from such contracts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be treated as ordinary in character. Also, section 1256 contracts held by the Fund at the end of each taxable year </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(and, for purposes of the 4% excise tax, on certain other dates as prescribed under the Code) are &#8220;marked-to-market&#8221; </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the result that unrealized gains or losses are treated as though they were realized and the resulting gain or loss is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">treated as ordinary or 60/40 gain or loss, as applicable.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Derivatives, Hedging, and Other Transactions</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition to the special rules described above in respect of futures and options transactions, the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions in other derivatives instruments (e.g., forward contracts and swap agreements), as well as any of its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">hedging, short sale, securities loan or similar transactions may be subject to one or more special tax rules (e.g., </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">notional principal contract, constructive sale, straddle, wash sale and short sale rules). These rules may affect whether </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">gains and losses recognized by the Fund are treated as ordinary or capital, accelerate the recognition of income or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">gains to the Fund, defer losses to the Fund, and cause adjustments in the holding periods of the Fund&#8217;s securities, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">thereby affecting, among other things, whether capital gains and losses are treated as short-term or long-term. These </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rules could, therefore, affect the amount, timing and/or character of distributions to shareholders.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">108</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_109"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Because these and other tax rules applicable to these types of transactions are in some cases uncertain under </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">current law, an adverse determination or future guidance by the IRS with respect to these rules (which determination or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guidance could be retroactive) may affect whether the Fund has made sufficient distributions, and otherwise satisfied </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the relevant requirements, to maintain its qualification as a RIC and avoid a fund-level tax.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Commodities and Commodity-Linked Instruments</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund&#8217;s investments in commodities and commodity-linked instruments, if any, will potentially be limited by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s intention to qualify as a RIC, and will potentially limit the Fund&#8217;s ability to so qualify. Income and gains </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from commodities and certain commodity-linked instruments do not constitute qualifying income to a RIC for
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">purposes of the 90% gross income test described above. In addition, the tax treatment of some other commodity-linked </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instruments in which the Fund might invest is not certain, in particular with respect to whether income or gains from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such instruments constitute qualifying income to a RIC. If the Fund were to treat income or gain from a particular </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrument as qualifying income and the income or gain were later determined not to constitute qualifying income, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and, together with any other nonqualifying income, caused the Fund&#8217;s nonqualifying income to exceed 10% of its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">gross income in any taxable year, the Fund would fail to qualify as a RIC unless it is eligible to and does pay a tax at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund level.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Book-Tax Differences</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Certain of the Fund&#8217;s investments in derivative instruments and foreign
currency-denominated instruments, and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">any of the Fund&#8217;s transactions in foreign currencies and hedging activities, are likely to produce a difference between
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">its book income and the sum of its taxable income and net tax-exempt income. If such a difference arises, and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s book income is less than the sum of its taxable income and net tax-exempt income (if any), the Fund could be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment and to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">avoid an entity-level tax. In the alternative, if the Fund&#8217;s book income exceeds the sum of its taxable income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(including realized capital gains) and net tax-exempt income&nbsp;(if any), the distribution (if any) of such excess generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will be treated as (i) a dividend to the extent of the Fund&#8217;s remaining earnings and profits&nbsp;(including earnings and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">profits arising from tax-exempt income), (ii) thereafter, as a return of capital to the extent of the recipient&#8217;s basis in its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shares and (iii) thereafter, as gain from the sale or exchange of a capital asset.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Short Sales</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the Fund participates in a short sale and, on the date of such short sale, the Fund either (i) does not hold </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities substantially identical to those sold short or (ii) has held such substantially identical securities for one year or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">less, the character of gain or loss realized on such a short sale generally will be short-term. If the Fund participates in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">short sale and, on the date of such short sale, the Fund has held substantially identical securities for more than one </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">year, the character of gain realized on such short sale will be determined by reference to the Fund&#8217;s holding period in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the property actually used to close the short sale; the character of loss realized on such short sale generally will be long </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">term, regardless of the holding period of the securities actually used to close such short sale. Because net short-term </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">capital gain (after reduction by any long-term capital loss) is generally taxed at ordinary income rates, the Fund&#8217;s short </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sale transactions can increase the percentage of the Fund&#8217;s gains that are taxable to shareholders as ordinary income.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Mortgage-Related Securities</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may invest directly or indirectly in REMICs (including by investing in residual
interests in CMOs with </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">respect to which an election to be treated as a REMIC is in effect) or equity interests in TMPs. Under a notice issued </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the IRS in October 2006 and U.S. Treasury Regulations that have yet to be issued but may apply retroactively, a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">portion of the Fund&#8217;s income (including income allocated to the Fund from a REIT or other pass-through entity) that is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">attributable to a residual interest in a REMIC or an equity interest in a TMP &#8212; referred to in the Code as an &#8220;excess </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">inclusion&#8221;&#8212; will be subject to U.S. federal income tax in all events. This notice also provides, and the regulations are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expected to provide, that &#8220;excess inclusion income&#8221; of a RIC, such as the Fund, will be allocated to shareholders of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">RIC in proportion to the dividends received by such shareholders, with the same consequences as if the shareholders </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">held the related interest directly. As a result, the Fund may not be a suitable investment for charitable remainder trusts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;CRTs&#8221;), as noted below.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">109</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_110"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In general, excess inclusion income allocated to shareholders (i) cannot be offset by net operating losses (subject </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to a limited exception for certain thrift institutions), (ii) will constitute unrelated business taxable income (&#8220;UBTI&#8221;) to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entities (including a qualified pension plan, an individual retirement account, a 401(k) plan, a Keogh plan or other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax-exempt entity) subject to tax on UBTI, thereby potentially requiring such an entity that is allocated excess </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">inclusion income, and otherwise might not be required to file a U.S. federal income tax return, to file such a tax return </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and pay tax on such income and (iii) in the case of a non-U.S. shareholder, will not qualify for any reduction in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. federal withholding tax. A shareholder will be subject to U.S. federal income tax on such inclusions
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">notwithstanding any exemption from such income tax otherwise available under the Code.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Non-U.S. Taxation</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Income, proceeds and gains received by the Fund from sources within foreign countries may be subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">withholding and other taxes imposed by such countries, which will reduce the return on those investments. Tax treaties </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">between certain countries and the United States may reduce or eliminate such taxes.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If, at the close of its taxable year, more than 50% of the value of the Fund&#8217;s total assets consists of securities of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign corporations, including for this purpose foreign governments, the Fund will be permitted to make an election </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">under the Code that will allow shareholders a deduction or credit for foreign taxes paid by the Fund. In such a case, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders will include in gross income from foreign sources their pro rata shares of such taxes. A shareholder&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">ability to claim an offsetting foreign tax credit or deduction in respect of such foreign taxes is subject to certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limitations imposed by the Code, which may result in the shareholders not receiving a full credit or deduction (if any) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for the amount of such taxes. Shareholders who do not itemize on their U.S. federal income tax returns may claim a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">credit (but not a deduction) for such foreign taxes. If the Fund does not qualify for or chooses not to make such an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">election, shareholders will not be entitled separately to claim a credit or deduction for U.S. federal income tax </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">purposes with respect to foreign taxes paid by the Fund; in that case the foreign tax will nonetheless reduce the Fund&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">taxable income. Even if the Fund elects to pass through to its shareholders foreign tax credits or deductions, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax-exempt shareholders and those who invest in the Fund through tax-advantaged accounts (including those who </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">invest through individual retirement accounts or other tax-advantaged retirement plans) will not benefit from any such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax credit or deduction. Shareholders generally are not expected to be entitled to claim a credit or deduction with </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">respect to foreign taxes incurred by the Fund. This will decrease the Fund&#8217;s yield on securities subject to such taxes.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Tax-Exempt Shareholders</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Income of a RIC that would be UBTI if earned directly by a tax-exempt entity will not
generally be attributed as </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">UBTI to a tax-exempt shareholder of the RIC. Notwithstanding this &#8220;blocking&#8221; effect, a tax-exempt shareholder could </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">realize UBTI by virtue of its investment in the Fund if shares in the Fund constitute debt-financed property in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">hands of the tax-exempt shareholder within the meaning of Code Section 514(b). A tax-exempt shareholder may also </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recognize UBTI if the Fund recognizes &#8220;excess inclusion income&#8221; derived from direct or indirect investments in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">residual interests in REMICs or equity interests in TMPs as described above, if the amount of such income recognized </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by the Fund exceeds the Fund&#8217;s investment company taxable income (after taking into account deductions for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends paid by the Fund).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In addition, special tax consequences apply to CRTs that invest in RICs that invest directly or indirectly in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">residual interests in REMICs or equity interests in TMPs. Under legislation enacted in December 2006, if a CRT, as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">defined in Section 664 of the Code, realizes any UBTI for a taxable year, a 100% excise tax is imposed on such UBTI. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Under IRS guidance issued in October 2006, a CRT will not recognize UBTI solely as a result of investing in a RIC </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that recognizes &#8220;excess inclusion income.&#8221; Rather, if at any time during any taxable year a CRT (or one of certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other tax-exempt shareholders, such as the United States, a state or political subdivision, or an agency or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrumentality thereof, and certain energy cooperatives) is a record holder of a share in a RIC that recognizes &#8220;excess </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">inclusion income,&#8221; then the RIC will be subject to a tax on that portion of its &#8220;excess inclusion income&#8221; for the taxable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">year that is allocable to such shareholders at the highest federal corporate income tax rate. The extent to which this IRS </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">guidance remains applicable in light of the December 2006 legislation is unclear. To the extent permitted under the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">1940 Act, the Fund may elect to specially allocate any such tax to the applicable CRT, or other shareholder, and thus </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reduce such shareholder&#8217;s distributions for the year by the amount of the tax that relates to such shareholder&#8217;s interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the Fund. CRTs and other tax-exempt shareholders are urged to consult their tax advisors concerning the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">consequences of investing in the Fund.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">110</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_111"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Non-U.S. Shareholders</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Distributions by the Fund to shareholders that are not &#8220;United States persons&#8221; within the meaning of the Code </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;foreign shareholders&#8221;) properly reported by the Fund as (1) Capital Gain Dividends, (2) short-term capital gain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends, (3) interest-related dividends, each as defined and subject to certain conditions described below, or (4) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exempt-interest dividends generally are not subject to withholding of U.S. federal income tax (except that
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">exempt-interest dividends may be subject to backup withholding).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In general, the Code defines (1) &#8220;short-term capital gain dividends&#8221; as distributions of net short-term capital gains </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in excess of net long-term capital losses and (2) &#8220;interest-related dividends&#8221; as distributions from U.S. source interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income of types similar to those not subject to U.S. federal income tax if earned directly by an individual foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder, in each case to the extent such distributions are properly reported as such by the Fund in a written notice </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to shareholders. The exceptions to withholding for Capital Gain Dividends and short-term capital gain dividends do </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not apply to (A) distributions to an individual foreign shareholder who is present in the United States for a period or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">periods aggregating 183 days or more during the year of the distribution and (B) distributions attributable to gain that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is effectively connected with the conduct by the foreign shareholder of a trade or business within the United States </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">under special rules regarding the disposition of U.S. real property interests as described below. If the Fund invests in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">RIC that pays such distributions to the Fund, such distributions retain their character as not subject to withholding if </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">properly reported when paid by the Fund to foreign shareholders. The exception to withholding for interest-related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends does not apply to distributions to a foreign shareholder (A) that has not provided a satisfactory statement that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the beneficial owner is not a United States person, (B) to the extent that the dividend is attributable to certain interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on an obligation if the foreign shareholder is the issuer or is a 10% shareholder of the issuer, (C) that is within certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign countries that have inadequate information exchange with the United States, or (D) to the extent the dividend is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">attributable to interest paid by a person that is a related person of the foreign shareholder and the foreign shareholder is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a controlled foreign corporation.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund is permitted to report such part of its dividends as interest-related or short-term capital gain dividends </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as are eligible, but is not required to do so. In the case of shares held through an intermediary, the intermediary may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">withhold even if the Fund reports all or a portion of a payment as an interest-related or short-term capital gain dividend </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to shareholders. Foreign shareholders should contact their intermediaries regarding the application of withholding rules </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to their accounts.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Distributions by the Fund to foreign shareholders other than Capital Gain Dividends, short-term capital gain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends, interest-related dividends, and exempt-interest dividends (e.g., dividends attributable to dividend and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">foreign-source interest income or to short-term capital gains or U.S. source interest income to which the exception </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from withholding described above does not apply) are generally subject to withholding of U.S. federal income tax at a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">rate of 30% (or lower applicable treaty rate).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A foreign shareholder is not, in general, subject to U.S. federal income tax on gains (and is not allowed a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deduction for losses) realized on the sale of shares of the Fund unless (i) such gain is effectively connected with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">conduct by the foreign shareholder of a trade or business within the United States, (ii) in the case of a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder that is an individual, the shareholder is present in the United States for a period or periods aggregating </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">183 days or more during the year of the sale and certain other conditions are met, or (iii) the special rules relating to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">gain attributable to the sale or exchange of &#8220;U.S. real property interests&#8221; (&#8220;USRPIs&#8221;) apply to the foreign shareholder&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sale of shares of the Fund (as described below).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Foreign shareholders with respect to whom income from the Fund is effectively connected with a trade or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">business conducted by the foreign shareholder within the United States will in general be subject to U.S. federal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income tax on the income derived from the Fund at the graduated rates applicable to U.S. citizens, residents or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">domestic corporations, whether such income is received in cash or reinvested in shares of the Fund and, in the case of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a foreign corporation, may also be subject to a branch profits tax. If a foreign shareholder is eligible for the benefits of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a tax treaty, any effectively connected income or gain will generally be subject to U.S. federal income tax on a net </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">basis only if it is also attributable to a permanent establishment maintained by the shareholder in the United States. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">More generally, foreign shareholders who are residents in a country with an income tax treaty with the United States </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may obtain different tax results than those described herein, and are urged to consult their tax advisors.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">111</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_112"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Special rules would apply if the Fund were a qualified investment entity (&#8220;QIE&#8221;) because it is either a &#8220;U.S. real </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">property holding corporation&#8221; (&#8220;USRPHC&#8221;) or would be a USRPHC but for the operation of certain exceptions to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">definition thereof. Very generally, a USRPHC is a domestic corporation that holds USRPIs the fair market value of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which equals or exceeds 50% of the sum of the fair market values of the corporation&#8217;s USRPIs, interests in real </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">property located outside the United States, and other trade or business assets. USRPIs are generally defined as any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest in U.S. real property and any interest (other than solely as a creditor) in a USRPHC or, very generally, an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entity that has been a USRPHC in the last five years. A RIC that holds, directly or indirectly, significant interests in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">REITs may be a USRPHC. Interests in domestically controlled QIEs, including REITs and RICs that are QIEs,
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">not-greater-than-10% interests in publicly traded classes of stock in REITs and not-greater-than-5% interests in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">publicly traded classes of stock in RICs generally are not USRPIs, but these exceptions do not apply for purposes of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">determining whether the Fund is a QIE.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If an interest in the Fund were a USRPI, the Fund would be required to withhold U.S. tax on the proceeds of a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">share repurchase by a greater-than-5% foreign shareholder or any foreign shareholder if shares of the Fund are not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">considered regularly traded on an established securities market, in which case such foreign shareholder generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">would also be required to file a U.S. tax return and pay any additional taxes due in connection with the repurchase.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">If the Fund were a QIE, under a special &#8220;look-through&#8221; rule, any distributions
by the Fund to a foreign </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder (including, in certain cases, distributions made by the Fund in repurchase of its shares) attributable directly </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or indirectly to (i) distributions received by the Fund from a lower-tier RIC or REIT that the Fund is required to treat </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as USRPI gain in its hands, or (ii) gains realized by the Fund on the disposition of USRPIs would retain their character </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as gains realized from USRPIs in the hands of the Fund&#8217;s foreign shareholders, and would be subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. withholding tax. In addition, such distributions could result in the foreign shareholder being required to file a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. tax return and pay tax on the distributions at regular U.S. federal income tax rates. The consequences to a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder, including the rate of such withholding and character of such distributions (e.g., as ordinary income or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">USRPI gain), would vary depending upon the extent of the foreign shareholder&#8217;s current and past ownership of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The
Fund generally does not expect that it will be a QIE. Foreign shareholders should consult their tax advisers </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and, if holding shares through intermediaries, their
intermediaries, concerning the application of these rules to their </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment in the Fund. Foreign shareholders also may be subject to &#8220;wash sale&#8221; rules to
prevent the avoidance of the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax-filing and -payment obligations discussed above through the sale and repurchase of Fund shares.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In order for a foreign shareholder to qualify for any exemptions from withholding described
above or for lower </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">withholding tax rates under income tax treaties, or to establish an exemption from backup withholding, a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder must comply with special certification and filing requirements relating to its non-U.S. status (including, in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">general, furnishing an IRS Form W-8BEN, W-8BEN-E or substitute form). Foreign shareholders should consult their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tax advisors in this regard.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Special rules (including withholding and reporting requirements) apply to foreign partnerships and those holding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund shares through foreign partnerships. Additional considerations may apply to foreign trusts and estates. Investors </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">holding Fund shares through foreign entities should consult their tax advisers about their particular situation.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A foreign shareholder may be subject to state and local tax and to the U.S. federal estate
tax in addition to the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. federal income tax referred to above. A beneficial holder of shares who is a non-U.S. person may be subject to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">state and local tax and to the U.S. federal estate tax in addition to the U.S. federal tax on income referred to above.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Backup Withholding</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund is generally required to withhold and remit to the U.S. Treasury a percentage of
taxable distributions </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and proceeds of share repurchases, if any, paid to any individual shareholder who fails to properly furnish the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with a correct taxpayer identification number, who has under-reported dividend or interest income, or who fails to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certify to the Fund that he or she is not subject to such withholding. The backup withholding rules may also apply to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">distributions that are properly reported as exempt-interest dividends. Backup withholding is not an additional tax. Any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amounts withheld may be credited against the shareholder&#8217;s U.S. federal income tax liability, provided the appropriate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information is furnished to the IRS.</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">112</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_113"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Tax Shelter Reporting Regulations</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Under U.S. Treasury regulations, if a shareholder recognizes a loss of $2 million or more for an individual </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder or $10 million or more for a corporate shareholder, the shareholder must file with the IRS a disclosure </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">statement on IRS Form 8886. Direct shareholders of portfolio securities are in many cases excepted from this reporting </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">requirement, but under current guidance, shareholders of a RIC are not excepted. Future guidance may extend the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">current exception from this reporting requirement to shareholders of most or all RICs. The fact that a loss is reportable </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">under these regulations does not affect the legal determination of whether the taxpayer&#8217;s treatment of the loss is proper. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shareholders should consult their tax advisors to determine the applicability of these regulations in light of their </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">individual circumstances.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Other Reporting and Withholding Requirements</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Sections 1471-1474 of the Code and the U.S. Treasury and IRS guidance issued thereunder (collectively, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;FATCA&#8221;) generally require the Fund to obtain information sufficient to identify the status of each of its shareholders </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">under FATCA or under an applicable intergovernmental agreement (an &#8220;IGA&#8221;) between the United States and a foreign </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">government. If a shareholder fails to provide the requested information or otherwise fails to comply with FATCA or an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">IGA, the Fund may be required to withhold under FATCA at a rate of 30% with respect to that shareholder on ordinary </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividends. The IRS and the U.S. Treasury have issued proposed regulations providing that these withholding rules will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not apply to the gross proceeds of share repurchases or Capital Gain Dividends the Fund pays. If a payment by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund is subject to FATCA withholding, the Fund is required to withhold even if such payment would otherwise be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exempt from withholding under the rules applicable to foreign shareholders described above (e.g., short-term capital </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">gain dividends and interest-related dividends).</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Shareholders that are U.S. persons and own, directly or indirectly, more than 50% of the Fund could be required </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to report annually their &#8220;financial interest&#8221; in the Fund&#8217;s foreign financial accounts, if any, on FinCEN Form 114, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Report of Foreign Bank and Financial Accounts (FBAR). Shareholders should consult a tax advisor, and persons </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investing in the Fund through an intermediary should contact their intermediary, regarding the applicability to them of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">this reporting requirement.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Each prospective investor is urged to consult its tax adviser regarding the applicability of FATCA and any other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reporting requirements with respect to the prospective investor&#8217;s own situation, including investments through an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">intermediary.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Shares Purchased Through Tax-Qualified Plans</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Special tax rules apply to investments through defined contribution plans and other
tax-qualified plans. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Shareholders should consult their tax advisers to determine the suitability of shares of the Fund as an investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">through such plans and the precise effect of an investment on their particular tax situation.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">PERFORMANCE RELATED AND COMPARATIVE INFORMATION</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund may quote certain performance-related information and may compare certain aspects
of its portfolio </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and structure to other substantially similar closed-end funds as categorized by Broadridge Financial Solutions, Inc. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;Broadridge&#8221;), Morningstar Inc. or other independent services. Comparison of the Fund to an alternative investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">should be made with consideration of differences in features and expected performance. The Fund may obtain data </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from sources or reporting services, such as Bloomberg Financial and Broadridge, that the Fund believes to be generally </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">accurate.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The Fund, in its advertisements, may refer to pending legislation from time to time and the
possible effect of such </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">legislation on investors, investment strategy and related matters. At any time in the future, yields and total return may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be higher or lower than past yields and there can be no assurance that any historical results will continue.</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Past performance is not indicative of future results. At the time Common Shareholders sell
their shares, they may </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">be worth more or less than their original investment.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">113</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_114"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSEMENT AGENT</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The custodian of the assets of the Fund is State Street Bank and Trust Company, 801
Pennsylvania Avenue, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Kansas City, MO 64105. The custodian performs custodial and fund accounting services as well as sub-administrative </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">services on behalf of the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">American Stock Transfer &amp; Trust Company, LLC, 6201 15th Avenue, Brooklyn, New York 11219, serves as the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s transfer agent, registrar, dividend disbursement agent and shareholder servicing agent, as well as agent for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund&#8217;s Dividend Reinvestment Plan.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">[ ] serves as independent registered public accounting firm for the Fund. [ ] provides
audit services, tax and other </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">audit related services to the Fund.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">COUNSEL</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Ropes &amp; Gray LLP, Prudential Tower, 800 Boylston Street, Boston, Massachusetts 02199, passes upon certain </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">legal matters in connection with shares offered by the Fund, and also acts as counsel to the Fund.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">REGISTRATION STATEMENT</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A Registration Statement on Form N-2, including any amendments thereto (the &#8220;Registration Statement&#8221;), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relating to the Common Shares of the Fund offered hereby, has been filed by the Fund with the SEC, Washington, D.C. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Prospectus and this Statement of Additional Information are parts of, but do not contain all of the information set </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">forth in, the Registration Statement, including any exhibits and schedules thereto. For further information with respect </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to the Fund and the Common Shares offered or to be offered hereby, reference is made to the Fund&#8217;s Registration </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statement. Statements contained in the Prospectus and this Statement of Additional Information as to the contents of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any contract or other document referred to are not necessarily complete and in each instance reference is made to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">copy of such contract or other document filed as an exhibit to the Registration Statement, each such statement being </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">qualified in all respects by such reference. Copies of&nbsp;all or any part of the Registration Statement may be obtained </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">from the SEC upon the payment of certain fees prescribed by the SEC.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">INCORPORATION BY REFERENCE</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">As noted above, this Statement of Additional Information is part of a registration statement filed with the SEC. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Fund is permitted to &#8220;incorporate by reference&#8221; the information filed with the SEC, which means that the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">can disclose important information to you by referring you to those documents. The information incorporated by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reference is considered to be part of this Statement of Additional Information, and later information that the Fund files </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the SEC will automatically update and supersede this information.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">The documents listed below, and any reports and other documents subsequently filed by the Fund pursuant to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Rule 30(b)(2) under the 1940 Act and Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, of 1934, as amended (the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8221;Exchange Act&#8220;) (excluding any information furnished rather than filed) prior to the termination of the offering shall </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be deemed to be incorporated by reference into the prospectus and this Statement of Additional Information. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information incorporated by reference is an important part of this Statement of Additional Information. Any statement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in a document incorporated by reference into this Statement of Additional Information will be deemed to be
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">automatically modified or superseded to the extent a statement contained in (1) this Statement of Additional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Information or any other subsequently filed document that is incorporated by reference into this Statement of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Additional Information modifies or supersedes such statement. The documents incorporated by reference herein </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">include:</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:left;width:439.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s prospectus, dated [ ], 2023, filed with this Statement of Additional
Information;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:left;width:439.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s Annual Report on Form N-CSR, filed on [ ], 2023; and</font></div>
</div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8226;</font></div>
<div style="float:left;line-height:12pt;margin-left:11.4pt;text-align:left;width:439.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s </font><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003304/d8a12b.txt">
<font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;">Description of Shares on Form 8-A</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">, filed on June 19, 2002</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;">
<div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">114</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_41e21a3e-e9de-44d4-821f-8d5a374b6918_115"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">You may obtain copies of any information incorporated by reference into this Statement of Additional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Information, at no charge, by calling toll-free (844)-337-4626 or by writing to the Fund at c/o Pacific Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Management Company LLC, 1633 Broadway, New York, New York 10019. The Fund&#8217;s periodic reports filed pursuant </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">to Section 30(b)(2) of the 1940 Act and Sections 13 and 15(d) of the Exchange Act, as well as the Prospectus and this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statement of Additional Information, are available on the Fund&#8217;s website http://www.pimco.com/prospectuses. In </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">addition, the SEC maintains a website at www.sec.gov, free of charge, that contains these reports, the Fund&#8217;s proxy and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">information statements, and other information relating to the Fund.</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">115</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_e894d944-c6db-46ae-99aa-f8e1abebf5ea_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:7pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;text-transform:uppercase;">Appendix A Procedures for Shareholders to Submit Nominee Candidates for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;text-transform:uppercase;">Pimco Sponsored Closed-End Funds</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">A Fund shareholder must follow the following procedures in order to properly submit a nominee recommendation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">for the Committee&#8217;s consideration.</font></div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;margin-left:10pt;text-align:left;width:7.5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">1.</font></div>
<div style="float:left;line-height:12pt;margin-left:6.5pt;text-align:justify;width:451.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The shareholder/stockholder must submit any such recommendation (a
&#8220;Shareholder Recommendation&#8221;) in </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">writing to the Fund, to the attention of the Secretary, at the address of the principal executive offices of the
Fund.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:10pt;text-align:left;width:7.5pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">2.</font></div>
<div style="float:left;line-height:12pt;margin-left:6.5pt;text-align:justify;width:451.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Shareholder Recommendation must be delivered to or mailed and received at the
principal executive offices </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund not less than forty-five (45) calendar days nor more than seventy-five (75) calendar days prior to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">date of the Board or shareholder meeting at which the nominee would be elected.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;margin-left:10pt;text-align:left;width:7.5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">3.</font></div>
<div style="float:left;line-height:12pt;margin-left:6.5pt;text-align:justify;width:451.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Shareholder Recommendation must include: (i) a statement in writing setting
forth (A) the name, age, date </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">of birth, business address, residence address and nationality of the person recommended by the shareholder (the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;candidate&#8221;); (B) the class and number of all shares of the Fund owned of record or beneficially by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">candidate, as reported to such shareholder by the candidate; (C) any other information regarding the candidate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">called for with respect to director nominees by paragraphs (a), (d), (e) and (f) of Item 401 of Regulation S-K or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">paragraph (b) of Item 22 of Rule 14a-101 (Schedule 14A) under the Securities Exchange Act of 1934, as
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">amended (the &#8220;Exchange Act&#8221;), adopted by the Securities and Exchange Commission (or the corresponding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provisions of any regulation or rule subsequently adopted by the Securities and Exchange Commission or any
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">successor agency applicable to the Fund); (D) any other information regarding the candidate that would be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">required to be disclosed if the candidate were a nominee in a proxy statement or other filing required to be made </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in connection with solicitation of proxies for election of Directors/Trustees or directors pursuant to Section 14 of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Exchange Act and the rules and regulations promulgated thereunder; and (E) whether the recommending
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder believes that the candidate is or will be an &#8220;interested person&#8221; of the Fund (as defined in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Company Act of 1940, as amended) and, if not an &#8220;interested person,&#8221; information regarding the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">candidate that will be sufficient for the Fund to make such determination; (ii) the written and signed consent of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the candidate to be named as a nominee and to serve as a Director/Trustee if elected; (iii) the recommending </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder&#8217;s name as it appears on the Fund&#8217;s books; (iv) the class and number of all shares of the Fund owned </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">beneficially and of record by the recommending shareholder; and (v) a description of all arrangements or
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">understandings between the recommending shareholder and the candidate and any other person or persons </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(including their names) pursuant to which the recommendation is being made by the recommending shareholder. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">In addition, the Committee may require the candidate to furnish such other information as it may reasonably </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">require or deem necessary to determine the eligibility of such candidate to serve on the Board.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:right;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">CEF0024SAI_022723</font></div> </div> <div style="clear:both;"> </div>
<div style="float:left;margin-left:60pt;margin-top:11pt;width:480pt;min-height:12pt;"> <div style="line-height:14.21pt;margin-top:2.53pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:14.21pt;margin-left:0%;">A-1</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
  <div> <div><a name="xx_5a245ade-441a-4786-ae39-106c480668cd_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">PART C. OTHER INFORMATION</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 25: Financial Statements and Exhibits</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Included in Part A:</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Financial highlights for: [the fiscal years ended December 31, 2022, 2021, 2020, 2019, 2018, 2017 and 2016; the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">fiscal period ended December 31, 2015; and fiscal years ended May 31, 2015, 2014 and 2013.]</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Incorporated into Part B by reference to Registrant&#8217;s most recent</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> Certified
Shareholder Report on Form N-CSR, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">filed [ ], 2023 (File No. 811-21076)</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Exhibits</font><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:15pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(a)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(1)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003368/dex99a2.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Amended and Restated Agreement and Declaration of Trust dated June 18, 2002</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(1)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99a3.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees and Principal Address dated September 5, 2014</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(3)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99a4.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees dated January 16, 2019</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(4)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99a5.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees dated January 8, 2020</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(5)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99a6.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees dated July 9,
2020</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(6)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99a7.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees dated January 29, 2021</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(7)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99a8.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees dated June 30,
2021</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(8)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99a9.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees dated January 5, 2022</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(9)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99a10.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees dated July 18,
2022</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(10)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="d299075dex99a10.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Notice of Change of Trustees dated March 13,
2023</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.*</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(b)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99b.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Amended and Restated Bylaws of Registrant dated July 14, 2021</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(c)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">None.</font></div> </div> </td> </tr>
<tr style="height:29pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(d)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(1)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Article III (Shares) and Article V (Shareholders&#8217; Voting Powers and Meetings) of the Form of </font></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Amended and Restated Agreement and Declaration of Trust (see a. above).</font></div> </div>
</td> </tr>
<tr style="height:29pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Article 10 (Shareholders&#8217; Voting Powers and Meetings) of the Amended and Restated Bylaws of </font></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Registrant (see b. above).</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(3)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003368/dex99d3.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Form of Share Certificate of the Common
Shares</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(1)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(4)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003950/dex99d4.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Form of Specimen Certificates representing the Registrant&#8217;s Auction Preferred Shares</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(3)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(e)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003368/dex99e.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Terms and Conditions of Dividend Reinvestment Plan</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(1)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(f)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">None.</font></div> </div> </td> </tr>
<tr style="height:29pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(g)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(1)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99g1.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Investment Management Agreement between Registrant and Pacific Investment Management </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99g1.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Company LLC dated September 5, 2014</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:29pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99g2.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Amendment to Investment Management Agreement between Registrant and Pacific Investment </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99g2.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Management Company LLC dated March 25, 2022</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(h)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Sales Agreement between Registrant and JonesTrading Institutional Services LLC dated [ ], 2023.**</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(i)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">None.</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(j)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(1)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003368/dex99j.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Custodian Agreement between Registrant and State Street Bank and Trust Company</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(1)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:29pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99j2.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Amendment to Custodian Agreement between Registrant and State Street Bank &amp; Trust Co. dated </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99j2.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">September 5, 2014</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:29pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(k)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(1)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99k1.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Transfer Agency Services Agreement between Registrant and American Stock Transfer &amp; Trust </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99k1.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Company, LLC dated as of April 19, 2016</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:24pt;">
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2)</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003368/dex99k2.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Organizational and Offering Expenses Agreement between Registrant and PIMCO Funds Advisors </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003368/dex99k2.txt"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">LLC, dated June 18, 2002</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(1)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr> </table> </div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_5a245ade-441a-4786-ae39-106c480668cd_2"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:27pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(3)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99k3.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Amended and Restated Support Services Agreement between Registrant and PIMCO Investments </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99k3.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">LLC</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(4)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99k4.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Amendment to Transfer Agency and Registrar Services Agreement dated December 15, 2020</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(5)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99k5.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Amendment to Transfer Agency and Registrar Services Agreement dated December 9, 2021</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(l)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Opinion and consent of Ropes &amp; Gray LLP.**</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(m)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">None.</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(n)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Consent of Registrant&#8217;s independent registered public accounting firm.**</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(o)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">None.</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(p)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1170299/000092701602003368/dex99p.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Subscription Agreement of PIMCO Funds Advisors LLC dated June 18, 2002</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(1)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(q)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">None.</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(r)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(1)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99r1.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Code of Ethics of Registrant</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99r2.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Code of Ethics of Pacific Investment Management Company LLC</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:29pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(3)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99r3.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Code of Ethics Pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 for Principal Executive </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99r3.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">and Senior Financial Officers</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(s)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="d299075dexfilingfees.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Filing Fee Table</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.*</font></div> </div> </td>
</tr>
<tr style="height:29pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(t)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(1)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99t1.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Powers of Attorney for Sarah E. Cogan, Deborah A. DeCotis, David N. Fisher, Joseph B. Kittredge, </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99t1.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Jr., John C. Maney, Alan Rappaport, and Grace Vandecruze</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(2)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99t2.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Power of Attorney for Eric D. Johnson</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(3)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="http://www.sec.gov/Archives/edgar/data/1219360/000119312522164101/d317847dex99t3.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Power of Attorney for Bijal Parikh</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(4)</font> <div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(4)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="https://www.sec.gov/Archives/edgar/data/1170299/000119312522217547/d288652dex99t4.htm">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Power of Attorney for Kathleen
McCartney</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(2)</font>
<div style="clear:right;"> </div> </div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:23.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">(u)</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:34.66pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-left:9pt;margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">&nbsp;</font></div> </div> </td>
<td style="background-color:azure;padding-top:5pt;vertical-align:Top;width:421.9pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><a href="d299075dex99u.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Certified Resolution of the Board of Trustees of Registrant</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">.*</font></div> </div> </td> </tr> </table> </div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Incorporated by reference to Pre-Effective Amendment No. 2 to the Registrant&#8217;s
Initial Registration Statement </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">on Form N-2, File Nos. 333-86282 and 811-21076 (filed on June 25, 2002).</font></div> </div> <div style="clear:both;position:relative;">
</div> </div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Incorporated by reference to the Registrant&#8217;s Registration Statement on Form
N-2, File Nos. 333-266754 and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">811-21076 (filed on August 11, 2022).</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(3)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Incorporated by reference to Pre-Effective Amendment No. 1 to the Registrant&#8217;s
Registration Statement on Form </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">N-2, File Nos. 333-91744 and 811-21076 (filed on August 12, 2002).</font></div> </div> <div style="clear:both;position:relative;"> </div>
</div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(4)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Incorporated by reference to PIMCO High Income Fund&#8217;s Registration Statement on
Form N-2, File Nos. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">333-265327 and 811-21311 (filed on May 31, 2022).</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">*</font></div>
<div style="float:left;line-height:12pt;margin-left:15pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Filed herewith.</font></div> </div> <div style="clear:both;position:relative;"> </div>
</div> <div> <div style="clear:both;margin-top:6pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:10pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">**</font></div>
<div style="float:left;line-height:12pt;margin-left:10pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">To be filed by amendment.</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 26: Marketing
Arrangements</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Reference is made to the sales agreement for the Registrant&#8217;s common shares filed herewith and the section entitled </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Plan of Distribution&#8221; contained in the Registrant&#8217;s Prospectus, filed as Part A of the Registrant&#8217;s Registration </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statement incorporated herein by reference.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 27: Other Expenses of Issuance and Distribution</font><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:10pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Securities and Exchange Commission Fees</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:14.17pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Financial Industry Regulatory Authority, Inc. Fees</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0.00</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Printing and Engraving Expenses</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:14.17pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Legal Fees</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:14.17pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">New York Stock Exchange Fees</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:14.17pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Accounting Expenses</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:14.17pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:10pt;">
<td style="background-color:#FFFFFF;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Transfer Agent Fees</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0.00</font></div> </div> </td> </tr> </table> </div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_5a245ade-441a-4786-ae39-106c480668cd_3"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:10pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Marketing Expenses</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0.00</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Miscellaneous Expenses</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0.00</font></div> </div> </td> </tr>
<tr style="height:10pt;">
<td style="background-color:#FFFFFF;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Total</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:14.17pt;">[ ]</font></div> </div> </td> </tr> </table> </div>
<div style="line-height:17.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 28: Persons Controlled by or under Common Control with Registrant</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:17pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Not applicable.</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;">
</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 29: Number of Holders of Securities</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;line-height:12pt;"> </font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">At March 31,
2023:</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div> <div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:8.85pt;">
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:381.39pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Title of Class</font></div> </div> </td>
<td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:98.61pt;"> <div style="line-height:11.0pt;text-align:left;">
<div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Number of Record Holders</font></div> </div> </td> </tr>
<tr style="height:13.85pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:0.85pt;vertical-align:Top;width:381.39pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Common Shares, par value $0.00001</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:0.85pt;vertical-align:Top;width:98.61pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">163</font></div> </div> </td> </tr>
<tr style="height:10pt;">
<td style="background-color:#FFFFFF;padding-top:3pt;vertical-align:Top;width:381.39pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Preferred Shares</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:3pt;vertical-align:Top;width:98.61pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:5pt;">45</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;margin-top:12pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 30: Indemnification</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Reference is made to Article VIII, Sections 1 through 5, of the Registrant&#8217;s Amended and Restated Agreement and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Declaration of Trust, which is incorporated by reference herein.</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;), </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be permitted to trustees, officers and controlling persons of the Registrant by the Registrant pursuant to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trust&#8217;s Amended and Restated Agreement and Declaration of Trust, its Amended and Restated Bylaws or otherwise, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Registrant is aware that in the opinion of the Securities and Exchange Commission, such indemnification is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">against public policy as expressed in the Securities Act and, therefore, is unenforceable. In the event that a claim for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">trustees, officers or controlling persons of the Registrant in the successful defense of any action, suit or proceeding) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is asserted by such trustees, officers or controlling persons in connection with the securities being registered, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in the Securities Act and will be governed by the final adjudication of such issue.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 31: Business and Other Connections of Investment Adviser</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Pacific Investment Management Company LLC (&#8220;PIMCO&#8221;) is an investment adviser registered under the Advisers </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Act. The list required by this Item 31 of officers and directors of PIMCO, together with any information as to any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">business, profession, vocation, or employment of a substantial nature engaged in by such officers and directors during </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the past two years, is incorporated herein by reference from Form ADV filed by PIMCO pursuant to the Advisers Act </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(SEC File No. 801-48187).</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 32: Location of Accounts and Records</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">The account books and other documents required to be maintained by the Registrant pursuant to Section 31(a) of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Company Act of 1940 and the rules thereunder will be maintained at the offices of Pacific Investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Management Company LLC, 1633 Broadway, New York, NY 10019 or the Registrant&#8217;s custodian, State Street Bank </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and Trust Company, 801 Pennsylvania Avenue, Kansas City, Missouri 64105.</font></div> <div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 33: Management Services</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Not applicable.</font></div>
<div style="line-height:12.0pt;margin-top:12.0pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;">Item 34: Undertakings</font></div>
<div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">1. Not applicable.</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">2. Not applicable.</font></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">3. The
Registrant undertakes:</font></div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.1pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(a)</font></div> <div style="float:left;line-height:12pt;margin-left:8.9pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to
file, during any period in which offers or sales are being made, a post-effective amendment to this </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Registration Statement:</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.0pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div> <div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to
include any prospectus required by Section 10(a)(3) of the Securities Act;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_5a245ade-441a-4786-ae39-106c480668cd_4"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to reflect in the prospectus any facts or events after the effective date of the
Registration Statement (or the most </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">which was registered) and any deviation from the low or high end of the estimated maximum offering range
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">offering price set forth in the &#8220;Calculation of Registration Fee&#8221; table in the effective registration statement.</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;line-height:12pt;"> </font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(3) </font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to include any material information with respect to the plan of distribution not
previously disclosed in the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Registration Statement or any material change to such information in the Registration Statement.</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-style:italic;">Provided, however</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">, that paragraphs a(1), a(2), and a(3) of this section do not apply to the extent the information
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">furnished to the Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">incorporated by reference into the registration statement, or is contained in a form of prospectus filed pursuant to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Rule 424(b) that is part of the registration statement.</font></div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(b)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">that, for the purpose of determining any liability under the Securities Act, each
post-effective amendment shall </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">be deemed to be a new registration statement relating to the securities offered therein, and the offering of such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities at that time shall be deemed to be the initial bona fide offering thereof;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.1pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(c)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.9pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to remove from registration by means of a post-effective amendment any of the
securities being registered which </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">remain unsold at the termination of the offering; and</font></div> </div> <div style="clear:both;position:relative;"> </div> </div>
<div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(d)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">that, for purposes of determining liability under the Securities Act to any
purchaser:</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div> <div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">if
the Registrant is subject to Rule 430B:</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:13.88pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(A)</font></div>
<div style="float:left;line-height:12pt;margin-left:6.12pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Each prospectus filed by the Registrant pursuant to Rule 424(b)(3) shall be deemed to
be part of the registration </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">statement as of the date the filed prospectus was deemed part of and included in the registration statement; and</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:13.33pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(B)</font></div>
<div style="float:left;line-height:12pt;margin-left:6.67pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as
part of a registration </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (x), or (xi) under </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Securities Act for the purpose of providing the information required by Section 10 (a) of the Securities Act </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relating to the securities in the registration statement to which that prospectus relates, and the offering of such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">statement made in a registration statement or prospectus that is part of the registration statement or made in a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">document incorporated or deemed incorporated by reference into the registration statement or prospectus that is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">date, supersede or modify any statement that was made in the registration statement or prospectus that was part </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the registration statement or made in any such document immediately prior to such effective date; or</font></div> </div> <div style="clear:both;position:relative;"> </div> </div>
<div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">if the Registrant is subject to Rule 430C: each prospectus filed pursuant to Rule
424(b) under the Securities Act </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or other than prospectuses filed in reliance on Rule, shall be deemed to be part of and included in the
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in a registration statement or prospectus that is part of the registration statement or made in a document
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">modify any statement that was made in the registration statement or prospectus that was part of the registration </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">statement or made in any such document immediately prior to such date of first use.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.1pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(e)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.9pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">that for the purpose of determining liability of the Registrant under the Securities
Act to any purchaser in the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">initial distribution of securities:</font></div> </div> <div style="clear:both;position:relative;"> </div> </div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant
pursuant </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities are offered or sold to such purchaser by means of any of the following communications, the undersigned </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to the purchaser:</font></div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_5a245ade-441a-4786-ae39-106c480668cd_5"></A>
<div style="page-break-after:always;position:relative;"> <div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div> <div style="clear:both;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(1)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">any preliminary prospectus or prospectus of the undersigned Registrant relating to
the offering required to be </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">filed pursuant to Rule 424 under the Securities Act;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(2)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">free writing prospectus relating to the offering prepared by or on behalf of the
undersigned Registrant or used or </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">referred to by the undersigned Registrant;</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(3)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the portion of any other free writing prospectus or advertisement pursuant to Rule
482 under the Securities Act </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">relating to the offering containing material information about the undersigned Registrant or its securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provided by or on behalf of the undersigned Registrant; and</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:11.66pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">(4)</font></div>
<div style="float:left;line-height:12pt;margin-left:8.34pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">any other communication that is an offer in the offering made by the undersigned
Registrant to the purchaser.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:7.5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">4.</font></div>
<div style="float:left;line-height:12pt;margin-left:12.5pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Registrant undertakes that:</font></div> </div>
<div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:6.94pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a.</font></div>
<div style="float:left;line-height:12pt;margin-left:13.06pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">For the purpose of determining any liability under the Securities Act, the
information omitted from the form of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">prospectus filed by the Registrant under Rule 424(b)(1) under the Securities Act shall be deemed to be part of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">this registration statement as of the time it was declared effective; and</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:7.5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">b.</font></div>
<div style="float:left;line-height:12pt;margin-left:12.5pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">For the purpose of determining any liability under the Securities Act, each
post-effective amendment that </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">contains a form of prospectus shall be deemed to be a new registration statement relating to the securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">thereof.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:7.5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">5.</font></div>
<div style="float:left;line-height:12pt;margin-left:12.5pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The undersigned Registrant hereby undertakes that, for purposes of determining any
liability under the Securities </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Act, each filing of the Registrant&#8217;s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">that is incorporated by reference into the registration statement shall be deemed to be a new registration
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">statement relating to the securities offered therein, and the offering of such securities at that time shall be </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">deemed to be the initial bona fide offering thereof.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div>
<div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:7.5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">6.</font></div>
<div style="float:left;line-height:12pt;margin-left:12.5pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Insofar as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">been advised that in the opinion of the Securities and Exchange Commission such indemnification is against
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a director, officer or controlling person of the Registrant in the successful defense of any action, suit or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">proceeding) is asserted by such director, officer or controlling person in connection with the securities being </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">public policy as expressed in the 1940 Act and will be governed by the final adjudication of such issue.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div>
<div> <div style="clear:both;margin-top:4pt;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:7.5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">7.</font></div>
<div style="float:left;line-height:12pt;margin-left:12.5pt;text-align:left;width:455.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">The Registrant undertakes to send by first class mail or other means designed to
ensure equally prompt delivery, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">within two business days of receipt of a written or oral request, any prospectus or Statement of Additional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Information.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> <div> <div><a name="xx_5a245ade-441a-4786-ae39-106c480668cd_6"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">Notice</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">A copy of the Amended and Restated Agreement and Declaration of Trust of PIMCO Municipal Income Fund II (the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Fund&#8221;), together with all amendments thereto, is on file with the Secretary of State of The Commonwealth of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Massachusetts, and notice is hereby given that this instrument is executed on behalf of the Fund by any officer of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund as an officer and not individually and that the obligations of or arising out of this instrument are not binding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">upon any of the Trustees of the Fund or shareholders of the Fund individually, but are binding only upon the assets </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and property of the Fund.</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
<hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
  <div> <div><a name="xx_b9841461-1dce-4c52-92c7-9718fc29f1ec_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">SIGNATURES</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">amended, the Registrant has duly caused this registration statement to be signed on its behalf by the undersigned, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">thereunto duly authorized, in the City of Boston in the State of Massachusetts on the 13</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;position:relative;top:-4.25pt;">th</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> day of April, 2023.</font><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;margin-left:211.34pt;width:268.66pt;" cellpadding="0" cellspacing="0">
<tr style="height:26pt;">
<td style="background-color:#FFFFFF;padding-bottom:9pt;padding-top:9pt;vertical-align:Top;width:268.66pt;" colspan="2"> <div style="line-height:11pt;text-align:left;"> <div style="text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">PIMCO MUNICIPAL INCOME FUND II</font></div> </div> </td> </tr>
<tr style="height:28pt;">
<td style="background-color:azure;padding-top:9pt;vertical-align:Top;width:29.66pt;"> <div style="line-height:11pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">By:</font></div> </div> </td>
<td style="background-color:azure;padding-top:9pt;vertical-align:Top;width:239pt;"> <div style="line-height:11pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Eric D. Johnson*</font></div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:236pt;"> </div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"> </div> </div>
</td> </tr>
<tr style="height:6.5pt;">
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;vertical-align:Top;width:29.66pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Name:</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;vertical-align:Top;width:239pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Eric D. Johnson</font></div> </div> </td> </tr>
<tr style="height:9.5pt;">
<td style="background-color:azure;padding-top:2.5pt;vertical-align:Top;width:29.66pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Title:</font></div> </div> </td>
<td style="background-color:azure;padding-top:2.5pt;vertical-align:Top;width:239pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">President</font></div> </div> </td> </tr> </table> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">following persons in the capacities and on the date indicated.</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div>
<div style="line-height:0.0pt;text-align:left;"> </div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:17.25pt;">
<td style="background-color:#FFFFFF;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="border-bottom:1pt groove #000000;color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Name</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Center;white-space:nowrap;"><font
style="border-bottom:1pt groove #000000;color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Capacity</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Center;white-space:nowrap;"><font
style="border-bottom:1pt groove #000000;color:#000000;font-family:Times New Roman;font-size:8pt;font-weight:bold;">Date</font></div> </div> </td> </tr>
<tr style="height:35.75pt;">
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:1.75pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Eric D. Johnson*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Eric D. Johnson</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:1.75pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">President (Principal Executive Officer)</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:1.75pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Bijal Parikh*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Bijal Parikh</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Treasurer (Principal Financial &amp; Accounting Officer)</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Sarah E. Cogan*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Sarah E. Cogan</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deborah A. DeCotis*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deborah A. DeCotis</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">David N. Fisher*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">David N. Fisher</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Joseph B. Kittredge, Jr.*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Joseph B. Kittredge, Jr.</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Kathleen McCartney*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Kathleen McCartney</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">John C. Maney*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">John C. Maney</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:34pt;">
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Alan Rappaport*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Alan Rappaport</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr>
<tr style="height:29.5pt;">
<td style="background-color:#FFFFFF;padding-bottom:6pt;padding-top:4.5pt;vertical-align:Top;width:177.43pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Grace Vandecruze*</font></div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:173.93pt;"> </div> <div style="margin-right:3.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Grace Vandecruze</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:6pt;padding-top:4.5pt;vertical-align:Top;width:230.98pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3.5pt;margin-right:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Trustee</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:6pt;padding-top:4.5pt;vertical-align:Top;width:71.59pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:12pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">April 13, 2023</font></div> </div> </td> </tr> </table> </div> <div style="line-height:5.0pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;line-height:5pt;">&#8195;</font></div> <div style="margin-top:0.0pt;">
<table style="empty-cells:show;margin-left:218.55pt;width:261.45pt;" cellpadding="0" cellspacing="0">
<tr style="height:auto;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:22.45pt;"> <div style="line-height:11pt;text-align:left;"> <div style="margin-right:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">*By:</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:239pt;"> <div style="line-height:14pt;text-align:left;"> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">/s/ David C. Sullivan</font></div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;">
<hr style="background-color:#000000;height:0.75pt;margin-bottom:4pt;margin-left:0%;margin-top:2.0pt;position:relative;text-align:left;top:-1pt;width:236pt;"> </div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">David C. Sullivan</font></div> <div style="margin-left:3pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">as attorney-in-fact</font></div> </div> </td> </tr> </table> </div> <div> <div style="clear:both;margin-top:6.0pt;position:relative;width:100%;">
<div style="float:left;line-height:12pt;text-align:left;width:5pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">*</font></div> <div style="float:left;line-height:12pt;margin-left:15pt;text-align:left;width:455.00pt;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Pursuant to power of attorney.</font></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> </div> </div>
<div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
  <div> <div><a name="xx_47c82381-be64-49b2-a8d5-cf79a084d354_1"></A> <div style="page-break-after:always;position:relative;">
<div style="clear:both;"> </div> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-top:6pt;text-align:center;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0%;">EXHIBIT LIST</font><font style="color:#000000;font-family:Times New Roman;font-size:1pt;font-weight:bold;">&#8195;</font></div>
<div style="margin-top:0.0pt;">
<table style="empty-cells:show;width:480pt;" cellpadding="0" cellspacing="0">
<tr style="height:15pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:25.94pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">a.10</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:454.06pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Notice of Change of Trustees dated March 13, 2023.</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:25.94pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">s.</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:454.06pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Filing Fee Table.</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#FFFFFF;padding-top:5pt;vertical-align:Top;width:25.94pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">u.</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-top:5pt;vertical-align:Top;width:454.06pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:9pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Certified Resolution of the Board of Trustees of Registrant.</font></div> </div> </td> </tr> </table> </div> <div style="line-height:17.0pt;text-align:left;"> </div>
</div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div> <hr style="clear:both;margin-bottom:0.25pt;margin-left:0.25pt;margin-right:0.25pt;margin-top:40.0pt;"> </div> </BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A(10)
<SEQUENCE>2
<FILENAME>d299075dex99a10.htm
<DESCRIPTION>EX-99.A(10)
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.a(10)</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO MUNICIPAL INCOME FUND II </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NOTICE OF CHANGE OF TRUSTEES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> PIMCO Municipal Income Fund II (the &#147;Trust&#148;) is organized as a trust under the laws of the Commonwealth of
Massachusetts; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> William B. Ogden, IV retired as a Trustee of the Trust, effective as of December&nbsp;31, 2022; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>NOW, THEREFORE, </B>as a result of the foregoing Trustee retirement, the eight (8)&nbsp;Trustees of the Trust are: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="89%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TD VALIGN="top">Sarah E. Cogan</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">1633 Broadway</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">New York, New York 10019</TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">Deborah A. DeCotis</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">1633 Broadway</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">New York, New York 10019</TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">David N. Fisher</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">1633 Broadway</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">New York, New York
10019</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">Joseph B. Kittredge, Jr.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">1633 Broadway</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">John C. Maney</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">650 Newport Center Drive</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Newport Beach, CA 92660</TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">Alan Rappaport</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">1633 Broadway</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">E. Grace Vandecruze</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">1633 Broadway</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">Kathleen McCartney</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">1633 Broadway</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">New York, New York
10019</P></TD></TR>
</TABLE>
</DIV></Center>


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<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>IN WITNESS WHEREOF</B>, this Notice has been subscribed this 13<SUP
STYLE="font-size:75%; vertical-align:top">th</SUP> day of March, 2023, by the undersigned who affirms that the statements made herein are true under the penalties of perjury. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Ryan Leshaw</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Ryan Leshaw, Chief Legal Officer</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Signature Page &#150;
PIMCO Municipal Income Fund II (PML) </P>

</DIV></Center>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-FILING FEES
<SEQUENCE>3
<FILENAME>d299075dexfilingfees.htm
<DESCRIPTION>EX-FILING FEES
<TEXT>
<HTML><HEAD>
<TITLE>EX-FILING FEES</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>EX. FILING FEES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Calculation of Filing Fee Tables </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Form <FONT STYLE="white-space:nowrap">N-2</FONT> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(Form Type) </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Municipal
Income Fund II </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(Exact Name of Registrant as Specified in its Charter) </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>Table 1: Newly Registered and Carry Forward Securities </U></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="99%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TD WIDTH="6%"></TD>

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<TD WIDTH="6%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="6%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="8%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="6%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="7%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="5%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="5%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="5%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="6%"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:7pt">
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; padding-left:8pt">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Security<BR>Type</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Security<BR>Class<BR>Title</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Fee <BR>Calculation<BR>or Carry <BR>Forward <BR>Rule</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Amount <BR>Registered</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Proposed <BR>Maximum<BR>Offering <BR>Price Per <BR>Unit</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Maximum <BR>Aggregate <BR>Offering <BR>Price</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Fee<BR>Rate</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Amount of <BR>Registration<BR>Fee</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Carry <BR>Forward<BR>Form<BR>Type</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Carry <BR>Forward<BR>File <BR>Number</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Carry <BR>Forward<BR>Initial <BR>effective<BR>date</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-RIGHT:1px solid #000000; padding-right:2pt">Filing Fee <BR>Previously <BR>Paid In <BR>Connection<BR>with <BR>Unsold <BR>Securities <BR>to be <BR>Carried <BR>Forward</TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="1" COLSPAN="25" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="25" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt; padding-right:2pt">Newly Registered Securities</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Fees to Be</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Paid</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">Equity</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">Common<BR>Shares</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">457(o)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">(1)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">(1)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">$1,000,000</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">$110.20</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">$110.20</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Fees</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Previously</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Paid</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" COLSPAN="25" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="25" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt; padding-right:2pt">Carry Forward Securities</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Carry</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Forward</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Securities</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-RIGHT:1px solid #000000; padding-right:2pt">&#151;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" COLSPAN="9" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="9" ALIGN="right" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt">Total Offering Amounts&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">$1,000,000</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">$110.20</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" COLSPAN="9" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="9" ALIGN="right" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt">Total&nbsp;Fees&nbsp;Previously&nbsp;Paid&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" COLSPAN="9" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="9" ALIGN="right" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt">Total Fee Offsets&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">$110.20</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" COLSPAN="9" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="9" ALIGN="right" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">Net Fee Due&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-BOTTOM:1px solid #000000">$0</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
</TABLE>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>Table 2: Fee Offset Claims and Sources </U></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="99%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="12%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="8%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="5%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="9%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="8%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="8%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="8%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="6%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="7%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="6%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="10%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="10%"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:7pt">
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; padding-left:8pt">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Registrant <BR>or Filer <BR>Name</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Form or <BR>Filing <BR>Type</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">File <BR>Number</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Initial Filing <BR>Date</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Filing Date</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Fee Offset <BR>Claimed</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Security <BR>Type <BR>Associated<BR>with Fee <BR>Offset <BR>Claimed</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Security <BR>Title <BR>Associated <BR>with Fee <BR>Offset <BR>Claimed</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Unsold <BR>Securities <BR>Associated<BR>with Fee <BR>Offset <BR>Claimed</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Unsold Aggregate <BR>Offering Amount <BR>Associated with<BR>Fee <BR>Offset Claimed</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-RIGHT:1px solid #000000; padding-right:2pt">Fee Paid with <BR>Fee Offset <BR>Source</TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="1" COLSPAN="23" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="23" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt; padding-right:2pt">Rules 457(b) and <FONT STYLE="white-space:nowrap">0-11(a)(2)</FONT></TD></TR>

<TR STYLE="font-size:1pt">
<TD HEIGHT="1" COLSPAN="23" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="23" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt; padding-right:2pt">Rule 457(p)</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Fee</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Offset</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Claims</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">PIMCO Municipal Income Fund II</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">424B5</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;"><FONT STYLE="white-space:nowrap">333-266754</FONT></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">8/11/2022</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">$110.20(2)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">Equity</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Common</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Shares</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;">$202,419,317</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-RIGHT:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">Fee Offset Sources</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-BOTTOM:1px solid #000000">PIMCO Municipal Income Fund II</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-BOTTOM:1px solid #000000">424B5</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-BOTTOM:1px solid #000000">333-266754</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-BOTTOM:1px solid #000000">8/11/2022</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">$20,857.50(2)</TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">There are being registered hereunder a presently indeterminate number of common shares to be offered on an
immediate, continuous or delayed basis. The proposed maximum offering price per security will be determined, from time to time, by the registrant in connection with the sale by the registrant of the securities registered under this registration
statement. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">On August&nbsp;11, 2022, PIMCO Municipal Income Fund (the &#147;Fund&#148;) filed (i)&nbsp;an automatically
effective shelf registration statement, deferring payment of all registration fees (the &#147;2022 Registration Statement&#148;), and (ii)&nbsp;a prospectus supplement, pursuant to the 2022 Registration Statement (the &#147;2022 Prospectus
Supplement&#148;), relating to the offer and sale of the Fund&#146;s common shares having an aggregate offering price of up to $225,000,000 under the Fund&#146;s then current &#147;at the market&#148; program (the &#147;ATM Shares&#148;). In
connection with the filing of the 2022 Prospectus Supplement, the Fund made a contemporaneous registration fee payment of $20,857.50. As of the date of this filing, $202,419,317 of the Fund&#146;s common shares remain unsold under the 2022
Prospectus Supplement. Pursuant to Rule 457(p) under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), the registration fee of $18,764.27 that has already been paid and remains unused with respect to securities that were
previously registered pursuant to the 2022 Prospectus Supplement and were not sold thereunder is offset against the registration fee of $110.20 due for this registration statement filing. The offering of unsold ATM Shares pursuant to the 2022
Registration Statement has been terminated. In addition, pursuant to Rule 457(p) under the Securities Act, the remaining unused fees from the 2022 Registration Statement and 2022 Prospectus Supplement will be applied to the fees payable pursuant to
this registration statement under the applicable prospectus supplement. </P></TD></TR></TABLE> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>Table 3: Combined Prospectuses </U></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="99%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:7pt" ALIGN="center">


<TR>

<TD WIDTH="66%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="4%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="6%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="6%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="3%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="4%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="5%"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="1" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:7pt">
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt">Security Type</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:7pt; font-family:Times New Roman" ALIGN="center">Security<BR>Class</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:7pt; font-family:Times New Roman" ALIGN="center">Title</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:7pt; font-family:Times New Roman" ALIGN="center">Amount<BR>of<BR>Securities</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:7pt; font-family:Times New Roman" ALIGN="center">Previously<BR>Registered</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Maximum<BR>Aggregate<BR>Offering<BR>Price of<BR>Securities<BR>Previously<BR>Registered</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Form<BR>Type</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">File<BR>Number</TD>
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<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-RIGHT:1px solid #000000; padding-right:2pt">Initial<BR>Effective<BR>Date</TD></TR>


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<DOCUMENT>
<TYPE>EX-99.U
<SEQUENCE>4
<FILENAME>d299075dex99u.htm
<DESCRIPTION>EX-99.U
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.u</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">


<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">PIMCO MUNICIPAL INCOME FUND II </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(the &#147;Fund&#148;) </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">SECRETARY&#146;S CERTIFICATE </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I, <B><FONT
STYLE="white-space:nowrap">Wu-Kwan</FONT> Kit</B>, solely in my capacity as Secretary of the Fund, hereby certify on behalf of the Fund, pursuant to Rule 483(b) under the Securities Act of 1933, that the following resolution was unanimously approved
at the meeting of the Board of Trustees of the Fund held on March&nbsp;23, 2023: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD></TD>

<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="91%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>VOTED:</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">That any Officers of the Funds who may be required to sign such Fund&#146;s Registration Statement or any amendments thereto be, and each hereby is, authorized to execute or grant power of attorney to execute any registration
statement of any Fund on Form <FONT STYLE="white-space:nowrap">N-1A,</FONT> Form <FONT STYLE="white-space:nowrap">N-2</FONT> or Form <FONT STYLE="white-space:nowrap">N-14,</FONT> all <FONT STYLE="white-space:nowrap">Pre-Effective</FONT> Amendments
to any such registration statement of such Fund, including, without limitation, pursuant to Rule 462(d), any and all subsequent Post-Effective Amendments to such registration statement, any and all supplements or other instruments in connection
therewith, and any subsequent registration statements for the same offering which may be filed under Rule 462(b), and to file the same, with all exhibits thereto, and other documents in connection therewith, with the SEC, the securities regulators
of the appropriate states and territories and any other regulatory authority having jurisdiction over the issuance of rights and the offer and sale of shares of beneficial interest of the Fund, any and all agreements, filings, documents,
registrations, notices, and other instruments required or permitted to be filed pursuant to the Securities Act, the Exchange Act, the 1940 Act, the Investment Advisers Act of 1940, as amended, the Commodities Exchange Act, as amended, the Federal
Securities Laws (as that term is defined in Rule <FONT STYLE="white-space:nowrap">38a-1</FONT> under the 1940 Act), and the rules thereunder, and/or any rules or regulations passed or adopted by NYSE or any other exchange on which a Fund&#146;s
shares trade (an &#147;Exchange&#148;), the National Futures Association (&#147;NFA&#148;), the Financial Industry Regulatory Authority (&#147;FINRA&#148;), and/or any other self-regulatory organization (each, an &#147;SRO&#148;) to whose authority
a Fund is subject, and any and all agreements, filings, documents, registrations, notices, and other instruments required or permitted to be filed to comply with the statutes, rules, regulations or law of any state or jurisdiction, including those
required to qualify to do business in any such state or jurisdiction, and to file the same, with all exhibits thereto, and other agreements, documents and other instruments in connection therewith, with the appropriate regulatory body including, but
not limited to, the SEC, the Commodity Futures Trading Commission, an Exchange, the NFA, FINRA, and any SRO, and/or the securities regulators or other agency or regulatory body of the appropriate states and territories.</TD></TR>
</TABLE>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, I have hereunto set my hand and seal of the Fund as of this 13<SUP
STYLE="font-size:75%; vertical-align:top">th</SUP> day of April, 2023. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="100%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">By: /s/ <FONT STYLE="white-space:nowrap">Wu-Kwan</FONT> Kit</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: <FONT STYLE="white-space:nowrap">Wu-Kwan</FONT> Kit</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President, Senior Counsel and Secretary</I></P></TD></TR>
</TABLE></DIV>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">PML - Certified Resolution of the Board
of Trustees </P>

</DIV></Center>

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