<SEC-DOCUMENT>0001193125-22-255711.txt : 20220930
<SEC-HEADER>0001193125-22-255711.hdr.sgml : 20220930
<ACCEPTANCE-DATETIME>20220930171406
ACCESSION NUMBER:		0001193125-22-255711
CONFORMED SUBMISSION TYPE:	N-2
PUBLIC DOCUMENT COUNT:		20
FILED AS OF DATE:		20220930
DATE AS OF CHANGE:		20220930

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIMCO CALIFORNIA MUNICIPAL INCOME FUND
		CENTRAL INDEX KEY:			0001140411
		IRS NUMBER:				134174445
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-10379
		FILM NUMBER:		221284912

	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 CALIFORNIA MUNICIPAL INCOME FUND
		CENTRAL INDEX KEY:			0001140411
		IRS NUMBER:				134174445
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-267694
		FILM NUMBER:		221284911

	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>d604547dn2.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_9154b64d-030b-4857-8519-5cedd7c7efce_1"></A> <div style="page-break-after:always;position:relative;">
<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 September 30, 2022</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. 811-10379</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. 10</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;">
&#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 CALIFORNIA MUNICIPAL INCOME FUND</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:0.0%;">
<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></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_9154b64d-030b-4857-8519-5cedd7c7efce_2"></A>
<div style="page-break-after:always;position:relative;"> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:700pt;"> <div style="margin-top:0.0%;">
<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:0.0%;">
<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:0.0%;">
<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:0.0%;">
<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:12.0pt;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> <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> </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>


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<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
  <div> <div> <a name="xx_466ae295-400b-43e7-9751-402f96c223c1_1"></A> <div style="page-break-after:always;position:relative;">
<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="g399701img61e396ff1.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="g399701imga106feae2.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="g399701imga29949a93.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="g399701grey_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 September 30, </font><font
style="color:#FF0000;font-family:Arial;font-size:16pt;font-style:italic;">2022</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 California Municipal
Income Fund</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:Arial;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;">[ ]</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:18.0pt;margin-top:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial;font-size:16pt;">PIMCO California Municipal Income Fund</font><font style="color:#000000;font-family:Arial Narrow;font-size:16pt;line-height:18pt;"> </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:0.0%;">
<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 California Municipal Income Fund</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;">PCQ</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 California Municipal Income Fund (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 29, 2001, 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 $0.00001 per share (the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Common Shares&#8221;) are listed on the New York Stock Exchange (&#8220;NYSE&#8221;) under the symbol
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PCQ. The last reported sale price of the Common Shares, as reported by the NYSE on [ ] was </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">$[ ]
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 and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">California 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 will invest substantially all (at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">least 90%) of its net assets in
municipal bonds which pay interest that, in the opinion of bond </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counsel to the issuer (or on the basis of other authority believed by PIMCO to be reliable), is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exempt from federal and California income taxes (i.e., excluded from gross income for federal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and California
income tax purposes but not necessarily exempt from the federal alternative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">minimum tax). Subject to its other investment policies, the Fund may invest up to 20% of its
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total assets in investments the interest from which is subject to the federal alternative minimum
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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_466ae295-400b-43e7-9751-402f96c223c1_2"></A> <div style="page-break-after:always;position:relative;">
<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, the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">exposure to mortgage-related and other asset-backed
securities, and the Fund&#8217;s use of leverage. Debt securities of below investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">grade quality are regarded as having predominantly speculative
characteristics with respect to capacity to pay interest and to repay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">principal, and are commonly referred to as &#8220;high yield&#8221; securities or
&#8220;junk bonds.&#8221; The Fund&#8217;s exposure to municipal securities means </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">it is particularly subject to the risk that a municipal issuer will be
unable to make timely payments of interest and principal, which risk </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">will generally be higher during general economic downturns and may be adversely
impacted by litigation, legislation or political </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">events, or by the bankruptcy of the issuer. Before investing in the Common Shares, you should read the
discussion of the principal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">risks of investing in the Fund in &#8220; Principal Risks of the Fund.&#8221; Certain of these risks are summarized in
&#8220;Prospectus </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Summary&#8212;Principal Risks of the Fund.&#8221; The Fund cannot assure you that it will achieve its investment objective, and you could
lose </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">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;">Under normal circumstances, the Fund will invest substantially all (at least 90%) of its net assets in municipal bonds which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pay interest that, in the opinion of bond counsel to the issuer (or on the basis of other authority believed by PIMCO to be reliable), is exempt from </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal and California income taxes (i.e., excluded from gross income for federal and California income tax purposes but not necessarily exempt </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from the federal alternative minimum tax). Subject to its other investment policies, the Fund may invest up to 20% of its total assets in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments the interest from which is subject to the federal alternative minimum tax.</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 municipal bonds in which the Fund invests are generally issued by the State of California, a city in California, or a political subdivision, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency, authority, or instrumentality of such state or city, but may be issued by other U.S. states and/or U.S. territories, the interest from which is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exempt from California and federal income taxes.</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 net assets in municipal bonds issued by a U.S. state or territory, a city
in a U.S. state or territory, or a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political subdivision, agency, authority, or instrumentality of such state, territory or city, the interest from which is not exempt from
California </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income taxes.</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;">Also included within the general category of municipal bonds in which the Fund may invest are 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. In the event that ratings services
assign different </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings to the same security, PIMCO will use the highest rating as the credit rating for that security. Bonds of below investment grade quality are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal and are commonly </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">referred to as &#8220;junk 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 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></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_466ae295-400b-43e7-9751-402f96c223c1_3">
</A> <div style="page-break-after:always;position:relative;"> <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;">Securities and Exchange Commission. As a shareholder of an investment company, the Fund will bear its ratable share of that investment </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">company&#8217;s expenses and would remain subject to payment of the Fund&#8217;s management fees and other expenses with respect to assets so </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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 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, swap agreements, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and securities indexes, and enter into interest rate and index futures contracts and purchase and sell options on such futures
contracts for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hedging purposes or as part of its overall investment strategy. The Fund also may enter into swap agreements with respect to interest rates and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indexes of securities. If other types of financial instruments, including other types of options, futures contracts, or futures options are traded in the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 15% 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, among </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">others, futures contracts, options on futures contracts, forward contracts, or any interest rate, securities-related or other hedging instrument, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including swap agreements and other derivative instruments. The Fund 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 its outstanding Preferred Shares or unwinding TOBs and may or may not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determine to replace such leverage through other sources. If the Fund issues additional Preferred Shares in the future, all costs and expenses </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relating to the issuance and ongoing maintenance of the Preferred Shares will be borne by the holders of Common Shares (&#8220;Common </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders&#8221;), and these costs and expenses may be significant.</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 amount of leverage that the Fund uses may change, but total leverage is not normally expected to exceed 50% of the Fund&#8217;s total assets. To </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the extent the Fund covers its commitments under TOBs or other derivatives instruments by the segregation of liquid assets, or by entering into </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offsetting transactions or owning positions covering its obligations, they will not be considered &#8220;senior securities&#8221; under the Investment Company </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Act of 1940 (&#8220;1940 Act&#8221;) and will not be subject to the 50% policy described in the foregoing sentence.</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;">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
U.S. Securities and Exchange </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Commission (the &#8220;SEC&#8221;) using the &#8220;shelf&#8221; registration process. Under the shelf registration process, the Fund may offer,
from time to time, in one </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or more offerings, up to $[ ] Common Shares on terms to be determined at the time of the offering. This prospectus provides you with a general
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">description of the Common Shares that the Fund may offer. Each time the Fund uses this prospectus to offer Common Shares, the Fund will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provide a prospectus supplement that will contain specific information about the terms of that offering. The prospectus supplement may also add, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">update or change information contained in this prospectus. You should read this prospectus and the applicable prospectus supplement, which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contain important information about the Fund, carefully before you invest in the Common Shares. Common Shares may be offered directly to one </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or more purchasers, through agents designated from time to time by the Fund, or to or through underwriters or dealers. The prospectus </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">supplement relating to an offering will identify any agents, underwriters or dealers involved in the sale of Common Shares, and will set forth any </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable purchase price, fee, commission or discount arrangement between the Fund and its agents or underwriters, or among the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underwriters, or the basis upon which such amount may be calculated. See &#8220;Plan of Distribution.&#8221; The Fund may not sell any Common Shares </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through agents, underwriters or dealers without delivery or deemed delivery of a prospectus supplement describing the method and terms of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">particular offering of the Common Shares. You should retain this prospectus and any prospectus supplement for future reference. A Statement of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Additional Information, dated [ ], 2022, containing additional information about the Fund has been filed with the SEC and is incorporated by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reference in its entirety into this prospectus. You may request a free copy of the Statement of Additional Information, request the Fund&#8217;s most </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recent annual and semiannual reports, request information about the Fund and make shareholder inquiries by calling toll-free (844)-337-4626 or </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_466ae295-400b-43e7-9751-402f96c223c1_4">
</A> <div style="page-break-after:always;position:relative;"> <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;">by writing to the Fund at c/o Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019. The Fund&#8217;s Statement </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of Additional Information and most recent annual and semiannual reports are available, free of charge, on the Fund&#8217;s website </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(https://www.pimco.com/prospectuses). You can obtain the 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;">The Fund has
not authorized anyone to provide you with information other than that contained or incorporated by reference in this </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">prospectus or any applicable prospectus
supplement, and any free writing prospectus that the Fund distributes. The Fund does not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">take any responsibility for, and does not provide any assurances as
to the reliability of, any other information that others may give you. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">The Fund is not making an offer of these securities in any jurisdiction where the
offer is not permitted. You should not assume that the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">information contained in this prospectus or any applicable prospectus supplement is accurate as of
any date other than the date on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">the front hereof or thereof. The Fund&#8217;s business, financial condition, results of operations and prospects may have
changed since that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">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_0af3916a-9d5b-43eb-a2d9-5c6e59c279ed_toc_1">
</A> <div style="page-break-after:always;position:relative;"> <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:0.0%;">
<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_a9e75bd2-923a-4a4c-abf7-71573d366076_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_0c7bb113-9647-49ec-aa90-d5128dae70d2_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;">19</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_9775125c-1427-460a-b043-923d5eeda12b_2">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_67659446-f0d5-4437-b7a4-08a8df9042ca_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_67659446-f0d5-4437-b7a4-08a8df9042ca_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_67659446-f0d5-4437-b7a4-08a8df9042ca_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_67659446-f0d5-4437-b7a4-08a8df9042ca_9">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;">30</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_67659446-f0d5-4437-b7a4-08a8df9042ca_11">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;">32</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_67659446-f0d5-4437-b7a4-08a8df9042ca_27">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;">48</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">50</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">52</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_4">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;">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="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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">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="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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">61</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">62</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_14">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;">63</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">64</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">64</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_18">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;">67</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">67</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">67</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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_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;">67</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_0a7f7aab-5eca-4638-b38f-80580415b04a_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:12.0pt;margin-top:12pt;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 any other person to provide you with
inconsistent information. If anyone provides you </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">with inconsistent information, you should not assume that the Fund has authorized or verified it. The Fund
is not making an offer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">to sell these securities in any jurisdiction where the offer or sale is not permitted. You should not assume that the information
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">contained in this prospectus or any prospectus supplement is accurate as of any date other than the dates on their respective </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">front covers. The Fund&#8217;s business, financial condition, results of operations and prospects may have changed since the date of this </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">prospectus or the date of any prospectus supplement.</font></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_a9e75bd2-923a-4a4c-abf7-71573d366076_1"></A> <div style="page-break-after:always;position:relative;">
<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="g399701img61e396ff1.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-left:184pt;margin-top:0;text-align:left;"><font
style="color:#FFFFFF;font-family:Times New Roman;font-size:21pt;line-height:21pt;">PIMCO California Municipal Income </font><font style="color:#FFFFFF;font-family:Times New Roman;font-size:21pt;line-height:21pt;">Fund</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 the Fund&#8217;s
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">common shares of beneficial interest, par value $0.00001 per share (the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">&#8220;Common Shares&#8221;). You should review the more detailed information </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">contained in this prospectus and in any related prospectus supplement </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">and
in the Statement of Additional Information, especially the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;">information set forth 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 California Municipal Income Fund (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 29, 2001, 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;PCQ.&#8221; As of June 30, 2022 the net assets </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the 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, 4,825
auction rate preferred shares of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">beneficial interest (&#8220;ARPS&#8221;) and 293 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; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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;). The last reported sale </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">price of the Common Shares, as reported by the NYSE on [ ] was $[ ] per </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Share. The net asset value
(&#8220;NAV&#8221;) of the Common Shares at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the close of business on [ ] 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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">objective and policies within approximately 30 days of receipt by the </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;">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 and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">California income tax. In pursuing the
Fund&#8217;s investment objective, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment manager, Pacific Investment Management Company </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">LLC (&#8220;PIMCO or the &#8220;Investment Manager&#8221;), also seeks to preserve and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">enhance the value of
the Fund&#8217;s holdings relative to the municipal bond </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market generally, using proprietary analytical models that test and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">evaluate the sensitivity of those holdings to changes in interest rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and yield relationships. The Fund
cannot assure you that it will achieve </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its 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 will invest substantially all (at </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">least 90%) of its net assets in municipal bonds which pay interest that, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the opinion of bond counsel to the
issuer (or on the basis of other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">authority believed by the PIMCO to be reliable), is exempt from federal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and California income taxes (i.e., excluded from gross income for federal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and California income tax purposes
but not necessarily exempt from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal alternative minimum tax). Subject to its other investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">policies, the Fund may invest up to 20% of its total assets in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments the interest from which is subject
to the federal alternative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">minimum 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;">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;">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 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">considered to possess some speculative 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;">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></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 California Municipal Income Fund |
</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="g399701imga29949a93.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_a9e75bd2-923a-4a4c-abf7-71573d366076_2"></A>
<div style="page-break-after:always;position:relative;"> <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;">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 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the State of California, a city in California or a political subdivision, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency, authority, or instrumentality of such state, territory or city, but </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maybe issued by other U.S. states
and/or U.S. territories, the interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from which is exempt from California and federal income taxes.</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 net assets in municipal bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued by a U.S. state or territory, a city in a U.S. state or territory, or a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political subdivision, agency, authority, or instrumentality of such state, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">territory or city, the interest
from which is not exempt from California </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income taxes.</font></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 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: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.</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></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;">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 Securities and Exchange Commission. As a shareholder of an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 generally
intends to invest primarily in municipal bonds with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">longer-term maturities (for example, 15-30 years), but may invest in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">bonds of any maturity and otherwise seek a shorter average weighted </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maturity of its 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;">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;">and securities indexes, and enter
into interest rate and index futures </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contracts and purchase and sell options on such futures contracts for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hedging purposes or as part of its overall investment strategy. The Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also may enter into swap agreements
with respect to interest rates and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indexes of securities. If other types of financial instruments, including </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other types of options, futures contracts, or futures options are traded in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 15% 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 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:10pt;text-align:left;"><font
style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Temporary Defensive 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;">Upon PIMCO&#8217;s recommendation, temporarily or for defensive purposes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and in order to keep the Fund&#8217;s
cash fully invested, the Fund may invest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">up to 100% of its net assets in high quality, short-term investments, </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;">[ ] | </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_a9e75bd2-923a-4a4c-abf7-71573d366076_3"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal Income Fund</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;">including U.S. government,
mortgage-backed and corporate debt </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities that may be either tax-exempt or taxable. To the extent the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund invests in taxable short-term investments, the Fund will not at </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such times be in a 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;">contracts, options on futures contracts, forward contracts, or any interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate, securities-related or other
hedging instrument, including swap </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements and other derivative instruments. 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 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decrease the leverage it
currently maintains by redeeming or tendering </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its outstanding Preferred Shares or unwinding TOBs and may or may not </font><font
style="color:#323232;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;">The amount of leverage that the Fund uses may change, but total </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage is not normally expected to exceed 50% of the Fund&#8217;s total </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets. To the extent the Fund
covers its commitments under TOBs or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other derivatives instruments by the segregation of liquid assets, or by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entering into offsetting transactions or owning positions covering its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations, they will not be
considered &#8220;senior securities&#8221; under the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investment Company Act of 1940 (&#8220;1940 Act&#8221;) and will not be subject </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the 50% policy described in the foregoing sentence.</font></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 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.</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 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></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;">amount of leverage as a
percentage of its total assets will decrease, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">which could result in a reduction of investment income available for </font><font
style="color:#000000;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;">The Fund also may borrow money for temporary administrative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purposes, to add leverage to the portfolio or for the settlement of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities transactions which otherwise
might require untimely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 0.705% 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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">financial services company. As of June 30, 2022, PIMCO had </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">approximately $1.82 trillion of assets
under management. As of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">June 30, 2022, PIMCO had $1.43 trillion of third-party assets under
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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> <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 California Municipal 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_a9e75bd2-923a-4a4c-abf7-71573d366076_4"></A> <div style="page-break-after:always;position:relative;">
<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:#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 1940 Act and other applicable laws, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">absent an exemption, a notice will accompany each monthly distribution </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with respect to the estimated source (as between net income, gains or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other capital source) of the
distribution made. If the Fund estimates that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a 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. GAAP, and recordkeeping </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">practices under income tax regulations. Accordingly, among other
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consequences, it is possible that the Fund may not issue a Section 19 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Notice in situations where
the Fund&#8217;s financial statements prepared </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">later and in accordance with U.S. GAAP and/or the final tax character of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">those distributions might later report that the sources of those </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distributions 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 </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></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;">represents a return of a
portion of your investment, rather than net </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">income or capital gains generated from your investment during a </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">particular period. Although return of capital distributions are not </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">taxable, such distributions would reduce
the basis of a shareholder&#8217;s </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Common Shares and therefore may increase a shareholder&#8217;s capital </font><font
style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">Shares, thereby potentially
increasing a shareholder&#8217;s tax liability. The </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund will prepare and make available to shareholders detailed tax </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">information with respect to the Fund&#8217;s distributions annually. See &#8220;Tax
</font><font style="color:#000000;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 will be automatically
reinvested in additional Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares of the Fund under the Fund&#8217;s Dividend Reinvestment Plan. For </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more information on the Fund&#8217;s dividends and distributions, see </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;Distributions&#8221; and
&#8220;Dividend Reinvestment Plan.&#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;">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;PCQ&#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></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;">[ ] | </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_a9e75bd2-923a-4a4c-abf7-71573d366076_5"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal Income Fund</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;">levels of interest payments
by the Fund&#8217;s portfolio holdings, levels of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">appreciation/depreciation of the Fund&#8217;s portfolio holdings, regulation </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">affecting the timing and character of Fund distributions and other </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">factors), portfolio credit quality,
liquidity, call protection, market supply </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and demand and similar factors relating to the Fund&#8217;s portfolio </font><font
style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">&#8220;Description of
Capital Structure&#8221; and &#8220;Repurchase of Common Shares; </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Conversion to Open-End Fund&#8221; in this prospectus, and see &#8220;Repurchase </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of Common Shares; Conversion to Open-End Fund&#8221; in the Statement of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Additional Information. The Common
Shares are designed for long-term </font><font style="color:#000000;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><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: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></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;">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. 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 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><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, there have been signs of inflationary price movements. As </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such, fixed income securities markets may
experience heightened levels </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of interest rate, volatility and liquidity risk. Any interest rate increases in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the future could cause the value of any fund, such as the Fund, that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">invests in fixed income securities to
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;">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></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 California Municipal 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_a9e75bd2-923a-4a4c-abf7-71573d366076_6"></A> <div style="page-break-after:always;position:relative;">
<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;">ability of municipal
issuers to levy taxes. Issuers of municipal securities </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">also might seek protection under the bankruptcy laws. In the event of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">bankruptcy of such an issuer, the Fund could experience delays in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">collecting principal and interest and the
Fund may not, in all </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">circumstances, be able to collect all principal and interest to which it is
</font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">interest or repayment
of principal, or both, the Fund may take </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">possession of and manage the assets securing the issuer&#8217;s obligations </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">on such securities, which may increase the Fund&#8217;s operating expenses.</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 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 (&#8220;Common Shares&#8221;) any corresponding tax credits. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Such tax credits can generally be
used to offset federal income taxes </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the alternative minimum tax, but such credits are generally not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">refundable. Taxable municipal bonds involve similar risks as tax-exempt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds, 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;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></div> </div> <div style="clear:both;position:relative;"> </div> </div> </div> <div style="float:left;margin-left:18pt;margin-top:-12pt;width:260pt;min-height:642pt;">
<div style="line-height:12.0pt;margin-left:22pt;margin-top:7pt;text-align:left;"><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">bankruptcy is more uncertain, and potentially more adverse to </font><font
style="color:#000000;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;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 style="line-height:12.0pt;margin-top:4pt;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></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;">[ ] | </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_a9e75bd2-923a-4a4c-abf7-71573d366076_7"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal Income Fund</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;">is a large concentration
from issuers in a single state. This is because the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">value of municipal securities can be significantly affected by the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">political, economic, legal, and legislative realities of the particular </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">issuer&#8217;s locality or municipal
sector events. Similarly, changes to state or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">federal regulation tied to a specific sector, such as the hospital sector, </font><font
style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">market.</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;">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 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 California issuers to pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest or repay principal. Certain
issuers of California 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;">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></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;">constitutional amendments, legislative measures, executive orders, </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">administrative regulations, litigation and voter initiatives could have an </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">adverse effect on the debt
obligations of California 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;">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;">7&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO California Municipal 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_a9e75bd2-923a-4a4c-abf7-71573d366076_8"></A> <div style="page-break-after:always;position:relative;">
<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, there have been signs
of inflationary price </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">movements. As such, fixed income securities markets may experience
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">heightened levels of interest rate, 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;">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.</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;">Mortgage-Related and Other Asset-Backed Instruments 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;">Generally, rising interest rates tend to extend the duration of fixed rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related assets, making
them more sensitive to changes in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rates. As a result, in a period of rising interest rates, the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may exhibit additional volatility since individual mortgage holders are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">less likely to exercise prepayment
options, thereby putting additional </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downward pressure on the value of these securities and potentially </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">causing the Fund to lose money. The Fund&#8217;s investments in other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset-backed instruments are subject to
risks similar to those associated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with mortgage-related assets, as well as additional risks associated with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the nature of the assets and the servicing of those assets. Payment of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">principal and interest on asset-backed
instruments may be largely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dependent upon the cash flows generated by the assets backing the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments, and asset-backed instruments may not have the benefit of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any security interest in
the related 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;">The Fund may also invest in the residual or equity tranches of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related and other asset-backed
instruments, which may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">referred to as subordinate mortgage-backed or asset-backed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments
and interest-only mortgage-backed or asset-backed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments. The Fund expects that investments in subordinate </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-backed and other asset-backed instruments will be subject to </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;">[ ] | </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_a9e75bd2-923a-4a4c-abf7-71573d366076_9"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal Income Fund</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;">risks arising from
delinquencies and foreclosures, thereby exposing its </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment portfolio to potential losses. Subordinate securities of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">mortgage-backed and other asset-backed instruments are also subject </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to greater credit risk than those
mortgage-backed or other asset-backed </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments that are more highly rated.</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 mortgage markets in the United States and in various foreign </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">countries have experienced extreme difficulties in the past that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affected the performance and market
value of certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related investments. Delinquencies and losses on residential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and
commercial mortgage loans (especially subprime and second-lien </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage loans) may increase, and a decline in or flattening of housing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other real property values may exacerbate such delinquencies and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">losses. In addition, reduced investor
demand for mortgage loans and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities and increased investor yield requirements
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have caused limited liquidity in the secondary market for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities, which can
adversely affect the market value </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of mortgage-related securities. It is possible that such limited liquidity in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such secondary markets could continue or worsen.</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;">Mortgage-Related Derivative Instruments 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;">Mortgage-related derivative instruments involve risks associated with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related and other asset-backed instruments, privately-issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities, the
mortgage market, the real estate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industry, derivatives and credit default swaps. See &#8220;Mortgage-Related </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and Other Asset-Backed Instruments Risk,&#8221; &#8220;Privately-Issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Mortgage-Related Securities
Risk,&#8221; &#8220;Derivatives Risk,&#8221; and &#8220;Credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Default Swaps Risk.&#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:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Privately-Issued Mortgage-Related 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;">There are no direct or indirect government or agency guarantees of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments in pools created by non-governmental issuers. Privately-issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities are also
not subject to the same </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underwriting requirements for the underlying mortgages that are
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable to those mortgage-related securities that have a government </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or government-sponsored
entity guarantee.</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><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;">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><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><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></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 California Municipal 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_a9e75bd2-923a-4a4c-abf7-71573d366076_10"></A> <div style="page-break-after:always;position:relative;">
<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;">decline in income received
by the Fund from its investments is likely to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">have a negative effect on dividend levels and the market price, NAV </font><font
style="color:#000000;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 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;">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></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;">leverage will generally be based on shorter-term interest rates that </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">would be periodically reset. If shorter-term interest rates rise relative to </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund of leverage (including interest expenses on TOBs and the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">dividend rate on any outstanding Preferred Shares, including the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Preferred Shareholder Gross-Up (as defined
below)) could exceed the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">rate of return on the debt obligations and other investments held by the
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund, thereby reducing return to Common Shareholders. In addition, </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">borne entirely by the Common Shareholders (and not by preferred </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">shareholders) and will reduce the investment return of the Common </font><font style="color:#000000;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:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">result in losses. In addition, Preferred Shares issued by the Fund pay </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">cumulative dividends, which may tend to
increase leverage risk. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Leverage creates several major types of risks for Common Shareholders,
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares or the risk of the Preferred
Shares being downgraded by a rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency. In an extreme case, the Fund&#8217;s current investment income might </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not be sufficient to meet the dividend requirements on Preferred Shares </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding. In order to address these
types of events, the Fund might </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">need to dispose of investments in order to fund a redemption of some </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or all of the Preferred Shares. Dispositions at times of adverse economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions may result in a loss to
the Fund. At other times, these </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dispositions may result in gain at the Fund level and thus in additional </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxable distributions to Common Shareholders. See &#8220;Tax Matters&#8221; for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">more information. Any
Preferred Shares, TOBs, loans of portfolio </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities, short sales and when-issued, delayed delivery and forward </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitment transactions, credit default swaps, reverse repurchases, or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other derivatives by the Fund or
counterparties to the Fund&#8217;s other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leveraging transactions, if any, would have, seniority over the Fund&#8217;s </font><font
style="color:#323232;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> <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;">[ ] | </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_a9e75bd2-923a-4a4c-abf7-71573d366076_11"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal Income Fund</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;">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 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. Derivatives are subject to a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">number of risks, such as liquidity
risk, interest rate risk, market risk, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit risk, leveraging risk, counterparty risk, tax risk, and management </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk, as well as risks arising from changes in applicable requirements. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">They also involve the risk of
mispricing, the risk of unfavorable or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ambiguous documentation and the risk that changes in the value of a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivative may not correlate perfectly with the underlying asset, rate or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">index.</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 use
of derivatives may increase or accelerate the amount of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxes payable by 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 regulation of the
derivatives markets has increased over the past </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">several years, and additional future regulation of the derivatives markets </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may make derivatives more costly, may limit the availability or reduce </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the liquidity of derivatives or may
otherwise adversely affect the value or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">performance of derivatives.</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 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></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;">default swap, it is exposed
to many of the same risks of leverage </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">described herein since if an event of default occurs, the seller must pay </font><font
style="color:#000000;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><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><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> <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 California Municipal 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_a9e75bd2-923a-4a4c-abf7-71573d366076_12"></A> <div style="page-break-after:always;position:relative;">
<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;">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><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><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 than such use is currently considered
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to be. In such case, the Fund may elect to redeem some or all of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares
outstanding, which may require it to dispose of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments at inopportune times and to incur losses on such </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dispositions. Such dispositions may adversely affect the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment performance generally, and
the resultant loss of leverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may materially and adversely affect the Fund&#8217;s investment 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>
<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 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 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 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. Therefore, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may be unable to dispose of such
securities when it desires to do </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">so, or at the most favorable time or price. Private placements may also </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">raise valuation risks. Restricted securities are often purchased at a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">discount from the market price of
unrestricted securities of the same </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer reflecting the fact that such securities may not be readily </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">marketable without some time delay. Such securities are often more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">difficult to value and the sale of such
securities often requires more time </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and results in higher brokerage charges or dealer discounts and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">selling expenses than does the sale of securities trading on national </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities exchanges or in the
over-the-counter markets. Until the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">can sell such securities into the public markets, its holdings may be less </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquid and any sales will need to be made pursuant to an exemption </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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></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;">[ ] | </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_a9e75bd2-923a-4a4c-abf7-71573d366076_13"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal Income Fund</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;">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><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><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><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:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Current rules related to credit risk retention requirements for ABS may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase the cost to originators, securitizers and, in certain cases, asset </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">managers of SPEs in which the Fund
may invest. The impact of the risk </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">retention rules on the securitization markets is uncertain. These </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">requirements may increase the costs to originators, securitizers, and, in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain cases, collateral managers
of securitization vehicles in which the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may invest, which costs could be passed along to the Fund as an </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investor in such vehicles. In addition, the costs imposed by the risk </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">retention rules on originators,
securitizers and/or collateral managers </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;">may result in a reduction of the number of new offerings of ABS and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">thus in fewer investment opportunities for
the Fund. A reduction in the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">number of new securitizations could also reduce liquidity in the markets </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">for certain types of financial assets, which in turn could negatively affect </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the returns on the Fund&#8217;s
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: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&#8217;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,
determined by the ICE Benchmark Administration </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that banks charge one another for the use of short-term money. On </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">July 27, 2017, the Chief Executive of the FCA announced that after </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2021 it would cease its active
encouragement of banks to provide the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quotations needed to sustain LIBOR due to the absence of an active </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market for interbank unsecured lending and other reasons. On March 5, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2021, the FCA publicly announced that
all U.S. Dollar LIBOR settings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will either cease to be provided by any administrator or will no longer be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">representative (i) immediately after December 31, 2021 for one-week </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and two-month U.S. Dollar LIBOR settings
and (ii) immediately after </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">June 30, 2023 for the remaining U.S. Dollar LIBOR settings. As of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">January 1, 2022, as a result of supervisory guidance from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. regulators, some U.S. regulated
entities have ceased entering into </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">new LIBOR contracts with limited exceptions. While publication of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one-, three- and six- month Sterling and Japanese yen LIBOR settings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will continue at least through calendar
year 2022 on the basis of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changed methodology (known as &#8220;synthetic LIBOR&#8221;), these rates have </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">been designated by the FCA as unrepresentative of the underlying </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market they seek to measure and are solely
available for use in legacy </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions. Certain bank-sponsored committees in other jurisdictions,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including Europe, the United Kingdom, Japan and Switzerland, have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">selected alternative reference
rates denominated in other currencies. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the transition process away from LIBOR has become
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increasingly well-defined in advance of the anticipated discontinuation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">date, there remains
uncertainty regarding the future utilization of LIBOR </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the nature of any replacement rate (e.g., the Secured Overnight </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Financing Rate, which is intended to replace U.S. dollar LIBOR and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">measures the cost of overnight borrowings
through repurchase </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreement transactions collateralized with U.S. Treasury securities). Any
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">potential effects of the transition away from LIBOR on the Fund or on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain instruments in
which the Fund invests can be difficult to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ascertain, and they may vary depending on factors that include, but are </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not limited to: (i) existing fallback or termination provisions in individual </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contracts and (ii) whether, how,
and when industry participants develop </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and adopt new reference rates and fallbacks for both legacy and new </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">products and instruments. For example, certain of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments may involve individual
contracts that have no existing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fallback provision or language that contemplates the discontinuation of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">LIBOR, and those investments could experience increased volatility or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">illiquidity as a result of the
transition process. In addition, interest rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">provisions included in such contracts, or in contracts or other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">arrangements entered into by the Fund, may need to be renegotiated. </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 California Municipal 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_a9e75bd2-923a-4a4c-abf7-71573d366076_14"></A> <div style="page-break-after:always;position:relative;">
<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;">On March 15, 2022, the
Adjustable Interest Rate (LIBOR) Act was </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">signed into law. This law provides a statutory fallback mechanism on a </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">nationwide basis to replace LIBOR with a benchmark rate that is </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">selected by the Board of Governors of the
Federal Reserve System and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">based on the Secured Overnight Financing Rate for certain contracts
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that reference LIBOR and contain no, or insufficient, fallback provisions. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">It is expected that
implementing regulations in respect of the law will </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">follow. The transition of investments from LIBOR to a replacement rate </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">as a result of amendment, application of existing fallbacks, statutory </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">requirements or otherwise may also
result in a reduction in the value of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">certain instruments held by the Fund, a change in the cost of borrowing </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or the dividend rate for any Preferred Shares that may be issued by the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund, or a reduction in the
effectiveness of related Fund transactions </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such as hedges. Any such effects of the transition away from LIBOR, as </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">well as other unforeseen effects, could 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><font style="color:#323232;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:#323232;font-family:Arial Narrow;font-size:10pt;">for this exclusion from CFTC regulation, the Fund may consider steps in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">order to continue to qualify for
exemption from CFTC regulation, or may </font><font style="color:#323232;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:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Liquidity Risk.
Liquidity risk exists when particular investments are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">difficult to purchase or sell. Illiquid investments are investments that the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund reasonably expects cannot be sold or disposed of in current </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market conditions in seven calendar days or
less without the sale or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">disposition significantly changing the market value of the investment.
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Illiquid investments may become harder to value, especially in changing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">markets. The Fund&#8217;s
investments in illiquid investments may reduce the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">returns of the Fund because it may be unable to sell the illiquid </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments at an advantageous time or price or possibly require the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund to dispose of other investments at
unfavorable times or prices in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">order to satisfy its obligations, which could prevent the Fund from
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taking advantage of other investment opportunities. Additionally, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market for certain
investments may become illiquid under adverse </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market or economic conditions independent of any specific adverse </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changes in the conditions of a particular issuer. To the extent that 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;">Fund invests in securities of companies with smaller market </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">capitalizations, foreign (non-U.S.) securities, Rule 144A securities, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">illiquid sectors of fixed income
securities, derivatives or securities with </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">substantial market and/or credit risk, the Fund will tend to have greater </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">exposure to 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:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To the extent the Fund invests in Alt Lending ABS, the Alt Lending ABS in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which the Fund invests are typically
not listed on any securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exchange and not registered under the Securities Act. In addition, the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund anticipates that these instruments may only be sold to a limited </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">number of investors and may
have a limited or non-existent secondary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market. Accordingly, the Fund currently expects that certain of its </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments in Alt Lending ABS will face heightened levels of liquidity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risk. Although currently, there is
generally no active reliable, secondary </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market for certain Alt Lending ABS, a secondary market for these </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">alternative lending-related instruments may develop.</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; (a &#8220;RIC&#8221;) under
the Internal Revenue Code as of 1986, as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amended (the &#8220;Code&#8221;) and intends each year to qualify and be eligible </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 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
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></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;">[ ] | </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_a9e75bd2-923a-4a4c-abf7-71573d366076_15"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal Income Fund</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;">income or gain from a
particular investment or activity as qualifying </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">income and the income or gain were later determined not to constitute </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">qualifying income and, together with any other nonqualifying income, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">caused the Fund&#8217;s nonqualifying
income to exceed 10% of its gross </font><font style="color:#000000;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:#000000;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:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To qualify to pay
exempt-interest dividends, which are treated as items </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of interest excludable from gross income for regular federal income tax </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purposes, at least 50% of the value of the total assets of the Fund must </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consist of obligations the interest
on which is exempt from regular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal income tax under section 103(a) of the Code as of the close of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">each quarter of the Fund's taxable year. If the proportion of taxable </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments held by the Fund exceeds 50%
of the Fund's total assets as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the close of any quarter of the Fund's taxable year, the Fund will not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for that taxable year satisfy the general eligibility test that otherwise </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">permits it to pay exempt-interest
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;">The value of the Fund's investments and its net asset value may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affected by changes in tax rates and policies. Because interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income from municipal securities is
normally not subject to regular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal income taxation, the attractiveness of municipal securities in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relation to other investment alternatives is affected by changes in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal income tax rates or changes in the
tax-exempt status of interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income from municipal securities. Any proposed or actual changes in
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such rates or exempt status, therefore, can significantly affect the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">demand for and supply,
liquidity and marketability of municipal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities. This could in turn affect the Fund's net asset value and ability </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to acquire and dispose of municipal securities at desirable yield and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">price levels. Additionally, the Fund is
not a suitable investment for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">individual retirement accounts, for other tax-exempt or tax-deferred
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accounts or for investors who are not sensitive to the federal income tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consequences of their
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;">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></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;">Fund generally will be.
Such sales may result in realization of taxable </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">capital gains (including short-term capital gains, which are generally </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">taxed to shareholders at ordinary income tax rates when distributed net </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of short-term capital losses and net
long-term capital losses), and may </font><font style="color:#000000;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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">material adverse effect on the Fund. While the
Fund seeks to minimize </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such events through controls and oversight, there may still be failures
</font><font style="color:#323232;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></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 California Municipal 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_a9e75bd2-923a-4a4c-abf7-71573d366076_16"></A> <div style="page-break-after:always;position:relative;">
<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;">cyber security breaches
involving trading counterparties or issuers in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">which the Fund invests could adversely impact such counterparties or </font><font
style="color:#000000;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 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><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>
<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;">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 will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seek to sell the securities which it holds. This could involve procedural </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">costs or delays in addition to a
loss on the securities if their value should </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fall 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><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;">Although it is difficult to predict whether the prices of indices and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities underlying structured products will rise or fall, these prices </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(and, therefore, the prices of
structured products) are generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">influenced by the same types of political and economic events that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affect issuers of securities and capital markets generally. Structured </font><font style="color:#323232;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 U.S. Federal
Reserve made emergency interest-rate cuts, moving </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term rates to near zero, issued forward guidance that rates would </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">remain low until the economy weathers the COVID-19 crisis, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">resumed quantitative easing. Additionally,
Congress approved stimulus </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to offset the severity and duration of the adverse economic effects of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">COVID-19 and related disruptions in economic and business activity. </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;">[ ] | </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_a9e75bd2-923a-4a4c-abf7-71573d366076_17"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal Income Fund</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;">Dozens of central banks
across Europe, Asia, and elsewhere have </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">announced and/or adopted similar economic relief packages. The end of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">any such programs could cause market downturns, disruptions and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">volatility, particularly if markets view the
ending as premature.</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;">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. Absent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an exemption from the SEC or other regulatory relief, the Fund is
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally precluded from effecting certain principal transactions with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affiliated brokers, and
its ability to purchase securities being </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underwritten by an affiliated broker or a syndicate including an affiliated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broker, or to utilize affiliated brokers for agency transactions, is subject </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to restrictions. This could limit
the Fund&#8217;s ability to engage in securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions and take advantage of market opportunities.</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 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;) includes provisions that could limit the ability of other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entities or persons to
acquire control of the Fund or to convert the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to open-end status. See &#8220;Anti-Takeover and Other Provisions in the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Declaration of Trust and Bylaws.&#8221; These provisions in the Declaration </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could have the effect of depriving
the Common Shareholders of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">opportunities to sell their Common Shares at a premium over the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">then-current market price 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;">Investments by the Fund in AMT Bonds may expose the Fund to certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks in addition to those typically
associated with municipal bonds. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Interest or principal on AMT Bonds paid out of current or anticipated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">revenues from a specific project or specific asset may be adversely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impacted by declines in revenue from the
project or asset. Declines in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">general business activity could also affect the economic viability 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;">facilities that are the
sole source of revenue to support AMT Bonds. In </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">this regard, AMT Bonds may entail greater risks than general obligation </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">municipal bonds. For shareholders subject to the federal alternative </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">minimum tax, a portion of the
Fund&#8217;s distributions may not be exempt </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">from gross federal income, which may give rise to alternative minimum </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">tax liability.</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;">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><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></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 California
Municipal 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_a9e75bd2-923a-4a4c-abf7-71573d366076_18">
</A> <div style="page-break-after:always;position:relative;"> <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;">do so in the future. If the insurer of a municipal security suffers a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">downgrade in its credit rating or the
market discounts the value of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">insurance provided by the insurer, the rating of the underlying municipal </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">security will be more relevant and the value of the municipal security </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">value of insurance associated with a municipal security would decline </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and may not add any value. The insurance feature of a municipal </font><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><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: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;">[ ] | </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_0c7bb113-9647-49ec-aa90-d5128dae70d2_1"></A> <div style="page-break-after:always;position:relative;">
<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="g399701img61e396ff1.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-left:184pt;margin-top:0;text-align:left;"><font
style="color:#FFFFFF;font-family:Times New Roman;font-size:21pt;line-height:21pt;">PIMCO California Municipal Income </font><font style="color:#FFFFFF;font-family:Times New Roman;font-size:21pt;line-height:21pt;">Fund</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 June 30, 2022, and shows Fund
expenses as a percentage of net </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 June 30, 2022. The extent of the Fund&#8217;s assets </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">attributable to leverage
following an offering, and the Fund&#8217;s associated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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:0.0%;">
<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 Fund&#8217;s Dividend Reinvestment Plan. See </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">&#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:0.0%;">
<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 0.705% 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
</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">six-months ended June 30, 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 [ ], and assumes </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">the Fund will continue to
pay dividends on the ARPS at the &#8220;maximum applicable </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">rate&#8221; called for under the Fund&#8217;s Bylaws due to the ongoing failure of auctions for the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">ARPS. The actual dividend rate paid on the Preferred Shares will vary over time in </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">accordance with variations in
market interest rates. See &#8220;Use of Leverage&#8221; and </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">&#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;">six-months ended June 30, 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 June 30, 2022. See &#8220;Use </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">of Leverage&#8212;Effects of Leverage.&#8221; The actual amount of interest expense borne by the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Fund will vary over time in accordance with the level of the Fund&#8217;s use of Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Shares,
TOBs and/or other forms of borrowing and variations in market interest rates. </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Borrowing expense is required to be treated as an expense of the Fund for accounting </font><font
style="color:#323232;font-family:Arial Narrow;font-size:8pt;">purposes. Any associated income or gains (or losses) realized from leverage obtained </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">through such instruments is
not reflected in the Annual Expenses table above, but </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">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, 2022.</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:0.0%;">
<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: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;
</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;">PIMCO California Municipal Income Fund |
</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="g399701imga29949a93.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_9775125c-1427-460a-b043-923d5eeda12b_1"></A>
<div style="page-break-after:always;position:relative;"> <div style="float:left;margin-left:69pt;margin-top:57pt;width:457pt;min-height:651pt;"> <div style="line-height:14.21pt;margin-top:9.47pt;text-align:left;"><font
style="color:#000000;font-family:Arial Narrow;font-size:13.03pt;line-height:14.21pt;">&#8195;</font></div> </div> <div style="clear:both;"> </div> <div style="float:left;margin-left:69pt;margin-top:-651pt;width:457pt;min-height:651pt;">
<div style="line-height:12.0pt;margin-top:329.5pt;text-align:center;"><font style="color:#3F3F3F;font-family:Arial Narrow;font-size:12pt;line-height:12pt;margin-left:0%;text-transform:uppercase;">This page intentionally left blank</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>
<div style="page-break-after:always;position:relative;"> <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 California Municipal 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: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 period ended June 30, 2022 is derived from
the Fund's unaudited financial statements for the fiscal </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">period ended June 30, 2022. The information in the table below for the fiscal years ended December 31, 2021, 2020,
2019, 2018 and 2017 is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derived from the Fund&#8217;s financial statements for the fiscal year ended December 31, 2021, audited by [ ], whose report on such financial
statements is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contained in the Fund&#8217;s December 31, 2021 Annual Report and is incorporated by reference into the Statement of Additional Information. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information in the table below for the fiscal years ended December 31, 2016, April 30, 2015, 2014, 2013 and 2012 and for the fiscal period ended </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">December 31, 2015 is derived from the Fund&#8217;s financial statements for the fiscal year ended December 31, 2016.</font></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_1"></A> <div style="page-break-after:always;position:relative;">
<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 May 10, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2001, pursuant to an Agreement and
Declaration of Trust governed by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the laws of the Commonwealth of Massachusetts. The Fund commenced
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">operations on June 29, 2001, 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: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 and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">California income tax. In pursuing the Fund&#8217;s investment objective, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s investment manager,
Pacific Investment Management Company </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">LLC (&#8220;PIMCO or the &#8220;Investment Manager&#8221;), also seeks to preserve and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">enhance the value of the Fund&#8217;s holdings relative to the municipal bond </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market generally, using
proprietary analytical models that test and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">evaluate the sensitivity of those holdings to changes in interest rates </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and yield relationships. The Fund cannot assure you that it will achieve </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">its 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 will invest substantially all (at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">least 90%) of its net assets in
municipal bonds which pay interest that, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in the opinion of bond counsel to the issuer (or on the basis of other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">authority believed by PIMCO to be reliable), is exempt from federal and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">California income taxes (i.e.,
excluded from gross income for federal and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">California income tax purposes but not necessarily exempt from the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal alternative minimum tax). Subject to its other investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">policies, the Fund may invest up to 20% of
its total assets in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments the interest from which is subject to the federal alternative
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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. 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></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;">but determined to be of
comparable quality by PIMCO. The Fund may </font><font style="color:#000000;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:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">or that are unrated but
judged to be of comparable quality by PIMCO. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Bonds of below investment grade quality are regarded as having </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">predominantly speculative characteristics with respect to capacity to pay </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">interest and repay principal, and
are commonly referred to as &#8220;junk </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">bonds.&#8221; Bonds in the lowest investment grade category may also be </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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: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 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the State of California, a city in California or a political subdivision, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency, authority, or instrumentality of such state or city, but may be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued by other U.S. states and/or
U.S. territories, the interest from which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is exempt from California and federal income taxes.</font></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 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: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 net assets in municipal bonds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issued by a U.S. state or territory, a
city in a U.S. state or territory, or a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">political subdivision, agency, authority, or instrumentality of such state, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">territory or city, the interest from which is not exempt from California </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income taxes.</font></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></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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_2"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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 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.</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, </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><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. As a shareholder of an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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, swap agreements, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and securities indexes, and enter into interest rate and index futures </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contracts and purchase and sell options
on such futures contracts for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hedging purposes or as part of its overall investment strategy. The Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">also may enter into swap agreements with respect to interest rates and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indexes of securities. If other types
of financial instruments, including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other types of options, futures contracts, or futures options are traded in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 15% 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>
<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 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:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Temporary Defensive 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;">Upon PIMCO&#8217;s recommendation, temporarily or for defensive purposes </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and in order to keep the Fund&#8217;s cash fully invested, the Fund may invest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">up to 100% of its net assets in
high quality, short-term investments, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including U.S. government, mortgage-backed and corporate debt
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities that may be either tax-exempt or taxable. To the extent the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund invests in taxable
short-term investments, the Fund will not at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such times be in a position to achieve 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;">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;">authorizes state and local governments to issue Build America Bonds as </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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_3"></A> <div style="page-break-after:always;position:relative;">
<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;">
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<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;">taxable bonds in 2009 and
2010, without volume limitations, to finance </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">any capital expenditures for which such issuers could otherwise issue </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">traditional tax-exempt bonds. State and local governments may receive </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">a direct federal subsidy payment for a
portion of their borrowing costs </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">on Build America Bonds equal to 35% of the total coupon interest paid </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to investors (or 45% in the case of Recovery Zone Economic </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Development Bonds). The state or local government
issuer can elect to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">either take the federal subsidy or pass the 35% tax credit along to
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">bondholders. The Fund&#8217;s investments in Build America Bonds will result </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">in taxable income
and the Fund may elect to pass through to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">shareholders any corresponding tax credits. Such tax credits can </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">generally be used to offset federal income taxes and the alternative </font><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. Because the payment of principal and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest is generated from securities
held in an escrow account </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">established by the municipality and an independent escrow agent, the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pledge of the municipality has been fulfilled and the original pledge of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">revenue by the
municipality is no longer in place. The escrow account </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities pledged to pay the principal and interest of the pre-refunded </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bond do not guarantee the price movement of the bond </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">before maturity. Issuers of municipal bonds
refund in advance of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">maturity the outstanding higher cost debt and issue new, lower cost </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt,
placing the proceeds of the lower cost issuance into an escrow </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">account to pre-refund the older, higher cost debt. Investment in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pre-refunded municipal bonds held by the Fund may subject the Fund to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rate risk and market risk. In
addition, while a secondary market </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;">exists for pre-refunded municipal bonds, if the Fund sells pre-refunded </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">municipal bonds prior to maturity, the
price received may be more or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">less than the original cost, depending on market conditions at the time </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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 municipal lease obligations. A lease is not a full </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">faith and credit obligation of the
issuer and is usually backed only by the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrowing government&#8217;s unsecured pledge to make annual </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">appropriations for lease payments. There have been challenges to the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">legality of lease financing in numerous
states, and, from time to time, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">certain municipalities have considered not appropriating money for
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">lease payments. In deciding whether to purchase a lease obligation for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund, PIMCO will
assess the financial condition of the borrower or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligor, the merits of the project, other credit characteristics of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligor, the level of public support for the project and the legislative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">history of lease financing in the
state. These securities may be less </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">readily marketable than other municipal 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;">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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">companies, not all of which have the highest credit rating, an event </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involving one or more of
these insurance companies, such as a credit </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;">[ ] | </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>
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<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 California
Municipal 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: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;">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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">TOB Floaters
that cannot be remarketed. The holders of the TOB Floaters </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have the right to tender their certificates in exchange for payment of par </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;">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="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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_5"></A> <div style="page-break-after:always;position:relative;">
<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;">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;">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 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</font></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></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 discretionary authority
of the U.S. government to purchase the </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">the instrumentality. U.S. government securities may include zero coupon </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities, which do not distribute
interest on a current basis and tend to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">be subject to greater risk than interest-paying securities of similar </font><font
style="color:#000000;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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">governments and supranational organizations, such as the World Bank, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and may not be able or
willing to make principal and/or interest </font><font style="color:#323232;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:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-style:italic;font-weight:bold;">Credit ratings and unrated securities.</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;">Rating agencies are private </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">services that provide ratings of the credit quality of debt obligations. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Appendix A to this prospectus
describes the various ratings assigned to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">debt obligations by Moody&#8217;s, S&amp;P and Fitch. As noted in Appendix A, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Moody&#8217;s, S&amp;P and Fitch may modify their ratings of securities to show </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relative standing within a
rating category, with the addition of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">numerical modifiers (1, 2 or 3) in the case of Moody&#8217;s, and with 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: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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_6"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">addition of a plus (+) or
minus (-) sign in the case of S&amp;P and Fitch. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Ratings assigned by a rating agency are not absolute standards of credit </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">quality and do not evaluate market risks. Rating agencies may fail to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">make timely changes in credit ratings
and an issuer&#8217;s current financial </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">condition may be better or worse than a rating indicates. The Fund will </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">not necessarily sell a security when its rating is reduced below its rating </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">at the time of purchase. PIMCO
does not rely solely on credit ratings, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and develops its own analysis of issuer credit 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;">Mortgage-Related and Other Asset-Backed
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 a variety of mortgage-related and other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset-backed instruments issued by government agencies or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">governmental entities or by private
originators or 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:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The mortgage-related assets in which the Fund may invest include, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">without limitation, mortgage pass-through
securities, CMOs, CMBS, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">residential mortgage-backed securities (&#8220;RMBS&#8221;), mortgage dollar </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rolls/buy backs, CMO residuals, adjustable rate mortgage-backed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities (&#8220;ARMBS&#8221;), stripped
mortgage-backed securities (&#8220;SMBS&#8221;) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other securities that directly or indirectly represent a participation </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in, or are secured by and payable from, mortgage loans on real property. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may also invest in other
types of ABS, including CDOs, which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">include CBOs, CLOs and other similarly structured securities. The </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities in which the Fund may invest may pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">variable or fixed rates of interest. When
acquiring mortgage-related or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other ABS, the Fund is not restricted by any particular borrower credit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">criteria. Accordingly, loans underlying mortgage-related securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">acquired by the Fund may be subprime in
quality, or may become </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subprime in quality. Mortgage-related securities are not traded on an </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;">exchange and there may be a
limited market for the securities, especially </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">when there is a perceived weakness in the mortgage and real estate </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">market sectors. Without an active trading market, mortgage-related </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities held in the Fund&#8217;s
portfolio may be particularly difficult to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">value because of the complexities involved in assessing the value of the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">underlying mortgage loans.</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;">Mortgage-Related Derivative 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 engage in derivative transactions related to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-backed securities, including purchasing and
selling </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exchange-listed and OTC put and call options, futures and forwards on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgages and
mortgage-backed securities. The Fund may also invest in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-backed securities credit default swaps, which include swaps </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the reference obligation for which is a mortgage-backed security or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">related index, such as the CMBX Index (a
tradeable index referencing a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">basket of commercial mortgage-backed securities), the TRX Index (a
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tradeable index referencing total return swaps based on commercial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-backed securities) or
the ABX (a tradeable index referencing a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">basket of sub-prime mortgage-backed securities). The Fund may invest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in newly developed mortgage related derivatives that may hereafter </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">become available.</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;Investment Objective and Policies&#8212;Mortgage-Related and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Other Asset-Backed Instruments&#8221; in the Statement of Additional </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Information and &#8220;Principal Risks of the Fund&#8212;Mortgage-Related and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Asset-Backed Instruments
Risk&#8221; in this prospectus for a more detailed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">description of the types of mortgage-related and other asset-backed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities in which the Fund may invest and their related 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;">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, instruments such as bank
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital securities, unsecured bank loans, corporate bonds, money market </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments and certain
types of mortgage-related and other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset-backed securities. Due to their variable- or floating-rate features, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these instruments will generally pay higher levels of income in a rising </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rate environment and lower
levels of income as interest rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decline. For the same reason, the market value of a variable- or
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">floating-rate instrument is generally expected to have less sensitivity to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fluctuations in market
interest rates than a fixed-rate instrument, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">although the value of a variable- or floating-rate instrument may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">nonetheless decline as interest rates rise and due to other factors, such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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>
<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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_7"></A> <div style="page-break-after:always;position:relative;">
<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;">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 style="line-height:12.0pt;margin-top:4pt;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></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;">with such instruments. There is no assurance that these derivative </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">strategies will be available at any time or
that PIMCO will determine to </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">addition, the Fund may be subject to certain restrictions on its use of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">derivative strategies imposed by
guidelines of one or more rating </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">agencies that may issue ratings for any preferred shares issued by the </font><font
style="color:#000000;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 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</font></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></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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_8"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">either the buyer or seller
in the transaction. If the Fund is a buyer and no </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">credit event occurs, the Fund may recover nothing if the swap is held </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">through its termination date. However, if a credit event occurs, the buyer </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">generally may elect to receive the
full notional value of the swap from </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the seller, who, in turn, generally will recover an amount significantly </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">lower than the equivalent face amount of the obligations of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reference entity, whose value may have
significantly decreased, through </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">(i) physical delivery of such obligations by the buyer, (ii) cash settlement </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or (iii) an auction process. As a seller, the Fund generally receives an </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">upfront payment or a fixed rate of
income throughout the term of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">swap provided that there is no credit event. As the seller, the Fund </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">would effectively add leverage to its portfolio because, in addition to its </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">total net assets, the Fund would
be subject to investment exposure on </font><font style="color:#000000;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 ABS and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">credit indexes, the quoted market prices and resulting values, as well as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the annual payment rate, serve as an
indication of the current status of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seller, coupled with the upfront or periodic payments previously </font><font
style="color:#323232;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:#323232;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></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;">structured instruments are outstanding. As a result, the interest and/or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">principal payments that may be made
on a structured product may vary </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">widely, depending on a variety of factors, including the volatility of the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">embedded index and the effect of changes in the embedded index on </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">principal and/or interest payments. The rate
of return on structured </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">notes may be determined by applying a multiplier to the performance or
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">differential performance of the referenced index(es) or other asset(s). </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Application of a
multiplier involves leverage that will serve to magnify </font><font style="color:#000000;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 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;">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></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_9"></A> <div style="page-break-after:always;position:relative;">
<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;">companies advised by PIMCO
in connection with their cash </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">management activities. The Fund will treat its investments in other
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment companies that invest primarily in types of securities in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">which the Fund may invest
directly as investments in such types of </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">investment in an investment company that invests primarily in debt </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities will be treated by the Fund as
an investment in a debt </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">security). As a shareholder in an investment company, the Fund would </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">bear
its ratable share of that investment company&#8217;s expenses and would </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">remain subject to payment of the Fund&#8217;s management fees and other </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">expenses with respect to assets so invested. Common Shareholders </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">would therefore be subject to duplicative
expenses to the extent the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund invests in other investment companies. The securities of other
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment companies may be leveraged, in which case the NAV and/or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">market value of the
investment company&#8217;s shares will be more volatile </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">than unleveraged investments. See &#8220;Principal Risks of the </font><font
style="color:#000000;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 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</font></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. Typically, no income accrues on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities the Fund has committed to purchase prior to the time delivery </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the securities is made, although
the Fund may earn income on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities it has segregated , if any, to cover these positions. When the </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;">Fund has sold a security on
a when-issued, delayed delivery or forward </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">commitment basis, the Fund does not participate in future gains or </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">losses with respect to the security. If the other party to a transaction </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">fails to pay for the securities, the
Fund could suffer a loss. Additionally, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">when selling a security on a when-issued, delayed delivery or forward </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">commitment basis without owning the security, the Fund will incur a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">loss if the security&#8217;s price
appreciates in value such that the security&#8217;s </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">price is above the 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><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;">contracts, options on futures contracts, forward contracts, or any interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate, securities-related or other
hedging instrument, including swap </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agreements and other derivative instruments. 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 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decrease the leverage it
currently maintains by redeeming its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding Preferred Shares or unwinding TOBs and may or may not </font><font
style="color:#323232;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;">The amount of leverage that the Fund uses may change, but total </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage is not normally expected to exceed 50% of the Fund&#8217;s total </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assets. To the extent the Fund
covers its commitments under TOBs or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other derivatives instruments by the segregation of liquid assets, or by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entering into offsetting transactions or owning positions covering its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations, they will not be
considered &#8220;senior securities&#8221; under the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Investment Company Act of 1940 (&#8220;1940 Act&#8221;) and will not be subject </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the 50% policy described in the foregoing sentence.</font></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 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></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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_10"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">to increase or decrease, or
eliminate entirely, its use of such leverage </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">yield curve environment, interest rate trends, market conditions and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">other factors. The Fund may also
determine to decrease the leverage it </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">currently maintains by redeeming its outstanding Preferred Shares or </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">unwinding TOBs and may or may not determine to replace such leverage </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">through other sources. If the Fund
determines to add leverage following </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">an offering, it is not possible to predict with accuracy the precise </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">amount of leverage that would be added, in part because it is not </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">possible to predict the number of Common
Shares that ultimately will </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">does not add additional leverage following an offering, the Fund&#8217;s total </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">amount of leverage as a
percentage of its total assets will decrease, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">which could result in a reduction of investment income available for </font><font
style="color:#000000;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 new Preferred </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares unless immediately after such issuance the value of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">total net assets (as defined
below) is at least 200% of the liquidation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of the outstanding Preferred Shares and the newly issued </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares plus the aggregate amount of any senior securities of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund representing indebtedness
(i.e., such liquidation value plus the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">aggregate amount of senior securities representing indebtedness may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not exceed 50% of the Fund&#8217;s total net assets). In addition, the Fund is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not permitted to declare any
cash dividend or other distribution on its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Common Shares unless, at the time of such declaration, the value of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s total net assets satisfies the above-referenced 200% coverage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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;">Existing SEC guidance
generally prohibits the Fund from engaging in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">most forms of leverage representing indebtedness other than preferred </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shares (including the use of TOBs, to the extent that these instruments </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are not covered as described below)
unless immediately after the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuance of the leverage the Fund has satisfied the asset coverage test </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">with respect to senior securities representing indebtedness prescribed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by the 1940 Act; that is, the value of
the Fund&#8217;s total assets less all </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liabilities and indebtedness not represented by senior securities (for </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these purposes, &#8220;total net assets&#8221;) is at least 300% of the senior </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities representing
indebtedness (effectively limiting the use of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage through senior securities representing indebtedness to 33 </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">1/3% of the Fund&#8217;s total net assets, including assets attributable to such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage). 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, this asset coverage test is satisfied. The use of these </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">forms of leverage increases the
volatility of the Fund&#8217;s investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">portfolio and could result in larger losses to Common Shareholders than </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">if these strategies were not used. See &#8220;Principal Risks of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8212;Leverage Risk.&#8221; To the
extent that the Fund engages in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrowings, it may prepay a portion of the principal amount of the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">borrowing to the extent necessary in order to maintain the required </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset coverage. Failure to
maintain certain asset coverage requirements </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could result in an event of
default.</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:-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 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;">Under the 1940 Act, the Fund is currently not permitted to issue </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">preferred shares unless immediately after such issuance the value of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s total net assets is at
least 200% of the liquidation value of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s preferred shares plus the aggregate amount of any senior </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities of the Fund representing indebtedness (i.e., such liquidation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value plus the aggregate amount of
senior securities representing </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indebtedness may not exceed 50% of the Fund&#8217;s total net assets). In </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">addition, for so long as the Fund has preferred shares outstanding, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund will not be permitted to declare
any cash dividend or other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution on its Common Shares unless, at the time of such
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">declaration, the value of the Fund&#8217;s total net assets, after giving effect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such cash
dividend or other distribution, satisfies the above-referenced </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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;">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><font style="color:#323232;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:#323232;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:#323232;font-family:Arial Narrow;font-size:10pt;">yield on your Common Shares. When leverage is used, the NAV and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market price of the Common Shares and the
yield to Common </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shareholders will be more volatile. See &#8220;Principal Risks of the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8212;Leverage Risk.&#8221; In addition, dividend, interest and other costs </font><font style="color:#323232;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:#323232;font-family:Arial Narrow;font-size:10pt;">may borrow money in order to repurchase its shares or as a temporary </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">measure for extraordinary or emergency purposes, including for the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment of dividends or the settlement of
securities transactions which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">otherwise might require untimely dispositions of portfolio securities held </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 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:14.0pt;margin-top:10pt;text-align:left;"><font style="color:#00687D;font-family:Arial Narrow;font-size:12pt;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, 2021, 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, 2021, 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></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_11"></A> <div style="page-break-after:always;position:relative;">
<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;">that the Fund will pay
dividends on Preferred Shares at an estimated </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">annual effective Preferred Share dividend rate of [ ]% for ARPS and [ ]% </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">for RVMTP (as of June 30, 2022) and interest on TOBs at an estimated </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">annual effective interest expense rate of
[ ]% (as of June 30, 2022). </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Based on such estimates, the annual return that the Fund&#8217;s portfolio </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">must experience (net of expenses) in order to cover such costs is [ ]%. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The information below does not reflect
any Fund&#8217;s use of certain other </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">forms of economic leverage achieved through the use of other
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments or transactions not considered to be senior securities under </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the 1940 Act, such as
covered credit default swaps or other derivative </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 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 style="margin-top:0.0%;">
<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> <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;">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><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: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.&nbsp;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></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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_12"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">shutdowns may affect
investor and consumer confidence and may </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">adversely impact financial markets and the broader economy, perhaps </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">suddenly and to a significant degree. Governmental and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">quasi-governmental authorities and regulators
throughout the world </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">have previously responded to serious economic disruptions with a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">variety of
significant fiscal and monetary policy changes, including but </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">not limited to, direct capital infusions into companies, new monetary </font><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.&nbsp;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, it 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></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Current market conditions may
pose heightened risks with respect to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s investment in fixed income securities. As such, 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. Any
interest rate increases in the future could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">cause the value of any Fund, such as the Fund, that invests in fixed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income securities to 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;">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></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></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;">proceeds of a special excise or other specific revenue source, there is no </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">guarantee that the particular
project will generate enough revenue to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">pay its obligations, in which case the Fund&#8217;s performance may be </font><font
style="color:#000000;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 to holders of the Fund&#8217;s </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">common shares (&#8220;Common
Shares&#8221;) any corresponding tax credits. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Such tax credits can generally be used to offset federal income taxes </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and the alternative minimum tax, but such credits are generally not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">refundable. Taxable municipal bonds
involve similar risks as tax-exempt </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds, including credit and 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;">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></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_13"></A> <div style="page-break-after:always;position:relative;">
<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;">municipality&#8217;s
ability to raise tax revenue and maintain a fiscally sound </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">budget. The timely payments may also be influenced by any unfunded </font><font
style="color:#000000;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 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></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 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></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;">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></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;">are supported only by the
credit of the agency, instrumentality or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">corporation. Although legislation has been enacted to support certain </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">government sponsored entities, including the FHLBs, FHLMC and FNMA, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">there is no assurance that the obligations
of such entities will be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">satisfied in full, or that such obligations will not decrease in value or
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">default. It is difficult, if not impossible, to predict the future political, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">regulatory or
economic changes that could impact the government </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">sponsored entities and the values of their related securities or </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">obligations. In addition, certain governmental entities, including FNMA </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and FHLMC, have been subject to
regulatory scrutiny regarding their </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">accounting policies and practices and other concerns that may result in </font><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></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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_14"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">restrictions, policies or
developments may affect the investment </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">techniques available to PIMCO and each individual portfolio manager in </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">connection with managing the Fund and may also adversely affect the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">ability of the Fund to achieve its
investment objective. There also can be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">no assurance that all of the personnel of PIMCO will continue to be </font><font
style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">one or more key employees of PIMCO
could have an adverse impact on </font><font style="color:#000000;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><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 NAV, delays </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in NAV calculation and/or the inability to calculate NAVs over extended </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">periods. The Fund may be unable to
recover any losses associated with </font><font style="color:#323232;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, there have been signs of inflationary price </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">movements. As such, fixed
income securities markets may experience </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">heightened levels of interest rate, 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></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;">things remaining equal, for
each one percentage point increase in </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">interest rates, the value of a portfolio of fixed income investments would </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">generally be expected to decline by one percent for every year of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">portfolio&#8217;s average duration above
zero. For example, the value of a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">portfolio of fixed income securities with an average duration of fourteen </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">years would generally be expected to decline by approximately 14% if </font><font style="color:#000000;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;">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.</font></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;">Fund&#8217;s interest rate
sensitivity.&nbsp;Convexity measures the rate of change of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">duration in response to changes in interest rates. With respect to a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security&#8217;s price, a larger convexity (positive or negative) may imply more </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dramatic price changes in
response to changing interest rates.&nbsp;Convexity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be positive or negative. Negative convexity implies that interest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rate increases result in increased duration, meaning increased sensitivity </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in prices in response to rising
interest rates. Thus, securities with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">negative convexity, which may include bonds with traditional call </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">features and certain mortgage-backed securities, may experience </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">greater losses in periods of rising interest
rates. Accordingly, if the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">holds such securities, the Fund may be subject to a greater risk of losses </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_15"></A> <div style="page-break-after:always;position:relative;">
<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;">potentially lead to
decreased liquidity and increased volatility in the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">fixed income markets. Such issues may be exacerbated during periods of </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">economic uncertainty. All of these factors, collectively and/or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">individually, could cause the Fund to lose
value.</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.</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;">Mortgage-Related and Other Asset-Backed Instruments 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 mortgage-related assets in which the Fund may invest include, but </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are not limited to, any security,
instrument or other asset that is related </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to U.S. or non-U.S. mortgages, including those issued by private </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">originators or issuers, or issued or guaranteed as to principal or interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">by the U.S. government or its
agencies or instrumentalities or by </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">non-U.S. governments or authorities, such as, without limitation, assets </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">representing interests in, collateralized or backed by, or whose values </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are determined in whole or in part by
reference to any number of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgages or pools of mortgages or the payment experience of such
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgages or pools of mortgages, including REMICs, which could </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">include Re-REMICs, mortgage
pass-through securities, inverse floaters, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">CMOs, CLOs, multiclass pass-through securities, private mortgage </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pass-through securities, stripped mortgage securities (generally </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest-only and principal-only securities),
mortgage-related asset </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">backed securities and mortgage-related loans (including through
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">participations, assignments, originations and whole loans), including </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commercial and residential
mortgage loans. Exposures to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related assets through derivatives or other financial
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments will be considered investments in mortgage-related 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;">The Fund may also invest in other types of ABS, including CDOs, CBOs </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and CLOs and other similarly structured
securities See &#8220;Investment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Objective and Policies-Portfolio Contents and Other
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Information-Mortgage-Related and Other Asset-Backed Instruments&#8221; in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">this prospectus and
&#8220;Investment Objective and Policies-Mortgage-Related</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;"> and Other Asset-Backed Instruments&#8221; in the Statement of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Additional Information for a description of the various mortgage-related </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other asset-backed instruments in
which the Fund may invest and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">their related risks.</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;">Mortgage-related and other asset-backed instruments represent </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interests in &#8220;pools&#8221; of mortgages or other assets such as consumer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loans or receivables held in
trust and often involve risks that are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">different from or possibly more acute than risks associated with other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">types of debt 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;">Generally,
rising interest rates tend to extend the duration of fixed rate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related assets, making them more sensitive to changes in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest rates. As a result, in a period of rising interest rates, the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may exhibit additional volatility
since individual mortgage holders are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">less likely to exercise prepayment options, thereby putting additional </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">downward pressure on the value of these securities and potentially </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">causing the Fund to lose money. This is
known as extension risk. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Mortgage-backed securities can be highly sensitive to rising interest
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rates, such that even small movements can cause the Fund to lose value. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Mortgage-backed
securities, and in particular those not backed by a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">government guarantee, are subject to credit risk. When interest rates </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decline, borrowers may pay off their mortgages sooner than expected. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">This can reduce the returns of the Fund
because the Fund may have to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reinvest that money at the lower prevailing interest rates. The Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments in other asset-backed instruments are subject to risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar to those associated with
mortgage-related assets, as well as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">additional risks associated with the nature of the assets and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">servicing of those assets. Payment of principal and interest on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset-backed instruments may be largely
dependent upon the cash </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">flows generated by the assets backing the instruments, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset-backed
instruments may not have the benefit of any security </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest in the related 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;">Subordinate mortgage-backed or asset-backed instruments are paid </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest only to the extent that there are
funds available to make </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments. To the extent the collateral pool includes a large percentage
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of delinquent loans, there is a risk that interest payments on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subordinate mortgage-backed or
asset-backed instruments will not be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fully paid.</font></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 are multiple tranches of mortgage-backed and asset-backed </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments, offering investors various
maturity and credit risk </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">characteristics. Tranches are categorized as senior, mezzanine, and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subordinated/equity or &#8220;first loss,&#8221; according to their degree of risk. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">most
senior tranche of a mortgage-backed or asset-backed instrument </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">has the greatest collateralization and pays the lowest interest rate. If </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">there are defaults or the collateral otherwise underperforms, scheduled </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments to senior tranches take
precedence over those of mezzanine </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tranches, and scheduled payments to mezzanine tranches take
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">precedence over those to subordinated/equity tranches. Lower tranches </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">represent lower degrees of
credit quality and pay higher interest rates </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">intended to compensate for the attendant risks. The return on the lower </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tranches is especially sensitive to the rate of defaults in the collateral </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">pool. The lowest tranche (i.e., the
&#8220;equity&#8221; or &#8220;residual&#8221; tranche) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">specifically receives the residual interest payments (i.e., money that is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">left over after the higher tranches have been paid and expenses of the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuing entities have been paid) rather
than a fixed interest rate. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund may also invest in the residual or equity tranches of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related and other asset-backed instruments, which 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: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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_16"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">referred to as subordinate
mortgage-backed or asset-backed </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments and interest-only mortgage-backed or asset-backed
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments. The Fund expects that investments in subordinate </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">mortgage-backed and other
asset-backed instruments will be subject to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">risks arising from delinquencies and foreclosures, thereby exposing its </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment portfolio to potential losses. Subordinate securities of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">mortgage-backed and other asset-backed
instruments are also subject </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to greater credit risk than those mortgage-backed or other asset-backed </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments that are more highly 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;">The mortgage markets in the United States and in various foreign </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">countries have experienced extreme difficulties in the past that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affected the performance and market
value of certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related investments. Delinquencies and losses on residential </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and
commercial mortgage loans (especially subprime and second-lien </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage loans) may increase, and a decline in or flattening of housing </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and other real property values may exacerbate such delinquencies and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">losses. In addition, reduced investor
demand for mortgage loans and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities and increased investor yield requirements
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">have caused limited liquidity in the secondary market for </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities, which can
adversely affect the market value </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of mortgage-related securities. It is possible that such limited liquidity in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such secondary markets could continue or worsen.</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;">Mortgage-Related Derivative Instruments 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 engage in derivative transactions related to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-backed securities, including purchasing and
selling </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exchange-listed and OTC put and call options, futures and forwards on </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgages and
mortgage-backed securities. The Fund may also invest in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-backed securities credit default swaps, which include swaps </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the reference obligation for which is a mortgage-backed security or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">related index, such as the CMBX Index (a
tradeable index referencing a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">basket of commercial mortgage-backed securities), the TRX Index (a
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tradeable index referencing total return swaps based on commercial </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-backed securities) or
the ABX (a tradeable index referencing a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">basket of sub-prime mortgage-backed securities). The Fund may invest </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in newly developed mortgage related derivatives that may hereafter </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">become available.</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Derivative mortgage-backed securities (such as principal-only (&#8220;POs&#8221;), </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest-only (&#8220;IOs&#8221;) or inverse floating rate securities) are particularly </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exposed to call and
extension risks. Small changes in mortgage </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">prepayments can significantly impact the cash flows and the market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value of these derivative instruments. In general, the risk of faster than </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">anticipated prepayments adversely
affects IOs, super floaters and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">premium priced mortgage- backed securities. The risk of slower than
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">anticipated prepayments generally affects POs, floating-rate securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject to interest rate
caps, support tranches and discount priced </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-backed securities. In addition, particular derivative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments may be leveraged such that their exposure (i.e., price </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">sensitivity) to interest rate and/or
prepayment risk is magnified. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Mortgage-related derivative instruments involve risks associated with
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related and other asset-backed instruments, privately-issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related
securities, the mortgage market, the real estate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industry, derivatives and credit default swaps. See &#8220;Mortgage-Related </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;">and Other Asset-Backed
Instruments Risk,&#8221; &#8220;Privately-Issued </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Mortgage-Related Securities Risk,&#8221; &#8220;Derivatives Risk,&#8221; and &#8220;Credit </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Default Swaps 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;">Mortgage-related derivative instruments involve risks associated with </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related and other asset-backed instruments, privately-issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities, the
mortgage market, the real estate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">industry, derivatives and credit default swaps. See &#8220;Mortgage-Related </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and Other Asset-Backed Instruments Risk,&#8221; &#8220;Privately-Issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Mortgage-Related Securities
Risk,&#8221; &#8220;Derivatives Risk,&#8221; and &#8220;Credit </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Default Swaps 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;">Privately-Issued Mortgage-Related 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;">There are no direct or indirect government or agency guarantees of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payments in pools created by
non-governmental issuers. Privately-issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">mortgage-related securities are also not subject to the same </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underwriting requirements for the underlying mortgages that are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">applicable to those mortgage-related
securities that have a government </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or government sponsored entity guarantee.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Privately-issued mortgage-related securities are not traded on an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exchange and there may be a limited market
for the securities, especially </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">when there is a perceived weakness in the mortgage and real estate
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market sectors. Without an active trading market, mortgage-related </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securities held in the
Fund&#8217;s portfolio may be particularly difficult to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">value because of the complexities involved in assessing the value of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underlying mortgage loans.</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></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_17"></A> <div style="page-break-after:always;position:relative;">
<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;">invest in such securities,
which could have a negative effect on the NAV </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and market price of the Fund&#8217;s Common Shares or Common Share </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">dividends. These securities are considered predominantly speculative </font><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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_18"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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 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 California issuers to pay </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">interest or repay principal. Certain issuers of California 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;">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 could have an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adverse effect on the debt
obligations of California 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;">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></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 taxing and spending
authority of New York governmental entities </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may impair the ability of New York issuers to pay principal and/or </font><font
style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">have major concentrations in
certain industries, such as financial </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">services, and may be sensitive to economic problems affecting those </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">industries. Future New York political and economic developments, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">constitutional amendments, legislative
measures, executive orders, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">administrative regulations, litigation and voter initiatives could have an </font><font
style="color:#000000;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. 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></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;">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></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_19"></A> <div style="page-break-after:always;position:relative;">
<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;">technique that may expose
the Fund to greater risk and increased costs. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund&#8217;s assets attributable to any outstanding Preferred Shares or </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the net proceeds that the Fund obtains from its use of TOBs, derivatives </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or other forms of leverage, if any,
will be invested in accordance with </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund&#8217;s investment objective and policies as described in this </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">prospectus. Dividends payable with respect to Preferred Shares </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">outstanding and interest expense payable by the
Fund with respect to </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">any TOBs, derivatives and other forms of leverage will generally be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">based on
shorter-term interest rates that would be periodically reset. If </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">shorter-term interest rates rise relative to the rate of return on the </font><font
style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">(including interest expenses on
TOBs and the dividend rate on any </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">outstanding Preferred Shares s, including the Preferred Shareholder </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Gross-Up (as defined below)) could exceed the rate of return on the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">debt obligations and other investments
held by the Fund, thereby </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">reducing return to Common Shareholders. In addition, fees and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">expenses
of any form of leverage used by the Fund will be borne entirely </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">by the Common Shareholders (and not by preferred shareholders) and </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">will reduce the investment return of the Common Shares. Therefore, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">there can be no assurance that the
Fund&#8217;s use of leverage will result in a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">higher yield on the Common Shares, and it may result in losses. In </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">addition, Preferred Shares issued by the Fund pay cumulative dividends, </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">which may tend to increase leverage
risk. Leverage creates several </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">major types of risks for Common Shareholders, 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><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the Fund will fail to meet its asset coverage requirements for Preferred </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Shares or the risk of the Preferred
Shares being downgraded by a rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">agency. In an extreme case, the Fund&#8217;s current investment income might </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">not be sufficient to meet the dividend requirements on Preferred Shares </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">outstanding. In order to address these
types of events, the Fund might </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">need to dispose of investments in order to fund a redemption of some </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or all of the Preferred Shares. Dispositions at times of adverse economic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">conditions may result in a loss to
the Fund. At other times, these </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">dispositions may result in gain at the Fund level and thus in additional </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;">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, if any, are subject to special risks. A short sale </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">involves the sale by the Fund of a security that it does not own with the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">hope of purchasing the same security
at a later date at a lower price. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The Fund may also enter into a short position through a forward
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">commitment or a short derivative position through a futures contract or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">swap agreement. If the
price of the security or derivative has increased </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">during this time, then the Fund will incur a loss equal to the increase in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">price from the time that the short sale was entered into plus any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transaction costs (i.e., premiums and
interest) paid to the broker-dealer </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to borrow securities. Therefore, short sales involve the risk that losses </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be exaggerated, potentially losing more money than the actual cost </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the investment. By contrast, a loss
on a long position arises from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">decreases in the value of the security and is limited by the fact that a </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">security&#8217;s value cannot decrease below zero. By investing the proceeds </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">received from selling securities
short, the Fund could be deemed to be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">employing a form of leverage, which creates special risks. The use of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage may increase the Fund&#8217;s exposure to long security positions </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and make any change in the
Fund&#8217;s NAV greater than it would be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">without the use of leverage. This could result in increased volatility of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">returns. There is no guarantee that any leveraging strategy the Fund </font><font style="color:#323232;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></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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_20"></A>
<div style="page-break-after:always;position:relative;"> <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 California Municipal 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: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;">regulatory or political
conditions generally may exist for long periods of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">time. Also, there is the risk that the third party to the short sale will not </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">fulfill its contractual obligations, causing a loss 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;">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;">Derivatives are subject to a number of risks, such as liquidity risk (which </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may be heightened for
highly-customized derivatives), interest rate risk, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market risk, credit risk, leveraging risk, counterparty risk, tax risk and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">management 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 may not correlate perfectly with the underlying </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">asset, rate or index.
If the Fund invests in a derivative instrument, the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund could lose more than the amount invested and derivatives may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase the volatility of the Fund, especially in unusual or extreme </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market conditions. Also, suitable
derivative transactions may not be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">available in all circumstances and there can be no assurance that the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund will engage in these transactions to reduce exposure to other risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">when that would be beneficial or
that, if used, such strategies will be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">successful. The Fund&#8217;s use of derivatives may increase or accelerate the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount of taxes 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;">Over-the-counter (&#8220;OTC&#8221;) derivatives are also subject to the risk that a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparty to the
transaction will not fulfill its contractual obligations </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to the other party, as many of the protections afforded to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">centrally-cleared derivative transactions might not be available for OTC </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">derivative transactions. For
derivatives traded on an exchange or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">through a central counterparty, credit risk resides with the Fund&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">clearing broker, or the clearinghouse, rather than with a counterparty in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an OTC derivative transaction. The
primary credit risk on derivatives that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are exchange-traded or traded through a central clearing counterparty </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">resides with the Fund&#8217;s clearing broker, or the clearinghouse. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Participation in the markets for
derivative instruments involves </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investment risks and transaction costs to which the Fund may not be
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">subject absent the use of these strategies. The skills needed to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">successfully execute derivative
strategies may be different from those </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">needed for other types of transactions. If the Fund incorrectly forecasts </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the value and/or creditworthiness of securities, currencies, interest rates, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">counterparties or other economic
factors involved in a derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transaction, the Fund might have been in a better position if the Fund </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">had not entered into such derivative transaction. In evaluating the risks </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and contractual obligations
associated with particular derivative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">instruments, it is important to consider that certain derivative </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions may be modified or terminated only by mutual consent of </font><font style="color:#323232;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> <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;">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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">markets has increased over the past
several years, and additional future </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regulation of the derivatives markets may make derivatives more costly, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">may limit the availability or reduce the liquidity of derivatives or may </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">otherwise adversely affect the value
or performance of derivatives. Any </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such adverse future developments could impair the effectiveness or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">raise the costs of the Fund&#8217;s derivative transactions, impede the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">employment of the Fund&#8217;s
derivatives strategies, or adversely affect the </font><font style="color:#323232;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: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></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_21"></A> <div style="page-break-after:always;position:relative;">
<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;">terminated in accordance
with its terms and the Fund&#8217;s ability to realize </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">its rights under the derivative instrument and its ability to distribute the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">proceeds could be adversely affected. If a counterparty becomes </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">bankrupt or otherwise fails to perform its
obligations under a derivative </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">contract due to financial difficulties, the Fund may experience significant </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">delays in obtaining any recovery (including recovery of any collateral it </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">has provided to the counterparty) in
a dissolution, assignment for the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">benefit of creditors, liquidation, winding-up, bankruptcy or other </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">analogous proceeding. In addition, in the event of the insolvency of a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">counterparty to a derivative
transaction, the derivative transaction </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">would typically be terminated at its fair market value. If the Fund is </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">owed this fair market value in the termination of the derivative </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">transaction and its claim is unsecured, the
Fund will be treated as a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">general creditor of such counterparty and will not have any claim with
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">respect to any underlying security or asset. The Fund may obtain only a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">limited recovery or may
obtain no recovery in such circumstances.&nbsp;While </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">the Fund may seek to manage its counterparty risk by transacting with a </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">number of counterparties, concerns about the solvency of, or a default </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">by, one large market participant could
lead to significant impairment of </font><font style="color:#000000;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><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 than such use is currently considered </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to be. In such case, the Fund may elect to redeem some or all of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preferred Shares outstanding, which may require it to dispose of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments at inopportune times and to incur
losses on such </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;">dispositions. Such dispositions may adversely affect the Fund&#8217;s </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment performance generally, and
the resultant loss of leverage </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may materially and adversely affect the Fund&#8217;s investment 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, 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></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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_22"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">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 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></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;">been eligible for
exemptions from certain regulations. However, there is </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">no assurance that the Fund and the Investment Manager will continue </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to be eligible for such exemptions. Actions by governmental entities may </font><font style="color:#000000;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:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Current rules related to credit risk retention requirements for ABS may </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">increase the cost to originators, securitizers and, in certain cases, asset </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">managers of securitization
vehicles in which the Fund may invest. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impact of the risk retention rules on the securitization markets is </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">uncertain. These requirements may increase the costs to originators, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">securitizers, and, in certain cases,
collateral managers of securitization </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">vehicles in which the Fund may invest, which costs could be passed </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">along to the Fund as an investor in such vehicles. In addition, the costs </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">imposed by the risk retention rules
on originators, securitizers and/or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">collateral managers may result in a reduction of the number of new </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">offerings of ABS and thus in fewer investment opportunities for the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund. A reduction in the number of new
securitizations could also </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reduce liquidity in the markets for certain types of financial assets, which </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">in turn could negatively affect the returns on the Fund&#8217;s investment.</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&#8217;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,
determined by the ICE Benchmark Administration </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">that banks charge one another for the use of short-term money. ,On </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">July 27, 2017, the Chief Executive of the FCA announced that after </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2021 it would cease its active
encouragement of banks to provide the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">quotations needed to sustain LIBOR due to the absence of an active </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market for interbank unsecured lending and other reasons. On March 5, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">2021, the FCA publicly announced that
all U.S. Dollar LIBOR settings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will either cease to be provided by any administrator or will no longer be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">representative (i) immediately after December 31, 2021 for one-week </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and two-month U.S. Dollar LIBOR settings
and (ii) immediately after </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">June 30, 2023 for the remaining U.S. Dollar LIBOR settings. As of
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">January 1, 2022, as a result of supervisory guidance from </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">U.S. regulators, some U.S. regulated
entities have ceased entering into </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">new LIBOR contracts with limited exceptions. While publication of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">one-, three- and six- month Sterling and Japanese yen LIBOR settings </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will continue at least through calendar
year 2022 on the basis of a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">changed methodology (known as &#8220;synthetic LIBOR&#8221;), these rates have </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">been designated by the FCA as unrepresentative of the underlying </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market they seek to measure and are solely
available for use in legacy </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions. Certain bank-sponsored committees in other jurisdictions,
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">including Europe, the United Kingdom, Japan and Switzerland, have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">selected alternative reference
rates denominated in other currencies. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Although the transition process away from LIBOR has become </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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_23"></A> <div style="page-break-after:always;position:relative;">
<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;">increasingly well-defined
in advance of the anticipated discontinuation </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">date, there remains uncertainty regarding the future utilization of LIBOR </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and the nature of any replacement rate (e.g., the Secured Overnight </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Financing Rate, which is intended to
replace U.S. dollar LIBOR and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">measures the cost of overnight borrowings through repurchase
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">agreement transactions collateralized with U.S. Treasury securities). Any </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">potential effects of
the transition away from LIBOR on the Fund or on </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">certain instruments in which the Fund invests can be difficult to </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">ascertain, and they may vary depending on factors that include, but are </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">not limited to: (i) existing fallback
or termination provisions in individual </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">contracts and (ii) whether, how, and when industry participants develop </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">and adopt new reference rates and fallbacks for both legacy and new </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">products and instruments. For example,
certain of the Fund&#8217;s </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investments may involve individual contracts that have no existing
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">fallback provision or language that contemplates the discontinuation of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">LIBOR, and those
investments could experience increased volatility or </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">illiquidity as a result of the transition process. In addition, interest rate </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">provisions included in such contracts, or in contracts or other </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">arrangements entered into by the Fund, may
need to be renegotiated. </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">On March 15, 2022, the Adjustable Interest Rate (LIBOR) Act was </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">signed
into law. This law provides a statutory fallback mechanism on a </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">nationwide basis to replace LIBOR with a benchmark rate that is </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">selected by the Board of Governors of the Federal Reserve System and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">based on the Secured Overnight Financing
Rate for certain contracts </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">that reference LIBOR and contain no, or insufficient, fallback provisions. </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">It is expected that implementing regulations in respect of the law will </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">follow. The transition of investments
from LIBOR to a replacement rate </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">as a result of amendment, application of existing fallbacks, statutory </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">requirements or otherwise may also result in a reduction in the value of </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">certain instruments held by the Fund,
a change in the cost of borrowing </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">or the dividend rate for any preferred shares that may be issued by the </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund, or a reduction in the effectiveness of related Fund transactions </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such as hedges. Any such effects of the
transition away from LIBOR, as </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">well as other unforeseen effects, could 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></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 extent the Fund becomes
ineligible for this exclusion from CFTC </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">regulation, the Fund may consider steps in order to continue to qualify </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">for exemption from CFTC regulation, or may determine to operate </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">subject to CFTC regulation.</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. 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> <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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_24"></A>
<div style="page-break-after:always;position:relative;"> <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 California Municipal 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: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;">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><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">qualifying income, and distribute to its shareholders at least 90% of its </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;investment company taxable
income&#8221; as that term is defined in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Code (which includes, among other things, dividends, taxable interest </font><font
style="color:#323232;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:#323232;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:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">To qualify to pay exempt-interest dividends, which are treated as items </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of interest excludable from gross
income for regular federal income tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purposes, at least 50% of the value of the total assets of the Fund must </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">consist of obligations the interest on which is exempt from regular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal income tax under section 103(a) of
the Code as of the close of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">each quarter of the Fund's taxable year. If the proportion of taxable
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">investments held by the Fund exceeds 50% of the Fund's total assets as </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the close of any
quarter of the Fund's taxable year, the Fund will not </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for that taxable year satisfy the general eligibility test that otherwise </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">permits it to pay exempt-interest 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;">The value of the Fund's investments and its net asset value may be </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">adversely affected by changes in tax rates and policies. Because interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income from municipal securities is
normally not subject to regular </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal income taxation, the attractiveness of municipal securities in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">relation to other investment alternatives is affected by changes in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">federal income tax rates or changes in the
tax-exempt status of interest </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income from municipal securities. Any proposed or actual changes 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;">such rates or exempt
status, therefore, can significantly affect the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">demand for and supply, liquidity and marketability of municipal </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities. This could in turn affect the Fund's net asset value and ability </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to acquire and dispose of
municipal securities at desirable yield and </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">price levels. Additionally, the Fund is not a suitable investment for </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">individual retirement accounts, for other tax-exempt or tax-deferred </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">accounts or for investors who are not
sensitive to the federal income tax </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">consequences of their 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;">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><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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">material adverse effect on the Fund. While the Fund seeks to minimize </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">such events through
controls and oversight, there may still be failures </font><font style="color:#323232;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> <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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_25"></A> <div style="page-break-after:always;position:relative;">
<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;">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><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></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></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;">Fund and its shareholders may suffer losses as a result of a cyber </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">security breach related to the Fund, its service providers, trading </font><font style="color:#000000;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 will </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seek to sell the securities which it
holds. This could involve procedural </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">costs or delays in addition to a loss on the securities if their value should </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">fall 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><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></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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_26"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">difficulty in obtaining
such financing, which may adversely affect the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">value of the structured products owned by the Fund. Structured </font><font
style="color:#000000;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 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.&nbsp;For example, the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">recent spread of an infectious respiratory illness caused by a novel strain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of coronavirus (known as COVID-19)
has caused volatility, severe </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">market dislocations and liquidity constraints in many markets, including </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">markets for the securities the Fund holds, and may adversely affect the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Fund&#8217;s 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 U.S. Federal Reserve made emergency interest-rate cuts, moving </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">short-term rates to near zero, issued forward guidance that rates would </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">remain low until the economy weathers
the COVID-19 crisis, and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">resumed quantitative easing. Additionally, Congress approved stimulus </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to
offset the severity and duration of the adverse economic effects of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">COVID-19 and related disruptions in economic and business activity. </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Dozens of central banks across Europe, Asia, and elsewhere have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">announced and/or adopted similar economic
relief packages. The end of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any such programs could cause market downturns, disruptions and
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">volatility, particularly if markets view the ending as premature.</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. Absent </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">an exemption from the SEC or other regulatory relief, the Fund is
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">generally precluded from effecting certain principal transactions with </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">affiliated brokers, and
its ability to purchase securities being </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">underwritten by an affiliated broker or a syndicate including an affiliated </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">broker, or to utilize affiliated brokers for agency transactions, is subject </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to restrictions. This could limit
the Fund&#8217;s ability to engage in securities </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">transactions and take advantage of 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 applied for exemptive relief from the SEC that, if granted, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would permit the Fund to, among other things, co-invest with certain </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other persons, including certain
affiliates of PIMCO and certain public or </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;">private funds managed by PIMCO and its affiliates, subject to certain </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">terms and conditions. However, there is
no assurance that such relief </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">will be granted.</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 includes provisions that could limit the ability of other </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">entities or persons to acquire control of the Fund or to convert the Fund </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to open-end status. See
&#8220;Anti-Takeover and Other Provisions in the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Declaration of Trust&nbsp;and Bylaws.&#8221; &nbsp;These provisions in the Declaration </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">could have the effect of depriving the Common Shareholders of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">opportunities to sell their Common Shares at a
premium over the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 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;">Investments by the Fund in AMT Bonds may expose the Fund to certain </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">risks in addition to those typically associated with municipal bonds. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Interest or principal on AMT Bonds paid
out of current or anticipated </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">revenues from a specific project or specific asset may be adversely
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">impacted by declines in revenue from the project or asset. Declines in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">general business activity
could also affect the economic viability of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">facilities that are the sole source of revenue to support AMT Bonds. In </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">this regard, AMT Bonds may entail greater risks than general obligation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">municipal bonds. For shareholders
subject to the federal alternative </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">minimum tax, a portion of the Fund&#8217;s distributions may not be exempt </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">from gross federal income, which may give rise to alternative minimum </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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;">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></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 California Municipal 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_67659446-f0d5-4437-b7a4-08a8df9042ca_27"></A> <div style="page-break-after:always;position:relative;">
<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 or other
issuers to meet their obligations will depend </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">primarily on the availability of tax and other revenues to those entities. </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The amounts of tax and other revenues available to issuers may be </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">affected from time to time by economic,
political and demographic </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">conditions that specifically impact such issuers. In addition, there are
</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">constitutional and statutory restrictions that limit the power of certain </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">issuers to raise
revenues or increase taxes. The availability of federal, </font><font style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:10pt;">obligations. The creditworthiness of obligations issued by local issuers </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">within a given state may be unrelated
to the creditworthiness of </font><font style="color:#000000;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:#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></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><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></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></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;">invest is generally less than that for corporate equities or bonds, and the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">investment performance of the
Fund&#8217;s investment in municipal bonds </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">may therefore be more dependent on the analytical abilities of PIMCO </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">than its investments in taxable bonds. The secondary market for </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">municipal bonds also tends to be less well
developed or liquid than </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">many other securities markets, which may adversely affect the Fund&#8217;s
</font><font style="color:#000000;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><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">leverage by redeeming or otherwise purchasing any Preferred Shares </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(subject to any restrictions
discussed under &#8220;Description of Capital </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Structure&#8212;Preferred Shares Redemption&#8221;), unwinding TOBs or by </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">reducing any holdings in other instruments that create leverage. As </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">explained above under &#8220;Principal
Risks of the Fund&#8212;Leverage Risk,&#8221; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the success of any such attempt to limit leverage risk depends on </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">PIMCO&#8217;s ability to accurately predict interest rate or other 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;">[ ] | </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_67659446-f0d5-4437-b7a4-08a8df9042ca_28"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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;">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;Fundamental Investment </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Restrictions&#8221; in the Statement of Additional Information for a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">description of these
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;">49&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO California Municipal 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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_1"></A> <div style="page-break-after:always;position:relative;">
<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 June 30, 2022, PIMCO had approximately </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">$1.82 trillion of assets under management. As of June 30, 2022, PIMCO had $1.43 trillion of third-party assets under 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:0.0%;">
<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 [ ], the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 0.705% 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><font
style="color:#323232;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></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;">[ ] | </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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_2"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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;">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;">51&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO California Municipal Income Fund</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
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<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. A </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically
valued using pricing information from the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exchange considered by PIMCO to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of
trading on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Investments for which market </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 general </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 the 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 Valution Designee&#8217;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:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">On December 3, 2020,
the SEC adopted Rule 2a-5 under the 1940 Act, which is intended to address valuation practices and the role of the board of </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">directors with respect to the fair value of the
investments of a registered investment company or business development company. Among other </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">things, Rule 2a-5 will permit the fund&#8217;s board to designate the
fund&#8217;s primary investment adviser to perform the fund&#8217;s fair value determinations, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which will be subject to board oversight and certain reporting and other
requirements intended to ensure that the board receives the information it </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">needs to oversee the investment adviser&#8217;s fair value determinations. The compliance date for
Rule 2a-5 was September 8, 2022. PIMCO continues to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">review Rule 2a-5 and its impact on PIMCO&#8217;s and the Fund&#8217;s valuation policies and related
practices.</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;">[ ] | </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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_4"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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><font
style="color:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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, 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></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 California Municipal 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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_5"></A> <div style="page-break-after:always;position:relative;">
<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;">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:#000000;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:#000000;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><font
style="color:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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 Fund&#8217;s Dividend Reinvestment 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 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 Fund&#8217;s Bylaws, as amended and restated through
the date hereof (the &#8220;Bylaws&#8221;). The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Declaration and Bylaws are each exhibits to the registration statement of which this 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 August 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:0.0%;">
<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;">18,947,543</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;">2,000</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;">1,575</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;">2,000</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;">1,547</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;">2,000</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;">1,703</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;">293</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 2001, under the trading or &#8220;ticker&#8221; symbol &#8220;PCQ.&#8221; As of the close of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">trading on the NYSE on [ ], 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></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;">[ ] | </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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_6"></A>
<div style="page-break-after:always;position:relative;"> <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 California Municipal 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;">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:#000000;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:#000000;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:#000000;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:#000000;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 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 three series (Series A, Series B and Series C) in August 2001, in the amount of 2,000 shares per series. The ARPS have </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a par value of $0.00001 and liquidation value
of $25,000 per share. The ARPS have various rights determined by action of the Board without the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 293 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 the Prospectus or this 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> <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 California Municipal 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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_7"></A> <div style="page-break-after:always;position:relative;">
<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;">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><font style="color:#323232;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:#323232;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:#323232;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></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;">[ ] | </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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_8"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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;">sum of the &#8220;Index
Rate&#8221;</font><font style="color:#000000;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">1</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> plus an &#8220;Applicable Spread&#8221;</font><font
style="color:#000000;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">2</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> for the Rate Period plus the &#8220;Failed Remarketing Spread,&#8221;</font><font
style="color:#000000;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">3</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> if applicable, and (ii) the sum of </font><font
style="color:#000000;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:#000000;font-family:Arial Narrow;font-size:6.5pt;position:relative;top:-4.25pt;">4</font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> for such Rate Period plus (b) 0.92% plus (c) the Failed Remarketing </font><font
style="color:#000000;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:#000000;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 style="line-height:0.0pt;text-align:left;"> </div>
<div style="margin-top:0.0%;">
<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;Distributions&#8221;). </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">The terms of the RVMTP Shares provide further that, in the event less than the entire amount of any particular
dividend distribution paid pursuant to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 income or </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">capital gain, including short-term capital gain taxable as ordinary income when distributed), the amount of such dividend would increase by an
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">amount (the &#8220;Preferred Shareholder Gross-Up&#8221;) such that the after-tax amount of such dividend, as increased by the Preferred Shareholder Gross-Up, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">would equal the total amount the holder of such RVMTP Shares would have received if the dividend at the stated rate had consisted entirely of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8220;exempt-interest dividends.&#8221; The Preferred Shareholder Gross-Up is calculated (i) without consideration being given to the time value of money, (ii) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">assuming that no holder of RVMTP Shares is subject to the federal alternative minimum tax, and (iii) assuming that the portion of any dividend </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">distribution (including the amount of the Preferred Shareholder Gross-Up) that is not an exempt interest dividend would be taxable (x), in the hands </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the initial purchaser of the RVMTP Shares (or certain of its affiliates), at the maximum marginal regular federal corporate income tax rate, and (y) in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the case of any other holder, at the greater of (a) the maximum marginal regular federal individual income tax rate (taking into account the 3.8% </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Medicare contribution tax on net investment income) applicable to ordinary income or net capital gain, as applicable, or (b) the maximum marginal </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">regular federal corporate income tax rate applicable to ordinary income or net capital gain, as applicable, in each case disregarding the effect of any </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">state or local taxes. Any Preferred Shareholder Gross-Up will reduce the amount that would otherwise be distributable to Common 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;"> </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 California Municipal 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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_9"></A> <div style="page-break-after:always;position:relative;">
<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> <div style="clear:both;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 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 Prospectus.</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> <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;">[ ] | </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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_10"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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><font style="color:#323232;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:#323232;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:#323232;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>
<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:10.0pt;text-align:left;width:3.84pt;"><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">6</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;">With respect to the Mandatory Tender Events described in clauses (i), (ii) and (iii)
above, the corresponding &#8220;Mandatory Tender Date&#8221; means, respectively: (i) the date that is </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">180 calendar days following the Early Redemption Date, (ii) the date on
which the related Special Terms Period becomes effective, and (iii) the last day of the related Special Terms </font><font style="color:#323232;font-family:Arial Narrow;font-size:8pt;">Period (subject, in each case, to the holders&#8217; election to
retain their RVMTP 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;">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:0.0%;">
<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> <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 California Municipal 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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_11"></A> <div style="page-break-after:always;position:relative;">
<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;">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><font style="color:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:0.0%;">
<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 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 nationally recognized statistical rating organizations (&#8220;NRSROs&#8221;). A rating agency&#8217;s </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">guidelines will apply to the ARPS Shares only so long as the rating agency is rating the 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;">[ ] | </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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_12"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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><font
style="color:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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:#323232;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> <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 California
Municipal 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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_13">
</A> <div style="page-break-after:always;position:relative;"> <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;">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><font
style="color:#323232;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:#323232;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:#323232;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:#323232;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;PCQ&#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 2001. 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:0.0%;">
<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:368.22pt;"> <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:49.43pt;" 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:49.83pt;" 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:70.51pt;" 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:368.22pt;"> <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:25.43pt;"> <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:24pt;"> <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:25.63pt;"> <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:24.2pt;"> <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:35.97pt;"> <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:34.54pt;"> <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:368.22pt;"> <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:1.75pt;vertical-align:Top;width:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:368.22pt;"> <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:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:368.22pt;"> <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:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:368.22pt;"> <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:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:368.22pt;"> <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:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:368.22pt;"> <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:3pt;padding-top:3pt;vertical-align:Top;width:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:368.22pt;"> <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, 2020</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:368.22pt;"> <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, 2020</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</font></div> </div> </td> </tr>
<tr style="height:11pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:368.22pt;"> <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, 2020</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</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:368.22pt;"> <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, 2020</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.43pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:24pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.63pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:24.2pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:35.97pt;"> <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;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:34.54pt;"> <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;">[ ]</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 [ ], 2022 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> <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;">[ ] | </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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_14"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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:14.0pt;margin-top:10pt;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: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:2pt;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 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;">Fund&#8217;s dividend reinvestment plan or upon exercise of any stock subscription rights), unless the transaction is authorized by both a majority of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Trustees and seventy-five percent (75%) of the Continuing Trustees (in which case no shareholder authorization would be required by the Declaration, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">but may be required in certain cases under the 1940 Act). The Declaration also requires the affirmative vote or consent of holders of at least </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seventy-five percent (75%) of each class of the Fund&#8217;s shares entitled to vote on the matter to authorize a conversion of the Fund from a closed-end </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to an open-end investment company, unless the conversion is authorized by both a majority of the Trustees and seventy-five percent (75%) of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Continuing Trustees (in which case shareholders would have only the minimum voting rights required by the 1940 Act with respect to the conversion). </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Also, separate from the limited term provision, the Declaration provides that the Fund may be terminated at any time by vote or consent of at least </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">seventy-five percent (75%) of the Fund&#8217;s shares or, alternatively, by vote or consent of both a majority of the Trustees and seventy-five percent (75%) </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of the Continuing Trustees. See &#8220;Anti-Takeover and Other Provisions in the Declaration of Trust and Bylaws&#8221; in the Statement of Additional </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Information for a more detailed summary 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 Bylaws described above could have the effect of depriving the
Common Shareholders of opportunities to sell their Common Shares at </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">a premium over the then-current market price of the Common Shares by discouraging a third party from
seeking to obtain control of the Fund in a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">tender offer or similar transaction. The Board has considered the foregoing anti-takeover provisions and concluded that they are
in the best interests </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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> <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 California Municipal Income Fund</font></div> </div> </div> </div> <div style="float:left;margin-bottom:5.0pt;width:100%;"> </div>
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<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;">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. The Trustees shall consider such demand within 90 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 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 (excepting rights of action permitted under Section 36(b) of the 1940 Act), nor shall
any single </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">shareholder, who is similarly situated to one or more other shareholders with respect to the alleged injury, have the right to bring such an action, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">unless such shareholder has obtained authorization from the Trustees to bring the action. The requirement of authorization shall not be excused under </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">any circumstances, including claims of alleged interest on the part of the Trustees. The Trustees shall consider such request within 90 days of its receipt </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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, as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 submit </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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> <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;">[ ] | </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>
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<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 California
Municipal 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: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; (a &#8220;RIC&#8221;) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">under 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 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 although the Fund intends to arrange its affairs so that a portion of such distributions will be exempt from personal income </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">taxes in California. 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. Further, the Fund will seek to produce income that is generally </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">exempt from California state personal income tax and will not provide any state tax benefit to individuals that are not subject to California state </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">personal 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 Dividend Reinvestment Plan will be treated for U.S. federal income tax </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">purposes as having received
an amount in distribution equal to either (i) if newly issued Common Shares are issued under the Dividend Reinvestment </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Plan, generally the fair market value of the newly
issued Common Shares issued to the shareholder or (ii) if reinvestment is made through </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">open-market purchases under the Dividend Reinvestment Plan, the amount of cash
allocated to the shareholder for the purchase of 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;">65&#8194;&#8194;Base Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO California
Municipal 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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_17">
</A> <div style="page-break-after:always;position:relative;"> <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;">on its behalf in the open market. For U.S. federal income tax purposes, all distributions are generally taxable in the manner described above, whether </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">a shareholder takes them in cash or they are reinvested pursuant to the Dividend Reinvestment Plan in additional shares of the Fund. See &#8220;Dividend </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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 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. Shares actually owned, as well as shares constructively owned under Section 318 of the Code, will generally be taken </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">into account for purposes of the foregoing rules. In addition, there is a risk that shareholders who do not tender any of their shares for repurchase, or </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">whose percentage interest in the Fund otherwise increases as a result of the tender offer, will be treated for U.S. federal income tax purposes as </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">having received a taxable dividend distribution as a result of their proportionate increase in the ownership of the Fund. The Fund&#8217;s use of cash to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">repurchase shares could adversely affect its ability to satisfy the distribution requirements for treatment as a RIC. The Fund could also recognize </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">income in connection with its disposition of portfolio securities to fund share repurchases. Any such income would be taken into account in </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">determining whether the Fund 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>
<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;">[ ] | </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_9d8df441-1e46-4a0e-8a8e-49360bebfc03_18"></A> <div style="page-break-after:always;position:relative;">
<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 California
Municipal 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: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 Fund&#8217;s Dividend Reinvestment
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 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;">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, 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. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">information incorporated by reference is considered to be part of this prospectus, and later information that the Fund files with the SEC will </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">automatically update and supersede this 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 documents listed below, and any reports and other documents subsequently filed with the SEC pursuant to Rule 30b2-1 under the 1940 Act and </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, prior to the termination of the offering will be incorporated by reference into this Prospectus </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">and deemed to be part of this Prospectus from the date of the filing of such reports and documents:</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 [ ], 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's </font> <a href="https://www.sec.gov/Archives/edgar/data/1140411/000119312522236700/d299692dncsrs.htm">
<font style="font-family:Arial Narrow;font-size:10pt;text-decoration:underline;">Semi-Annual Report on Form N-CSRS, filed on September 2, 2022</font></A><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">;</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 [ ]; 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/1140411/000092701601501519/d8a12b.txt">
<font style="font-family:Arial Narrow;font-size:10pt;text-decoration:underline;">Description of Shares on Form 8-A, filed on June 21, 2001</font></A><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">.</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;">67&#8194;&#8194;Base
 Prospectus</font><font style="color:#00687D;font-family:Arial Narrow;font-size:8pt;line-height:14.21pt;"> | PIMCO California Municipal 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_0a7f7aab-5eca-4638-b38f-80580415b04a_1"></A> <div style="page-break-after:always;position:relative;">
<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 one year or
more and reflect both on the likelihood </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">of 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;">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) </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">programs and definitive ratings to the
individual debt securities issued </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 (e.g. 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 moodys.com directly if they have questions regarding </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">ratings for specific notes issued under a
medium-term note program. </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Unrated notes issued under an MTN program may be assigned an NR </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(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 for 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;">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>
<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;">[ ] | </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_0a7f7aab-5eca-4638-b38f-80580415b04a_2">
</A> <div style="page-break-after:always;position:relative;"> <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
California Municipal Income Fund</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-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 (e.g., 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;">Note: Moody&#8217;s appends numerical modifiers 1, 2, and 3 to each generic </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating classification from Aa
through Caa. The modifier 1 indicates that </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the 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></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.</font></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 are four categories of short-term national scale ratings, generically </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 (e.g., 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 senior unsecured
debt obligations relative to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other domestic 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 senior
unsecured debt obligations relative to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other domestic 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 senior unsecured debt
obligations relative to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other domestic 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 senior unsecured
debt obligations relative to </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">other domestic 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;">Note: The short-term rating symbols P-1.za, P-2.za, P-3.za and NP.za are </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">used in South Africa.</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:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">MIG</font></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></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 California Municipal 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_0a7f7aab-5eca-4638-b38f-80580415b04a_3"></A> <div style="page-break-after:always;position:relative;">
<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:#000000;font-family:Arial Narrow;font-size:10pt;">the purchase-price-upon-demand feature (&#8220;demand feature&#8221;) of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">VRDO. The short-term demand
obligation rating uses a variation of the </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">MIG scale called the Variable Municipal Investment Grade (VMIG) scale.</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;">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 that ensure the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">timely payment of purchase price upon
demand.</font></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 that ensure the timely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment of purchase price upon demand.</font></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 that ensure </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">the timely payment of purchase price upon demand.</font></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 necessary to ensure the timely </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">payment of purchase price upon
demand.</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;">Standard &amp; Poor&#8217;s Ratings Services</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;">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;">The likelihood of payment&#8212;the capacity and willingness of the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligor to meet its financial commitments on an obligation in </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">accordance 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;">The nature and provisions of the financial obligation, and the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">promise 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;">The 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;">An issue rating is 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: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>
<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;">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 style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">BB, B, CCC, CC, and C: Obligations rated &#8216;BB&#8217;, &#8216;B&#8217;,
&#8216;CCC&#8217;, &#8216;CC&#8217;, and &#8216;C&#8217; </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">are regarded as having significant speculative characteristics. &#8216;BB&#8217; </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">indicates the least degree of speculation and &#8216;C&#8217; the highest. While such </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations will likely
have some quality and protective characteristics, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">these may be outweighed by large uncertainties or major exposure to </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 five </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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 30
calendar days. The &#8216;D&#8217; rating also </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">will be used upon the filing of a bankruptcy petition or the taking of </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">similar action and where default on an obligation is a virtual certainty, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">for example due to automatic stay
provisions. A rating on an obligation </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is lowered to &#8216;D&#8217; if it is subject to a distressed debt 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;">*Ratings from &#8216;AA&#8217; to &#8216;CCC&#8217; may be modified by the addition of a plus </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">(+) or minus (-) sign to show relative standing within the rating </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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;">[ ] | </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_0a7f7aab-5eca-4638-b38f-80580415b04a_4">
</A> <div style="page-break-after:always;position:relative;"> <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
California Municipal Income Fund</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+&#8217; 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+&#8217;).</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:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Federal deposit insurance limit: &#8216;L&#8217; qualifier</font></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 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:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Principal &#8216;p&#8217; qualifier</font></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 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:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Preliminary ratings: &#8216;prelim&#8217; qualifier</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Preliminary ratings, with the &#8216;prelim&#8217; suffix, may be assigned to obligors </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">or obligations, including financial programs, in the circumstances </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">described below. Assignment of a final
rating is conditional on the </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">receipt by S&amp;P of appropriate documentation. S&amp;P reserves the right not </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">to issue a final rating. Moreover, if a final rating is issued, it may differ </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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;"> </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 California
Municipal 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_0a7f7aab-5eca-4638-b38f-80580415b04a_5">
</A> <div style="page-break-after:always;position:relative;"> <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> <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 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;">Termination structure: &#8216;t&#8217; qualifier</font></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 indicates termination structures that are designed to honor </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Counterparty
instrument rating: &#8216;cir&#8217; qualifier</font></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 indicates a counterparty instrument rating
(CIR), which is a </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Contingent upon final documentation: &#8216;*&#8217; in active qualifier</font></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:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Termination of
obligation to tender: &#8216;c&#8217; inactive qualifier</font></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 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:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">U.S. direct government securities: &#8216;G&#8217; inactive qualifier</font></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 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:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Public information ratings: &#8216;pi&#8217;
inactive qualifier</font></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 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:6pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Provisional ratings: &#8216;pr&#8217; inactive qualifier</font></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 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> <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;">Quantitative analysis of public information: &#8216;q&#8217; inactive
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">qualifier</font></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 &#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 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;">Extraordinary risks: &#8216;r&#8217; inactive qualifier</font></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 &#8216;r&#8217; modifier was assigned to securities containing extraordinary risks, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">particularly market risks, that are not covered in the credit rating. The </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">absence of an &#8216;r&#8217;
modifier should not be taken as an indication that an </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligation would not exhibit extraordinary noncredit-related risks. S&amp;P </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">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:6pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Fitch Ratings</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;">Long-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;">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> <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;">[ ] | </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_0a7f7aab-5eca-4638-b38f-80580415b04a_6">
</A> <div style="page-break-after:always;position:relative;"> <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
California Municipal Income Fund</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;">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 style="line-height:12.0pt;margin-top:4pt;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. 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;">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. A default or default-like process has begun, or the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">issuer is in standstill, or for a closed funding vehicle, payment capacity is </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">irrevocably impaired. Conditions
that are indicative of a &#8216;C&#8217; category </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">rating for an issuer 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:</font></div>
<div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8226; an uncured payment default or distressed debt exchange on a bond, </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">loan or other material financial obligation, but</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8226; has not entered into bankruptcy filings, administration, receivership, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">liquidation or other formal
winding-up,</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">&#8226; has 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;">&#8226; 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;">&#8226; 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;">&#8226; 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.</font></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left;"><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">Default ratings are not
assigned prospectively to entities or their </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">obligations; within this context, non-payment on an instrument that </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">contains a deferral feature or grace period will generally not be </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;">considered a default until after the expiration of the deferral or grace </font><font
style="color:#000000;font-family:Arial Narrow;font-size:10pt;">period, unless a default is otherwise driven by bankruptcy or other </font><font style="color:#000000;font-family:Arial Narrow;font-size:10pt;">similar circumstance, or by a distressed
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;">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;">&#8220;Imminent&#8221; default, categorized under &#8216;C&#8217;, typically refers to the </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">occasion where a payment default has been intimated by the issuer and </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">is all but inevitable. This may, for
example, be where an issuer has </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">missed a scheduled payment but (as is typical) has a grace period during </font><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">which it may cure the payment default. Another alternative would be </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">where an issuer has formally announced a
distressed debt exchange, </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">but the date of the exchange still lies several days or weeks in the
</font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">immediate 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
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 (&#8216;AA+&#8217;; &#8216;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 </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">judgement, but actual recoveries for a given
security may deviate </font><font style="color:#323232;font-family:Arial Narrow;font-size:10pt;">materially from 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: Outstanding recovery prospects given default. &#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: Superior recovery prospects given default. &#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: Good recovery prospects given default. &#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> <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 California Municipal 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_0a7f7aab-5eca-4638-b38f-80580415b04a_7"></A> <div style="page-break-after:always;position:relative;">
<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:4pt;text-align:left;"><font
style="color:#323232;font-family:Arial Narrow;font-size:10pt;">RR4: Average recovery prospects given default. &#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: Below average recovery prospects given default. &#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: Poor recovery prospects given default. &#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 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 Ratings Assigned to Issuers and
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;">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. 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: Highest short-term credit quality. 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: Good short-term credit quality. 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: Fair short-term credit quality. 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: Speculative short-term credit quality. 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: High short-term default risk. 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: Restricted default. 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: Default. 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;">[ ] | </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_0a7f7aab-5eca-4638-b38f-80580415b04a_8">
</A> <div style="page-break-after:always;position:relative;"> <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
California Municipal Income Fund</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="g399701logo.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 California Municipal Income Fund</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%;">Up to $[ ]</font></div> <div style="line-height:12.0pt;margin-top:4pt;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%;">[ ]</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 California
Municipal 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_cceb867b-4187-4a01-8ffb-9d554fe9c188_1">
</A> <div style="page-break-after:always;position:relative;"> <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="g399701img61e396ff1.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="g399701signup.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;">CEF0025_[ ]</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_cceb867b-4187-4a01-8ffb-9d554fe9c188_2"></A> <div style="page-break-after:always;position:relative;">
<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="g399701img61e396ff1.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="g399701signup.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;">CEF0025_[ ]</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>


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  <div> <div> <a name="xx_5b0a744d-3c62-4b7d-b387-d7768b1d573a_1"></A> <div style="page-break-after:always;position:relative;">
<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 September 30, 2022</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 CALIFORNIA MUNICIPAL INCOME FUND</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%;">[ ]</font></div> <div style="line-height: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 California Municipal Income Fund (the &#8220;Fund&#8221;) is a diversified, closed-end management investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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 [ ] (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_300a2fa7-2397-4b29-b25f-eafae303a6c2_sai-toc-lvl1_1"></A>
<div style="page-break-after:always;position:relative;"> <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:0.0%;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_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_5fa7400f-3e10-41ec-95f1-c5836835932c_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_5fa7400f-3e10-41ec-95f1-c5836835932c_63">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;">63</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_5fa7400f-3e10-41ec-95f1-c5836835932c_65">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;">65</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_5fa7400f-3e10-41ec-95f1-c5836835932c_79">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;">79</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_5fa7400f-3e10-41ec-95f1-c5836835932c_89">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;">89</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_5fa7400f-3e10-41ec-95f1-c5836835932c_92">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;">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="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_5fa7400f-3e10-41ec-95f1-c5836835932c_92">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;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_93">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;">93</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_5fa7400f-3e10-41ec-95f1-c5836835932c_95">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;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_97">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;">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="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_5fa7400f-3e10-41ec-95f1-c5836835932c_111">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;">111</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_5fa7400f-3e10-41ec-95f1-c5836835932c_112">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;">112</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_5fa7400f-3e10-41ec-95f1-c5836835932c_112">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;">112</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_5fa7400f-3e10-41ec-95f1-c5836835932c_112">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;">112</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_5fa7400f-3e10-41ec-95f1-c5836835932c_112">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;">112</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_5fa7400f-3e10-41ec-95f1-c5836835932c_112">FINANCIAL STATEMENTS</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;">112</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_5fa7400f-3e10-41ec-95f1-c5836835932c_113">INCORPORATION BY REFERENCE</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:25.5pt;">
<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_ee641c3a-e239-446d-be4a-ea8267b4ce56_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_ee641c3a-e239-446d-be4a-ea8267b4ce56_1">Pimco
 Sponsored Closed-End Funds</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;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_1"></A> <div style="page-break-after:always;position:relative;">
<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 29, 2001, 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 May 10, 2001. Prior to commencing operations on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">June 29, 2001, 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_5fa7400f-3e10-41ec-95f1-c5836835932c_2"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_3"></A>
<div style="page-break-after:always;position:relative;"> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_4"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_5"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_6"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_7"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_8"></A>
<div style="page-break-after:always;position:relative;"> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_9"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_10"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_11"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_12"></A> <div style="page-break-after:always;position:relative;">
<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 </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Receivables</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;font-variant:small-caps;position:relative;top:-4.25pt;">sm</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> (&#8220;CARS</font><font
style="color:#000000;font-family:Times New Roman;font-size:6.5pt;font-variant:small-caps;position:relative;top:-4.25pt;">sm</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#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</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;font-variant:small-caps;position:relative;top:-4.25pt;">sm</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;"> 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</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;font-variant:small-caps;position:relative;top:-4.25pt;">sm</font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;"> are passed through monthly to certificate holders, and are guaranteed up to certain amounts and for </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">a
certain time period by a letter of credit issued by a financial institution unaffiliated with the trustee or originator of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the trust. An investor&#8217;s return on
CARS</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;font-variant:small-caps;position:relative;top:-4.25pt;">sm</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> may be affected by early
prepayment of principal on the underlying vehicle </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">sales contracts. If the letter of credit is exhausted, the trust may be prevented from realizing the full amount due on
a </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">sales contract because of state law requirements and restrictions relating to foreclosure sales of vehicles and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">obtaining of deficiency judgments following such sales or because of depreciation, damage or loss of a vehicle, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">application of federal and state bankruptcy and insolvency laws, or other factors. As a result, certificate holders may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">experience 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_5fa7400f-3e10-41ec-95f1-c5836835932c_13"></A>
<div style="page-break-after:always;position:relative;"> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_14"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_15"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_16"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_17"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_18"></A> <div style="page-break-after:always;position:relative;">
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_19"></A> <div style="page-break-after:always;position:relative;">
<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%;">Municipal securities may include municipal bonds, municipal notes and municipal leases.
Municipal bonds are </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">debt obligations of a governmental entity that obligate the municipality to pay the holder a specified sum of money at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">specified intervals and to repay the principal amount of the loan at maturity.</font></div> <div style="line-height: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 municipal lease obligations. A lease is not a full faith and credit obligation of the issuer </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and is usually backed only by the borrowing government&#8217;s unsecured pledge to make annual appropriations for lease </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments. There have been challenges to the legality of lease financing in numerous states, and, from time to time, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">certain municipalities have considered not appropriating money for lease payments. In deciding whether to purchase a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">lease obligation for the Fund, PIMCO will generally assess the financial condition of the borrower or obligor, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">merits of the project, other credit characteristics of the obligor, the level of public support for the project and the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">legislative history of lease financing in the state. These securities may be less readily marketable than other municipal </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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_20"></A> <div style="page-break-after:always;position:relative;">
<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 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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 may invest in pre-refunded municipal bonds. Pre-refunded municipal bonds are bonds that have been </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">refunded to a call date prior to the final maturity of principal, or, in the case of pre-refunded municipal bonds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">commonly referred to as &#8220;escrowed-to-maturity bonds,&#8221; to the final maturity of principal, and remain outstanding in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the municipal market. The payment of principal and interest of the pre-refunded municipal bonds held by the Fund is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">funded from securities in a designated escrow account that holds U.S. Treasury securities or other obligations of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. government (including its agencies and instrumentalities (&#8220;Agency Securities&#8221;)). Interest payments on </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pre-refunded municipal bonds issued on or prior to December 31, 2017 are exempt from federal income tax; interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">payments on pre-refunded municipal bonds issued after December 31, 2017 are not exempt from federal income 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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_21"></A> <div style="page-break-after:always;position:relative;">
<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
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. The escrow account securities pledged to pay the
principal and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest of the pre-refunded municipal bond do not guarantee the price movement of the bond before maturity. Issuers </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of municipal bonds refund in advance of maturity the outstanding higher cost debt and issue new, lower cost debt, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_22"></A> <div style="page-break-after:always;position:relative;">
<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%;">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;) any corresponding tax credits. Such tax credits can generally be used to offset federal </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">income taxes and the alternative minimum tax, but such credits are generally not refundable. Build America Bonds or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">similar taxable municipal bonds involve similar risks as tax-exempt municipal bonds, including credit and market risk. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">They are intended to assist state and local governments in financing capital projects at lower borrowing costs and are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">likely to attract a broader group of investors than tax-exempt municipal bonds. Although Build America Bonds were </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">only 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 style="line-height: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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_23"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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 TOB programs. The Volcker Rule precludes banking </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entities from (i) sponsoring or acquiring interests in the trusts used to hold a municipal bond in the creation of TOB </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trusts; and (ii) continuing to service or maintain relationships with existing programs involving TOB Trusts to the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">same extent and in the same capacity as existing programs. The Risk Retention Rules require the sponsor to a TOB </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trust (e.g., the Fund) to retain at least five percent of the credit risk of the underlying assets supporting the TOB </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trust&#8217;s municipal bonds. The Risk Retention Rules may adversely affect the Fund&#8217;s ability to engage in TOB Trust </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions or increase the costs of such transactions in certain 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:12pt;text-align:justify;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">In response to these rules, industry participants explored various
structuring alternatives for TOB Trusts and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">agreed on a new TOB structure in which the Fund hires service providers to assist with establishing, structuring and
</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_5fa7400f-3e10-41ec-95f1-c5836835932c_24"></A> <div style="page-break-after:always;position:relative;">
<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%;">sponsoring a TOB
Trust. Service providers to a TOB Trust, such as administrators, liquidity providers, trustees and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">remarketing agents act at the direction of, and as agent of, the Fund
as the TOB Residual 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%;">Under the new TOB Trust structure, the Liquidity Provider or remarketing agent will no longer purchase the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tendered TOB Floaters, even in the event of failed remarketing. This may increase the likelihood that a TOB Trust will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. The TOB Trust may draw upon a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">loan from the Liquidity Provider to purchase the tendered TOB Floaters. Any loans made by the Liquidity Provider </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">will be secured by the purchased TOB Floaters held by the TOB Trust and will be subject to an interest rate agreed </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with the Liquidity Provider.</font></div> <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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_25"></A> <div style="page-break-after:always;position:relative;">
<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 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 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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_26"></A>
<div style="page-break-after:always;position:relative;"> <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 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_27"></A> <div style="page-break-after:always;position:relative;">
<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%;">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:left;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:left;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:left;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><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">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>
<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;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_28"></A> <div style="page-break-after:always;position:relative;">
<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%;">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 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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_29"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_30"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_31"></A> <div style="page-break-after:always;position:relative;">
<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 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_32"></A> <div style="page-break-after:always;position:relative;">
<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%;">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;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_33"></A>
<div style="page-break-after:always;position:relative;"> <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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_34"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_35"></A> <div style="page-break-after:always;position:relative;">
<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%;">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 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 a company at a time when it might not otherwise decide to do so (including a time when </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the company&#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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_36"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_37"></A> <div style="page-break-after:always;position:relative;">
<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 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 style="line-height: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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_38"></A> <div style="page-break-after:always;position:relative;">
<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 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_39"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_40"></A>
<div style="page-break-after:always;position:relative;"> <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;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><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></div>
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_41"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_42"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_43"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_44"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_45"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_46"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_47"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_48"></A> <div style="page-break-after:always;position:relative;">
<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></div> <div style="line-height: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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_49"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_50"></A>
<div style="page-break-after:always;position:relative;"> <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></div> <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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_51"></A> <div style="page-break-after:always;position:relative;">
<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></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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_52"></A>
<div style="page-break-after:always;position:relative;"> <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 will segregate liquid </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">assets against or otherwise cover its future obligations under such transactions to the extent that, immediately after </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">entering into such a transaction, the Fund&#8217;s future commitments that it has not segregated liquid assets against or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">otherwise covered, together with any outstanding Preferred Shares, would exceed 50% of the Fund&#8217;s total assets.The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund may also enter into transactions other than those noted above that may give rise to a form of leverage including, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">among others, selling credit default swaps, futures and forward contracts (including foreign currency exchange </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contracts), total return swaps and other derivative transactions, loans of portfolio securities, short sales, when-issued, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delayed delivery and forward commitment transactions. The Fund may also determine to issue other types of Preferred </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: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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_53"></A> <div style="page-break-after:always;position:relative;">
<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%;">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 style="line-height: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%;">Existing SEC guidance generally prohibits the Fund from engaging in most forms of leverage representing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">indebtedness other than preferred shares (including the use of TOBs, to the extent that these instruments are not </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">covered as described below) unless immediately after the issuance of the leverage the Fund has satisfied the asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">coverage test with respect to senior securities representing indebtedness prescribed by the 1940 Act; that is, the value </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund&#8217;s total assets less all liabilities and indebtedness not represented by senior securities (for these purposes, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;total net assets&#8221;) is at least 300% of the senior securities representing indebtedness (effectively limiting the use of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">leverage through senior securities representing indebtedness to
33</font><font style="color:#000000;font-family:Times New Roman;font-size:6pt;position:relative;top:-2.66pt;">&#8202;1</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8725;</font><font
style="color:#000000;font-family:Times New Roman;font-size:6pt;">3</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">% of the Fund&#8217;s total net assets, including assets </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">attributable to such leverage). In addition, the Fund is not permitted to declare any cash dividend or other distribution </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">on its Common Shares unless, at the time of such declaration, this asset coverage test is satisfied after giving effect to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the dividend or distribution. See &#8220;Principal Risks of the Fund&#8212;Leverage Risk&#8221; in the Prospectus. To the extent that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund engages in borrowings, it may prepay a portion of the principal amount of the borrowing to the extent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">necessary in order to maintain the required asset coverage. Failure to maintain certain asset coverage requirements </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">could result in an event of default.</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%;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_54"></A> <div style="page-break-after:always;position:relative;">
<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%;">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. The Fund may (but is not required to) segregate or &#8220;earmark&#8221; liquid assets </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">equal (on a daily mark-to-market basis) to its obligations under reverse repurchase 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%;">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 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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_55"></A> <div style="page-break-after:always;position:relative;">
<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 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></div> <div style="line-height: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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_56"></A>
<div style="page-break-after:always;position:relative;"> <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 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 style="line-height: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><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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_57"></A> <div style="page-break-after:always;position:relative;">
<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 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 objectives and strategy and permissible under the 1940 Act, the Fund may invest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in securities of open- or closed-end investment companies (including those advised by PIMCO), including, without </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">limitation, domestic and foreign exchange-traded funds (&#8220;ETFs&#8221;). The Fund treats its investments in other investment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">companies that invest primarily in types of securities in which the Fund may invest directly as investments in such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_58"></A>
<div style="page-break-after:always;position:relative;"> <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;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_59"></A> <div style="page-break-after:always;position:relative;">
<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 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, 2021, 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, 2020, the Fund&#8217;s portfolio turnover rate was [ ]%. For the fiscal year ended </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">December 31, 2019, the Fund&#8217;s portfolio turnover rate was [ ]%.</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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_60"></A>
<div style="page-break-after:always;position:relative;"> <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;">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. See, for example, &#8220;The New SEC Derivatives Rule and Potential </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Implications for the Fund&#8221; above. Government regulation may change frequently and may have significant adverse </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">consequences. Moreover, government regulation may have unpredictable and unintended effects. Many of the changes </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">required by the Dodd-Frank Act could materially impact the profitability of the Fund and the value of assets they hold, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expose the Fund to additional costs, require changes to investment practices, and adversely affect the Fund&#8217;s ability to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">pay dividends. For example, the Volcker Rule&#8217;s restrictions on proprietary trading have negatively impacted </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fixed-income market making capacity, which resulted in reduced liquidity in certain fixed-income markets. Other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">regulations, such as the Risk Retention Rules, have increased costs for certain securitization transactions. Additional </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">legislative or regulatory actions to address perceived liquidity or other issues in fixed-income markets generally, or in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">particular markets such as the municipal securities market, may alter or impair the Fund&#8217;s ability to pursue its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment objective or utilize certain investment strategies and techniques. While there continues to be uncertainty </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">about the full impact of these and other regulatory changes, it is the case that the Fund will be subject to a more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">complex regulatory framework, and may incur additional costs to comply with new requirements as well as to monitor </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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, and functions as a reference rate or benchmark for many investments, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">securities and transactions. On July 27, 2017, the Chief Executive of the United Kingdom&#8217;s Financial Conduct </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Authority (&#8220;FCA&#8221;) announced that after 2021 it would cease its active encouragement of banks to provide the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">quotations needed to sustain LIBOR due to the absence of an active market for interbank unsecured lending and other </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">reasons. The ICE Benchmark Administration (&#8220;IBA&#8221;), the administrator of LIBOR, ceased publication of many of its </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">LIBOR settings as of December 31, 2021, and has announced that it will cease publication of certain commonly used </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">tenors of U.S. dollar LIBOR after June 30, 2023. FCA publicly announced that all U.S. Dollar LIBOR settings will </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">either cease to be provided by any administrator or will no longer be representative i) immediately after December 31, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">2021 for one-week and two-month U.S. Dollar LIBOR settings and (ii) immediately after June 30, 2023 for the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">remaining U.S. Dollar LIBOR settings. As of January 1, 2022, as a result of supervisory guidance from
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">U.S. regulators, some U.S. regulated entities have ceased entering into new LIBOR contracts with limited exceptions. </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_5fa7400f-3e10-41ec-95f1-c5836835932c_61"></A> <div style="page-break-after:always;position:relative;">
<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%;">While publication of
the one-, three- and six-month Sterling and Japanese yen LIBOR settings will continue at least </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">through calendar year 2022 on the basis of a changed methodology (known as
&#8220;synthetic LIBOR&#8221;), these rates have </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">been designated by the FCA as unrepresentative of the underlying market they seek to measure and are solely available
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">for use in legacy transactions. Certain bank-sponsored committees in other jurisdictions, including Europe, the United </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Kingdom, Japan and Switzerland, have selected alternative reference rates denominated in other currencies. There </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate (e.g., the Secured </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Overnight Financing Rate (&#8220;SOFR&#8221;), which is intended to replace U.S. dollar LIBOR and measures the cost of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities). Any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">potential effects of the transition away from LIBOR on the Fund or on certain instruments in which the Fund invests </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">can be difficult to ascertain, and they may vary depending on factors that include, but are not limited to: (i) existing </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">fallback or termination provisions in individual contracts and (ii) whether, how, and when industry participants develop </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and adopt new reference rates and fallbacks for both legacy and new products and instruments. For example, certain of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s investments may involve individual contracts that have no existing fallback provision or language that </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">contemplates the discontinuation of LIBOR, and those investments could experience increased volatility or illiquidity </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">as a result of the transition process. In addition, interest rate provisions included in such contracts, or in contracts or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">other arrangements entered into by the Fund, may need to be renegotiated. On March 15, 2022, the Adjustable Interest </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Rate (LIBOR) Act was signed into law. This law provides a statutory fallback mechanism on a nationwide basis to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">replace LIBOR with a benchmark rate that is selected by the Board of Governors of the Federal Reserve System and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">based on SOFR for certain contracts that reference LIBOR and contain no, or insufficient, fallback provisions. It is </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">expected that implementing regulations in respect of the law will follow. The transition of investments from LIBOR to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a replacement rate as a result of amendment, application of existing fallbacks, statutory requirements or otherwise may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">also result in a reduction in the value of certain instruments held by the Fund, a change in the cost of borrowing or the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">dividend rate for any Preferred Shares that may be issued by the Fund, or a reduction in the effectiveness of related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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 rescinded and withdrew the guidance of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the SEC and its staff regarding asset segregation and cover transactions reflected in the Fund&#8217;s asset segregation and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">cover practices discussed herein. The final rule removes asset segregation requirements related to derivatives </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">transactions. The final rule requires the Fund to trade derivatives and other transactions that create future payment or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to value-at-risk </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(&#8220;VaR&#8221;) 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%;">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 style="line-height: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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_62"></A> <div style="page-break-after:always;position:relative;">
<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%;">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;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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 applied for exemptive relief from the SEC that, if granted, would permit the Fund
to, among other </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">things, co-invest with certain other persons, including certain affiliates of PIMCO and certain public or private funds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">managed by PIMCO and its affiliates, subject to certain terms and conditions. However, there is no assurance that such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">relief will be granted.</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_5fa7400f-3e10-41ec-95f1-c5836835932c_63"></A> <div style="page-break-after:always;position:relative;">
<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;">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;">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;">(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 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;">(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;">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;">(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;">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;">(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;">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 style="line-height: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, with respect to 75% of the Fund&#8217;s total assets, the Fund may not purchase the securities of any issuer, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">except securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities or securities </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issued by other investment companies, if, as a result, (i) more than 5% of the Fund&#8217;s total assets would be invested in </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the securities of that issuer, or (ii) the Fund would hold more than 10% of the outstanding voting securities of that </font><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 separate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">issuer of municipal bonds.</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 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>
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_64"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_65"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#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.</font></div> <div style="line-height:12.0pt;margin-top:12pt;text-align:justify;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:4.17%;">Board Leadership Structure &#8212; The Board is currently composed of nine Trustees, six of whom are not &#8220;interested </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">persons&#8221; (within the meaning of Section 2(a)(19) of the 1940 Act) of the Fund or of the Investment Manager (the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Independent Trustees&#8221;), which represents 75% of the Trustees that are Independent Trustees. An Independent Trustee </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">serves as Chair of the Board and is selected by a vote of the majority of the Independent Trustees. The Chair of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Board presides at meetings of the Board and acts as a liaison with service providers, officers, attorneys and 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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_66"></A> <div style="page-break-after:always;position:relative;">
<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%;">Trustees generally
between meetings, and performs such other functions as may be requested by the Board from time </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">to time.&nbsp;At the Board meetings held on June 15-16, 2022, the Board
appointed Ms. Kathleen McCartney as a Class II </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Trustee, effective July 1, 2022. The Board concluded that Ms. McCartney is qualified to serve as an Independent </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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;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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_67"></A>
<div style="page-break-after:always;position:relative;"> <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 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:0.0%;">
<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:24.85pt;">
<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;">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-bottom:2.5pt;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-bottom:2.5pt;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-bottom:2.5pt;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-bottom:2.5pt;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-bottom:2.5pt;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>
<tr style="height:198pt;">
<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;">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:#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;">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:#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;">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:#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;">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); and 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). 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:#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;">29</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;">(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:99.5pt;">
<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;">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: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 2019</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;">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); Director, Girl </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;">Scouts of Greater New York, 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;">(since 2016); and Trustee, Natural </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;">Resources Defense Council, 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;">(since 2013). Formerly, 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;">Simpson Thacher &amp; Bartlett LLP </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;">(1989-2018).</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;">29</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;">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> </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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_68"></A> <div style="page-break-after:always;position:relative;">
<div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0%;">
<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:198.85pt;">
<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;">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-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 2020</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;">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; Director and Treasurer, Center </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;">for Reproductive Rights (since 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;">Formerly, Director (2013- 2020) 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;">Chair (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); 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;">and Chief Executive Officer, GMO </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;">Series Trust (platform based mutual </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;">funds) (2011-2013).</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;">29</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;">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>
<tr style="height:246pt;">
<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;">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</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 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:20.0pt;">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:20.0pt;">2022</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:20.0pt;">President, Smith College (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:20.0pt;">2013); Director, Five Colleges, </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:20.0pt;">Inc., consortium of liberal arts </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:20.0pt;">colleges and universities (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:20.0pt;">2013); President, Five Colleges, </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:20.0pt;">Inc., (since 2020); 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:20.0pt;">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:20.0pt;">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:20.0pt;">(2015-2019); 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:20.0pt;">Consortium on Financing Higher </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:20.0pt;">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:20.0pt;">(2015-2019); Director, edX 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:20.0pt;">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:20.0pt;">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:20.0pt;">Bellwether Education 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:20.0pt;">Board, national nonprofit </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:20.0pt;">organization (2010-2013); Dean, </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:20.0pt;">Harvard Graduate 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:20.0pt;">Education (2006-2013); 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:20.0pt;">Tufts University (2007-2013).</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;">29</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;">None.</font></div> </div> </td> </tr>
<tr style="height:123.5pt;">
<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:20pt;">William </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:20pt;">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:20pt;">Ogden, </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:20pt;">IV</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:20pt;">1945</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:20pt;">&#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:20pt;">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:20.0pt;">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:20.0pt;">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:20.0pt;">2010</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:20.0pt;">Retired. Formerly, 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:20.0pt;">Management Industry Consultant; </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:20.0pt;">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:20.0pt;">Investment Banking Division 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:20.0pt;">Citigroup Global Markets Inc.</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;">29</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;">Allianz
</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;">(2006-2021); </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 </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;">AllianzGI </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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_69"></A> <div style="page-break-after:always;position:relative;">
<div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0%;">
<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;">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: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 2010</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;">Formerly Adjunct Professor, New York </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;">University Stern School of Business </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 2011-2020); Lecturer, Stanford </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;">University Graduate 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 (2013-2020); and 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;">Victory Capital Holdings, Inc., an </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;">asset management firm (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;">Formerly, Advisory Director (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;">Vice Chairman), Roundtable </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;">Investment Partners (2009-2018); </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;">Member of Board of Overseers, NYU </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;">Langone Medical Center (2015-2016); </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, American Museum of Natural </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;">History (2005-2015); Trustee, NYU </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;">Langone Medical Center (2007-2015); </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;">and Vice Chairman (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;">Chairman and President), 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;">(formerly, Private Bank of Bank 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, the predecessor entity 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. Trust) (2001-2008).</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;">29</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;">(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;">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 </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;">AllianzGI
</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>
<tr style="height:303.5pt;">
<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;">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><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 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:#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 2021</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;">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;">Chief Financial Officer, Athena </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); Director, Link Logistics </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;">REIT, a real estate company (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); Director and 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;">Investment &amp; Risk Committee, </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;">Resolution Life Group Holdings, 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;">global life insurance group (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); and 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. 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, Resolution 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;">(2015-2019). Formerly, 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;">Member of the Audit Committee 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;">the Wealth Solutions 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;">Committee, M Financial Group, a life </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 (2015-2021); </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, SBLI USA, a life insurance </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 (2015-2018).</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;">29</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;">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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_70"></A>
<div style="page-break-after:always;position:relative;"> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <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;">(6)</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:0.0%;">
<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:168.85pt;">
<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;">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-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 2019</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;">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-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;">29</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:219.5pt;">
<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;">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:#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 2006</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;">Senior Adviser 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;">2020); 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;">2021-June 2021); Formerly, Managing </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 of Allianz 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;">of America L.P. (2005-2019); member </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 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:#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;">29</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;">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. Prior to February 1, 2021,
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund Complex would have included a number of open- and closed-end funds advised by Allianz Global </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investors U.S. LLC (&#8220;AllianzGI&#8221;), an affiliate of PIMCO. Effective February 1, 2021 (and February 26, 2021 </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">with respect to Virtus AllianzGI Artificial Intelligence &amp; Technology Opportunities Fund), however, Virtus </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Advisers, Inc. (&#8220;Virtus&#8221;) became the primary investment adviser of those funds (such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Virtus-advised funds, the &#8220;Former Allianz-Managed Funds&#8221;), and therefore they are no longer included within </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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_71"></A>
<div style="page-break-after:always;position:relative;"> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-left:30pt;text-align:left;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the definition of Fund Complex as used herein. As of the date of this statement of additional information,
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">AllianzGI serves as sub-adviser to most of the remaining Former Allianz-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: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: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: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;">(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;">Ms. Vandecruze was appointed as a Trustee of the Fund effective June 30,
2021.</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;">(6)</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:12pt;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:0.0%;">
<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:101.85pt;">
<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;">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-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;">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 2019</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;">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 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:101pt;">
<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;">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:#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 </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:#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 2018</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;">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 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> </td> </tr>
<tr style="height:125pt;">
<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;">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: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;">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: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;">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. Chief Legal Officer 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;">Secretary, 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, 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:#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;">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:#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;">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-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;">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: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;">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: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;">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-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-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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_72"></A> <div style="page-break-after:always;position:relative;">
<div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0%;">
<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:125.85pt;">
<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. 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;">Secretary, 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, 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:77pt;">
<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;">Jeffrey A. Byer</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;">1976</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 2020</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;">and PIMCO Equity Series VIT.</font></div> </div> </td> </tr>
<tr style="height:77pt;">
<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;">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: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 2020</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;">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;">and PIMCO Equity Series VIT.</font></div> </div> </td> </tr>
<tr style="height:77pt;">
<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;">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:#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 March 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;">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;">and PIMCO Equity Series VIT.</font></div> </div> </td> </tr>
<tr style="height:77pt;">
<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;">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: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 September 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;">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;">and PIMCO Equity Series VIT.</font></div> </div> </td> </tr>
<tr style="height:77pt;">
<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;">Bijal 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:#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;">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 January 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;">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;">and PIMCO Equity Series VIT.</font></div> </div> </td> </tr>
<tr style="height:84pt;">
<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;">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: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;">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: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 2015</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;">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 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> </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_5fa7400f-3e10-41ec-95f1-c5836835932c_73"></A> <div style="page-break-after:always;position:relative;">
<div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0%;">
<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:84.85pt;">
<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;">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: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;">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: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 March 2022</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;">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;">and PIMCO Equity Series VIT.</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 style="line-height:12.0pt;margin-top:12.0pt;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:12.0pt;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:12.0pt;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:12.0pt;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:12.0pt;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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_74"></A> <div style="page-break-after:always;position:relative;">
<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%;">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 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 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.&nbsp;</font></div> <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%;">William B. Ogden, IV</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;"> &#8212; Mr. Ogden has substantial senior
executive experience in the investment banking </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">industry. He served as Managing Director at Citigroup, where he established and led the firm&#8217;s efforts to raise
capital </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">for, and provide mergers and acquisition advisory services to, asset managers and investment advisers. He also has </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">significant experience with fund products through his senior-level responsibility for originating and underwriting a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">broad variety of such products.</font></div> <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 (2021), a </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Director of The Doctors Company, a medical malpractice insurance company (since 2020) and a Director and Member </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Investment &amp; Risk Committee, Resolution Life Group Holdings, a global life insurance group (since 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, Ogden 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, 2021, the Audit Oversight </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Committee met six 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%;">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, Ogden, Rappaport and Mses. </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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_75"></A>
<div style="page-break-after:always;position:relative;"> <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%;">Cogan, DeCotis, McCartney and Vandecruze. Ms. DeCotis is the current Chair of the Governance and Nominating </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Committee. The primary purposes and responsibilities of the Governance and Nominating Committee are (i) advising </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and making recommendations to the Board on matters concerning Board governance and related Trustee practices, and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">(ii) the 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, 2021, the Governance and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Nominating Committee met three 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%;">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,
Ogden and Rappaport and Mses. Cogan, DeCotis, McCartney and Vandecruze. Mr. Ogden is the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Chair of the Valuation Oversight Committee. The Valuation Oversight Committee has
been delegated responsibility by </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_5fa7400f-3e10-41ec-95f1-c5836835932c_76"></A> <div style="page-break-after:always;position:relative;">
<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 Board for
overseeing determination of the fair value of the Fund&#8217;s portfolio securities and other assets on behalf of </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Board in accordance with the Fund&#8217;s valuation
procedures. The Valuation Oversight Committee reviews and </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">approves procedures for the fair valuation of the Fund&#8217;s portfolio securities and periodically reviews
information from </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO regarding fair value determinations made pursuant to Board-approved procedures, and makes related </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">recommendations to the full Board and assists the full Board in resolving particular fair valuation and other valuation </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">matters. In certain circumstances as specified in the Fund&#8217;s valuation policies, the Valuation Oversight Committee may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">also determine the fair value of portfolio holdings after consideration of all relevant factors, which determinations shall </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">be reported to the full Board. During the fiscal year ended December 31, 2021, the Valuation Oversight Committee </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">met four 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, Ogden,
Rappaport and Mses. Cogan, DeCotis, McCartney and Vandecruze. Ms. Cogan serves as the Chair </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">administrative and distribution services, as applicable. During the fiscal year ended December 31, 2021, the Contracts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Committee met three 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, Ogden,
Rappaport, Maney and Fisher and Mses. Cogan, DeCotis, McCartney and Vandecruze. Mr. </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Rappaport serves as the Chair of the Performance Committee. The Performance
Committee&#8217;s responsibilities include </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">reviewing the performance of the Fund and any changes in investment philosophy, approach and personnel of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Manager. During the fiscal year ended December 31, 2021, the Performance Committee met four 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, 2021:</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:0.0%;">
<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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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></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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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><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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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;">[ ]</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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_77"></A> <div style="page-break-after:always;position:relative;">
<div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="line-height:12.0pt;margin-left:30pt;text-align:left;"><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, PIMCO Income Opportunity Fund, PCM Fund, Inc., PIMCO Dynamic Credit and Mortgage Income </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund, PIMCO Dynamic Income Fund, PIMCO Dynamic Income Opportunities Fund, PIMCO Access Income </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund,
PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Global StocksPLUS&#174; &amp; </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Income Fund, PIMCO Strategic Income Fund, Inc., PIMCO Flexible Municipal
Income Fund, PIMCO </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Flexible Credit Income Fund, PIMCO Energy and Tactical Credit Opportunities Fund, PIMCO Flexible </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Emerging Markets Income Fund and 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: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: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: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:18.34pt;text-align:left;width:445.00pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Ms. Vandecruze was appointed as a Trustee of the Fund effective June 30,
2021.</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%;">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 December 31, 2021 by Independent Trustees and their immediate </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">family members:</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:0.0%;">
<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.</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. Vandecruze was appointed as a Trustee of the Fund effective June 30,
2021.</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
[ ], 2022, 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 [ ], 2022, to the knowledge of the Fund, the following entities owned beneficially or of record 5% or more </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund&#8217;s outstanding equity securities. To the knowledge of the Fund, no other person owned beneficially or of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">record 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:0.0%;">
<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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_78"></A> <div style="page-break-after:always;position:relative;">
<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%;">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:12pt;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 style="line-height: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 (Mr. Fisher
and Mr. 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 for </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the fiscal year ended December 31, 2021 for serving as Trustees of the Fund and other funds in the same Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Complex as the Fund. Each officer and each Trustee who is a director, officer, partner, member or employee of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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:0.0%;">
<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:100.8pt;"> <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:96.3pt;"> <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, 2021</font></div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:96.3pt;"> <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:96.3pt;"> <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:90.3pt;"> <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, 2021</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:100.8pt;"> <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:96.3pt;"> <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:5pt;padding-top:0.85pt;vertical-align:Top;width:96.3pt;"> <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:96.3pt;"> <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:90.3pt;"> <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;">$225,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:100.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Deborah A. DeCotis</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <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:96.3pt;"> <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:90.3pt;"> <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;">$300,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:100.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Hans W. Kertess</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(3)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <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:96.3pt;"> <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:90.3pt;"> <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;">$225,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:100.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Joseph B. Kittredge, Jr.</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <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:96.3pt;"> <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:90.3pt;"> <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:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:100.8pt;"> <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;">(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:96.3pt;"> <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:96.3pt;"> <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:96.3pt;"> <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:90.3pt;"> <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:100.8pt;"> <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></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <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:#FFFFFF;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <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:96.3pt;"> <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:90.3pt;"> <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;">$225,000</font></div> </div> </td> </tr>
<tr style="height:17pt;">
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:100.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Alan Rappaport</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:5pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <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:96.3pt;"> <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:90.3pt;"> <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;">$225,000</font></div> </div> </td> </tr>
<tr style="height:12pt;">
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:100.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">E. Grace Vandecruze</font><font style="color:#000000;font-family:Times New Roman;font-size:6.5pt;margin-left:0.0pt;position:relative;top:-4.25pt;">(5)</font>
<div style="clear:right;"> </div> </div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$[ ]</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <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:3pt;padding-top:5pt;vertical-align:Top;width:96.3pt;"> <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:3pt;padding-top:5pt;vertical-align:Top;width:90.3pt;"> <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;">$168,750</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, 2021, 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;">Mr. Kertess retired and resigned from the Board effective December 31, 2021.</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 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;"> </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_5fa7400f-3e10-41ec-95f1-c5836835932c_79"></A> <div style="page-break-after:always;position:relative;">
<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;">(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;">Ms. Vandecruze became a Trustee of the Fund effective June 30, 2021.</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;">Codes of Ethics</font></div>
<div style="line-height: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 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: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 Manager</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 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;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 March 31, 2022, PIMCO
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">had approximately $2.05 trillion of assets under management. As of March 31, 2022, PIMCO had $1.94 trillion of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">third-party assets under 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%;">PIMCO is a majority owned subsidiary of Allianz Asset Management of America L.P. (&#8220;Allianz Asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Management&#8221;) with minority interests held by Allianz Asset Management of America LLC and Allianz Asset </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Management U.S. Holding II LLC, each a Delaware limited liability company, and by certain current and former </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">officers of PIMCO. Allianz Asset Management was organized as a limited partnership under Delaware law in 1987. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Through various holding company structures, Allianz Asset Management is majority owned by Allianz SE. Allianz SE </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is a European based, multinational insurance and financial services holding company and a publicly traded German </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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%;">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.&nbsp;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 0.705% 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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_80"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_81"></A> <div style="page-break-after:always;position:relative;">
<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%;">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 style="line-height: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 annual report to shareholders for the fiscal year ended December 31, 2021 </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, 2021, December 31, 2020, and December 31, 2019:</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:0.0%;">
<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, 2021</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;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</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, 2020</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;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</font></div> </div> </td> </tr>
<tr style="height:10pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:362.34pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">December 31, 2019</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:117.66pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:4pt;margin-right:1pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">[ ]</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 0.705% 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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_82"></A>
<div style="page-break-after:always;position:relative;"> <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 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:12pt;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:12pt;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, 2021: (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 style="line-height:0.0pt;text-align:left;"> </div>
<div style="margin-top:0.0%;">
<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:27.11pt;margin-right:27.11pt;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:7.895pt;margin-right:7.895pt;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:36.095pt;margin-right:36.095pt;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:27.11pt;margin-right:27.11pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:5pt;">23</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:7.895pt;margin-right:7.895pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">13,591.39
</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:77.19pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:36.095pt;margin-right:36.095pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:64.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:22.5pt;">0.00</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:27.11pt;margin-right:27.11pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:10pt;">9</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:7.895pt;margin-right:7.895pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">45,111.29
</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:77.19pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:36.095pt;margin-right:36.095pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">5</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:2.5pt;padding-top:2.5pt;vertical-align:Middle;width:64.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">44,556.23</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:27.11pt;margin-right:27.11pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">147</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:7.895pt;margin-right:7.895pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">12,671.14
</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:2.5pt;vertical-align:Middle;width:77.19pt;"> <div style="line-height:12pt;text-align:left;">
<div style="margin-left:36.095pt;margin-right:36.095pt;text-align:Center;white-space:nowrap;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0</font></div> </div> </td>
<td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:2.5pt;vertical-align:Middle;width:64.8pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:4pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:22.5pt;">0.00</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. Conflicts like those described herein may also occur </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">between Clients, on the one hand, and PIMCO or its affiliates, on the other. These conflicts will not always be resolved </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">in favor of the 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: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 (as defined below) are affiliates of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">PIMCO or have investors who are affiliates or employees of PIMCO, PIMCO may have incentives to resolve conflicts </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of interest in favor of these Clients over other Clients.</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_5fa7400f-3e10-41ec-95f1-c5836835932c_83"></A> <div style="page-break-after:always;position:relative;">
<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: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:12pt;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:12pt;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.</font></div>
<div style="line-height: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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_84"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_85"></A>
<div style="page-break-after:always;position:relative;"> <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 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_86"></A> <div style="page-break-after:always;position:relative;">
<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 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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 restrictions may prohibit PIMCO from </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">using certain brokers or investing in certain companies (even if such companies are not affiliated with Allianz) because </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the applicability of certain laws and regulations applicable to PIMCO, Allianz SE or their affiliates. An account&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">willingness to negotiate terms or take actions with respect to an investment may also be, directly or indirectly, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">constrained or otherwise impacted to the extent Allianz SE, PIMCO, and/or their affiliates, directors, partners, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">managers, members, officers or personnel are also invested therein or otherwise have a connection to the subject </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">investment (e.g., serving as a trustee or board member thereof).</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_5fa7400f-3e10-41ec-95f1-c5836835932c_87"></A> <div style="page-break-after:always;position:relative;">
<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: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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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:left;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:left;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:left;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:left;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;"> </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_5fa7400f-3e10-41ec-95f1-c5836835932c_88"></A> <div style="page-break-after:always;position:relative;">
<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:left;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:left;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:left;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;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:439.0pt;"><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, 2021 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:0.0%;">
<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;">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;">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>
<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_5fa7400f-3e10-41ec-95f1-c5836835932c_89"></A> <div style="page-break-after:always;position:relative;">
<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%;">Equity 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:6.5pt;position:relative;top:-4.25pt;">2</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:6pt;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:6pt;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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_90"></A> <div style="page-break-after:always;position:relative;">
<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 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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: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;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_91"></A> <div style="page-break-after:always;position:relative;">
<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 did not pay any brokerage commissions during the fiscal years ended December 31, 2021, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">December 31, 2020 and December 31, 2019.</font></div>
<div style="line-height: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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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, 2021, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">December&nbsp;31, 2020 and December&nbsp;31, 2019.</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, 2021, 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;">2021.</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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_92"></A> <div style="page-break-after:always;position:relative;">
<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:0.0%;">
<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, 2021 ($000)</font></div> </div> </td> </tr>
<tr style="height:10.85pt;">
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:377.44pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">[ ]</font></div> </div> </td>
<td style="background-color:azure;padding-top:0.85pt;vertical-align:Top;width:102.56pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><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><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">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:12.0pt;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 [ ], 2022.</font> <br></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;">DESCRIPTION OF SHARES</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;">Common Shares</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&#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:12.0pt;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:12.0pt;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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_93"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_94"></A>
<div style="page-break-after:always;position:relative;"> <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 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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;">Forum for Adjudication of Disputes</font></div> <div style="line-height: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 Bylaws provide that unless the Fund consents in writing to the selection of an alternative forum, the sole and </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">exclusive forum for (i) any action or proceeding brought on behalf of the Fund or one or more of the shareholders, (ii) </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">any action asserting a claim of breach of a fiduciary duty owed by any Trustee, officer, other employee of the Fund, or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s investment adviser to the Fund or the Fund&#8217;s shareholders, (iii) any action asserting a breach of contract by </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund, by any Trustee, officer or other employee of the Fund, or by the Fund&#8217;s investment adviser, (iv) any action </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">asserting a claim arising pursuant to any provision of the Massachusetts Business Corporation Act, Chapter 182 of the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Massachusetts General Laws or the Declaration or the Bylaws, (v) any action to interpret, apply, enforce or determine </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the validity of the Declaration or the Bylaws or any agreement contemplated by any provision of the 1940 Act, the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Declaration or the Bylaws, or (vi) any action asserting a claim governed by the internal affairs doctrine shall be within </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the federal or state courts in the Commonwealth of Massachusetts (each, a &#8220;Covered Action&#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 Bylaws further provide that if any Covered Action is filed in a court other than in a
federal or state court </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">sitting within the Commonwealth of Massachusetts (a &#8220;Foreign Action&#8221;) in the name of any shareholder, such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholder shall be deemed to have consented to (i) the personal jurisdiction of the federal and state courts within The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Commonwealth of Massachusetts in connection with any action brought in any such courts to enforce the preceding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">sentence (an &#8220;Enforcement Action&#8221;) and (ii) having service of process made upon such shareholder in any such </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Enforcement Action by service upon such shareholder&#8217;s counsel in the Foreign Action as agent for such shareholder.</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%;">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 (i) deemed to have notice of and consented to the foregoing paragraph and (ii) deemed to have waived any </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">argument relating to the inconvenience of the forum referenced above in connection with any action or proceeding </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">described in the foregoing paragraph.</font></div> <div style="line-height: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 forum selection provision may limit a shareholder&#8217;s ability to bring a claim in a judicial forum that it finds </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">favorable for disputes with Trustees, officers or other agents of the Fund and its service providers, which may </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">discourage such lawsuits with respect to such claims and increase the costs for a shareholder to pursue such claims. If </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">a court were to find the forum selection provision contained in the Bylaws to be inapplicable or unenforceable in an </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">action, the Fund may incur additional costs associated with resolving such action in other jurisdictions. This forum </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">selection provision shall not apply to claims made under federal securities laws. The enforceability of exclusive forum </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">provisions is questionable.</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_5fa7400f-3e10-41ec-95f1-c5836835932c_95"></A>
<div style="page-break-after:always;position:relative;"> <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;">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. The Trustees shall consider such demand within </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">90 days of its receipt by the Fund. In their sole discretion, the Trustees may submit the matter to a vote of shareholders </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the Fund or a series or class of shares, as appropriate. Any decision by the Trustees to bring, maintain or settle (or </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">not to bring, maintain or settle) such court action, proceeding or claim, or to submit the matter to a vote of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shareholders shall be made by the Trustees in their business judgment and shall be binding upon the 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, nor shall any single shareholder, </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">who is similarly situated to one or more other shareholders with respect to the alleged injury, have the right to bring </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such an action, unless such group of shareholders or shareholder has obtained authorization from the Trustees to bring </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the action. The requirement of authorization shall not be excused under any circumstances, including claims of alleged </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">interest on the part of the Trustees. The Trustees shall consider such request within 90 days of its receipt by the Fund. </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">In their sole discretion, the Trustees may submit the matter to a vote of shareholders of the Fund or series or class of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">shares, as appropriate. Any decision by the Trustees to settle or to authorize (or not to settle or to authorize) such court </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">action, proceeding or claim, or to submit the matter to a vote of shareholders, shall be made in their business judgment </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">and shall be binding 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">&#8220;Description of Capital Structure&#8212; 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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_96"></A> <div style="page-break-after:always;position:relative;">
<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%;">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 in-flows 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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_97"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_98"></A> <div style="page-break-after:always;position:relative;">
<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%;">(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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_99"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_100"></A> <div style="page-break-after:always;position:relative;">
<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%;">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><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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></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_5fa7400f-3e10-41ec-95f1-c5836835932c_101"></A> <div style="page-break-after:always;position:relative;">
<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%;">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 style="line-height: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> <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_5fa7400f-3e10-41ec-95f1-c5836835932c_102"></A> <div style="page-break-after:always;position:relative;">
<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
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><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 order for the Fund to distribute exempt-interest dividends for purposes of the California personal income tax, at </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">least 50% of the value of the Fund's total assets at the end of each quarter of each taxable year must consist of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">California state or local obligations and/or U.S. federal obligations, the interest from which is exempt from California </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">personal income taxation. If the Fund qualifies to distribute exempt-interest dividends and reports these distributions as </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">such to Fund shareholders, all distributions of the Fund attributable to interest income earned on such California state </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">or local obligations and/or U.S. federal obligations for the taxable year of the Fund will be exempt from California </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">personal income 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;">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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_103"></A> <div style="page-break-after:always;position:relative;">
<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:12pt;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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_104"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_105"></A>
<div style="page-break-after:always;position:relative;"> <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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_106"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_107"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_108"></A>
<div style="page-break-after:always;position:relative;"> <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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_109"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_110"></A> <div style="page-break-after:always;position:relative;">
<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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_111"></A>
<div style="page-break-after:always;position:relative;"> <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%;">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_5fa7400f-3e10-41ec-95f1-c5836835932c_112"></A> <div style="page-break-after:always;position:relative;">
<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;">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;">FINANCIAL STATEMENTS</font></div> <div style="line-height: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 financial statements appearing in the Fund&#8217;s annual shareholder report for the year ended </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">December 31, 2021 are incorporated by reference in this Statement of Additional Information and have been so </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">incorporated in reliance upon the reports of [ ], independent registered public accounting firm for the Fund, which </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">report is included in such annual shareholder reports. The Fund's unaudited financial statements appearing in the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund's semi-annual shareholder report for the period ended June 30, 2022 are incorporated by reference in this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Statement of Additional 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 annual shareholder reports are available upon request and without charge by writing to the Fund at c/o Pacific </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Investment Management Company LLC, 1633 Broadway, New York, New York 10019.</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_5fa7400f-3e10-41ec-95f1-c5836835932c_113"></A> <div style="page-break-after:always;position:relative;">
<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;">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. The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund is permitted to &#8220;incorporate by reference&#8221; the information filed with the SEC, which means that the Fund can </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">disclose important information to you by referring you to those documents. The information incorporated by reference </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">is considered to be part of this statement of additional information, and later information that the Fund files with the </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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 with the SEC 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, prior to the termination </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">of the offering will be incorporated by reference into this statement of additional information and deemed to be part of </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">the registration statement from the date of the filing [ ], of such reports and documents:</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 [ ], 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:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund's </font> <a href="https://www.sec.gov/Archives/edgar/data/1140411/000119312522236700/d299692dncsrs.htm">
<font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;">Semi-Annual Report on Form N-CSRS, filed on September 2, 2022</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">;</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:439.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">the Fund&#8217;s Annual Report on Form N-CSR, filed on [ ]; 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="https://www.sec.gov/Archives/edgar/data/1140411/000092701601501519/d8a12b.txt">
<font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;">Description of Shares on Form 8-A, filed on June 21, 2001</font></A><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">.</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%;">You may obtain copies of any
information incorporated by reference into this statement of additional information, </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">at no charge, by calling toll-free (844)-337-4626 or by writing to the Fund at c/o
Pacific Investment Management </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Company LLC, 1633 Broadway, New York, New York 10019. The Fund&#8217;s periodic reports filed pursuant to </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">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%;">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_ee641c3a-e239-446d-be4a-ea8267b4ce56_1"></A> <div style="page-break-after:always;position:relative;">
<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:left;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:left;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:left;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;">CEF0025SAI_[ ]</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_00f322fc-3bb3-4438-9a3d-771923439a19_1"></A> <div style="page-break-after:always;position:relative;">
<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, 2021, 2020, 2019, 2018, 2017 and 2016; the fiscal
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">period ended December 31, 2015; and fiscal years ended April 30, 2015, 2014, 2013 and 2012.</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;">Unaudited Financial highlights for the fiscal period ended June 30, 2022.</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 [ ] (File No. 811-10379)</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: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's most recent </font> <a href="https://www.sec.gov/Archives/edgar/data/1140411/000119312522236700/d299692dncsrs.htm"><font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;">Certified Shareholder
Report on Form </font></A> <a href="https://www.sec.gov/Archives/edgar/data/1140411/000119312522236700/d299692dncsrs.htm"><font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;">N-CSRS, filed September 2, 2022</font></A><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;"> (File No. 811-10379)</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;">Schedule of
Investments as of June 30, 2022</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;">Statement of Assets and Liabilities as of June 30, 2022</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;">Statement of Operations for the six months ended June 30, 2022</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;">Statements of Changes in Net Assets for the six months ended June 30, 2022 and 2021</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;">Statement of Cash Flows for the six months ended June 30, 2022</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;">Notes to Financial Statements</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:0.0%;">
<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="https://www.sec.gov/Archives/edgar/data/1140411/000092701601501548/dex99a.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 19, 2001</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="d604547dex99a2.htm"><font
style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Amendment No. 1 to the Amended and Restated Agreement and Declaration of Trust dated </font></A></div>
<div style="margin-left:9pt;text-align:Left;white-space:nowrap;"> <a href="d604547dex99a2.htm"><font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">September 22, 2011</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: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="d604547dex99a3.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></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="d604547dex99a4.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></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="d604547dex99a5.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></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="d604547dex99a6.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></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="d604547dex99a7.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></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="d604547dex99a8.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></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="d604547dex99a9.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></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="d604547dex99a10.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></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="d604547dex99b.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></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="https://www.sec.gov/Archives/edgar/data/1140411/000092701601501548/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="https://www.sec.gov/Archives/edgar/data/1140411/000092701601502432/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;">(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: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="https://www.sec.gov/Archives/edgar/data/1140411/000092701601501548/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:24pt;">
<td style="background-color:#FFFFFF;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-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-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/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="https://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;">(3)</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_00f322fc-3bb3-4438-9a3d-771923439a19_2"></A>
<div style="page-break-after:always;position:relative;"> <div style="float:left;margin-left:60pt;margin-top:43pt;width:480pt;min-height:683pt;"> <div style="margin-top:0.0%;">
<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;">(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="https://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="https://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;">(3)</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;">(h)</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;">Sales Agreement between Registrant and JonesTrading Institutional Services LLC dated [ ], 2022. **</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;">(i)</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;">(j)</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="https://www.sec.gov/Archives/edgar/data/1140411/000092701601501548/dex99j.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Form of 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:#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="https://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="https://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;">(3)</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: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: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="https://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="https://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;">(3)</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: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="https://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="https://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 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;">(3)</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="https://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;">(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: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/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;">(3)</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="https://www.sec.gov/Archives/edgar/data/1140411/000092701601501598/dex99p.txt">
<font style="font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;text-decoration:underline;">Subscription Agreement of PIMCO Advisors L.P, dated June 19, 2001</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;">(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="https://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;">(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: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="https://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;">(3)</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="https://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="https://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;">(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;">(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="d604547dexfilingfees.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="https://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="https://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, William B. Ogden, IV, 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;">(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: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="https://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;">(3)</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="https://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;">(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: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;">(5)</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="d604547dex99u.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: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:15pt;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 Registration Statement on Form </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">N-2, File Nos. 333-61300 and 811-10379 (filed on June 25, 2001).</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;">2</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;">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. 333-64824 and 811-10379 (filed on August 14, 2001).</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;">3</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;">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;">4</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;">Incorporated by reference to the Pre-Effective Amendment No. 3 to the
Registrant&#8217;s Registration Statement on </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Form N-2, File Nos. 333-61300 and 811-10379 (filed on June 26, 2001).</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;">5</font></div>
<div style="float:left;line-height:12pt;margin-left:15pt;text-align:left;width:455.0pt;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Incorporated by reference to PIMCO Municipal Income Fund II's Registration Statement on
Form N-2, File </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Nos. 333-266754 and 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: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> </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_00f322fc-3bb3-4438-9a3d-771923439a19_3"></A> <div style="page-break-after:always;position:relative;"> <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;">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 (to be filed by amendment) and
the </font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">section entitled &#8220;Plan of Distribution&#8221; contained in the Registrant&#8217;s Prospectus, filed as Part A of the Registrant&#8217;s </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Registration Statement and 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:0.0%;">
<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: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;">Transfer Agent 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;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0.00</font></div> </div> </td> </tr>
<tr style="height:13pt;">
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Marketing Expenses</font></div> </div> </td>
<td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0.00</font></div> </div> </td> </tr>
<tr style="height: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;">Miscellaneous 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;">$</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">0.00</font></div> </div> </td> </tr>
<tr style="height:10pt;">
<td style="background-color:azure;padding-top:3pt;vertical-align:Top;width:449.67pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-right:4.5pt;text-align:Left;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0.0pt;">Total</font></div> </div> </td>
<td style="background-color:azure;padding-top:3pt;vertical-align:Top;width:30.33pt;"> <div style="line-height:12pt;text-align:left;"> <div style="margin-left:2.5pt;text-align:Center;white-space:nowrap;"><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">$</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></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 [ ],
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:0.0%;">
<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;">[ ]</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;">[ ]</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> </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_00f322fc-3bb3-4438-9a3d-771923439a19_4"></A> <div style="page-break-after:always;position:relative;">
<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;">Item
33: Management Services</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></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 34: Undertakings</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;">1. Not applicable.</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;">2. Not applicable.</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;">3. The
Registrant undertakes:</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:11.1pt;"><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: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;">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 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;">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; 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;">(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> </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_00f322fc-3bb3-4438-9a3d-771923439a19_5"></A>
<div style="page-break-after:always;position:relative;"> <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:11.1pt;"><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 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;">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_00f322fc-3bb3-4438-9a3d-771923439a19_6"></A> <div style="page-break-after:always;position:relative;">
<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 California Municipal Income
</font><font style="color:#000000;font-family:Times New Roman;font-size:10pt;">Fund (the &#8220;Fund&#8221;), together with all amendments thereto, is on file with the Secretary of State of The </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">Commonwealth of Massachusetts, and notice is hereby given that this instrument is executed on behalf of the Fund </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">by any officer of the Fund as an officer and not individually and that the obligations of or arising out of this </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">instrument are not binding upon any of the Trustees of the Fund or shareholders of the Fund individually, but are </font><font
style="color:#000000;font-family:Times New Roman;font-size:10pt;">binding only upon the assets 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_330416c1-9f7b-49c3-ab26-afa702ee398a_1"></A> <div style="page-break-after:always;position:relative;">
<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 30</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 September, 2022.</font><font
style="color:#000000;font-family:Times New Roman;font-size:1pt;">&#8195;</font></div> <div style="margin-top:0.0%;">
<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 CALIFORNIA MUNICIPAL INCOME FUND</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:0.0%;">
<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:155.77pt;"> <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:93.25pt;"> <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:155.77pt;"> <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:152.27pt;"> </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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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:152.27pt;"> </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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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:152.27pt;"> </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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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:152.27pt;"> </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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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:152.27pt;"> </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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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:152.27pt;"> </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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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:152.27pt;"> </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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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:152.27pt;"> </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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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;">William B. Ogden, IV*</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:152.27pt;"> </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;">William B. Ogden, IV</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:93.25pt;"> <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;">September 30, 2022</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:155.77pt;"> <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:152.27pt;"> </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:#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:93.25pt;"> <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;">September 30, 2022</font></div> </div> </td> </tr>
<tr style="height:29.5pt;">
<td style="background-color:azure;padding-bottom:6pt;padding-top:4.5pt;vertical-align:Top;width:155.77pt;"> <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 Vandercruze*</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:152.27pt;"> </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 Vandercruze</font></div> </div> </td>
<td style="background-color:azure;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:azure;padding-bottom:6pt;padding-top:4.5pt;vertical-align:Top;width:93.25pt;"> <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;">September 30, 2022</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:0.0%;">
<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> </BODY></HTML>
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<DOCUMENT>
<TYPE>EX-99.A2
<SEQUENCE>2
<FILENAME>d604547dex99a2.htm
<DESCRIPTION>EX-99.A2
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">PIMCO CALIFORNIA MUNICIPAL INCOME FUND </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">AMENDMENT NO.&nbsp;1 TO </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">THE
AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">September 22, 2011 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The undersigned, being at least a majority of the Trustees of PIMCO California Municipal Income Fund (the &#147;Trust&#148;), having
determined it to be consistent with the fair and equitable treatment of all shareholders of the Trust, hereby amend the Trust&#146;s Amended and Restated Agreement and Declaration of Trust (the &#147;Declaration of Trust&#148;), a copy of which is
on file in the office of the Secretary of State of the Commonwealth of Massachusetts, as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">1. Section 8 of Article IX of the Declaration of Trust
is hereby deleted in its entirety and replaced with the following language: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;The principal address of the Trust is 1633 Broadway, New
York, NY 10019. The Trustees may change the principal address of the Trust to any location within or without The Commonwealth of Massachusetts as they shall determine in their sole discretion.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The foregoing amendment shall be effective as of the time it is filed with the Secretary of State of the Commonwealth of Massachusetts. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>[THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK] </B></P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, we have hereunto set our hand for ourselves and for our successors and
assigns as of the day and year first above written. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom"> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Paul Belica</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Bradford K. Gallagher</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Bradford K. Gallagher</P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ James A. Jacobson</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">James A. Jacobson</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Hans W. Kertess</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Hans W. Kertess</P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ John C. Maney</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">John C. Maney</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ William B. Ogden, IV</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">William B. Ogden, IV</P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Alan Rappaport</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Alan Rappaport</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Deborah A. Zoullas</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Deborah A. Zoullas</P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>Signature page to Amendment to the Declaration of Trust </I></P>
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<DOCUMENT>
<TYPE>EX-99.A3
<SEQUENCE>3
<FILENAME>d604547dex99a3.htm
<DESCRIPTION>EX-99.A3
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NOTICE OF CHANGE OF TRUSTEE AND PRINCIPAL ADDRESS </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 California Municipal Income Fund (the &#147;Trust&#148;) is organized as a trust under the laws of the Commonwealth of
Massachusetts; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS, </B>the Board nominated and appointed Craig A. Dawson as a Trustee of the Trust, effective at the close of
business on September&nbsp;5, 2014; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> effective at the close of business on September&nbsp;5, 2014, the principal
address of the Trust has changed to c/o Pacific Investment Management Company, LLC, 1633 Broadway, New York, New York 10019; </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 nomination and appointment, the eight (8)&nbsp;Trustees of the Trust are: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top">Craig A. Dawson</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">New York, New York 10019</TD></TR>
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<TD HEIGHT="16"></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">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">New York, New York 10019</TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">Bradford K. Gallagher</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">New York, New York 10019</TD></TR>
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<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">James A. Jacobson</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">New York, New York 10019</TD></TR>
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<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">Hans W. Kertess</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">New York, New York 10019</TD></TR>
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<TD HEIGHT="16"></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">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">New York, New York 10019</TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">William B. Ogden, IV</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">New York, New York 10019</TD></TR>
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<TD HEIGHT="16"></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">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">New York, New York 10019</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition, as a result of the foregoing change of address, the principal address of the Trust is c/o
Pacific Investment Management Company, LLC, 1633 Broadway, New York, New York 10019. </P>

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 <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 <U>5th</U> day of
September,&nbsp;2014, 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>
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<TD VALIGN="top">Ryan Leshaw, Assistant Secretary</TD></TR>
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<DOCUMENT>
<TYPE>EX-99.A4
<SEQUENCE>4
<FILENAME>d604547dex99a4.htm
<DESCRIPTION>EX-99.A4
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<TITLE>EX-99.a4</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; 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 California Municipal Income Fund (the &#147;Trust&#148;) is organized as a trust under the laws of the Commonwealth of
Massachusetts; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> Craig A. Dawson resigned as a Trustee of the Trust, effective January&nbsp;1, 2019; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS, </B>the Board nominated and appointed Sarah E. Cogan as a Trustee of the Trust, effective January&nbsp;1, 2019; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> the Board nominated and appointed David N. Fisher as a Trustee of the Trust, effective January&nbsp;1, 2019; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> the Shareholders of the Trust elected T. Matthew Buffington to replace Hans W. Kertess as a Preferred Shares Trustee of the
Trust, effective December&nbsp;19, 2018; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> the Board nominated and appointed Hans W. Kertess as a Trustee of the Trust,
effective December&nbsp;20, 2018; </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 resignation, election and nominations and
appointments, the ten (10)&nbsp;Trustees of the Trust are: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top">T. Matthew Buffington</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">641 Lexington Avenue, 13<SUP STYLE="font-size:75%; vertical-align:top">th</SUP> Floor</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">New York, New York 10022</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">Sarah E. Cogan</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Deborah A. DeCotis</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></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"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">650 Newport Center Drive</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Newport Beach, CA
92660</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Bradford K. Gallagher</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">James A. Jacobson</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Hans W. Kertess</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">New York, New York 10019</TD></TR>
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<TD VALIGN="top">John C. Maney</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>
<TD VALIGN="top">Newport Beach, CA 92660</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">William B. Ogden, IV</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Alan Rappaport</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">New York, New York 10019</TD></TR>
</TABLE></DIV>

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

 <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 <U>16th</U> day of January, 2019,
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>
<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="font-size:1pt">
<TD HEIGHT="16"></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">/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"><FONT STYLE="white-space:nowrap">Wu-Kwan</FONT> Kit, Secretary</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Signature Page &#150; PIMCO California Municipal Income Fund (PCQ) </P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A5
<SEQUENCE>5
<FILENAME>d604547dex99a5.htm
<DESCRIPTION>EX-99.A5
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.a5</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; 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 California Municipal Income Fund (the &#147;Trust&#148;) is organized as a trust under the laws of the Commonwealth of
Massachusetts; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> Bradford K. Gallagher resigned as a Trustee of the Trust, effective December&nbsp;31, 2019; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> the preferred shareholders of the Trust elected Derrick A. Clark to replace James A. Jacobson as a Trustee of the Trust,
effective December&nbsp;17, 2019; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> the Board nominated and appointed James A. Jacobson as a Trustee of the Trust,
effective December&nbsp;17, 2019. </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 resignation, election, nomination and
appointment, the ten (10)&nbsp;Trustees of the Trust are: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="96%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="51%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></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">T. Matthew Buffington</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Derrick A. Clark</P></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">641 Lexington Avenue, 13<SUP STYLE="font-size:75%; vertical-align:top">th</SUP> Floor</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">New York, New York 10022</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">450 Park Avenue, Suite 25</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">New York, New York 10022</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sarah E. Cogan</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Deborah A. DeCotis</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">David N. Fisher</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">650 Newport Center Drive</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Newport Beach, CA
92660</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">James A. Jacobson</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Hans W. Kertess</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">John C. Maney</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>
<TD VALIGN="top">Newport Beach, CA 92660</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">William B. Ogden, IV</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Alan Rappaport</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">New York, New York 10019</TD></TR>
</TABLE></DIV>

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

 <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 8th day of January, 2020, 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>
<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="font-size:1pt">
<TD HEIGHT="16"></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">/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:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Signature Page &#150; PIMCO California Municipal Income Fund (PCQ) </P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A6
<SEQUENCE>6
<FILENAME>d604547dex99a6.htm
<DESCRIPTION>EX-99.A6
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.a6</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; 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 California Municipal Income Fund (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> the Board nominated and appointed Joseph B. Kittredge, Jr. as a Trustee of the Trust, effective as of
June&nbsp;12, 2020; </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 nomination and appointment, the eleven (11)&nbsp;Trustees
of the Trust are: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="96%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="51%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">T. Matthew Buffington</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">641 Lexington Avenue, 13<SUP STYLE="font-size:75%; vertical-align:top">th</SUP> Floor,</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">New York, New York 10022</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Derrick A. Clark</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">450 Park Avenue, Suite 25,</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">New York, New York 10022</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sarah E. Cogan</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Deborah A. DeCotis</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">David N. Fisher</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">650 Newport Center Drive</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Newport Beach, CA
92660</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">James A. Jacobson</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Hans W. Kertess</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Joseph B. Kittredge, Jr.</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">John C. Maney</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>
<TD VALIGN="top">Newport Beach, CA 92660</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">William B. Ogden, IV</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Alan Rappaport</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">New York, New York 10019</TD></TR>
</TABLE></DIV>

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

 <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 9th day of July, 2020, 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>
<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="font-size:1pt">
<TD HEIGHT="16"></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">/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:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Signature Page &#150; PIMCO California Municipal Income Fund (PCQ) </P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A7
<SEQUENCE>7
<FILENAME>d604547dex99a7.htm
<DESCRIPTION>EX-99.A7
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.a7</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; 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 California Municipal Income Fund (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> James A. Jacobson resigned as a Trustee of the Trust, effective as of December&nbsp;31, 2020; </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 resignation, the ten (10)&nbsp;Trustees of the Trust are: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="96%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="51%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">T. Matthew Buffington</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">641 Lexington Avenue, 13<SUP STYLE="font-size:75%; vertical-align:top">th</SUP> Floor,</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">New York, New York 10022</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Derrick A. Clark</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">641 Lexington Avenue, 13<SUP STYLE="font-size:75%; vertical-align:top">th</SUP> Floor,</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">New York, New York 10022</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sarah E. Cogan</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Deborah A. DeCotis</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">David N. Fisher</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">650 Newport Center Drive</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Newport Beach, CA
92660</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Hans W. Kertess</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Joseph B. Kittredge, Jr.</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">John C. Maney</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>
<TD VALIGN="top">Newport Beach, CA 92660</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">William B. Ogden, IV</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Alan Rappaport</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">New York, New York 10019</TD></TR>
</TABLE></DIV>

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

 <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 <U>29</U><U><SUP
STYLE="font-size:75%; vertical-align:top">th</SUP></U> day of January, 2021, 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>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


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


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></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">/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:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Signature Page &#150; PIMCO California Municipal Income Fund (PCQ) </P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A8
<SEQUENCE>8
<FILENAME>d604547dex99a8.htm
<DESCRIPTION>EX-99.A8
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.a8</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; 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 California Municipal Income Fund (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> the Board nominated and appointed Grace Vandecruze as a Trustee of the Trust, effective as of
June&nbsp;30, 2021; and </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 nomination and appointment, the eleven
(11)&nbsp;Trustees of the Trust are: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="96%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="51%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">T. Matthew Buffington</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">641 Lexington Avenue, 13<SUP STYLE="font-size:75%; vertical-align:top">th</SUP> Floor,</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">New York, New York 10022</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Derrick A. Clark</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">450 Park Avenue, Suite 25,</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">New York, New York 10022</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sarah E. Cogan</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Deborah A. DeCotis</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">David N. Fisher</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">650 Newport Center Drive</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Newport Beach, CA
92660</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Hans W. Kertess</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Joseph B. Kittredge, Jr.</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">John C. Maney</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>
<TD VALIGN="top">Newport Beach, CA 92660</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">William B. Ogden, IV</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Alan Rappaport</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Grace Vandecruze</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">New York, New York 10019</TD></TR>
</TABLE></DIV>

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

 <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 30<SUP
STYLE="font-size:75%; vertical-align:top">th</SUP> day of June, 2021, 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>
<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="font-size:1pt">
<TD HEIGHT="16"></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">/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 California Municipal Income Fund (PCQ) </P>

</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A9
<SEQUENCE>9
<FILENAME>d604547dex99a9.htm
<DESCRIPTION>EX-99.A9
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.a9</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; 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 California Municipal Income Fund (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> Derrick A. Clark resigned as a Trustee of the Trust, effective as of December&nbsp;3, 2021; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> T. Matthew Buffington&#146;s term as a Trustee of the Trust expired on December&nbsp;17, 2021; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS,</B> Hans W. Kertess resigned as a Trustee of the Trust, effective as of December&nbsp;31, 2021; </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 resignation, the eight (8)&nbsp;Trustees of the Trust are: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="96%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="51%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sarah E. Cogan</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Deborah A. DeCotis</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">David N. Fisher</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></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Joseph B. Kittredge, Jr.</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">John C. Maney</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>
<TD VALIGN="top">Newport Beach, CA 92660</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">William B. Ogden, IV</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Alan Rappaport</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">E. Grace Vandecruze</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">New York, New York 10019</TD></TR>
</TABLE></DIV>

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

 <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 5<SUP
STYLE="font-size:75%; vertical-align:top">th</SUP> day of January, 2022, 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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<TR>

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


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></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">/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:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Signature Page &#150; PIMCO California Municipal Income Fund (PCQ) </P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A10
<SEQUENCE>10
<FILENAME>d604547dex99a10.htm
<DESCRIPTION>EX-99.A10
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.a10</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; 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 California Municipal Income Fund (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> the Board nominated and appointed Kathleen McCartney as a Trustee of the Trust, effective as of
July&nbsp;1, 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 nomination and appointment, the nine (9)&nbsp;Trustees of
the Trust are: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="96%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="51%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sarah E. Cogan</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Deborah A. DeCotis</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">David N. Fisher</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></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Joseph B. Kittredge, Jr.</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">John C. Maney</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>
<TD VALIGN="top">Newport Beach, CA 92660</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">William B. Ogden, IV</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Alan Rappaport</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">E. Grace Vandecruze</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">New York, New York 10019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Kathleen McCartney</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>

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

 <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 18<SUP
STYLE="font-size:75%; vertical-align:top">th</SUP> day of July, 2022, 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>
<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="font-size:1pt">
<TD HEIGHT="16"></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">/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:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Signature Page &#150; PIMCO California Municipal Income Fund (PCQ) </P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.B
<SEQUENCE>11
<FILENAME>d604547dex99b.htm
<DESCRIPTION>EX-99.B
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.b</TITLE>
</HEAD>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AMENDED AND RESTATED </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>BYLAWS </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>of </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(Amended and Restated as of July&nbsp;14, 2021) </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 1 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Agreement and
Declaration of Trust and Principal Office </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.1 <U>Principal Office of the Trust</U>. A principal office of the Trust shall be located
in New York, New York. The Trust may have other principal offices within or without Massachusetts as the Trustees may determine or as they may authorize. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.2 <U>Agreement and Declaration of Trust</U>. These Amended and Restated Bylaws (the &#147;Bylaws&#148;) shall be subject to the Agreement and
Declaration of Trust, as amended or restated from time to time (the &#147;Declaration of Trust&#148;), of PIMCO California Municipal Income Fund, the Massachusetts business trust established by the Declaration of Trust (the &#147;Trust&#148;).
Capitalized terms used in these Bylaws and not otherwise defined herein shall have the meanings given to such terms in the Declaration of Trust. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 2 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Meetings of
Trustees </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.1 <U>Regular Meetings</U>. Regular meetings of the Trustees may be held without call or notice at such places and at such
times as the Trustees may from time to time determine, provided that notice of the first regular meeting following any such determination shall be given to absent Trustees. A regular meeting of the Trustees may be held without call or notice
immediately after and at the same place as the annual meeting of the Shareholders (as defined in the Declaration of Trust). </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.2 <U>Special
Meetings</U>. Special meetings of the Trustees may be held at any time and at any place designated in the call of the meeting when called by the Chairman of the Trustees, the President or the Treasurer or by two or more Trustees, sufficient notice
thereof being given to each Trustee by the Secretary or an Assistant Secretary or by the officer or the Trustees calling the meeting. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.3
<U>Notice</U>. It shall be sufficient notice to the Trustee of a special meeting to send notice by mail at least forty-eight hours or by telegram, telex or telecopy or other electronic facsimile transmission method at least twenty-four hours before
the meeting addressed to the Trustee at his or her usual or last known business or residence address or to give notice to him or her in person or by telephone at least twenty-four hours before the meeting. Notice of a meeting need not be given to
any Trustee if a written waiver of notice, executed by him or her, before or after the meeting, is filed with the records of the meeting, or to any Trustee who attends the meeting without protesting prior thereto or at its commencement the lack of
notice to him or her. Neither notice of a meeting nor a waiver of a notice need specify the purposes of the meeting. </P>

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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.4 <U>Quorum</U>. At any meeting of the Trustees a majority of the Trustees then in office shall
constitute a quorum. Any meeting may be adjourned from time to time by a majority of the votes cast upon the question, whether or not a quorum is present, and the meeting may be held as adjourned without further notice. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 3 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Officers and
Chairman of the Trustees </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.1 <U>Enumeration; Qualification</U>. The officers of the Trust shall be a President, a Treasurer, a
Secretary, a Chief Compliance Officer and such other officers, if any, as the Trustees from time to time may in their discretion elect. The Trust may also have such agents as the Trustees from time to time may in their discretion appoint. Any
officer may but need not be a Trustee or a Shareholder. Any two or more offices may be held by the same person. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.2 <U>Election</U>. The
President, the Treasurer, and the Secretary shall be elected annually by the Trustees. Other officers, if any, may be elected or appointed by the Trustees at the same meeting at which the President, Treasurer and Secretary are elected, or at any
other time. If required by the 1940 Act, the Chief Compliance Officer shall be elected or appointed by a majority of the trustees, as well as a majority of the Trustees who are not Interested Persons of the Trust (&#147;Independent Trustees&#148;),
and otherwise in accordance with Rule <FONT STYLE="white-space:nowrap">38a-1</FONT> (or any successor rule) under the 1940 Act, as such rule may be amended from time to time (&#147;Rule <FONT STYLE="white-space:nowrap">38a-1&#148;).</FONT> Vacancies
in any office may be filled at any time. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.3 <U>Tenure</U>. The Chairman of the Trustees, if one is elected, the President, the Treasurer,
the Secretary and the Chief Compliance Officer shall hold office until their respective successors are chosen and qualified, or in each case until he or she sooner dies, resigns, is removed with or without cause or becomes disqualified, provided
that, if required by the 1940 Act, any renewal of the Chief Compliance Officer shall be in accordance with Rule <FONT STYLE="white-space:nowrap">38a-1.</FONT> Each other officer shall hold office and each agent of the Trust shall retain authority at
the pleasure of the Trustees. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.4 <U>Powers</U>. Subject to the other provisions of these Bylaws, each officer shall have, in addition to
the duties and powers herein and in the Declaration of Trust set forth, such duties and powers as are commonly incident to the office occupied by him or her as if the Trust were organized as a Massachusetts business corporation and such other duties
and powers as the Trustees may from time to time designate. </P>
 <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">-2- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.5 <U>Chairman of the Trustees.</U> There shall be an office of the Chairman of the Trustees,
which shall serve of behalf of the Trustees, but shall not be an officer of the Trust. The office of the Chairman of the Trustees may be held by more than one person. Any Chairman of the Trustees shall be elected by a majority of the Trustees, as
well as a majority of the Independent Trustees if required by the 1940 Act. If required by the 1940 Act, any Chairman of the Trustees shall be an Independent Trustee and may, but need not, be a shareholder. The powers and the duties of the Chairman
of the Trustees shall include any and all such powers and duties relating to the operations of the Trustees as, from time to time, may be conferred upon or assigned to such office by the Trustees or as may be required by law, provided that the
Chairman of the Trustees shall have no individual authority to act for the Trust as an officer of the Trust. In carrying out the responsibilities and duties of the office, the Chairman of the Trustees may seek assistance and input from other
Trustees or Committees of the Trustees, officers of the Trust and the Trust&#146;s investment adviser(s) and other service providers, as deemed necessary or appropriate. The Trustees, including a majority of the Independent Trustees if required by
the 1940 Act, may appoint one or more persons to perform the duties of the Chairman of the Trustees, in the event of his absence at any meeting or in the event of his disability. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.6 <U>President; Vice President</U>. The President shall be the chief executive officer. Any Vice President shall have such duties and powers
as may be designated from time to time by the Trustees or the President. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.7 <U>Treasurer; Assistant Treasurer</U>. The Treasurer shall be
the chief financial and accounting officer of the Trust, and shall, subject to the provisions of the Declaration of Trust and to any arrangement made by the Trustees with a custodian, investment adviser,
<FONT STYLE="white-space:nowrap">sub-adviser</FONT> or manager, or transfer, shareholder servicing or similar agent, be in charge of the valuable papers, books of account and accounting records of the Trust, and shall have such other duties and
powers as may be designated from time to time by the Trustees or by the President. Any Assistant Treasurer shall have such duties and powers as may be designated from time to time by the Trustees or the President. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.8 <U>Secretary; Assistant Secretary</U>. The Secretary shall record all proceedings of the Shareholders and the Trustees in books to be kept
therefor, which books or a copy thereof shall be kept at the principal office of the Trust. In the absence of the Secretary from any meeting of the Shareholders or Trustees, an Assistant Secretary, or if there be none or if he or she is absent, a
temporary secretary chosen at such meeting shall record the proceedings thereof in the aforesaid books. Any Assistant Secretary shall have such duties and powers as may be designated from time to time by the Trustees or the President. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.9 <U>Chief Compliance Officer</U>. The Chief Compliance Officer shall perform the duties and have the responsibilities of the chief
compliance officer of the Trust, including if required by the 1940 Act any such duties and responsibilities imposed by Rule <FONT STYLE="white-space:nowrap">38a-1,</FONT> and shall have such other duties and powers as may be designated from time to
time by the Trustees. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.10 <U>Resignations</U>. Any officer may resign at any time by written instrument signed by him or her and
delivered to the Chairman of the Trustees, if any, the President or the Secretary, or to a meeting of the Trustees. Such resignation shall be effective upon receipt unless specified to be effective at some other time. Except to the extent expressly
provided in a written agreement with the Trust, no officer resigning and no officer removed shall have any right to any compensation for any period following his or her resignation or removal, or any right to damages on account of such removal. </P>

 <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">-3- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 4 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Committees </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.1 <U>Quorum;
Voting</U>. Except as provided below or as otherwise specifically provided in the resolutions constituting a Committee of the Trustees and providing for the conduct of its meetings, a majority of the members of any Committee of the Trustees shall
constitute a quorum for the transaction of business, and any action of such a Committee may be taken at a meeting by a vote of a majority of the members present (a quorum being present) or evidenced by one or more writings signed by such a majority.
Members of a Committee may participate in a meeting of such Committee by means of a conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other at the same time and
participation by such means shall constitute presence in person at a meeting. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">With respect to a Valuation Committee of the Trustees, one
or more of the Committee members shall constitute a quorum for the transaction of business. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Except as specifically provided in the
resolutions constituting a Committee of the Trustees and providing for the conduct of its meetings, Article 2, Section&nbsp;2.3 of these Bylaws relating to special meetings shall govern the notice requirements for Committee meetings, except that it
shall be sufficient notice to a Valuation Committee of the Trustees to send notice by telegram, telex or telecopy or other electronic means (including by telephone voice-message or <FONT STYLE="white-space:nowrap">e-mail)</FONT> at least fifteen
minutes before the meeting. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 5 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Reports </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5.1
<U>General</U>. The Trustees and officers shall render reports at the time and in the manner required by the Declaration of Trust or any applicable law. Officers and Committees shall render such additional reports as they may deem desirable or as
may from time to time be required by the Trustees. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 6 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Fiscal Year </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.1
<U>General</U>. Except as from time to time otherwise provided by the Trustees, the initial fiscal year of the Trust shall end on such date as is determined in advance or in arrears by the Treasurer, and the subsequent fiscal years shall end on such
date in subsequent years. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 7 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Seal </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.1 <U>General</U>.
The seal of the Trust shall, subject to alteration by the Trustees, consist of a flat-faced die with the word &#147;Massachusetts&#148;, together with the name of the Trust and the year of its organization cut or engraved thereon; provided, however,
that unless otherwise required by the Trustees, the seal shall not be necessary to be placed on, and its absence shall not impair the validity of, any document, instrument or other paper executed and delivered by or on behalf of the Trust. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 8 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Execution of
Papers </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.1 <U>General</U>. Except as the Trustees may generally or in particular cases authorize the execution thereof in some other
manner, all deeds, leases, transfers, contracts, bonds, notes, checks, drafts and other obligations made, accepted or endorsed by the Trust shall be executed by the President, any Vice President, the Treasurer or by whomever else shall be designated
for that purpose by vote of the Trustees, and need not bear the seal of the Trust. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 9 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Issuance of Share Certificates </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">9.1 <U>Share Certificates</U>. Except as provided in Article 11 hereof and Exhibit 1 hereto, each Shareholder shall be entitled to a
certificate stating the number of Shares (as defined in the Declaration of Trust) owned by him or her, in such form as shall be prescribed from time to time by the Trustees. Such certificates shall be signed by the President or any Vice President
and by the Treasurer or any Assistant Treasurer. Such signatures may be by facsimile if the certificate is signed by a transfer agent, or by a registrar, other than a Trustee, officer or employee of the Trust. In case any officer who has signed or
whose facsimile signature has been placed on such certificate shall cease to be such officer before such certificate is issued, it may be issued by the Trust with the same effect as if he or she were such officer at the time of its issuance. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing, in lieu of issuing certificates for Shares, the Trustees or the transfer agent may either issue receipts
therefor or may keep accounts upon the books of the Trust for the record holders of such Shares, who shall in either case be deemed, for all purposes hereunder, to be the holders of certificates for such Shares as if they had accepted such
certificates and shall be held to have expressly assented and agreed to the terms hereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">9.2 <U>Loss of Certificates</U>. In case of the
alleged loss or destruction or the mutilation of a share certificate, a duplicate certificate may be issued in place thereof, upon such terms as the Trustees shall prescribe. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">9.3 <U>Issuance of New Certificates to Pledgee</U>. A pledgee of Shares transferred as collateral security shall be entitled to a new
certificate if the instrument of transfer substantially describes the debt or duty that is intended to be secured thereby. Such new certificate shall express on its face that it is held as collateral security, and the name of pledgor shall be stated
thereon, who alone shall be liable as a Shareholder and entitled to vote thereon. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">9.4 <U>Discontinuance of Issuance of Certificates</U>. Notwithstanding anything to the contrary
in this Article 9, the Trustees may at any time discontinue the issuance of share certificates and may, by written notice to each Shareholder, require the surrender of share certificates to the Trust for cancellation. Such surrender and cancellation
shall not effect the ownership of Shares in the Trust. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 10 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Shareholders&#146; Voting Powers and Meetings </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.1 <U>Voting Powers</U>. The Shareholders shall have power to vote only (i)&nbsp;for the election or removal of Trustees as provided in
Article IV, Sections 1 and 3 of the Declaration of Trust, Article 11 hereto and Exhibit 1 hereto, (ii)&nbsp;with respect to any Manager or <FONT STYLE="white-space:nowrap">sub-adviser</FONT> as provided in Article IV, Section&nbsp;8 of the
Declaration of Trust to the extent required by the 1940 Act, (iii)&nbsp;with respect to certain transactions and other matters to the extent and as provided in Article V, Sections 2 and 3 of the Declaration of Trust, Article 11 hereto and Exhibit 1
hereto, (iv)&nbsp;with respect to any termination of this Trust to the extent and as provided in Article IX, Section&nbsp;4 of the Declaration of Trust, Article 11 hereto and Exhibit 1 hereto (for the avoidance of any doubt, Shareholders shall have
no separate right to vote with respect to the termination of the Trust or a series or class of Shares if the Trustees (including the Continuing Trustees) exercise their right to terminate the Trust or such series or class pursuant to clauses
(ii)&nbsp;and (y) of Article IX, Section&nbsp;4 of the Declaration of Trust), (v) with respect to any amendment of the Declaration of Trust to the extent and as provided in Article IX, Section&nbsp;7 of the Declaration of Trust, Article 11 hereto
and Exhibit 1 hereto, (vi)&nbsp;to the same extent as the stockholders of a Massachusetts business corporation as to whether or not a court action, proceeding or claim should or should not be brought or maintained derivatively or as a class action
on behalf of the Trust or the Shareholders, and (vii)&nbsp;with respect to such additional matters relating to the Trust as may be required by law, the Declaration of Trust, these Bylaws or any registration of the Trust with the Securities and
Exchange Commission (or any successor agency) or any state, or as the Trustees may consider necessary or desirable. Each whole Share shall be entitled to one vote as to any matter on which it is entitled to vote and each fractional Share shall be
entitled to a proportionate fractional vote, except as otherwise provided in the Declaration of Trust, these Bylaws, or required by applicable law. Except as otherwise provided in the Declaration of Trust or these Bylaws or required by applicable
law, all Shares of the Trust then entitled to vote shall be voted in the aggregate as a single class without regard to classes or series of Shares. There shall be no cumulative voting in the election of Trustees. Shares may be voted in person or by
proxy. A proxy with respect to Shares held in the name of two or more persons shall be valid if executed by any one of them unless at or prior to exercise of the proxy the Trust receives a specific written notice to the contrary from any one of
them. The placing of a Shareholder&#146;s name on a proxy pursuant to telephonic or electronically transmitted instructions obtained pursuant to procedures reasonably designed to verify that such instructions have been authorized by such Shareholder
shall constitute execution of such proxy by or on behalf of such Shareholder. A proxy </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">purporting to be executed by or on behalf of a Shareholder shall be deemed valid unless challenged at or prior to
its exercise and the burden of proving invalidity shall rest on the challenger. Until Shares of a particular class or series are issued, the Trustees may exercise all rights of Shareholders and may take any action required by law, the Declaration of
Trust or these Bylaws to be taken by Shareholders as to such class or series. For purposes of this Article 10, all preferred shares of beneficial interest of the Trust issued and outstanding, including, without limitation, the APS and the RVMTP
Shares, shall be treated as a single class. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.2 <U>Voting Power and Meetings</U>. Except as provided in the next sentence, regular
meetings of the Shareholders for the election of Trustees and the transaction of such other business as may properly come before the meeting shall be held, so long as Shares are listed for trading on the New York Stock Exchange, on at least an
annual basis, on such day and at such place as shall be designated by the Trustees. In the event that such a meeting is not held in any annual period if so required, whether the omission be by oversight or otherwise, a subsequent special meeting may
be called by the Trustees and held in lieu of such meeting with the same effect as if held within such annual period. Special meetings of the Shareholders or any or all classes or series of Shares may also be called by the Trustees from time to time
for such other purposes as may be prescribed by law, by the Declaration of Trust or by these Bylaws, or for the purpose of taking action upon any other matter deemed by the Trustees to be necessary or desirable. A special meeting of Shareholders may
be held at any such time, day and place as is designated by the Trustees. Written notice of any meeting of Shareholders, stating the date, time, place and purpose of the meeting, shall be given or caused to be given by a majority of the Trustees and
a majority of the Continuing Trustees at least seven days before such meeting to each Shareholder entitled to vote thereat by leaving such notice with the Shareholder at his or her residence or usual place of business or by mailing such notice,
postage prepaid, to the Shareholder&#146;s address as it appears on the records of the Trust. Such notice may be given by the Secretary or an Assistant Secretary or by any other officer designated for such purpose by the Trustees. Whenever notice of
a meeting is required to be given to a Shareholder under the Declaration of Trust or these Bylaws, a written waiver thereof, executed before or after the meeting by such Shareholder or his or her attorney thereunto authorized and filed with the
records of the meeting, shall be deemed equivalent to such notice. Notice of a meeting need not be given to any Shareholder who attends the meeting without protesting prior thereto or at its commencement the lack of notice to such Shareholder. No
ballot shall be required for any election unless required by a Shareholder present or represented at the meeting and entitled to vote in such election. Notwithstanding anything to the contrary in this Section&nbsp;10.2, no matter shall be properly
before any annual or special meeting of Shareholders and no business shall be transacted thereat unless in accordance with Section&nbsp;10.6 of these Bylaws. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.3 <U>Quorum and Required Vote</U>. Except when a larger quorum is required by any provision of law or the Declaration of Trust or these
Bylaws, thirty percent (30%) of the Shares entitled to vote on a particular matter shall constitute a quorum for the transaction of business at a Shareholders&#146; meeting, except that where any provision of law or the Declaration of Trust or these
Bylaws permits or requires that holders of any class or series of Shares shall vote as an individual class or series, then thirty percent (30%) (unless a larger quorum is required as </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">specified above) of Shares of that class or series entitled to vote shall be necessary to constitute a quorum for
the transaction of business by that class or series. Any lesser number shall be sufficient for adjournments. Any adjourned session or sessions may be held, within a reasonable time after the date set for the original meeting, without the necessity
of further notice. Except when a different vote is required by any provision of law or the Declaration of Trust or these Bylaws, a plurality of the quorum of Shares necessary for the transaction of business at a Shareholders&#146; meeting shall
decide any questions and a plurality of Shares voted shall elect a Trustee, provided that where any provision of law or of the Declaration of Trust or these Bylaws permits or requires that the holders of any class or series of Shares shall vote as
an individual class or series, then a plurality of the quorum of Shares of that class or series necessary for the transaction of business by that class or series at a Shareholders&#146; meeting shall decide that matter insofar as that class or
series is concerned. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.4 <U>Action by Written Consent</U>. Any action taken by Shareholders may be taken without a meeting if a majority
of Shareholders entitled to vote on the matter (or such larger proportion thereof as shall be required by any express provision of law or the Declaration of Trust or these Bylaws) consent to the action in writing and such written consents are filed
with the records of the meetings of Shareholders. Such consent shall be treated for all purposes as a vote taken at a meeting of Shareholders. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.5 <U>Record Dates</U>. For the purpose of determining the Shareholders who are entitled to vote or act at any meeting or any adjournment
thereof, or who are entitled to receive payment of any dividend or of any other distribution, the Trustees may from time to time fix a time, which shall be not more than 90 days before the date of any meeting of Shareholders or the date for the
payment of any dividend or of any other distribution, as the record date for determining the Shareholders having the right to notice of and to vote at such meeting and any adjournment thereof or the right to receive such dividend or distribution,
and in such case only Shareholders of record on such record date shall have the right notwithstanding any transfer of Shares on the books of the Trust after the record date; or without fixing such record date the Trustees may for any of such
purposes close the register or transfer books for all or any part of such period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.6 <U>Advance Notice of Shareholder Nominees for
Trustees and Other Shareholder</U> <U>Proposals</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) As used in this Section&nbsp;10.6, the term &#147;annual meeting&#148; refers to
any annual meeting of Shareholders as well as any special meeting held in lieu of an annual meeting as described in the first two sentences of Section&nbsp;10.2 of these Bylaws, and the term &#147;special meeting&#148; refers to all meetings of
Shareholders other than an annual meeting or a special meeting in lieu of an annual meeting. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) The matters to be considered and brought
before any annual or special meeting of Shareholders shall be limited to only such matters, including the nomination and election of Trustees, as shall be brought properly before such meeting in compliance with the procedures set forth in this
Section&nbsp;10.6. Only persons who are nominated in accordance with the procedures set forth in this Section&nbsp;10.6 shall be eligible for election as Trustees, and no proposal to fix the </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">number of Trustees shall be brought before an annual or special meeting of Shareholders or otherwise transacted
unless in accordance with the procedures set forth in this Section&nbsp;10.6, except as may be otherwise provided in these Bylaws with respect to the right of holders of preferred shares of beneficial interest, if any, of the Trust to nominate and
elect a specified number of Trustees in certain circumstances. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) For any matter to be properly before any annual meeting, the matter
must be (i)&nbsp;specified in the notice of meeting given by or at the direction of a majority of the Trustees and a majority of the Continuing Trustees pursuant to Section&nbsp;10.2 of these Bylaws, (ii)&nbsp;otherwise brought before the meeting by
or at the direction of a majority of the Continuing Trustees (or any duly authorized committee thereof), or (iii)&nbsp;brought before the meeting in the manner specified in this Section&nbsp;10.6(c) by a Shareholder of record entitled to vote at the
meeting or by a Shareholder (a &#147;Beneficial Owner&#148;) that holds Shares entitled to vote at the meeting through a nominee or &#147;street name&#148; holder of record and that can demonstrate to the Trust such indirect ownership and such
Beneficial Owner&#146;s entitlement to vote such Shares, provided that the Shareholder was the Shareholder of record or the Beneficial Owner held such Shares at the time the notice provided for in this Section&nbsp;10.6(c) is delivered to the
Secretary. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition to any other requirements under applicable law and the Declaration of Trust and these Bylaws, persons nominated by
Shareholders for election as Trustees and any other proposals by Shareholders may be properly brought before an annual meeting only pursuant to timely notice (the &#147;Shareholder Notice&#148;) in writing to the Secretary. To be timely, the
Shareholder Notice must be delivered to or mailed and received at the principal executive offices of the Trust not less than forty-five (45)&nbsp;nor more than sixty (60)&nbsp;days prior to the first anniversary date of the date on which the Trust
first mailed its proxy materials for the prior year&#146;s annual meeting; <U>provided</U>, <U>however</U>, with respect to the Trust&#146;s first annual meeting, the Shareholder Notice must be so delivered or mailed and so received on or before
July&nbsp;1, 2002; <U>provided</U> <U>further</U>, <U>however</U>, if and only if the annual meeting is not scheduled to be held within a period that commences thirty (30)&nbsp;days before the first anniversary date of the annual meeting for the
preceding year and ends thirty (30)&nbsp;days after such anniversary date (an annual meeting date outside such period being referred to herein as an &#147;Other Annual Meeting Date&#148;), such Shareholder Notice must be given in the manner provided
herein by the later of the close of business on (i)&nbsp;the date forty-five (45)&nbsp;days prior to such Other Annual Meeting Date or (ii)&nbsp;the tenth (10<SUP STYLE="font-size:75%; vertical-align:top">th</SUP>) business day following the date
such Other Annual Meeting Date is first publicly announced or disclosed. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Any Shareholder desiring to nominate any person or persons (as
the case may be) for election as a Trustee or Trustees of the Trust shall deliver, as part of such Shareholder Notice: (i)&nbsp;a statement in writing setting forth (A)&nbsp;the name, age, date of birth, business address, residence address and
nationality of the person or persons to be nominated; (B) the class or series and number of all Shares of the Trust owned of record or beneficially by each such person or persons, as reported to such Shareholder by such nominee(s); (C) any other
information regarding each such person required by paragraphs (a), (d), (e) and (f)&nbsp;of Item 401 of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT> or paragraph (b)&nbsp;of Item 22 of Rule <FONT STYLE="white-space:nowrap">14a-101</FONT>
(Schedule 14A) under the Securities Exchange </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Act of 1934, as amended (the &#147;Exchange Act&#148;), adopted by the Securities and Exchange Commission (or the
corresponding provisions of any regulation or rule subsequently adopted by the Securities and Exchange Commission or any successor agency applicable to the Trust); (D) any other information regarding the person or persons to be nominated that would
be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitation of proxies for election of Trustees or directors pursuant to Section&nbsp;14 of the Exchange Act and the rules and regulations
promulgated thereunder; and (E)&nbsp;whether such Shareholder believes any nominee is or will be an &#147;interested person&#148; of the Trust (as defined in the Investment Company Act of 1940, as amended) and, if not an &#147;interested
person,&#148; information regarding each nominee that will be sufficient for the Trust to make such determination; and (ii)&nbsp;the written and signed consent of the person or persons to be nominated to be named as nominees and to serve as Trustees
if elected. In addition, the Trustees may require any proposed nominee to furnish such other information as they may reasonably require or deem necessary to determine the eligibility of such proposed nominee to serve as a Trustee. Any Shareholder
Notice required by this Section&nbsp;10.6(c) in respect of a proposal to fix the number of Trustees shall also set forth a description of and the text of the proposal, which description and text shall state a fixed number of Trustees that otherwise
complies with applicable law, these Bylaws and the Declaration of Trust. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Without limiting the foregoing, any Shareholder who gives a
Shareholder Notice of any matter proposed to be brought before a Shareholder meeting (whether or not involving nominees for Trustees) shall deliver, as part of such Shareholder Notice: (i)&nbsp;the description of and text of the proposal to be
presented; (ii)&nbsp;a brief written statement of the reasons why such Shareholder favors the proposal; (iii)&nbsp;such Shareholder&#146;s name and address as they appear on the Trust&#146;s books; (iv)&nbsp;any other information relating to the
Shareholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with the solicitation of proxies with respect to the matter(s) proposed pursuant to Section&nbsp;14 of the Exchange Act and
the rules and regulations promulgated thereunder; (v)&nbsp;the class or series and number of all Shares of the Trust owned beneficially and of record by such Shareholder; (vi)&nbsp;any material interest of such Shareholder in the matter proposed
(other than as a Shareholder); (vii) a representation that the Shareholder intends to appear in person or by proxy at the Shareholder meeting to act on the matter(s) proposed; (viii)&nbsp;if the proposal involves nominee(s) for Trustees, a
description of all arrangements or understandings between the Shareholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by the Shareholder; and (ix)&nbsp;in the
case of a Beneficial Owner, evidence establishing such Beneficial Owner&#146;s indirect ownership of, and entitlement to vote, Shares at the meeting of Shareholders. As used in this Section&nbsp;10.6, Shares &#147;beneficially owned&#148; shall mean
all Shares which such person is deemed to beneficially own pursuant to Rules <FONT STYLE="white-space:nowrap">13d-3</FONT> and <FONT STYLE="white-space:nowrap">13d-5</FONT> under the Exchange Act. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) For any matter to be properly before any special meeting, the matter must be specified in the notice of meeting given by or at the
direction of a majority of the Trustees and a majority of the Continuing Trustees pursuant to Section&nbsp;10.2 of these Bylaws. In the event the Trust calls a special meeting for the purpose of electing one or more Trustees, any Shareholder </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">may nominate a person or persons (as the case may be) for election to such position(s) as specified in the
Trust&#146;s notice of meeting if and only if the Shareholder provides a notice containing the information required in the Shareholder Notice to the Secretary required with respect to annual meetings by Section&nbsp;10.6(c) hereof, and such notice
is delivered to or mailed and received at the principal executive office of the Trust not later than the close of business on the tenth (10<SUP STYLE="font-size:75%; vertical-align:top">th</SUP>) day following the day on which the date of the
special meeting and of the nominees proposed by the Trustees to be elected at such meeting are publicly announced or disclosed. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) For
purposes of this Section&nbsp;10.6, a matter shall be deemed to have been &#147;publicly announced or disclosed&#148; if such matter is disclosed in a press release reported by the Dow Jones News Service, Associated Press or comparable national news
service, in a document publicly filed by the Trust with the Securities and Exchange Commission, or in a Web site accessible to the public maintained by the Trust or by its investment adviser or an affiliate of such investment adviser with respect to
the Trust. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) In no event shall an adjournment or postponement (or a public announcement thereof) of a meeting of Shareholders commence a
new time period (or extend any time period) for the giving of notice as provided in this Section&nbsp;10.6. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) The person presiding at
any meeting of Shareholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall have the power and duty to (i)&nbsp;determine whether a nomination or proposal of other matters to be brought
before a meeting and notice thereof have been duly made and given in the manner provided in this Section&nbsp;10.6 and elsewhere in these Bylaws and the Declaration of Trust and (ii)&nbsp;if not so made or given, to direct and declare at the meeting
that such nomination and/or such other matters shall be disregarded and shall not be considered. Any determination by the person presiding shall be binding on all parties absent manifest error. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) Notwithstanding anything to the contrary in this Section&nbsp;10.6 or otherwise in these Bylaws, unless required by federal law, no matter
shall be considered at or brought before any annual or special meeting unless such matter has been approved for these purposes by a majority of the Continuing Trustees and, in particular, no Beneficial Owner shall have any rights as a Shareholder
except as may be required by federal law. Furthermore, nothing in this Section&nbsp;10.6 shall be construed as creating any implication or presumption as to the requirements of federal law. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 11 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Statement
Creating Three Series of Auction Preferred Shares </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Auction Preferred Shares, Series A: 2,000 shares of beneficial
interest of Preferred Shares, par value $0.00001 per share, liquidation preference $25,000 per share plus an amount equal to accumulated but unpaid dividends (whether or not earned or declared) thereon, is hereby designated &#147;Auction Preferred
Shares, Series A.&#148; Each share of Auction Preferred Shares, Series A (sometimes referred to herein as &#147;Series A APS&#148;) may be issued on a date to be determined by </P>
 <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">-11- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">the Board of Trustees of the Trust or pursuant to their delegated authority; have an Initial Dividend Rate and an
Initial Dividend Payment Date as shall be determined in advance of the issuance thereof by the Board of Trustees of the Trust or pursuant to their delegated authority; and have such other preferences, voting powers, limitations as to dividends,
qualifications and terms and conditions of redemption as are set forth in these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> The Series A APS shall constitute a separate series of Preferred Shares of the Trust, and each share of Series A APS
shall be identical. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Auction Preferred Shares, Series B: 2,000 shares of beneficial interest of Preferred Shares, par value $0.00001 per
share, liquidation preference $25,000 per share plus an amount equal to accumulated but unpaid dividends (whether or not earned or declared) thereon, is hereby designated &#147;Auction Preferred Shares, Series B.&#148; Each share of Auction
Preferred Shares, Series B (sometimes referred to herein as &#147;Series B APS&#148;) may be issued on a date to be determined by the Board of Trustees of the Trust or pursuant to their delegated authority; have an Initial Dividend Rate and an
Initial Dividend Payment Date as shall be determined in advance of the issuance thereof by the Board of Trustees of the Trust or pursuant to their delegated authority; and have such other preferences, voting powers, limitations as to dividends,
qualifications and terms and conditions of redemption as are set forth in these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> The Series B APS shall constitute a separate series of Preferred Shares of the Trust, and each share of Series B APS
shall be identical. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Auction Preferred Shares, Series C: 2,000 shares of beneficial interest of Preferred Shares, par value $0.00001 per
share, liquidation preference $25,000 per share plus an amount equal to accumulated but unpaid dividends (whether or not earned or declared) thereon, is hereby designated &#147;Auction Preferred Shares, Series C.&#148; Each share of Auction
Preferred Shares, Series C (sometimes referred to herein as &#147;Series C APS&#148;) may be issued on a date to be determined by the Board of Trustees of the Trust or pursuant to their delegated authority; have an Initial Dividend Rate and an
Initial Dividend Payment Date as shall be determined in advance of the issuance thereof by the Board of Trustees of the Trust or pursuant to their delegated authority; and have such other preferences, voting powers, limitations as to dividends,
qualifications and terms and conditions of redemption as are set forth in these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> The Series C APS shall constitute a separate series of Preferred Shares of the Trust, and each share of Series C APS
shall be identical. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">These Bylaws and the RVMTP Shares Statement (as defined below) attached as Exhibit 1 hereto are intended such that
the APS and the RVMTP Shares are in parity with each other, such that neither shall have a preference or priority over the other with respect to the payment of dividends and the distribution of assets of the Trust upon dissolution, liquidation, or
winding up of the affairs of the Trust and shall be interpreted accordingly. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Unless otherwise provided, defined terms used in this
Article 11 apply only to the APS and defined terms used in Exhibit 1 hereto apply only to the RVMTP Shares. </P>
 <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">-12- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.1 <U>Definitions</U>. (a)&nbsp;Unless the context or use indicates another or different
meaning or intent, in Article 11 of these <FONT STYLE="white-space:nowrap">By-Laws</FONT> the following terms have the following meanings, whether used in the singular or plural: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;&#145;AA&#146; Composite Commercial Paper Rate,&#148; on any Valuation Date, means (i)&nbsp;the Interest Equivalent of the rate on
commercial paper placed on behalf of issuers whose corporate bonds are rated &#147;AA&#148; by S&amp;P or &#147;Aa&#148; by Moody&#146;s or the equivalent of such rating by another nationally recognized rating agency, as such rate is made available
on a discount basis or otherwise by the Federal Reserve Bank of New York for the Business Day immediately preceding such date, or (ii)&nbsp;in the event that the Federal Reserve Bank of New York does not make available such a rate, then the
arithmetic average of the Interest Equivalent of the rate on commercial paper placed on behalf of such issuers, as quoted on a discount basis or otherwise by UBS Warburg LLC or its successors that are Commercial Paper Dealers, to the Auction Agent
for the close of business on the Business Day immediately preceding such date. If one of the Commercial Paper Dealers does not quote a rate required to determine the &#147;AA&#148; Composite Commercial Paper Rate, the &#147;AA&#148; Composite
Commercial Paper Rate will be determined on the basis of the quotation or quotations furnished by any Substitute Commercial Paper Dealer or Substitute Commercial Paper Dealers selected by the Trust to provide such rate or rates not being supplied by
the Commercial Paper Dealer. If the number of Dividend Period days shall be (i) 7 or more but fewer than 49 days, such rate shall be the Interest Equivalent of the <FONT STYLE="white-space:nowrap">30-day</FONT> rate on such commercial paper; (ii) 49
or more but fewer than 70 days, such rate shall be the Interest Equivalent of the <FONT STYLE="white-space:nowrap">60-day</FONT> rate on such commercial paper; (iii) 70 or more days but fewer than 85 days, such rate shall be the arithmetic average
of the Interest Equivalent on the <FONT STYLE="white-space:nowrap">60-day</FONT> and <FONT STYLE="white-space:nowrap">90-day</FONT> rates on such commercial paper; (iv) 85 or more days but fewer than 99 days, such rate shall be the Interest
Equivalent of the <FONT STYLE="white-space:nowrap">90-day</FONT> rate on such commercial paper; (v) 99 or more days but fewer than 120 days, such rate shall be the arithmetic average of the Interest Equivalent of the
<FONT STYLE="white-space:nowrap">90-day</FONT> and <FONT STYLE="white-space:nowrap">120-day</FONT> rates on such commercial paper; (vi) 120 or more days but fewer than 141 days, such rate shall be the Interest Equivalent of the <FONT
STYLE="white-space:nowrap">120-day</FONT> rate on such commercial paper; (vii) 141 or more days but fewer than 162 days, such rate shall be the arithmetic average of the Interest Equivalent of the <FONT STYLE="white-space:nowrap">120-day</FONT> and <FONT
STYLE="white-space:nowrap">180-day</FONT> rates on such commercial paper; and (viii) 162 or more days but fewer than 183 days, such rate shall be the Interest Equivalent of the <FONT STYLE="white-space:nowrap">180-day</FONT> rate on such commercial
paper. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Accountant&#146;s Confirmation&#148; has the meaning set forth in Section&nbsp;11.7(c) of these By-Laws. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Adviser&#148; means the Trust&#146;s investment adviser which initially shall be Pacific Investment Management Company LLC. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Affiliate&#148; means any Person, other than UBS Warburg LLC or its successors, known to the Auction Agent to be controlled by, in
control of, or under common control with, the Trust. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Agent Member&#148; means a member of the Securities Depository that will act
on behalf of a Beneficial Owner of one or more APS or on behalf of a Potential Beneficial Owner. </P>
 <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">-13- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;APS&#148; means the Series A APS, the Series B APS and the Series C APS. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;APS Basic Maintenance Amount,&#148; as of any Valuation Date, means the dollar amount equal to the sum of (i)(A) the product of the
number of shares of APS Outstanding on such date multiplied by $25,000 (plus the product of the number of shares of any other series of Preferred Shares Outstanding on such date multiplied by the liquidation preference of such shares), plus any
redemption premium applicable to APS (or other Preferred Shares) then subject to redemption; (B)&nbsp;the aggregate amount of dividends that will have accumulated at the respective Applicable Rates (whether or not earned or declared) to (but not
including) the first respective Dividend Payment Dates for each series of APS Outstanding that follow such Valuation Date (plus the aggregate amount of dividends, whether or not earned or declared, that will have accumulated in respect of other
Outstanding Preferred Shares to (but not including) the first respective dividend payment dates for such other shares that follow such Valuation Date); (C) the aggregate amount of dividends that would accumulate on shares of each series of APS
Outstanding from such first respective Dividend Payment Date therefor through the 49th day after such Valuation Date, at the Maximum Applicable Rate (calculated as if such Valuation Date were the Auction Date for the Dividend Period commencing on
such Dividend Payment Date) for a <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period of shares of such series to commence on such Dividend Payment Date, assuming, solely for purposes of the foregoing, that if on such Valuation Date the
Trust shall have delivered a Notice of Special Dividend Period to the Auction Agent with respect to shares of such series, such Maximum Applicable Rate shall be the higher of (a)&nbsp;the Maximum Applicable Rate for the Special Dividend Period of
shares of such series to commence on such Dividend Payment Date and (b)&nbsp;the Maximum Applicable Rate for a <FONT STYLE="white-space:nowrap">7-Day</FONT> Rate Period of shares of such series to commence on such Dividend Payment Date, multiplied
by the Moody&#146;s Volatility Factor applicable to a <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period, or, in the event the Trust shall have delivered a Notice of Special Dividend Period to the Auction Agent with respect to shares of
such series designating a Special Dividend Period consisting of 49 days or more, the Moody&#146;s Volatility Factor applicable to a Special Dividend Period of that length (plus the aggregate amount of dividends that would accumulate at the maximum
dividend rate or rates on any other Preferred Shares Outstanding from such respective dividend payment dates through the 49th day after such Valuation Date, as established by or pursuant to the respective statements establishing and fixing the
rights and preferences of such other Preferred Shares) (except that (1)&nbsp;if such Valuation Date occurs during a <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period (or, in the case of Preferred Shares other than APS, a period similar to a
<FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period), the dividend for purposes of calculation would accumulate at the then current <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period Rate (or similar rate for Preferred Shares other
than APS) and (2)&nbsp;for those days during the period described in this subparagraph (C)&nbsp;in respect of which the Applicable Rate in effect immediately prior to such Dividend Payment Date will remain in effect (or, in the case of Preferred
Shares other than APS, in respect of which the dividend rate or rates in effect immediately prior to such respective dividend payment dates will remain in effect), the dividend for purposes of calculation would accumulate at such Applicable Rate (or
other rate or rates, as the case may be) in respect of those days); (D) the amount of anticipated expenses of the Trust for the 90 days subsequent to such Valuation Date; (E)&nbsp;the amount of the Trust&#146;s Maximum Potential <FONT
STYLE="white-space:nowrap">Gross-up</FONT> Dividend Liability in respect of shares of APS (and similar amounts payable in respect of other Preferred Shares) as of such </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Valuation Date; and (F)&nbsp;any current liabilities as of such Valuation Date to the extent not reflected in any
of (i)(A) through (i)(E) (including, without limitation, any payables for Municipal Obligations purchased as of such Valuation Date and any liabilities incurred for the purpose of clearing securities transactions) less (ii)&nbsp;the value (i.e., the
face value of cash, short-term Municipal Obligations rated <FONT STYLE="white-space:nowrap">MIG-1,</FONT> <FONT STYLE="white-space:nowrap">VMIG-1</FONT> or <FONT STYLE="white-space:nowrap">P-1,</FONT> and short-term securities that are the direct
obligation of the U.S. government, provided in each case that such securities mature on or prior to the date upon which any of (i)(A) through (i)(F) become payable, otherwise the Moody&#146;s Discounted Value) of any of the Trust&#146;s assets
irrevocably deposited by the Trust for the payment of any of (i)(A) through (i)(F). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;APS Basic Maintenance Cure Date,&#148; with
respect to the failure by the Trust to satisfy the APS Basic Maintenance Amount (as required by Section&nbsp;11.7(a) of these <FONT STYLE="white-space:nowrap">By-Laws)</FONT> as of a given Valuation Date, means the tenth Business Day following such
Valuation Date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;APS Basic Maintenance Report&#148; means a report signed by any of the President, Treasurer, any Senior Vice
President or any Vice President of the Trust which sets forth, as of the related Valuation Date, the assets of the Trust, the Market Value and the Discounted Value thereof (seriatim and in aggregate), and the APS Basic Maintenance Amount. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Applicable Percentage&#148; has the meaning set forth in Section&nbsp;11.10(a)(vii) of these By-Laws. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Applicable Rate&#148; means the rate per annum at which cash dividends are payable on the APS for any Dividend Period. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Auction&#148; means a periodic operation of the Auction Procedures. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Auction Agent&#148; means Bankers Trust Company unless and until another commercial bank, trust company or other financial institution
appointed by a resolution of the Board of Trustees of the Trust or a duly authorized committee thereof enters into an agreement with the Trust to follow the Auction Procedures for the purpose of determining the Applicable Rate and to act as transfer
agent, registrar, dividend disbursing agent and redemption agent for the APS. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Auction Procedures&#148; means the procedures for
conducting Auctions set forth in Section&nbsp;11.10 of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Beneficial
Owner&#148; means a customer of a Broker-Dealer who is listed on the records of that Broker-Dealer (or, if applicable, the Auction Agent) as a holder of APS or a Broker-Dealer that holds APS for its own account. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Broker-Dealer&#148; means any broker-dealer, or other entity permitted by law to perform the functions required of a Broker-Dealer
pursuant to Section&nbsp;11.10 of these <FONT STYLE="white-space:nowrap">By-Laws,</FONT> that has been selected by the Trust and has entered into a Broker-Dealer Agreement with the Auction Agent that remains effective. </P>
 <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">-15- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Broker-Dealer Agreement&#148; means an agreement between the Auction Agent and a
Broker-Dealer pursuant to which such Broker-Dealer agrees to follow the procedures specified in Section&nbsp;11.10 of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Business Day&#148; means a day on which the New York Stock Exchange is open for trading and which is not a Saturday, Sunday or other day
on which banks in New York City are authorized or obligated by law to close. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Closing Transactions&#148; has the meaning set forth
in Section&nbsp;11.8(a) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Code&#148; means the Internal Revenue Code of
1986, as amended. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Commercial Paper Dealers&#148; means UBS Warburg LLC and such other commercial paper dealer or dealers as the
Trust may from time to time appoint or, in lieu thereof, their respective affiliates or successors. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Common Shares&#148; means the
shares of beneficial interest designated as common shares, no par value, of the Trust. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Date of Original Issue&#148; means, with
respect to any share of APS, the date on which the Trust first issues such share. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Declaration of Trust&#148; means the Agreement
and Declaration of Trust of the Trust dated May&nbsp;9, 2001, as from time to time amended and supplemented. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Deposit
Securities&#148; means cash and Municipal Obligations rated at least A2 (having a remaining maturity of 12 months or less), <FONT STYLE="white-space:nowrap">P-1,</FONT> <FONT STYLE="white-space:nowrap">VMIG-1</FONT> or
<FONT STYLE="white-space:nowrap">MIG-1</FONT> by Moody&#146;s or A (having a remaining maturity of 12 months or less), <FONT STYLE="white-space:nowrap">A-1+</FONT> or <FONT STYLE="white-space:nowrap">SP-1+</FONT> by S&amp;P. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Discount Factor&#148; means a Moody&#146;s Discount Factor. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Discounted Value&#148; of any asset of the Trust means, with respect to a Moody&#146;s Eligible Asset, the quotient of the Market Value
thereof divided by the applicable Moody&#146;s Discount Factor. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Dividend Payment Date,&#148; with respect to APS, has the meaning
set forth in Section&nbsp;11.2(b)(i) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Dividend Period&#148; means the
Initial Dividend Period, any <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period and any Special Dividend Period. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Eligible Assets&#148; means Moody&#146;s Eligible Assets. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Existing Holder&#148; means a Broker-Dealer, or any such other Person that may be permitted by the Trust, that is listed as the holder
of record of APS in the Share Books. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Federal Tax Rate Increase&#148; has the meaning set forth under the definition of
&#147;Moody&#146;s Volatility Factor&#148; below. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Forward Commitment&#148; has the meaning set forth in Section&nbsp;11.8(d) of
these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><FONT STYLE="white-space:nowrap">&#147;Gross-Up</FONT> Dividend&#148; has the
meaning set forth in Section&nbsp;11.2(e) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Holder&#148; means a Person
identified as a holder of record of APS in the Share Register. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Independent Accountant&#148; means a nationally recognized
accountant, or firm of accountants, that is, with respect to the Trust, an independent public accountant or firm of independent public accountants under the Securities Act of 1933, as amended. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Initial Dividend Payment Date&#148; means, with respect to a series of APS, the Initial Dividend Payment Date as determined by the Board
of Trustees of the Trust with respect to such series. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Initial Dividend Period&#148; has the meaning set forth in
Section&nbsp;11.2(c)(i) of these By-Laws. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Initial Dividend Rate&#148; means the rate per annum applicable to the Initial Dividend
Period for such series of APS. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Interest Equivalent&#148; means a yield on a <FONT STYLE="white-space:nowrap">360-day</FONT> basis
of a discount basis security which is equal to the yield on an equivalent interest-bearing security. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Issue Type Category&#148;
means, with respect to a Municipal Obligation acquired by the Trust, for purposes of calculating Moody&#146;s Eligible Assets as of any Valuation Date, one of the following categories into which such Municipal Obligation falls based upon a good
faith determination by the Trust: health care issues (including issues related to teaching and <FONT STYLE="white-space:nowrap">non-teaching</FONT> hospitals, public or private, and elder-care facilities, including nursing homes); housing issues
(including issues related to single- and multi-family housing projects); educational facilities issues (including issues related to public and private schools); student loan issues; resource recovery issues; transportation issues (including issues
related to mass transit, airports and highways); industrial development bond issues (including issues related to pollution control facilities); utility issues (including issues related to the provision of gas, water, sewers and electricity); general
obligation issues; lease obligations (including certificates of participation); escrowed bonds; issues backed by tobacco settlement funds; and other issues (&#147;Other Issues&#148;) not falling within one of the aforementioned categories. The
general obligation issue category includes any issue that is directly or indirectly guaranteed by any state or any political subdivision of a state. Utility issues are included in the general obligation issue category if the issue is directly or
indirectly guaranteed by a state or any political subdivision of a state. Municipal Obligations in the utility issue category will be classified within one of the three following <FONT STYLE="white-space:nowrap">sub-categories:</FONT>
(i)&nbsp;electric, gas and combination issues (if the combination issue includes an electric issue); (ii) water and sewer utilities and combination issues (if the </P>
 <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">-17- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">combination issues does not include an electric issue); and (iii)&nbsp;irrigation, resource recovery, solid waste
and other utilities. Municipal Obligations in the transportation issue category will be classified within one of the two following <FONT STYLE="white-space:nowrap">sub-categories:</FONT> (i)&nbsp;streets and highways, toll roads, bridges and
tunnels, airports and multi-purpose port authorities (multiple revenue streams generated by toll roads, airports, real estate, bridges); (ii) mass transit, parking seaports and others. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Long Term Dividend Period&#148; means a Special Dividend Period consisting of a specified period of one whole year or more but not
greater than five years. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Liens&#148; shall have the meaning set forth in the definition of &#147;Moody&#146;s Eligible Asset&#148;
below. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Mandatory Redemption Price&#148; means $25,000 per share of APS plus an amount equal to accumulated but unpaid dividends
(whether or not earned or declared) to the date fixed for redemption, but excluding <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Marginal Tax Rate&#148; means the maximum marginal regular Federal individual income tax rate applicable to an individual&#146;s or a
corporation&#146;s ordinary income, whichever is greater. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Market Value&#148; of any asset of the Trust shall be the market value
thereof determined by the Pricing Service. Market Value of any asset shall include any interest accrued thereon. The Pricing Service shall value portfolio securities at the quoted bid prices or the mean between the quoted bid and asked price or the
yield equivalent when quotations are not readily available. Securities for which quotations are not readily available shall be valued at fair value as determined by the Pricing Service using methods which include consideration of: yields or prices
of municipal obligations of comparable quality, type of issue, coupon, maturity and rating; indications as to value from dealers; and general market conditions. The Pricing Service may employ electronic data processing techniques and/or a matrix
system to determine valuations. In the event the Pricing Service is unable to value a security, the security shall be valued at the lower of two dealer bids obtained by the Trust from dealers who are members of the National Association of Securities
Dealers, Inc. and who make a market in the security, at least one of which shall be in writing. Futures contracts and options are valued at closing prices for such instruments established by the exchange or board of trade on which they are traded,
or if market quotations are not readily available, are valued at fair value on a consistent basis using methods determined in good faith by the Board of Trustees. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Maximum Applicable Rate,&#148; with respect to APS, has the meaning set forth in Section&nbsp;11.10(a)(vii) of these <FONT
STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Maximum Potential <FONT STYLE="white-space:nowrap">Gross-Up</FONT> Dividend
Liability&#148; means, as of any Valuation Date, the aggregate amount of <FONT STYLE="white-space:nowrap">Gross-Up</FONT> Dividends that would be due if the Trust were to make Retroactive Taxable Allocations, with respect to any fiscal year,
estimated based upon dividends paid and the amount of undistributed realized net capital gains and other taxable income earned by the Trust, as of the end of the calendar month immediately preceding such Valuation Date and assuming such <FONT
STYLE="white-space:nowrap">Gross-Up</FONT> Dividends are fully taxable. </P>
 <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">-18- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Moody&#146;s&#148; means Moody&#146;s Investors Service, Inc. or its successors. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Moody&#146;s Discount Factor&#148; shall mean, for purposes of determining the Discounted Value of any Moody&#146;s Eligible Asset, the
percentage determined by reference to the rating on such asset and the shortest Exposure Period set forth opposite such rating that is the same length as or is longer than the Moody&#146;s Exposure Period, in accordance with the table set forth
below: </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 WIDTH="60%"></TD>

<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; ">Exposure Period</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Aaa*</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Aa*</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">A*</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Baa*</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Other**</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><FONT STYLE="white-space:nowrap">(V)MIG-1***</FONT></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><FONT STYLE="white-space:nowrap">SP-1+****</FONT></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Unrated*****</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">7 weeks</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">151</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">159</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">166</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">173</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">187</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">136</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">148</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">225</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">8 weeks or less but greater than seven weeks.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">154</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">161</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">168</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">176</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">190</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">137</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">149</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">231</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">9 weeks or less but greater than eight weeks</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">158</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">163</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">170</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">177</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">192</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">138</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">150</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">240</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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="5%" VALIGN="top" ALIGN="left">*</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Moody&#146;s rating. </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="5%" VALIGN="top" ALIGN="left">**</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Municipal Obligations not rated by Moody&#146;s but rated BBB by S&amp;P. </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="5%" VALIGN="top" ALIGN="left">***</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Municipal Obligations rated <FONT STYLE="white-space:nowrap">MIG-1</FONT> or
<FONT STYLE="white-space:nowrap">VMIG-1,</FONT> which do not mature or have a demand feature at par exercisable in 30 days and which do not have a long-term rating. </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="5%" VALIGN="top" ALIGN="left">****</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Municipal Obligations not rated by Moody&#146;s but rated <FONT STYLE="white-space:nowrap">SP-1+</FONT> by
S&amp;P, which do not mature or have a demand feature at par exercisable in 30 days and which do not have a long-term rating. </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="5%" VALIGN="top" ALIGN="left">*****</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Municipal Obligations rated less than Baa3 or not rated by Moody&#146;s and less than BBB or not rated by
S&amp;P, not to exceed 10% of Moody&#146;s Eligible Assets. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing, (i)&nbsp;except as provided in clause
(ii)&nbsp;below, the Moody&#146;s Discount Factor for short-term Municipal Obligations will be 115%, so long as such Municipal Obligations are rated at least <FONT STYLE="white-space:nowrap">MIG-1,</FONT>
<FONT STYLE="white-space:nowrap">VMIG-l</FONT> or <FONT STYLE="white-space:nowrap">P-1</FONT> by Moody&#146;s and mature or have a demand feature at par exercisable in 30 days or less, or 125%, as long as such Municipal Obligations are rated at
least <FONT STYLE="white-space:nowrap">A-1+/AA</FONT> or <FONT STYLE="white-space:nowrap">SP-1+/AA</FONT> by S&amp;P and mature or have a demand feature at par exercisable in 30 days or less, (ii)&nbsp;the Moody&#146;s Discount Factor for residual
interest municipal bonds and structured notes shall be the product of (x)&nbsp;the percentage determined by reference to the rating on the security underlying such residual interest municipal bond multiplied by (y) 1.25 (provided that the trust in
which such residual interest municipal bond is held may be terminated within five business days), and (iii)&nbsp;except as provided in clause (ii)&nbsp;above, no Moody&#146;s Discount Factor will be applied to cash, Receivables for Municipal
Obligations Sold, or futures, options and similar instruments (to the extent such securities are Moody&#146;s Eligible Assets); provided, however, that for purposes of determining the Moody&#146;s Discount Factor applicable to a Municipal
Obligation, any Municipal Obligation (excluding any short-term Municipal Obligation) not rated by Moody&#146;s but rated by S&amp;P shall be deemed to have a Moody&#146;s rating which is one full rating category lower than its S&amp;P rating. </P>
 <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">-19- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Moody&#146;s Eligible Asset&#148; shall mean cash, Receivables for Municipal Obligations
Sold, futures and options (to the extent entered into in Moody&#146;s Hedging Transactions) and similar instruments (including residual interest municipal bonds (provided that the trust in which such residual interest municipal bond is held may be
terminated within five business days) and structured notes), or a Municipal Obligation that (i)&nbsp;pays interest in cash, (ii)&nbsp;does not have its Moody&#146;s rating, as applicable, suspended by Moody&#146;s, and (iii)&nbsp;is part of an issue
of Municipal Obligations of at least $5,000,000, except that the minimum issue size is $10,000,000 for Municipal Obligations rated below A by Moody&#146;s and Municipal Obligations within the healthcare Issuer Type Category and, in the case of
residual interests municipal bonds, the minimum issue size of the Municipal Obligation underlying the residual interest municipal bond is $10,000,000. For purposes of the foregoing, an &#147;issue&#148; of a residual interest municipal bond shall be
interpreted to refer to all similar securities issued by the trust in which the residual interest municipal bond is held and not only to the particular securities issued to the Trust. Except for general obligation bonds, Municipal Obligations issued
by any one issuer and rated BBB or lower or not rated by S&amp;P and rated Ba or B or not rated by Moody&#146;s (&#147;Other Securities&#148;) may comprise no more than 4% of total Moody&#146;s Eligible Assets; such Other Securities, if any,
together with any Municipal Obligations issued by the same issuer and rated Baa by Moody&#146;s or A by S&amp;P, may comprise no more than 6% of total Moody&#146;s Eligible Assets; such Other Securities, Baa and
<FONT STYLE="white-space:nowrap">A-rated</FONT> Municipal Obligations, if any, together with any Municipal Obligations issued by the same issuer and rated A by Moody&#146;s or AA by S&amp;P, may comprise no more than 10% of total Moody&#146;s
Eligible Assets; and such Other Securities, Baa, A and <FONT STYLE="white-space:nowrap">AA-rated</FONT> Municipal Obligations, if any, together with any Municipal Obligations issued by the same issuer and rated Aa by Moody&#146;s or AAA by S&amp;P,
may comprise no more than 20% of total Moody&#146;s Eligible Assets. For purposes of the foregoing sentence, any Municipal Obligation backed by the guaranty, letter of credit or insurance issued by a third party shall be deemed to be issued by such
third party if the issuance of such third party credit is the sole determinant of the rating on such Municipal Obligation. Other Securities falling within a particular Issue Type Category may comprise no more than 12% of total Moody&#146;s Eligible
Assets; such Other Securities, if any, together with any Municipal Obligations falling within a particular Issue Type Category and rated Baa by Moody&#146;s or A by S&amp;P, may comprise no more than 20% of total Moody&#146;s Eligible Assets; such
Other Securities, Baa and <FONT STYLE="white-space:nowrap">A-rated</FONT> Municipal Obligations, if any, together with any Municipal Obligations falling within a particular Issue Type Category and rated A by Moody&#146;s or AA by S&amp;P, may
comprise no more than 40% of total Moody&#146;s Eligible Assets; and such Other Securities, Baa, A and <FONT STYLE="white-space:nowrap">AA-rated</FONT> Municipal Obligations, if any, together with any Municipal Obligations falling within a
particular Issue Type Category and rated Aa by Moody&#146;s or AAA by S&amp;P, may comprise no more than 60% of total Moody&#146;s Eligible Assets. For purposes of this definition, a Municipal Obligation shall be deemed to be rated BBB by S&amp;P if
rated <FONT STYLE="white-space:nowrap">BBB-,</FONT> BBB or BBB+ by S&amp;P. Notwithstanding any other provision of this definition, in no event may (i)&nbsp;student loan Municipal Obligations comprise more than 10% of Moody&#146;s Eligible Assets;
(ii)&nbsp;resource recovery Municipal </P>
 <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">-20- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Obligations comprise more than 10% of Moody&#146;s Eligible Assets; and (iii)&nbsp;Other Issues comprise more
than 10% of Moody&#146;s Eligible Assets. For purposes of applying the foregoing requirements, Municipal Obligations rated <FONT STYLE="white-space:nowrap">MIG-1,</FONT> <FONT STYLE="white-space:nowrap">VMIG-1</FONT> or <FONT
STYLE="white-space:nowrap">P-1</FONT> or, if not rated by Moody&#146;s, rated <FONT STYLE="white-space:nowrap">A-1+/AA</FONT> or <FONT STYLE="white-space:nowrap">SP-1+/AA</FONT> by S&amp;P, shall be considered to have a long-term rating of A. When
the Trust sells a Municipal Obligation and agrees to repurchase such Municipal Obligation at a future date, such Municipal Obligation shall be valued at its Discounted Value for purposes of determining Moody&#146;s Eligible Assets, and the amount of
the repurchase price of such Municipal Obligation shall be included as a liability for purposes of calculating the APS Basic Maintenance Amount. When the Trust purchases a Moody&#146;s Eligible Asset and agrees to sell it at a future date, such
Eligible Asset shall be valued at the amount of cash to be received by the Trust upon such future date, provided that the counterparty to the transaction has a long-term debt rating of at least A2 from Moody&#146;s and the transaction has a term of
no more than 30 days, otherwise such Eligible Asset shall be valued at the Discounted Value of such Eligible Asset. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding the
foregoing, an asset will not be considered a Moody&#146;s Eligible Asset to the extent it is (i)&nbsp;subject to any material lien, mortgage, pledge, security interest or security agreement of any kind (collectively, &#147;Liens&#148;), except for
(a)&nbsp;Liens which are being contested in good faith by appropriate proceedings and which Moody&#146;s has indicated to the Trust will not affect the status of such asset as a Moody&#146;s Eligible Asset, (b)&nbsp;Liens for taxes that are not then
due and payable or that can be paid thereafter without penalty, (c)&nbsp;Liens to secure payment for services rendered or cash advanced to the Trust by PIMCO Advisors, PIMCO or their affiliates, State Street Bank and Trust Company or the Auction
Agent and (d)&nbsp;Liens by virtue of any repurchase agreement; (ii)&nbsp;deposited irrevocably for the payment of any liabilities for purposes of determining the APS Basic Maintenance Amount; or (iii)&nbsp;held in a margin account. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Moody&#146;s Exposure Period&#148; means the period commencing on a given Valuation Date and ending 49 days thereafter. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Moody&#146;s Hedging Transactions&#148; has the meaning set forth in Section&nbsp;11.8(a) of these
<FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Moody&#146;s Volatility Factor&#148; means as of any Valuation Date, (i)&nbsp;in
the case of any <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period, any Special Dividend Period of 28 days or fewer, or any Special Dividend Period of 57 days or more, a multiplicative factor equal to 275% , except as otherwise provided
in the last sentence of this definition; (ii)&nbsp;in the case of any Special Dividend Period of more than 28 but fewer than 36 days, a multiplicative factor equal to 203%; (iii) in the case of any Special Dividend Period of more than 35 but fewer
than 43 days, a multiplicative factor equal to 217%; (iv) in the case of any Special Dividend Period of more than 42 but fewer than 50 days, a multiplicative factor equal to 226%; and (v)&nbsp;in the case of any Special Dividend Period of more than
49 but fewer than 57 days, a multiplicative factor equal to 235%. If, as a result of the enactment of changes to the Code, the Marginal Tax Rate will increase, such increase being rounded up to the next five percentage points (the &#147;Federal Tax
Rate Increase&#148;), until the effective date of such increase, the Moody&#146;s Volatility Factor in the case of any Dividend Period described in (i)&nbsp;above in this definition instead shall be determined by reference to the following table:
</P>
 <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">-21- </P>


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


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="68%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD WIDTH="89%"></TD>

<TD VALIGN="bottom" WIDTH="8%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; ">Federal Tax Rate Increase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Volatility<BR>Factor</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">5%</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">295</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">10%</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">317</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">15%</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">341</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">20%</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">369</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">25%</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">400</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">30%</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">436</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">35%</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">477</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">40%</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">525</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Municipal Obligations&#148; means municipal obligations, including municipal bonds and short-term
municipal obligations, the interest from which is exempt from federal income taxes. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Municipal Index&#148; means the Bond Buyer
Municipal Bond Index. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;1940 Act&#148; means the Investment Company Act of 1940, as amended from time to time. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;1940 Act APS Asset Coverage&#148; means asset coverage, as defined in section 18(h) of the 1940 Act, of at least 200% with respect to
all Outstanding senior securities of the Trust which are shares of beneficial interest, including APS and VMTP Shares (or such other asset coverage as may in the future be specified in or under the 1940 Act as the minimum asset coverage for senior
securities which are shares of beneficial interest of a <FONT STYLE="white-space:nowrap">closed-end</FONT> investment company as a condition of paying dividends on its common shares). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;1940 Act Cure Date,&#148; with respect to the failure by the Trust to maintain the 1940 Act APS Asset Coverage (as required by these <FONT
STYLE="white-space:nowrap">By-Laws)</FONT> as of the last Business Day of each month, means the last Business Day of the following month. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><FONT STYLE="white-space:nowrap">&#147;Non-Call</FONT> Period&#148; has the meaning set forth under the definition of &#147;Specific
Redemption Provisions.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><FONT STYLE="white-space:nowrap">&#147;Non-Payment</FONT> Period&#148; means a period commencing on and
including a Dividend Payment Date or redemption date for which the Trust shall fail to (i)&nbsp;declare, prior to the close of business on the second Business Day preceding such Dividend Payment Date, for payment on or (to the extent permitted by
Section&nbsp;11.2(c)(i) of these <FONT STYLE="white-space:nowrap">By-Laws)</FONT> within three Business Days after such Dividend Payment Date to the Holders as of 12:00 noon, New York City time, on the Business Day preceding such Dividend Payment
Date, the full amount of any dividend on APS payable on such Dividend Payment Date, or (ii)&nbsp;deposit, irrevocably in trust, in <FONT STYLE="white-space:nowrap">same-day</FONT> funds, with the Auction Agent by 12:00 noon, New York City time,
(A)&nbsp;on such Dividend Payment Date the full amount of any cash dividend on such shares payable (if declared) on such Dividend </P>
 <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">-22- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Payment Date or (B)&nbsp;on any such redemption date for any shares of APS called for redemption, the Mandatory Redemption Price per share of such APS or, in the case of an optional redemption,
the Optional Redemption Price per share, and ending on and including the Business Day on which, by 12:00 noon, New York City time, all unpaid cash dividends and unpaid redemption prices shall have been so deposited or shall have otherwise been made
available to Holders in <FONT STYLE="white-space:nowrap">same-day</FONT> funds; provided that, a <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period shall not end unless the Trust shall have given at least five days&#146; but no more than 30
days&#146; written notice of such deposit or availability to the Auction Agent, all Existing Holders (at their addresses appearing in the Share Books) and the Securities Depository. Notwithstanding the foregoing, the failure by the Trust to deposit
funds as provided for by clauses (ii)(A) or (ii)(B) above within three Business Days after any Dividend Payment Date or redemption date, as the case may be, in each case to the extent contemplated by Section&nbsp;11.2(c)(i) of these <FONT
STYLE="white-space:nowrap">By-Laws,</FONT> shall not constitute a <FONT STYLE="white-space:nowrap">&#147;Non-Payment</FONT> Period.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><FONT STYLE="white-space:nowrap">&#147;Non-Payment</FONT> Period Rate&#148; means, initially, 200% of the applicable Reference Rate (or 275%
of such rate if the Trust has provided notification to the Auction Agent prior to the Auction establishing the Applicable Rate for any dividend that net capital gains or other taxable income will be included in such dividend the APS), provided that
the Board of Trustees of the Trust shall have the authority to adjust, modify, alter or change from time to time the initial <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period Rate if the Board of Trustees of the Trust determines and
Moody&#146;s (and any Substitute Rating Agency in lieu of Moody&#146;s in the event Moody&#146;s shall not rate the APS) advise the Trust in writing that such adjustment, modification, alteration or change will not adversely affect its then current
ratings on the APS. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Normal Dividend Payment Date&#148; has the meaning set forth in Section&nbsp;11.2(b)(i) of these <FONT
STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Notice of Redemption&#148; means any notice with respect to the redemption of shares of
APS pursuant to Section&nbsp;11.4 of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Notice of Revocation&#148; has the
meaning set forth in Section&nbsp;11.2(c)(iii) of these By- Laws. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Notice of Special Dividend Period&#148; has the meaning set forth
in Section&nbsp;11.2(c)(iii) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Optional Redemption Price&#148; means
$25,000 per share plus an amount equal to accumulated but unpaid dividends (whether or not earned or declared) to the date fixed for redemption plus any applicable redemption premium attributable to the designation of a Premium Call Period, but
excluding <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Other Issues&#148; has the meaning set forth in the
definition of &#147;Issue Type Category.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Other Securities&#148; has the meaning set forth in the definition of
&#147;Moody&#146;s Eligible Asset.&#148; </P>
 <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">-23- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Outstanding&#148; means, as of any date (i)&nbsp;with respect to APS, shares of APS
therefor issued by the Trust except, without duplication, (A)&nbsp;any shares of APS theretofore canceled or delivered to the Auction Agent for cancellation, or redeemed by the Trust, or as to which a Notice of Redemption shall have been given and
Deposit Securities shall have been deposited in trust or segregated by the Trust pursuant to Section&nbsp;11.4(c) hereto and (B)&nbsp;any shares of APS as to which the Trust or any Affiliate (other than an Affiliate that is a Broker-Dealer) thereof
shall be a Beneficial Owner, provided that shares of APS held by an Affiliate shall be deemed outstanding for purposes of calculating the APS Basic Maintenance Amount and (ii)&nbsp;with respect to other Preferred Shares, has the equivalent meaning.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Parity Shares&#148; means the APS and each other outstanding series of Preferred Shares the holders of which, together with the
holders of the APS, shall be entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up, as the case may be, in proportion to the full respective preferential amounts to which they are entitled,
without preference or priority one over the other. For the avoidance of doubt, the RVMTP Shares and each series thereof are Parity Shares along with the APS for these purposes. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Person&#148; means and includes an individual, a partnership, a trust, an unincorporated association, a joint venture or other entity or
a government or any agency or political subdivision thereof. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Potential Beneficial Owner&#148; means a customer of a Broker-Dealer
or a Broker-Dealer that is not a Beneficial Owner of APS but that wishes to purchase such shares, or that is a Beneficial Owner that wishes to purchase additional APS. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Potential Holder&#148; means any Broker-Dealer or any such other Person as may be permitted by the Trust, including any Existing Holder,
who may be interested in acquiring APS (or, in the case of an Existing Holder, additional APS). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Preferred Shares&#148; means
preferred shares of beneficial interest of the Trust, and includes APS, the RVMTP Shares and any other shares of beneficial interest hereafter authorized and issued by the Trust of a class having priority over any other class as to distribution of
assets or payments of dividends. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Premium Call Period&#148; has the meaning set forth under the definition of &#147;Specific
Redemption Provisions.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Pricing Service&#148; means Standard&nbsp;&amp; Poor&#146;s/J.J. Kenny or any pricing service
designated by the Board of Trustees of the Trust for purposes of determining whether the Trust has Moody&#146;s Eligible Assets with an aggregate Discounted Value that equals or exceeds the APS Basic Maintenance Amount. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Quarterly Valuation Date&#148; means the last Business Day of the last month of each fiscal quarter of the Trust in each fiscal year of
the Trust, commencing October&nbsp;31, 2001. </P>
 <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">-24- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Rating Agency&#148; means a nationally recognized statistical rating organization. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Receivables for Municipal Obligations Sold&#148; has the meaning set forth under the definition of Moody&#146;s Discount Factor. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Reference Rate&#148; means: (i)&nbsp;with respect to a Dividend Period or a Short Term Dividend Period having 28 or fewer days, the
higher of the applicable &#147;AA&#148; Composite Commercial Paper Rate and the Taxable Equivalent of the Short-Term Municipal Obligation Rate, (ii)&nbsp;with respect to any Short Term Dividend Period having more than 28 but fewer than 183 days, the
applicable &#147;AA&#148; Composite Commercial Paper Rate, (iii)&nbsp;with respect to any Short Term Dividend Period having 183 or more but fewer than 364 days, the applicable U.S. Treasury Bill Rate and (iv)&nbsp;with respect to any Long Term
Dividend Period, the applicable U.S. Treasury Note Rate. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Request for Special Dividend Period&#148; has the meaning set forth in
Section&nbsp;11.2(c)(iii) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Response&#148; has the meaning set forth in
Section&nbsp;11.2(c)(ii) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Retroactive Taxable Allocation&#148; has the
meaning set forth in Section&nbsp;11.2(e) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Right&#148; has the meaning set
forth in Section&nbsp;11.2(e) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;RVMTP Shares&#148; shall mean Remarketable
Variable Rate MuniFund Term Preferred Shares, $0.00001 par value per share, liquidation preference $100,000 per share plus an amount equal to accumulated but unpaid dividends thereon (whether or not earned or declared), of the Trust. The
preferences, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption of each series of RVMTP Shares are set forth in the RVMTP Shares Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;RVMTP Shares Statement&#148; shall mean the Amended and Restated Statement Establishing and Fixing the Rights and Preferences of RVMTP
Shares, together with the appendices thereto, attached as Exhibit 1 to these Bylaws. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;S&amp;P&#148; means Standard&nbsp;&amp;
Poor&#146;s, a division of The McGraw-Hill Companies, Inc., or its successors. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Securities Depository&#148; means The Depository
Trust Company and its successors and assigns or any successor securities depository selected by the Trust as securities depository for the APS that agrees to follow the procedures required to be followed by such securities depository in connection
with the APS. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Service&#148; means the United States Internal Revenue Service. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Series A APS&#148; means the Auction Preferred Shares, Series A. </P>
 <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">-25- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Series B APS&#148; means the Auction Preferred Shares, Series B. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Series C APS&#148; means the Auction Preferred Shares, Series C. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><FONT STYLE="white-space:nowrap">&#147;7-Day</FONT> Dividend Period&#148; means a Dividend Period consisting of seven days. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Short Term Dividend Period&#148; means a Special Dividend Period consisting of a specified number of days, evenly divisible by seven and
not fewer than fourteen nor more than 364. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Special Dividend Period&#148; means a Short Term Dividend Period or a Long Term Dividend
Period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Specific Redemption Provisions&#148; means, with respect to a Special Dividend Period either, or both of, (i)&nbsp;a period
(a <FONT STYLE="white-space:nowrap">&#147;Non-Call</FONT> Period&#148;) determined by the Board of Trustees of the Trust, after consultation with the Auction Agent and the Broker-Dealers, during which the APS subject to such Dividend Period shall
not be subject to redemption at the option of the Trust and (ii)&nbsp;a period (a &#147;Premium Call Period&#148;), consisting of a number of whole years and determined by the Board of Trustees of the Trust, after consultation with the Auction Agent
and the Broker-Dealers, during each year of which the APS subject to such Dividend Period shall be redeemable at the Trust&#146;s option at a price per share equal to $25,000 plus accumulated but unpaid dividends plus a premium expressed as a
percentage of $25,000, as determined by the Board of Trustees of the Trust after consultation with the Auction Agent and the Broker-Dealers. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Share Books&#148; means the books maintained by the Auction Agent setting forth at all times a current list, as determined by the
Auction Agent, of Existing Holders of the APS. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Share Register&#148; means the register of Holders maintained on behalf of the Trust
by the Auction Agent in its capacity as transfer agent and registrar for the APS. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Subsequent Dividend Period&#148; has the meaning
set forth in Section&nbsp;11.2(c)(i) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Substitute Commercial Paper
Dealers&#148; means such substitute commercial paper dealer or dealers as the Trust may from time to time appoint or, in lieu of any thereof, their respective affiliates or successors. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Substitute Rating Agency&#148; means a Rating Agency selected by UBS Warburg LLC or its affiliates and successors, after consultation
with the Trust, to act as the substitute Rating Agency to determine the credit ratings of the APS. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Taxable Equivalent of the
Short-Term Municipal Obligations Rate&#148; on any date means 90% of the quotient of (A)&nbsp;the per annum rate expressed on an interest equivalent basis equal to the S&amp;P Municipal Bond 7 Day High Grade Rate Index or any successor index (the
&#147;S&amp;P 7 Day Index&#148;), made available for the Business Day immediately preceding such date but in any event not later than 8:30 A.M., New York City time, on such date by S&amp;P Dow Jones Indices or any </P>
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successor thereto, based upon evaluations at par of short-term bonds the interest on which is excludable for regular Federal income tax purposes under the Code of &#147;high grade&#148; component
issuers selected by S&amp;P Dow Jones Indices or any such successor from time to time in its discretion, which component issuers shall include, without limitation, issuers of general obligation bonds but shall exclude any bonds the interest on which
constitutes an item of tax preference for purposes of the federal alternative minimum tax for individuals, divided by (B) 1.00 minus the Marginal Tax Rate (expressed as a decimal); provided, however, that if the S&amp;P 7 Day Index is not made so
available by 8:30 A.M., New York City time, on such date by S&amp;P Dow Jones Indices or any successor, the Taxable Equivalent of the Short-Term Municipal Obligation Rate shall mean the quotient of (A)&nbsp;the per annum rate expressed on an
interest equivalent basis equal to the most recent S&amp;P 7 Day Index so made available for any preceding Business Day, divided by (B) 1.00 minus the Marginal Tax Rate (expressed as a decimal). The Trust may not utilize a successor index to the
S&amp;P 7 Day Index unless Moody&#146;s provides the Trust with written confirmation that the use of such successor index will not adversely affect the then-current Moody&#146;s rating of the APS. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Treasury Bonds&#148; means United States Treasury Bonds or Notes. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;U.S. Treasury Bill Rate&#148; on any date means (i)&nbsp;the Interest Equivalent of the rate on the actively traded Treasury Bill with a
maturity most nearly comparable to the length of the related Dividend Period, as such rate is made available on a discount basis or otherwise by the Federal Reserve Bank of New York in its Composite 3:30 P.M. Quotations for U.S. Government
Securities report for such Business Day, or (ii)&nbsp;if such yield as so calculated is not available, the Alternate Treasury Bill Rate on such date. For purposes of determining the &#147;U.S. Treasury Bill Rate&#148; the &#147;Alternate Treasury
Bill Rate&#148; on any date means the Interest Equivalent of the yield as calculated by reference to the arithmetic average of the bid price quotations of the actively traded Treasury Bill with a maturity most nearly comparable to the length of the
related Dividend Period, as determined by bid price quotations as of any time on the Business Day immediately preceding such date, obtained from at least three recognized primary U.S. Government securities dealers selected by the Auction Agent. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;U.S. Treasury Note Rate&#148; on any date means (i)&nbsp;the yield as calculated by reference to the bid price quotation of the actively
traded, current coupon Treasury Note with a maturity most nearly comparable to the length of the related Dividend Period, as such bid price quotation is published on the Business Day immediately preceding such date by the Federal Reserve Bank of New
York in its Composite 3:30 P.M. Quotations for U.S. Government Securities report for such Business Day, or (ii)&nbsp;if such yield as so calculated is not available, the Alternate Treasury Note Rate on such date. For purposes of determining the U.S.
Treasury Note Rate, the &#147;Alternate Treasury Note Rate&#148; on any date means the yield as calculated by reference to the arithmetic average of the bid price quotations of the actively traded, current coupon Treasury Note with a maturity most
nearly comparable to the length of the related Dividend Period, as determined by the bid price quotations as of any time on the Business Day immediately preceding such date, obtained from at least three recognized primary U.S. Government securities
dealers selected by the Auction Agent. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Valuation Date&#148; means, for purposes of determining whether the Trust is maintaining
the Preferred Shares Basic Maintenance Amount, the last Business Day of each week commencing with the Date of Original Issue. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Voting Period&#148; has the meaning set forth in Section&nbsp;11.5(b) of these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) The foregoing definitions of Accountant&#146;s Confirmation, APS Basic Maintenance Amount, APS Basic Maintenance Cure Date, APS Basic
Maintenance Report, Closing Transactions, Deposit Securities, Discounted Value, Forward Commitment, Independent Accountant, Market Value, Maximum Potential <FONT STYLE="white-space:nowrap">Gross-Up</FONT> Dividend Liability, Moody&#146;s Discount
Factor, Moody&#146;s Eligible Asset, Moody&#146;s Exposure Period, Moody&#146;s Hedging Transactions, Moody&#146;s Volatility Factor, Municipal Index, Treasury Bonds and Valuation Date have been determined by the Board of Trustees of the Trust in
order to obtain a &#147;Aaa&#148; rating from Moody&#146;s on the APS on their Date of Original Issue; and the Board of Trustees of the Trust shall have the authority, without shareholder approval, to amend, alter or repeal from time to time the
foregoing definitions and the restrictions and guidelines set forth thereunder if Moody&#146;s or any Substitute Rating Agency advises the Trust in writing that such amendment, alteration or repeal will not adversely affect its then current rating
on the APS. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.2 <U>Dividends</U>. (a)&nbsp;The Holders of a particular series of APS shall be entitled to receive, when, as and if
declared by the Board of Trustees of the Trust, out of funds legally available therefor, cumulative dividends each consisting of (i)&nbsp;cash at the Applicable Rate, (ii)&nbsp;a Right to receive cash as set forth in Section&nbsp;11.2(e) below, and
(iii)&nbsp;any additional amounts as set forth in Section&nbsp;11.2(f) below, and no more, payable on the respective dates set forth below. Dividends on the shares of each series of APS so declared and payable shall be paid (i)&nbsp;in preference to
and in priority over any dividends declared and payable on the Common Shares, and (ii)&nbsp;to the extent permitted under the Code and to the extent available, out of net <FONT STYLE="white-space:nowrap">tax-exempt</FONT> income earned on the
Trust&#146;s investments. To the extent permitted under the Code, dividends on APS will be designated as exempt-interest dividends. For the purposes of this section, the term &#147;net <FONT STYLE="white-space:nowrap">tax-exempt</FONT> income&#148;
shall exclude capital gains of the Trust. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) (i) Cash dividends on shares of each series of APS shall accumulate from the Date of
Original Issue and shall be payable, when, as and if declared by the Board of Trustees, out of funds legally available therefor, commencing on the Initial Dividend Payment Date. Following the Initial Dividend Payment Date for a series of APS,
dividends on that series of APS will be payable, at the option of the Trust, either (i)&nbsp;with respect to any <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period and any Short Term Dividend Period of 35 or fewer days, on the day next
succeeding the last day thereof, or (ii)&nbsp;with respect to any Short Term Dividend Period of more than 35 days and with respect to any Long Term Dividend Period, monthly on the first Business Day of each calendar month during such Short Term
Dividend Period or Long Term Dividend Period and on the day next succeeding the last day thereof (each such date referred to in clause (i)&nbsp;or (ii) being herein referred to as a &#147;Normal Dividend Payment Date&#148;), except that if such
Normal Dividend Payment Date is not a Business Day, then the Dividend Payment Date shall be the first Business Day next succeeding such Normal Dividend Payment Date. Although any particular Dividend </P>
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Payment Date may not occur on the originally scheduled date because of the exceptions discussed above, the next succeeding Dividend Payment Date, subject to such exceptions, will occur on the
next following originally scheduled date. If for any reason a Dividend Period for a Series of APS is scheduled to begin on the same day and end on the same day as a Dividend Period for another Series of APS, then the last day of such Dividend Period
for such other Series of APS shall be the second Business Day next succeeding such scheduled day unless the Trust obtains the opinion of tax counsel referred to in this paragraph. Subject to the limitation in the next sentence, if for any reason a
Dividend Payment Date cannot be fixed as described above, then the Board of Trustees shall fix the Dividend Payment Date. However, Dividend Periods of any series of APS shall not be <FONT STYLE="white-space:nowrap">co-extensive</FONT> with the
Dividend Period of any other series of APS unless the Trust has received an opinion of tax counsel that having such <FONT STYLE="white-space:nowrap">co-extensive</FONT> periods will not affect the deductibility, for federal income tax purposes, of
dividends paid on the different series of APS. The Board of Trustees before authorizing a dividend may change a Dividend Payment Date if such change does not adversely affect the contract rights of the Holders of APS set forth in the Declaration of
Trust or the <FONT STYLE="white-space:nowrap">By-Laws.</FONT> The Initial Dividend Period, <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Periods and Special Dividend Periods with respect to a series of APS are hereinafter sometimes referred
to as &#147;Dividend Periods.&#148; Each dividend payment date determined as provided above is hereinafter referred to as a &#147;Dividend Payment Date.&#148; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) Each dividend shall be paid to the Holders as they appear in the Stock Register as of 12:00 noon, New York City time, on the Business Day
preceding the Dividend Payment Date. Dividends in arrears for any past Dividend Period may be declared and paid at any time, without reference to any regular Dividend Payment Date, to the Holders as they appear on the Stock Register on a date, not
exceeding 15 days prior to the payment date therefor, as may be fixed by the Board of Trustees of the Trust. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) (i) During the period
from and including the Date of Original Issue to but excluding the Initial Dividend Payment Date for a series of APS (the &#147;Initial Dividend Period&#148;), the Applicable Rate for such series of APS shall be the Initial Dividend Rate. Commencing
on the Initial Dividend Payment Date for a series of APS, the Applicable Rate on that series for each subsequent dividend period (hereinafter referred to as a &#147;Subsequent Dividend Period&#148;), which Subsequent Dividend Period shall commence
on and include a Dividend Payment Date and shall end on and include the calendar day prior to the next Dividend Payment Date (or last Dividend Payment Date in a Dividend Period if there is more than one Dividend Payment Date), shall be equal to the
rate per annum that results from implementation of the Auction Procedures. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For a series of APS, the Applicable Rate for such series for
each Dividend Period commencing during a <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period shall be equal to the <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period Rate; and each Dividend Period, commencing after the first day of,
and during, a <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period shall be a <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period. Except in the case of the willful failure of the Trust to pay a dividend on a Dividend Payment Date or
to redeem any shares of APS on the date set for such redemption, any amount of any dividend due on any Dividend Payment Date (if, prior to the close of business on the second Business Day preceding such Dividend Payment Date, the Trust has declared
such dividend payable on such Dividend Payment Date to the Holders of such </P>
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shares of APS as of 12:00 noon, New York City time, on the Business Day preceding such Dividend Payment Date) or redemption price with respect to any shares of APS not paid to such Holders when
due may be paid to such Holders in the same form of funds by 12:00 noon, New York City time, on any of the first three Business Days after such Dividend Payment Date or due date, as the case may be, provided that, such amount is accompanied by a
late charge calculated for such period of <FONT STYLE="white-space:nowrap">non-payment</FONT> at the <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period Rate applied to the amount of such <FONT STYLE="white-space:nowrap">non-payment</FONT>
based on the actual number of days comprising such period divided by 365, and in such case such period shall not constitute a <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period. In the case of a willful failure of the Trust to pay a dividend
on a Dividend Payment Date or to redeem any shares of APS on the date set for such redemption, the preceding sentence shall not apply and the Applicable Rate for the Dividend Period commencing during the
<FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period resulting from such failure shall be the <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period Rate. For the purposes of the foregoing, payment to a person in <FONT
STYLE="white-space:nowrap">same-day</FONT> funds on any Business Day at any time shall be considered equivalent to payment to such person in New York Clearing House <FONT STYLE="white-space:nowrap">(next-day)</FONT> funds at the same time on the
preceding Business Day, and any payment made after 12:00 noon, New York City time, on any Business Day shall be considered to have been made instead in the same form of funds and to the same person before 12:00 noon, New York City time, on the next
Business Day. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) The amount of cash dividends per share of any series of APS payable (if declared) on the Initial Dividend Payment Date,
each <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period and each Dividend Payment Date of each Short Term Dividend Period shall be computed by multiplying the Applicable Rate for such Dividend Period by a fraction, the numerator of which
will be the number of days in such Dividend Period or part thereof that such share was outstanding and the denominator of which will be 365, multiplying the amount so obtained by $25,000, and rounding the amount so obtained to the nearest cent.
During any Long Term Dividend Period, the amount of cash dividends per share of a series of APS payable (if declared) on any Dividend Payment Date shall be computed by multiplying the Applicable Rate for such Dividend Period by a fraction, the
numerator of which will be such number of days in such part of such Dividend Period that such share was outstanding and for which dividends are payable on such Dividend Payment Date and the denominator of which will be 360, multiplying the amount so
obtained by $25,000, and rounding the amount so obtained to the nearest cent. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) The Trust may, at its sole option and to the extent
permitted by law, by telephonic and written notice (a &#147;Request for Special Dividend Period&#148;) to the Auction Agent and to each Broker-Dealer, request that the next succeeding Dividend Period for a series of APS be a number of days (other
than seven), evenly divisible by seven and not fewer than fourteen nor more than 364 in the case of a Short Term Dividend Period or one whole year or more but not greater than five years in the case of a Long Term Dividend Period, specified in such
notice, provided that the Trust may not give a Request for Special Dividend Period for a Dividend Period of greater than 28 days (and any such request shall be null and void) unless, for any Auction occurring after the initial Auction, Sufficient
Clearing Bids were made in the last occurring Auction and unless full cumulative dividends, any amounts due with respect to redemptions, and any <FONT STYLE="white-space:nowrap">Gross-Up</FONT> Dividends payable prior to such date have been paid in
full. Such Request for Special Dividend Period, in the case of a Short Term Dividend Period, shall be given on or prior to the second </P>
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Business Day but not more than seven Business Days prior to an Auction Date for a series of APS and, in the case of a Long Term Dividend Period, shall be given on or prior to the second Business
Day but not more than 28 days prior to an Auction Date for a series of APS. Upon receiving such Request for Special Dividend Period, the Broker-Dealer(s) shall jointly determine the Optional Redemption Price of the APS during such Special Dividend
Period and the Specific Redemption Provisions and shall give the Trust and the Auction Agent written notice (a &#147;Response&#148;) of such determination by no later than the second Business Day prior to such Auction Date. In making such
determination the Broker-Dealer(s) will consider (1)&nbsp;existing short-term and long-term market rates and indices of such short-term and long-term rates, (2)&nbsp;existing market supply and demand for short-term and long-term securities,
(3)&nbsp;existing yield curves for short-term and long-term securities comparable to the APS, (4)&nbsp;industry and financial conditions which may affect the APS, (5)&nbsp;the investment objective of the Trust, and (6)&nbsp;the Dividend Periods and
dividend rates at which current and potential beneficial holders of the APS would remain or become beneficial holders. After providing the Request for Special Dividend Period to the Auction Agent and each Broker-Dealer as set forth above, the Trust
may by no later than the second Business Day prior to such Auction Date give a notice (a &#147;Notice of Special Dividend Period&#148;) to the Auction Agent, the Securities Depository and each Broker-Dealer which notice will specify (i)&nbsp;the
duration of the Special Dividend Period, (ii)&nbsp;the Optional Redemption Price as specified in the related Response and (iii)&nbsp;the Specific Redemption Provisions, if any, as specified in the related Response. The Trust also shall provide a
copy of such Notice of Special Dividend Period to Moody&#146;s. The Trust shall not give a Notice of Special Dividend Period and, if the Trust has given a Notice of Special Dividend Period, the Trust is required to give telephonic and written notice
of its revocation (a &#147;Notice of Revocation&#148;) to the Auction Agent, each Broker-Dealer, and the Securities Depository on or prior to the Business Day prior to the relevant Auction Date if (x)&nbsp;either the 1940 Act APS Asset Coverage is
not satisfied or the Trust shall fail to maintain Moody&#146;s Eligible Assets with an aggregate Discounted Value at least equal to the APS Basic Maintenance Amount, on each of the two Valuation Dates immediately preceding the Business Day prior to
the relevant Auction Date on an actual basis and on a pro forma basis giving effect to the proposed Special Dividend Period (using as a pro forma dividend rate with respect to such Special Dividend Period the dividend rate which the Broker-Dealers
shall advise the Trust is an approximately equal rate for securities similar to the APS with an equal dividend period) or (y)&nbsp;sufficient funds for the payment of dividends payable on the immediately succeeding Dividend Payment Date have not
been irrevocably deposited with the Auction Agent by the close of business on the third Business Day preceding the Auction Date immediately preceding such Dividend Payment Date. The Trust also shall provide a copy of such Notice of Revocation to
Moody&#146;s. If the Trust is prohibited from giving a Notice of Special Dividend Period as a result of any of the factors enumerated in clause (x)&nbsp;or (y) above or if the Trust gives a Notice of Revocation with respect to a Notice of Special
Dividend Period for any series of APS, the next succeeding Dividend Period will be a <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period. In addition, in the event Sufficient Clearing Bids are not made in an Auction, or if an Auction is
not held for any reason, such next succeeding Dividend Period will be a <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period and the Trust may not again give a Notice of Special Dividend Period for the APS (and any such attempted notice
shall be null and void) until Sufficient Clearing Bids have been made in an Auction with respect to a <FONT STYLE="white-space:nowrap">7-Day</FONT> Dividend Period. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) (i) Holders shall not be entitled to any dividends, whether payable in cash, property or
shares on APS, in excess of full cumulative dividends as herein provided (except for <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends as provided in Section&nbsp;11.2(e) hereof). Except for the late charge payable pursuant to
Section&nbsp;11.2(c)(i) hereof, no interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment on the shares of APS that may be in arrears. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) For so long as any share of APS is Outstanding, the Trust shall not declare, pay or set apart for payment any dividend or other
distribution (other than a dividend or distribution paid in shares of, or options, warrants or rights to subscribe for or purchase, Common Shares or other shares of beneficial interest, if any, ranking junior to the shares of APS as to dividends or
upon liquidation) in respect of the Common Shares or any other shares of beneficial interest of the Trust ranking junior to or on a parity with the shares of APS as to dividends or upon liquidation, or call for redemption, redeem, purchase or
otherwise acquire for consideration any shares of the Common Shares or any other such junior shares (except by conversion into or exchange for shares of the Trust ranking junior to the shares of APS as to dividends and upon liquidation) or any other
such Parity Shares (except by conversion into or exchange for stock of the Trust ranking junior to or on a parity with the shares of APS as to dividends and upon liquidation), unless (A)&nbsp;immediately after such transaction, the Trust shall have
Moody&#146;s Eligible Assets with an aggregate Discounted Value equal to or greater than the APS Basic Maintenance Amount and the Trust shall maintain the 1940 Act APS Asset Coverage, (B)&nbsp;full cumulative dividends on shares of APS due on or
prior to the date of the transaction have been declared and paid or shall have been declared and sufficient funds for the payment thereof deposited with the Auction Agent, (C)&nbsp;any <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividend
required to be paid pursuant to Section&nbsp;11.2(e) below on or before the date of such declaration or payment has been paid and (D)&nbsp;the Trust has redeemed the full number of APS required to be redeemed by any provision for mandatory
redemption contained herein. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) Each dividend shall consist of (i)&nbsp;cash at the Applicable Rate, (ii)&nbsp;an uncertificated right (a
&#147;Right&#148;) to receive a <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividend (as defined below), and (iii)&nbsp;any additional amounts as set forth in Section&nbsp;11.2(f) below. Each Right shall thereafter be independent of the share
or shares of APS on which the dividend was paid. The Trust shall cause to be maintained a record of each Right received by the respective Holders. A Right may not be transferred other than by operation of law. If the Trust retroactively allocates
any net capital gains or other income subject to regular federal income taxes to shares of APS solely by reason of the fact that such allocation is made as a result of the redemption of all or a portion of the outstanding shares of APS or the
liquidation of the Trust (the amount of such allocation referred to herein as a &#147;Retroactive Taxable Allocation&#148;), the Trust will, if it has not given advance notice thereof to the Auction Agent as described in Section&nbsp;11.2(f) hereof,
within 90 days (and generally within 60 days) after the end of the Trust&#146;s fiscal year for which a Retroactive Taxable Allocation is made, provide notice thereof to the Auction Agent and to each holder of a Right applicable to such shares of
APS (initially as nominee of The Depository Trust Company) during such fiscal year at such holder&#146;s address as the same appears or last appeared on the Stock Books of the Trust. The Trust will, within 30 days after such notice is given to the
Auction Agent, pay to the Auction Agent (who will then distribute to such holders of Rights), out of funds legally available therefor, an amount equal to the aggregate <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends with respect to all
Retroactive Taxable Allocations made to such holders during the fiscal year in question. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A <FONT STYLE="white-space:nowrap">&#147;Gross-Up</FONT> Dividend&#148; means payment to a
present or former Holder of shares of APS of an amount which, giving effect to the Retroactive Taxable Allocation, if any, made to such Holder with respect to the fiscal year in question, would cause such Holder&#146;s
<FONT STYLE="white-space:nowrap">after-tax</FONT> return (taking into account both the Retroactive Taxable Allocation and the <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividend) to be equal to the
<FONT STYLE="white-space:nowrap">after-tax</FONT> return such holder would have received if there had been no Retroactive Taxable Allocation. Such <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividend shall be calculated (i)&nbsp;without
consideration being given to the time value of money; (ii)&nbsp;assuming that no holder of shares of APS is subject to the federal alternative minimum tax with respect to dividends received from the Trust; and (iii)&nbsp;assuming that each
Retroactive Taxable Allocation would be taxable in the hands of each holder of APS at the greater of: (x)&nbsp;the maximum combined effective marginal regular federal and California State individual income tax rate applicable to ordinary income or
capital gains depending on the taxable character of the distribution (including any surtax); or (y)&nbsp;the maximum combined effective marginal regular federal and California State corporate income tax rate applicable to ordinary income or capital
gains depending on the taxable character of the distribution (disregarding in both (x)&nbsp;and (y) the effect of any local taxes and the phase out of, or provision limiting, personal exemptions, itemized deductions, or the benefit of lower tax
brackets). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) Except as provided below, whenever the Trust is aware that it will include any net capital gains or other income subject
to regular Federal income taxes in any dividend on shares of APS, the Trust will notify the Auction Agent of the amount to be so included at least five Business Days prior to the Auction Date on which the Applicable Rate for such dividend is to be
established. The Trust may also include such income in a dividend on shares of a series of APS without giving advance notice thereof if it increases the dividend by an additional amount calculated as if such income were the subject of a Retroactive
Taxable Allocation and the additional amount were a <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividend, provided that the Trust will notify the Auction Agent of the additional amounts to be included in such dividend at least five Business
Days prior to the applicable Dividend Payment Date. The Trust shall not be required to pay <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends with respect to any net capital gain or other taxable income determined by the Internal Revenue
Service to be allocable in a manner different from that allocated by the Trust. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) No fractional shares of APS shall be issued. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) The shares of a series of APS shall rank on a parity with each other, with shares of any other series of APS and with shares of any other
class of Preferred Shares or series thereof (including any RVMTP Shares) as to the payment of dividends and as to distribution of assets upon dissolution, liquidation or winding up of the affairs of the Trust. </P>
 <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">-33- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.3 <U>Liquidation Rights</U>. Upon any liquidation, dissolution or winding up of the Trust,
whether voluntary or involuntary, the Holders shall be entitled to receive, out of the assets of the Trust available for distribution to shareholders, before any distribution or payment is made upon any Common Shares or any other shares of
beneficial interest ranking junior in right of payment upon liquidation to the APS, the sum of $25,000 per share plus accumulated but unpaid dividends (whether or not earned or declared) thereon to the date of distribution, and after such payment
the Holders will be entitled to no other payments other than <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends as provided in Section&nbsp;11.2(e) hereof. If upon any liquidation, dissolution or winding up of the Trust, the amounts payable
with respect to the APS and any other Outstanding class or series of Preferred Shares (including any RVMTP Shares) of the Trust ranking on a parity with the APS as to payment upon liquidation are not paid in full, the Holders and the holders of such
other class or series will share ratably in any such distribution of assets in proportion to the respective preferential amounts to which they are entitled. In this regard, the provisions of this Section&nbsp;11.3 shall be applied consistently with
Section&nbsp;2.3 of Exhibit 1 hereto relating to the RVMTP Shares such that the Holders and the holders of RVMTP Shares are treated on a parity with one another with respect to any such distribution. After payment of the full amount of the
liquidating distribution to which they are entitled, the Holders will not be entitled to any further participation in any distribution of assets by the Trust except for any <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends. A consolidation,
merger or statutory share exchange of the Trust with or into any other Trust or entity or a sale, whether for cash, shares of stock, securities or properties, of all or substantially all or any part of the assets of the Trust shall not be deemed or
construed to be a liquidation, dissolution or winding up of the Trust. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.4 <U>Redemption</U>. (a)&nbsp;Shares of APS shall be redeemable
by the Trust as provided below: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) To the extent permitted under the 1940 Act and Massachusetts law, upon giving a Notice of Redemption,
the Trust at its option may redeem shares of any series of APS, in whole or in part, out of funds legally available therefor, at the Optional Redemption Price per share, on any Dividend Payment Date; provided that no share of APS may be redeemed at
the option of the Trust during (A)&nbsp;the Initial Dividend Period with respect to a series of shares or (B)&nbsp;a <FONT STYLE="white-space:nowrap">Non-Call</FONT> Period to which such share is subject. In addition, holders of APS which are
redeemed shall be entitled to receive <FONT STYLE="white-space:nowrap">Gross-Up</FONT> Dividends to the extent provided herein. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) The
Trust shall redeem, out of funds legally available therefor, at the Mandatory Redemption Price per share, shares of APS and other Preferred Shares to the extent permitted under the 1940 Act and Massachusetts law, on a date fixed by the Board of
Trustees, if the Trust fails to maintain Moody&#146;s Eligible Assets with an aggregate Discounted Value equal to or greater than the APS Basic Maintenance Amount as provided in Section&nbsp;11.7(a) or to satisfy the 1940 Act APS Asset Coverage as
provided in Section&nbsp;6 and such failure is not cured on or before the APS Basic Maintenance Cure Date or the 1940 Act Cure Date (herein collectively referred to as a &#147;Cure Date&#148;), as the case may be. In addition, holders of APS so
redeemed shall be entitled to receive <FONT STYLE="white-space:nowrap">Gross-Up</FONT> Dividends to the extent provided herein. The number of APS and other Preferred Shares to be redeemed shall be equal to the lesser of (i)&nbsp;the minimum number
of APS the redemption of which, if deemed to have occurred immediately prior to the opening of business on the Cure Date, together with all shares of other Preferred Shares subject to redemption or retirement, would result in the Trust having
Moody&#146;s Eligible Assets with an aggregate Discounted Value equal to or greater than the APS Basic Maintenance Amount or </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
satisfaction of the 1940 Act APS Asset Coverage, as the case may be, on such Cure Date (provided that, if there is no such minimum number of shares of APS and shares of other Preferred Shares
(including any RVMTP Shares) the redemption of which would have such result, all shares of APS and shares of other Preferred Shares, including RVMTP Shares, then Outstanding shall be redeemed), and (ii)&nbsp;the maximum number of shares of APS,
together with all shares of other Preferred Shares, including RVMTP Shares, subject to redemption or retirement, that can be redeemed out of funds expected to be legally available therefor on such redemption date. In determining the number of APS
and other Preferred Shares required to be redeemed in accordance with the foregoing, the Trust shall allocate the number required to be redeemed which would result in the Trust having Moody&#146;s Eligible Assets with an aggregate Discounted Value
equal to or greater than the APS Basic Maintenance Amount or satisfaction of the 1940 Act APS Asset Coverage, as the case may be, on a pro rata basis among shares of APS of all series and other Preferred Shares, including RVMTP Shares, based upon
the proportion that the aggregate liquidation preference of the outstanding APS and other Preferred Shares of any series bears to the aggregate liquidation preference of all outstanding series of APS and other Preferred Shares, subject to redemption
pursuant to provisions similar to those contained in this Section&nbsp;11.4(a)(ii); provided that, shares of APS which may not be redeemed at the option of the Trust due to the designation of a <FONT STYLE="white-space:nowrap">Non-Call</FONT> Period
applicable to such shares (A)&nbsp;will be subject to mandatory redemption only to the extent that other shares are not available to satisfy the number of shares required to be redeemed and (B)&nbsp;will be selected for redemption in an ascending
order of outstanding number of days in the <FONT STYLE="white-space:nowrap">Non-Call</FONT> Period (with shares with the lowest number of days to be redeemed first) and by lot in the event of shares having an equal number of days in such <FONT
STYLE="white-space:nowrap">Non-Call</FONT> Period. The Trust shall effect such redemption on a Business Day which is not later than 35 days after such Cure Date, except that if the Trust does not have funds legally available for the redemption of
all of the required number of APS and other Preferred Shares, including RVMTP Shares, which are subject to mandatory redemption or the Trust otherwise is unable to effect such redemption on or prior to 35 days after such Cure Date, the Trust shall
redeem those APS and other Preferred Shares, including RVMTP Shares, which it is unable to redeem on the earliest practicable date on which it is able to effect such redemption out of funds legally available therefor. For the avoidance of doubt,
Sections 2.6(a) and 2.6(b) of Exhibit 1 hereto contain additional mandatory redemption provisions relating to the RVMTP Shares. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b)
Notwithstanding any other provision of this Section&nbsp;11.4, no shares of APS may be redeemed pursuant to Section&nbsp;11.4(a)(i) of these <FONT STYLE="white-space:nowrap">By-Laws</FONT> (i)&nbsp;unless all dividends in arrears on all remaining
outstanding shares of Parity Shares shall have been or are being contemporaneously paid or declared and set apart for payment and (ii)&nbsp;if redemption thereof would result in the Trust&#146;s failure to maintain Moody&#146;s Eligible Assets with
an aggregate Discounted Value equal to or greater than the APS Basic Maintenance Amount. In the event that less than all the outstanding shares of a series of APS are to be redeemed and there is more than one Holder, the shares of that series of APS
to be redeemed shall be selected by lot or such other method as the Trust shall deem fair and equitable. For the avoidance of doubt, Section&nbsp;2.6(d)(v) of Exhibit 1 hereto contains additional provisions relating to prohibitions on redemption of
the RVMTP Shares. </P>
 <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">-35- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) Whenever shares of APS are to be redeemed, the Trust, not less than 17 nor more than 30 days
prior to the date fixed for redemption, shall mail a notice (&#147;Notice of Redemption&#148;) by first-class mail, postage prepaid, to each Holder of APS to be redeemed and to the Auction Agent. The Notice of Redemption shall set forth (i)&nbsp;the
redemption date, (ii)&nbsp;the amount of the redemption price, (iii)&nbsp;the aggregate number of APS of such series to be redeemed, (iv)&nbsp;the place or places where APS of such series are to be surrendered for payment of the redemption price,
(v)&nbsp;a statement that dividends on the shares to be redeemed shall cease to accumulate on such redemption date (except that holders may be entitled to <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends) and (vi)&nbsp;the provision of
these <FONT STYLE="white-space:nowrap">By-Laws</FONT> pursuant to which such shares are being redeemed. No defect in the Notice of Redemption or in the mailing or publication thereof shall affect the validity of the redemption proceedings, except as
required by applicable law. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If the Notice of Redemption shall have been given as aforesaid and, concurrently or thereafter, the Trust
shall have deposited in trust with the Auction Agent, or segregated in an account at the Trust&#146;s custodian bank for the benefit of the Auction Agent, Deposit Securities (with a right of substitution) having an aggregate Discounted Value equal
to the redemption payment for the APS as to which such Notice of Redemption has been given with irrevocable instructions and authority to pay the redemption price to the Holders of such shares, then upon the date of such deposit or, if no such
deposit is made, then upon such date fixed for redemption (unless the Trust shall default in making the redemption payment), all rights (including without limitation voting rights) of the Holders of such shares as shareholders of the Trust by reason
of the ownership of such shares will cease and terminate (except their right to receive the redemption price in respect thereof and any <FONT STYLE="white-space:nowrap">Gross-up</FONT> Dividends, but without interest), and such shares shall no
longer be deemed Outstanding. The Trust shall be entitled to receive, from time to time, from the Auction Agent the interest, if any, on such Deposit Securities deposited with it and the Holders of any shares so redeemed shall have no claim to any
of such interest. In case the Holder of any shares so called for redemption shall not claim the redemption payment for his shares within one year after the date of redemption, the Auction Agent shall, upon demand, pay over to the Trust such amount
remaining on deposit and the Auction Agent shall thereupon be relieved of all responsibility to the Holder of such shares called for redemption and such Holder thereafter shall look only to the Trust for the redemption payment. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.5 <U>Voting Rights</U>. (a)<U>&nbsp;General</U>. Except as otherwise provided in the Declaration of Trust or Bylaws, each Holder of APS
shall be entitled to one vote for each share held on each matter submitted to a vote of all shareholders of the Trust, and the holders of outstanding shares of Preferred Shares, including APS and RVMTP Shares, and of shares of Common Shares shall
vote together as a single class; provided that the holders of outstanding shares of Preferred Shares, including APS and RVMTP Shares, shall be entitled, as a class, to the exclusion of the holders of all other securities and classes of capital stock
of the Trust, to elect two trustees of the Trust. Subject to Section&nbsp;11.5(b) hereof, the holders of outstanding shares of beneficial interest of the Trust, including the holders of outstanding shares of Preferred Shares, including APS and RVMTP
Shares, voting as a single class, shall elect the balance of the trustees. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <U>Right to Elect Majority of Board of Trustees</U>. During any period in which any one or
more of the conditions described below shall exist (such period being referred to herein as a &#147;Voting Period&#148;), the number of trustees constituting the Board of Trustees shall be automatically increased by the smallest number that, when
added to the two trustees elected exclusively by the holders of shares of Preferred Shares, including APS and RVMTP Shares, would constitute a majority of the Board of Trustees as so increased by such smallest number; and the holders of Preferred
Shares, including APS and RVMTP Shares, shall be entitled, voting separately as one class (to the exclusion of the holders of all other securities and classes of shares of beneficial interest of the Trust), to elect such smallest number of
additional trustees, together with the two trustees that such holders are in any event entitled to elect. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A Voting Period shall commence:
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) if at any time accumulated dividends (whether or not earned or declared, and whether or not funds are then legally available in an
amount sufficient therefor) on the outstanding APS equal to at least two full years&#146; dividends shall be due and unpaid and sufficient cash or specified securities shall not have been deposited with the Auction Agent for the payment of such
accumulated dividends; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) if at any time holders of any Preferred Shares, including the holders of APS, are entitled to elect a
majority of the trustees of the Trust under the 1940 Act. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Upon the termination of a Voting Period, the voting rights described in this
Section&nbsp;11.5(b) shall cease, subject always, however, to the reverting of such voting rights in the Holders upon the further occurrence of any of the events described in Section&nbsp;11.5(b). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <U>Right to Vote with Respect to Certain Other Matters</U>. So long as any shares of APS are outstanding, the Trust shall not, without the
affirmative vote of the holders of a majority of the shares of Preferred Shares Outstanding at the time, voting separately as one class: (i)&nbsp;authorize, create or issue any class or series of shares of beneficial interest ranking prior to the
APS or any other series of Preferred Shares (including the RVMTP Shares) with respect to payment of dividends or the distribution of assets on liquidation; provided, however, that no vote is required to authorize the issuance of another series of
APS or another class of Preferred Shares (including the RVMTP Shares) that is substantially identical in all respects to the APS, or (ii)&nbsp;amend, alter or repeal the provisions of the Declaration of Trust or
<FONT STYLE="white-space:nowrap">By-Laws,</FONT> whether by merger, consolidation or otherwise, so as to adversely affect any of the contract rights expressly set forth in the Declaration of Trust or <FONT STYLE="white-space:nowrap">By-Laws</FONT>
of holders of APS or any other Preferred Shares (including the RVMTP Shares). To the extent permitted under the 1940 Act, in the event shares of more than one series of APS are outstanding, the Trust shall not approve any of the actions set forth in
clause (i)&nbsp;or (ii) which adversely affects the contract rights expressly set forth in the Declaration of Trust or <FONT STYLE="white-space:nowrap">By-Laws</FONT> of a Holder of a series of APS differently than those of a Holder of any other
series of APS without the affirmative vote of the holders of at least a majority of the APS of each series adversely affected and Outstanding at such time (each such adversely affected series voting separately as a class). Unless a higher percentage
is provided for under the Declaration of Trust, the affirmative vote of the holders of a majority of the outstanding shares of </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Preferred Shares, including APS and RVMTP Shares, voting together as a single class, will be required to approve any plan of reorganization (including bankruptcy proceedings) adversely affecting
such shares or any action requiring a vote of security holders under Section&nbsp;13(a) of the 1940 Act. The class vote of holders of Preferred Shares, including APS and RVMTP Shares, described above will in each case be in addition to a separate
vote of the requisite percentage of Common Shares and Preferred Shares, including APS and RVMTP Shares, voting together as a single class necessary to authorize the action in question. For the avoidance of doubt, Sections 2.7(c)(i) and 2.9 of
Exhibit 1 hereto contains related requirements with respect to the RVMTP Shares. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <U>Voting Procedures</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) As soon as practicable after the accrual of any right of the holders of shares of Preferred Shares to elect additional trustees as
described in Section&nbsp;11.5(b) above, the Trust shall call a special meeting of such holders and instruct the Auction Agent to mail a notice of such special meeting to such holders, such meeting to be held not less than 10 nor more than 20 days
after the date of mailing of such notice. If the Trust fails to send such notice to the Auction Agent or if the Trust does not call such a special meeting, it may be called by any such holder on like notice. The record date for determining the
holders entitled to notice of and to vote at such special meeting shall be the close of business on the fifth Business Day preceding the day on which such notice is mailed. At any such special meeting and at each meeting held during a Voting Period,
such holders, voting together as a class (to the exclusion of the holders of all other securities and classes of shares of beneficial interest of the Trust), shall be entitled to elect the number of directors prescribed in Section&nbsp;11.5(b)
above. At any such meeting or adjournment thereof in the absence of a quorum, a majority of such holders present in person or by proxy shall have the power to adjourn the meeting without notice, other than by an announcement at the meeting, to a
date not more than 120 days after the original record date. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) For purposes of determining any rights of the Holders to vote on any
matter or the number of shares required to constitute a quorum, whether such right is created by these By-Laws, by the other provisions of the Declaration of Trust, by statute or otherwise, a share of APS which is not Outstanding shall not be
counted. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) The terms of office of all persons who are trustees of the Trust at the time of a special meeting of Holders and holders of
other Preferred Shares to elect trustees shall continue, notwithstanding the election at such meeting by the Holders and such other holders of the number of trustees that they are entitled to elect, and the persons so elected by the Holders and such
other holders, together with the two incumbent trustees elected by the Holders and such other holders of Preferred Shares and the remaining incumbent trustees elected by the holders of the Common Shares and Preferred Shares, shall constitute the
duly elected trustees of the Trust. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) Simultaneously with the expiration of a Voting Period, the terms of office of the additional
trustees elected by the Holders and holders of other Preferred Shares pursuant to Section&nbsp;11.5(b) above shall terminate, the remaining trustees shall constitute the trustees of the Trust and the voting rights of the Holders and such other
holders to elect additional trustees pursuant to Section&nbsp;11.5(b) above shall cease, subject to the provisions of the last sentence of Section&nbsp;11.5(b). </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <U>Exclusive Remedy</U>. Unless otherwise required by law, the Holders of APS shall not have
any rights or preferences other than those specifically set forth herein. The Holders of APS shall have no preemptive rights or rights to cumulative voting. In the event that the Trust fails to pay any dividends on the APS, the exclusive remedy of
the Holders shall be the right to vote for trustees pursuant to the provisions of this Section&nbsp;11.5. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.6 <U>1940 Act APS Asset
Coverage</U>. The Trust shall maintain, as of the last Business Day of each month in which any APS are outstanding, the 1940 Act APS Asset Coverage. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.7 <U>APS Basic Maintenance Amount</U>. (a)&nbsp;The Trust shall maintain, on each Valuation Date, and shall verify to its satisfaction that
it is maintaining on such Valuation Date Moody&#146;s Eligible Assets having an aggregate Discounted Value equal to or greater than the APS Basic Maintenance Amount. Upon any failure to maintain the required Discounted Value, the Trust will use its
best efforts to alter the composition of its portfolio to retain a Discounted Value at least equal to the APS Basic Maintenance Amount on or prior to the APS Basic Maintenance Cure Date. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) On or before 5:00 p.m., New York City time, on the third Business Day after a Valuation Date on which the Trust fails to satisfy the APS
Basic Maintenance Amount, the Trust shall complete and deliver to the Auction Agent and Moody&#146;s a complete APS Basic Maintenance Report as of the date of such failure, which will be deemed to have been delivered to the Auction Agent if the
Auction Agent receives a copy or telecopy, telex or other electronic transcription thereof and on the same day the Trust mails to the Auction Agent for delivery on the next Business Day the complete APS Basic Maintenance Report. The Trust will
deliver an APS Basic Maintenance Report to the Auction Agent and Moody&#146;s, on or before 5:00 p.m., New York City time, on the third Business Day after a Valuation Date on which the Trust cures its failure to maintain Moody&#146;s Eligible Assets
with an aggregate Discounted Value equal to or greater than the APS Basic Maintenance Amount or on which the Trust fails to maintain Moody&#146;s Eligible Assets with an aggregate Discounted Value which exceeds the APS Basic Maintenance Amount by 5%
or more. The Trust will also deliver an APS Basic Maintenance Report to the Auction Agent and Moody&#146;s as of each Quarterly Valuation Date on or before the third Business Day after such date. Additionally, on or before 5:00 p.m., New York City
time, on the third Business Day after the first day of a Special Dividend Period, the Trust will deliver an APS Basic Maintenance Report to Moody&#146;s and the Auction Agent. The Trust shall also provide Moody&#146;s with an APS Basic Maintenance
Report when specifically requested by Moody&#146;s. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) Within twenty Business Days after the date of delivery of an APS Basic Maintenance
Report in accordance with Section&nbsp;11.7(b) above relating to a Quarterly Valuation Date (except as described in the following sentence), the Independent Accountant will confirm in writing to the Auction Agent and Moody&#146;s, (i)&nbsp;the
mathematical accuracy of the calculations reflected in such Report, (ii)&nbsp;that, in such Report, the Trust correctly determined the assets of the Trust which constitute Moody&#146;s Eligible Assets at such Quarterly Valuation Date in accordance
with these </P>
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Bylaws, (iii)&nbsp;that, in such Report, the Trust determined whether the Trust had, at such Quarterly Valuation Date in accordance with these Bylaws, Moody&#146;s Eligible Assets with an
aggregate Discounted Value at least equal to the APS Basic Maintenance Amount, (iv)&nbsp;with respect to the S&amp;P or Fitch ratings on Municipal Obligations, the issuer name, issue size and coupon rate, if any, listed in such Report, that the
Independent Accountant has verified such information in reference to third-party information sources (such as Reuters or Bloomberg) and the Independent Accountant shall provide a listing in its letter of any differences, (v)&nbsp;with respect to the
Moody&#146;s ratings on Municipal Obligations, the issuer name, issue size and coupon rate, if any, listed in such Report, that the Independent Accountant has verified such information in reference to third-party information sources (such as Reuters
or Bloomberg) and (vi)&nbsp;that the Independent Accountant has compared the prices in such Report to the prices in the applicable pricing appraisal report provided by the custodian of the Trust&#146;s assets to the Trust for purposes of valuing
securities in the Trust&#146;s portfolio and verified that such information agrees (in the event such information does not agree, the Independent Accountant will provide a listing in its letter of such differences) (such confirmation is herein
called the &#147;Accountant&#146;s Confirmation&#148;). Notwithstanding the foregoing sentence, the Independent Accountant will provide the confirmation described in the foregoing sentence with respect to APS Basic Maintenance Reports delivered
pursuant to the third sentence of Section&nbsp;11.7(b) above only for such APS Basic Maintenance Reports relating to the last fiscal quarter of each fiscal year. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) Within twenty Business Days after the date of delivery to the Auction Agent and Moody&#146;s of an APS Basic Maintenance Report in
accordance with Section&nbsp;11.7(b) above relating to the APS Basic Maintenance Cure Date with respect to such failure, the Trust shall cause the Independent Accountant to provide to the Auction Agent and Moody&#146;s an Accountant&#146;s
Confirmation as to such APS Basic Maintenance Report. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) If any Accountant&#146;s Confirmation delivered pursuant to subparagraph
(c)&nbsp;or (d) of this Section&nbsp;11.7 shows that an error was made in the APS Basic Maintenance Report for a particular Valuation Date for which such Accountant&#146;s Confirmation as required to be delivered, or shows that a lower aggregate
Discounted Value for the aggregate of all Moody&#146;s Eligible Assets of the Trust was determined by the Independent Accountant, the calculation or determination made by such Independent Accountant shall be final and conclusive and shall be binding
on the Trust, and the Trust shall accordingly amend and deliver the APS Basic Maintenance Report to the Auction Agent and promptly following receipt by the Trust of such Accountant&#146;s Confirmation. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) On or before 5:00 p.m., New York City time, on the first Business Day after the Date of Original Issue of the APS, the Trust will complete
and deliver to Moody&#146;s an APS Basic Maintenance Report as of the close of business on such Date of Original Issue. Within five Business Days of such Date of Original Issue, the Independent Accountant will confirm in writing to Moody&#146;s
(i)&nbsp;the mathematical accuracy of the calculations reflected in such Report and (ii)&nbsp;that the aggregate Discounted Value of Moody&#146;s Eligible Assets reflected thereon equals or exceeds the APS Basic Maintenance Amount reflected thereon.
Also, on or before 5:00 p.m., New York City time, on the first Business Day after shares of Common Shares are repurchased by the Trust, the Trust will complete and deliver to Moody&#146;s an APS Basic Maintenance Report as of the close of business
on such date that Common Shares are repurchased. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.8 <U>Hedging Transactions</U>. (a)&nbsp;For so long as any APS are rated by Moody&#146;s, the
Trust will not buy or sell financial futures contracts, write, purchase or sell call options on financial futures contracts or purchase put options on financial futures contracts or write call options (except covered call options) on portfolio
securities unless it receives written confirmation from Moody&#146;s that engaging in such transactions would not impair the ratings then assigned to the APS by Moody&#146;s, except that the Trust may purchase or sell exchange-traded financial
futures contracts based on the Municipal Index or Treasury Bonds, and purchase, write or sell exchange-traded put options on such financial futures contracts, the Municipal Index or Treasury Bonds, and purchase, write or sell exchange-traded call
options on such financial futures contracts, the Municipal Index or Treasury Bonds (collectively &#147;Moody&#146;s Hedging Transactions&#148;), subject to the following limitations: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) the Trust will not engage in any Moody&#146;s Hedging Transaction based on the Municipal Index (other than transactions
that terminate a futures contract or option held by the Trust by the Trust&#146;s taking the opposite position thereto (&#147;Closing Transactions&#148;)) that would cause the Trust at the time of such transaction to own or have sold: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) outstanding financial futures contracts based on the Municipal Index exceeding in number 10% of the average number of daily
traded financial futures contracts based on the Municipal Index in the 30 days preceding the time of effecting such transaction as reported by The Wall Street Journal; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) outstanding financial futures contracts based on the Municipal Index having a Market Value exceeding 50% of the Market
Value of all Municipal Obligations constituting Moody&#146;s Eligible Assets owned by the Trust (other than Moody&#146;s Eligible Assets already subject to a Moody&#146;s Hedging Transaction); </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) the Trust will not engage in any Moody&#146;s Hedging Transaction based on Treasury Bonds (other than Closing
Transactions) that would cause the Trust at the time of such transaction to own or have sold: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) outstanding financial
futures contracts based on Treasury Bonds with such contracts having an aggregate Market Value exceeding 20% of the aggregate Market Value of Moody&#146;s Eligible Assets owned by the Trust and rated Aa by Moody&#146;s (or, if not rated by
Moody&#146;s but rated by S&amp;P, rated AAA by S&amp;P); or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) outstanding financial futures contracts based on Treasury
Bonds with such contracts having an aggregate Market Value exceeding 80% of the aggregate Market Value of all Municipal Obligations constituting Moody&#146;s Eligible Assets owned by the Trust (other than Moody&#146;s Eligible Assets already subject
to a Moody&#146;s Hedging Transaction) and rated Baa or A by Moody&#146;s (or, if not rated by Moody&#146;s but rated by S&amp;P, rated A or AA by S&amp;P). (for purposes of the foregoing clauses (i)&nbsp;and (ii), the Trust shall be deemed to own
the number of financial futures contracts that underlie any outstanding options written by the Trust); </P>
 <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">-41- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) the Trust will engage in Closing Transactions to close out any outstanding
financial futures contract based on the Municipal Index if the amount of open interest in the Municipal Index as reported by The Wall Street Journal is less than 5,000; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) the Trust will engage in a Closing Transaction to close out any outstanding financial futures contract by no later than
the fifth Business Day of the month in which such contract expires and will engage in a Closing Transaction to close out any outstanding option on a financial futures contract by no later than the first Business Day of the month in which such option
expires; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) the Trust will engage in Moody&#146;s Hedging Transactions only with respect to financial futures contracts
or options thereon having the next settlement date or the settlement date immediately thereafter; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vi) the Trust will not
engage in options and futures transactions for leveraging or speculative purposes and will not write any call options or sell any financial futures contracts for the purpose of hedging the anticipated purchase of an asset prior to completion of such
purchase; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vii) the Trust will not enter into an option or futures transaction unless, after giving effect thereto,
the Trust would continue to have Moody&#146;s Eligible Assets with an aggregate Discounted Value equal to or greater than the APS Basic Maintenance Amount. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) For purposes of determining whether the Trust has Moody&#146;s Eligible Assets with an aggregate Discounted Value that equals or exceeds
the APS Basic Maintenance Amount, the Discounted Value of Moody&#146;s Eligible Assets that the Trust is obligated to deliver or receive pursuant to an outstanding futures contract or option shall be as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) assets subject to call options written by the Trust that are either exchange-traded and &#147;readily reversible&#148; or
that expire within 49 days after the date as of which such valuation is made shall be valued at the lesser of (A)&nbsp;Discounted Value and (B)&nbsp;the exercise price of the call option written by the Trust; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) assets subject to call options written by the Trust not meeting the requirements of clause (i)&nbsp;of this sentence shall
have no value; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) assets subject to put options written by the Trust shall be valued at the lesser of (A)&nbsp;the
exercise price and (B)&nbsp;the Discounted Value of the assets subject to the option; </P>
 <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">-42- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) futures contracts shall be valued at the lesser of (A)&nbsp;settlement price
and (B)&nbsp;the Discounted Value of the assets subject to the futures contract, provided that, if a contract matures within 49 days after the date as of which such valuation is made, where the Trust is the seller the contract may be valued at the
settlement price and where the Trust is the buyer the contract may be valued at the Discounted Value of the assets subject to the futures contract; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) where delivery may be made to the Trust with any security of a class of securities, the Trust shall assume that it will
take delivery of the security with the lowest Discounted Value. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) For purposes of determining whether the Trust has Moody&#146;s
Eligible Assets with an aggregate Discounted Value that equals or exceeds the APS Basic Maintenance Amount, the following amounts shall be subtracted from the aggregate Discounted Value of the Moody&#146;s Eligible Assets held by the Trust to the
extent the relevant asset is a Moody&#146;s Eligible Asset: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) 10% of the exercise price of a written call option; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) the exercise price of any written put option; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) where the Trust is the seller under a financial futures contract, 10% of the settlement price of the financial futures
contract; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) where the Trust is the purchaser under a financial futures contract, any amounts payable by the Trust under
such financial futures contract; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) the settlement price of the underlying financial futures contract if the Trust writes
put options on a financial futures contract; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vi) 105% of the Market Value of the underlying financial futures
contracts if the Trust writes call options on a financial futures contract and does not own the underlying contract. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) For so long as
any APS are rated by Moody&#146;s, the Trust will not enter into any &#147;Forward Commitment,&#148; herein defined as any contract to purchase securities for a fixed price at a future date beyond customary settlement time (other than such contracts
that constitute Moody&#146;s Hedging Transactions), except that the Trust may enter into Forward Commitments subject to the following limitations: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) for each Forward Commitment, the Trust will maintain with its custodian (A)&nbsp;cash, cash equivalents or short-term,
fixed-income securities rated <FONT STYLE="white-space:nowrap">P-1,</FONT> <FONT STYLE="white-space:nowrap">MIG-1</FONT> or <FONT STYLE="white-space:nowrap">VMIG-1</FONT> by Moody&#146;s or <FONT STYLE="white-space:nowrap">A-1</FONT> by S&amp;P and
maturing in one year or less with a fair market value that equals or exceeds the amount by which the Trust&#146;s obligations under any Forward Commitments to which it is from time to time a party exceed obligations to the Trust arising from
securities sales by the Trust that are scheduled to settle at a future date, or </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(B) long-term, fixed-income securities with a then current market value that equals or exceeds
the amount by which the Trust&#146;s obligations under any Forward Commitments to which it is from time to time a party exceed obligations to the Trust arising from securities sales by the Trust that are scheduled to settle on a future date, or
(C)&nbsp;a combination of assets described in (A)&nbsp;and (B) above that in the aggregate equals or exceeds the amount by which the Trust&#146;s obligations under any Forward Commitments to which it is from time to time a party exceed obligations
to the Trust arising from securities sales by the Trust that are scheduled to settle on a future date; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) the Trust
will not enter into a Forward Commitment unless, after giving effect thereto, the Trust would continue to have Moody&#146;s Eligible Assets with an aggregate Discounted Value equal to or greater than the APS Basic Maintenance Amount. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">For purposes of determining whether the Trust has Moody&#146;s Eligible Assets with an aggregate Discounted Value that equals or exceeds the APS Basic
Maintenance Amount, the Discounted Value of all Forward Commitments to which the Trust is a party and of all securities deliverable to the Trust pursuant to such Forward Commitments shall be zero. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) For so long as APS are rated by Moody&#146;s, the Trust, unless it has received written confirmation from Moody&#146;s that such action
would not impair the ratings then assigned to the APS by Moody&#146;s, will not: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) borrow money except for the purpose
of clearing transactions in portfolio securities (which borrowings under any circumstances shall be limited to an amount equal to 5% of the Market Value of the Trust&#146;s assets at the time of such borrowings and which borrowings shall be repaid
within 60 days and not be extended or renewed and shall not cause the aggregate Discounted Value of Moody&#146;s Eligible Assets to be less than the APS Basic Maintenance Amount); </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) engage in short sales of securities; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) lend any securities; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) issue any class or series of stock ranking prior to or on a parity with the APS with respect to the payment of dividends
or the distribution of assets upon dissolution, liquidation or winding up of the Trust; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) merge or consolidate into or
with any other corporation or entity; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vi) change the Trust&#146;s Pricing Service. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.9 <U>Notice</U>. All notices or communications, unless otherwise specified in these By-Laws, shall be sufficiently given if in writing and
delivered in person or mailed by first-class mail, postage prepaid. Notice shall be deemed given on the earlier of the date received or the date seven days after which such notice is mailed. </P>
 <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">-44- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.10 <U>Auction Procedures</U>. (a)<U>&nbsp;Certain definitions</U>. As used in this
Section&nbsp;11.10, the following terms shall have the following meanings, unless the context otherwise requires: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)
&#147;APS&#148; means the shares of APS being auctioned pursuant to this Section&nbsp;11.10. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) &#147;Auction Date&#148;
means the first Business Day preceding the first day of a Dividend Period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) &#147;Available APS&#148; has the meaning
specified in Section&nbsp;11.10(d)(i) below. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) &#147;Bid&#148; has the meaning specified in Section&nbsp;11.10(b)(i)
below. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) &#147;Bidder&#148; has the meaning specified in Section&nbsp;11.10(b)(i) below. (vi) &#147;Hold Order&#148; has
the meaning specified in Section&nbsp;11.10(b)(i) below. (vii) &#147;Maximum Applicable Rate&#148; for any Dividend Period will be the Applicable Percentage of the Reference Rate. The Auction Agent will round each applicable Maximum Applicable Rate
to the nearest <FONT STYLE="white-space:nowrap">one-thousandth</FONT> (0.001) of one percent per annum, with any such number ending in five <FONT STYLE="white-space:nowrap">ten-thousandths</FONT> of one percent being rounded upwards to the nearest <FONT
STYLE="white-space:nowrap">one-thousandth</FONT> (0.001) of one percent. The Auction Agent will not round the applicable Reference Rate as part of its calculation of the Maximum Applicable Rate. The Applicable Percentage will be determined based on
(i)&nbsp;the credit rating assigned on such date to such shares by Moody&#146;s (or, if Moody&#146;s shall not make such rating available, the equivalent of such rating by a Substitute Rating Agency) and (ii)&nbsp;whether the Trust has provided
notification to the Auction Agent prior to the Auction establishing the Applicable Rate for any dividend that net capital gains or other taxable income will be included in such dividend on shares of APS as follows: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD WIDTH="69%"></TD>

<TD VALIGN="bottom" WIDTH="13%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD VALIGN="bottom" WIDTH="12%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; ">Moody&#146;s Credit Ratings on APS</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Percentage&nbsp;of<BR>Reference&nbsp;Rate&nbsp;-<BR>No Notification</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Percentage&nbsp;of<BR>Reference&nbsp;Rate&nbsp;-<BR>Notification</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">aa3 or higher</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">110</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">150</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">a</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">125</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">160</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">baa</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">150</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">250</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Below baa</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">200</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">275</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Trust shall take all reasonable action necessary to enable Moody&#146;s to provide a rating for each
series of APS. If Moody&#146;s shall not make such a rating available, UBS Warburg LLC or its affiliates and successors, after consultation with the Trust, shall select another Rating Agency to act as a Substitute Rating Agency. </P>
 <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">-45- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(viii) &#147;Order&#148; has the meaning specified in Section&nbsp;11.10(b)(i)
below. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ix) &#147;Sell Order&#148; has the meaning specified in Section&nbsp;11.10(b)(i) below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(x) &#147;Submission Deadline&#148; means 1:00 P.M., New York City time, on any Auction Date or such other time on any Auction
Date as may be specified by the Auction Agent from time to time as the time by which each Broker-Dealer must submit to the Auction Agent in writing all Orders obtained by it for the Auction to be conducted on such Auction Date. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xi) &#147;Submitted Bid&#148; has the meaning specified in Section&nbsp;11.10(d)(i) below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xii) &#147;Submitted Hold Order&#148; has the meaning specified in Section&nbsp;11.10(d)(i) below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xiii) &#147;Submitted Order&#148; has the meaning specified in Section&nbsp;11.10(d)(i) below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xiv) &#147;Submitted Sell Order&#148; has the meaning specified in Section&nbsp;11.10(d)(i) below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xv) &#147;Sufficient Clearing Bids&#148; has the meaning specified in Section&nbsp;11.10(d)(i) below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xvi) &#147;Winning Bid Rate&#148; has the meaning specified in Section&nbsp;11.10(d)(i) below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <U>Orders by Beneficial Owners, Potential Beneficial Owners, Existing Holders and Potential Holders</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) Unless otherwise permitted by the Trust, Beneficial Owners and Potential Beneficial Owners may only participate in Auctions
through their Broker-Dealers. Broker-Dealers will submit the Orders of their respective customers who are Beneficial Owners and Potential Beneficial Owners to the Auction Agent, designating themselves as Existing Holders in respect of shares subject
to Orders submitted or deemed submitted to them by Beneficial Owners and as Potential Holders in respect of shares subject to Orders submitted to them by Potential Beneficial Owners. A Broker-Dealer may also hold shares of APS in its own account as
a Beneficial Owner. A Broker-Dealer may thus submit Orders to the Auction Agent as a Beneficial Owner or a Potential Beneficial Owner and therefore participate in an Auction as an Existing Holder or Potential Holder on behalf of both itself and its
customers. On or prior to the Submission Deadline on each Auction Date: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) each Beneficial Owner may submit to its
Broker-Dealer information as to: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) the number of Outstanding shares, if any, of APS held by such Beneficial Owner which
such Beneficial Owner desires to continue to hold without regard to the Applicable Rate for the next succeeding Dividend Period for such shares; </P>
 <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">-46- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) the number of Outstanding shares, if any, of APS held by such Beneficial
Owner which such Beneficial Owner desires to continue to hold, provided that the Applicable Rate for the next succeeding Dividend Period for such shares shall not be less than the rate per annum specified by such Beneficial Owner; and/or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(3) the number of Outstanding shares, if any, of APS held by such Beneficial Owner which such Beneficial Owner offers to sell
without regard to the Applicable Rate for the next succeeding Dividend Period; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) each Broker-Dealer, using a list of
Potential Beneficial Owners that shall be maintained in good faith for the purpose of conducting a competitive Auction, shall contact Potential Beneficial Owners, including Persons that are not Beneficial Owners, on such list to determine the number
of Outstanding shares, if any, of APS which each such Potential Beneficial Owner offers to purchase, provided that the Applicable Rate for the next succeeding Dividend Period shall not be less than the rate per annum specified by such Potential
Beneficial Owner. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">For the purposes hereof, the communication by a Beneficial Owner or Potential Beneficial Owner to a
Broker-Dealer, or the communication by a Broker-Dealer acting for its own account to the Auction Agent, of information referred to in clause (A)&nbsp;or (B) of this Section&nbsp;11.10(b)(i) is hereinafter referred to as an &#147;Order&#148; and each
Beneficial Owner and each Potential Beneficial Owner placing an Order, including a Broker-Dealer acting in such capacity for its own account, is hereinafter referred to as a &#147;Bidder&#148;; an Order containing the information referred to in
clause (A)(1) of this Section&nbsp;11.10(b)(i) is hereinafter referred to as a &#147;Hold Order&#148;; an Order containing the information referred to in clause (A)(2) or (B)&nbsp;of this Section&nbsp;11.10(b)(i) is hereinafter referred to as a
&#147;Bid&#148;; and an Order containing the information referred to in clause (A)(3) of this Section&nbsp;11.10(b)(i) is hereinafter referred to as a &#147;Sell Order&#148;. Inasmuch as a Broker-Dealer participates in an Auction as an Existing
Holder or a Potential Holder only to represent the interests of a Beneficial Owner or Potential Beneficial Owner, whether it be its customers or itself, all discussion herein relating to the consequences of an Auction for Existing Holders and
Potential Holders also applies to the underlying beneficial ownership interests represented. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;(A) A Bid by an
Existing Holder shall constitute an irrevocable offer to sell: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) the number of Outstanding shares of APS specified in
such Bid if the Applicable Rate determined on such Auction Date shall be less than the rate per annum specified in such Bid; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) such number or a lesser number of Outstanding shares of APS to be determined as set forth in Section&nbsp;11.10(e)(i)(D)
if the Applicable Rate determined on such Auction Date shall be equal to the rate per annum specified therein; or </P>
 <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">-47- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(3) a lesser number of Outstanding shares of APS to be determined as set forth
in Section&nbsp;11.10(e)(ii)(C) if such specified rate per annum shall be higher than the Maximum Applicable Rate and Sufficient Clearing Bids do not exist. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) A Sell Order by an Existing Holder shall constitute an irrevocable offer to sell: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) the number of Outstanding shares of APS specified in such Sell Order; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) such number or a lesser number of Outstanding shares of APS to be determined as set forth in Section&nbsp;11.10(e)(ii)(C)
if Sufficient Clearing Bids do not exist. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(C) A Bid by a Potential Holder shall constitute an irrevocable offer to
purchase: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) the number of Outstanding shares of APS specified in such Bid if the Applicable Rate determined on such
Auction Date shall be higher than the rate per annum specified in such Bid; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) such number or a lesser number of
Outstanding shares of APS to be determined as set forth in Section&nbsp;11.10(e)(i)(E) if the Applicable Rate determined on such Auction Date shall be equal to the rate per annum specified therein. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <U>Submission of Orders by Broker-Dealers to Auction Agent</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) Each Broker-Dealer shall submit in writing or through the Auction Agent&#146;s Auction Processing System to the Auction
Agent prior to the Submission Deadline on each Auction Date all Orders obtained by such Broker-Dealer, designating itself (unless otherwise permitted by the Trust) as an Existing Holder in respect of shares subject to Orders submitted or deemed
submitted to it by Beneficial Owners and as a Potential Holder in respect of shares subject to Orders submitted to it by Potential Beneficial Owners, and specifying with respect to each Order: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) the name of the Bidder placing such Order (which shall be the Broker-Dealer unless otherwise permitted by the Trust); </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) the aggregate number of Outstanding shares of APS that are the subject of such Order; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(C) to the extent that such Bidder is an Existing Holder: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:22%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) the number of Outstanding shares, if any, of APS subject to any Hold Order placed by such Existing Holder; </P>
 <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">-48- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:22%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) the number of Outstanding shares, if any, of APS subject to any Bid placed
by such Existing Holder and the rate per annum specified in such Bid; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:22%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(3) the number of Outstanding shares, if any,
of APS subject to any Sell Order placed by such Existing Holder; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(D) to the extent such Bidder is a Potential Holder,
the rate per annum specified in such Potential Holder&#146;s Bid. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) If any rate per annum specified in any Bid
contains more than three figures to the right of the decimal point, the Auction Agent shall round such rate up to the next highest <FONT STYLE="white-space:nowrap">one-thousandth</FONT> (.001) of 1%. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) If an Order or Orders covering all of the Outstanding shares of APS held by an Existing Holder are not submitted to the
Auction Agent prior to the Submission Deadline, the Auction Agent shall deem a Hold Order (in the case of an Auction relating to a Special Dividend Period of 91 days or less) or a Sell Order (in the case of an Auction relating to a Special Dividend
Period of longer than 91 days) to have been submitted on behalf of such Existing Holder covering the number of Outstanding shares of APS held by such Existing Holder and not subject to Orders submitted to the Auction Agent. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) If one or more Orders on behalf of an Existing Holder covering in the aggregate more than the number of Outstanding
shares of APS held by such Existing Holder are submitted to the Auction Agent, such Order shall be considered valid as follows and in the following order of priority: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) any Hold Order submitted on behalf of such Existing Holder shall be considered valid up to and including the number of
Outstanding shares of APS held by such Existing Holder; provided that if more than one Hold Order is submitted on behalf of such Existing Holder and the number of shares of APS subject to such Hold Orders exceeds the number of Outstanding shares of
APS held by such Existing Holder, the number of shares of APS subject to each of such Hold Orders shall be reduced pro rata so that such Hold Orders, in the aggregate, will cover exactly the number of Outstanding shares of APS held by such Existing
Holder; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) any Bids submitted on behalf of such Existing Holder shall be considered valid, in the ascending order of
their respective rates per annum if more than one Bid is submitted on behalf of such Existing Holder, up to and including the excess of the number of Outstanding shares of APS held by such Existing Holder over the number of shares of APS subject to
any Hold Order referred to in Section&nbsp;11.10(c)(iv)(A) above (and if more than one Bid submitted on behalf of such Existing Holder specifies the same rate per annum and together they cover more than the remaining number of shares that can be the
subject of valid Bids after application of Section&nbsp;11.10(c)(iv)(A) above and of the foregoing portion of this Section&nbsp;11.10(c)(iv)(B) to any Bid or Bids specifying a lower rate or rates per annum, the number of shares subject to each of
such Bids shall be reduced pro rata so that such Bids, in the aggregate, cover exactly such remaining number of shares); and the number of shares, if any, subject to Bids not valid under this Section&nbsp;11.10(c)(iv)(B) shall be treated as the
subject of a Bid by a Potential Holder; and </P> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <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">-49- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(C) any Sell Order shall be considered valid up to and including the excess of
the number of Outstanding shares of APS held by such Existing Holder over the number of shares of APS subject to Hold Orders referred to in Section&nbsp;11.10(c)(iv)(A) and Bids referred to in Section&nbsp;11.10(c)(iv)(B); provided that if more than
one Sell Order is submitted on behalf of any Existing Holder and the number of shares of APS subject to such Sell Orders is greater than such excess, the number of shares of APS subject to each of such Sell Orders shall be reduced pro rata so that
such Sell Orders, in the aggregate, cover exactly the number of shares of APS equal to such excess. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) If more than one
Bid is submitted on behalf of any Potential Holder, each Bid submitted shall be a separate Bid with the rate per annum and number of shares of APS therein specified. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vi) Any Order submitted by a Beneficial Owner as a Potential Beneficial Owner to its Broker-Dealer, or by a Broker-Dealer to
the Auction Agent, prior to the Submission Deadline on any Auction Date shall be irrevocable. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vii) The Trust shall not
be responsible for a Broker-Dealer&#146;s failure to act in accordance with the instructions of Beneficial Owners or Potential Beneficial Owners or failure to comply with the provisions of this Section&nbsp;11.10. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <U>Determination of Sufficient Clearing Bids, Winning Bid Rate and Applicable Rate</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) Not earlier than the Submission Deadline on each Auction Date, the Auction Agent shall assemble all Orders submitted or
deemed submitted to it by the Broker-Dealers (each such Order as submitted or deemed submitted by a Broker-Dealer being hereinafter referred to individually as a &#147;Submitted Hold Order&#148;, a &#147;Submitted Bid&#148; or a &#147;Submitted Sell
Order&#148;, as the case may be, or as a &#147;Submitted Order&#148;) and shall determine: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) the excess of the total
number of Outstanding shares of APS over the number of Outstanding shares of APS that are the subject of Submitted Hold Orders (such excess being hereinafter referred to as the &#147;Available APS&#148;); </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) from the Submitted Orders whether the number of Outstanding shares of APS that are the subject of Submitted Bids by
Potential Holders specifying one or more rates per annum equal to or lower than the Maximum Applicable Rate exceeds or is equal to the sum of: </P>
 <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">-50- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) the number of Outstanding shares of APS that are the subject of Submitted
Bids by Existing Holders specifying one or more rates per annum higher than the Maximum Applicable Rate, and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) the
number of Outstanding shares of APS that are subject to Submitted Sell Orders (if such excess or such equality exists (other than because the number of Outstanding shares of APS in clause (1)&nbsp;above and this clause (2)&nbsp;are each zero because
all of the Outstanding shares of APS are the subject of Submitted Hold Orders), such Submitted Bids by Potential Holders being hereinafter referred to collectively as &#147;Sufficient Clearing Bids&#148;); and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(C) if Sufficient Clearing Bids exist, the lowest rate per annum specified in the Submitted Bids (the &#147;Winning Bid
Rate&#148;) that if: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) each Submitted Bid from Existing Holders specifying the Winning Bid Rate and all other Submitted
Bids from Existing Holders specifying lower rates per annum were rejected, thus entitling such Existing Holders to continue to hold the shares of APS that are the subject of such Submitted Bids, and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:18%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) each Submitted Bid from Potential Holders specifying the Winning Bid Rate and all other Submitted Bids from Potential
Holders specifying lower rates per annum were accepted, thus entitling the Potential Holders to purchase the shares of APS that are the subject of such Submitted Bids, would result in the number of shares subject to all Submitted Bids specifying the
Winning Bid Rate or a lower rate per annum being at least equal to the Available APS. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) Promptly after the Auction
Agent has made the determinations pursuant to Section&nbsp;11.10(d)(i), the Auction Agent shall advise the Trust of the Maximum Applicable Rate and, based on such determinations, the Applicable Rate for the next succeeding Dividend Period as
follows: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) if Sufficient Clearing Bids exist, that the Applicable Rate for the next succeeding Dividend Period shall be
equal to the Winning Bid Rate; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) if Sufficient Clearing Bids do not exist (other than because all of the Outstanding
shares of APS are the subject of Submitted Hold Orders), that the Applicable Rate for the next succeeding Dividend Period shall be equal to the Maximum Applicable Rate; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(C) if all of the Outstanding shares of APS are the subject of Submitted Hold Orders, that the Dividend Period next succeeding
the Auction shall automatically be the same length as the immediately preceding Dividend Period and the Applicable Rate for the next succeeding Dividend Period shall be equal to 40% of the Reference Rate (or 60% of such rate if the Trust has
provided notification to the Auction Agent prior to the Auction establishing the Applicable Rate for any dividend pursuant to Section&nbsp;11.2(f) hereof that net capital gains or other taxable income will be included in such dividend on shares of
APS) on the date of the Auction. </P>
 <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">-51- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <U>Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and</U> <U>Allocation
of Shares</U>. Based on the determinations made pursuant to Section&nbsp;11.10(d)(i), the Submitted Bids and Submitted Sell Orders shall be accepted or rejected and the Auction Agent shall take such other action as set forth below: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) If Sufficient Clearing Bids have been made, subject to the provisions of Section&nbsp;11.10(e)(iii) and
Section&nbsp;11.10(e)(iv), Submitted Bids and Submitted Sell Orders shall be accepted or rejected in the following order of priority and all other Submitted Bids shall be rejected: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) the Submitted Sell Orders of Existing Holders shall be accepted and the Submitted Bid of each of the Existing Holders
specifying any rate per annum that is higher than the Winning Bid Rate shall be accepted, thus requiring each such Existing Holder to sell the Outstanding shares of APS that are the subject of such Submitted Sell Order or Submitted Bid; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) the Submitted Bid of each of the Existing Holders specifying any rate per annum that is lower than the Winning Bid Rate
shall be rejected, thus entitling each such Existing Holder to continue to hold the Outstanding shares of APS that are the subject of such Submitted Bid; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(C) the Submitted Bid of each of the Potential Holders specifying any rate per annum that is lower than the Winning Bid Rate
shall be accepted; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(D) the Submitted Bid of each of the Existing Holders specifying a rate per annum that is equal to the
Winning Bid Rate shall be rejected, thus entitling each such Existing Holder to continue to hold the Outstanding shares of APS that are the subject of such Submitted Bid, unless the number of Outstanding shares of APS subject to all such Submitted
Bids shall be greater than the number of Outstanding shares of APS (&#147;Remaining Shares&#148;) equal to the excess of the Available APS over the number of Outstanding shares of APS subject to Submitted Bids described in
Section&nbsp;11.10(e)(i)(B) and Section&nbsp;11.10(e)(i)(C), in which event the Submitted Bids of each such Existing Holder shall be accepted, and each such Existing Holder shall be required to sell Outstanding shares of APS, but only in an amount
equal to the difference between (1)&nbsp;the number of Outstanding shares of APS then held by such Existing Holder subject to such Submitted Bid and (2)&nbsp;the number of shares of APS obtained by multiplying (x)&nbsp;the number of Remaining Shares
by (y)&nbsp;a fraction the numerator of which shall be the number of Outstanding shares of APS held by such Existing Holder subject to such Submitted Bid and the denominator of which shall be the sum of the number of Outstanding shares of APS
subject to such Submitted Bids made by all such Existing Holders that specified a rate per annum equal to the Winning Bid Rate; and </P>
 <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">-52- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(E) the Submitted Bid of each of the Potential Holders specifying a rate per
annum that is equal to the Winning Bid Rate shall be accepted but only in an amount equal to the number of Outstanding shares of APS obtained by multiplying (x)&nbsp;the difference between the Available APS and the number of Outstanding shares of
APS subject to Submitted Bids described in Section&nbsp;11.10(e)(i)(B), Section&nbsp;11.10(e)(i)(C) and Section&nbsp;11.10(e)(i)(D) by (y)&nbsp;a fraction the numerator of which shall be the number of Outstanding shares of APS subject to such
Submitted Bid and the denominator of which shall be the sum of the number of Outstanding shares of APS subject to such Submitted Bids made by all such Potential Holders that specified rates per annum equal to the Winning Bid Rate. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) If Sufficient Clearing Bids have not been made (other than because all of the Outstanding shares of APS are subject to
Submitted Hold Orders), subject to the provisions of Section&nbsp;11.10(e)(iii), Submitted Orders shall be accepted or rejected as follows in the following order of priority and all other Submitted Bids shall be rejected: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) the Submitted Bid of each Existing Holder specifying any rate per annum that is equal to or lower than the Maximum
Applicable Rate shall be rejected, thus entitling such Existing Holder to continue to hold the Outstanding shares of APS that are the subject of such Submitted Bid; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) the Submitted Bid of each Potential Holder specifying any rate per annum that is equal to or lower than the Maximum
Applicable Rate shall be accepted, thus requiring such Potential Holder to purchase the Outstanding shares of APS that are the subject of such Submitted Bid; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(C) the Submitted Bids of each Existing Holder specifying any rate per annum that is higher than the Maximum Applicable Rate
shall be accepted and the Submitted Sell Orders of each Existing Holder shall be accepted, in both cases only in an amount equal to the difference between (1)&nbsp;the number of Outstanding shares of APS then held by such Existing Holder subject to
such Submitted Bid or Submitted Sell Order and (2)&nbsp;the number of shares of APS obtained by multiplying (x)&nbsp;the difference between the Available APS and the aggregate number of Outstanding shares of APS subject to Submitted Bids described
in Section&nbsp;11.10(e)(ii)(A) and Section&nbsp;11.10(e)(ii)(B) by (y)&nbsp;a fraction the numerator of which shall be the number of Outstanding shares of APS held by such Existing Holder subject to such Submitted Bid or Submitted Sell Order and
the denominator of which shall be the number of Outstanding shares of APS subject to all such Submitted Bids and Submitted Sell Orders. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) If, as a result of the procedures described in Section&nbsp;11.10(e), any Existing Holder would be entitled or required
to sell, or any Potential Holder would be entitled or required to purchase, a fraction of a share of APS on any Auction Date, the Auction Agent shall, in such manner as in its sole discretion it shall determine, round up or down the number of shares
of APS to be purchased or sold by any Existing Holder or Potential Holder on such Auction Date so that each Outstanding share of APS purchased or sold by each Existing Holder or Potential Holder on such Auction Date shall be a whole share of APS.
</P>
 <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">-53- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) If, as a result of the procedures described in Section&nbsp;11.10(e), any
Potential Holder would be entitled or required to purchase less than a whole share of APS on any Auction Date, the Auction Agent shall, in such manner as in its sole discretion it shall determine, allocate shares of APS for purchase among Potential
Holders so that only whole shares of APS are purchased on such Auction Date by any Potential Holder, even if such allocation results in one or more of such Potential Holders not purchasing any shares of APS on such Auction Date. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) Based on the results of each Auction, the Auction Agent shall determine, with respect to each Broker-Dealer that submitted
Bids or Sell Orders on behalf of Existing Holders or Potential Holders, the aggregate number of Outstanding shares of APS to be purchased and the aggregate number of the Outstanding shares of APS to be sold by such Potential Holders and Existing
Holders and, to the extent that such aggregate number of Outstanding shares to be purchased and such aggregate number of Outstanding shares to be sold differ, the Auction Agent shall determine to which other Broker-Dealer or Broker-Dealers acting
for one or more purchasers such Broker-Dealer shall deliver, or from which other Broker-Dealer or Broker-Dealers acting for one or more sellers such Broker-Dealer shall receive, as the case may be, Outstanding shares of APS. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) <U>Miscellaneous</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) The Trust may interpret the provisions of this Section&nbsp;11.10 to resolve any inconsistency or ambiguity, remedy any
formal defect or make any other change or modification that does not substantially adversely affect the rights of Beneficial Owners of APS. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) A Beneficial Owner or an Existing Holder (A)&nbsp;may sell, transfer or otherwise dispose of shares of APS only pursuant
to a Bid or Sell Order in accordance with the procedures described in this Section&nbsp;11.10 or to or through a Broker-Dealer or to such other persons as may be permitted by the Trust, provided that in the case of all transfers other than pursuant
to Auctions such Beneficial Owner or Existing Holder, its Broker-Dealer, if applicable, or its Agent Member advises the Auction Agent of such transfer and (B)&nbsp;except as otherwise required by law, shall have the ownership of the shares of APS
held by it maintained in book entry form by the Securities Depository in the account of its Agent Member, which in turn will maintain records of such Beneficial Owner&#146;s beneficial ownership. The Trust may not submit an Order in any Auction.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) All of the Outstanding shares of APS of a series shall be registered in the name of the nominee of the Securities
Depository unless otherwise required by law or unless there is no Securities Depository. If there is no Securities Depository, at the Trust&#146;s option and upon its receipt of such documents as it deems appropriate, any shares of APS may be
registered in the Stock Register in the name of the Beneficial Owner thereof and such Beneficial Owner thereupon will be entitled to receive certificates therefor and required to deliver certificates therefor upon transfer or exchange thereof. </P>
 <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">-54- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.11 <U>Securities Depository; Stock Certificates</U>. (a)&nbsp;If there is a Securities
Depository, all of the shares of APS of each series shall be issued to the Securities Depository and registered in the name of the Securities Depository or its nominee. Certificates may be issued as necessary to represent shares of APS. All such
certificates shall bear a legend to the effect that such certificates are issued subject to the provisions restricting the transfer of shares of APS contained in these <FONT STYLE="white-space:nowrap">By-Laws.</FONT> Unless the Trust shall have
elected, during a <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period, to waive this requirement, the Trust will also issue stop-transfer instructions to the Auction Agent for the shares of APS. Except as provided in paragraph (b)&nbsp;below,
the Securities Depository or its nominee will be the Holder, and no Beneficial Owner shall receive certificates representing its ownership interest in such shares. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) If the Applicable Rate applicable to all shares of APS of a series shall be the <FONT STYLE="white-space:nowrap">Non-Payment</FONT> Period
Rate or there is no Securities Depository, the Trust may at its option issue one or more new certificates with respect to such shares (without the legend referred to in Section&nbsp;11.11(a)) registered in the names of the Beneficial Owners or their
nominees and rescind the stop-transfer instructions referred to in Section&nbsp;11.11(a) with respect to such shares. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 12
</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Amended and Restated Statement Establishing and Fixing the Rights and Preferences of </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>the Remarketable Variable Rate MuniFund Term Preferred Shares </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">12.1 <U>General</U>. The RVMTP Shares Statement is attached to these Bylaws as Exhibit 1, which is hereby incorporated by reference into and
made a part of these Bylaws. These Bylaws and the RVMTP Shares Statement are intended such that the APS and the RVMTP Shares are in parity with each other, such that neither shall have a preference or priority over the other with respect to the
payment of dividends and the distribution of assets of the Trust upon dissolution, liquidation, or winding up of the affairs of the Trust, and shall be interpreted accordingly. Unless otherwise provided, defined terms used in Article 11 hereto apply
only to the APS and defined terms used in the RVMTP Shares Statement apply only to the RVMTP Shares. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE 13 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Amendment to the Bylaws </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">13.1 <U>General</U>. Except to the extent that the Declaration of Trust or applicable law require a vote or consent of Shareholders, these
Bylaws may be amended, changed, altered or repealed, in whole or part, only by resolution of a majority of the Trustees then in office at any meeting of the Trustees, or by one or more writings signed by such Trustees. </P>
 <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">-55- </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">13.2 <U>Article 11</U>. Without limiting the provisions of Section&nbsp;13.1, the Board of
Trustees may, by resolution duly adopted, without shareholder approval (except as otherwise required by Article 11 or required by applicable law), amend Article 11 to (a)&nbsp;reflect any amendments hereto which the Board of Trustees is entitled to
adopt pursuant to the terms of Article 11 without shareholder approval or (b)&nbsp;add additional series of APS or additional shares of a series of APS (and terms relating thereto) to the series and shares of APS described herein. Each such
additional series and all such additional APS shall be governed by the terms of Article 11. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">13.3 <U>RVMTP Shares Statement</U>. Without
limiting the provisions of Section&nbsp;13.1, the Board of Trustees may, by resolution duly adopted, without shareholder approval (except as otherwise required by the RVMTP Shares Statement or required by applicable law), amend the Exhibit 1 hereto
to (a)&nbsp;reflect any amendments hereto which the Board of Trustees is entitled to adopt pursuant to the terms of the RVMTP Shares Statement without shareholder approval or (b)&nbsp;add additional series of RVMTP Shares or additional shares of a
series of RVMTP Shares (and terms relating thereto) to the series and shares of RVMTP Shares described therein. Each such additional series and all such additional RVMTP Shares shall be governed by the terms of the RVMTP Shares Statement. </P>
 <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">-56- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Exhibit 1 </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Amended and Restated Statement Establishing and Fixing the Rights and Preferences of </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>the Remarketable Variable Rate MuniFund Term Preferred Shares </U></B></P>
 <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">-57- </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AMENDED AND RESTATED STATEMENT ESTABLISHING AND FIXING THE </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RIGHTS AND PREFERENCES OF REMARKETABLE VARIABLE RATE MUNIFUND </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TERM PREFERRED SHARES </B></P>

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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TABLE OF CONTENTS </B></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 WIDTH="3%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="93%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center"><B>Page</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">RECITALS</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">DEFINITIONS</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">1.1</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Definitions</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">1.2</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Interpretation</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">15</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">1.3</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Liability of Officers, Trustees and Shareholders</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">TERMS APPLICABLE TO ALL SERIES OF REMARKETABLE VARIABLE RATE MUNIFUND TERM PREFERRED
SHARES</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.1</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Number of Shares; Ranking</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.2</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Dividends and Distributions</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">17</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.3</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Liquidation Rights</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">22</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.4</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Coverage&nbsp;&amp; Leverage Tests</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">24</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.5</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Mandatory Tender and Remarketing</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.6</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Redemption</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">29</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.7</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Voting Rights</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">40</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.8</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Rating Agencies</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.9</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Issuance of Additional Preferred Shares</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.10</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Status of Redeemed or Repurchased RVMTP Shares</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.11</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Distributions with respect to Taxable Allocations</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.12</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Term Redemption Liquidity Account and Liquidity Requirement</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">47</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.13</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Global Certificate</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">49</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.14</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Notice</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">49</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.15</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Termination</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">49</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.16</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Appendices</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">50</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.17</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Actions on Other than Business Days</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">50</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.18</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Modification</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">50</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.19</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Transfers</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">50</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="4"></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; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2.20</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>No Additional Rights</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">51</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
</TABLE>

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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AMENDED AND RESTATED STATEMENT ESTABLISHING AND FIXING THE </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RIGHTS AND PREFERENCES OF REMARKETABLE VARIABLE RATE MUNIFUND </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TERM PREFERRED SHARES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">PIMCO California Municipal Income Fund (the &#147;<U>Fund</U>&#148;), a Massachusetts business trust, certifies that: </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RECITALS </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>FIRST</B>:
The Fund is authorized under Article III of the Fund&#146;s Agreement and Declaration of Trust, as amended (which, as hereafter restated or amended from time to time, is herein called the &#147;<U>Declaration</U>&#148;), to issue an unlimited number
of Preferred Shares (as defined below), par value $0.00001 per share. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>SECOND</B>: Pursuant to the authority expressly vested in the
Board of Trustees of the Fund by Article III of the Declaration, effective August&nbsp;23, 2018, the Board of Trustees, by resolution, authorized the issuance of Preferred Shares, $0.00001 par value per share, of the Fund, such shares initially
classified as Variable Rate MuniFund Term Preferred Shares (&#147;<U>VMTP</U>&#148;) and issued in one or more series (each such series, a &#147;<U>Series</U>&#148;) on September&nbsp;18, 2018. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>THIRD</B>: Pursuant to the authority expressly vested in the Board of Trustees of the Fund by Article III of the Declaration, effective
June&nbsp;30, 2021, the Board of Trustees, by resolution, authorized the redesignation of the VMTP of the Fund as Remarketable Variable Rate MuniFund Term Preferred Shares (&#147;<U>RVMTP</U>&#148;). The date of such Redesignation, the
&#147;<U>Redesignation Date</U>&#148;. The terms related to a Series may be set forth in this Statement through an Appendix (as defined below) attached hereto or in a separate Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>FOURTH</B>: The number of shares, preferences, voting powers, restrictions, limitations as to dividends, qualifications, and terms and
conditions of redemption, of each Series of RVMTP subject to this Statement, as now or hereafter authorized by the Board of Trustees, are set forth in this Statement, as modified, amended or supplemented from time to time in an appendix to this
Statement (each, an &#147;<U>Appendix</U>&#148; and collectively, the &#147;<U>Appendices</U>&#148;) specifically relating to such Series as now or hereafter authorized by the Board of Trustees (each such Series being referred to herein as a
&#147;<U>Series of RVMTP Shares</U>,&#148; &#147;<U>RVMTP Shares of a Series</U>&#148; or a &#147;<U>Series</U>,&#148; and shares of all such Series subject to this Statement being referred to herein individually as a &#147;<U>RVMTP Share</U>&#148;
and collectively as the &#147;<U>RVMTP Shares</U>&#148;). </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>DEFINITIONS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">1.1 <U>Definitions</U>. Unless the context or use indicates another or different meaning or intent and except with respect to any Series as
specifically provided in the Appendix applicable to such Series, each of the following terms when used in this Statement shall have the meaning ascribed to it below, whether such term is used in the singular or plural and regardless of tense: </P>
 <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">1 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>1940 Act</U>&#148; means the Investment Company Act of 1940, as amended, and the rules
and regulations thereunder, or any successor statute. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>1940 Act Asset Coverage</U>&#148; means &#147;asset coverage,&#148; as
defined for purposes of Section&nbsp;18(h) of the 1940 Act, of at least 200% with respect to all outstanding senior securities of the Fund which are stocks for purposes of the 1940 Act, including all outstanding RVMTP Shares and Auction Preferred
Shares (or such other asset coverage as may in the future be specified in or under the 1940 Act or by rule, regulation or order of the United States Securities and Exchange Commission as the minimum asset coverage for senior securities which are
shares of stock of a <FONT STYLE="white-space:nowrap">closed-end</FONT> investment company), determined on the basis of values calculated as of a time within 48 hours (only including Business Days) next preceding the time of such determination. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>1940 Act Asset Coverage Cure Date</U>&#148; means, with respect to the failure by the Fund to maintain the 1940 Act Asset Coverage
(as required by this Statement) as of the last Business Day of each month, the last Business Day of the following month. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Additional Amount Payment</U>&#148; means a payment to a Holder (other than a State Holder) of an amount which, when combined with
the amount of the portion of any dividend to which a Taxable Allocation relates, and after imposition of U.S. federal income tax, taking into account the assumptions in the immediately following sentence, equals the after tax dollar amount of the
dividend that would have been received by such Holder if no Taxable Allocation had been made with respect to such dividend. Such Additional Amount Payment shall be calculated (i)&nbsp;without consideration being given to the time value of money;
(ii)&nbsp;assuming that no Holder is subject to the federal alternative minimum tax with respect to dividends received from the Fund; and (iii)&nbsp;assuming that each Taxable Allocation and each Additional Amount Payment (except to the extent such
Additional Amount Payment is reported as an exempt-interest dividend for purposes of Section&nbsp;852(b)(5) of the Code) would be taxable, (x)&nbsp;in the case of the Purchaser (or (1)&nbsp;any entity taxed as a corporation that (i)&nbsp;joins in
filing a consolidated federal corporate income tax return with the Purchaser, or (ii)&nbsp;is otherwise an affiliate of the Purchaser and is taxed as a corporation (excluding any such entity that is taxed as a regulated investment company under
Subchapter M of the Code), or (2)&nbsp;any entity that is a direct or indirect wholly-owned subsidiary of one or more of the entities described in clause (1) (each of the entities described in clauses (1)&nbsp;or (2), a &#147;<U>Corporate
Affiliate</U>&#148;)) at the maximum marginal regular federal corporate income tax rate applicable to ordinary income or net capital gain, as applicable, in effect at the time such Additional Amount Payment is paid, disregarding in each case the
effect of any state or local taxes, or (y)&nbsp;in the case of any other Holder at the greater of (A)&nbsp;the rate expressed in clause (x), or (B)&nbsp;the maximum marginal regular federal individual income tax rate applicable to ordinary income or
net capital gain, as applicable, in effect at the time such Additional Amount Payment is paid, disregarding in each case the effect of any state or local taxes, assuming that section 1411 of the Code is applicable. </P>
 <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">2 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Additional State Amount Payment</U>&#148; means a payment to a State Holder of an amount
which, when combined with the amount of the portion of any dividend to which a Taxable Allocation relates, and after imposition of U.S. federal income tax and California income tax, taking into account the assumptions in the immediately following
sentence, equals the after tax dollar amount of the dividend that would have been received by such State Holder if no Taxable Allocation had been made with respect to such dividend. Such Additional State Amount Payment shall be calculated
(i)&nbsp;without consideration being given to the time value of money; (ii)&nbsp;assuming that no State Holder is subject to the federal alternative minimum tax with respect to dividends received from the Fund; and (iii)&nbsp;assuming that each
Taxable Allocation and each Additional State Amount Payment (except to the extent such Additional State Amount Payment is reported as an exempt-interest dividend for purposes of Section&nbsp;852(b)(5) of the Code) would be taxable, (x)&nbsp;in the
case of the Purchaser (or any Corporate Affiliate), at the maximum marginal combined regular federal and California corporate income tax rate (taking account of the federal income tax deductibility of state and local taxes paid or incurred)
applicable to ordinary income or net capital gains, as applicable, in effect at the time such Additional State Amount Payment is paid or (y)&nbsp;in the case of any other State Holder, the maximum marginal combined regular federal and California
individual income tax rate (taking account of the federal income tax deductibility of state and local taxes paid or incurred) applicable to ordinary income or net capital gains, as applicable, in effect at the time such Additional State Amount
Payment is paid, assuming that section 1411 of the Code is applicable. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Adviser</U>&#148; means Pacific Investment Management
Company LLC, a Delaware limited liability company, or such other entity as shall be then serving as the investment adviser of the Fund, and shall include, as appropriate, any <FONT STYLE="white-space:nowrap">sub-adviser</FONT> duly appointed by the
Adviser. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Agent Member</U>&#148; means a Person with an account at the Securities Depository that holds one or more RVMTP Shares
through the Securities Depository, directly or indirectly, for a Designated Owner and that will be authorized and instructed, directly or indirectly, by a Designated Owner to disclose information to the Remarketing Settlement Agent, if any, and/or
the Calculation and Paying Agent with respect to such Designated Owner. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Appendices</U>&#148; and &#147;<U>Appendix</U>&#148;
shall have the respective meanings as set forth in the Recitals of this Statement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Applicable Multiplier</U>&#148; means, with
respect to any Rate Period for any Series of RVMTP Shares, the percentage set forth opposite the applicable credit rating most recently assigned to such Series by the Rating Agency in the table below on the Rate Determination Date for such Rate
Period: </P>
 <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">3 </P>


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


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="68%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD WIDTH="78%"></TD>

<TD VALIGN="bottom" WIDTH="19%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; " ALIGN="center"><B>Long-Term
Ratings*</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; "><B>Fitch</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Applicable&nbsp;Multiplier</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">AAA to AA-</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">100</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">A+ to A-</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">115</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">BBB+ to BBB-</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">140</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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">*</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">And/or the equivalent ratings of any other Rating Agency then rating the RVMTP Shares utilizing the highest of
the ratings of the Rating Agencies then rating the RVMTP Shares. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Applicable Spread&#148; means, with respect
to any Rate Period for any Series of RVMTP Shares, the percentage per annum set forth opposite the applicable credit rating most recently assigned to such Series by the Rating Agency in the table below on the Rate Determination Date for such Rate
Period: </U></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="68%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD WIDTH="78%"></TD>

<TD VALIGN="bottom" WIDTH="19%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; " ALIGN="center"><B>Long-Term
Ratings*</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; "><B>Fitch</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Applicable&nbsp;Spread**</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">AAA to AA-</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">0.92</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">A+ to A-</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">1.12</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">BBB+ to BBB-</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">1.92</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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">*</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">And/or the equivalent ratings of any other Rating Agency then rating the RVMTP Shares utilizing the highest of
the ratings of the Rating Agencies then rating the RVMTP Shares. </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">**</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Unless an Increased Rate Period is in effect and is continuing, in which case the Applicable Spread shall be
5.92%. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Auction Preferred Shares</U>&#148; means the Auction Preferred Shares of the Fund, the preferences,
voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption as set forth in the Auction Preferred Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Auction Preferred Statement</U>&#148; means Article 11 (Statement Creating Three Series of Auction Preferred Shares) of the Amended
and Restated Bylaws of the Fund as of June&nbsp;30, 2021. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Banks</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.19(a)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Below Investment Grade</U>&#148; means, with respect to any Series of RVMTP Shares
and as of any date, the following ratings with respect to each Rating Agency (to the extent it is a Rating Agency on such date): </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) lower than <FONT STYLE="white-space:nowrap">BBB-,</FONT> in the case of Fitch; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) lower than an equivalent long-term credit rating to that set forth in clause (i), in the case of any Other Rating Agency.
</P>
 <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">4 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Board of Trustees</U>&#148; means the Board of Trustees of the Fund or any duly
authorized committee thereof as permitted by applicable law. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Business Day</U>&#148; means any day (a)&nbsp;other than a day on
which commercial banks in The City of New York, New York are required or authorized by law or executive order to close and (b)&nbsp;on which the New York Stock Exchange is not closed. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U><FONT STYLE="white-space:nowrap">By-Laws</FONT></U>&#148; means the <FONT STYLE="white-space:nowrap">By-Laws</FONT> of the Fund as
amended or restated from time to time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Calculation and Paying Agent</U>&#148; means, with respect to any Series, The Bank of New
York Mellon and its successors or any other calculation and paying agent appointed by the Fund with respect to such Series. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Calculation and Paying Agent Agreement</U>&#148; means, with respect to any Series, the Calculation and Paying Agent Agreement dated
September&nbsp;18, 2018 by and among the Calculation and Paying Agent, the Fund and certain other Persons, and as the same may be amended, restated or modified from time to time, or any similar agreement between the Fund and any other calculation
and paying agent appointed by the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U><FONT STYLE="white-space:nowrap">Closed-End</FONT> Funds</U>&#148; shall have the
meaning as set forth in <U>Section</U><U></U><U>&nbsp;2.19(a)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Code</U>&#148; means the Internal Revenue Code of 1986, as
amended. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Common Shares</U>&#148; means the common shares of beneficial interest, par value $0.00001 per share, of the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Conditional Acceptance</U>&#148; shall have the meaning as set forth in <U>Section</U> <U>2.6(a)(ii)(B)</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Corporate Affiliate</U>&#148; shall have the meaning as set forth in the definition of &#147;Additional Amount Payment&#148; in this
<U>Section</U><U></U><U>&nbsp;1.1</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Custodian</U>&#148; means a bank, as defined in Section&nbsp;2(a)(5) of the 1940 Act,
that has the qualifications prescribed in paragraph 1 of Section&nbsp;26(a) of the 1940 Act, or such other entity as shall be providing custodian services to the Fund as permitted by the 1940 Act or any rule, regulation, or order thereunder, and
shall include, as appropriate, any similarly qualified <FONT STYLE="white-space:nowrap">sub-custodian</FONT> duly appointed by the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Custodian Agreement</U>&#148; means any Custodian Agreement by and between the Custodian and the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Date of Original Issuance</U>&#148; means, with respect to any Series, the date specified as the Date of Original Issuance for such
Series in the Appendix for such Series. </P>
 <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">5 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Declaration</U>&#148; shall have the meaning as set forth in the Recitals of this
Statement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Default</U>&#148; shall mean a Dividend Default or a Redemption Default. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Deposit Securities</U>&#148; means, as of any date, any United States dollar-denominated security or other investment of a type
described below that either (i)&nbsp;is a demand obligation payable to the holder thereof on any Business Day or (ii)&nbsp;has a maturity date, mandatory redemption date or mandatory payment date, on its face or at the option of the holder,
preceding the relevant Redemption Date, Dividend Payment Date or other payment date in respect of which such security or other investment has been deposited or set aside as a Deposit Security: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(1) cash or any cash equivalent; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(2) any U.S. Government Obligation; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(3) any Municipal Security that has a credit rating from at least one NRSRO that is the highest applicable rating generally
ascribed by such NRSRO to Municipal Securities with substantially similar terms as of the date of this Statement (or such rating&#146;s future equivalent or, if not rated, as determined by PIMCO to be of comparable quality), including (A)&nbsp;any
such Municipal Security that has been <FONT STYLE="white-space:nowrap">pre-refunded</FONT> by the issuer thereof with the proceeds of such refunding having been irrevocably deposited in trust or escrow for the repayment thereof and (B)&nbsp;any such
fixed or variable rate Municipal Security that qualifies as an eligible security under Rule <FONT STYLE="white-space:nowrap">2a-7</FONT> under the 1940 Act; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(4) any investment in any money market fund registered under the 1940 Act that qualifies under Rule <FONT
STYLE="white-space:nowrap">2a-7</FONT> under the 1940 Act, or similar investment vehicle described in Rule <FONT STYLE="white-space:nowrap">12d1-1(b)(2)</FONT> under the 1940 Act, that invests principally in Municipal Securities or U.S. Government
Obligations or any combination thereof; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(5) any letter of credit from a bank or other financial institution that has a
credit rating from at least one NRSRO that is the highest applicable rating generally ascribed by such NRSRO to bank deposits or short-term debt of similar banks or other financial institutions as of the date of this Statement (or such rating&#146;s
future equivalent or, if not rated, as determined by PIMCO to be of comparable quality). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Designated Owner</U>&#148; means a
Person in whose name RVMTP Shares of any Series are recorded as beneficial owner of such RVMTP Shares by the Securities Depository, an Agent Member or other securities intermediary on the records of such Securities Depository, Agent Member or
securities intermediary, as the case may be. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Designated Owner Term Extension Request</U>&#148; shall have the meaning as set
forth in <U>Section</U><U></U><U>&nbsp;2.6(a)(ii)(A)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Dividend Default</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.2(g)(i)</U>. </P>
 <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">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Dividend Payment Date</U>&#148; means, with respect to any Series, the first Business
Day of each calendar month that any shares of such Series are outstanding; <U>provided</U>, <U>however</U>, that with respect to any Series for which the first Dividend Period, as specified in the Appendix relating to such Series, is longer than one
month, the first Dividend Payment Date for such Series shall be the first Business Day of the calendar month immediately following the end of such Dividend Period. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Dividend Period</U>&#148; means, with respect to any Series, the Dividend Period for such Series set forth in the Appendix for such
Series. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Dividend Rate</U>&#148; means, with respect to any Rate Period for a Series of RVMTP Shares and subject to the
adjustment described in <U>Section</U><U></U><U>&nbsp;2.11(a)</U>, the greater of (i)&nbsp;the sum of the Index Rate for such Rate Period <U>plus</U> the Applicable Spread for such Rate Period <U>plus</U> the Failed Remarketing Spread (if
applicable) and (ii)&nbsp;the sum of (a)&nbsp;the product of the Index Rate for such Rate Period <U>multiplied by</U> the Applicable Multiplier for such Rate Period <U>plus</U> (b) 0.92% <U>plus</U> (c)&nbsp;the Failed Remarketing Spread (if
applicable); <U>provided</U>, <U>however</U>, that with respect to any Increased Rate Period, the Dividend Rate shall mean the Increased Rate for such Increased Rate Period; and <U>provided</U> <U>further</U> that the Dividend Rate for any Rate
Period shall in no event exceed the Maximum Rate. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Early Term Redemption Date</U>&#148; means, with respect to any Series, the
date specified as the Early Term Redemption Date (if any) in the Appendix for such Series. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Effective Leverage Ratio</U>&#148;
shall have the meaning as set forth in <U>Section</U><U></U><U>&nbsp;2.4(d)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Effective Leverage Ratio Cure Date</U>&#148;
shall have the meaning as set forth in <U>Section</U> <U>2.6(b)(ii)(A)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Electronic Means</U>&#148; means email transmission,
facsimile transmission or other similar electronic means of communication providing evidence of transmission (but excluding online communications systems covered by a separate agreement) acceptable to the sending party and the receiving party, in
any case if operative as between any two parties, or, if not operative, by telephone (promptly confirmed by any other method set forth in this definition), which, in the case of notices to the Calculation and Paying Agent and the Custodian, shall be
sent by such means to each of its representatives set forth in the Calculation and Paying Agent Agreement and the Custodian Agreement, respectively. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Exchange Act</U>&#148; means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Failed Early Term Redemption Date Remarketing</U>&#148; shall have the meaning set forth in
<U>Section</U><U></U><U>&nbsp;2.5(c)(i)</U> </P>
 <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">7 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Failed Special Terms Period Remarketing</U>&#148; shall have the meaning set forth in
<U>Section</U><U></U><U>&nbsp;2.5(c)(ii)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Failed Remarketing Spread</U>&#148; means (a)&nbsp;in the case of a Failed Special
Terms Period Remarketing, (i)&nbsp;for so long as two or more Failed Special Terms Period Remarketings have not occurred, 0.05%, and (ii)&nbsp;following the second occurrence of a Failed Special Terms Period Remarketing, 0.10% multiplied by the
number of Failed Special Terms Period Remarketings that have occurred after the first Failed Special Terms Period Remarketing, and (b)&nbsp;in the case of a Failed Early Term Redemption Date Remarketing: (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 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 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 RVMTP Shares. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Fitch</U>&#148; means Fitch Ratings, a part of the Fitch Group, and any successor or successors thereto. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Fund</U>&#148; shall have the meaning as set forth in the Preamble to this Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Holder</U>&#148; means, with respect to the RVMTP Shares of any Series or any other security issued by the Fund, a Person in whose
name such security is registered in the registration books of the Fund maintained by the Calculation and Paying Agent or otherwise. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Holder Term Extension Request</U>&#148; shall have the meaning as set forth in <U>Section 2.6(a)(iii)</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Increased Rate</U>&#148; means, with respect to any Increased Rate Period for a Series of RVMTP Shares, the Index Rate for such
Increased Rate Period plus an Applicable Spread of 5.92%. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Increased Rate Period</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.2(g)(i)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Index Rate</U>&#148; means, with respect to any Rate Period for a Series of RVMTP
Shares, the SIFMA Municipal Swap Index made available by 3:00 p.m., New York City time, as determined on the Rate Determination Date relating to such Rate Period or, except as otherwise provided in the definition of &#147;SIFMA Municipal Swap
Index&#148; if such index is not made available by 5:00 p.m., New York City time, on such date, the SIFMA Municipal Swap Index as determined on the previous Rate Determination Date; provided, however, if the SIFMA Municipal Swap Index is less than
zero (0), the SIFMA Municipal Swap Index will be deemed to be zero (0)&nbsp;for purposes of the determination of the &#147;Index Rate&#148;. </P>
 <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">8 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Initial Rate Period</U>&#148; means, with respect to the RVMTP Shares of any Series, the
period commencing on and including the Date of Original Issuance thereof and ending on, and including, the next succeeding calendar day that is a Wednesday (or if such Wednesday is not a Business Day, the next succeeding Business Day). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Liquidation Preference</U>&#148; means, with respect to any Series, the amount specified as the liquidation preference per share for
that Series in the Appendix for such Series. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Liquidity Account Initial Date</U>&#148; means, with respect to any Series, the
date designated as the Liquidity Account Initial Date in the Appendix for such Series. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Liquidity Account Investments</U>&#148;
means Deposit Securities or any other security or investment owned by the Fund that is rated not less than A3 by Moody&#146;s, <FONT STYLE="white-space:nowrap">A-</FONT> by Standard&nbsp;&amp; Poor&#146;s, <FONT STYLE="white-space:nowrap">A-</FONT>
by Fitch or an equivalent rating by any other NRSRO (or any such rating&#146;s future equivalent) or if not rated, determined by the Adviser to be of comparable quality. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Liquidity Requirement</U>&#148; shall have the meaning as set forth in <U>Section</U><U></U><U>&nbsp;2.12(b)</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Mandatory 1940 Act Asset Coverage Redemption Price</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.6(b)(i)(A)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Mandatory Tender</U>&#148; means, in connection with a Remarketing, the required
tender of all RVMTP Shares of a particular Series (except to the extent affirmatively retained by any applicable Holder of RVMTP Shares of such Series pursuant to <U>Section</U><U></U><U>&nbsp;2.5(a)(iv)</U>) to the Remarketing Settlement Agent for
purchase on the applicable Mandatory Tender Date </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Mandatory Tender Date</U>&#148; shall have the meaning as set forth in
<U>Section 2.5(a)(iii)(C)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Mandatory Tender Event</U>&#148; shall have the meaning as set forth in <U>Section
2.5(a)(i)(C)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Mandatory Tender Redemption Date</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.6(a)(iv)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Mandatory Tender Redemption Price</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.6(a)(iv)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Market Value</U>&#148; of any asset of the Fund means, for securities for which
market quotations are readily available, the market value thereof determined on the basis of official closing prices or the last reported sales prices on the valuation date, or if no sales are reported on the valuation date, based on quotes obtained
from established market makers or prices (including evaluated prices) supplied by the Fund&#146;s approved pricing services, quotation reporting systems and other third-party sources. Investments for which market quotes or market based valuations
are not readily available are valued at fair value as determined in good faith by the Board of Trustees or persons acting at their direction. </P>
 <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">9 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Maximum Rate</U>&#148; means 15% per annum. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Moody&#146;s</U>&#148; means Moody&#146;s Investors Service, Inc. and any successor or successors thereto. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Municipal Securities</U>&#148; means municipal securities as described under the heading &#147;Portfolio Contents&#148; in the
prospectus or other offering document for a Series of RVMTP Shares. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>No Adverse Effect Opinion</U>&#148; means an opinion of
independent counsel nationally recognized for having expertise in the taxation of regulated investment companies to the effect that the requested action, if undertaken, will not have an adverse effect on any of the opinions of counsel delivered in
connection with the issuance of the RVMTP Shares. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Notice of Mandatory Tender</U>&#148; shall have the meaning set forth in
<U>Section</U><U></U><U>&nbsp;2.5(a)(ii)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Notice of Redemption</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.6(d)(i)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Notice of Special Terms Period</U>&#148; shall have the meaning as set forth in
<U>Section 2.2(h)(iii)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Notice of Taxable Allocation</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.11(a)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>NRSRO</U>&#148; means (a)&nbsp;each of Fitch, Moody&#146;s and Standard&nbsp;&amp;
Poor&#146;s so long as such Person is a nationally recognized statistical rating organization within the meaning of Section&nbsp;3(a)(62) of the Exchange Act and (b)&nbsp;any other nationally recognized statistical rating organization within the
meaning of Section&nbsp;3(a)(62) of the Exchange Act that is not an &#147;affiliated person&#148; (as defined in Section&nbsp;2(a)(3) of the 1940 Act) of the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Optional Redemption Date</U>&#148; shall have the meaning as set forth in <U>Section</U><U></U><U>&nbsp;2.6(c)(i)</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Optional Redemption Premium</U>&#148; means, with respect to any Series, the premium payable by the Fund upon the redemption of RVMTP
Shares of such Series at the option of the Fund, as set forth in the Appendix for such Series. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Optional Redemption
Price</U>&#148; shall have the meaning as set forth in <U>Section</U><U></U><U>&nbsp;2.6(c)(i)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Other Rating
Agency</U>&#148; means each Rating Agency, if any, other than Fitch, Standard&nbsp;&amp; Poor&#146;s, or Moody&#146;s then providing a rating for the RVMTP Shares pursuant to the request of the Fund and with the consent of the Holders of a majority
of the RVMTP Shares, which shall not be unreasonably withheld by such Holders. </P>
 <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">10 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Outstanding</U>&#148; means, as of any date with respect to RVMTP Shares of any Series,
the number of RVMTP Shares of such Series theretofore issued by the Fund except (without duplication): </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) any RVMTP
Shares of such Series theretofore exchanged, cancelled, retired or redeemed or delivered to the Calculation and Paying Agent for cancellation or redemption in accordance with the terms hereof; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) any RVMTP Shares of such Series as to which the Fund shall has given a Notice of Redemption and irrevocably deposited with
the Calculation and Paying Agent sufficient Deposit Securities to redeem such shares in accordance with <U>Section</U><U></U><U>&nbsp;2.6 </U>hereof; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) any RVMTP Shares of such Series as to which the Fund is the Holder or the Designated Owner. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Person</U>&#148; means and includes an individual, a partnership, a trust, a corporation, a limited liability company, an
unincorporated association, a joint venture or other entity or a government or any agency or political subdivision thereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>PIMCO Person</U>&#148; means the Adviser or any affiliated person (as defined in Section&nbsp;2(a)(3) of the 1940 Act) of the Adviser
(other than the Fund, in the case of a redemption or purchase of the RVMTP Shares which are to be cancelled within ten (10)&nbsp;calendar days of purchase by the Fund). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Preferred Shares</U>&#148; means the authorized preferred shares of beneficial interest of the Fund, including RVMTP Shares of each
Series, Auction Preferred Shares, shares of any other series of preferred shares of beneficial interest now or hereafter issued by the Fund, and any other shares of beneficial interest hereafter authorized and issued by the Fund of a class having
priority over another class as to distribution of assets or payments of dividends. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Pro Rata Allocation</U>&#148; shall have the
meaning set forth in <U>Section</U><U></U><U>&nbsp;2.6(b)(i)(A)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Purchase Agreement</U>&#148; means (i)&nbsp;with respect to
the initial Series of RVMTP Shares issued pursuant to this Statement, the Purchase Agreement to be dated as of September&nbsp;18, 2018 between the Fund and the Purchaser, in any case, as such agreement may be amended, restated, or modified from time
to time, including, without limitation, the amendment and restatement of such Purchase Agreement dated as of July&nbsp;14, 2021 and (ii)&nbsp;with respect to any subsequent Series of RVMTP Shares issued pursuant to this Statement, the purchase
agreement or other similar agreement for the RVMTP Shares of such Series (if any) specified in the Appendix for such Series, in any case, as such agreement may be amended, restated, or modified from time to time. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Purchaser</U>&#148; means, Wells Fargo Municipal Capital Strategies, LLC, a wholly-owned subsidiary of Wells Fargo&nbsp;&amp;
Company. </P>
 <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">11 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Rate Determination Date</U>&#148; means, with respect to the Initial Rate Period for any
Series of RVMTP Shares, the calendar day immediately preceding the Date of Original Issuance of such Series, and with respect to any Subsequent Rate Period for any Series of RVMTP Shares, the last calendar day of the immediately preceding Rate
Period for such Series or, if such calendar day is not a Business Day, the next succeeding Business Day; <U>provided</U>, <U>however</U>, that the next succeeding Rate Determination Date will be determined without regard to any prior extension of a
Rate Determination Date to a Business Day. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Rate Period</U>&#148; means, with respect to any Series of RVMTP Shares, the Initial
Rate Period and any Subsequent Rate Period of the RVMTP Shares of such Series. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Rating Agency</U>&#148; means, as of any date and
in respect of a Series of RVMTP Shares, (i)&nbsp;any of Fitch, Moody&#146;s, or Standard&nbsp;&amp; Poor&#146;s, to the extent it maintains a rating on the RVMTP Shares of such Series on such date and has not been replaced as a Rating Agency in
accordance with <U>Section</U><U></U><U>&nbsp;2.8</U> and (ii)&nbsp;any Other Rating Agency designated as a Rating Agency on such date in accordance with <U>Section</U><U></U><U>&nbsp;2.8</U>. In the event that at any time any Rating Agency
(i)&nbsp;ceases to be a Rating Agency for purposes of any Series of RVMTP Shares and such Rating Agency has been replaced by an Other Rating Agency in accordance with <U>Section</U><U></U><U>&nbsp;2.8</U>, any references to any credit rating of the
replaced Rating Agency in this Statement or any Appendix shall be deleted for purposes hereof as provided below and shall be deemed instead to be references to the equivalent credit rating of the Other Rating Agency that has replaced such Rating
Agency as of the most recent date on which such replacement Other Rating Agency published credit ratings for such Series of RVMTP Shares or (ii)&nbsp;designates a new rating definition for any credit rating of such Rating Agency with a corresponding
replacement rating definition for such credit rating of such Rating Agency, any references to such replaced rating definition of such Rating Agency contained in this Statement or any Appendix shall instead be deemed to be references to such
corresponding replacement rating definition. In the event that at any time the designation of any Rating Agency as a Rating Agency for purposes of any Series of RVMTP Shares is terminated in accordance with <U>Section</U><U></U><U>&nbsp;2.8</U>, any
rating of such terminated Rating Agency, to the extent it would have been taken into account in any of the provisions of this Statement or the Appendix for such Series, shall be disregarded, and only the ratings of the then-designated Rating
Agencies for such Series shall be taken into account for purposes of this Statement and such Appendix. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Rating Agency
Guidelines</U>&#148; means the guidelines of any Rating Agency, as they may be modified from time to time, compliance with which is required to cause such Rating Agency to continue to issue a rating with respect to a Series of RVMTP Shares for so
long as such Series is Outstanding. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Ratings Event</U>&#148; shall have the meaning set forth in
<U>Section</U><U></U><U>&nbsp;2.2(g)(i)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Redesignation Date</U>&#148; shall be the date specified as the Redesignation Date
for such Series in the Appendix for such Series. </P>
 <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">12 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Redemption Date</U>&#148; means, with respect to a redemption pursuant to
<U>Section</U><U></U><U>&nbsp;2.6(a)(i), (b) or (c)</U>, the date fixed for redemption as stated in the Notice of Redemption with respect to such redemption. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Redemption Default</U>&#148; shall have the meaning as set forth in <U>Section</U><U></U><U>&nbsp;2.2(g)(i)</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Redemption Price</U>&#148; shall mean the Term Redemption Price, the Mandatory 1940 Act Asset Coverage Redemption Price, the
Mandatory Tender Redemption Price, or the Optional Redemption Price, as applicable. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Remarketing</U>&#148; means the offering of
RVMTP Shares for resale as described in <U>Section</U><U></U><U>&nbsp;2.5(b)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Remarketing Purchase Price</U>&#148; means,
with respect to the RVMTP Shares subject to a Remarketing, a price per share equal to the Liquidation Preference per share plus an amount equal to all unpaid dividends and other distributions on such RVMTP Shares accumulated from and including the
Date of Original Issuance of such RVMTP Shares to (but excluding) the Mandatory Tender Date for such RVMTP Shares (whether or not earned or declared by the Fund, but excluding interest thereon). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Remarketing Settlement Agent</U>&#148; means the entity appointed as such by the Fund with respect to a Remarketing of any Series of
the RVMTP Shares and any additional or successor entities appointed by the Fund pursuant to a Remarketing Settlement Agent Agreement with the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Remarketing Settlement Agent Agreement</U>&#148; means the Remarketing Settlement Agent Agreement, if any, with respect to the RVMTP
Shares, between the Fund and the Remarketing Settlement Agent and any other party thereto, as amended, modified or supplemented from time to time, or any similar agreement with a successor Remarketing Settlement Agent. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>RVMTP</U>&#148; shall have the meaning as set forth in the Recitals of this Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>RVMTP Shares</U>&#148; shall have the meaning as set forth in the Recitals of this Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>RVMTP Shares of a Series</U>&#148; shall have the meaning as set forth in the Recitals of this Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Securities Act</U>&#148; means the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Securities Depository</U>&#148; shall mean The Depository Trust Company and its successors and assigns or any other securities
depository selected by the Fund that agrees to follow the procedures required to be followed by such securities depository as set forth in this Statement with respect to the RVMTP Shares. </P>
 <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">13 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Series</U>&#148; and &#147;<U>Series of RVMTP Shares</U>&#148; shall have the meanings
as set forth in the Recitals of this Statement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>SIFMA Municipal Swap Index</U>&#148; means the Securities Industry and Financial
Markets Association Municipal Swap Index, or such other weekly, high-grade index comprised of <FONT STYLE="white-space:nowrap">seven-day,</FONT> <FONT STYLE="white-space:nowrap">tax-exempt</FONT> variable rate demand notes produced by Municipal
Market Data, Inc. or its successor, or as otherwise designated by the Securities Industry and Financial Markets Association; <U>provided</U>, <U>however</U>, that if such index is no longer produced by Municipal Market Data, Inc. or its successor,
then SIFMA Municipal Swap Index shall mean (i)&nbsp;the S&amp;P Municipal Bond 7 Day High Grade Rate Index produced by Standard&nbsp;&amp; Poor&#146;s Financial Services LLC or its successors or (ii)&nbsp;if the S&amp;P Municipal Bond 7 Day High
Grade Rate Index is no longer produced, such other reasonably comparable index selected in good faith by the Board of Trustees of the Fund and consented to in writing by Holders of greater than 50% of RVMTP Shares, which shall not be unreasonably
withheld by such Holders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Special Terms Period</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.2(h)(i)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Standard</U><U></U><U>&nbsp;&amp; Poor&#146;s</U>&#148; means Standard&nbsp;&amp;
Poor&#146;s Ratings Services, a Standard&nbsp;&amp; Poor&#146;s Financial Services LLC business, and any successor or successors thereto. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>State Holder</U>&#148; means, solely for purposes of the definition of &#147;Additional State Amount Payment&#148; and
<U>Section</U><U></U><U>&nbsp;2.11</U> hereof, (i)&nbsp;a Holder who is a natural person subject to California taxation on his or her income; or (ii)&nbsp;a Holder, other than a natural person, that seeks, and is entitled under applicable law, to
pay dividends (or make other distributions or allocations of income) that are exempt from California income tax. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Statement</U>&#148; means this Amended and Restated Statement Establishing and Fixing the Rights and Preferences of Remarketable
Variable Rate MuniFund Term Preferred Shares, as it may be amended from time to time in accordance with its terms. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Subsequent
Rate Period</U>&#148; means, with respect to any Series of RVMTP Shares, the period consisting of seven calendar days, but adjusted in each case to reflect any changes when the regular calendar day that is a Rate Determination Date is not a Business
Day, from, and including, the first calendar day following the Initial Rate Period of such Series to, and including, the next Rate Determination Date for such Series and any period thereafter from, and including, the first calendar day following a
Rate Determination Date for shares of such Series to, and including, the next succeeding Rate Determination Date for shares of such Series. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Tax Event</U>&#148; shall have the meaning as set forth in <U>Section</U><U></U><U>&nbsp;2.2(g)(i)(E)</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Taxable Allocation</U>&#148; means, with respect to any Series, the characterization of all or a portion of any dividend paid in
respect of such Series as net capital gains or other income taxable for regular federal and California individual income tax purposes. </P>
 <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">14 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Term Redemption Amount</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.12(a)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Term Redemption Date</U>&#148; means, with respect to any Series, the date specified
as the Term Redemption Date in the Appendix for such Series, as such date may be extended in accordance with <U>Section</U><U></U><U>&nbsp;2.6(a)</U> or as may otherwise be agreed in writing by the Fund and the Holders of 100% of the Outstanding
RVMTP Shares of such Series. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Term Redemption Liquidity Account</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.12(a)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Term Redemption Price</U>&#148; shall have the meaning as set forth in
<U>Section</U><U></U><U>&nbsp;2.6(a)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>U.S. Government Obligations</U>&#148; means direct obligations of the United States or
of its agencies or instrumentalities that are entitled to the full faith and credit of the United States and that, other than United States Treasury Bills, provide for the periodic payment of interest and the full payment of principal at maturity or
call for redemption. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<U>Voting Period</U>&#148; shall have the meaning as set forth in <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U>.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">With respect to any Series, any additional definitions specifically set forth in the Appendix relating to such Series and any amendments
to any definitions specifically set forth in the Appendix relating to such Series, as such Appendix may be amended from time to time, shall be incorporated herein and made part hereof by reference thereto, but only with respect to such Series. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">1.2 <U>Interpretation</U>. The headings preceding the text of Sections included in this Statement are for convenience only and shall not be
deemed part of this Statement or be given any effect in interpreting this Statement. The use of the masculine, feminine or neuter gender or the singular or plural form of words herein shall not limit any provision of this Statement. The use of the
terms &#147;including&#148; or &#147;include&#148; shall in all cases herein mean &#147;including, without limitation&#148; or &#147;include, without limitation,&#148; respectively. Reference to any Person includes such Person&#146;s successors and
assigns to the extent such successors and assigns are permitted by the terms of any applicable agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually. Reference to any agreement
(including this Statement), document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof. Except as otherwise
expressly set forth herein, reference to any law means such law as amended, modified, codified, replaced or <FONT STYLE="white-space:nowrap">re-enacted,</FONT> in whole or in part, including rules, regulations, enforcement procedures and any
interpretations promulgated thereunder. Underscored references to Sections shall refer to those portions of this Statement. The use of the terms &#147;hereunder,&#148; &#147;hereof,&#148; &#147;hereto&#148; and words of similar import shall refer to
this Statement as a whole and not to any particular Article, Section or clause of this Statement. </P>
 <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">15 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Unless otherwise provided, defined terms used in this Statement apply only to the RVMTP Shares
and defined terms used in the Auction Preferred Statement apply only to the Auction Preferred Shares. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">1.3 <U>Liability of Officers,
Trustees and Shareholders</U>. A copy of the Declaration is on file with the Secretary of the Commonwealth of Massachusetts, and notice hereby is given that this Statement is executed on behalf of the Fund by an officer of the Fund in his or her
capacity as an officer of the Fund and not individually and that the obligations of the Fund under or arising out of this Statement are not binding upon any of the trustees, officers or shareholders individually but are binding only upon the assets
and properties of the Fund. All persons extending credit to, contracting with or having a claim against the Fund must look solely to the Fund&#146;s assets and property for the enforcement of any claims against the Fund as none of the Fund&#146;s
officers, agents or shareholders, whether past, present or future, assume any personal liability for obligations entered on behalf of the Fund. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TERMS APPLICABLE TO ALL SERIES OF </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>REMARKETABLE VARIABLE RATE MUNIFUND TERM PREFERRED SHARES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Except for such changes and amendments hereto with respect to a Series of RVMTP Shares that are specifically contemplated by the Appendix
relating to such Series, each Series of RVMTP Shares subject to this Statement shall have the following terms: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.1 <U>Number of Shares;
Ranking</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) The number of authorized shares constituting any Series of RVMTP Shares shall be as set forth with
respect to such Series in the Appendix hereto relating to such Series. No fractional RVMTP Shares shall be issued. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) The
RVMTP Shares of each Series shall rank on a parity with RVMTP Shares of each other Series and with shares of any other series of Preferred Shares (including any Auction Preferred Shares) as to the payment of dividends and the distribution of assets
upon dissolution, liquidation or winding up of the affairs of the Fund. The RVMTP Shares of each Series shall have preference with respect to the payment of dividends and as to distribution of assets upon dissolution, liquidation or winding up of
the affairs of the Fund over the Common Shares as set forth herein. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) No Holder of RVMTP Shares shall have, solely by
reason of being such a Holder, any <FONT STYLE="white-space:nowrap">pre-emptive</FONT> or other right to acquire, purchase or subscribe for any RVMTP Shares or Common Shares or other securities of the Fund which it may hereafter issue or sell. </P>
 <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">16 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.2 <U>Dividends and Distributions</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) The Holders of RVMTP Shares of any Series shall be entitled to receive, when, as and if declared by, or under authority
granted by, the Board of Trustees, out of funds legally available therefor in accordance with the Declaration, this Statement, and applicable law, and in preference to dividends and other distributions on Common Shares, cumulative cash dividends and
other distributions on each share of such Series at the Dividend Rate for such Series, calculated as set forth herein, and no more. Dividends and other distributions on the RVMTP Shares of any Series shall accumulate from the Date of Original
Issuance with respect to such Series. The amount of dividends per share payable on RVMTP Shares of a Series on any Dividend Payment Date shall equal the sum of the dividends accumulated but not yet paid for each Rate Period (or part thereof) in the
related Dividend Period. The amount of dividends per share of a Series accumulated for each such Rate Period (or part thereof) shall be computed by (i)&nbsp;multiplying the Dividend Rate in effect for RVMTP Shares of such Series for such Rate Period
(or part thereof) by a fraction, the numerator of which shall be the actual number of calendar days in such Rate Period (or part thereof) and the denominator of which shall be the actual number of calendar days in the year in which such Rate Period
(or such part thereof) occurs (365 or 366) and (ii)&nbsp;multiplying the product determined pursuant to clause (i)&nbsp;by the Liquidation Preference for a share of such Series. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) Dividends on RVMTP Shares of each Series with respect to any Dividend Period shall be declared to the Holders of such
shares as their names shall appear on the registration books of the Fund at the close of business on each calendar day in such Dividend Period and shall be paid as provided in <U>Section</U><U></U><U>&nbsp;2.2(f)</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;(i) No full dividends or other distributions shall be declared or paid on shares of a Series of RVMTP Shares for any
Dividend Period or part thereof unless full cumulative dividends and other distributions due through the most recent dividend payment dates therefor for all outstanding Preferred Shares (including shares of other Series of RVMTP Shares and the
Auction Preferred Shares) ranking on a parity with such Series of RVMTP Shares have been or contemporaneously are declared and paid through the most recent dividend payment dates therefor. If full cumulative dividends or other distributions due have
not been declared and paid on all such outstanding Preferred Shares of any series, any dividends and other distributions being declared and paid on RVMTP Shares of a Series will be declared and paid as nearly pro rata as possible in proportion to
the respective amounts of dividends and other distributions accumulated but unpaid on the shares of each such series of Preferred Shares (including, without limitation, the Auction Preferred Shares) on the relevant dividend payment date for such
series. Subject to <U>Section</U><U></U><U>&nbsp;2.11</U> hereof and Section&nbsp;2.3 of the Purchase Agreement, no Holders of RVMTP Shares shall be entitled to any dividends or other distributions, whether payable in cash, property or shares, in
excess of full cumulative dividends and other distributions as provided in this <U>Section</U><U></U><U>&nbsp;2.2(c)(i)</U> on such RVMTP Shares. </P>
 <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">17 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) For so long as any RVMTP Shares are Outstanding, the Fund shall not:
(x)&nbsp;declare or pay any dividend or other distribution (other than a dividend or distribution paid in Common Shares) in respect of the Common Shares, (y)&nbsp;call for redemption, redeem, purchase or otherwise acquire for consideration any
Common Shares, or (z)&nbsp;pay any proceeds of the liquidation of the Fund in respect of the Common Shares, unless, in each case, (A)&nbsp;immediately thereafter, the Fund shall have 1940 Act Asset Coverage, in each case after deducting the amount
of such dividend or distribution or redemption or purchase price or liquidation proceeds, (B)&nbsp;all cumulative dividends and other distributions on all RVMTP Shares and all other series of Preferred Shares ranking on a parity with the RVMTP
Shares (including the Auction Preferred Shares) due on or prior to the date the applicable dividend, distribution, redemption, purchase or acquisition shall have been declared and paid (or shall have been declared and Deposit Securities (in the case
of the RVMTP Shares) or other sufficient securities or funds (in the case of other Preferred Shares, as applicable) for the payment thereof shall have been deposited irrevocably with the paying agent for such Preferred Shares) and (C)&nbsp;the Fund
shall have deposited Deposit Securities pursuant to and in accordance with the requirements of <U>Section</U><U></U><U>&nbsp;2.6(d)(ii)</U> hereof with respect to Outstanding RVMTP Shares of any Series to be redeemed pursuant to
<U>Section</U><U></U><U>&nbsp;2.6(a)</U> or <U>Section</U><U></U><U>&nbsp;2.6(b) </U>hereof for which a Notice of Redemption shall have been given or shall have been required to be given in accordance with the terms hereof on or prior to the date of
the applicable dividend, distribution, redemption, purchase or acquisition. For the avoidance of doubt, Section&nbsp;11.2(d) of the Auction Preferred Statement contains additional provisions that restrict the declaration and payment of dividends and
other distributions with respect to Common Shares and parity shares. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) Any dividend payment made on RVMTP Shares of a
Series shall first be credited against the dividends and other distributions accumulated with respect to the earliest Dividend Period for such Series for which dividends and distributions have not been paid. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) Not later than 12:00 noon, New York City time, on the Dividend Payment Date for a Series of RVMTP Shares, the Fund shall
deposit with the Calculation and Paying Agent Deposit Securities having an aggregate Market Value on such date sufficient to pay the dividends and other distributions, if any, that are payable on such Dividend Payment Date in respect of such Series.
The Fund may direct the Calculation and Paying Agent with respect to the investment or reinvestment of any such Deposit Securities so deposited prior to the Dividend Payment Date, provided that such investment consists exclusively of Deposit
Securities and provided further that the proceeds of any such investment will be available as <FONT STYLE="white-space:nowrap">same-day</FONT> funds at the opening of business on such Dividend Payment Date. </P>
 <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">18 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) All Deposit Securities deposited with the Calculation and Paying Agent for
the payment of dividends payable on a Series of RVMTP Shares shall be held in trust for the payment of such dividends by the Calculation and Paying Agent for the benefit of the Holders of such Series entitled to the payment of such dividends
pursuant to <U>Section</U><U></U><U>&nbsp;2.2(f)</U>. Any moneys paid to the Calculation and Paying Agent in accordance with the foregoing but not applied by the Calculation and Paying Agent to the payment of dividends, including interest earned on
such moneys while so held, will, to the extent permitted by law, be repaid to the Fund as soon as possible after the date on which such moneys were to have been so applied, upon request of the Fund. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) Dividends and any distributions made pursuant to <U>Section</U><U></U><U>&nbsp;2.11(a) </U>on RVMTP Shares of a Series
shall be paid on each Dividend Payment Date for such Series, out of funds legally available therefor under applicable law, when, as and if declared by the Board of Trustees, or under authority granted by, and pursuant to
<U>Section</U><U></U><U>&nbsp;2.2(a) </U>hereof, to the Holders of shares of such Series as their names appear on the registration books of the Fund at the close of business on the calendar day immediately preceding such Dividend Payment Date (or if
such calendar day is not a Business Day, the next preceding Business Day). Dividends and any distributions made pursuant to <U>Section</U><U></U><U>&nbsp;2.11(a)</U> in arrears on RVMTP Shares of a Series for any past Dividend Period may be declared
and paid at any time, without reference to any regular Dividend Payment Date, to the Holders of shares of such Series as their names appear on the registration books of the Fund on such date, not exceeding fifteen (15)&nbsp;calendar days preceding
the payment date thereof, as may be fixed by the Board of Trustees. No interest or sum of money in lieu of interest will be payable in respect of any dividend payment or payments or other distributions on RVMTP Shares of any Series which may be in
arrears. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g) Dividend Increased Rate </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) The Dividend Rate on a Series of RVMTP Shares shall be adjusted to the Increased Rate for each Increased Rate Period (as
hereinafter defined). Subject to the cure provisions of Section&nbsp;2.2(g)(iii), a Rate Period with respect to a Series of RVMTP Shares shall be deemed to be an &#147;Increased Rate Period&#148; if on the first calendar day of such Rate Period,
(A)&nbsp;the Fund has failed to deposit with the Calculation and Paying Agent by 12:00 noon, New York City time, on a Dividend Payment Date for such Series, Deposit Securities that will provide funds available to the Calculation and Paying Agent on
such Dividend Payment Date sufficient to pay the full amount of any dividend on such Series payable on such Dividend Payment Date (a &#147;Dividend Default&#148;) and such Dividend Default has not ended as contemplated by Section&nbsp;2.2(g)(ii);
(B) the Fund has failed to deposit with the Calculation and Paying Agent by 12:00 noon, New York City time, on an applicable Redemption Date for such Series, Deposit Securities that will provide funds available to the Calculation and Paying Agent on
such Redemption </P>
 <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">19 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">
Date sufficient to pay the full amount of the Redemption Price payable in respect of such Series on such Redemption Date (a &#147;Redemption Default&#148;) and such Redemption Default has not
ended as contemplated by Section&nbsp;2.2(g)(ii); (C) any Rating Agency has withdrawn the credit rating required to be maintained with respect to such Series pursuant to Section&nbsp;2.8 other than due to the Rating Agency ceasing to rate <FONT
STYLE="white-space:nowrap">tax-exempt</FONT> <FONT STYLE="white-space:nowrap">closed-end</FONT> management investment companies generally and such withdrawal is continuing; (D)&nbsp;a Ratings Event (as defined below) has occurred and is continuing
with respect to such Series; or (E)&nbsp;(i) a court or other applicable governmental authority has made a final determination that for U.S. federal income tax purposes the RVMTP Shares do not qualify as equity in the Fund and such determination has
not been repealed, revoked or rescinded and (ii)&nbsp;such determination results from an act or failure to act on the part of the Fund (a &#147;Tax Event&#148;). A &#147;Ratings Event&#148; shall be deemed to exist with respect to any Series of
RVMTP Shares at any time such RVMTP Shares have a long-term credit rating from at least <FONT STYLE="white-space:nowrap">one-half</FONT> of the Rating Agencies designated at such time that is Below Investment Grade. For the avoidance of doubt, no
determination by any court or other applicable governmental authority that requires the Fund to make an Additional Amount Payment in respect of a Taxable Allocation shall be deemed to be a Tax Event hereunder. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) Subject to the cure provisions of <U>Section</U><U></U><U>&nbsp;2.2(g)(iii)</U>, a Dividend Default or a Redemption
Default on a Series of RVMTP Shares shall end on the Business Day on which, by 12:00 noon, New York City time, an amount equal to all accumulated but unpaid dividends on such Series and any unpaid Redemption Price on such Series shall have been
deposited irrevocably in trust in <FONT STYLE="white-space:nowrap">same-day</FONT> funds with the Calculation and Paying Agent. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) No Increased Rate Period for a Series of RVMTP Shares with respect to any Dividend Default or Redemption Default on such
Series shall be deemed to have commenced if the amount of any dividend or any Redemption Price due in respect of such Series (if such Default is not solely due to the willful failure of the Fund) is deposited irrevocably in trust, in <FONT
STYLE="white-space:nowrap">same-day</FONT> funds, with the Calculation and Paying Agent by 12:00 noon, New York City time, on a Business Day that is not later than three (3)&nbsp;Business Days after the applicable Dividend Payment Date or Redemption
Date for such Series with respect to which such Default occurred. </P>
 <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">20 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(h) Designation of Special Terms Period. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(i) <U>Right to Declare a Special Terms Period</U>. The Fund, acting in its sole and absolute discretion but otherwise subject
to the terms of this Statement, may designate a &#147;<U>Special Terms Period</U>&#148; with respect any Series of RVMTP Shares (which, for the avoidance of doubt, shall apply to all RVMTP Shares of such Series), during which period, such terms may
differ from those provided in this Statement and may include, without limitation, changes to the Dividend Rate, Dividend Payment Dates, redemption provisions (including, without limitation, the Term Redemption Date or the Early Term Redemption
Date), required Effective Leverage Ratio, and Additional Amount Payment provisions; provided that such special terms shall not, in any event, affect the parity ranking of such Series of RVMTP Shares relative to any other Series of RVMTP Shares, the
Auction Preferred Shares or any other series of Preferred Shares of the Fund then outstanding as to the payment of dividends and the distribution of assets upon dissolution, liquidation or winding up of the affairs of the Fund. The effectiveness of
any change to the terms of the RVMTP Shares pursuant to the exercise by the Fund of its option to designate a Special Terms Period with respect to any Series of RVMTP Shares shall be subject to the filing of an amendment to the terms of such RVMTP
Shares that has been approved by the Board of Trustees and approved by 100% of the Holders of the affected Series of RVMTP Shares in the manner set forth in <U>Section</U><U></U><U>&nbsp;2.7(a)</U>. For the avoidance of doubt, (A)&nbsp;the terms of
any such Special Terms Period that may be designated pursuant to the foregoing sentence shall amend and/or replace the applicable provisions of this Statement (and/or the relevant Appendix for the affected Series) that are in effect at the time such
Special Terms Period is declared and (B)&nbsp;subject to <U>Section</U><U></U><U>&nbsp;2.5(a)</U>, the terms of the Statement that were in effect at the most recent time during which no Special Terms Period was in effect will automatically continue
to be in effect immediately following the end of a Special Terms Period unless a subsequent Special Terms Period has been declared that will take effect immediately following the prior Special Terms Period, if the Holders of the RVMTP Shares have
made an election to retain the RVMTP Shares with respect to the Mandatory Tender Date corresponding to the final date of such Special Terms Period and/or the RVMTP Shares of any Holders that have not made such election, if any, are Remarketed
pursuant to <U>Section</U><U></U><U>&nbsp;2.5(b)</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(ii) <U>Length of and Preconditions for Special Terms Period</U>.
Any Special Terms Period shall commence on a designated Thursday and end on the earlier of a designated Wednesday or the applicable Redemption Date or Mandatory Tender Redemption Date, as the case may be. A designation of a Special Terms Period
shall be effective only if (1)&nbsp;notice thereof shall have been given to the Holders of the affected Series of RVMTP Shares in accordance with <U>Section</U><U></U><U>&nbsp;2.2(h)(ii)</U><B><U>Error! Reference source not found.</U></B> and
<U>(iii)</U>, (2) full cumulative dividends and any amounts due with respect to redemptions payable on the affected Series of RVMTP Shares prior to such date have been paid in full, (3)&nbsp;such designation of a Special Terms Period shall not
become effective prior to 12 months subsequent to the Date of Original Issuance of the affected Series of RVMTP Shares, (4)&nbsp;all of the Outstanding RVMTP Shares of the affected Series shall be subject to such Special Terms Period, and
(5)&nbsp;all of the Outstanding RVMTP Shares of the affected Series that are subject to Remarketing in </P>
 <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">21 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
connection with the redemption triggered by the declaration of the Special Terms Period are successfully Remarketed (except to the extent any applicable Holders of such affected Series of RVMTP
Shares have affirmatively elected to retain their RVMTP Shares of such Series for the Special Terms Period). Any failure to satisfy the preconditions to a Special Terms Period shall result in such Special Terms Period not becoming effective. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(iii) <U>Notice of Special Terms Period</U>. If the Fund proposes to designate a Special Terms Period, not less than 20
Business Days (or such lesser number of days as may be agreed to from time to time by the Holders of the affected Series of RVMTP Shares and the Remarketing Settlement Agent) nor more than 30 Business Days prior to the date the Fund proposes to
designate as the first day of such Special Terms Period, a notice (a &#147;<U>Notice of Special Terms Period</U>&#148;) shall be sent by the Fund or its designee by Electronic Means (or by first-class mail, postage prepaid, where the RVMTP Shares of
the affected Series are in physical form outside the book-entry system of the Securities Depository) to the Holders of the affected Series of RVMTP Shares, with copies provided by the Fund to the Remarketing Settlement Agent and the Calculation and
Paying Agent via Electronic Means and by the Fund or its designee to the initial Holder of the affected Series of RVMTP Shares in accordance with the notice provisions in the Purchase Agreement. Each such notice shall state (A)&nbsp;that the Fund
has exercised its option to propose a Special Terms Period with respect to such Series of RVMTP Shares, (B)&nbsp;the Rate Determination Date immediately prior to the first day of such Special Terms Period, (C)&nbsp;that such Special Terms Period
shall not commence unless the conditions precedent thereto in <U>Section</U><U></U><U>&nbsp;2.2(h)(ii)</U> are satisfied, (D)&nbsp;a description of the special terms to be applicable to such Series of RVMTP Shares and (E)&nbsp;the date upon which
such Series of RVMTP Shares shall be subject to Remarketing pursuant to <U>Section</U><U></U><U>&nbsp;2.5(b)1.5.(b)</U> (except to the extent affirmatively retained by any applicable Holder of RVMTP Shares of such Series pursuant to
<U>Section</U><U></U><U>&nbsp;2.5(a)(iv)</U>). The Fund may provide in any Notice of Special Terms Period that such Special Terms Period is subject to one or more additional conditions precedent, in which case the special terms of such Special Terms
Period shall not become effective unless each such additional condition has been satisfied or the Fund has waived each such condition. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.3
<U>Liquidation Rights</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) The RVMTP Shares shall rank on parity with each other, with shares of any other Series of
RVMTP Shares, and with shares of any other class or series of Preferred Shares (including the Auction Preferred Shares) as to distribution of assets upon dissolution, liquidation, or <FONT STYLE="white-space:nowrap">winding-up</FONT> of the affairs
of the Fund. In this regard, the provisions of this <U>Section</U><U></U><U>&nbsp;2.3</U> shall be applied consistently with Section&nbsp;11.3 of the Auction Preferred Statement and with all other Preferred Shares such that Holders of the RVMTP
Shares and holders of the Auction Preferred Shares and any other Preferred Shares are treated on parity with one another with respect to any such distribution. </P>
 <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">22 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) In the event of any liquidation, dissolution or winding up of the affairs of
the Fund, whether voluntary or involuntary, the Holders of RVMTP Shares shall be entitled to receive out of the assets of the Fund available for distribution to shareholders, after satisfying claims of creditors but before any distribution or
payment shall be made in respect of the Common Shares, a liquidation distribution equal to the Liquidation Preference for such shares, plus an amount equal to all unpaid dividends and other distributions on such shares accumulated to (but excluding)
the date fixed for such distribution or payment on such shares (whether or not earned or declared by the Fund, but without interest thereon), and such Holders shall be entitled to no further participation in any distribution or payment in connection
with any such liquidation, dissolution or winding up. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) If, upon any liquidation, dissolution or winding up of the
affairs of the Fund, whether voluntary or involuntary, the assets of the Fund available for distribution among the Holders of all Outstanding RVMTP Shares and any other outstanding Preferred Shares ranking on a parity with the RVMTP Shares
(including, without limitation, the Auction Preferred Shares) shall be insufficient to permit the payment in full to such Holders of the Liquidation Preference of such RVMTP Shares plus accumulated and unpaid dividends and other distributions on
such shares as provided in <U>Section</U><U></U><U>&nbsp;2.3(b)</U> above and the amounts due upon liquidation with respect to such other Preferred Shares, then such available assets shall be distributed among the Holders of such RVMTP Shares and
such other Preferred Shares ratably in proportion to the respective preferential liquidation amounts to which they are entitled. In connection with any liquidation, dissolution or winding up of the affairs of the Fund, whether voluntary or
involuntary, unless and until the Liquidation Preference on each Outstanding RVMTP Share plus accumulated and unpaid dividends and other distributions on such shares as provided in <U>Section</U><U></U><U>&nbsp;2.3(b)</U> above have been paid in
full to the Holders of such shares, no dividends, distributions or other payments will be made on, and no redemption, purchase or other acquisition by the Fund will be made by the Fund in respect of, the Common Shares. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) Neither the sale of all or substantially all of the property or business of the Fund, nor the merger, consolidation or
reorganization of the Fund into or with any other business or statutory trust, corporation or other entity, nor the merger, consolidation or reorganization of any other business or statutory trust, corporation or other entity into or with the Fund
shall be a dissolution, liquidation or winding up, whether voluntary or involuntary, for the purpose of this <U>Section</U><U></U><U>&nbsp;2.3</U>. </P>
 <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">23 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.4 <U>Coverage</U><U></U><U>&nbsp;&amp; Leverage Tests</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) <U>1940 Act Asset Coverage Requirement</U>. The Fund shall maintain 1940 Act Asset Coverage as of the close of business on
the last Business Day of each month in which any RVMTP Shares of any Series are Outstanding. If the Fund shall fail to maintain such 1940 Act Asset Coverage as of any time as of which such compliance is required to be determined as aforesaid, the
provisions of <U>Section</U><U></U><U>&nbsp;2.6(b)(i)</U> shall be applicable, which provisions to the extent complied with shall constitute the sole remedy for the Fund&#146;s failure to comply with the provisions of this
<U>Section</U><U></U><U>&nbsp;2.4(a)</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) <U>Calculation of 1940 Act Asset Coverage</U>. For purposes of determining
whether the requirements of <U>Section</U><U></U><U>&nbsp;2.4(a)</U> are satisfied, (i)&nbsp;no RVMTP Shares of any Series or other Preferred Shares shall be deemed to be Outstanding for purposes of any computation required by
<U>Section</U><U></U><U>&nbsp;2.4(a)</U> if, prior to or concurrently with such determination, sufficient Deposit Securities (in the case of the RVMTP Shares) or other sufficient securities or funds (in the case of other Preferred Shares, as
applicable), in each case in accordance with the terms of such Series or other Preferred Shares, to pay the full redemption price for such Series or other Preferred Shares (or the portion thereof to be redeemed) have been deposited in trust with the
paying agent for such Series or other Preferred Shares and the requisite notice of redemption for such Series or other Preferred Shares (or the portion thereof to be redeemed) has been given, and (ii)&nbsp;the Deposit Securities or other sufficient
securities or funds, as applicable that have been deposited with the applicable paying agent shall not be included as assets of the Fund for purposes of such computation. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) <U>Effective Leverage Ratio Requirement</U>. Unless the Fund receives the prior written consent of all Holders, for so long
as RVMTP Shares of any Series are Outstanding, the Effective Leverage Ratio shall not exceed 50% as of the close of business on any Business Day; <U>provided</U>, <U>however</U>, in the event that the Fund&#146;s Effective Leverage Ratio exceeds 50%
as of the close of business on any Business Day solely by reason of fluctuations in the market value of the Fund&#146;s portfolio securities, the Effective Leverage Ratio shall not exceed 51% as of the close of business on such Business Day. If the
Effective Leverage Ratio shall exceed the applicable percentage provided in the preceding sentence as of any time as of which such compliance is required to be determined as aforesaid, the provisions of <U>Section</U><U></U><U>&nbsp;2.6(b)(ii)</U>
shall be applicable, which provisions to the extent complied with shall constitute the sole remedy for the Fund&#146;s failure to comply with the provisions of this <U>Section</U><U></U><U>&nbsp;2.4(c)</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) <U>Calculation of Effective Leverage Ratio</U>. For purposes of determining whether the requirements of
<U>Section</U><U></U><U>&nbsp;2.4(c)</U> are satisfied, the &#147;<U>Effective Leverage Ratio</U>&#148; on any date shall mean the quotient of: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) The sum of (A)&nbsp;the aggregate liquidation preference of the Fund&#146;s &#147;senior securities&#148; (as that term is
defined in the 1940 Act) that are stock for purposes of the 1940 Act, excluding, without duplication, (1)&nbsp;any such senior securities for which the Fund has issued a notice of redemption and either has delivered Deposit Securities or sufficient
securities or funds (as applicable in </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">
accordance with the terms of such senior securities) to the paying agent for such senior securities or otherwise has adequate Deposit Securities or sufficient securities or funds on hand for the
purpose of such redemption (as applicable in accordance with the terms of such senior securities) and (2)&nbsp;any such senior securities that are to be redeemed with net proceeds from the sale of the RVMTP Shares, for which the Fund has delivered
Deposit Securities or sufficient securities or funds (as applicable in accordance with the terms of such senior securities) to the paying agent for such senior securities or otherwise has adequate Deposit Securities or sufficient securities or funds
on hand (as applicable in accordance with the terms of such senior securities) for the purpose of such redemption; (B)&nbsp;the aggregate principal amount of the Fund&#146;s &#147;senior securities representing indebtedness&#148; (as that term is
defined in the 1940 Act, giving effect to any interpretations thereof by the Securities and Exchange Commission or its staff); and (C)&nbsp;the aggregate principal amount of floating rate securities corresponding to any associated residual floating
rate securities not owned by the Fund (less the aggregate principal amount of any such floating rate securities owned by the Fund and corresponding to the associated residual floating rate securities owned by the Fund); <U>divided</U> <U>by</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) The sum of (A)&nbsp;the Market Value of the Fund&#146;s total assets (including amounts attributable to senior securities,
but excluding any assets consisting of Deposit Securities or funds referred to in clauses (A)(1) and (A)(2) of <U>Section</U><U></U><U>&nbsp;2.4(d)(i)</U> above), less the amount of the Fund&#146;s accrued liabilities (other than liabilities for the
aggregate principal amount of &#147;senior securities representing indebtedness&#148; (as that term is defined in the 1940 Act, giving effect to any interpretations thereof by the Securities and Exchange Commission or its staff), including floating
rate securities), and (B)&nbsp;the aggregate principal amount of floating rate securities not owned by the Fund that correspond to the associated inverse floating rate securities owned by the Fund. </P>
 <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">25 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.5 <U>Mandatory Tender and Remarketing</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">The RVMTP Shares shall be subject to Mandatory Tender and Remarketing as provided below: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(a) <U>Mandatory Tender of RVMTP Shares.</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) Subject to the Holders&#146; election to retain the RVMTP Shares provided for in <U>Section</U><U></U><U>&nbsp;0(iv)</U>
below, any Series of RVMTP Shares shall become subject to Mandatory Tender upon the occurrence of: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(A) any date that is
20 Business Days prior to each Early Term Redemption Date of such Series of RVMTP Shares as set forth in clause (i)&nbsp;of the definition thereof in the Appendix for such Series, </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(B) any date on which the Fund delivers a Notice of Special Terms Period declaring a Special Terms Period for such Series of
RVMTP Shares pursuant to <U>Section</U><U></U><U>&nbsp;2.2(h)</U>, or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(C) the date that is 20 Business Days prior to the
last day of any Special Terms Period, provided that no subsequent Special Terms Period has been designated and agreed by the Holder (each of (A), (B) and (C), a &#147;<U>Mandatory Tender Event</U>&#148;). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) Upon the occurrence of a Mandatory Tender Event with respect to a Series of RVMTP Shares, the Fund shall issue or cause to
be issued a notice of Mandatory Tender for Remarketing on the Mandatory Tender Date (as defined below) to the Holders of such Series of RVMTP Shares through the Securities Depository as a communication from the Securities Depository (the
&#147;<U>Notice of Mandatory Tender</U>&#148;). Such Notice of Mandatory Tender shall specify that such Mandatory Tender is subject to the election of the Holders of such Series of RVMTP Shares to retain as described in
<U>Section</U><U></U><U>&nbsp;0(iv)</U> of this Statement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) The Mandatory Tender Dates corresponding to the Mandatory
Tender Events listed in <U>Section</U><U></U><U>&nbsp;0(i)</U> above are as follows, with each Mandatory Tender Date subject to the Holders&#146; election to retain the RVMTP Shares in <U>Section</U><U></U><U>&nbsp;0(iv):</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(A) in the case of a Mandatory Tender Event described in <U>Section</U><U></U><U>&nbsp;2.5(a)(i)(A)</U>, the date that is 180
calendar days following the Early Term Redemption Date related to such Mandatory Tender Event, </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(B) in the case of a
Mandatory Tender Event described in <U>Section</U><U></U><U>&nbsp;0(i)(B)</U>, the date on which such Special Terms Period becomes effective pursuant to <U>Section</U><U></U><U>&nbsp;2.2(h)</U>, and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(C) in the case of a Mandatory Tender Event described in <U>Section</U><U></U><U>&nbsp;0(i)(C)</U>, the last day of the
related Special Terms Period (in the case of (A), (B), or (C), such date, the &#147;<U>Mandatory Tender Date</U>&#148;). </P>
 <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">26 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) Notwithstanding <U>Section</U><U></U><U>&nbsp;0(i)</U> above, the Holders of
any affected Series of RVMTP Shares may elect to retain such RVMTP Shares by providing notice of such election to the Fund no later than the 10<SUP STYLE="font-size:75%; vertical-align:top">th</SUP> Business Day prior to the Mandatory Tender Date,
in which case the affected RVMTP Shares of the electing Holder shall no longer be subject to Mandatory Tender on the corresponding Mandatory Tender Date and shall not be Remarketed pursuant to the procedures described in
<U>Section</U><U></U><U>&nbsp;1.5.(b)</U> below; provided, however, with respect to any Mandatory Tender Event occurring pursuant to <U>Section</U><U></U><U>&nbsp;0(i)(B)</U>, any such election to retain shall not be effective unless accompanied or
preceded by a consent to all amendments to the terms of the affected Series RVMTP Shares as required in connection with a designation of a Special Terms Period pursuant to <U>Section</U><U></U><U>&nbsp;2.2(h)(i)</U> above. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(b) <U>Remarketing of RVMTP Shares.</U> The RVMTP Shares subject to Mandatory Tender as provided for in this
<U>Section</U><U></U><U>&nbsp;2.5</U> shall be Remarketed in accordance with the following procedures: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) A Holder of
RVMTP Shares subject to Mandatory Tender may enter into trade documentation with a purchaser for the RVMTP Shares (which, for the avoidance of doubt, shall be with respect to all the RVMTP Shares of such Series) with terms that (A)&nbsp;are
reasonably satisfactory to both the Holder of the RVMTP Shares and such purchaser and (B)&nbsp;provide for the sale of the RVMTP Shares subject to Mandatory Tender on the Mandatory Tender Date; provided that (1)&nbsp;the Holder of the RVMTP Shares
notifies the Fund in writing of such trade documentation by the Mandatory Tender Date confirming that the trade documentation satisfies the conditions in this sentence and providing that all RVMTP Shares will be sold thereunder and
(2)&nbsp;following the Remarketing of RVMTP Shares, via execution of such trade documentation, the Fund shall provide, or cause to be provided, a notice through the Securities Depository cancelling the Mandatory Tender with respect to the RVMTP
Shares so Remarketed. At any time following a Mandatory Tender Event and before the corresponding Mandatory Tender Date, the Fund may designate a Remarketing Settlement Agent to assist with the Remarketing in accordance with the terms of the
Remarketing Settlement Agent Agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) If all of the RVMTP Shares subject to Mandatory Tender are not Remarketed
pursuant to Section&nbsp;2.5(b)(i) with binding trade documentation in place by the 5th Business Day preceding the Mandatory Tender Date, then the Fund and its agents shall take the following Remarketing actions: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(A) The Fund shall designate a Remarketing Settlement Agent to assist with the Remarketing in accordance with the terms of the
Remarketing Settlement Agent Agreement. </P>
 <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">27 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(B) If any purchaser is identified and has agreed by the Mandatory Tender Date
to purchase all of the RVMTP Shares subject to Mandatory Tender on the Mandatory Tender Date, the Remarketing Settlement Agent shall (1)&nbsp;give written notice by Electronic Means to the Holders of such RVMTP Shares, with a copy to the Fund and
the Calculation and Paying Agent, that the purchaser has been identified and agreed to purchase such RVMTP Shares on the Mandatory Tender Date; (2)&nbsp;collect the Remarketing Purchase Price via wire transfer from such purchaser on the Mandatory
Tender Date; (3)&nbsp;wire the Remarketing Purchase Price to the Securities Depository for delivery to the current Holder of the RVMTP Shares subject to Mandatory Tender on the Mandatory Tender Date; and (4)&nbsp;direct that such RVMTP Shares be
delivered to the Remarketing Settlement Agent. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(C) The Remarketing Settlement Agent shall then direct transfer of the
RVMTP Shares subject to Mandatory Tender to the purchaser through the Securities Depository on the Mandatory Tender Date. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">For the
avoidance of doubt, in the event of a successful Remarketing of all RVMTP Shares subject to Mandatory Tender pursuant to <U>Section</U><U></U><U>&nbsp;2.5(b)</U>, such Mandatory Tender will be cancelled and the Fund shall provide, or cause to be
provided, a notice through the Securities Depository cancelling the Mandatory Tender with respect to the RVMTP Shares so Remarketed. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(c)
<U>Failed Remarketing and Mandatory Tender</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) With respect to a Mandatory Tender Event described in <U>Section
2.5(a)(i)(A)</U>, if any RVMTP Shares subject to Mandatory Tender are not Remarketed by the Early Term Redemption Date (such failure to remarket a &#147;<U>Failed Early Term Redemption Date Remarketing</U>&#148;), then all such RVMTP Shares shall be
redeemed by the Fund on the Mandatory Tender Date pursuant to the Mandatory Tender redemption procedure described in <U>Sections 2.6(a)(iv)</U> and <U>2.6(d)</U> below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) With respect to a Mandatory Tender Event described in Section&nbsp;0(i)(B), if, for any reason (other than a failure to
timely deliver RVMTP Shares subject to a Mandatory Tender to the Remarketing Settlement Agent, and only to the extent that such failure to deliver is caused by administrative issues and is cured within two Business Days), all of the RVMTP Shares
subject to Mandatory Tender are not Remarketed by the related Mandatory Tender Date pursuant to Section&nbsp;1.5.(b), then (A)&nbsp;a failed remarketing shall be deemed to have occurred (which, for the avoidance of doubt, shall be with respect to
all RVMTP Shares subject to the Mandatory Tender) (a &#147;<U>Failed Special Terms Period Remarketin</U>g&#148;) that may trigger the application of a Failed Remarketing Spread as described in clause (ii)&nbsp;of the definition thereof and
(B)&nbsp;all such RVMTP Shares shall be retained by their respective Holders, and no such RVMTP Shares shall be purchased on the Mandatory Tender Date; </P>
 <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">28 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) With respect to a Mandatory Tender Event described in Section 0(i)(C), if
any RVMTP Shares subject to Mandatory Tender are not Remarketed by the Mandatory Tender Date, then all such RVMTP Shares shall be redeemed by the Fund on the Mandatory Tender Date pursuant to the Mandatory Tender redemption procedure described in
Sections <B>Error! Reference source not found.</B>0 and 2.6(d) below. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.6 <U>Redemption</U>. Each Series of RVMTP Shares shall be subject
to redemption by the Fund as provided below: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) <U>Term Redemption and Mandatory Tender.</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) <U>Term Redemption</U>. Subject to Section&nbsp;2.6(d)(v), the Fund shall redeem all RVMTP Shares of a Series then
Outstanding on the Term Redemption Date for such Series, out of funds legally available therefor under applicable law, at a price per share equal to the Liquidation Preference per share of such Series plus an amount equal to all unpaid dividends and
other distributions on such share of such Series accumulated from and including the Date of Original Issuance to (but excluding) the Term Redemption Date for such Series (whether or not earned or declared by the Fund, but excluding interest thereon)
(the &#147;<U>Term Redemption Price</U>&#148;); <U>provided, however</U>, that the Term Redemption Date for such Series of RVMTP Shares may be extended pursuant to <U>Section</U><U></U><U>&nbsp;2.6(a)(ii)</U> or
<U>Section</U><U></U><U>&nbsp;2.6(a)(iii)</U> below. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;(A) The Fund shall have the right, exercisable not more
than three hundred and sixty-five (365)&nbsp;calendar days nor less than one hundred and twenty (120)&nbsp;calendar days prior to the Term Redemption Date of a Series of RVMTP Shares, to request by notice (accompanied by a No Adverse Effect Opinion)
that each Designated Owner of such RVMTP Shares extend the Term Redemption Date for such Series of RVMTP Shares by at least an additional three hundred and sixty-five (365)&nbsp;calendar days (a &#147;<U>Designated Owner Term Extension
Request</U>&#148;), which request may be conditioned upon terms and conditions that are different from the terms and conditions set forth herein or in the Appendix applicable to such Series of RVMTP Shares. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(B) Each Designated Owner shall, no later than sixty (60)&nbsp;calendar days after receiving a Designated Owner Term Extension
Request, notify the Fund and the Calculation and Paying Agent of its acceptance or rejection of such request, which acceptance by such Designated Owner may be conditioned upon terms and conditions that are different from the terms and conditions set
forth herein or the terms and conditions proposed the Fund in making a Designated Owner Term Extension Request (a &#147;<U>Conditional Acceptance</U>&#148;). A Conditional Acceptance conditioned upon terms and conditions that are accepted by the
Fund and that are different from the terms and conditions set forth herein shall be deemed to be a consent by such Designated Owner to amend this Statement to reflect such different terms and conditions, but only with respect to the RVMTP Shares of
such Series beneficially owned by such Designated Owner. To the extent that a Designated Owner of RVMTP Shares of a Series of RVMTP Shares subject to a Designated Owner Term Extension Request rejects such Designated Owner Term Extension Request
pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(a)(ii)(B),</U> or is deemed to reject such Designated Owner Term Extension Request pursuant to <U>Section</U><U></U><U>&nbsp;2.6(a)(ii)(C)</U> below, the RVMTP Shares of such Series beneficially
owned by such Designated Owner shall be subject to redemption as provided in this Statement, without giving effect to any Designated Owner Term Extension Request. </P>
 <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">29 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(C) If any Designated Owner fails to notify the Fund or the Calculation and
Paying Agent of its acceptance or rejection of the Fund&#146;s Designated Owner Term Extension Request within such sixty (60)&nbsp;calendar day period, such failure to respond will be deemed a rejection of such Designated Owner Term Extension
Request by such Designated Owner. If a Designated Owner of RVMTP Shares provides a Conditional Acceptance, then the Fund shall have sixty (60)&nbsp;calendar days thereafter to notify such Designated Owner of its acceptance or rejection of the terms
and conditions specified in the Conditional Acceptance. The Fund&#146;s failure to notify such Designated Owner within such sixty (60)&nbsp;calendar day period will be deemed a rejection of the terms and conditions specified in the Conditional
Acceptance. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(D) Each Designated Owner of a Series of RVMTP Shares may grant or deny any Designated Owner Term Extension
Request applicable to such Series of RVMTP Shares in its sole and absolute discretion. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:13%; font-size:10pt; font-family:Times New Roman">(E) Unless the Fund and any
Designated Owner of RVMTP Shares that has agreed to a Designated Owner Term Extension Request otherwise agree pursuant to the procedures described in this <U>Section</U><U></U><U>&nbsp;2.6(a)(ii)</U>, in the event that the Term Redemption Date of a
Series of RVMTP Shares is extended pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(a)(ii),</U> the Liquidity Account Initial Date, as set forth in the Appendix establishing such Series, shall be extended accordingly, as provided in such Appendix,
with respect to the RVMTP Shares of such Series held by such Designated Owner. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) The Fund shall have the right,
exercisable not less than sixty (60)&nbsp;calendar days prior to the Term Redemption Date of a Series of RVMTP Shares, to request by notice (accompanied by a No Adverse Effect Opinion) to the Holders of 100% of the Outstanding RVMTP Shares of such
Series, an extension of the Term Redemption Date (a &#147;<U>Holder Term Extension Request</U>&#148;). Any failure by a Holder to respond or agree to such Holder Term Extension Request in writing within sixty (60)&nbsp;calendar days of the receipt
thereof shall be deemed to be a rejection of the extension request and the Term Redemption Date may only be extended pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(a)(iii)</U> upon the written consent of 100% of the Holders of the RVMTP Shares
of such Series. In the event that the Term Redemption Date of a Series of RVMTP Shares is extended pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(a)(iii),</U> the Liquidity Account Initial Date, as set forth in the Appendix establishing such
Series, shall be extended accordingly, as provided in such Appendix. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) <U>Mandatory Tender Redemption</U>. Following a
Mandatory Tender Event of the kind described in Section&nbsp;2.5(a)(i)(A) or 2.5(a)(i)(C), any RVMTP Shares subject to such Mandatory Tender Event that are not subject to an election to retain by the Holders pursuant to Section&nbsp;2.5(a)(iv) and
have not been successfully Remarketed by the related Mandatory Tender Date pursuant to Section&nbsp;2.5(b)1.5.(b) shall be redeemed by the Fund on such Mandatory Tender Date (the date of such redemption, the &#147;Mandatory Tender
</P>
 <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">30 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
Redemption Date&#148;), at a price per share equal to the Liquidation Preference per share plus an amount equal to all unpaid dividends and other distributions on such RVMTP Shares accumulated
from and including the Date of Original Issuance of such RVMTP Shares to (but excluding) the Mandatory Tender Redemption Date (whether or not earned or declared by the Fund, but excluding interest thereon) (the &#147;<U>Mandatory Tender Redemption
Price</U>&#148;). </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) <U>1940 Act Asset Coverage and Effective Leverage Ratio Mandatory Redemption</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) <U>Mandatory 1940 Act Asset Coverage Redemption</U>. (A)&nbsp;If the Fund fails to comply with the 1940 Act Asset Coverage
requirement as provided in <U>Section</U><U></U><U>&nbsp;2.4(a)</U> as of any time as of which such compliance is required to be determined in accordance with <U>Section</U><U></U><U>&nbsp;2.4(a)</U> and such failure is not cured as of the 1940 Act
Asset Coverage Cure Date other than as a result of the redemption required by this <U>Section</U><U></U><U>&nbsp;2.6(b)(i)</U>, the Fund shall, to the extent permitted by the 1940 Act and Massachusetts law, by the close of business on the second
Business Day next following such 1940 Act Asset Coverage Cure Date, cause a notice of redemption to be issued, in accordance with the terms of the Preferred Shares to be redeemed. In addition, in accordance with the terms of the Preferred Shares to
be redeemed, the Fund shall cause to be deposited Deposit Securities (in the case of the RVMTP Shares) or other sufficient securities or funds (in the case of any other Preferred Shares, as applicable) in trust with the Calculation and Paying Agent
or other applicable paying agent, in each case in accordance with the terms of the Preferred Shares to be redeemed, for the redemption of a sufficient number of Preferred Shares, which, to the extent permitted by the 1940 Act and Massachusetts law,
enable the Fund to meet the requirements of <U>Section</U><U></U><U>&nbsp;2.6(b)(i)(B)</U>. The Fund shall allocate such redemption on a pro rata basis among different series of Preferred Shares (including the shares of each Series of RVMTP Shares
and the Auction Preferred Shares) based upon the proportion that the aggregate liquidation preference of the outstanding Preferred Shares of any series bears to the aggregate liquidation preference of all outstanding series of Preferred Shares (a
&#147;<U>Pro Rata Allocation</U>&#148;). In the event that any RVMTP Shares of a Series then Outstanding are to be redeemed pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(b)(i)</U>, the Fund shall redeem such shares, out of funds legally
available therefor under applicable law, at a price per share equal to the Liquidation Preference per share of such Series plus an amount equal to all unpaid dividends and other distributions on such share of such Series accumulated from and
including the Date of Original Issuance to (but excluding) the date fixed for such redemption by the Board of Trustees (whether or not earned or declared by the Fund, but without interest thereon) (the &#147; <U>Mandatory 1940 Act Asset Coverage
Redemption Price </U>&#147;). The mandatory redemption price for any Auction Preferred Shares that are redeemed pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(b)(i)</U> shall be specified in Section&nbsp;11.4(a) of the Auction Preferred
Statement. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) On the Redemption Date for a redemption contemplated by
<U>Section</U><U></U><U>&nbsp;2.6(b)(i)(A)</U>, the Fund shall redeem at the Mandatory 1940 Act Asset Coverage Redemption Price, out of funds legally available therefor, under applicable law, such number of Preferred Shares (based upon a number and
proportion of each series of Preferred Shares as shall be necessary to effect a Pro Rata Allocation) as shall be equal to the lesser of (x)&nbsp;the minimum number of Preferred Shares, the redemption of which, if deemed to have occurred immediately
prior to the opening of business on the 1940 Act Asset Coverage Cure Date, would result in the Fund having 1940 Act Asset Coverage on such 1940 Act Asset Coverage Cure Date (provided, however, that if there is no such minimum number of RVMTP Shares
and other Preferred Shares the redemption or retirement of which would have such result, all RVMTP Shares and other Preferred Shares then outstanding shall be redeemed), and (y)&nbsp;the maximum number of Preferred Shares that can be redeemed out of
funds expected to be legally available therefor in accordance with the Declaration and applicable law. Notwithstanding the foregoing, in the event that Preferred Shares are redeemed pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(b)(i)</U>, the
Fund may at its sole option, but is not required to, include in the number of Preferred Shares being mandatorily redeemed pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(b)(i)</U> a sufficient number of RVMTP Shares of any Series that, when
aggregated with other Preferred Shares redeemed by the Fund, would result, if deemed to have occurred immediately prior to the opening of business on the 1940 Act Asset Coverage Cure Date, in the Fund having 1940 Act Asset Coverage on such 1940 Act
Asset Coverage Cure Date of up to and including 225%; <U>provided </U>that if the 1940 Act Asset Coverage is increased to greater than 225%, the Optional Redemption Premium shall be due on any such excess redemptions. The Fund shall effect such
redemption on the date fixed by the Fund therefor, which date shall not be later than thirty (30)&nbsp;calendar days after such 1940 Act Asset Coverage Cure Date, except that if the Fund does not have funds legally available for the redemption of
all of the required number of RVMTP Shares and other Preferred Shares which have been designated to be redeemed or the Fund otherwise is unable to effect such redemption on or prior to thirty (30)&nbsp;calendar days after such 1940 Act Asset
Coverage Cure Date, the Fund shall redeem those RVMTP Shares and other Preferred Shares which it was unable to redeem on the earliest practicable date following such thirty (30)&nbsp;calendar day period on which it is able to effect such redemption
(based upon a number and proportion of each series of Preferred Shares as shall be necessary to effect a Pro Rata Allocation). If fewer than all of the Outstanding RVMTP Shares of a Series are to be </P>
 <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">32 </P>


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redeemed pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(b)(i)</U>, the number of RVMTP Shares of such Series to be redeemed from the respective Holders shall be selected (A)&nbsp;pro rata
among the Outstanding shares of such Series, (B)&nbsp;by lot or (C)&nbsp;in such other manner as the Board of Trustees may determine to be fair and equitable, in each case, in accordance with the 1940 Act; <U>provided</U> that such method of
redemption as set forth in clause (A), (B) or (C)&nbsp;of this <U>Section</U><U></U><U>&nbsp;2.6(b)(i)(B)</U> shall be subject to any applicable procedures established by the Securities Depository. If fewer than all outstanding Auction Preferred
Shares are to be redeemed pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(b)(i)</U>, the manner of allocation of shares to be redeemed among the series of Auction Preferred Shares shall be determined in accordance with Section&nbsp;11.4 of the
Auction Preferred Statement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) <U>Effective Leverage Ratio Mandatory Redemption</U>. (A)&nbsp;If (1) the Fund fails to
comply with the Effective Leverage Ratio requirement as provided in <U>Section</U><U></U><U>&nbsp;2.4(c)</U> as of any time as of which such compliance is required to be determined in accordance with <U>Section</U><U></U><U>&nbsp;2.4(c),</U> (2)
with respect to the initial Series of RVMTP Shares issued pursuant to this Statement, the Fund fails to comply with the Effective Leverage Ratio requirement calculated as set forth in Section&nbsp;6.12 of the Purchase Agreement applicable to such
Series of RVMTP Shares if such requirement is still in effect in accordance with the terms of such Purchase Agreement, or (3)&nbsp;with respect to any other Series of RVMTP Shares issued pursuant to this Statement, the Fund fails to comply with any
additional requirements relating to the calculation of the Effective Leverage Ratio pursuant to the Purchase Agreement or Appendix applicable to such Series of RVMTP Shares, and, in any such case, such failure is not cured as of the close of
business on the date that is ten (10)&nbsp;Business Days following the Business Day on which such <FONT STYLE="white-space:nowrap">non-compliance</FONT> is first determined (the &#147;<U>Effective Leverage Ratio Cure Date</U>&#148;) other than as a
result of the redemption or other actions required by this <U>Section</U><U></U><U>&nbsp;2.6(b)(ii)</U>, the Fund shall cause the Effective Leverage Ratio (calculated in accordance with the requirements applicable to the determination of the
Effective Leverage Ratio under this Statement, and under the Appendix and Purchase Agreement for any applicable Series of RVMTP Shares in respect of which the Effective Leverage Ratio is being determined) to not exceed the Effective Leverage Ratio
required under <U>Section</U><U></U><U>&nbsp;2.4(c)</U> as so determined, by (x)&nbsp;not later than the close of business on the Business Day next following the Effective Leverage Ratio Cure Date, engaging in transactions involving or relating to
the floating rate securities not owned by the Fund and/or the inverse floating rate securities owned by the Fund, including the purchase, sale or retirement thereof, (y)&nbsp;to the extent permitted by the 1940 Act and Massachusetts law, not later
than the close of business on the second Business Day next following the Effective Leverage Ratio Cure Date, causing a notice of </P>
 <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">33 </P>


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redemption to be issued, and in addition, causing to be irrevocably deposited Deposit Securities (in the case of the RVMTP Shares) or other sufficient securities or funds (in the case of other
Preferred Shares, as applicable) in trust with the Calculation and Paying Agent or other applicable paying agent, in each case in accordance with the terms of the Preferred Shares to be redeemed, for the redemption at the redemption price specified
in the terms of such Preferred Shares of a sufficient number of Preferred Shares, based upon a number and proportion of each series of Preferred Shares as shall be necessary to effect a Pro Rata Allocation, or (z)&nbsp;engaging in any combination,
in the Fund&#146;s discretion, of the actions contemplated by clauses (x)&nbsp;and (y) of this <U>Section</U><U></U><U>&nbsp;2.6(b)(ii)(A)</U>. In the event that any RVMTP Shares of a Series are to be redeemed pursuant to clause (y)&nbsp;of this
<U>Section</U><U></U><U>&nbsp;2.6(b)(ii)(A)</U>, the Fund shall redeem such RVMTP Shares at a price per RVMTP Share equal to the Mandatory 1940 Act Asset Coverage Redemption Price. Notwithstanding the foregoing, in the event that Preferred Shares
are redeemed pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(b)(ii)</U>, the Fund may at its sole option, but is not required to, include in the number of Preferred Shares being mandatorily redeemed pursuant to this
<U>Section</U><U></U><U>&nbsp;2.6(b)(ii)</U> a sufficient number of RVMTP Shares of any Series that, when aggregated with other Preferred Shares redeemed by the Fund, would result, if deemed to have occurred immediately prior to the opening of
business on the Effective Leverage Ratio Cure Date, in the Fund having an Effective Leverage Ratio on such Effective Leverage Ratio Cure Date of no less than 40%; <U>provided</U> that if the Effective Leverage Ratio is reduced to less than 40%, the
Optional Redemption Premium shall be due on any such excess redemptions. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) On the Redemption Date for a redemption
contemplated by clause (y)&nbsp;of <U>Section</U><U></U><U>&nbsp;2.6(b)(ii)(A)</U>, the Fund shall not redeem more than the maximum number of Preferred Shares that can be redeemed out of funds expected to be legally available therefor in accordance
with the Declaration and applicable law. If the Fund is unable to redeem the required number of RVMTP Shares and other Preferred Shares which have been designated to be redeemed in accordance with clause (y)&nbsp;of
<U>Section</U><U></U><U>&nbsp;2.6(b)(ii)(A)</U> due to the unavailability of legally available funds, the Fund shall redeem those RVMTP Shares and other Preferred Shares which it was unable to redeem on the earliest practicable date following such
Redemption Date on which it is able to effect such redemption (based upon a number and proportion of each series of Preferred Shares as shall be necessary to effect a Pro Rata Allocation). If fewer than all of the Outstanding RVMTP Shares of a
Series are to be redeemed pursuant to clause (y)&nbsp;of <U>Section</U><U></U><U>&nbsp;2.6(b)(ii)(A)</U>, the number of RVMTP Shares of such Series to be redeemed from the respective Holders shall be selected (A)&nbsp;pro rata among the Outstanding
shares of such Series, (B)&nbsp;by lot or (C)&nbsp;in such other manner as the Board </P>
 <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">34 </P>


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of Trustees may determine to be fair and equitable in each case, in accordance with the 1940 Act; <U>provided</U> that such method of redemption as set forth in clause (A), (B) or (C)&nbsp;of
this <U>Section</U><U></U><U>&nbsp;2.6(b)(ii)(B)</U> shall be subject to any applicable procedures established by the Securities Depository. If fewer than all outstanding Auction Preferred Shares are to be redeemed pursuant to this
<U>Section</U><U></U><U>&nbsp;2.6(b)(ii)</U>, the manner of allocation of shares to be redeemed among the series of Auction Preferred Shares shall be determined in accordance with Section&nbsp;11.4 of the Auction Preferred Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">For the avoidance of doubt, Section&nbsp;11.4 of the Auction Preferred Statement for additional provisions related to the mandatory redemption
of the Auction Preferred Shares. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) Optional Redemption. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) Subject to the provisions of <U>Section</U><U></U><U>&nbsp;2.6(c)(ii)</U>, the Fund may at its option on any Business Day
(an &#147;<U>Optional Redemption Date</U>&#148;) redeem in whole or from time to time in part the Outstanding RVMTP Shares of any Series, at a redemption price per RVMTP Share (the &#147;<U>Optional Redemption Price</U>&#148;) equal to (x)&nbsp;the
Liquidation Preference per RVMTP Share of such Series plus (y)&nbsp;an amount equal to all unpaid dividends and other distributions on such RVMTP Share of such Series accumulated from and including the Date of Original Issuance to (but excluding)
the Optional Redemption Date (whether or not earned or declared by the Fund, but without interest thereon) plus (z)&nbsp;the Optional Redemption Premium per share (if any) that is applicable to an optional redemption of RVMTP Shares of such Series
that is effected on such Optional Redemption Date as set forth in the Appendix relating to such Series; <U>provided</U> that in connection with any (A)&nbsp;redemption in accordance with this <U>Section</U><U></U><U>&nbsp;2.6(c)</U> or pursuant to
<U>Section</U><U></U><U>&nbsp;2.6(b)</U> that is effectuated in order to comply with the requirements of the 1940 Act or this Statement or the Purchase Agreement or (B)&nbsp;any redemption in accordance with
<U>Section</U><U></U><U>&nbsp;2.6(a)(iv)</U> or <U>Section</U><U></U><U>&nbsp;2.6(b)</U> (except as set forth therein), no Optional Redemption Premium specified in <U>clause (z)</U>&nbsp;above or penalty or premium shall be payable. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) If fewer than all of the outstanding RVMTP Shares of a Series are to be redeemed pursuant to
<U>Section</U><U></U><U>&nbsp;2.6(c)(i)</U>, the shares of such Series to be redeemed shall be selected either (A)&nbsp;pro rata among the Holders of such Series, (B)&nbsp;by lot or (C)&nbsp;in such other manner as the Board of Trustees may
determine to be fair and equitable; <U>provided</U>, in each such case, that such method of redemption as set forth in clause (A), (B) or (C)&nbsp;of this <U>Section</U><U></U><U>&nbsp;2.6(c)(ii)</U> shall be subject to any applicable procedures
established by the Securities Depository. Subject to the provisions of this Statement and applicable law, the Board of Trustees will have the full power and authority to prescribe the terms and conditions upon which RVMTP Shares will be redeemed
pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(c)</U> from time to time. </P>
 <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">35 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) The Fund may not on any date deliver a Notice of Redemption pursuant to
<U>Section</U><U></U><U>&nbsp;2.6(d)</U> in respect of a redemption contemplated to be effected pursuant to this <U>Section</U><U></U><U>&nbsp;2.6(c)</U> unless on such date the Fund reasonably expects to have available Deposit Securities for the
Optional Redemption Date contemplated by such Notice of Redemption having a Market Value not less than the amount (including any applicable premium) due to Holders of RVMTP Shares by reason of the redemption of such RVMTP Shares on such Optional
Redemption Date. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) RVMTP Shares of a Series mandatorily redeemed or redeemed at the Fund&#146;s sole option in
accordance with, but solely to the extent contemplated by, <U>Section</U><U></U><U>&nbsp;2.6(a)(iv)</U>, <U>Section</U><U></U><U>&nbsp;2.6(b)(i)(B)</U>, or <U>Section</U><U></U><U>&nbsp;2.6(b)(ii)</U> shall be considered mandatorily redeemed
pursuant to such Section, as applicable, and not subject to this <U>Section</U><U></U><U>&nbsp;2.6(c)</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d)
<U>Procedures for Redemption</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) If the Fund shall determine or be required to redeem, in whole or in part, RVMTP
Shares of a Series pursuant to <U>Section</U><U></U><U>&nbsp;2.6(a)</U>, <U>(b)</U> or <U>(c)</U>, the Fund shall deliver a notice of redemption (the &#147;<U>Notice of Redemption</U>&#148;), by overnight delivery, by first class mail, postage
prepaid or by Electronic Means to Holders thereof, or request the Calculation and Paying Agent, on behalf of the Fund, to promptly do so by overnight delivery, by first class mail, postage prepaid or by Electronic Means. For the avoidance of doubt,
a Notice of Redemption shall not be required if the Fund shall be required to redeem, in whole or in part, RVMTP Shares of a series pursuant to <U>Section</U><U></U><U>&nbsp;2.6(a)(iv)</U>. A Notice of Redemption shall be provided not more than
thirty-five (35)&nbsp;calendar days prior to the date fixed for redemption and not less than ten (10)&nbsp;calendar days (or such shorter or longer period as may be consented to by all of the Holders of the RVMTP Shares of such Series, which consent
shall not be deemed to be a vote required by <U>Section</U><U></U><U>&nbsp;2.7)</U> prior to the date fixed for redemption pursuant to <U>Section</U><U></U><U>&nbsp;2.6(c)</U> in such Notice of Redemption (the &#147;<U>Redemption Date</U>&#148;).
Each such Notice of Redemption shall state: (A)&nbsp;the Redemption Date; (B)&nbsp;the applicable Redemption Price on a per share basis; (C)&nbsp;the Series and number of RVMTP Shares to be redeemed; (D)&nbsp;the CUSIP number for RVMTP Shares of
such Series; (E)&nbsp;if applicable, the place or places where the certificate(s) for such shares (properly endorsed or assigned for transfer, if the Board of Trustees requires and the Notice of Redemption states) are to be surrendered for payment
of the Redemption Price; (F)&nbsp;that dividends on the </P>
 <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">36 </P>


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RVMTP Shares to be redeemed will cease to accumulate from and after such Redemption Date; and (G)&nbsp;the provisions of this Statement under which such redemption is made. If fewer than all
RVMTP Shares held by any Holder are to be redeemed, the Notice of Redemption delivered to such Holder shall also specify the number of RVMTP Shares to be redeemed from such Holder and/or the method of determining such number. The Fund may provide in
any Notice of Redemption relating to an optional redemption contemplated to be effected pursuant to <U>Section</U><U></U><U>&nbsp;2.6(c)</U> of this Statement that such redemption is subject to one or more conditions precedent and that the Fund
shall not be required to effect such redemption unless each such condition has been satisfied at the time or times and in the manner specified in such Notice of Redemption. No defect in the Notice of Redemption or delivery thereof shall affect the
validity of redemption proceedings, except as required by applicable law. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) If (1)&nbsp;the Fund shall give a Notice of
Redemption or (2)&nbsp;the Fund is required to redeem RVMTP Shares on the Mandatory Tender Date pursuant to <U>Section</U><U></U><U>&nbsp;2.6(a)(iv)</U>, then at any time from and after the giving of such Notice of Redemption or Notice of Mandatory
Tender, as applicable, and prior to 12:00 noon, New York City time, on the Redemption Date (so long as any conditions precedent to such redemption have been met or waived by the Fund), the Fund shall (A)&nbsp;deposit with the Calculation and Paying
Agent Deposit Securities having an aggregate Market Value on the date thereof no less than the Redemption Price of the RVMTP Shares to be redeemed on the Redemption Date and (B)&nbsp;give the Calculation and Paying Agent irrevocable instructions and
authority to pay the applicable Redemption Price to the Holders of the RVMTP Shares called for redemption on the Redemption Date. The Fund may direct the Calculation and Paying Agent with respect to the investment of any Deposit Securities
consisting of cash so deposited prior to the Redemption Date, provided that the proceeds of any such investment shall be available at the opening of business on the Redemption Date as <FONT STYLE="white-space:nowrap">same-day</FONT> funds.
Notwithstanding the provisions of clause (A)&nbsp;of the preceding sentence, if the Redemption Date is either the Term Redemption Date, or a Mandatory Tender Date, then such deposit of Deposit Securities (which may come in whole or in part from the
Term Redemption Liquidity Account) shall be made no later than fifteen (15)&nbsp;calendar days prior to the Term Redemption Date or such Mandatory Tender Date. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) Upon the date of the deposit of such Deposit Securities, all rights of the Holders of the RVMTP Shares so called for
redemption shall cease and terminate except the right of the Holders thereof to receive the Redemption Price thereof and such RVMTP Shares shall no longer be deemed Outstanding for any purpose whatsoever (other than (A)&nbsp;the transfer thereof
prior to the applicable </P>
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Redemption Date and (B)&nbsp;the accumulation of dividends thereon in accordance with the terms hereof up to (but excluding) the applicable Redemption Date, which accumulated dividends, unless
previously declared and paid as contemplated by the last sentence of <U>Section</U><U></U><U>&nbsp;2.6(d)(vi)</U> below, shall be payable only as part of the applicable Redemption Price on the Redemption Date). The Fund shall be entitled to receive,
promptly after the Redemption Date, any Deposit Securities in excess of the aggregate Redemption Price of the RVMTP Shares called for redemption and redeemed on the Redemption Date. Any Deposit Securities so deposited that are unclaimed at the end
of three hundred sixty-five (365)&nbsp;calendar days from the Redemption Date shall, to the extent permitted by law, be repaid to the Fund, after which the Holders of the RVMTP Shares so called for redemption shall look only to the Fund for payment
of the Redemption Price thereof. The Fund shall be entitled to receive, from time to time after the Redemption Date, any interest on the Deposit Securities so deposited. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) On or after the Redemption Date, each Holder of RVMTP Shares in certificated form (if any) that are subject to redemption
shall surrender the certificate(s) evidencing such RVMTP Shares to the Fund at the place designated in the Notice of Redemption and shall then be entitled to receive the Redemption Price for such RVMTP Shares, without interest, and in the case of a
redemption of fewer than all the RVMTP Shares represented by such certificate(s), a new certificate representing the RVMTP Shares that were not redeemed. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) Notwithstanding the other provisions of this <U>Section</U><U></U><U>&nbsp;2.6</U>, except as otherwise required by law,
the Fund shall not redeem any RVMTP Shares or other series of Preferred Shares ranking on a parity with the RVMTP Shares with respect to dividends and other distributions unless all accumulated and unpaid dividends and other distributions on all
Outstanding RVMTP Shares and shares of other series of Preferred Shares for all applicable past dividend periods (whether or not earned or declared by the Fund)&nbsp;(x) shall have been or are contemporaneously paid or (y)&nbsp;shall have been or
are contemporaneously declared and Deposit Securities (in the case of the RVMTP Shares) or other sufficient securities or funds (in the case of other Preferred Shares, as applicable) (in accordance with the terms of such Preferred Shares for the
payment of such dividends and other distributions) shall have been or are contemporaneously deposited with the Calculation and Paying Agent or other applicable paying agent for such Preferred Shares in accordance with the terms of such Preferred
Shares, provided, however, that the foregoing shall not prevent the purchase or acquisition of Outstanding RVMTP Shares pursuant to an otherwise lawful purchase or exchange offer made on the same terms to Holders of all Outstanding RVMTP Shares and
any other series of Preferred Shares for which all accumulated and unpaid dividends and other distributions have not been paid. </P>
 <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">38 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vi) To the extent that any redemption for which a Notice of Redemption has been
provided is not made by reason of the absence of legally available funds therefor in accordance with the Declaration, this Statement and applicable law, such redemption shall be made as soon as practicable to the extent such funds become available.
In the case of any redemption pursuant to <U>Section</U><U></U><U>&nbsp;2.6(c)</U>, no Redemption Default shall be deemed to have occurred if the Fund shall fail to deposit in trust with the Calculation and Paying Agent the Redemption Price with
respect to any shares where (1)&nbsp;the Notice of Redemption relating to such redemption provided that such redemption was subject to one or more conditions precedent and (2)&nbsp;any such condition precedent shall not have been satisfied at the
time or times and in the manner specified in such Notice of Redemption. Notwithstanding the fact that a Notice of Redemption has been provided with respect to any RVMTP Shares, dividends may be declared and paid on such RVMTP Shares in accordance
with their terms if Deposit Securities for the payment of the Redemption Price of such RVMTP Shares shall not have been deposited in trust with the Calculation and Paying Agent for that purpose. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) Calculation<U> and Paying Agent as Trustee of Redemption Payments by Fund</U>. All Deposit Securities transferred to the
Calculation and Paying Agent for payment of the Redemption Price of RVMTP Shares called for redemption shall be held in trust by the Calculation and Paying Agent for the benefit of Holders of RVMTP Shares so to be redeemed until paid to such Holders
in accordance with the terms hereof or returned to the Fund in accordance with the provisions of <U>Section</U><U></U><U>&nbsp;2.6(d)(iii)</U> above. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) <U>Compliance With Applicable Law</U>. In effecting any redemption pursuant to this <U>Section</U><U></U><U>&nbsp;2.6</U>,
the Fund shall use its best efforts to comply with all applicable conditions precedent to effecting such redemption under the 1940 Act and any applicable law, but shall effect no redemption except in accordance with the 1940 Act and any applicable
law. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g) <U>Modification of Redemption Procedures</U>. Notwithstanding the foregoing provisions of this
<U>Section</U><U></U><U>&nbsp;2.6</U>, the Fund may, in its sole discretion and without a shareholder vote, modify the procedures set forth above with respect to notification of redemption for the RVMTP Shares, provided that such modification does
not materially and adversely affect the Holders of the RVMTP Shares or cause the Fund to violate any applicable law, rule or regulation; and provided further that no such modification shall in any way alter the rights or obligations of the
Calculation and Paying Agent without its prior consent. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.7 <U>Voting Rights</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) <U>One Vote Per RVMTP Share</U>. Except as otherwise provided in the Declaration, this Statement, or as otherwise required
by law, (i)&nbsp;each Holder of RVMTP Shares shall be entitled to one vote for each RVMTP Share held by such Holder on each matter submitted to a vote of all shareholders of the Fund, and (ii)&nbsp;the holders of outstanding Preferred Shares,
including Outstanding RVMTP Shares and Auction Preferred Shares, and Common Shares shall vote together as a single class; <U>provided</U>, however, that the holders of outstanding Preferred Shares, including Outstanding RVMTP Shares and Auction
Preferred Shares, shall be entitled, as a class, to the exclusion of the Holders of all other securities and Common Shares of the Fund, to elect two trustees of the Fund, it being understood that each Preferred Share, including RVMTP Shares and the
Auction Preferred Shares, entitles the Holder thereof to one vote for each Preferred Share in respect to the election of each such trustee. Subject to <U>Section</U><U></U><U>&nbsp;2.7(b)</U>, the Holders of outstanding Common Shares and Preferred
Shares, including RVMTP Shares and the Auction Preferred Shares, voting together as a single class, shall elect the balance of the trustees. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) <U>Voting For Additional Trustees</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) <U>Voting Period</U>. During any period in which any one or more of the conditions described in clauses (A)&nbsp;or (B) of
this <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U> shall exist (such period being referred to herein as a &#147;<U>Voting Period</U>&#148;), the number of trustees constituting the Board of Trustees shall be automatically increased by the smallest
number that, when added to the two trustees elected exclusively by the Holders of Preferred Shares, including RVMTP Shares and the Auction Preferred Shares, would constitute a majority of the Board of Trustees as so increased by such smallest
number; and the Holders of Preferred Shares, including RVMTP Shares and the Auction Preferred Shares, shall be entitled, voting as a class on a
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">one-vote-per-share</FONT></FONT></FONT> basis (to the exclusion of the Holders of all other securities and classes of shares of beneficial interest of
the Fund), to elect such smallest number of additional trustees, together with the two trustees that such Holders are in any event entitled to elect. A Voting Period shall commence: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(A) if, at the close of business on any dividend payment date for any outstanding Preferred Shares including any Outstanding
RVMTP Shares and Auction Preferred Shares, accumulated dividends (whether or not earned or declared) on such outstanding Preferred Shares, including RVMTP Shares and Auction Preferred Shares, equal to at least two (2)&nbsp;full years&#146; dividends
shall be due and unpaid and sufficient cash or specified securities shall not have been deposited with the Calculation and Paying Agent or other applicable paying agent for the payment of such accumulated dividends; or </P>
 <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">40 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(B) if at any time Holders of Preferred Shares are otherwise entitled under the
1940 Act to elect a majority of the Board of Trustees. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">A Voting Period shall terminate upon all of such conditions ceasing to exist. Upon
the termination of a Voting Period, the voting rights described in this <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U> shall cease, subject always, however, to the revesting of such voting rights in the Holders of Preferred Shares upon the further
occurrence of any of the events described in this <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) <U>Notice of Special
Meeting</U>. As soon as practicable after the accrual of any right of the Holders of Preferred Shares to elect additional trustees as described in <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U>, the Fund shall call a special meeting of such Holders and
notify the Calculation and Paying Agent and/or such other Person as is specified in the terms of such Preferred Shares to receive notice (i)&nbsp;by mailing or delivery by Electronic Means or (ii)&nbsp;in such other manner and by such other means as
are specified in the terms of such Preferred Shares, a notice of such special meeting to such Holders, such meeting to be held not less than ten (10)&nbsp;nor more than thirty (30)&nbsp;calendar days after the date of the delivery by Electronic
Means or mailing of such notice or the delivery of such notice by such other means as are described in clause (ii)&nbsp;above. If the Fund fails to call such a special meeting, it may be called at the expense of the Fund by any such Holder on like
notice. The record date for determining the Holders of Preferred Shares entitled to notice of and to vote at such special meeting shall be the close of business on the fifth (5th) Business Day preceding the calendar day on which such notice is
mailed or otherwise delivered. At any such special meeting and at each meeting of Holders of Preferred Shares held during a Voting Period at which trustees are to be elected, such Holders voting together as a class (to the exclusion of the Holders
of all other securities and classes of shares of beneficial interest of the Fund), shall be entitled to elect the number of trustees prescribed in <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U> on a <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">one-vote-per-share</FONT></FONT></FONT> basis. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) <U>Terms
of Office of Existing Trustees</U>. The terms of office of the incumbent trustees of the Fund at the time of a special meeting of Holders of Preferred Shares to elect additional trustees in accordance with <U>Section</U><U></U><U>&nbsp;2.7(b)(i)
</U>shall not be affected by the election at such meeting by the Holders of RVMTP Shares and such other Holders of Preferred Shares of the number of trustees that they are entitled to elect, and the trustees so elected by the Holders of RVMTP Shares
and such other Holders of Preferred Shares, together with the two (2)&nbsp;trustees elected by the Holders of Preferred Shares in accordance with <U>Section</U><U> </U><U>2.7(a)</U> hereof and the remaining trustees elected by the holders of the
Common Shares and Preferred Shares, shall constitute the duly elected trustees of the Fund. </P>
 <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">41 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) <U>Terms of Office of Certain Trustees to Terminate Upon Termination of
Voting Period</U>. Simultaneously with the termination of a Voting Period, the terms of office of the additional trustees elected by the Holders of the Preferred Shares pursuant to <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U> shall terminate, the
remaining trustees shall constitute the trustees of the Fund and the voting rights of the Holders of Preferred Shares to elect additional trustees pursuant to <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U> shall cease, subject to the provisions of the
last sentence of <U>Section</U><U></U><U>&nbsp;2.7(b)(i)</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) <U>Holders of RVMTP Shares to Vote on Certain
Matters</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) <U>Certain Amendments Requiring Approval of RVMTP</U><U> </U><U>Shares</U>. Except as otherwise permitted
by the terms of this Statement, so long as any RVMTP Shares are Outstanding, the Fund shall not, without the affirmative vote or consent of the Holders of at least a majority of the RVMTP Shares subject to this Statement Outstanding at the time,
voting together as a separate class, amend, alter or repeal the provisions of the Declaration or this Statement, whether by merger, consolidation or otherwise, so as to materially and adversely affect any preference, right or power of such RVMTP
Shares or the Holders thereof; <U>provided</U>, however, that (i)&nbsp;a change in the capitalization of the Fund in accordance with <U>Section</U><U></U><U>&nbsp;2.9</U> hereof shall not be considered to materially and adversely affect the rights
and preferences of the RVMTP Shares, and (ii)&nbsp;a division of a RVMTP Share shall be deemed to materially and adversely affect such preferences, rights or powers only if the terms of such division materially and adversely affect the Holders of
the RVMTP Shares. For purposes of the foregoing, no matter shall be deemed to materially and adversely affect any preference, right or power of a RVMTP Share of any Series or the Holder thereof unless such matter (i)&nbsp;alters or abolishes any
preferential right of such RVMTP Share, or (ii)&nbsp;creates, alters or abolishes any right in respect of redemption of such RVMTP Share (other than solely as a result of a division of a RVMTP Share or as otherwise permitted by
<U>Section</U><U></U><U>&nbsp;2.6(a)(ii)</U> of this Statement). So long as any RVMTP Shares are Outstanding, the Fund shall not, without the affirmative vote or consent of the Holders of at least 66 2/3% of the RVMTP Shares Outstanding at the time,
voting as a separate class, file a voluntary application for relief under Federal bankruptcy law or any similar application under state law for so long as the Fund is solvent and does not foresee becoming insolvent. For the avoidance of doubt, no
vote of the holders of Common Shares shall be required to amend, alter or repeal the provisions of this Statement, including any Appendix hereto. </P>
 <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">42 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) <U>1940 Act Matters</U>. Unless a higher percentage is provided for in the
Declaration, the affirmative vote of the Holders of at least &#147;a majority of the outstanding Preferred Shares,&#148; including all RVMTP Shares and Auction Preferred Shares Outstanding at the time, voting as a separate class, shall be required
(A)&nbsp;to approve any conversion of the Fund from a <FONT STYLE="white-space:nowrap">closed-end</FONT> to an <FONT STYLE="white-space:nowrap">open-end</FONT> investment company, (B)&nbsp;to approve any plan of reorganization (as such term is used
in the 1940 Act) adversely affecting such shares, or (C)&nbsp;to approve any other action requiring a vote of security holders of the Fund under Section&nbsp;13(a) of the 1940 Act. For purposes of the foregoing, the vote of a &#147;majority of the
outstanding Preferred Shares&#148; means the vote at an annual or special meeting duly called of (i)&nbsp;sixty-seven percent (67%) or more of such shares present at a meeting, if the Holders of more than fifty percent (50%) of such shares are
present or represented by proxy at such meeting, or (ii)&nbsp;more than fifty percent (50%) of such shares, whichever is less. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) <U>Certain Amendments Requiring Approval of Specific Series of RVMTP Shares</U>. Except as otherwise permitted by the
terms of this Statement, so long as any RVMTP Shares of a Series are Outstanding, the Fund shall not, without the affirmative vote or consent of the Holders of at least a majority of the RVMTP Shares of such Series Outstanding at the time, voting as
a separate class, amend, alter or repeal the provisions of the Appendix relating to such Series, whether by merger, consolidation or otherwise, so as to materially and adversely affect any preference, right or power set forth in such Appendix of the
RVMTP Shares of such Series or the Holders thereof; <U>provided</U>, <U>however</U>, that (i)&nbsp;a change in the capitalization of the Fund in accordance with <U>Section</U><U></U><U>&nbsp;2.9</U> hereof shall not be considered to materially and
adversely affect the rights and preferences of the RVMTP Shares of such Series, and (ii)&nbsp;a division of a RVMTP Share shall be deemed to materially and adversely affect such preferences, rights or powers only if the terms of such division
materially and adversely affect the Holders of the RVMTP Shares of such Series; and <U>provided</U>, <U>further</U>, that, except as otherwise permitted by <U>Section</U><U></U><U>&nbsp;2.6(a)(ii)</U> of this Statement, no amendment, alteration or
repeal of the obligation of the Fund to (x)&nbsp;pay the Term Redemption Price on the Term Redemption Date for a Series or the Mandatory Tender Redemption Price on any Mandatory Tender Redemption Date, or (y)&nbsp;accumulate dividends at the
Dividend Rate (as set forth in this Statement and the applicable Appendix hereto) for a Series shall be effected without, in each case, the prior unanimous vote or consent of the Holders of such Series of RVMTP Shares. For purposes of the foregoing,
no matter shall be deemed to materially and adversely affect any preference, right or power of a RVMTP Share of a Series or the Holder thereof unless such matter (i)&nbsp;alters or abolishes any preferential right of such RVMTP Share, or
(ii)&nbsp;creates, alters or abolishes any right in respect of redemption of such RVMTP Share. For the avoidance of doubt, no vote of the holders of Common Shares shall be required to amend, alter or repeal the provisions of this Statement,
including any Appendix hereto. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) <U>Voting Rights Set Forth Herein Are Sole Voting Rights</U>. Unless
otherwise required by law, the Declaration or this Statement, the Holders of RVMTP Shares shall not have any relative rights or preferences or other special rights with respect to voting such RVMTP Shares other than those specifically set forth in
this <U>Section</U><U></U><U>&nbsp;2.7</U>; <U>provided</U>, <U>however</U>, that nothing in this Statement or the Declaration shall be deemed to preclude or limit the right of the Fund (to the extent permitted by applicable law) to contractually
agree with any Holder or Designated Owner of RVMTP Shares of any Series that any action or inaction by the Fund shall require the consent or approval of such Holder or Designated Owner. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) <U>No Preemptive Rights or Cumulative Voting</U>. The Holders of RVMTP Shares shall have no preemptive rights or rights to
cumulative voting. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) <U>Voting for Trustees Sole Remedy for Fund&#146;s Failure to Declare or Pay Dividends</U>. In the
event that the Fund fails to declare or pay any dividends on any Series of RVMTP Shares on the Dividend Payment Date therefor, the exclusive remedy of the Holders of the RVMTP Shares shall be the right to vote for trustees pursuant to the provisions
of this <U>Section</U><U></U><U>&nbsp;2.7</U>. Nothing in this <U>Section</U><U></U><U>&nbsp;2.7(f)</U> shall be deemed to affect the obligation of the Fund to accumulate and, if permitted by applicable law, the Declaration and this Statement, pay
dividends at the Increased Rate in the circumstances contemplated by <U>Section</U><U></U><U>&nbsp;2.2(g)</U> hereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g)
<U>Holders Entitled to Vote</U>. For purposes of determining any rights of the Holders of RVMTP Shares to vote on any matter, whether such right is created by this Statement, by the Declaration, by statute or otherwise, no Holder of RVMTP Shares
shall be entitled to vote any RVMTP Share and no RVMTP Share shall be deemed to be &#147;Outstanding&#148; for the purpose of voting or determining the number of shares required to constitute a quorum if, prior to or concurrently with the time of
determination of shares entitled to vote or the time of the actual vote on the matter, as the case may be, the requisite Notice of Redemption with respect to such RVMTP Share shall have been given in accordance with this Statement and Deposit
Securities for the payment of the Redemption Price of such RVMTP Share shall have been deposited in trust with the Calculation and Paying Agent for that purpose. No RVMTP Share held by the Fund shall have any voting rights or be deemed to be
outstanding for voting or for calculating the voting percentage required on any other matter or other purposes. </P>
 <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">44 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.8 <U>Rating Agencies</U>. The Fund shall use commercially reasonable efforts to cause the
Rating Agencies to issue long-term credit ratings with respect to each Series of RVMTP Shares for so long as such Series is Outstanding. The Fund shall use commercially reasonable efforts to comply with any applicable Rating Agency Guidelines. If a
Rating Agency shall cease to rate the securities of <FONT STYLE="white-space:nowrap">tax-exempt</FONT> <FONT STYLE="white-space:nowrap">closed-end</FONT> management investment companies generally, the Board of Trustees shall terminate the
designation of such Rating Agency as a Rating Agency hereunder. The Board of Trustees may elect to terminate the designation of any Rating Agency as a Rating Agency hereunder with respect to a Series of RVMTP Shares so long as either
(i)&nbsp;immediately following such termination, there would be at least one Rating Agency with respect to such Series or (ii)&nbsp;it replaces the terminated Rating Agency with another NRSRO and provides notice thereof to the Holders of such
Series; <U>provided</U> that such replacement shall not occur unless such replacement Other Rating Agency shall have at the time of such replacement (i)&nbsp;published a rating for the RVMTP Shares of such Series and (ii)&nbsp;entered into an
agreement with the Fund to continue to publish such rating subject to the Rating Agency&#146;s customary conditions. The Board of Trustees may also elect to designate one or more other NRSROs as Other Rating Agencies hereunder with respect to a
Series of RVMTP Shares by notice to the Holders of the RVMTP Shares. The Rating Agency Guidelines of any Rating Agency may be amended by such Rating Agency without the vote, consent or approval of the Fund, the Board of Trustees or any Holder of
Preferred Shares, including any RVMTP Shares or Auction Preferred Shares, or Common Shares. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.9 <U>Issuance of Additional Preferred
Shares</U>. So long as any RVMTP Shares are Outstanding, the Fund may, without the vote or consent of the Holders thereof authorize, establish and create and issue and sell shares of one or more series of Preferred Shares, ranking on a parity with
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, in addition to then Outstanding Series of RVMTP Shares, including additional Series of RVMTP
Shares, and authorize, issue and sell additional shares of any such series of Preferred Shares then outstanding or so established or created including additional Series of RVMTP Shares, in each case in accordance with applicable law, provided that
the Fund shall, immediately after giving effect to the issuance of such Preferred Shares and to its receipt and application of the proceeds thereof, including to the redemption of Preferred Shares with such proceeds, have 1940 Act Asset Coverage
(calculated in the same manner as is contemplated by <U>Section</U><U></U><U>&nbsp;2.4(b)</U>). See also Section&nbsp;11.8(e)(iv) of the Auction Preferred Statement for additional provisions regarding issuance of additional preferred shares by the
Fund. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.10 <U>Status of Redeemed or Repurchased RVMTP Shares</U>. RVMTP Shares that at any time have been redeemed, exchanged or purchased
by the Fund shall, after such redemption or purchase, have the status of authorized but unissued Preferred Shares. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.11 <U>Distributions
with respect to Taxable Allocations</U>. Whenever a Taxable Allocation is to be made by the Fund with respect to the RVMTP Shares of a Series with respect to any Dividend Period and neither the Increased Rate nor the Maximum Rate is in effect during
such Dividend Period, clause (a), clause (b)&nbsp;or clause (c)&nbsp;of this <U>Section</U><U></U><U>&nbsp;2.11</U>, as applicable, shall govern: </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) The Fund may provide notice to the Calculation and Paying Agent prior to the
commencement of any Dividend Period for a Series of RVMTP Shares of the amount of the Taxable Allocation that will be made in respect of shares of such Series for such Dividend Period (a &#147;<U>Notice of Taxable Allocation</U>&#148;). Such Notice
of Taxable Allocation will state (i)&nbsp;the amount of the dividends payable in respect of each RVMTP Share of the applicable Series for such Dividend Period that will be a Taxable Allocation and (ii)&nbsp;the adjustment to the Dividend Rate for
each Rate Period (or portion thereof) included in such Dividend Period that will be required in order for the Fund to pay either (but not both of) the Additional Amount Payment, or Additional State Amount Payment, as applicable, to a Holder in
respect of the Taxable Allocation made in respect of such RVMTP Shares for such Dividend Period. In lieu of adjusting the Dividend Rate, the Fund may make, in addition to and in conjunction with the payment of regular dividends for such Dividend
Period, a supplemental distribution in respect of each share of such series for such Dividend Period equal to either the Additional Amount Payment or Additional State Amount Payment, as applicable, payable in respect of the Taxable Allocation made
in respect of such share for such Dividend Period. The Fund will use commercially reasonable efforts to make Taxable Allocations in respect of RVMTP Shares of each Series as provided in this <U>Section</U><U></U><U>&nbsp;2.11(a)</U>, and shall make
Taxable Allocations as described in <U>Section</U><U></U><U>&nbsp;2.11(b)</U> and/or <U>Section</U><U></U><U>&nbsp;2.11(c)</U> only if such commercially reasonable efforts do not reasonably permit the Fund to make a Taxable Allocation as
contemplated by this <U>Section</U><U></U><U>&nbsp;2.11(a)</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) If the Fund does not provide a Notice of Taxable
Allocation as provided in <U>Section</U><U></U><U>&nbsp;2.11(a)</U> with respect to a Taxable Allocation that is made in respect of RVMTP Shares of a Series, the Fund may make one or more supplemental distributions on shares of such Series equal to
the Additional Amount Payment to be paid to a Holder in respect of such Taxable Allocation. Any such supplemental distribution in respect of RVMTP Shares of a Series may be declared and paid on any date, without reference to any regular Dividend
Payment Date, to the Holders, or State Holders, as applicable, of shares of such Series as their names appear on the registration books of the Fund on such date, not exceeding fifteen (15)&nbsp;calendar days preceding the payment date of such
supplemental distribution, as may be fixed by the Board of Trustees. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) If in connection with a redemption of RVMTP
Shares, the Fund makes a Taxable Allocation without having either given advance notice thereof pursuant to <U>Section</U><U></U><U>&nbsp;2.11(a)</U> or made one or more supplemental distributions pursuant to
<U>Section</U><U></U><U>&nbsp;2.11(b)</U>, the Fund shall direct the Calculation and Paying Agent to send either (but not both) an Additional Amount Payment or Additional State Amount Payment, as applicable, in respect of such Taxable Allocation to
each Holder and each State Holder, as applicable, of such shares at such Person&#146;s address as the same appears or last appeared on the record books of the Fund. </P>
 <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">46 </P>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) The Fund shall not be required to pay Additional Amount Payments or
Additional State Amount Payments, as applicable, with respect to RVMTP Shares of any Series (i)&nbsp;with respect to any net capital gain or other taxable income determined by the Internal Revenue Service or any California taxing authority to be
allocable in a manner different from the manner used by the Fund, or (ii)&nbsp;with respect to Taxable Allocations made more than 90 days after the end of the fiscal year of the Fund to which such Taxable Allocation relates. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) For the avoidance of doubt, with respect to each Holder and each State Holder, the Fund shall only be required, pursuant to
this <U>Section</U><U></U><U>&nbsp;2.11</U> to pay either an Additional Amount Payment or an Additional State Amount Payment, in accordance with the definitions of such terms, but not both. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) No Additional Amount Payment or Additional State Amount Payment as described in this <U>Section</U><U></U><U>&nbsp;2.11</U>
shall apply or be payable with respect to any RVMTP Shares that are being registered and sold pursuant to an effective registration statement under the Securities Act or to any subsequent transfer of such registered RVMTP Shares. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.12 <U>Term Redemption Liquidity Account and Liquidity Requirement</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) On or prior to the then current Liquidity Account Initial Date with respect to any Series of RVMTP Shares, the Fund shall
segregate, by means of appropriate identification on its books and records or otherwise in accordance with the Fund&#146;s normal procedures, from the other assets of the Fund (the &#147;<U>Term Redemption Liquidity Account</U>&#148;) Liquidity
Account Investments with a Market Value equal to at least one hundred ten percent (110%) of the Term Redemption Amount with respect to such Series. The &#147;<U>Term Redemption Amount</U>&#148; for any Series of RVMTP Shares shall be equal to the
Redemption Price to be paid on the Term Redemption Date for such Series, based on the number of shares of such Series then Outstanding, assuming for this purpose that the Dividend Rate for such Series in effect at the time of the creation of the
Term Redemption Liquidity Account for such Series will be the Dividend Rate in effect for such Series until the Term Redemption Date for such Series. If, on any date after the then current Liquidity Account Initial Date, the aggregate Market Value
of the Liquidity Account Investments included in the Term Redemption Liquidity Account for a Series of RVMTP Shares as of the close of business on any Business Day is less than one hundred ten percent (110%) of the Term Redemption Amount with
respect to such Series, then the Fund shall take all such necessary actions, including segregating additional assets of the Fund as Liquidity Account Investments, so that the aggregate Market Value of the Liquidity Account Investments included in
the Term Redemption Liquidity Account for such Series is at least equal to one hundred ten percent (110%) of the Term Redemption Amount with respect to such Series not later than the close of business on the next succeeding Business Day. With
respect to </P>
 <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">47 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
assets of the Fund segregated as Liquidity Account Investments with respect to a Series of RVMTP Shares, the Adviser, on behalf of the Fund, shall be entitled on any date to release any Liquidity
Account Investments from such segregation and to substitute therefor other Liquidity Account Investments, so long as (i)&nbsp;the assets of the Fund segregated as Liquidity Account Investments at the close of business on such date have a Market
Value equal to at least one hundred ten percent (110%) of the Term Redemption Amount with respect to such Series and (ii)&nbsp;the assets of the Fund designated and segregated as Deposit Securities at the close of business on such date have a Market
Value equal to at least the Liquidity Requirement (if any) determined in accordance with <U>Section</U><U></U><U>&nbsp;2.12(b)</U> below with respect to such Series for such date. The Fund shall not permit any lien, security interest or encumbrance
to be created or permitted to exist on or in respect of any Liquidity Account Investments included in the Term Redemption Liquidity Account for any Series of RVMTP Shares, other than liens, security interests or encumbrances arising by operation of
law and any lien of the Custodian with respect to the payment of its fees or repayment for its advances. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) The Market
Value of the Deposit Securities held in the Term Redemption Liquidity Account for a Series of RVMTP Shares, from and after the 15th day of the calendar month (or if such day is not a Business Day, the next succeeding Business Day) that is the number
of months preceding the calendar month in which the Term Redemption Date for such Series occurs, in each such case as specified in the table set forth below, shall not be less than the percentage of the Term Redemption Amount for such Series set
forth below opposite such number of months (the &#147;<U>Liquidity Requirement</U>&#148;), but in all cases subject to the provisions of <U>Section</U><U></U><U>&nbsp;2.12(c)</U> below: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="68%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD WIDTH="67%"></TD>

<TD VALIGN="bottom" WIDTH="30%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman">Number of Months</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman">Preceding Month of
Term</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; ">Redemption Date:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Market&nbsp;Value&nbsp;of&nbsp;Deposit&nbsp;Securities<br>as Percentage of Term<br>Redemption Amount</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">5</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">20</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">4</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">40</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">3</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">60</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</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; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">80</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">1</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">100</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) If the aggregate Market Value of the Deposit Securities included in the Term Redemption
Liquidity Account for a Series of RVMTP Shares as of the close of business on any Business Day is less than the Liquidity Requirement in respect of such Series for such Business Day, then the Fund shall cause the segregation of additional or
substitute Deposit Securities in respect of the Term Redemption Liquidity Account for such Series, so that the aggregate Market Value of the Deposit Securities included in the Term Redemption Liquidity Account for such Series is at least equal to
the Liquidity Requirement for such Series not later than the close of business on the next succeeding Business Day. </P>
 <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">48 </P>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) The Deposit Securities included in the Term Redemption Liquidity Account for
a Series of RVMTP Shares may be applied by the Fund, in its discretion, towards payment of the Term Redemption Price for such Series as contemplated by <U>Section</U><U></U><U>&nbsp;2.6(d)</U>. Upon the deposit by the Fund with the Calculation and
Paying Agent of Deposit Securities having an initial combined Market Value sufficient to effect the redemption of the RVMTP Shares of a Series on the Term Redemption Date for such Series in accordance with
<U>Section</U><U></U><U>&nbsp;2.6(d)(ii)</U>, the requirement of the Fund to maintain the Term Redemption Liquidity Account as contemplated by this <U>Section</U><U></U><U>&nbsp;2.12</U> shall lapse and be of no further force and effect. Upon any
extension of the Term Redemption Date for a Series of RVMTP Shares pursuant to <U>Section</U><U></U><U>&nbsp;2.6(a)</U>, the then-current Liquidity Account Initial Date for such Series shall be extended as provided in the Appendix relating to such
Series, and the requirement of the Fund to maintain the Term Redemption Liquidity Account with respect to such Series in connection with such Liquidity Account Initial Date shall lapse and shall thereafter apply in respect of the Liquidity Account
Initial Date for such Series as so extended. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.13 <U>Global Certificate</U>. All RVMTP Shares of any Series Outstanding from time to time
shall be represented by one or more global certificates for such Series registered in the name of the Securities Depository or its nominee and no registration of transfer of shares of such Series of RVMTP Shares shall be made on the books of the
Fund to any Person other than the Securities Depository or its nominee or transferee. The foregoing restriction on registration of transfer shall be conspicuously noted on the face or back of the global certificates. Such global certificates will be
deposited with, or on behalf of, The Depository Trust Company and registered in the name of Cede&nbsp;&amp; Co., its nominee. Beneficial interests in the global certificates will be held only through The Depository Trust Company and any of its
participants. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.14 <U>Notice</U>. All notices or communications hereunder, unless otherwise specified in this Statement, shall be
sufficiently given if in writing and delivered in person, by telecopier, by Electronic Means or by overnight delivery. Notices delivered pursuant to this <U>Section</U><U></U><U>&nbsp;2.14</U> shall be deemed given on the date received. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.15 <U>Termination</U>. In the event that no RVMTP Shares of a Series are Outstanding subject to this Statement, all rights and preferences of
the RVMTP Shares of such Series established and designated hereunder shall cease and terminate, and all obligations of the Fund under this Statement with respect to such Series shall terminate. </P>
 <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">49 </P>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always">
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.16 <U>Appendices</U>. The designation of each Series of RVMTP Shares subject to this Statement
shall be set forth in an Appendix to this Statement. The Board of Trustees may, by resolution duly adopted, without shareholder approval (except as otherwise provided by this Statement or required by applicable law)&nbsp;(1) amend the Appendix to
this Statement relating to a Series so as to reflect any amendments to the terms applicable to such Series including an increase in the number of authorized shares of such Series and (2)&nbsp;add additional Series of RVMTP Shares by including a new
Appendix to this Statement relating to such Series. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.17 <U>Actions on Other than Business Days</U>. Unless otherwise provided herein, if
the date for making any payment, performing any act or exercising any right, in each case as provided for in this Statement, is not a Business Day, such payment shall be made, act performed or right exercised on the next succeeding Business Day,
with the same force and effect as if made or done on the nominal date provided therefor, and, with respect to any payment so made, no dividends, interest or other amount shall accrue for the period between such nominal date and the date of payment.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.18 <U>Modification</U>. To the extent permitted by <U>Section</U><U></U><U>&nbsp;2.7(c)</U> and any applicable Purchase Agreement, the
Board of Trustees, without the vote of the Holders of RVMTP Shares or any other outstanding shares issued by the Fund, may interpret, supplement or amend the provisions of this Statement or any Appendix hereto to supply any omission, resolve any
inconsistency or ambiguity or to cure, correct or supplement any defective or inconsistent provision, including any provision that becomes defective after the date hereof because of impossibility of performance or any provision that is inconsistent
with any provision of any other Preferred Shares of the Fund and, in addition to the amendments permitted by <U>Sections 2.6(g)</U> and <U>2.7(c)</U> hereof, may amend this Statement with respect to any Series of RVMTP Shares prior to the issuance
of RVMTP Shares of such Series. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.19 <U>Transfers</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) A Designated Owner or Holder of any RVMTP Shares of any Series may sell, transfer or otherwise dispose of RVMTP Shares only
in whole shares and only to Persons that are (1)(i) &#147;qualified institutional buyers&#148; (as defined in Rule 144A under the Securities Act or any successor provision) in accordance with Rule 144A under the Securities Act or any successor
provision that are registered <FONT STYLE="white-space:nowrap">closed-end</FONT> management investment companies, the shares of which are traded on a national securities exchange (&#147;<U><FONT STYLE="white-space:nowrap">Closed-End</FONT>
Funds</U>&#148;), banks or entities that are 100% direct or indirect subsidiaries of banks&#146; publicly traded parent holding companies (collectively, &#147;<U>Banks</U>&#148;), insurance companies or registered
<FONT STYLE="white-space:nowrap">open-end</FONT> management investment companies, (ii)&nbsp;tender option bond trusts (or similar vehicles) in which all investors are &#147;qualified institutional buyers&#148; (as defined in Rule 144A under the
Securities Act or any successor provision) that are <FONT STYLE="white-space:nowrap">Closed-End</FONT> Funds, Banks, insurance companies, or registered <FONT STYLE="white-space:nowrap">open-end</FONT> management investment companies, in each case
with respect to clauses (i)&nbsp;and (ii), in accordance with </P>
 <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">50 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
Rule 144A under the Securities Act or pursuant to another available exemption from registration under the Securities Act, in a manner not involving a public offering within the meaning of
Section&nbsp;4(a)(2) of the Securities Act, or (iii)&nbsp;other investors with the prior written consent of the Fund and (2)&nbsp;unless the prior written consent of the Fund is obtained, not PIMCO Persons, if such PIMCO Persons would, after such
sale and transfer, own more than 20% of the Outstanding RVMTP Shares. Any transfer in violation of the foregoing restrictions shall be void <I>ab initio</I>. The restrictions on transfer contained in this <U>Section</U><U></U><U>&nbsp;2.19(a)</U>
shall not apply to any RVMTP Shares that are being registered and sold pursuant to an effective registration statement under the Securities Act or to any subsequent transfer of such RVMTP Shares. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) If at any time the Fund is not furnishing information pursuant to Section&nbsp;13 or 15(d) of the Exchange Act, in order to
preserve the exemption for resales and transfers under Rule 144A, the Fund shall furnish, or cause to be furnished, to holders of RVMTP Shares and prospective purchasers of RVMTP Shares, upon request, information with respect to the Fund satisfying
the requirements of subsection (d)(4) of Rule 144A. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2.20 <U>No Additional Rights</U>. Unless otherwise required by law or the Declaration,
the Holders of RVMTP Shares shall not have any relative rights or preferences or other special rights with respect to such RVMTP Shares other than those specifically set forth in this Statement; <U>provided</U>, <U>however</U>, that nothing in this
Statement shall be deemed to preclude or limit the right of the Fund (to the extent permitted by applicable law) to contractually agree with any Holder or Designated Owner of RVMTP Shares of any Series with regard to any special rights of such
Holder or Designated Owner with respect to its investment in the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[Signature Page Begins on the Following Page] </P>
 <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">51 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>IN WITNESS WHEREOF</B>, PIMCO California Municipal Income Fund has caused this Statement to be
signed on July&nbsp;14, 2021 in its name and on its behalf by a duly authorized officer. The Declaration is on file with the Secretary of the Commonwealth of Massachusetts, and the said officer of the Fund has executed this Statement as an officer
and not individually, and the obligations and rights of the Fund set forth in this Statement are not binding upon any such officer, or the trustees of the Fund or shareholders of the Fund, individually, but are binding only upon the assets and
property of the Fund. </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="7%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>PIMCO CALIFORNIA MUNICIPAL</B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>INCOME FUND</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<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/ Eric D. Johnson</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name: Eric D. Johnson</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title: President</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" ALIGN="center">[Signature Page to PIMCO
California Municipal Income Fund Statement of Rights] </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>APPENDIX A </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO CALIFORNIA MUNICIPAL INCOME FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>REMARKETABLE VARIABLE RATE MUNIFUND TERM PREFERRED SHARES, </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SERIES 2051 </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>Preliminary
Statement and Incorporation By Reference </U></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Appendix (this &#147;<U>Appendix</U>&#148;) amends and restates that certain Appendix
dated September&nbsp;18, 2018 relating to the Variable Rate MuniFund Term Preferred Shares, Series 2022 of PIMCO California Municipal Income Fund and redesignates such Series as the Remarketable Variable Rate MuniFund Term Preferred Shares, Series
2051. Except as set forth below, this Appendix incorporates by reference the terms set forth with respect to all Series of such Remarketable Variable Rate MuniFund Term Preferred Shares in that &#147;Amended and Restated Statement Establishing and
Fixing the Rights and Preferences of Remarketable Variable Rate MuniFund Term Preferred Shares&#148;, effective as of September&nbsp;18, 2018, as amended and restated on January&nbsp;16, 2019 and July&nbsp;14, 2021 (the &#147;<U>RVMTP
Statement</U>&#148;). This Appendix has been adopted by resolution of the Board of Trustees of PIMCO California Municipal Income Fund. Capitalized terms used herein but not defined herein have the respective meanings therefor set forth in the RVMTP
Statement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;1. <U>Designation as to Series</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Remarketable Variable Rate MuniFund Term Preferred Shares, Series 2051: A series of 293 Preferred Shares classified as Remarketable Variable
Rate MuniFund Term Preferred Shares is hereby designated as the &#147;Remarketable Variable Rate MuniFund Term Preferred Shares, Series 2051&#148; (the &#147;<U>Series 2051 RVMTP Shares</U>&#148;). Each share of such Series shall have such
preferences, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption, in addition to those required by applicable law and those that are expressly set forth in the
Declaration, the <FONT STYLE="white-space:nowrap">By-Laws</FONT> and the RVMTP Statement (except as the RVMTP Statement may be expressly modified by this Appendix), as are set forth in this <U>Appendix A</U>. The Series 2051 RVMTP Shares shall
constitute a separate series of Preferred Shares and of the Remarketable Variable Rate MuniFund Term Preferred Shares and each Series 2051 RVMTP Share shall be identical. The following terms and conditions shall apply solely to the Series 2051 RVMTP
Shares: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;2. <U>Number of Authorized Shares of Series</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The number of authorized shares is 293. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;3. <U>Date of Original Issuance and the Date of Redesignation with respect to Series</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Date of Original Issuance is September&nbsp;18, 2018. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Date of Redesignation is July&nbsp;14, 2021. </P>
 <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">A-1 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>APPENDIX A </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;4. <U>Liquidation Preference Applicable to Series</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Liquidation Preference is $100,000.00 per share. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;5. <U>Term Redemption Date and Early Term Redemption Date Applicable to Series</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Term Redemption Date is July&nbsp;14, 2051, subject to extension pursuant to Section&nbsp;2.6(a)(ii) of the RVMTP Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The initial &#147;<U>Early Term Redemption Date</U>&#148; is July&nbsp;14, 2024. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;6. <U>Dividend Payment Dates Applicable to Series</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Dividend Payment Dates are the first Business Day of the month next following each Dividend Period, subject to the definition of
&#147;Dividend Period&#148; set forth in <U>Section</U><U></U><U>&nbsp;9</U> below, as applicable. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7. <U>Liquidity Account
Initial Date Applicable to Series</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Liquidity Account Initial Date is the date that is six (6)&nbsp;months prior to the Term
Redemption Date or, if applicable, the date that is six (6)&nbsp;months prior to the then current Term Redemption Date as extended pursuant to Section&nbsp;2.6(a)(ii) of the RVMTP Statement or, if such date is not a Business Day, the next succeeding
Business Day. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;8. <U>Exceptions to Certain Definitions Applicable to the Series</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following definitions contained under the heading &#147;Definitions&#148; in the RVMTP Statement are hereby amended as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Not applicable. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;9. <U>Additional Definitions Applicable to the Series</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following terms shall have the following meanings (with terms defined in the singular having comparable meanings when used in the plural
and vice versa), unless the context otherwise requires: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Dividend Period</U>&#148; means, with respect to the Series 2051 RVMTP
Shares, in the case of the first Dividend Period, the period beginning on the Date of Original Issuance for such Series and ending on and including September&nbsp;30, 2018 and for each subsequent Dividend Period, the period beginning on and
including the first calendar day of the month following the month in which the previous Dividend Period ended and ending on and including the last calendar day of such month; <U>provided</U>, <U>however</U>, in connection with any voluntary exchange
by the Holders or </P>
 <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">A-2 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>APPENDIX A </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Designated Owners thereof of Series 2051 RVMTP Shares for any new series of Remarketable Variable Rate MuniFund Term Preferred Shares or any other securities
of the Fund, the Board of Trustees may declare that a Dividend Period shall begin on and include the first calendar day of the month in which such exchange will occur and shall end on but not include the date of such exchange, and in such case, the
Dividend Payment Date for such dividend shall be the date of such exchange and provided further that, in connection with any reorganization or merger involving the Fund, the Board of Trustees may establish a Dividend Period of less than a month, in
which case the Dividend Payment Date for such dividend shall be the first Business Day following the end of such Dividend Period. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Optional Redemption Premium</U>&#148; means with respect to each Series 2051 RVMTP Share to be redeemed an amount equal to: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) if the Optional Redemption Date for such Series 2051 RVMTP Share occurs prior to September&nbsp;18, 2019, the product of (i) 0.92%, (ii)
the Liquidation Preference of such RVMTP Share and (iii)&nbsp;a fraction, the numerator of which is the number of calendar days from and including the date of redemption to and including September&nbsp;18, 2019 and the denominator of which is the
actual number of calendar days from and including September&nbsp;18, 2018 to and including September&nbsp;18, 2019; or </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) if the
Optional Redemption Date for such Series 2051 RVMTP Share occurs on or after September&nbsp;18, 2019, none. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;10.
<U>Amendments to Terms of RVMTP Shares Applicable to the Series</U>. The following provisions contained under the heading &#147;Terms of the RVMTP Shares&#148; in the RVMTP Statement are hereby amended as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Not applicable. </P>
 <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">A-3 </P>


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

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>IN WITNESS WHEREOF</B>, PIMCO California Municipal Income Fund has caused this Appendix to be
signed on July&nbsp;14, 2021 in its name and on its behalf by a duly authorized officer. The Declaration is on file with the Secretary of the Commonwealth of Massachusetts, and the said officer of the Fund has executed this Appendix as an officer
and not individually, and the obligations and rights of the Fund set forth in this Appendix are not binding upon any such officer, or the trustees of the Fund or shareholders of the Fund, individually, but are binding only upon the assets and
property of the Fund. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD WIDTH="92%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>PIMCO CALIFORNIA MUNICIPAL</B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>INCOME FUND</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<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/ Eric D. Johnson</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name: Eric D. Johnson</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title: President</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" ALIGN="center">[Signature Page to PIMCO
California Municipal Income Fund Statement of Rights Appendix A] </P>

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<DOCUMENT>
<TYPE>EX-FILING FEES
<SEQUENCE>12
<FILENAME>d604547dexfilingfees.htm
<DESCRIPTION>EX-FILING FEES
<TEXT>
<HTML><HEAD>
<TITLE>EX-FILING FEES</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit (s) </B></P>
<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"><B>Form <FONT STYLE="white-space:nowrap">N-2</FONT> </B></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 California
Municipal Income Fund </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"><B>Table 1: Newly Registered and Carry Forward Securities </B></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 WIDTH="13%"></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="7%"></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="9%"></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="9%"></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 ;"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:7pt; font-family:Times New Roman" ALIGN="center">Security</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:7pt; font-family:Times New Roman" ALIGN="center">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 ;">Fee&nbsp;&nbsp;<BR>Calculation&nbsp;&nbsp;<BR>or Carry&nbsp;&nbsp;<BR>Forward&nbsp;&nbsp;<BR>Rule&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Amount&nbsp;&nbsp;<BR>Registered&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Proposed&nbsp;&nbsp;<BR>Maximum&nbsp;&nbsp;<BR>Offering&nbsp;&nbsp;<BR>Price Per&nbsp;&nbsp;<BR>Unit&nbsp;&nbsp;</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">Maximum<BR>Aggregate<BR>Offering</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:7pt; font-family:Times New Roman" ALIGN="center">Price</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">Fee</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:7pt; font-family:Times New Roman" ALIGN="center">Rate</P></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&nbsp;&nbsp;<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&nbsp;<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&nbsp;<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&nbsp;<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&nbsp;&nbsp;<BR>Previously&nbsp;Paid&nbsp;&nbsp;<BR>In Connection&nbsp;&nbsp;<BR>with Unsold&nbsp;&nbsp;<BR>Securities to
be&nbsp;&nbsp;<BR>Carried&nbsp;&nbsp;<BR>Forward&nbsp;&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">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" ALIGN="center" STYLE="padding-bottom:1pt ;">Equity&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Common Shares of Beneficial Interest, $0.00001 par value per share</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">Rule 456(b) and Rule 457(r)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">$1,000,000&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">$92.70&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">$92.70</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"></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"></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"></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" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&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" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&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" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&nbsp;</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">&#151;&nbsp;&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="center" 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" ALIGN="center" STYLE="padding-bottom:1pt ;">$1,000,000&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" ALIGN="center" STYLE="padding-bottom:1pt ;">$92.70</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="center" STYLE="padding-bottom:1pt ;BORDER-LEFT:1px solid #000000; padding-left:8pt">Total Fees Previously 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" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&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" 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="center" 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" ALIGN="center" STYLE="padding-bottom:1pt ;">&#151;&nbsp;&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" 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="center" 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" ALIGN="center" STYLE="padding-bottom:1pt ;BORDER-BOTTOM:1px solid #000000">$92.70</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> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman">(1) The registration fee is calculated in accordance with Rule 457(o) under the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;), based on the proposed maximum aggregate offering price, and Rule 457(r) under the Securities Act. </P>
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<DOCUMENT>
<TYPE>EX-99.U
<SEQUENCE>13
<FILENAME>d604547dex99u.htm
<DESCRIPTION>EX-99.U
<TEXT>
<HTML><HEAD>
<TITLE>EX-99.u</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">PIMCO CALIFORNIA MUNICIPAL INCOME FUND </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:6pt; 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 June&nbsp;15, 2022: </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 WIDTH="9%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="90%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">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 Securities and Exchange
Commission (&#147;SEC&#148;), 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 of 1933, as amended, the Securities Exchange Act of 1934, as amended, the Investment Company
Act of 1940, as amended (the &#147;1940 Act&#148;), 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 the New York Stock Exchange 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>

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

 <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 21<SUP
STYLE="font-size:75%; vertical-align:top">st</SUP> day of September, 2022. </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="7%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ <FONT STYLE="white-space:nowrap">Wu-Kwan</FONT> Kit</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">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>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">PCQ - Certified Resolution of the Board
of Trustees </P>

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