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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number: 811-21188
Registrant Name: PIMCO California Municipal Income Fund III
Address of Principal Executive Offices: 1345 Avenue of the Americas, New York, NY 10105
Name and Address of Agent for Service: Lawrence G. Altadonna — 1345 Avenue of the Americas, New York, NY 10105
Registrant’s telephone number, including area code: 212-739-3371
Date of Fiscal Year End: September 30, 2008
Date of Reporting Period: December 31, 2007
Form N-Q is to be used by the registered management investment company, other than a small business investment company registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (‘‘OMB’’) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments
PIMCO California Municipal Income Fund III
Schedule of Investments
December 31, 2007 (unaudited)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
CALIFORNIA MUNICIPAL BONDS & NOTES–92.8%
California–92.8%
$
1,000
Alameda Public Financing Auth. Rev., 7.00%, 6/1/09
NR/NR
$
999,260
Assoc. of Bay Area Gov’t Finance Auth. Rev., Odd Fellows Home,
3,200
5.20%, 11/15/22
NR/A+
3,313,664
11,725
5.35%, 11/15/32
NR/A+
12,114,036
Burbank Public Finance Auth., Tax Allocation, San Fernando Redev. Project,
1,135
5.50%, 12/1/28
NR/BBB
1,152,070
1,000
5.50%, 12/1/33
NR/BBB
1,013,010
2,000
Butte-Glenn Community College Dist., GO, 5.00%, 8/1/26 (MBIA)
Aaa/NR
2,084,780
2,000
Capistrano Unified School Dist., Community Facs. Dist., Special Tax,
6.00%, 9/1/32, (Pre-refunded @ $100, 9/1/13) (b)
NR/NR
2,276,540
500
Carson Public Financing Auth., Special Assessment,
5.00%, 9/2/31, Ser. B
NR/NR
443,540
1,000
Cathedral City Public Financing Auth., Tax Allocation,
5.00%, 8/1/33, Ser. A (MBIA)
Aaa/AAA
1,026,430
1,150
Ceres Redev. Agcy., Tax Allocation, 5.00%, 11/1/33 (MBIA)
Aaa/AAA
1,192,274
Ceres Unified School Dist., GO (FGIC),
2,825
zero coupon, 8/1/28
Aaa/AAA
884,620
2,940
zero coupon, 8/1/29
Aaa/AAA
866,183
Chula Vista Community Facs. Dist., Special Tax,
2,000
5.125%, 9/1/36
NR/NR
1,715,700
1,600
5.75%, 9/1/33
NR/NR
1,535,888
675
6.15%, 9/1/26
NR/NR
683,957
1,620
6.20%, 9/1/33
NR/NR
1,641,384
1,000
City of Carlsbad, Special Assessment, 6.00%, 9/2/34
NR/NR
1,005,540
Contra Costa Cnty. Public Financing Auth., Tax Allocation, Ser. A,
1,415
5.625%, 8/1/33
NR/BBB
1,440,979
6,585
5.625%, 8/1/33, (Pre-refunded @ $100, 8/1/13) (b)
NR/BBB
7,358,606
3,775
Cucamonga School Dist., CP, 5.20%, 6/1/27
NR/A−
3,801,387
Educational Facs. Auth. Rev.,
2,455
Loyola Marymount, zero coupon, 10/1/34 (MBIA)
Aaa/NR
640,190
5,000
Pepperdine Univ., 5.00%, 9/1/33, Ser. A (FGIC)
Aaa/AAA
5,095,300
500
Franklin-McKinley School Dist., GO,
5.00%, 8/1/27, Ser. B, (Pre-refunded @ $100, 8/1/13) (FSA) (b)
Aaa/AAA
544,810
Fremont Community Facs. Dist. No. 1, Special Tax,
1,250
5.30%, 9/1/30
NR/NR
1,125,138
5,000
6.30%, 9/1/31
NR/NR
5,045,200
9,500
Fresno School Unified Dist., GO, 6.00%, 8/1/26, Ser. A (MBIA)
Aaa/AAA
10,423,305
4,380
Glendale Electric Works Rev., 5.00%, 2/1/27 (MBIA)
Aaa/AAA
4,514,291
Golden State Tobacco Securitization Corp., Tobacco Settlement Rev.,
10,000
5.00%, 6/1/33, Ser. A
Baa3/BBB
8,657,200
PIMCO California Municipal Income Fund III
Schedule of Investments
December 31, 2007 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
$
10,000
5.00%, 6/1/35, Ser. A (FGIC) (h)
Aaa/AAA
$
10,092,000
9,000
5.00%, 6/1/45 (AMBAC-TCRS) (h)
Aaa/AAA
9,105,120
4,000
5.00%, 6/1/45, Ser. A (FGIC-TCRS) (h)
Aaa/AAA
4,017,040
18,000
6.25%, 6/1/33, Ser. A
Aaa/AAA
19,753,920
38,490
6.75%, 6/1/39, Ser. A, (Pre-refunded @ $100, 6/1/13) (b)
Aaa/AAA
44,500,983
Health Facs. Finance Auth. Rev.,
5,000
Adventist Health System, 5.00%, 3/1/33
NR/A
4,971,300
6,000
Cottage Health System, 5.00%, 11/1/33, Ser. B (MBIA)
Aaa/AAA
6,139,500
5,000
Kaiser Permanente, 5.00%, 10/1/18, Ser. B
A3/AAA
5,127,450
Paradise VY Estates (CA Mtg. Ins.),
2,000
5.125%, 1/1/22
NR/A+
2,052,620
1,550
5.25%, 1/1/26
NR/A+
1,588,223
2,000
Sutter Health, 6.25%, 8/15/35, Ser. A
Aa3/AA−
2,111,700
7,750
Infrastructure & Economic Dev. Bank Rev.,
Bay Area Toll Bridges, 5.00%, 7/1/36, (Pre-refunded @
$100, 1/1/28) (AMBAC) (b) (h)
Aaa/AAA
8,461,683
Kaiser Assistance Corp.,
3,000
5.50%, 8/1/31, Ser. B
A2/A
3,045,840
8,000
5.55%, 8/1/31, Ser. A
NR/A+
8,141,360
3,725
La Mesa-Spring Valley School Dist., GO,
5.00%, 8/1/26, Ser. A, (Pre-refunded @ $100, 8/1/12) (FGIC) (b)
Aaa/AAA
4,014,731
20
Lancaster Financing Auth., Tax Allocation, 4.75%, 2/1/34 (MBIA)
Aaa/AAA
19,881
825
Lee Lake Water Dist. Community Facs. Dist. No. 2, Montecito Ranch,
Special Tax, 6.125%, 9/1/32
NR/NR
819,522
5,000
Long Beach Community College Dist., GO,
5.00%, 5/1/28, Ser. A, (Pre-refunded @ $100, 5/1/13) (MBIA) (b)
Aaa/AAA
5,429,550
Los Angeles Department of Water & Power Rev., Ser. A (h),
6,000
4.75%, 7/1/30 (FSA)
Aaa/AAA
6,060,240
10,000
5.00%, 7/1/30
Aa3/AA−
10,314,500
20,000
5.00%, 7/1/35 (FSA)
Aaa/AAA
20,800,200
Los Angeles Unified School Dist., GO,
3,000
5.125%, 1/1/27, Ser. E, (Pre-refunded @ $100, 7/1/12) (MBIA) (b)
Aaa/AAA
3,242,430
5,280
Modesto Irrigation Dist., CP, 5.00%, 7/1/33, Ser. A (MBIA)
Aaa/AAA
5,409,730
4,585
Moreno Valley Unified School Dist. Community Facs. Dist., Special Tax,
5.20%, 9/1/36
NR/NR
3,952,545
5,000
Oakland, GO, 5.00%, 1/15/33, Ser. A (MBIA)
Aaa/AAA
5,136,250
Oakland Redev. Agcy., Tax Allocation, (Pre-refunded @ $100, 3/1/13) (b),
985
5.25%, 9/1/27
NR/A
1,077,826
1,545
5.25%, 9/1/33
NR/A
1,692,130
PIMCO California Municipal Income Fund III
Schedule of Investments
December 31, 2007 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
$
5,000
Orange Cnty. Community Facs. Dist., Ladera Ranch, Special Tax,
5.55%, 8/15/33, Ser. A
NR/NR
$
4,801,800
5,000
Orange Cnty. Unified School Dist., CP, 4.75%, 6/1/29 (MBIA)
Aaa/AAA
5,033,300
Orange Cnty. Water Dist. Rev., CP, Ser. B (MBIA),
1,000
5.00%, 8/15/28
Aaa/AAA
1,027,010
5,525
5.00%, 8/15/34 (h)
Aaa/AAA
5,660,418
5,000
Pajaro Valley Unified School Dist., GO,
5.00%, 8/1/26, Ser. A, (Pre-refunded @ $100, 8/1/13) (FSA) (b) (h)
Aaa/AAA
5,448,100
2,000
Palm Desert Financing Auth., Tax Allocation,
5.00%, 4/1/25, Ser. A (MBIA)
Aaa/AAA
2,075,800
6,455
Pasadena Water Rev., 5.00%, 6/1/33 (FGIC) (h)
Aaa/AAA
6,608,177
1,410
Pomona Public Financing Auth. Rev., 5.00%, 12/1/37, Ser. AF (MBIA)
Aaa/AAA
1,448,803
Poway Unified School Dist., Special Tax, Community Facs. Dist. No. 6,
1,700
5.125%, 9/1/28, Area B
NR/NR
1,551,301
1,950
5.125%, 9/1/28
NR/BBB
1,837,290
1,285
6.05%, 9/1/25
NR/NR
1,311,432
2,100
6.125%, 9/1/33
NR/NR
2,144,856
5,000
Riverside, CP, 5.00%, 9/1/33 (AMBAC)
Aaa/AAA
5,125,900
500
Rocklin Unified School Dist. Community Facs., Special Tax,
5.00%, 9/1/29 (MBIA)
Aaa/AAA
512,840
1,360
Sacramento City Financing Auth. Rev., North Natomas CFD No. 2,
6.25%, 9/1/23, Ser. A
NR/NR
1,354,750
10,820
Sacramento Cnty. Water Financing Auth. Rev.,
5.00%, 6/1/34, (Pre-refunded @ $100, 6/1/13) (AMBAC) (b) (h)
Aaa/AAA
11,763,071
8,000
Sacramento Muni Utility Dist., Electric Rev.,
5.00%, 8/15/33, Ser. R (MBIA) (h)
Aaa/AAA
8,236,080
12,075
San Diego Community College Dist., GO, 5.00%, 5/1/28, Ser. A (FSA) (h)
Aaa/AAA
12,525,156
San Diego Community Facs. Dist. No. 3, Special Tax, Ser. A (a),
890
5.60%, 9/1/21
NR/NR
834,259
580
5.70%, 9/1/26
NR/NR
547,607
1,700
5.75%, 9/1/36
NR/NR
1,586,287
San Diego Unified School Dist., GO (FSA),
480
5.00%, 7/1/26, Ser. C
Aaa/AAA
513,782
11,000
5.00%, 7/1/26, Ser. E
Aaa/AAA
11,840,620
8,425
5.00%, 7/1/28, Ser. E
Aaa/AAA
9,068,838
1,500
San Diego Univ. Foundation Auxiliary Organization, Rev.,
5.00%, 3/1/27, Ser. A (MBIA)
Aaa/AAA
1,541,235
3,000
San Jose, Libraries & Parks, GO, 5.125%, 9/1/31
Aa1/AA+
3,100,230
15,700
San Marcos Public Facs. Auth., Tax Allocation,
5.00%, 8/1/33, Ser. A (FGIC) (h)
Aaa/AAA
16,043,830
PIMCO California Municipal Income Fund III
Schedule of Investments
December 31, 2007 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Santa Ana Unified School Dist., GO, Ser. B (FGIC),
$
2,515
zero coupon, 8/1/26
Aaa/AAA
$
1,001,322
3,520
zero coupon, 8/1/28
Aaa/AAA
1,253,965
2,500
zero coupon, 8/1/30
Aaa/AAA
796,750
3,780
zero coupon, 8/1/31
Aaa/AAA
1,139,935
3,770
zero coupon, 8/1/32
Aaa/AAA
1,075,393
Santa Margarita Water Dist., Special Tax,
1,820
6.25%, 9/1/29
NR/NR
1,840,511
4,125
6.25%, 9/1/29, (Pre-refunded @ $102, 9/1/09) (b)
NR/NR
4,417,092
3,550
Santa Monica Community College Dist., GO,
zero coupon, 8/1/27, Ser. C (MBIA)
Aaa/AAA
1,312,044
1,205
Sequoia Union High School Dist., GO,
5.00%, 7/1/23, (Pre-refunded @ $102, 7/1/11) (MBIA) (b)
Aaa/NR
1,302,689
4,425
South Tahoe JT Powers Financing Auth. Rev., 5.45%, 10/1/33
NR/BBB
4,470,179
Southern CA Public Power Auth., Power Project Rev., Magnolia Power,
(Pre-refunded @ $100, 7/1/13) (AMBAC) (b),
12,200
5.00%, 7/1/33
Aaa/AAA
13,278,724
15,010
5.00%, 7/1/33 (h)
Aaa/AAA
16,337,184
4,095
State Department Veteran Affairs Home Purchase Rev.,
5.35%, 12/1/27, Ser. A (AMBAC)
Aaa/AAA
4,253,886
State Public Works Board Lease Rev.,
1,105
Patton, 5.375%, 4/1/28
A2/A
1,140,769
4,600
Univ. CA M.I.N.D. Inst., 5.00%, 4/1/28, Ser. A
Aa2/AA−
4,701,706
Statewide Community Dev. Auth. Rev.,
1,150
Baptist Univ., 5.50%, 11/1/38, Ser. A
NR/NR
1,096,192
2,500
Berkeley Montessori School, 7.25%, 10/1/33
NR/NR
2,545,925
1,250
Huntington Park Chapter School, 5.25%, 7/1/42, Ser. A
NR/NR
1,089,713
3,505
Internext Group, CP, 5.375%, 4/1/30
NR/BBB
3,357,825
7,300
Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.)
NR/A+
7,618,645
15,000
Memorial Health Services, 5.50%, 10/1/33
NR/A+
15,354,750
10,000
Sutter Health, 5.50%, 8/15/34
Aa3/AA−
10,290,200
2,500
Valleycare Health, 5.125%, 7/15/31, Ser. A
NR/NR
2,186,250
975
Windrush School, 5.50%, 7/1/37
NR/NR
936,566
2,000
Tamalpais Union High School Dist., GO, 5.00%, 8/1/26 (MBIA)
Aaa/AAA
2,062,540
2,000
Temecula Public Financing Auth. Community Facs. Dist.,
Crowne Hill, Special Tax, 6.00%, 9/1/33
NR/NR
1,984,540
Tobacco Securitization Agcy. Rev.,
Alameda Cnty.,
8,100
5.875%, 6/1/35
Baa3/NR
7,910,946
7,000
6.00%, 6/1/42
Baa3/NR
6,869,660
4,910
Gold Cnty., zero coupon, 6/1/33
NR/BBB
929,267
2,000
Kern Cnty., 6.125%, 6/1/43, Ser. A
NR/BBB
1,998,420
PIMCO California Municipal Income Fund III
Schedule of Investments
December 31, 2007 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
$
5,000
Tobacco Securitization Auth. of Southern California Rev.,
5.00%, 6/1/37, Ser. A-1
Baa3/BBB
$
4,222,200
2,950
Torrance Medical Center Rev., 5.50%, 6/1/31, Ser. A
A1/A+
3,027,497
Univ. Rev. (FSA) (h),
5,500
4.75%, 5/15/35, Ser. F
Aaa/AAA
5,532,725
21,125
5.00%, 9/1/33, Ser. Q, (Pre-refunded @ $101, 9/1/11) (b)
Aaa/AAA
22,706,206
2,355
5.00%, 9/1/34, Ser. Q, (Pre-refunded @ $101, 9/1/11) (b)
Aaa/AAA
2,531,272
Vernon Electric System Rev., Malburg Generating Station,
4,000
5.50%, 4/1/33, (Pre-refunded @ $100, 4/1/08) (b)
Aaa/NR
4,025,360
West Basin Municipal Water Dist. Rev., CP,
1,000
5.00%, 8/1/30, Ser. A (MBIA)
Aaa/AAA
1,029,340
2,500
William S. Hart Union High School Dist., Special Tax, 6.00%, 9/1/33
NR/NR
2,480,675
2,750
Woodland Finance Auth., Lease Rev., 5.00%, 3/1/32 (XLCA)
Aaa/AAA
2,819,658
Total California Municipal Bonds & Notes (cost—$552,287,674)
576,144,849
OTHER MUNICIPAL BONDS & NOTES–5.1%
Florida–0.7%
4,720
Sarasota Cnty. Health Facs. Auth. Rev., 5.625%, 7/1/27
NR/NR
4,380,160
Indiana–0.7%
5,000
Vigo Cnty. Hospital Auth. Rev., 5.70%, 9/1/37 (c)
NR/NR
4,524,850
New York–0.4%
2,490
State Dormitory Auth. Hospital Rev., 6.25%, 8/15/15 (FHA)
Aa2/AAA
2,681,406
Pennsylvania–0.7%
Allegheny Cnty. Hospital Dev. Auth. Rev., Ser. A,
1,000
5.00%, 11/15/28
Ba2/BB
859,470
4,000
5.375%, 11/15/40
Ba2/BB
3,464,200
4,323,670
Puerto Rico–2.3%
Electric Power Auth. Power Rev., Ser. NN,
315
5.125%, 7/1/29, (Pre-refunded @ $100, 7/1/13) (b)
A3/BBB+
343,990
1,185
5.125%, 7/1/29
A3/AAA
1,294,056
Public Building Auth. Rev., Gov’t Facs.,
4,420
5.00%, 7/1/36, Ser. I (GTD)
Baa3/BBB−
4,207,442
290
5.25%, 7/1/36, Ser. D
Baa3/BBB−
290,803
Puerto Rico Sales Tax Financing Corp., Rev., Ser. A,
23,200
zero coupon, 8/1/47 (AMBAC)
Aaa/AAA
3,065,648
29,200
zero coupon, 8/1/54 (AMBAC)
Aaa/AAA
2,589,456
26,300
zero coupon, 8/1/56
A1/A+
2,152,129
13,943,524
PIMCO California Municipal Income Fund III
Schedule of Investments
December 31, 2007 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
South Dakota–0.3%
$
2,000
Minnehaha Cnty. Health Facs. Rev., Bethany Lutheran, 5.50%,
12/1/35
NR/NR
$
1,800,520
Total Other Municipal Bonds & Notes (cost–$32,707,058)
31,654,130
CALIFORNIA VARIABLE RATE NOTES (a)(c)(d)(e)–1.2%
2,000
Golden State Tobacco Securitization Corp. Rev.,
10.377%, 6/1/35 (FGIC)
Aaa/NR
2,092,000
Los Angeles Unified School Dist., GO (MBIA),
1,745
9.115%, 1/1/23
NR/NR
1,823,263
2,090
12.174%, 1/1/11
NR/NR
3,256,994
Total California Variable Rate Notes (cost–$7,145,916)
7,172,257
OTHER VARIABLE RATE NOTES (e)–0.6%
Puerto Rico–0.6%
3,800
Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A (cost–$3,978,120)
Ba1/BBB−
3,970,582
U.S. TREASURY BILLS (f)–0.4%
2,625
3.01%-3.21%, 2/28/08-3/13/08 (cost–$2,609,662)
2,609,662
Total Investments before options written (cost–$598,728,430)–100.1%
621,551,480
Contracts
OPTIONS WRITTEN (g)–(0.1)%
Call Options–(0.1)%
U.S. Treasury Notes 10 yr. Futures (CBOT),
518
strike price $114, expires 2/22/08
(582,750
)
Put Options–(0.0)%
U.S. Treasury Notes 10 yr. Futures (CBOT),
518
strike price $110, expires 2/22/08
(129,500
)
Total Options Written (premiums received–$714,845)
(712,250
)
Total Investments net of options written (cost–$598,013,585) –100.0%
$
620,839,230
Notes to Schedule of Investments:
*
Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security are fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees or persons acting at their discretion pursuant to guidelines established by the Board of Trustees. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the last quoted mean price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Exchange traded options and futures are valued at the settlement price determined by the relevant exchange. Short-term investments maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days. The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold. The Fund’s net asset value is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (‘‘NYSE’’) on each day the NYSE is open for business.
(a)
Private Placement – Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $10,140,410, representing 1.63% of total investments.
(b)
Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate).
(c)
144A Security – Security exempt from registration, under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.
(d)
Inverse Floater – The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index.
(e)
Variable Rate Notes – Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on December 31, 2007.
(f)
All or partial amount segregated as collateral for futures contracts.
(g)
Non-income producing.
(h)
Residual Interest Bonds held in trust – Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
Glossary:
AMBAC – insured by American Municipal Bond Assurance Corp.
CA Mtg. Ins. – insured by California Mortgage Insurance
CA St. Mtg. – insured by California State Mortgage
CBOT – Chicago Board of Trade
CP – Certificates of Participation
FGIC – insured by Financial Guaranty Insurance Co.
FHA – insured by Federal Housing Administration
FSA – insured by Financial Security Assurance, Inc.
GO – General Obligation Bond
GTD – Guaranteed
MBIA – insured by Municipal Bond Investors Assurance
NR – Not Rated
TCRS – Temporary Custodian Receipts
XLCA – insured by XL Capital Assurance
Other Investments:
(1) Futures contracts outstanding at December 31, 2007:
Type
Contracts
Market
Value (000)
Expiration
Date
Unrealized
Appreciation
Short:
U.S. Treasury Bond Futures
(974
)
$
(113,349
)
3/19/08
$ 900,016
(2) Transactions in options written for the three months ended December 31, 2007:
Contracts
Premiums
Options outstanding, September 30, 2007
—
$
—
Options written
1,036
714,845
Options outstanding, December 31, 2007
1,036
$
714,845
Item 2. Controls and Procedures
(a)
The registrant’s President and Chief Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR 270.30a -3(c)), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b)
There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d)) under the Act (17 CFR 270.30a -3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits
(a)
Exhibit 99.302 Cert. – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: PIMCO California Municipal Income Fund III
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: February 29, 2008
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: February 29, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dated indicated.
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: February 29, 2008
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: February 29, 2008