UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
April 12, 2023
PIMCO New York Municipal Income Fund
(Exact Name of Registrant as Specified in Its
Charter)
Massachusetts
(State or Other Jurisdiction of
Incorporation)
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811-10381 |
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13-4174444 |
(Commission File
Number) |
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(IRS Employer Identification
No.) |
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1633 Broadway, New York,
NY |
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10019 |
(Address of Principal Executive
Offices) |
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(Zip Code) |
(844) 337-4626
(Registrant’s Telephone Number, Including Area
Code)
Not Applicable
(Former Name or Former Address, if Changed Since
Last Report)
Check the appropriate box below if the Form
8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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☐ |
Pre-commencement communications
pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
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☐ |
Pre-commencement communications
pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to
Section 12(b) of the Act:
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which
registered |
Common shares |
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PNF |
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New York Stock Exchange |
Indicate by check mark whether the registrant is an
emerging growth company as defined in Rule 405 of the Securities
Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this
chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the
Exchange Act. ☐
Item 8.01 Other Events.
Investment Guideline Change
Effective as of the date hereof, the PIMCO New York
Municipal Income Fund (the “Fund”) is permitted to, as a principal
investment strategy, invest in and/or originate loans, including,
without limitation, to, on behalf of, authorized by, sponsored by,
and/or in connection with a project for which authority and
responsibility lies with one or more U.S. states or territories,
cities in a U.S. state or territory, or political subdivisions,
agencies, authorities or instrumentalities of such states,
territories or cities, which may be in the form of whole loans,
assignments, participations, secured and unsecured notes, senior
and second lien loans, mezzanine loans, bridge loans or similar
investments, including to borrowers that are unrated or have credit
ratings that are determined by one or more nationally recognized
statistical rating organizations (“NRSROs”) and/or Pacific
Investment Management Company LLC (“PIMCO”) to be below investment
grade. This may include loans to public or private firms or
individuals, such as in connection with housing development
projects. The loans the Fund invests in or originates may vary in
maturity and/or duration. The Fund is not limited in the amount,
size or type of loans it may invest in and/or originate, including
with respect to a single borrower or with respect to borrowers that
are determined to be below investment grade, other than pursuant to
any applicable law. The Fund’s investment in or origination of
loans may also be limited by the requirements the Fund intends to
observe under Subchapter M of the Internal Revenue Code of 1986, as
amended (the “Code”), in order to qualify as a regulated investment
company (“RIC”). The loans acquired by the Fund may be “Municipal
Bonds” (including of a particular state) for purposes of the Fund’s
investment policies or may be loans that produce income that is
subject to applicable regular income tax, subject to the Fund’s
investment limits.
The disclosure change will be reflected in the
Fund’s shareholder reports beginning with the Fund’s annual
shareholder report on Form N-CSR for the 12-month reporting period ended
December 31, 2023.
Principal Risk Factors
The following is an additional principal risk
factor in connection with the above-referenced investment guideline
changes:
Loan Origination Risk
The Fund may invest in and/or originate loans,
including, without limitation, to, on behalf of, authorized by,
sponsored by, and/or in connection with a project for which
authority and responsibility lies with one or more U.S. states or
territories, cities in a U.S. state or territory, or political
subdivisions, agencies, authorities or instrumentalities of such
states, territories or cities, which may be in the form of whole
loans, assignments, participations, secured and unsecured notes,
senior and second lien loans, mezzanine loans, bridge loans or
similar investments, including to borrowers that are unrated or
have credit ratings that are determined by one or more NRSROs and/
or PIMCO to be below investment grade. This may include loans to
public or private firms or individuals, such as in connection with
housing development projects. The loans the Fund invests in or
originates may vary in maturity and/or duration. The Fund is not
limited in the amount, size or type of loans it may invest in
and/or originate, including with respect to a single borrower or
with respect to borrowers that are determined to be below
investment grade, other than pursuant to any applicable law. The
Fund’s investment in or origination of loans may also be limited by
the requirements the Fund intends to observe under Subchapter M of
the Code, in order to qualify as a RIC. The Fund may subsequently
offer such investments for sale to third parties; provided, that
there is no assurance that the Fund will complete the sale of such
an investment. If a Fund is unable to sell, assign or successfully
close transactions for the loans that it originates, the Fund will
be forced to hold its interest in such loans for an indeterminate
period of time. This could result in the Fund’s investments having
high exposure to certain borrowers. The Fund will be responsible
for the expenses associated with originating a loan (whether or not
consummated). This may include significant legal and due diligence
expenses, which will be borne by the Fund and common
shareholders.
Bridge loans are generally made with the
expectation that the borrower will be able to obtain permanent
financing in the near future. Any delay in obtaining permanent
financing subjects the bridge loan investor to increased risk. A
borrower’s use of bridge loans also involves the risk that the
borrower may be unable to locate permanent financing to replace the
bridge loan, which may impair the borrower’s perceived
creditworthiness.
Loan origination and servicing companies are
routinely involved in legal proceedings concerning matters that
arise in the ordinary course of their business. In addition, a
number of participants in the loan origination and servicing
industry (including control persons of industry participants) have
been the subject of regulatory actions by state regulators,
including state attorneys general, and by the federal
government. Governmental investigations,
examinations or regulatory actions, or private lawsuits, including
purported class action lawsuits, may adversely affect such
companies’ financial results. To the extent the Fund engages in
origination and/or servicing directly, or has a financial interest
in, or is otherwise affiliated with, an origination or servicing
company, the Fund will be subject to enhanced risks of litigation,
regulatory actions and other proceedings. As a result, the Fund may
be required to pay legal fees, settlement costs, damages, penalties
or other charges, any or all of which could materially adversely
affect the Fund and its holdings.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
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PIMCO New York Municipal Income Fund
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By:
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/s/ Ryan G. Leshaw
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Name:
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Ryan G. Leshaw
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Title:
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Chief Legal Officer
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Date: April 12, 2023
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