California Municipal Income Found II seeks to provide current income exempt from federal and California income tax; the fund will invest at least 90% of its net assets in municipal bonds which pay interest that is exempt from regular federal and California income taxes (i.e., excluded from gross income for federal and California income tax purposes but not necessarily exempt from the federal alternative minimum tax). The fund may invest up to 20% of its total assets in investments the interest from which is subject to the federal alternative minimum tax. PIMCO is qualified to respond to recent changes in the municipal bond market, with an extensive network of credit research capabilities to address concerns about creditworthiness, which is critical to municipal bond investing.