PIMCO California Municipal Income Fund III (the Fund) is a diversified, closed-end management investment company. The Fund's primary investment objective is to seek current income exempt from federal and California income tax. The Fund invests in California municipal bonds. The Fund invests approximately 90% of its net assets (and over 80% of its net assets plus any borrowings for investment purposes) in municipal bonds that pay interest that is exempt from federal and California income tax. The Fund also seeks to be alternative minimum tax (AMT)-free by avoiding bonds generating interest that may subject individuals to the alternative minimum tax. The Fund invests in various sectors, such as tobacco, water and sewer, special tax, healthcare, transportation, education revenue, hospital revenue and housing revenue. Pacific Investment Management Company LLC (PIMCO) is the investment manager of the Fund.