FORM N-Q
     
 
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
     
Investment Company Act File Number:
  811-10377
 
    
Registrant Name:
  PIMCO Municipal Income Fund
 
    
Address of Principal Executive Offices:
  1345 Avenue of the Americas,
 
  New York, NY 10105
 
    
Name and Address of Agent for Service:
  Lawrence G. Altadonna
 
  1345 Avenue of the Americas,
 
  New York, NY 10105
 
    
Registrant’s telephone number, including area code:
  212-739-3371
 
    
Date of Fiscal Year End:
  April 30, 2009
 
    
Date of Reporting Period:
  July 31, 2008
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q 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 the 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. § 3507.
 
 

 

 

Item 1. Schedule of Investments
PIMCO Municipal Income Fund Schedule of Investments
July 31, 2008 (unaudited)
                         
Principal                  
Amount         Credit Rating        
(000)         (Moody’s/S&P)     Value*  
 
MUNICIPAL BONDS & NOTES—91.4%                
       
Alabama—2.7%
                
$ 2,500    
Birmingham Baptist Medical Centers Special Care Facs. Financing Auth.
Rev., 5.875%, 11/15/24, Ser. A
   Baa1/NR   $ 2,500,200  
  8,000    
Huntsville Health Care Auth. Rev.,
5.75%, 6/1/31, Ser. A, (Pre-refunded @ $101, 6/1/11) (c)
   A2/NR     8,684,720  
       
Huntsville-Redstone Village Special Care Facs. Financing Auth. Rev.,
                
  250    
5.50%, 1/1/28
   NR/NR     212,858  
  885    
5.50%, 1/1/43
   NR/NR     706,407  
  1,350    
Montgomery Medical Clinic Board,
Jackson Hospital & Clinic Rev., 5.25%, 3/1/31
   Baa2/BBB-     1,181,884  
  1,400    
Tuscaloosa Educational Building Auth. Rev.,
Stillman College, 5.00%, 6/1/26
   NR/BBB-     1,199,926  
       
 
              
       
 
             14,485,995  
       
 
              
       
 
                
       
Alaska—1.7%
                
  900    
Industrial Dev. & Export Auth.,
Boys & Girls Home Rev., 6.00%, 12/1/36
   NR/NR     778,806  
       
Northern Tobacco Securitization Corp. Rev.,
                
  2,400    
5.00%, 6/1/46, Ser. A
   Baa3/NR     1,714,008  
  6,000    
5.50%, 6/1/29, (Pre-refunded @ $100, 6/1/11) (c)
   Aaa/AAA     6,401,040  
       
 
              
       
 
             8,893,854  
       
 
              
       
 
                
       
Arizona—1.6%
                
  2,000    
Apache Cnty. Industrial Dev. Auth. Pollution Control Rev.,
Tucson Electric Power Co., 5.875%, 3/1/33
   Baa3/BB+     1,911,160  
  2,750    
Health Facs. Auth. Rev., Beatitudes Project, 5.20%, 10/1/37
   NR/NR     2,163,095  
  1,260    
Pima Cnty. Industrial Dev. Auth. Rev.,
Tuscon Day School, 5.00%, 6/1/37
   NR/BBB-     1,024,884  
  4,200    
Salt Verde Financial Corp. Rev., 5.00%, 12/1/37
   Aa3/AA-     3,515,316  
       
 
              
       
 
             8,614,455  
       
 
              
       
 
                
       
Arkansas—0.5%
                
  8,500    
Arkansas Dev. Finance Auth. Rev., zero coupon, 7/1/36 (AMBAC)
   Aaa/NR     1,859,885  
       
Little Rock Municipal Property Owners
                
       
Multipurpose Improvement Dist., Special Tax, Ser.A,
                
  385    
5.00%, 3/1/16
   NR/NR     370,886  
  500    
5.25%, 3/1/23
   NR/NR     458,875  
       
 
              
       
 
             2,689,646  
       
 
              
       
 
                
       
California—5.4%
                
       
Golden State Tobacco Securitization Corp. Rev., Ser. A-1,
               
  6,000    
5.00%, 6/1/33
   Baa3/BBB     4,681,020  
  10,000    
6.75%, 6/1/39, (Pre-refunded @ $100, 6/1/13) (c)
   Aaa/AAA     11,396,700  
       
State, GO,
                
  300    
5.00%, 6/1/37
   A1/A+     291,066  
  11,500    
5.00%, 11/1/37, Ser. 2670 (h)
   A1/A+     11,155,345  
  1,000    
Statewide Community Dev. Auth. Rev.,
Catholic Healthcare West, 5.50%, 7/1/31, Ser. E
   A2/A     979,190  
       
 
              
       
 
             28,503,321  
       
 
              
       
 
                
       
Colorado—2.8%
                
  500    
Confluence Metropolitan Dist. Rev., 5.45%, 12/1/34
   NR/NR     422,045  
       
Denver Health & Hospital Auth. Healthcare Rev., Ser. A (c),
                
  2,000    
5.375%, 12/1/28, (Pre-refunded @ $101, 12/1/08)
   NR/BBB     2,043,540  
  1,000    
6.00%, 12/1/23, (Pre-refunded @ $100, 12/1/11)
   NR/BBB     1,100,460  

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2008 (unaudited)
                         
Principal                  
Amount         Credit Rating        
(000)         (Moody’s/S&P)     Value*  
 
       
Colorado (continued)
                
$ 12,400    
Health Facs. Auth. Rev., Liberty Heights, zero coupon, 7/15/24
   Aaa/AAA   $ 5,581,116  
  4,940    
Northwest Parkway Public Highway Auth. Rev.,
7.125%, 6/15/41, Ser. D, (Pre-refunded @ $102, 6/15/11) (c)
   NR/NR     5,583,731  
       
 
              
       
 
             14,730,892  
       
 
              
       
 
                
       
Connecticut—0.2%
                
  1,000    
State Dev. Auth. Pollution Control Rev., 5.85%, 9/1/28
   Baa1/BBB-     1,001,730  
       
 
              
       
 
                
       
District of Columbia—0.9%
                
  4,600    
Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24
   Baa3/BBB     4,527,044  
       
 
              
       
 
                
       
Florida—2.3%
                
  1,000    
Beacon Lakes Community Dev. Dist., Special Assessment,
6.00%, 5/1/38, Ser. A
   NR/NR     836,620  
  940    
Dev. Finance Corp. Rev., Learning Gate Community School,
6.00%, 2/15/37
   NR/BBB-     862,309  
  9,000    
Highlands Cnty. Health Facs. Auth. Rev., Adventist/Sunbelt Health System,
6.00%, 11/15/31, Ser. A, (Pre-refunded @ $101, 11/15/11) (c)
   A1/NR     9,989,640  
  500    
Lee Cnty. Industrial Dev. Auth. Rev., 5.375%, 6/15/37, Ser. A
   NR/BB     400,440  
       
 
              
       
 
             12,089,009  
       
 
              
       
 
                
       
Georgia—0.3%
                
  2,300    
Medical Center Hospital Auth. Rev., 5.25%, 7/1/37
   NR/NR     1,836,872  
       
 
              
       
 
                
       
Illinois—11.3%
                
  10,115    
Chicago Board of Education School Reform,
GO, zero coupon, 12/1/31, Ser. A (FGIC)
   A1/AA-     2,802,361  
       
Chicago, GO, Ser. A (FGIC),
                
  2,935    
5.375%, 1/1/34
   Aaa/AA-     2,959,126  
  4,145    
5.375%, 1/1/34, (Pre-refunded @ $101, 1/1/09) (c)
   Aaa/AA-     4,248,749  
       
Educational Facs. Auth. Rev., Univ. of Chicago,
                
  190    
5.25%, 7/1/41
   Aa1/AA     192,732  
  4,810    
5.25%, 7/1/41, (Pre-refunded @ $101, 7/1/11) (c)
   Aa1/AA     5,186,596  
       
Finance Auth. Rev.,
                
       
Adventist Health System, (Pre-refunded @ $101, 11/15/09) (c),
                
  5,000    
5.50%, 11/15/29
   A1/NR     5,272,200  
  1,260    
5.65%, 11/15/24
   A1/NR     1,330,963  
  1,000    
Fairview, 6.25%, 8/15/35, Ser. A
   NR/NR     917,410  
  3,800    
Monarch Landing, Inc., 7.00%, 12/1/37, Ser. A
   NR/NR     3,689,154  
       
Health Fac. Auth. Rev.,
                
  3,000    
Decatur Memorial Hospital, 5.75%, 10/1/24
   A2/A     3,062,070  
  5,425    
Silver Cross Hospital, 5.50%, 8/15/25,
(Pre-refunded @ $101, 8/15/09) (c)
   NR/A     5,692,019  
       
Hillside, Tax Allocation, Mannheim Redev. Project,
                
  1,770    
6.55%, 1/1/20
   NR/NR     1,743,379  
  1,140    
7.00%, 1/1/28
   NR/NR     1,113,928  
       
Lake Cnty. Community High School Dist., GO, Ser. B (FGIC),
                
  5,000    
zero coupon, 2/1/19
   Baa3/AA-     3,018,450  
  5,000    
zero coupon, 2/1/20
   Baa3/AA-     2,831,850  
  5,690    
zero coupon, 2/1/22
   Baa3/AA-     2,835,725  
  7,345    
Regional Transportation Auth. Rev., 5.50%, 6/1/23, Ser. B (FGIC)
   Aa2/AA+     8,007,813  

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2008 (unaudited)
                         
Principal                  
Amount         Credit Rating        
(000)         (Moody’s/S&P)     Value*  
 
       
Illinois (continued)
                
       
Univ. Rev. (FGIC),
                
$ 1,495    
5.25%, 4/1/32
   Aa3/AA-   $ 1,503,716  
  3,505    
5.25%, 4/1/32, (Pre-refunded @ $100, 4/1/11) (c)
   Aa3/AA-     3,735,208  
       
 
              
       
 
             60,143,449  
       
 
              
       
 
                
       
Indiana—0.7%
                
  500    
Anderson Rev., 5.00%, 10/1/32
   NR/NR     435,460  
  4,000    
Health & Educational Facs. Financing Auth. Rev.,
Community Foundation of Northwest Indiana, 5.50%, 3/1/37
   NR/BBB-     3,441,920  
       
 
              
       
 
             3,877,380  
       
 
              
       
 
                
       
Iowa—1.9%
                
  4,890    
Finance Auth. Rev.,
Deerfield Retirement Community, Inc., 5.50%, 11/15/37
   NR/NR     3,498,159  
       
Edgewater LLC,
                
  3,500    
6.75%, 11/15/37
   NR/NR     3,320,520  
  1,500    
6.75%, 11/15/42
   NR/NR     1,410,720  
  2,000    
Finance Auth. Rev., Wedum Walnut Ridge LLC, 5.625%, 12/1/45, Ser. A
   NR/NR     1,632,600  
       
 
              
       
 
             9,861,999  
       
 
              
       
 
                
       
Kansas—4.1%
                
  500    
Lenexa Rev., 5.50%, 5/15/39
   NR/BBB-     433,645  
  1,000    
Lenexa, City Center East Tax Allocation, 6.00%, 4/1/27
   NR/NR     936,060  
  650    
Manhattan Rev., 5.125%, 5/15/42
   NR/NR     509,360  
       
Wichita Hospital Rev.,
                
  5,000    
5.625%, 11/15/31, Ser. III
   NR/A+     5,015,500  
  14,370    
6.25%, 11/15/24, Ser. XI
   NR/A+     14,775,521  
       
 
              
       
 
             21,670,086  
       
 
              
       
 
                
       
Kentucky—0.2%
                
  860    
Economic Dev. Finance Auth. Rev.,
St. Luke’s Hospital, 6.00%, 10/1/19, Ser. B
   A3/A     865,100  
       
 
              
       
 
                
       
Louisiana—5.4%
                
  4,300    
Local Gov’t Environmental Facs. & Community Dev. Auth. Rev.,
6.55%, 9/1/25 (ACA)
   NR/NR     4,063,758  
  27,895    
Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B
   Baa3/BBB     24,420,678  
       
 
              
       
 
             28,484,436  
       
 
              
       
 
                
       
Maryland—0.2%
                
  1,150    
Baltimore Water Project Rev., 5.125%, 7/1/42, Ser. A (FGIC)
   A2/A+     1,127,288  
       
 
              
       
 
                
       
Massachusetts—0.1%
                
  550    
Dev. Finance Agcy. Rev., Linden Ponds, 5.75%, 11/15/35, Ser. A
   NR/NR     479,325  
       
 
              
       
 
                
       
Michigan—2.3%
                
  1,000    
Detroit, GO, 5.375%, 4/1/17, Ser. A-1 (MBIA)
   Aaa/AAA     1,047,280  
  775    
East Lansing Economic Corp., Burcham Hills Rev., 5.25%, 7/1/37
   NR/NR     635,570  
  4,550    
Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A
   NR/NR     3,304,210  
  775    
Public Educational Facs. Auth. Rev., 5.00%, 9/1/22
   NR/BBB-     708,900  
  50    
Royal Oak Hospital Finance Auth. Rev.,
William Beaumont Hospital, 5.25%, 11/15/35, Ser. M (MBIA)
   Aaa/AAA     50,354  
  460    
Star International Academy, CP, 6.125%, 3/1/37
   NR/BB+     408,977  

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2008 (unaudited)
                         
Principal                  
Amount         Credit Rating        
(000)         (Moody’s/S&P)     Value*  
 
       
Michigan (continued)
                
$ 4,000    
State Hospital Finance Auth. Rev.,
Detroit Medical Center, 6.25%, 8/15/13
   Ba3/BB-   $ 4,012,840  
  2,000    
Strategic Fund Ltd. Obligation Rev.,
Detroit Edison Pollution Control Co., 5.45%, 9/1/29
   A3/A-     1,882,320  
       
 
              
       
 
             12,050,451  
       
 
              
       
 
                
       
Minnesota—0.4%
                
  95    
Agricultural & Economic Dev. Board Rev.,
Health Care System, 6.375%, 11/15/29
   A2/A     98,350  
       
North Oaks Presbyterian Homes Rev.,
                
  1,070    
6.00%, 10/1/33
   NR/NR     1,024,450  
  620    
6.125%, 10/1/39
   NR/NR     597,035  
  100    
Rochester Healthcare Housing Rev., 5.30%, 4/1/37, Ser. A
   NR/NR     84,482  
  500    
Washington Cnty. Housing & Redev. Auth. Rev., 5.625%, 6/1/37, Ser. A
   NR/NR     448,050  
       
 
              
       
 
             2,252,367  
       
 
              
       
 
                
       
Missouri—0.3%
                
  750    
Branson Regional Airport Transportation Dev. Dist. Rev.,
6.00%, 7/1/37, Ser. A
   NR/NR     642,720  
  1,000    
Joplin Industrial Dev. Auth. Rev., 5.75%, 5/15/26, Ser. F
   NR/NR     938,520  
       
 
              
       
 
             1,581,240  
       
 
              
       
 
                
       
Nevada—2.3%
                
  12,185    
Washoe Cnty., GO, 5.00%, 1/1/35 (MBIA)(h)
   NR/AAA     12,191,945  
       
 
              
       
 
                
       
New Hampshire—0.6%
                
  3,000    
Business Finance Auth. Pollution Control Rev.,
Conn. Light & Power Co., 5.85%, 12/1/22
   Baa1/BBB-     3,034,950  
       
 
              
       
 
                
       
New Jersey—4.9%
                
       
Economic Dev. Auth. Rev.,
                
       
Arbor Glen,
                
  2,510    
5.875%, 5/15/16
   NR/NR     2,535,627  
  450    
5.875%, 5/15/16, Ser. A, (Pre-refunded @ $102, 5/15/09) (c)
   NR/NR     473,616  
  16,550    
Kapkowski Road Landfill, Special Assessment, 5.75%, 4/1/31
   Baa3/NR     15,672,519  
  1,000    
Health Care Facs. Financing Auth. Rev.,
Trinitas Hospital, 5.25%, 7/1/30, Ser. A
   Baa3/BBB-     833,610  
  9,100    
Tobacco Settlement Financing Corp. Rev., 5.00%, 6/1/41, Ser. 1A (h)
   Baa3/BBB     6,459,089  
       
 
              
       
 
             25,974,461  
       
 
              
       
 
                
       
New Mexico—0.5%
                
  2,500    
Farmington Pollution Control Rev., 5.80%, 4/1/22
   Baa3/BB+     2,451,325  
       
 
              
       
 
                
       
New York—1.5%
                
  4,200    
Nassau Cnty. Industrial Dev. Agcy. Rev.,
Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A
   NR/NR     4,138,554  
  1,120    
New York City Municipal Water Finance Auth.,
5.00%, 6/15/37, Ser. D (h)
   Aa2/AA+     1,126,395  
  2,875    
Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A
   Baa3/BBB-     2,866,979  
       
 
              
       
 
             8,131,928  
       
 
              

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2008 (unaudited)
                         
Principal                  
Amount         Credit Rating        
(000)         (Moody’s/S&P)     Value*  
 
       
North Carolina—0.8%
                
       
Capital Facs. Finance Agcy., Duke Univ. Rev., Ser. A,
                
$ 570    
5.125%, 10/1/41
   Aa1/AA+   $ 574,497  
  2,430    
5.125%, 10/1/41, (Pre-refunded @ $100, 10/1/11) (c)
   Aaa/AAA     2,610,063  
  1,500    
Medical Care Commission Rev., Village at Brookwood, 5.25%, 1/1/32
   NR/NR     1,221,960  
       
 
              
       
 
             4,406,520  
       
 
              
       
 
                
       
North Dakota—1.0%
                
  5,400    
Stark Cnty. Healthcare Rev., Benedictine Living Communities,
6.75%, 1/1/33
   NR/NR     5,092,578  
       
 
              
       
 
                
       
Ohio—2.7%
                
  11,000    
Buckeye Tobacco Settlement Financing Auth. Rev.,
5.875%, 6/1/47, Ser. A-2
   Baa3/BBB     8,887,010  
       
Lorain Cnty. Hospital Rev., Catholic Healthcare,
                
  2,500    
5.625%, 10/1/17
   A1/AA-     2,604,950  
  2,565    
5.75%, 10/1/18
   A1/AA-     2,685,093  
       
 
              
       
 
             14,177,053  
       
 
              
       
 
                
       
Pennsylvania—5.2%
                
       
Allegheny Cnty. Hospital Dev. Auth. Rev.,
                
  8,600    
5.375%, 11/15/40, Ser. A
   Ba2/BB     6,693,982  
  5,780    
9.25%, 11/15/30, Ser. B, (Pre-refunded @ $102, 11/15/10) (c)
   Ba3/AAA     6,750,289  
  1,000    
Allegheny Cnty. Industrial Dev. Auth. Rev., 5.60%, 9/1/30
   Baa1/BBB+     945,530  
  500    
Cumberland Cnty. Auth., Retirement Community Rev.,
Messiah Village, 5.625%, 7/1/28, Ser. A
   NR/BBB-     463,045  
  2,575    
Delaware Cnty. Auth. College Rev., Neumann College, 5.80%, 10/1/17
   NR/BBB     2,664,610  
  2,000    
Harrisburg Auth. Rev., 6.00%, 9/1/36
   NR/NR     1,907,460  
  6,200    
Higher Educational Facs. Auth. Rev., Ser. A,
6.00%, 1/15/31
   Aa3/AA-     6,480,178  
  1,000    
LaSalle Univ., 5.00%, 5/1/37
   NR/BBB     889,190  
       
Lancaster Cnty. Hospital Auth. Rev., Ser. A,
                
  750    
6.25%, 7/1/26
   NR/NR     735,705  
  85    
6.375%, 7/1/30
   NR/NR     82,507  
       
 
              
       
 
             27,612,496  
       
 
              
       
 
                
       
Puerto Rico—0.7%
                
  135    
Commonwealth of Puerto Rico, GO, 5.00%, 7/1/35
   Baa3/BBB-     123,972  
       
Sales Tax Financing Corp. Rev., Ser. A,
                
  32,550    
zero coupon, 8/1/54 (AMBAC)
   Aaa/AAA     2,225,118  
  29,200    
zero coupon, 8/1/56
   A1/A+     1,625,564  
       
 
              
       
 
             3,974,654  
       
 
              
       
 
                
       
Rhode Island—4.0%
                
  23,800    
Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A
   Baa3/BBB     21,481,880  
       
 
              
       
 
                
       
South Carolina—5.0%
                
       
Greenwood Cnty. Hospital Rev., Self Memorial Hospital,
                
  3,500    
5.50%, 10/1/21
   A2/A     3,561,495  
  2,000    
5.50%, 10/1/26
   A2/A     2,013,640  
       
Jobs Economic Dev. Auth. Rev.,
                
  3,000    
Georgetown Memorial Hospital, 5.375%, 2/1/30 (Radian)
   NR/AA     2,923,530  

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2008 (unaudited)
                         
Principal                  
Amount         Credit Rating        
(000)         (Moody’s/S&P)     Value*  
 
       
South Carolina (continued)
                
$ 450    
Lutheran Homes, 5.50%, 5/1/28
   NR/NR   $ 391,743  
  15,600    
Tobacco Settlement Rev. Management Auth. Rev.,
6.375%, 5/15/30, Ser. B
   Baa3/BBB     17,378,088  
       
 
              
       
 
             26,268,496  
       
 
              
       
 
                
       
Tennessee—0.7%
                
  940    
Memphis Health Educational & Housing Fac. Rev.,
Wesley Housing Corp. Project, 6.95%, 1/1/20 (a)(b)
   NR/NR     470,000  
  3,500    
Sumner Cnty. Health Educational & Housing Facs. Board, 5.50%, 11/1/37
   NR/NR     3,153,395  
       
 
              
       
 
             3,623,395  
       
 
              
       
 
                
       
Texas—8.7%
                
  1,750    
Austin Convention Enterprises,
Inc. Rev., 5.75%, 1/1/32, Ser. B, (Pre-refunded @ $100, 1/1/11) (c)
   Aaa/NR     1,874,722  
  4,000    
Austin Rev., 5.25%, 5/15/31, Ser. A & B,
(Partially pre-refunded @ $100, 5/15/11) (FSA)(c)
   Aaa/AAA     4,061,560  
  2,935    
Bell Cnty. Health Fac. Dev. Corp. Rev.,
5.25%, 11/15/19, (Pre-refunded @ $101, 11/15/08) (c)
   NR/AAA     2,990,589  
  10,000    
Coppell Independent School Dist., GO, zero coupon, 8/15/29 (PSF-GTD)
   Aaa/AAA     3,208,400  
       
Duncanville Independent School Dist., GO, Ser. B (PSF-GTD),
                
  20    
5.25%, 2/15/32
   Aaa/AAA     20,321  
  3,660    
5.25%, 2/15/32, (Pre-refunded @ $100, 2/15/12) (c)
   Aaa/AAA     3,951,519  
       
Harris Cnty. Health Facs. Dev. Corp. Rev. (c),
                
  5,000    
Christus Health, 5.375%, 7/1/29, Ser. A,
(Pre-refunded @ $101, 7/1/09) (MBIA)
   Aaa/AAA     5,210,350  
  7,000    
Memorial Hermann Healthcare, 6.375%, 6/1/29,
(Pre-refunded @ $101, 6/1/11)
   A2/A     7,706,720  
  285    
Mansfield Independent School Dist., GO, 5.25%, 2/15/23 (PSF-GTD)
   Aaa/AAA     292,171  
  8,800    
North Texas Tollway Auth. Rev., 5.625%, 1/1/33, Ser. A
   A2/A-     8,793,664  
  400    
State Public Finance Auth. Rev., 5.875%, 12/1/36, Ser. A
   Baa3/BBB-     373,148  
  19,990    
State Turnpike Auth. Central Turnpike System Rev.,
zero coupon, 8/15/25, Ser. A (AMBAC)
   Aaa/AAA     7,676,960  
       
 
              
       
 
             46,160,124  
       
 
              
       
 
                
       
Utah—1.5%
                
  7,000    
Salt Lake Cnty. Hospital Rev.,
IHC Health Services, 5.125%, 2/15/33 (AMBAC)
   Aaa/AAA     7,338,660  
  600    
Utah Cnty. Lincoln Academy Charter School Rev.,
GO, 5.875%, 6/15/37, Ser. A (d)
   NR/NR     541,308  
       
 
              
       
 
             7,879,968  
       
 
              
       
 
                
       
Virginia—0.3%
                
  2,000    
Peninsula Town Center Community Dev. Auth. Rev., 6.45%, 9/1/37
   NR/NR     1,831,720  
       
 
              
       
 
                
       
Washington—2.0%
                
  2,000    
Health Care Facs. Auth. Rev., Virginia Mason Medical Center,
6.125%, 8/15/37, Ser. A
   Baa2/BBB     1,887,200  
  5,420    
King Cnty. School Dist. No. 1 Seattle,
GO, 5.25%, 12/1/21, Ser. A (MBIA)
   Aaa/AAA     5,587,641  
       
State Housing Finance Commission Rev., Skyline at First Hill, Ser. A,
                
  275    
5.25%, 1/1/17
   NR/NR     266,277  
  3,600    
5.625%, 1/1/38
   NR/NR     3,113,532  
       
 
              
       
 
             10,854,650  
       
 
              

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2008 (unaudited)
                         
Principal                  
Amount         Credit Rating        
(000)         (Moody’s/S&P)     Value*  
 
   
Wisconsin—3.7%
                
       
Badger Tobacco Asset Securitization Corp. Rev.,
                
$ 5,000    
5.75%, 6/1/12
   Baa3/BBB   $ 5,111,150  
  9,785    
6.00%, 6/1/17
   Baa3/BBB     9,813,768  
 
2,250		    
Health & Educational Facs. Auth. Rev.,
Divine Savior Heathcare Rev., 5.00%, 5/1/32
   NR/BBB     1,911,577  
  2,230    
Kenosha Hospital & Medical Center, 5.625%, 5/15/29
   NR/A     2,217,623  
  550    
Milwaukee Redev. Auth. Rev., 5.65%, 8/1/37, Ser. A
   NR/NR     477,186  
       
 
              
       
 
             19,531,304  
       
 
              
       
Total Municipal Bonds & Notes (cost—$493,055,247)
             484,445,386  
       
 
              
       
 
                
VARIABLE RATE NOTES (a)(d)(f)—3.7%                
       
Hawaii—0.3%
                
  1,388    
Honolulu City & Cnty. Wastewater System Rev.,
First Board Resolution, 0.13%, 7/1/23, Ser. 400 (FGIC)(e)
   A1/NR     1,456,154  
       
 
              
       
 
                
       
Illinois—0.6%
                
  2,902    
Cook Cnty., GO, 14.84%, 11/15/28, Ser. 458 (FGIC)(e)
   Aa2/NR     2,994,451  
       
 
              
       
 
                
       
New York—1.7%
                
       
New York City Municipal Water Finance Auth., Water & Sewer System Rev.,
                
  6,000    
9.799%, 6/15/39
   Aa2/NR     6,137,040  
  2,600    
13.743%, 6/15/26 (e)
   NR/AA+     2,733,770  
       
 
              
       
 
             8,870,810  
       
 
              
       
 
                
       
Texas—0.8%
                
  3,595    
Harris Cnty. Health Facs. Dev. Corp. Rev.,
18.52%, 7/1/29, Ser. 357 (MBIA)(e)
   Aaa/NR     4,351,208  
       
 
              
       
 
                
       
Washington—0.3%
                
  1,800    
Seattle, GO, 17.27%, 12/15/28, Ser. 348 (e)
   Aa1/NR     1,916,190  
       
 
              
       
Total Variable Rate Notes (cost—$17,832,107)
             19,588,813  
       
 
              
       
 
                
VARIABLE RATE DEMAND NOTES (f)(g)—4.9%                
       
Illinois—1.9%
                
  8,000    
Chicago Sales Tax Rev., 1.35%, 8/1/08
   VMIG1/A-1+     8,000,000  
  2,000    
Finance Auth. Rev., Elmhurst Memorial Healthcare,
1.35%, 8/1/08, Ser. B
   VMIG1/NR     2,000,000  
       
 
              
       
 
             10,000,000  
       
 
              
       
 
                
       
Massachusetts—0.7%
                
  4,000    
Health & Educational Facs. Auth. Rev., Museum, 1.30%, 8/1/08, Ser. A
   VMIG1/A-1+     4,000,000  
       
 
              
       
 
                
       
Missouri—0.8%
                
  4,100    
State Health & Educational Facilities Auth. Rev.,
2.07%, 8/1/08, Ser. C
   VMIG1/A-1+     4,100,000  
       
 
              
       
 
                
       
New York—1.5%
                
  8,000    
New York City, GO, 1.20%, 8/1/08, Ser. J
   VMIG1/A-1+     8,000,000  
       
 
              
       
Total Variable Rate Demand Notes (cost—$26,100,000)
             26,100,000  
       
 
              
       
 
                
       
Total Investments (cost—$536,987,354)—100.0%
           $ 530,134,199  
       
 
              

 

 

 
Notes to Schedule of Investments:
 
*   Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services.
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 a security are fair-valued, in good faith, pursuant to procedures established by the Board of Trustees or persons acting at their discretion pursuant to procedures established by the Board of Trustees. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, are valued at the last quoted bid price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. Prices obtained by independent pricing services use 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 securities maturing in 60 days or less are valued at amortized cost, if their original term to 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.

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 normally determined daily as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business.
 
(a)   Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $20,058,813, representing 3.78% of total investments.
 
(b)   Security in default.
 
(c)   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 (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate).
 
(d)   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 buyers. Unless otherwise indicated, these securities are not considered to be illiquid.
 
(e)   Inverse Floater—The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on July 31, 2008.
 
(f)   Variable Rate Notes—Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on July 31, 2008.
 
(g)   Maturity date shown is date of next put.
 
(h)   Residual Interest Bonds held in trust—Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
Glossary:
ACA—insured by American Capital Access Holding Ltd.
AMBAC—insured by American Municipal Bond Assurance Corp.
CP—Certificates of Participation
FGIC—insured by Financial Guaranty Insurance Co.
FSA—insured by Financial Security Assurance, Inc.
GO—General Obligation Bond
GTD—Guaranteed
MBIA—insured by Municipal Bond Investors Assurance
NR—Not Rated
PSF—Public School Fund
Radian—insured by Radian Guaranty, Inc.
Other Investments:
(1) Futures contracts outstanding at July 31, 2008:
                                 
            Market        
            Value   Expiration   Unrealized
                      Type   Contracts   (000)   Date   Depreciation
Short: U.S. Treasury Bond Futures
   (689)   $(79,580)   9/19/08   $(432,939)
 
                            
The Fund pledged $1,577,400, in cash as collateral for futures contracts.

 

 

(2) Transactions in options written for the three months ended July 31, 2008:
                 
    Contracts   Premiums
 
Options outstanding, April 30, 2008
     276     $ 225,464  
Options terminated in closing transactions
     (276 )     (225,464 )
     
Options outstanding, July 31, 2008
     —     $ —  
     
Fair Value Measurements–Effective May 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of the fair value measurements. The three levels of the fair value hierarchy under FAS 157 are described below:
  •   Level 1 — quoted prices in active markets for identical investments
 
  •  
Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
 
  •  
Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value
of investments)
The valuation techniques used by the Fund to measure fair value during the three months ended July 31, 2008 maximized the use of observable inputs and minimized the use of unobservable inputs.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of July 31, 2008 in valuing the Fund’s investments carried at value:
                 
    Investments in   Other Financial
Valuation Inputs   Securities   Instruments
 
Level 1 - Quoted Prices
   $ —     $ (432,939 )
Level 2 - Other Significant Observable Inputs
     530,134,199       —  
Level 3 - Significant Unobservable Inputs
     —       —  
     
Total
   $ 530,134,199     $ (432,939 )
 

 

 

Item 2. Controls and Procedures
(a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a -3(c))), 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 over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a -3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

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 Municipal Income Fund
By /s/ Brian S. Shlissel                                                       
President & Chief Executive Officer
Date: September 25, 2008
By /s/ Lawrence G. Altadonna                                            
Treasurer, Principal Financial & Accounting Officer
Date: September 25, 2008
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 dates indicated.
By /s/ Brian S. Shlissel                                                       
President & Chief Executive Officer
Date: September 25, 2008
By /s/ Lawrence G. Altadonna                                            
Treasurer, Principal Financial & Accounting Officer
Date September 25, 2008