================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM NQ CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21188 PIMCO California Municipal Income Fund III ------------------------------------------ (Exact name of registrant as specified in charter) 1345 Avenue of the Americas, New York, New York 10105 ----------------------------------------------------- (Address of principal executive offices) (Zip code) Lawrence G.Altadonna - 1345 Avenue of the Americas, New York, New York 10105 ---------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 212-739-3371 ------------ Date of fiscal year end: September 30, 2005 ------------------ Date of reporting period: June 30, 2005 ------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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 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. ss. 3507. ================================================================================ Item 1. Schedule of Investments PIMCO CALIFORNIA MUNICIPAL INCOME FUND III SCHEDULE OF INVESTMENTS June 30, 2005 (unaudited) <TABLE> ------------------------------------------------------------------------------------------------------------------------- Principal Amount Credit Rating (000) (Moody's/S&P) Value* ------------------------------------------------------------------------------------------------------------------------- CALIFORNIA MUNICIPAL BONDS & NOTES--85.0% $ 1,000 Alameda Public Financing Auth. Rev., 7.00%, 6/1/09 NR/NR $ 1,027,660 Association of Bay Area Governments Finance Auth. Rev., Odd Fellows Home, 3,200 5.20%, 11/15/22 NR/A 3,373,664 11,725 5.35%, 11/15/32 NR/A 12,547,274 Burbank Public Finance Auth. Rev., San Fernando Redev. Project, 1,135 5.50%, 12/1/28 NR/BBB 1,186,154 1,000 5.50%, 12/1/33 NR/BBB 1,042,970 2,000 Butte-Glenn Community College, GO, 5.00%, 8/1/26, Ser. A (MBIA) Aaa/NR 2,133,880 2,000 Capistrano Univ. School Dist., Community Fac. Dist., Special Tax, 6.00%, 9/1/32 NR/NR 2,105,060 1,000 Carlsbad Improvement Bond Act 1915, Special Assessment, 6.00%, 9/2/34 NR/NR 1,041,760 1,000 Cathedral City Public Financing Auth. Tax Allocation, 5.00%, 8/1/33, Ser. A (MBIA) Aaa/AAA 1,061,340 1,150 Ceres Redev. Agcy. Tax Allocation, 5.00%, 11/1/33 (MBIA) Aaa/AAA 1,239,677 Ceres Unified School Dist., GO, (FGIC) 2,825 zero coupon, 8/1/28 Aaa/AAA 792,356 2,940 zero coupon, 8/1/29 Aaa/AAA 775,278 1,600 Chula Vista Community Facs. Dist., Special Tax, 5.75%, 9/1/33 NR/NR 1,637,264 945 Chula Vista Improvement Board Act 1915, Special Assessment, 6.15%, 9/2/29 NR/NR 973,993 Chula Vista Special Tax, 675 6.15%, 9/1/26 NR/NR 714,818 1,620 6.20%, 9/1/33 NR/NR 1,716,471 8,000 Contra Costa Cnty. Public Financing Auth. Tax Allocation, 5.625%, 8/1/33, Ser. A NR/BBB 8,508,480 3,775 Cucamonga School Dist., CP, 5.20%, 6/1/27 NR/A- 3,888,703 Eastern Muni. Water Dist. Community Facs., Special Tax, 425 5.75%, 9/1/33 NR/NR 433,610 1,500 5.95%, 9/1/33 NR/NR 1,530,675 1,745 6.05%, 9/1/27 NR/NR 1,780,842 1,535 6.10%, 9/1/33 NR/NR 1,566,544 2,500 Educational Facs. Auth. Rev., Institute of Technology, 5.00%, 10/1/32, Ser. A Aaa/AAA 2,653,625 2,455 Educational Facs. Auth. Rev., Loyola-Marymount University, zero coupon, 10/1/34 (MBIA) Aaa/NR 603,046 5,000 Educational Facs. Auth. Rev., Pepperdine Univ., 5.00%, 9/1/33, Ser. A (FGIC) Aaa/AAA 5,266,750 500 Franklin-Mckinley School Dist., GO, 5.00%, 8/1/27, Ser. B (FSA) Aaa/AAA 533,115 5,000 Fremont Community Facs. Dist., Special Tax, 6.30%, 9/1/31 NR/NR 5,198,550 9,500 Fresno School Unified Dist., GO, 6.00%, 8/1/26, Ser. A (MBIA) Aaa/AAA 11,967,720 4,380 Glendale Electric Works Rev., 5.00%, 2/1/27 (MBIA) Aaa/AAA 4,654,670 </TABLE> PIMCO CALIFORNIA MUNICIPAL INCOME FUND III SCHEDULE OF INVESTMENTS June 30, 2005 (unaudited) <TABLE> ------------------------------------------------------------------------------------------------------------------------- Principal Amount Credit Rating (000) (Moody's/S&P) Value* ------------------------------------------------------------------------------------------------------------------------- Golden State Tobacco Securitization Corp., Tobacco Settlement Rev., Ser. 2003-A-1 $ 18,000 6.25%, 6/1/33 Baa3/BBB $ 19,636,920 38,490 6.75%, 6/1/39 Baa3/BBB 43,375,921 Health Facs. Finance Auth. Rev., (CA Mtg. Ins.) 2,000 5.125%, 1/1/22 NR/A 2,133,640 1,550 5.25%, 1/1/26 NR/A 1,647,464 Health Facs. Financing Auth. Rev., 5,000 5.00%, 10/1/18, Ser. B A3/AAA 5,333,800 5,000 5.00%, 3/1/33 NR/A 5,095,200 6,000 5.00%, 11/1/33, Ser. B (MBIA) Aaa/AAA 6,320,820 2,000 6.25%, 8/15/35, Ser. A A1/AA- 2,278,940 2,750 Infrastructure & Economic Dev. Bank Rev., Claremount Univ. Consortium, 5.25%, 10/1/33 Aa3/NR 2,960,375 Infrastructure & Economic Dev. Bank Rev., Kaiser Assistance Corp., 3,000 5.50%, 8/1/31, Ser. B A2/A+ 3,207,300 8,000 5.55%, 8/1/31, Ser. A NR/A+ 8,576,960 3,725 La Mesa-Spring Valley School Dist., GO, 5.00%, 8/1/26, Ser. A (FGIC) (Pre-refunded @ 100, 8/1/12) (a) Aaa/AAA 4,153,599 1,400 La Quinta Redev. Agcy. Tax Allocation, 5.10%, 9/1/31 (AMBAC) Aaa/AAA 1,483,664 20 Lancaster Financing Auth. Tax Allocation, 4.75%, 2/1/34 (MBIA) Aaa/AAA 20,592 825 Lee Lake Water Dist. Community Facs. Dist., Special Tax, 6.125%, 9/1/32 NR/NR 858,297 5,000 Long Beach Community College Dist., GO, 5.00%, 5/1/28, Ser. A (MBIA) Aaa/AAA 5,318,800 Los Angeles Unified School Dist., GO, (MBIA) 7,650 5.00%, 1/1/28, Ser. A Aaa/AAA 8,141,666 3,000 5.125%, 1/1/27, Ser. E Aaa/AAA 3,215,250 1,000 Lynwood Unified School Dist., GO, 5.00%, 8/1/27, Ser. A (FSA) Aaa/NR 1,066,230 5,280 Modesto Irrigation District, CP, 5.00%, 7/1/33, Ser. A (MBIA) Aaa/AAA 5,589,778 2,180 Murrieta Valley Unified School Dist., Special Tax, 6.40%, 9/1/24 NR/NR 2,288,106 5,000 Oakland, GO, 5.00%, 1/15/33, Ser. A (MBIA) Aaa/AAA 5,295,450 Oakland Redev. Agcy. Tax Allocation, 985 5.25%, 9/1/27 NR/A- 1,030,379 1,545 5.25%, 9/1/33 NR/A- 1,617,182 5,000 Orange Cnty. Community Facs. Dist., Special Tax, 5.55%, 8/15/33, Ser. A NR/NR 5,165,550 5,000 Orange Cnty. Unified School Dist., CP, 4.75%, 6/1/29 (MBIA) Aaa/AAA 5,318,300 1,000 Orange Cnty. Water Dist. Rev., CP, 5.00%, 8/15/28, Ser. B (MBIA) Aaa/AAA 1,062,220 2,000 Palm Desert Financing Auth., Tax Allocation, 5.00%, 4/1/25, Ser. A (MBIA) Aaa/AAA 2,121,880 1,410 Pomona Public Financing Auth. Rev, 5.00%, 12/1/37, Ser. AF (MBIA) Aaa/AAA 1,482,911 </TABLE> PIMCO CALIFORNIA MUNICIPAL INCOME FUND III SCHEDULE OF INVESTMENTS June 30, 2005 (unaudited) <TABLE> ------------------------------------------------------------------------------------------------------------------------- Principal Amount Credit Rating (000) (Moody's/S&P) Value* ------------------------------------------------------------------------------------------------------------------------- Poway Unified School Dist., Special Tax, $ 1,285 6.05%, 9/1/25 NR/NR $ 1,347,297 2,100 6.125%, 9/1/33 NR/NR 2,179,737 5,000 Riverside, CP, 5.00%, 9/1/33 (AMBAC) NR/AAA 5,280,550 500 Rocklin Unified School Dist. Community Facs., Special Tax, 5.00%, 9/1/29 (MBIA) Aaa/AAA 530,895 7,680 Rowland Unified School Dist., GO, 5.00%, 8/1/28, Ser. B (FSA) Aaa/AAA 8,183,194 1,470 Sacramento City Financing Auth. Rev., 6.25%, 9/1/23, Ser. A NR/NR 1,535,136 San Diego Unified School Dist., GO, (FSA) 480 5.00%, 7/1/26, Ser. C Aaa/AAA 532,718 11,000 5.00%, 7/1/26, Ser. E Aaa/AAA 12,148,950 8,425 5.00%, 7/1/28, Ser. E Aaa/AAA 9,360,765 1,500 San Diego Univ. Foundation Auxiliary Organization, Rev., 5.00%, 3/1/27, Ser. A (MBIA) Aaa/AAA 1,579,620 3,000 San Jose Libraries & Park Project, GO, 5.125%, 9/1/31 Aa1/AA+ 3,187,350 Santa Ana Unified School Dist., GO, (FGIC) 2,515 zero coupon, 8/1/26, Ser. B Aaa/AAA 945,036 3,520 zero coupon, 8/1/28, Ser. B Aaa/AAA 1,183,776 2,500 zero coupon, 8/1/30, Ser. B Aaa/AAA 755,650 3,780 zero coupon, 8/1/31, Ser. B Aaa/AAA 1,086,523 3,770 zero coupon, 8/1/32, Ser. B Aaa/AAA 1,030,341 1,250 Santa Clara Valley Transportation Auth., Sales Tax Rev, 5.00%, 6/1/26, Ser. A (MBIA) (Pre-refunded @ 100, 6/1/11) (a) Aaa/AAA 1,313,750 6,000 Santa Margarita Water Dist. Special Tax, 6.25%, 9/1/29 NR/NR 6,431,520 1,205 Sequoia Union High School Dist., GO, 5.00%, 7/1/23 (MBIA) Aaa/NR 1,292,266 4,475 Simi Valley Community Dev. Agcy., Tax Allocation, 5.00%, 9/1/25 (FGIC) Aaa/AAA 4,764,264 4,250 Sonoma Cnty. Jr. College Dist., GO, 5.00%, 8/1/27, Ser. A (FSA) Aaa/AAA 4,531,478 1,000 Sonoma Cnty. Water Agcy. Water Rev., 5.00%, 7/1/32, Ser. A (MBIA) Aaa/AAA 1,056,720 South Tahoe Joint Powers Financing Auth. Rev., 2,500 5.125%, 10/1/09 NR/NR 2,530,550 4,425 5.45%, 10/1/33 NR/BBB 4,642,976 12,200 Southern CA Public Power Auth., Power Project Rev., 5.00%, 7/1/33, Ser. A-2003-1 (AMBAC) Aaa/AAA 12,958,352 600 State Dept. of Water Resources Rev., 5.00%, 12/1/25, Ser. AC (MBIA) Aaa/AAA 646,128 4,095 State Dept. Veteran Affairs Home Purchase Rev., 5.35%, 12/1/27, Ser. A (AMBAC) Aaa/AAA 4,301,920 State Public Works Board Lease Rev., 5,385 5.00%, 10/1/19 A3/A- 5,630,771 4,600 5.00%, 4/1/28, Ser. A Aa2/A+ 4,853,092 1,105 5.375%, 4/1/28 Baa1/A- 1,192,958 3,505 Statewide Community Dev. Auth., CP, Internext Group, 5.375%, 4/1/30 NR/BBB- 3,536,510 Statewide Community Dev. Auth. Rev., 15,000 5.50%, 10/1/33, Ser. A A3/A 16,000,050 7,300 5.50%, 11/15/33 (CA St. Mtg.) NR/A 7,973,498 10,000 5.50%, 8/15/34, Ser. B A1/AA- 10,614,600 2,500 7.25%, 10/1/33 NR/NR 2,626,525 </TABLE> PIMCO CALIFORNIA MUNICIPAL INCOME FUND III SCHEDULE OF INVESTMENTS June 30, 2005 (unaudited) <TABLE> ------------------------------------------------------------------------------------------------------------------------- Principal Amount Credit Rating (000) (Moody's/S&P) Value* ------------------------------------------------------------------------------------------------------------------------- $ 1,795 Sunnyvale Financing Auth., Water & Wastewater Rev., 5.00%, 10/1/26 (AMBAC) Aaa/AAA $ 1,886,024 2,000 Tamalpais Union High School Dist., GO, 5.00%, 8/1/26 (MBIA) Aaa/AAA 2,125,840 2,000 Temecula Public Financing Auth., Special Tax, 6.00%, 9/1/33, Ser. A NR/NR 2,097,740 Tobacco Securitization Agcy. Rev., 8,100 5.875%, 6/1/35 Baa3/NR 8,484,912 7,000 6.00%, 6/1/42 Baa3/NR 7,349,860 2,000 6.125%, 6/1/43 NR/BBB 2,114,340 2,950 Torrance Medical Hospital Rev., 5.50%, 6/1/31 A1/A+ 3,112,516 4,000 Vernon Electric System Rev., 5.50%, 4/1/33 (Pre-refunded @ $100, 4/1/08) (a) Aaa/NR 4,297,680 1,000 West Basin Municipal Water Dist. Rev., CP, 5.00%, 8/1/30, Ser. A (MBIA) Aaa/AAA 1,060,570 2,500 William S. Hart Union High School Dist., Special Tax, 6.00%, 9/1/33 NR/NR 2,586,000 2,750 Woodland Finance Auth. Lease Rev., 5.00%, 3/1/32 (XLCA) Aaa/AAA 2,927,458 ----------------- Total California Municipal Bonds & Notes (cost--$390,734,488) 423,561,549 ----------------- OTHER MUNICIPAL BONDS & NOTES--3.7% NEW YORK--0.6% 2,500 New York State Dormitory Auth. Revs., 6.25%, 8/15/15 (FHA) Aa2/AAA 2,941,275 ----------------- PUERTO RICO--3.1% 3,500 Commonwealth of Puerto Rico, GO, 5.00%, 7/1/30 (c) Baa2/BBB 3,791,270 1,500 Electric Power Auth. Power Rev., 5.125%, 7/1/29, Ser. NN A3/A- 1,595,400 4,420 Public Building Auth. Rev., 5.00%, 7/1/36, Ser. I Baa2/BBB 4,651,962 Puerto Rico Public Buildings Authority Rev., Ser. D 290 5.25%, 7/1/36 Baa2/BBB 307,907 790 5.25%, 7/1/36 (Pre-refunded @ 100, 7/1/12) (a) Baa2/A- 884,366 3,800 Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A (c) Baa3/BBB 4,224,764 ----------------- 15,455,669 ----------------- Total Other Municipal Bonds & Notes (cost--$17,243,799) 18,396,944 ----------------- CALIFORNIA VARIABLE RATE NOTES (c)(d)(h)--8.5% 1,465 Infrastructure & Economic Dev. Bank Rev., 15.651%, 7/1/36 (AMBAC) NR/NR 1,946,736 Los Angeles Unified School Dist., GO, (MBIA) 1,745 14.578%, 1/1/23 NR/NR 2,066,412 2,090 17.361%, 1/1/11 NR/NR 3,450,924 2,020 Los Angeles Water & Power Rev., 14.729%, 7/1/30 NR/NR 2,585,802 950 Orange Cnty. Water Dist. Rev., CP, 16.957%, 2/15/11 (MBIA) NR/NR 1,258,636 710 Pajaro Valley Unified School Dist., GO, 19.945%, 8/1/11 NR/NR 1,319,052 1,170 Pasadena Water Rev., 16.215%, 6/1/33 (FGIC) NR/NR 1,545,160 </TABLE> PIMCO CALIFORNIA MUNICIPAL INCOME FUND III SCHEDULE OF INVESTMENTS June 30, 2005 (unaudited) <TABLE> ------------------------------------------------------------------------------------------------------------------------- Principal Amount Credit Rating (000) (Moody's/S&P) Value* ------------------------------------------------------------------------------------------------------------------------- $ 1,785 Sacramento Cnty. Water Financing Auth. Rev., 17.568%, 6/1/11 (AMBAC) NR/NR $ 2,413,855 1,150 Sacramento Muni Utility Dist., Electric Rev., 19.792%, 2/15/11 (MBIA) NR/NR 1,653,436 1,725 San Diego Community College Dist., GO, 19.900%, 5/1/11 (FSA) NR/NR 2,494,902 San Marcos Public Facs. Auth. Tax Allocation, (FGIC) 1,340 17.062%, 2/1/11 NR/NR 1,776,853 1,340 17.062%, 8/1/11 NR/NR 1,776,853 Southern CA Public Power Auth., Power Project Rev., (AMBAC) 1,350 7.49%, 7/1/33 NR/NR 1,517,832 2,065 17.319%, 7/1/11 NR/NR 2,830,186 4,520 State Economic Recovery, GO, 15.005%, 7/1/12, Ser. 956 (MBIA) NR/NR 6,988,824 University of CA Rev., (FSA) 1,375 12.43%, 5/15/35, Ser. 1119 (b) NR/AAA 1,512,019 3,095 19.491%, 9/1/33 NR/NR 4,365,869 340 19.491%, 9/1/34 NR/NR 481,678 ----------------- Total California Variable Rate Notes (cost--$34,212,132) 41,985,029 ----------------- CALIFORNIA VARIABLE RATE DEMAND NOTES (c)(e)--2.0% East Bay Muni. Utility Dist. Rev., (XLCA) 1,000 2.25%, 7/6/05, Ser. B-2 VMIG1/A-1+ 1,000,000 4,550 2.35%, 7/6/05, Ser. 2 VMIG1/A-1+ 4,550,000 800 Metropolitan Water Dist. Southern CA Waterworks Rev., 2.45%, 7/1/05, Ser. C-1 VMIG1/A-1+ 800,000 1,780 Newport Beach Memorial Presbyterian Hospital Rev., 2.24%, 7/1/05 VMIG1/A-1+ 1,780,000 300 Pasadena Parking Improvement Rev., CP, 2.27%, 7/7/05 (AMBAC) VMIG1/NR 300,000 1,625 State Dept. Water Resources Rev., 2.35%, 7/7/05, Ser. C-6 (AMBAC) VMIG1/A-1+ 1,625,000 ----------------- Total California Variable Rate Demand Notes (cost--$10,055,000) 10,055,000 ----------------- U.S. TREASURY BILLS (f)--1.3% 6,455 2.92%-3.05%, 9/1/05-9/15/05 (cost--$6,415,808) Aaa/AAA 6,415,747 ----------------- TOTAL INVESTMENTS BEFORE OPTIONS WRITTEN (cost--$458,661,227)--100.5% 500,414,269 ----------------- OPTIONS WRITTEN (g)--(0.5%) Contracts CALL OPTIONS--(0.4%) U.S. Treasury Bond Futures, Chicago Board of Trade, 243 strike price $112, expires 8/26/05 (451,828) 1,438 strike price $113, expires 8/26/05 (1,685,156) ----------------- (2,136,984) ----------------- PUT OPTIONS--(0.1%) U.S. Treasury Bond Futures, Chicago Board of Trade, 1,002 strike price $113, expires 8/26/05 (156,563) ----------------- Total Options Written (premiums received--$2,138,233) (2,293,547) ----------------- TOTAL INVESTMENTS NET OF OPTIONS WRITTEN (cost--$456,522,994)--100.0% $ 498,120,722 ----------------- </TABLE> OTHER INVESTMENTS: Futures contracts outstanding at June 30, 2005: Notional Amount Expiration Unrealized Type (000) Date Depreciation ------------------------------------------------------------------------ Short: U.S. Treasury 30 Year Bond $21,100 9/21/05 $154,953 --------- 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 the security, may be fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees. The Fund's investments are valued daily by an independent pricing service. The independent pricing service uses 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 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. Securities issued on a when-issued or delayed delivery basis are marked to market daily until settlement at the forward settlement value. 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 determined daily at the close of regular trading (normally 4:00 p.m. Eastern time) on the New York Stock Exchange. (a) 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. (b) When-Issued or delayed-delivery security. To be delivered/settled after a June 30, 2005. (c) Variable Rate Notes --- instruments whose interest rate changes on a specified date (such as a coupon date or interest payment date) and/or whose interest rate varies with changes in a designated base rate (such as the prime interest rate). The rate shown is the rate in effect at June 30, 2005. (d) Residual Interest/Tax Exempt Municipal Bonds - The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. (e) Maturity date shown is date of next put. (f) All or partial amount segregated as collateral for futures contracts, when-issued or delay-delivery securities. (g) Non-income producing. (h) 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 investors. GLOSSARY: AMBAC -- insured by American Municipal Bond Assurance Corp. CA Mtg. Ins. - California Mortgage Insurance CA St. Mtg. - California State Mortgage CP -- Certificates of Participation FGIC -- insured by Financial Guaranty Insurance Co. FHA - Federal Housing Administration FSA -- insured by Financial Security Assurance, Inc. GO - General Obligation Bond MBIA -- insured by Municipal Bond Investors Assurance XLCA -- insured by XL Capital Assurance NR -- Not Rated 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 Investment Company Act of 1940, as amended 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 or in factors that could affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. 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: August 25, 2005 By /s/ Lawrence G. Altadonna ------------------------------------------------ Treasurer, Principal Financial & Accounting Officer Date: August 25, 2005 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: August 25, 2005 By /s/ Lawrence G. Altadonna ------------------------------------------------ Treasurer, Principal Financial & Accounting Officer Date: August 25, 2005