PIMCO Municipal Income Fund III (the Fund) is a non-diversified, closed-end management investment company. The Fund invests substantially all of its assets in a portfolio of municipal bonds, the interest from which is exempt from federal income taxes. The Fund invest in interest rates of residual interest municipal bonds (RIBs) and residual interest tax exempt bonds (RITEs) (Inverse Floaters), whose interest rates bear an inverse relationship to the interest rate on another security or the value of an index. The Fund's investment manager is Allianz Global Investors Fund Management LLC, an indirect, wholly owned subsidiary of Allianz Global Investors of America L.P. (Allianz Global). The Fund's sub-advisor is Pacific Investment Management Company LLC.