UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-10377 PIMCO Municipal Income Fund (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: April 30, 2006 Date of reporting period: October 31, 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. Section 3507.
ITEM 1. Report to Shareholder
Contents
Letter to Shareholders | 1 |
Performance & Statistics | 2-4 |
Schedules of Investments | 5-20 |
Statements of Assets and Liabilities | 21 |
Statements of Operations | 22 |
Statements of Changes in Net Assets | 24-25 |
Notes to Financial Statements | 26-32 |
Financial Highlights | 33-35 |
Matters
Relating to the Trustees Consideration of the Investment Management & Portfolio Management Agreements |
36-37 |
December 22, 2005
Dear Shareholder:
We are pleased to provide you with the semi-annual report for PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund and PIMCO New York Municipal Income Fund ("PIMCO Municipal Income Funds" or the "Funds") for the six months ended October 31, 2005.
Please refer to the following pages for specific information for each of the PIMCO Municipal Income Funds. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds' transfer agent at (800) 331-1710. You can also visit our Web site at www.allianzinvestors.com.
Together with Allianz Global Investors Fund Management LLC, the Funds' investment manager and Pacific Investment Management Company LLC, the Funds' sub-adviser, we thank you for investing with us.
We remain dedicated to serving your investment needs.
Sincerely,
Robert
E. Connor Chairman |
Brian S.
Shlissel President & Chief Executive Officer |
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10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 1
Symbol:
PMF
Objective:
To provide current income exempt from federal income tax.
Primary Investments:
Municipal fixed-income securities, the interest from which is exempt from federal income tax.
Inception Date:
June 29, 2001
Total Net Assets(1):
$556.2 million
Portfolio Manager:
Mark McCray
Total Return(2): | Market Price | Net Asset Value (‘‘NAV’’) | ||||||||
Six Months | 6.83% | 1.71% | ||||||||
1 Year | 11.61% | 8.83% | ||||||||
3 Years | 8.40% | 7.89% | ||||||||
Commencement of Operations (6/29/01) to 10/31/05 | 7.16% | 7.40% | ||||||||
Common Share Market Price/NAV Performance:
Commencement of Operations (6/29/01) to 10/31/05
Market Price / NAV: | ||||||
Market Price | $15.14 | |||||
NAV | $14.61 | |||||
Premium to NAV | 3.63% | |||||
Market Price Yield(3) | 6.44% | |||||
Moody's
Ratings
(as a % of total
investments)
(1) | Inclusive of net assets attributable to Preferred Shares outstanding. |
(2) | Past Performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the beginning of the period and expressing the result as a percentage. The calculation assumes that all income dividends and capital gain distributions have been reinvested at prices obtained under the dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of more than one year represents the average annual total return. Total return for a period of less than one year is not annualized. |
An investment in the Fund involves risk, including the loss of principal. Total return, price, yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. A portion of the income generated by the Fund may be subject to federal, state and local taxes, and may at times be subject to the alternative minimum tax. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily. |
(3) | Market Price Yield is determined by dividing the annualized current monthly per share dividend to common shareholders by the market price per common share at October 31, 2005. |
2 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
Symbol:
PCQ
Objective:
To provide current income exempt from federal and California State income tax.
Primary Investments:
Municipal fixed-income securities, the interest from which is exempt from federal and California State income tax.
Inception Date:
June 29, 2001
Total Net Assets(1):
$408.9 million
Portfolio Manager:
Mark McCray
Total Return(2): | Market Price | Net Asset Value (‘‘NAV’’) | ||||||||
Six Months | 9.64% | 2.48% | ||||||||
1 Year | 14.66% | 8.11% | ||||||||
3 Years | 7.67% | 7.55% | ||||||||
Commencement of Operations (6/29/01) to 10/31/05 | 6.74% | 6.83% | ||||||||
Common Share Market Price/NAV Performance:
Commencement of Operations (6/29/01) to 10/31/05
Market Price / NAV: | ||||||
Market Price | $15.09 | |||||
NAV | $14.50 | |||||
Premium to NAV | 4.07% | |||||
Market Price Yield(3) | 6.12% | |||||
Moody's
Ratings
(as a % of total
investments)
(1) | Inclusive of net assets attributable to Preferred Shares outstanding. |
(2) | Past Performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the beginning of the period and expressing the result as a percentage. The calculation assumes that all income dividends and capital gain distributions have been reinvested at prices obtained under the dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of more than one year represents the average annual total return. Total return for a period of less than one year is not annualized. |
An investment in the Fund involves risk, including the loss of principal. Total return, price, yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. A portion of the income generated by the Fund may be subject to federal, state and local taxes, and may at times be subject to the alternative minimum tax. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily. |
(3) | Market Price Yield is determined by dividing the annualized current monthly per share dividend to common shareholders by the market price per common share at October 31, 2005. |
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 3
Symbol:
PNF
Objective:
To provide current income exempt from federal, New York State and New York City income tax.
Primary Investments:
Municipal fixed-income securities, the interest from which is exempt from federal, New York State and New York City income tax.
Inception Date:
June 29, 2001
Total Net Assets(1):
$164.3 million
Portfolio Manager:
Mark McCray
Total Return(2): | Market Price | Net Asset Value ("NAV") | ||||||||
Six months | 7.90% | 1.95% | ||||||||
1 Year | 11.79% | 7.22% | ||||||||
3 Years | 7.41% | 6.12% | ||||||||
Commencement of Operations (6/29/01) to 10/31/05 | 5.93% | 5.51% | ||||||||
Common Share Market Price / NAV Performance:
Commencement of Operations (6/29/01) to 10/31/05
Market Price / NAV: | ||||||
Market Price | $14.53 | |||||
NAV | $13.65 | |||||
Premium to NAV | 6.45% | |||||
Market Price Yield(3) | 6.19% | |||||
Moody's
Ratings
(as a % of total
investments)
(1) | Inclusive of net assets attributable to Preferred Shares outstanding. |
(2) | Past performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the beginning of the period and expressing the result as a percentage. The calculation assumes that all income dividends and capital gain distributions have been reinvested at prices obtained under the dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of more than one year represents the average annual total return. Total return for a period of less than one year is not annualized. |
An investment in the Fund involves risk, including the loss of principal. Total return, price, yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. A portion of the income generated by the Fund may be subject to federal, state and local taxes, and may at times be subject to the alternative minimum tax. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily. |
(3) | Market Price Yield is determined by dividing the annualized current monthly per share dividend to common shareholders by the market price per common share at October 31, 2005. |
4 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
Principal Amount (000) |
Credit Rating (Moody’s/S&P) |
Value | ||||||||||||
MUNICIPAL BONDS & NOTES–92.8% |
||||||||||||||
Alabama–3.6% |
||||||||||||||
$ 2,500 | Birmingham Baptist Medical Center Special Care Facs. Financing Auth. Rev., 5.875%, 11/15/24, Ser. A | Baa1/NR | $ 2,617,775 | |||||||||||
9,900 | Daphne Special Care Facs. Financing Auth. Rev., zero coupon, 8/15/28 (Pre-refunded @ $100, 8/15/08) (a) | Aaa/AAA | 8,784,864 | |||||||||||
8,000 | Huntsville Health Care Auth. Rev., 5.75 %, 6/1/31, Ser. A | A2/NR | 8,391,840 | |||||||||||
19,794,479 | ||||||||||||||
Alaska–1.1% |
||||||||||||||
6,000 | Northern Tobacco Securitization Corp. Rev., 5.50%, 6/1/29 | Baa3/BBB | 6,065,640 | |||||||||||
Arizona–1.0% |
||||||||||||||
2,000 | Apache Cnty. Industrial Dev. Auth., Pollution Control Rev., Tucson Electric Power Co., 5.875%, 3/1/33, Ser. B | Ba1/B+ | 2,000,560 | |||||||||||
3,500 | Salt River Project Agricultural Improvement & Power District Rev., 4.75%, 1/1/35, Ser. A | Aa2/AA | 3,472,455 | |||||||||||
5,473,015 | ||||||||||||||
California–3.8% |
||||||||||||||
10,000 | Golden State Tobacco Securitization Corp., Tobacco Settlement Rev., GO, 6.75%, 6/1/39, Ser. 2003-A-1 | Baa3/BBB | 11,362,000 | |||||||||||
10,000 | Riverside
Cnty. Public Financing Auth., Tax Allocation, 4.50%, 10/1/30, Ser. A (XLCA) |
Aaa/AAA | 9,496,700 | |||||||||||
20,858,700 | ||||||||||||||
Colorado–2.4% |
||||||||||||||
Denver Health & Hospital Auth. Healthcare Rev., Ser. A, | ||||||||||||||
2,000 | 5.375%, 12/1/28 | Baa3/BBB | 2,003,900 | |||||||||||
1,000 | 6.00%, 12/1/23 | Baa3/BBB | 1,062,030 | |||||||||||
12,400 | Health Facs. Auth. Retirement Facs. Rev., zero coupon, 7/15/24 | NR/AAA | 4,960,372 | |||||||||||
4,965 | Northwest
Parkway Public Highway Auth. Rev., 7.125%, 6/15/41, Ser. D |
Ba1/BB+ | 5,308,628 | |||||||||||
13,334,930 | ||||||||||||||
Connecticut–0.2% |
||||||||||||||
1,000 | State Dev. Auth. Pollution Control Rev., 5.85%, 9/1/28 | Baa1/BBB− | 1,070,150 | |||||||||||
District of Columbia–1.1% |
||||||||||||||
5,610 | Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24 | Baa3/BBB | 5,973,921 | |||||||||||
Florida–1.8% |
||||||||||||||
9,000 | Highlands
Cnty. Health Facs. Auth. Rev., Adventist Health System, 6.00%, 11/15/31, Ser. A |
A2/A+ | 9,705,780 | |||||||||||
Georgia–2.0% |
||||||||||||||
Municipal Electric Auth. Power Rev. (MBIA-IBC) | ||||||||||||||
9,700 | 5.50%, 1/1/20, Ser. Z | Aaa/AAA | 10,720,925 | |||||||||||
300 | 5.50%, 1/1/20, Ser. Z (Pre-refunded @ $100, 1/1/13) (a) | NR/AAA | 333,855 | |||||||||||
11,054,780 | ||||||||||||||
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 5
Principal Amount (000) |
Credit Rating (Moody’s/S&P) |
Value | ||||||||||||
Illinois–11.9% |
||||||||||||||
Chicago, GO, Ser. A (FGIC) | ||||||||||||||
$ 2,935 | 5.375%, 1/1/34 | Aaa/AAA | $ 3,059,209 | |||||||||||
6,145 | 5.375%, 1/1/34, (Pre-refunded @ $101, 1/1/09) (a) | Aaa/AAA | 6,585,658 | |||||||||||
10,115 | Chicago Board of Education, GO, zero coupon, 12/1/31, Ser. A (FGIC) | Aaa/AAA | 2,679,059 | |||||||||||
2,000 | Chicago Water Rev., 5.25%, 11/1/27 (Pre-refunded @ $102, 11/1/07) (FGIC) (a) | Aaa/AAA | 2,117,760 | |||||||||||
1,115 | Educational
Facs. Auth. Rev., Midwestern Univ., 5.50%, 5/15/18, Ser. B |
NR/A− | 1,152,977 | |||||||||||
Educational Facs. Auth. Rev., Univ. of Chicago, | ||||||||||||||
190 | 5.25%, 7/1/41 | Aa1/AA | 198,111 | |||||||||||
4,810 | 5.25%, 7/1/41 (Pre-refunded @ $101, 7/1/11) (a) | Aa1/AA | 5,247,300 | |||||||||||
Finance Auth. Rev., | ||||||||||||||
5,000 | 5.50%, 11/15/29 | A2/A+ | 5,151,450 | |||||||||||
1,260 | 5.65%, 11/15/24 | A2/A+ | 1,313,941 | |||||||||||
Health Facs. Auth. Rev., | ||||||||||||||
3,000 | Decatur Memorial Hospital, 5.75%, 10/1/24 | A2/A | 3,129,360 | |||||||||||
5,425 | Silver Cross Hospital, 5.50%, 8/15/25 | NR/A | 5,594,151 | |||||||||||
Lake Cnty. Community High School Dist., GO, Ser. B (FGIC) | ||||||||||||||
5,000 | zero coupon, 2/1/19 | Aaa/AAA | 2,712,950 | |||||||||||
5,000 | zero coupon, 2/1/20 | Aaa/AAA | 2,576,150 | |||||||||||
5,690 | zero coupon, 2/1/22 | Aaa/AAA | 2,637,372 | |||||||||||
7,345 | Regional Transportation Auth. Rev., 5.50%, 6/1/23, Ser. B (FGIC) | Aaa/AAA | 8,414,285 | |||||||||||
3,000 | State Sales Tax Rev., 5.125%, 6/15/20, Ser. 1 | Aa3/AAA | 3,155,820 | |||||||||||
5,000 | University Rev., 5.25%, 4/1/32, Ser. B (FGIC) | Aaa/AAA | 5,166,000 | |||||||||||
4,000 | Winnebago-Boone ETC Cntys., Rock Valley Community College, Dist. No. 511, GO, 5.30%, 10/1/18 (Pre-refunded @ $100, 10/1/10) (FGIC) (a) | Aaa/NR | 4,196,880 | |||||||||||
65,088,433 | ||||||||||||||
Indiana–1.8% |
||||||||||||||
6,500 | Carmel School Building Corp. Rev., 5.00%, 7/15/22 (MBIA) | Aaa/AAA | 6,719,960 | |||||||||||
1,225 | Richland-Bean Blossom School Building Corp. Rev., 5.00%, 1/15/22 (FGIC) | Aaa/AA− | 1,261,003 | |||||||||||
1,825 | Zionsville Community Schools Building Corp. Rev., 5.00%, 7/15/27, Ser. A (FSA) | NR/AAA | 1,885,809 | |||||||||||
9,866,772 | ||||||||||||||
Kansas–3.8% |
||||||||||||||
Wichita Hospital Rev., | ||||||||||||||
5,000 | 5.625%, 11/15/31, Ser. III | NR/A+ | 5,258,900 | |||||||||||
14,370 | 6.25%, 11/15/24, Ser. XI | NR/A+ | 15,518,307 | |||||||||||
20,777,207 | ||||||||||||||
Kentucky–0.8% |
||||||||||||||
3,680 | Economic Dev. Finance Auth. Hospital Facs. Rev., St. Luke's Hospital, 6.00%, 10/1/19 | A3/A | 4,106,438 | |||||||||||
6 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
Principal Amount (000) |
Credit Rating (Moody’s/S&P) |
Value | ||||||||||||
Louisiana–6.3% |
||||||||||||||
$4,905 | Local Gov't Environmental Facs., Community Dev. Auth. Rev., 6.55%, 9/1/25 (ACA) | NR/A | $5,304,316 | |||||||||||
27,895 | Tobacco
Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B |
Baa3/BBB | 29,114,290 | |||||||||||
34,418,606 | ||||||||||||||
Maryland–0.2% |
||||||||||||||
1,150 | Baltimore Water Project Rev., 5.125%, 7/1/42, Ser. A (FGIC) | Aaa/AAA | 1,187,559 | |||||||||||
Massachusetts–1.9% |
||||||||||||||
9,000 | Commonwealth of Massachusetts Rev., 5.50%, 1/1/34 (FGIC) | Aaa/AAA | 10,271,070 | |||||||||||
Michigan–4.4% |
||||||||||||||
Detroit, GO, Ser. A-1 (MBIA) | ||||||||||||||
1,000 | 5.375%, 4/1/15 | Aaa/AAA | 1,082,650 | |||||||||||
1,000 | 5.375%, 4/1/17 | Aaa/AAA | 1,075,520 | |||||||||||
5,650 | Forest Hills Public Schools, GO, 5.25%, 5/1/18 (Pre-refunded @ $100, 5/1/10) (a) | Aa2/NR | 6,082,225 | |||||||||||
3,000 | Mount Clemens Community School Dist., GO, 5.00%, 5/1/31 | Aa2/AA | 3,059,100 | |||||||||||
50 | Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital, | |||||||||||||
5.25%, 11/15/35, Ser. M (MBIA) | Aaa/AAA | 51,403 | ||||||||||||
4,000 | State
Hospital Finance Auth. Rev., Detroit Medical Center, 6.25%, 8/15/13 |
Ba3/BB− | 3,970,400 | |||||||||||
2,000 | State Strategic Fund Ltd. Obligation Rev., Detroit Edison Pollution Control Co., 5.45%, 9/1/29 | A3/BBB+ | 2,084,860 | |||||||||||
3,000 | Taylor Tax Increment Finance Auth., 5.375%, 5/1/17 (FSA) | Aaa/AAA | 3,212,340 | |||||||||||
6,255 | Wayne Charter Cnty. Airport Fac. Rev., 6.75%, 12/1/15 | NR/NR | 3,372,321 | |||||||||||
23,990,819 | ||||||||||||||
Minnesota–0.6% |
||||||||||||||
Agricultural & Economic Dev. Board Rev., Health Care System, | ||||||||||||||
95 | 6.375%, 11/15/29 | A2/A | 105,604 | |||||||||||
2,905 | 6.375%, 11/15/29 (Pre-refunded @ $101, 11/15/10) (a) | A2/A | 3,313,181 | |||||||||||
3,418,785 | ||||||||||||||
Missouri–0.5% |
||||||||||||||
2,500 | Interstate 470 & 350 Transportation Dev. Dist. Rev., 6.35%, 5/1/22 | NR/NR | 2,550,650 | |||||||||||
Nevada–1.4% |
||||||||||||||
3,000 | Clark Cnty. Rev., 5.25%, 7/1/34, Ser. B (Pre-refunded @ $100, 7/1/11) (FGIC) (a) | Aaa/AAA | 3,248,130 | |||||||||||
4,250 | Truckee
Meadows Water Auth. Rev., 5.25%, 7/1/34, Ser. A (FSA) |
Aaa/AAA | 4,407,463 | |||||||||||
7,655,593 | ||||||||||||||
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 7
Principal Amount (000) |
Credit Rating (Moody’s/S&P) |
Value | ||||||||||||
New Hampshire–0.6% |
||||||||||||||
$3,000 | State Business Finance Auth. Pollution Control Rev., Conn. Light & Power Co., 5.85%, 12/1/22 | Baa1/BBB− | $3,219,060 | |||||||||||
New Jersey–4.0% |
||||||||||||||
Camden Cnty., Improvement Auth. Rev., Cooper Health System, | ||||||||||||||
490 | 5.60%, 2/15/07 | Baa3/BBB | 493,631 | |||||||||||
875 | 6.00%, 2/15/27 | Baa3/BBB | 888,414 | |||||||||||
16,550 | Economic Dev. Auth., Kapkowski Landfill Project, 5.75%, 4/1/31 | Baa3/NR | 17,371,542 | |||||||||||
Economic Dev. Auth. Rev., Arbor Glen, | ||||||||||||||
2,510 | 5.875%, 5/15/16 | NR/NR | 2,541,199 | |||||||||||
490 | 5.875%, 5/15/16, Ser. A (Pre-refunded @ $102, 5/15/09) (a) | NR/NR | 539,269 | |||||||||||
21,834,055 | ||||||||||||||
New Mexico–0.5% |
||||||||||||||
2,500 | Farmington Pollution Control Rev., 5.80%, 4/1/22 | Baa2/BBB | 2,535,575 | |||||||||||
New York–1.3% |
||||||||||||||
New York City Municipal Water Finance Auth., Water & Sewer System Rev., | ||||||||||||||
1,120 | 5.00%, 6/15/37, Ser. D | Aa2/AA+ | 1,150,934 | |||||||||||
3,000 | 5.00%, 6/15/39, Ser. A | Aa2/AA+ | 3,067,290 | |||||||||||
2,875 | Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A | Ba2/B | 2,848,320 | |||||||||||
7,066,544 | ||||||||||||||
North Carolina–0.6% |
||||||||||||||
3,000 | Capital Facs. Finance Agcy. Rev., Duke University Project, 5.125%, 10/1/41, Ser. A | Aa1/AA+ | 3,089,970 | |||||||||||
Ohio–1.2% |
||||||||||||||
Lorain Cnty. Hospital Rev., Catholic Healthcare Partners, | ||||||||||||||
2,500 | 5.625%, 10/1/17 | Aa3/AA− | 2,689,275 | |||||||||||
2,565 | 5.75%, 10/1/18 | Aa3/AA− | 2,770,174 | |||||||||||
1,235 | State Turnpike Commission Rev., 5.50%, 2/15/15 | Aa3/AA | 1,329,058 | |||||||||||
6,788,507 | ||||||||||||||
Pennsylvania–4.2% |
||||||||||||||
Allegheny Cnty., | ||||||||||||||
5,780 | Hospital Dev. Auth. Rev., 9.25%, 11/15/30, Ser. B | B1/B | 6,851,092 | |||||||||||
1,000 | Industrial Dev. Auth. Rev., USX Corp., 5.60%, 9/1/30 | Baa1/BBB+ | 1,035,200 | |||||||||||
1,095 | Port Auth. Rev., 5.25%, 3/1/20 (FGIC) | Aaa/AAA | 1,161,313 | |||||||||||
2,575 | Delaware
Cnty. Auth. College Rev., Neumann College, 5.80%, 10/1/17 |
NR/BBB− | 2,697,956 | |||||||||||
4,610 | Philadelphia Hospitals & Higher Education Facs. Hospital Rev., Temple Univ. Hospital , 6.625%, 11/15/23, Ser. A | Baa2/BBB | 4,656,377 | |||||||||||
6,200 | State Higher Educational Facs. Auth. Rev., UPMC Health System, 6.00%, 1/15/31, Ser. A | Aa3/A+ | 6,756,884 | |||||||||||
23,158,822 | ||||||||||||||
8 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
Principal Amount (000) |
Credit Rating (Moody’s/S&P) |
Value | ||||||||||||
Puerto Rico–0.3% |
||||||||||||||
$1,600 | Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN | A3/A− | $1,653,616 | |||||||||||
Rhode Island–3.5% |
||||||||||||||
18,000 | Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A | Baa3/BBB | 19,071,360 | |||||||||||
South Carolina–4.8% |
||||||||||||||
Greenwood Cnty. Hospital Rev., Self Memorial Hospital, | ||||||||||||||
3,500 | 5.50%, 10/1/21 | A2/A | 3,626,455 | |||||||||||
2,000 | 5.50%, 10/1/26 | A2/A | 2,073,300 | |||||||||||
3,000 | Jobs Economic Dev. Auth. Hospital Facs. Rev., Georgetown Memorial Hospital, 5.375%, 2/1/30 (Radian) | NR/AA | 3,115,980 | |||||||||||
15,600 | Tobacco
Settlement Rev., Management Auth. Rev., 6.375%, 5/15/30, Ser. B |
Baa3/BBB | 17,539,392 | |||||||||||
26,355,127 | ||||||||||||||
Tennessee–1.6% |
||||||||||||||
9,320 | Memphis Health Educational & Housing Fac., Wesley Housing Corp. Project, 6.95%, 1/1/20 | NR/NR | 8,881,354 | |||||||||||
Texas–12.0% |
||||||||||||||
1,750 | Austin Convention Enterprises, Inc., 5.75%, 1/1/32, Ser. B | A3/NR | 1,809,728 | |||||||||||
4,000 | Austin Rev., 5.25%, 5/15/31, Ser. A & B (FSA) | Aaa/AAA | 4,135,560 | |||||||||||
2,935 | Bell
Cnty. Health Fac. Dev. Corp., Buckner Retirement Fac., 5.25%, 11/15/19 |
NR/A− | 2,977,675 | |||||||||||
10,000 | Coppell Independent School Dist., GO, zero coupon, 8/15/29 (PSF-GTD) | NR/AAA | 3,018,700 | |||||||||||
Corpus Christi Refinance & Improvement, GO (FSA), | ||||||||||||||
1,125 | 5.375%, 3/1/18 | AAA/AAA | 1,202,400 | |||||||||||
1,740 | 5.375%, 3/1/18 (Pre-refunded @ $100, 3/1/11) (a) | AAA/AAA | 1,890,179 | |||||||||||
3,680 | Duncanville Independent School Dist., GO, 5.25%, 2/15/32, Ser. B (PSF-GTD) | Aaa/AAA | 3,845,710 | |||||||||||
Harris Cnty. Health Facs. Dev. Corp. Rev., | ||||||||||||||
5,000 | Christus Health, 5.375%, 7/1/29, Ser. A (MBIA) | Aaa/AAA | 5,250,500 | |||||||||||
7,000 | Memorial
Hermann Healthcare, 6.375%, 6/1/29 (Pre-refunded @ $101, 6/1/11) (a) |
A2/A | 7,684,530 | |||||||||||
1,840 | Houston, CP, 6.25%, 12/15/12, Ser. J (AMBAC) | Aaa/AAA | 2,107,591 | |||||||||||
2,000 | Mansfield Independent School Dist., GO, 5.25%, 2/15/23 (PSF-GTD) | Aaa/AAA | 2,107,160 | |||||||||||
4,380 | Southlake
Park Dev. Corp. Rev., 5.60%, 8/15/31 (Pre-refunded @ $100, 2/15/11) (AMBAC) (a) |
Aaa/AAA | 4,639,865 | |||||||||||
4,530 | State, GO, 5.30%, 8/1/18, Ser. A | Aa1/AA | 4,816,115 | |||||||||||
19,990 | State Turnpike Auth. Rev., zero coupon, 8/15/25, Ser. A (AMBAC) | Aaa/AAA | 7,731,133 | |||||||||||
4,920 | University of Texas, 5.00%, 7/1/26, Ser. B | Aaa/AAA | 5,119,604 | |||||||||||
7,450 | Water Dev. Board Rev., 5.125%, 7/15/18 | Aaa/AAA | 7,596,840 | |||||||||||
65,933,290 | ||||||||||||||
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 9
Principal Amount (000) |
Credit Rating (Moody’s/S&P) |
Value | ||||||||||||
Utah–1.3% |
||||||||||||||
$7,000 | Salt Lake Cnty. Hospital Rev., IHC Health Services, 5.125%, 2/15/33 (AMBAC) | Aaa/AAA | $7,198,100 | |||||||||||
Washington–2.4% |
||||||||||||||
Cowlitz Cnty. School Dist. No. 458 Kelso, GO (FSA) | ||||||||||||||
910 | 5.625%, 12/1/14 | NR/NR | 1,005,577 | |||||||||||
985 | 5.625%, 12/1/14 (Pre-refunded @ $100, 12/01/11) (a) | NR/NR | 1,091,282 | |||||||||||
1,225 | 5.625%, 12/1/16 (Pre-refunded @ $100, 12/01/11) (a) | Aaa/NR | 1,357,178 | |||||||||||
3,415 | Kent, GO, 5.375%, 12/1/20 (MBIA) | NR/NR | 3,682,804 | |||||||||||
5,420 | King Cnty. School Dist. No. 1 Seattle, GO, 5.25%, 12/1/21, Ser. A (MBIA) | Aaa/AAA | 5,728,235 | |||||||||||
12,865,076 | ||||||||||||||
Wisconsin–3.9% |
||||||||||||||
Badger Tobacco Asset Securitization Corp., | ||||||||||||||
5,000 | 5.75%, 6/1/12 | Baa3/BBB | 5,296,801 | |||||||||||
9,785 | 6.00%, 6/1/17 | Baa3/BBB | 10,304,877 | |||||||||||
3,515 | State, GO, 5.00%, 5/1/22, Ser. A (FGIC) | Aaa/AAA | 3,665,266 | |||||||||||
2,230 | State Health & Educational Facs. Auth. Rev., Kenosha Hospital & Medical Center, 5.625%, 5/15/29 | NR/A | 2,280,420 | |||||||||||
21,547,364 | ||||||||||||||
Total Municipal Bonds & Notes (cost–$483,071,138) | 507,861,147 | |||||||||||||
VARIABLE RATE NOTES (b)(c)(d)–6.3% |
||||||||||||||
Hawaii–0.3% |
||||||||||||||
1,388 | City & Cnty. of Honolulu Rev., 13.12%, 7/1/23, Ser. 400 (FGIC) | Aaa/NR | 1,643,258 | |||||||||||
Illinois–1.1% |
||||||||||||||
2,902 | Cook Cnty., GO, 13.20%, 11/15/28, Ser. 458 (FGIC) | Aaa/NR | 3,238,726 | |||||||||||
2,765 | Educational Facs. Auth. Rev., 11.974%, 7/1/38 | NR/AA | 3,065,002 | |||||||||||
6,303,728 | ||||||||||||||
Massachusetts–0.5% |
||||||||||||||
2,000 | State Health & Educational Facs. Auth. Rev., 15.16%, 7/1/32 | NR/NR | 2,820,600 | |||||||||||
New York–1.3% |
||||||||||||||
6,500 | New
York City Municipal Water Finance Auth. Rev., 6.571%, 6/15/26 |
NR/AA+ | 6,923,020 | |||||||||||
Tennessee–0.5% |
||||||||||||||
2,000 | Memphis Electric System Rev., 13.20%, 12/1/11, Ser. 880 (MBIA) | Aaa/NR | 2,718,400 | |||||||||||
Texas–2.2% |
||||||||||||||
Harris Cnty. Health Facs. Dev. Corp. Rev., | ||||||||||||||
8,988 | 7.79%, 7/1/29, Ser. 357 (MBIA) | Aaa/NR | 9,888,047 | |||||||||||
1,720 | 13.104%, 2/15/26 | NR/AA− | 2,468,510 | |||||||||||
12,356,557 | ||||||||||||||
10 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
Principal Amount (000) |
Credit Rating (Moody’s/S&P) |
Value | ||||||||||||||||
Washington–0.4% |
||||||||||||||||||
$1,800 | Seattle, GO, 13.75%, 12/15/28, Ser. 348 | Aa1/NR | $1,979,820 | |||||||||||||||
Total Variable Rate Notes (cost–$29,056,552) | 34,745,383 | |||||||||||||||||
VARIABLE RATE DEMAND NOTES (d)(e)–0.6% |
||||||||||||||||||
Missouri–0.5% |
||||||||||||||||||
2,700 | State Health & Educational Facs. Auth. Rev., BJC Health Systems, 2.74%, 11/1/05, Ser. B | VMIG1/A-1+ | 2,700,000 | |||||||||||||||
Utah–0.1% |
||||||||||||||||||
300 | County of Weber, IHC Health Services Rev., 2.74%, 11/1/05, Ser. B | VMIG1/A-1+ | 300,000 | |||||||||||||||
Total Variable Rate Demand Notes (cost–$3,000,000) | 3,000,000 | |||||||||||||||||
U.S. TREASURY BILLS (f)–0.5% |
||||||||||||||||||
2,920 | 3.30%-3.58%, 12/1/05-12/15/05 (cost–$2,908,277) | 2,908,277 | ||||||||||||||||
Total Investments before options written (cost–$518,035,967)–100.2% |
548,514,807 | |||||||||||||||||
OPTIONS WRITTEN (g)–(0.2)% |
||||||||||||||||||
Contracts |
CALL OPTIONS–(0.0)% |
|||||||||||||||||
U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade, | ||||||||||||||||||
382 | strike price $112, expires 11/22/05 | (5,969) | ||||||||||||||||
512 | strike price $113, expires 11/22/05 | (8,000) | ||||||||||||||||
(13,969) | ||||||||||||||||||
PUT OPTIONS–(0.2)% |
||||||||||||||||||
U.S. Treasury Notes 5 yr. Futures, Chicago Board of Trade, | ||||||||||||||||||
676 | strike price $105.50, expires 11/22/05 | (126,750) | ||||||||||||||||
566 | strike price $106, expires 11/22/05 | (229,937) | ||||||||||||||||
U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade, | ||||||||||||||||||
397 | strike price $110, expires 11/22/05 | (651,328) | ||||||||||||||||
(1,008,015) | ||||||||||||||||||
Total Options Written (premiums received–$983,377) | (1,021,984) | |||||||||||||||||
Total Investments net of options written (cost–$517,052,590)–100.0% |
$547,492,823 | |||||||||||||||||
See accompanying Notes to Financial Statements | 10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 11
Principal Amount (000) |
Credit
Rating (Moody's/S&P) |
Value | ||||||||||||||||
CALIFORNIA MUNICIPAL BONDS & NOTES–87.8% |
||||||||||||||||||
ABAG Finance Auth. for Nonprofit Corps | ||||||||||||||||||
$1,000 | CP, 5.375%, 2/15/19 | NR/BBB | $ 1,044,970 | |||||||||||||||
1,000 | Rev., 5.375%, 11/15/25 (CA Mtg. Ins.) | NR/A | 1,048,410 | |||||||||||||||
1,385 | Alvord Unified School Dist., GO, 5.375%, 8/1/29, Ser. C (FSA) | Aaa/NR | 1,412,437 | |||||||||||||||
6,405 | Campbell Union High School Dist., GO, 5.50%, 8/1/30 (FSA) | Aaa/NR | 6,866,929 | |||||||||||||||
2,250 | Capistrano
Unified School Dist., Special Tax, 5.75%, 9/1/29 (Pre-refunded @ $102, 9/1/09) (a) |
NR/NR | 2,485,417 | |||||||||||||||
Carson, Improvement Board Act of 1915, Special Assessment, | ||||||||||||||||||
3,250 | 6.35%, 9/2/23 | NR/NR | 3,382,307 | |||||||||||||||
5,000 | 6.375%, 9/2/31 | NR/NR | 5,204,100 | |||||||||||||||
5,250 | Central JT Powers Health Financing Auth., CP, 5.75%, 2/1/31 | Baa2/BBB− | 5,348,595 | |||||||||||||||
4,140 | Charter Oak Unified School Dist., GO, 5.00%, 7/1/28, Ser. B (FSA) | Aaa/AAA | 4,275,337 | |||||||||||||||
Contra Costa Cnty. Public Financing Auth., Tax Allocation, | ||||||||||||||||||
2,150 | 5.125%, 8/1/19 | NR/BBB | 2,216,113 | |||||||||||||||
600 | 5.125%, 8/1/19 (Pre-refunded @ $102, 8/1/09) (a) | NR/BBB | 648,636 | |||||||||||||||
5,000 | 5.85%, 8/1/33 | NR/BBB | 5,227,250 | |||||||||||||||
2,750 | CSUCI Financing Auth. Rev., 5.00%, 9/1/31, Ser. A (MBIA) | Aaa/AAA | 2,819,630 | |||||||||||||||
3,635 | Cucamonga Cnty. Water Dist., CP, 5.125%, 9/1/35 (FGIC) | Aaa/AAA | 3,749,793 | |||||||||||||||
East Side Union High School District-Santa Clara County, GO, Ser E. (XLCA), | ||||||||||||||||||
1,985 | zero coupon, 8/1/21 | Aaa/AAA | 899,662 | |||||||||||||||
1,490 | zero coupon, 8/1/22 | Aaa/AAA | 638,018 | |||||||||||||||
El Monte, CP (AMBAC), | ||||||||||||||||||
10,790 | 4.75%, 6/1/30 | Aaa/AAA | 10,810,609 | |||||||||||||||
14,425 | 5.25%, 1/1/34 | Aaa/AAA | 15,032,004 | |||||||||||||||
Foothill/Eastern Corridor Agcy. Rev., Toll Road Rev., | ||||||||||||||||||
5,000 | zero coupon, 1/15/33 | Baa3/BBB− | 1,011,350 | |||||||||||||||
5,000 | zero coupon, 1/15/34 | Baa3/BBB− | 950,600 | |||||||||||||||
Fremont Community District, Special Tax, | ||||||||||||||||||
165 | 6.00%, 9/1/18 | NR/NR | 169,216 | |||||||||||||||
505 | 6.00%, 9/1/19 | NR/NR | 516,388 | |||||||||||||||
3,500 | 6.30%, 9/1/31 | NR/NR | 3,580,290 | |||||||||||||||
Golden State Tobacco Securitization Corp. Rev., Tobacco Settlement Rev., | ||||||||||||||||||
17,500 | 6.25%, 6/1/33, Ser. 2003-A-1 | Baa3/BBB | 19,211,675 | |||||||||||||||
10,155 | 6.75%, 6/1/39, Ser. 2003-A-1 | Baa3/BBB | 11,538,111 | |||||||||||||||
540 | 7.875%, 6/1/42, Ser. A-3 | Baa3/BBB | 659,783 | |||||||||||||||
Health Facs. Financing Auth. Rev., | ||||||||||||||||||
2,110 | 5.00%, 7/1/18 | A3/A− | 2,156,399 | |||||||||||||||
1,000 | 5.00%, 7/1/28, Ser. A | A3/A− | 1,000,760 | |||||||||||||||
5,315 | 5.125%, 7/1/18 | NR/BBB+ | 5,381,172 | |||||||||||||||
3,000 | 5.25%, 10/1/14, Ser. B | A3/AAA | 3,193,470 | |||||||||||||||
12 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
Principal Amount (000) |
Credit
Rating (Moody's/S&P) |
Value | ||||||||||||||||
$6,250 | Infrastructure
& Economic Dev. Bank Rev., Bay Area Toll Bridges, 5.00%, 7/1/36 (AMBAC) |
Aaa/AAA | $6,438,000 | |||||||||||||||
La Quinta Redevelopment Agcy., Tax Allocation (AMBAC), | ||||||||||||||||||
3,000 | 5.00%, 9/1/21 | Aaa/AAA | 3,119,940 | |||||||||||||||
10,000 | 5.10%, 9/1/31 | Aaa/AAA | 10,278,600 | |||||||||||||||
1,000 | 5.125%, 9/1/32 | Aaa/AAA | 1,035,470 | |||||||||||||||
1,515 | Lincoln
Public Financing Auth. Rev., Twelve Bridges Ltd., 6.125%, 9/2/27 |
NR/NR | 1,550,178 | |||||||||||||||
6,250 | Los
Angeles Cnty. Metropolitan Transportation Auth. Rev. 4.75%, 7/1/28, Ser. B (Pre-refunded @ $101, 7/1/09) (FSA)(a) |
Aaa/AAA | 6,635,312 | |||||||||||||||
Los Angeles Community Redevelopment Agcy., Tax Allocation, | ||||||||||||||||||
520 | 5.875%, 9/1/26 | NR/NR | 505,060 | |||||||||||||||
325 | 6.00%, 9/1/31 | NR/NR | 317,876 | |||||||||||||||
3,250 | Los Angeles Unified School Dist., GO, 5.125%, 7/1/21, Ser. E (MBIA) | Aaa/AAA | 3,440,352 | |||||||||||||||
12,000 | Los Angeles Water & Power Rev., 5.25%, 7/1/21, Ser. A-A-1 (FSA) | Aaa/AAA | 12,684,000 | |||||||||||||||
1,000 | Menifee Union School Dist., Special Tax, 6.40%, 9/1/31 | NR/NR | 1,022,050 | |||||||||||||||
2,665 | Merced Irrigation District Electric System Rev., 6.50%, 9/1/22 | Baa3/NR | 2,730,399 | |||||||||||||||
3,500 | Metropolitan Water District of Southern California Rev., Water Works Rev., 5.00%, 7/1/26, Ser. A (Pre-refunded @ $101, 1/1/08) (a), | Aa2/AAA | 3,672,830 | |||||||||||||||
5,820 | Montclair Redevelopment Agcy., Tax Allocation, 5.30%, 10/1/30 (MBIA) | Aaa/AAA | 6,152,497 | |||||||||||||||
Murrieta Valley Unified School Dist., Special Tax, | ||||||||||||||||||
195 | 6.30%, 9/1/18 | NR/NR | 201,104 | |||||||||||||||
3,535 | 6.50%, 9/1/31 | NR/NR | 3,646,741 | |||||||||||||||
6,255 | Orange Cnty. Sanitation Dist., CP, 5.25%, 2/1/30 (FGIC) | Aaa/AAA | 6,575,131 | |||||||||||||||
1,080 | Palm
Springs Community Redevelopment Agcy., Tax Allocation, 5.50%, 8/1/21 |
NR/A− | 1,138,288 | |||||||||||||||
1,010 | Pomona Unified School Dist., GO, 6.10%, 2/1/19, Ser. A (MBIA) | Aaa/AAA | 1,203,344 | |||||||||||||||
1,690 | Rancho Etiwanda Public Facs., Special Tax, 6.375%, 9/1/24 | NR/NR | 1,743,387 | |||||||||||||||
Rancho Mirage Redevelopment Agcy., Tax Allocation, | ||||||||||||||||||
1,190 | 5.50%, 4/1/24 | Baa1/BBB+ | 1,245,466 | |||||||||||||||
1,580 | 5.625%, 4/1/33 | Baa1/BBB+ | 1,649,362 | |||||||||||||||
8,305 | Riverside Cnty., CP, 5.125%, 11/1/30 (MBIA) | Aaa/AAA | 8,616,354 | |||||||||||||||
Riverside Cnty. Public Auth. Financing, Tax Allocation, | ||||||||||||||||||
710 | 5.625%, 10/1/33 | Baa2/A | 733,693 | |||||||||||||||
290 | 5.625%, 10/1/33 (Pre-refunded @ $102, 10/1/06) (a) | Baa2/A | 302,615 | |||||||||||||||
Riverside Improvement Board Act of 1915, Special Assessment, | ||||||||||||||||||
500 | 6.15%, 9/2/19 | NR/NR | 517,390 | |||||||||||||||
1,350 | 6.375%, 9/2/26 | NR/NR | 1,404,783 | |||||||||||||||
575 | Roseville, Woodcreek Community Fac. District, Special Tax, 6.375%, 9/1/27 | NR/NR | 613,462 | |||||||||||||||
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 13
Principal Amount (000) |
Credit
Rating (Moody's/S&P) |
Value | ||||||||||||
Sacramento, Special Tax | ||||||||||||||
$2,945 | 5.70%, 9/1/23 | NR/NR | $2,999,129 | |||||||||||
1,350 | 6.10%, 9/1/21 | NR/NR | 1,383,723 | |||||||||||
2,560 | 6.15%, 9/1/26 | NR/NR | 2,626,406 | |||||||||||
2,000 | Sacramento
Health Fac. Rev., 5.30%, 1/1/24, Ser. A (CA Mtg. Ins.) |
NR/A | 2,063,540 | |||||||||||
545 | San Diego Cnty., CP, 5.25%, 10/1/28 | A2/NR | 563,416 | |||||||||||
1,000 | San Diego Cnty. Water Auth., CP, 5.00%, 5/1/32, Ser. A (MBIA) | Aaa/AAA | 1,026,390 | |||||||||||
3,330 | San
Francisco Bay Area Rapid Transit District Rev., 5.125%, 7/1/36 (AMBAC) |
Aaa/AAA | 3,419,410 | |||||||||||
720 | San Francisco City & Cnty. Redevelopment Agcy. Rev., Special Tax, 6.125%, 8/1/31 | NR/NR | 754,092 | |||||||||||
5,065 | San Joaquin Cnty., CP, 5.00%, 9/1/20 (MBIA) | Aaa/AAA | 5,249,822 | |||||||||||
San Joaquin Hills Transportation Corridor Agcy. Toll Road Rev., Ser. A, | ||||||||||||||
5,000 | zero coupon, 1/15/19 | Ba2/B | 4,504,150 | |||||||||||
5,000 | 5.50%, 1/15/28 | Ba2/B | 4,874,500 | |||||||||||
230 | San
Jose, Improved Board Act 1915, Special Assessment, 5.60%, 9/2/17, Ser. Q |
NR/NR | 237,068 | |||||||||||
5,000 | San
Jose Unified School District Santa Clara Cnty., GO, 5.125%, 8/1/25, Ser. D (FSA) |
Aaa/AAA | 5,251,250 | |||||||||||
San Juan Unified School District, GO (FSA), | ||||||||||||||
9,445 | zero coupon, 8/1/22 | Aaa/AAA | 4,247,511 | |||||||||||
10,895 | zero coupon, 8/1/25 | Aaa/AAA | 4,148,925 | |||||||||||
6,110 | zero coupon, 8/1/26 | Aaa/AAA | 2,197,828 | |||||||||||
600 | Santa Ana Financing Auth. Rev., 5.60%, 9/1/19 | NR/BBB | 627,720 | |||||||||||
1,815 | Santa Clara, CP, 5.00%, 2/1/32 (AMBAC) | Aaa/AAA | 1,867,054 | |||||||||||
1,435 | Santa
Maria JT Union High School District, GO, 5.25%, 8/1/25, Ser. A (FSA) |
Aaa/AAA | 1,548,580 | |||||||||||
500 | State
Dept. of Water Rev., Central Valley Project, 5.00%, 12/1/25, Ser. AC (MBIA) |
Aaa/AAA | 521,095 | |||||||||||
Statewide Community Dev. Auth., CP, | ||||||||||||||
8,000 | 5.375%, 4/1/30 | NR/BBB | 8,001,440 | |||||||||||
8,000 | 6.50%, 7/1/20 | A3/A− | 8,948,640 | |||||||||||
Statewide Community Dev. Auth. Rev., | ||||||||||||||
15,250 | 5.125%, 10/1/30 (CA Mtg. Ins.) | NR/A | 15,457,247 | |||||||||||
3,000 | 5.50%, 11/15/33 (CA St. Mtg.) | NR/A | 3,173,370 | |||||||||||
4,000 | 5.50%, 8/15/34, Ser. B | A1/AA− | 4,169,560 | |||||||||||
5,600 | 6.625%, 10/1/31 | NR/NR | 5,704,832 | |||||||||||
4,300 | 6.625%, 11/1/31 | NR/NR | 4,297,334 | |||||||||||
2,550 | 6.75%, 6/1/28 | NR/NR | 2,646,926 | |||||||||||
Tobacco Securitization Auth. Rev., Ser. A, | ||||||||||||||
1,500 | 5.25%, 6/1/31 | Baa3/BBB | 1,518,000 | |||||||||||
9,300 | 5.375%, 6/1/41 | Baa3/BBB | 9,440,430 | |||||||||||
1,650 | Town of Apple Valley, CP, 5.375 %, 6/1/21 (CA Mtg. Ins.) | NR/A | 1,744,826 | |||||||||||
14 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
Principal Amount (000) |
Credit
Rating (Moody's/S&P) |
Value | ||||||||||||
Tustin Unified School District, Special Tax, | ||||||||||||||
$2,345 | 5.50%, 9/1/22 | NR/NR | $2,339,700 | |||||||||||
2,520 | 5.60%, 9/1/29 | NR/NR | 2,536,430 | |||||||||||
2,000 | 5.625%, 9/1/32 | NR/NR | 2,010,500 | |||||||||||
University Rev., | ||||||||||||||
10,000 | 5.00%, 5/15/36, Ser. A (AMBAC) | Aaa/AAA | 10,264,900 | |||||||||||
7,000 | 5.125%, 9/1/31, Ser. O (FGIC) | Aaa/AAA | 7,299,740 | |||||||||||
3,750 | West Kern Cnty. Water Dist., CP, 5.625 %, 6/1/31 | Baa2/NR | 3,903,375 | |||||||||||
Total California Municipal Bonds & Notes (cost–$334,205,071) | 355,221,974 | |||||||||||||
OTHER MUNICIPAL BONDS & NOTES–6.8% |
||||||||||||||
Alabama–0.6% | ||||||||||||||
2,900 | Daphne Special Care Facs. Financing Auth. Rev.,zero coupon, 8/15/28 (Pre-refunded @ $100, 8/15/08)(a) | Aaa/AAA | 2,573,344 | |||||||||||
Illinois–1.4% | ||||||||||||||
Educational Facs. Auth. Rev., Univ. of Chicago, | ||||||||||||||
5,260 | 5.00%, 7/1/33 | Aa1/AA | 5,380,612 | |||||||||||
240 | 5.00%, 7/1/33 (Pre-refunded @ $100, 7/1/13)(a) | Aa1/AA | 258,809 | |||||||||||
5,639,421 | ||||||||||||||
Louisiana–0.4% | ||||||||||||||
1,750 | Tobacco
Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B |
Baa3/BBB | 1,826,492 | |||||||||||
New Jersey–1.7% | ||||||||||||||
Tobacco Settlement Financing Corp. Rev., | ||||||||||||||
1,685 | 6.00%, 6/1/37 | Baa3/BBB | 1,768,762 | |||||||||||
2,210 | 6.125%, 6/1/42 | Baa3/BBB | 2,326,312 | |||||||||||
2,315 | 6.375%, 6/1/32 | Baa3/BBB | 2,606,829 | |||||||||||
6,701,903 | ||||||||||||||
New York–0.6% | ||||||||||||||
2,000 | State Dormitory Auth. Rev., 6.25%, 8/15/15 (FHA) | Aa2/AAA | 2,291,720 | |||||||||||
Puerto Rico–1.6% | ||||||||||||||
Electric Power Auth. Power Rev., | ||||||||||||||
1,250 | 5.125%, 7/1/29, Ser. NN | A3/A− | 1,291,887 | |||||||||||
5,000 | 5.25%, 7/1/29, Ser. HH (FSA) | Aaa/AAA | 5,333,250 | |||||||||||
6,625,137 | ||||||||||||||
Rhode Island–0.4% | ||||||||||||||
1,500 | Tobacco Settlement Financing Corp. Rev., 6.125%, 6/1/32, Ser. A | Baa3/BBB | 1,583,220 | |||||||||||
South Carolina–0.1% | ||||||||||||||
340 | Tobacco
Settlement Rev. Management Auth., 6.375%, 5/15/30, Ser. B |
Baa3/BBB | 382,269 | |||||||||||
Total Other Municipal Bonds & Notes (cost–$25,102,079) | 27,623,506 | |||||||||||||
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 15
Principal Amount (000) |
Credit
Rating (Moody's/S&P) |
Value | ||||||||||||
CALIFORNIA VARIABLE RATE NOTES (b)(c)(d)–3.4% |
||||||||||||||
$10,002 | Los
Angeles Wastewater System Rev., 7.08%, 6/1/28, Ser. 318 (FGIC) |
Aaa/NR | $10,499,624 | |||||||||||
1,000 | Sacramento
County Sanitation District Rev., 13.088%, 8/1/13, Ser. 1034 (MBIA) |
AA/AAA | 1,191,150 | |||||||||||
2,000 | University Rev., 10.27%, 5/15/35, Ser. 1119 (FSA) | NR/AAA | 1,987,280 | |||||||||||
Total California Variable Rate Notes (cost $12,574,933) | 13,678,054 | |||||||||||||
OTHER VARIABLE RATE NOTES (b)(c)(d)–0.9% |
||||||||||||||
Puerto Rico–0.9% | ||||||||||||||
3,100 | Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A (cost–$3,312,327) | Baa3/BBB− | 3,357,765 | |||||||||||
CALIFORNIA VARIABLE RATE DEMAND NOTES (d)(e)–0.8% |
||||||||||||||
State of California, Daily Kindergarden Univ., GO, | ||||||||||||||
2,300 | 2.69%, 11/1/05 | Aaa/AA/A-1+ | 2,300,000 | |||||||||||
1,000 | 2.77%, 11/1/05 | VMIG1/A-1+ | 1,000,000 | |||||||||||
Total California Variable Rate Demand Notes (cost– $3,300,000) | 3,300,000 | |||||||||||||
U.S. TREASURY BILLS (f)–0.5% |
||||||||||||||
2,075 | 3.30%-3.58%,12/1/05-12/15/05 (cost–$2,066,563) | 2,066,563 | ||||||||||||
Total Investments before options written (cost– $380,560,973)–100.2% | 405,247,862 | |||||||||||||
OPTIONS WRITTEN (g)–(0.2)% |
||||||||||||||
Contracts | ||||||||||||||
Call Options–(0.0)% | ||||||||||||||
U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade, | ||||||||||||||
196 | strike price $112, expires 11/22/05 | (3,062) | ||||||||||||
262 | strike price $113, expires 11/22/05 | (4,094) | ||||||||||||
(7,156) | ||||||||||||||
Put Options–(0.2)% | ||||||||||||||
U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade, | ||||||||||||||
290 | strike price $110, expires 11/22/05 | (475,781) | ||||||||||||
U.S. Treasury Notes 5 yr. Futures, Chicago Board of Trade, | ||||||||||||||
346 | strike price $105.50, expires 11/22/05 | (64,875) | ||||||||||||
290 | strike price $106, expires 11/22/05 | (117,813) | ||||||||||||
(658,469) | ||||||||||||||
Total Options Written (premiums received–$591,502) | (665,625) | |||||||||||||
Total Investments net of options written (cost–$379,969,471)–100.0% | $404,582,237 | |||||||||||||
16 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05| See accompanying Notes to Financial Statements
Principal Amount (000) |
Credit Rating (Moody's/S&P) |
Value | |||||||||||||
NEW YORK MUNICIPAL BONDS & NOTES–80.8% |
|||||||||||||||
$3,265 | Albany Industrial Dev. Agcy. Civic Fac. Rev., 5.30%, 4/1/29, Ser. A | Baa3/NR | $ 3,355,864 | ||||||||||||
2,000 | Liberty Dev. Corp. Rev., Goldman Sachs, GO, 5.25%, 10/1/35 | Aa3/A+ | 2,192,720 | ||||||||||||
1,000 | Long Island Power Auth. Electric System Rev., 5.375%, 5/1/33, Ser. L | A3/A– | 1,041,190 | ||||||||||||
Metropolitan Transportation Auth. NY Service Contract Rev., Ser. A, | |||||||||||||||
6,040 | 5.00%, 7/1/25, (FGIC) | Aaa/AAA | 6,264,567 | ||||||||||||
8,150 | 5.00%, 7/1/30, (AMBAC) | Aaa/AAA | 8,381,786 | ||||||||||||
1,375 | 5.125%, 1/1/29 | A2/AA– | 1,427,910 | ||||||||||||
1,500 | Monroe Tobacco Asset Securitization Corp., Tobacco Settlement Rev., 6.375%, 6/1/35 (Pre-refunded @ $101, 6/1/10) (a) | Ba1/BBB | 1,694,385 | ||||||||||||
New York City, GO, Ser. J, | |||||||||||||||
4,945 | 5.125%, 5/15/29, (MBIA) | AAA/AAA | 5,142,998 | ||||||||||||
55 | 5.125%, 5/15/29, (Pre-refunded @ $101, 5/15/09) (MBIA) (a) | AAA/AAA | 58,963 | ||||||||||||
300 | 5.25%, 6/1/28 | A1/A+ | 313,908 | ||||||||||||
New York City Municipal Water Finance Auth., Water & Sewer System Rev., | |||||||||||||||
7,605 | 4.75%, 6/15/31, Ser. A (FGIC) | Aaa/AAA | 7,637,245 | ||||||||||||
7,000 | 5.125%, 6/15/21, Ser. A (AMBAC-TCRS) | Aaa/AAA | 7,235,340 | ||||||||||||
5,000 | 5.125%, 6/15/33, Ser. C | Aa2/AA+ | 5,171,100 | ||||||||||||
5,000 | 5.25%, 6/15/25, Ser. D | Aa2/AA+ | 5,312,500 | ||||||||||||
2,250 | New
York City Transitional Finance Auth. Rev., 4.75%, 11/15/23, Ser. B |
Aa1/AAA | 2,280,173 | ||||||||||||
130 | New York Cntys. Tobacco Trust II Rev., 5.75%, 6/1/43 | Ba1/BBB | 136,517 | ||||||||||||
1,000 | Niagara
Falls Public Water Auth., Water & Sewer System Rev., 5.00%, 7/15/34, Ser. A (MBIA) |
Aaa/AAA | 1,029,540 | ||||||||||||
Port Auth. of New York & New Jersey Rev., | |||||||||||||||
3,000 | 5.00%, 9/1/29, Ser. 132 | A1/AA– | 3,110,640 | ||||||||||||
5,000 | 5.00%, 9/1/38, Ser. 132 | A1/AA– | 5,140,450 | ||||||||||||
4,515 | Sachem
Central School Dist. of Holbrook, GO, 5.00%, 10/15/30, Ser. B (MBIA) |
Aaa/AAA | 4,682,687 | ||||||||||||
6,550 | State Dormitory Auth. Lease Rev., 4.75%, 1/15/29, Ser. 1 (FSA) | Aaa/AAA | 6,588,514 | ||||||||||||
State Dormitory Auth. Rev., | |||||||||||||||
Augustana Lutheran Home for the Aged, Inc., (MBIA-FHA), | |||||||||||||||
100 | 5.40%, 2/1/31 | Aaa/AAA | 105,378 | ||||||||||||
1,435 | 5.50%, 2/1/41 | Aaa/AAA | 1,516,408 | ||||||||||||
3,850 | Lenox Hill Hospital, Obligation Group, 5.50%, 7/1/30 | Ba2/NR | 3,813,772 | ||||||||||||
Mental Health Services Fac. Improvement, Ser. D (MBIA), | |||||||||||||||
7,985 | 4.75%, 2/15/25 | Aaa/AAA | 8,036,184 | ||||||||||||
15 | 4.75%, 2/15/25, (Pre-refunded @ $100, 8/15/08) (a) | Aaa/AAA | 15,759 | ||||||||||||
1,825 | Mount Sinai Health, 6.50%, 7/1/25, Ser. A | Ba1/BB | 1,934,737 | ||||||||||||
7,000 | NY & Presbyterian Hospital, 4.75%, 8/1/27 (AMBAC-FHA) | Aaa/AAA | 7,061,110 | ||||||||||||
445 | NY Univ., 5.50%, 7/1/21, Ser. 2 (AMBAC) | Aaa/AAA | 478,722 | ||||||||||||
4,000 | Sloan-Kettering Center Mem., 5.00%, 7/1/34, Ser. 1 | Aa2/AA | 4,081,360 | ||||||||||||
1,275 | Winthrop Univ., Hospital Assoc., 5.25%, 7/1/31, Ser. A (AMBAC) | Aaa/AAA | 1,339,158 | ||||||||||||
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 17
Principal Amount (000) |
Credit Rating (Moody's/S&P) |
Value | |||||||||||||
State Dormitory Auth. State Univ., GO (Pre-refunded @ $101, 5/15/08) (FSA-CR) (a), | |||||||||||||||
$1,270 | 4.75%, 5/15/28 | Aaa/AAA | $1,331,138 | ||||||||||||
1,045 | 4.75%, 5/15/28, Ser. B | Aaa/AAA | 1,095,306 | ||||||||||||
5,000 | State Thruway Auth. General Rev., 4.75%, 1/1/19, Ser. E | Aa3/AA– | 5,111,050 | ||||||||||||
3,975 | State
Urban Dev. Corp. Rev. Correctional Facility Service, 4.75%, 1/1/28, Ser. B (Pre-refunded @ $101, 1/1/09) (AMBAC) (a) |
Aaa/AAA | 4,192,154 | ||||||||||||
Triborough Bridge & Tunnel Auth. Rev., Series A, | |||||||||||||||
2,000 | 5.00%, 1/1/27 | Aa2/AA– | 2,056,420 | ||||||||||||
755 | 5.00%, 1/1/32 | Aa2/AA– | 776,706 | ||||||||||||
4,245 | 5.00%, 1/1/32 (Pre-refunded @ $100, 1/1/12) (a) | Aa2/AA– | 4,570,592 | ||||||||||||
2,945 | Warren & Washington Cntys. Industrial Dev. Agcy., Glens Falls Hospital Project Rev., 5.00%, 12/1/27, Ser. C (FSA) | Aaa/AAA | 3,059,885 | ||||||||||||
2,000 | Yonkers, GO, 5.00%, 8/1/30, Ser. B (MBIA) | Aaa/AAA | 2,063,700 | ||||||||||||
Total New York Municipal Bonds & Notes (cost–$124,350,443) | 130,838,536 | ||||||||||||||
OTHER MUNICIPAL BONDS & NOTES–5.0% |
|||||||||||||||
Alabama–0.7% | |||||||||||||||
1,200 | Daphne Special Care Facs. Financing Auth. Rev., zero coupon, 8/15/28 (Pre-refunded @ $100, 8/15/08) (a) | Aaa/AAA | 1,064,832 | ||||||||||||
Illinois–2.5% | |||||||||||||||
Educational Facs. Auth. Rev., | |||||||||||||||
3,825 | 5.00%, 7/1/33 | Aa1/AA | 3,912,707 | ||||||||||||
175 | 5.00%, 7/1/33 (Pre-refunded @ $100, 7/1/13) (a) | Aa1/AA | 188,715 | ||||||||||||
4,101,422 | |||||||||||||||
Louisiana–0.5% | |||||||||||||||
750 | Tobacco
Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B |
Baa3/BBB | 782,783 | ||||||||||||
Puerto Rico–1.3% | |||||||||||||||
1,500 | Commonwealth
Highway & Transportation Auth. Rev., 5.25%, 7/1/38, Ser. D (Pre-refunded @ $100, 7/1/12) (a) |
Baa2/BBB+ | 1,636,995 | ||||||||||||
500 | Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN | A3/A– | 516,755 | ||||||||||||
2,153,750 | |||||||||||||||
Total Other Municipal Bonds & Notes (cost–$7,683,627) | 8,102,787 | ||||||||||||||
NEW YORK VARIABLE RATE NOTES (b)(c)(d)–8.9% |
|||||||||||||||
2,173 | New
York City Transitional Finance Auth. Rev., 11.45%, 11/1/23, Ser. 362 |
Aa1/NR | 2,337,393 | ||||||||||||
New York Cntys. Tobacco Trust II Rev., | |||||||||||||||
4,240 | 7.478%, 6/1/35 | NR/NR | 4,585,305 | ||||||||||||
6,780 | 7.716%, 6/1/43 | NR/NR | 7,431,558 | ||||||||||||
Total New York Variable Rate Notes (cost–$13,293,503) | 14,354,256 | ||||||||||||||
18 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
Principal Amount (000) |
Credit Rating (Moody's/S&P) |
Value | |||||||||||||
OTHER VARIABLE RATE NOTES (b)(c)(d)–1.9% |
|||||||||||||||
California–1.0% |
|||||||||||||||
$1,240 | State Economic Recovery, GO, 14.62%, 1/1/10, Ser. 935 | Aa3/NR | $1,696,692 | ||||||||||||
Puerto Rico–0.9% | |||||||||||||||
1,300 | Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A | Baa3/BBB– | 1,408,095 | ||||||||||||
Total Other Variable Rate Notes (cost–$3,016,308) | 3,104,787 | ||||||||||||||
NEW YORK VARIABLE RATE DEMAND NOTES (d)(e)–3.0% |
|||||||||||||||
City of New York, GO, | |||||||||||||||
450 | 2.73%, 11/1/05, Ser. A-7 (AMBAC) | VMIG1/A-1+ | 450,000 | ||||||||||||
100 | 2.75%, 11/1/05, Ser. A-10 | VMIG1/A-1+ | 100,000 | ||||||||||||
New York City Transitional Finance Auth., | |||||||||||||||
600 | GO, 2.68%, 11/1/05, Ser. H-7 | VMIG1/A-1 | 600,000 | ||||||||||||
1,000 | Rev., 2.70%, 11/1/05, Ser. 3 | VMIG1/A-1+ | 1,000,000 | ||||||||||||
2,500 | State
Dormitory Authority Rev., Cornell University, 2.65%, 11/3/05, Ser. A |
VMIG1/A-1+ | 2,500,000 | ||||||||||||
200 | State
Energy Research & Dev. Auth. Rev., 2.68%, 11/2/05, Ser. A-2 |
VMIG1/A-1+ | 200,000 | ||||||||||||
Total New York Variable Rate Demand Notes (cost–$4,850,000) | 4,850,000 | ||||||||||||||
U.S. TREASURY BILLS (f)–0.5% |
|||||||||||||||
855 | 3.32%-3.58%,12/15/05-12/15/05 (cost–$851,435) | 851,435 | |||||||||||||
Total Investments before options written (cost–$154,045,316)–100.1% | 162,101,801 | ||||||||||||||
OPTIONS WRITTEN (g)–(0.1)% |
||||||||||||||
Contracts | ||||||||||||||
Put Options–(0.1)% | ||||||||||||||
117 | U.S.
Treasury Notes 10 yr. Futures, Chicago Board of Trade, strike price $110, expires 11/22/05 (premiums received–$118,448) |
(191,953) | ||||||||||||
Total Investments net of options written (cost–$153,926,868)–100.0% | $161,909,848 | |||||||||||||
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 19
Notes to Schedules of Investments:
(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. payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). |
(b) | 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. |
(c) | 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. |
(d) | 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). |
(e) | Maturity date shown is date of next put. |
(f) | All or partial amount segregated as collateral for futures contracts. |
(g) | Non-income producing. |
Glossary:
ACA–American Capital Access Holding Ltd. |
AMBAC–insured by American Municipal Bond Assurance Corp. |
CA Mtg. Ins.–insured by California Mortgage Insurance |
CA St. Mtg.–insured by California State Mortgage |
CP–Certificates of Participation |
CR–Custodian Receipt |
FGIC–insured by Financial Guaranty Insurance Co. |
FHA–insured by Federal Housing Administration |
FSA–insured by Financial Security Assurance, Inc. |
GO–General Obligation Bond |
GTD–Guaranteed |
IBC–Insurance Bond Certificate |
MBIA–insured by Municipal Bond Investors Assurance |
NR–Not Rated |
PSF–Public School Fund |
Radian–insured by Radian Guaranty Inc. |
TCRS–Temporary Custodian Receipts |
XLCA–insured by XL Capital Assurance |
20 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05| See accompanying Notes to Financial Statements
Municipal | California Municipal |
New
York Municipal |
||||||||||||
Assets: | ||||||||||||||
Investments,
at value (cost–$518,035,967, $380,560,973, and $154,045,316, respectively) |
$548,514,807 | $405,247,862 | $162,101,801 | |||||||||||
Cash | 805,945 | 69,317 | 330,572 | |||||||||||
Interest receivable | 10,258,050 | 5,900,726 | 2,734,356 | |||||||||||
Prepaid expenses | 33,061 | 26,080 | 17,806 | |||||||||||
Total Assets | 559,611,863 | 411,243,985 | 165,184,535 | |||||||||||
Liabilities: | ||||||||||||||
Dividends payable to common and preferred shareholders | 2,041,991 | 1,416,692 | 581,815 | |||||||||||
Options written, at value (premiums received–$983,377, $591,502, and $118,448) | 1,021,984 | 665,625 | 191,953 | |||||||||||
Investment management fees payable | 214,059 | 157,241 | 63,181 | |||||||||||
Accrued expenses | 103,870 | 68,753 | 58,119 | |||||||||||
Payable for variation margin on futures contracts | 29,047 | 23,031 | 6,500 | |||||||||||
Total Liabilities | 3,410,951 | 2,331,342 | 901,568 | |||||||||||
Preferred shares ($25,000 net asset and liquidation value per share applicable to an aggregate of 8,000, 6,000 and 2,520 shares issued and outstanding, respectively) | 200,000,000 | 150,000,000 | 63,000,000 | |||||||||||
Net Assets Applicable to Common Shareholders | $356,200,912 | $258,912,643 | $101,282,967 | |||||||||||
Composition
of Net Assets Applicable to
Common Shareholders: |
||||||||||||||
Common
Stock (no par value) Paid-in-capital |
$346,208,657 | $253,331,783 | $105,102,176 | |||||||||||
Undistributed net investment income | 8,503,536 | 4,240,379 | 427,881 | |||||||||||
Accumulated net realized loss on investments | (29,591,350) | (23,821,285) | (12,345,398) | |||||||||||
Net
unrealized appreciation of investments, futures contracts and options written |
31,080,069 | 25,161,766 | 8,098,308 | |||||||||||
Net Assets Applicable to Common Shareholders | $356,200,912 | $258,912,643 | $101,282,967 | |||||||||||
Common Shares Outstanding | 24,383,274 | 17,850,653 | 7,419,228 | |||||||||||
Net Asset Value Per Common Share | $14.61 | $14.50 | $13.65 | |||||||||||
See accompanying Notes to Financial Statements | 10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 21
Municipal | California Municipal |
New York Municipal |
||||||||||||
Investment Income: | ||||||||||||||
Interest | $15,248,327 | $10,675,855 | $4,129,500 | |||||||||||
Expenses: | ||||||||||||||
Investment management fees | 1,849,592 | 1,352,873 | 543,852 | |||||||||||
Auction agent fees and commissions | 263,310 | 196,560 | 83,128 | |||||||||||
Custodian and accounting agent fees | 65,570 | 32,816 | 27,742 | |||||||||||
Audit and tax services | 26,154 | 25,707 | 17,480 | |||||||||||
Reports and notices to shareholders | 21,336 | 18,725 | 8,280 | |||||||||||
Trustees' fees and expenses | 19,664 | 12,372 | 10,120 | |||||||||||
Transfer agent fees | 16,917 | 18,429 | 16,560 | |||||||||||
New York Stock Exchange listing fees | 11,909 | 11,743 | 11,794 | |||||||||||
Insurance expense | 5,629 | 4,238 | 2,089 | |||||||||||
Legal fees | 5,296 | 5,268 | 1,840 | |||||||||||
Investor relations | 4,448 | 1,052 | 1,748 | |||||||||||
Miscellaneous | 6,020 | 4,968 | 4,246 | |||||||||||
Total expenses | 2,295,845 | 1,684,751 | 728,879 | |||||||||||
Less: investment management fees waived | (569,101) | (416,269) | (167,338) | |||||||||||
custody credits earned on cash balances | (4,381) | (7,340) | (5,662) | |||||||||||
Net expenses | 1,722,363 | 1,261,142 | 555,879 | |||||||||||
Net Investment Income | 13,525,964 | 9,414,713 | 3,573,621 | |||||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||
Net realized gain (loss) on: | ||||||||||||||
Investments | 876,736 | 179,079 | 380,923 | |||||||||||
Futures contracts | (4,074,471) | (2,756,486) | (1,430,249) | |||||||||||
Options written | 513,701 | 517,938 | 396,805 | |||||||||||
Net change in unrealized appreciation/depreciation of: | ||||||||||||||
Investments | (5,783,421) | (1,623,518) | (975,979) | |||||||||||
Futures contracts | 2,184,836 | 1,694,188 | 660,953 | |||||||||||
Options written | 1,326,585 | 741,458 | 112,456 | |||||||||||
Net realized and change in unrealized loss on investments, futures contracts and options written | (4,956,034) | (1,247,341) | (855,091) | |||||||||||
Net
Increase in Net Assets Resulting from
Investment Operations |
8,569,930 | 8,167,372 | 2,718,530 | |||||||||||
Dividends
on Preferred Shares from Net Investment Income |
(2,294,075) | (1,577,476) | (712,559) | |||||||||||
Net
Increase in Net Assets Applicable to Common
Shareholders Resulting from Investment Operations |
$6,275,855 | $6,589,896 | $2,005,971 | |||||||||||
22 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05| See accompanying Notes to Financial Statements
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 23
Municipal | ||||||||||
Six Months ended October 31, 2005 (unaudited) |
Year ended April 30, 2005 |
|||||||||
Investment Operations: | ||||||||||
Net investment income | $13,525,964 | $27,652,489 | ||||||||
Net realized loss on investments, futures contracts and options written | (2,684,034) | (8,369,653) | ||||||||
Net change in unrealized appreciation/depreciation of investments, futures contracts and options written | (2,272,000) | 24,934,751 | ||||||||
Net increase in net assets resulting from investment operations | 8,569,930 | 44,217,587 | ||||||||
Dividends on Preferred Shares from Net investment Income | (2,294,075) | (2,856,330) | ||||||||
Net
increase in net assets applicable to common shareholders resulting from investment operations |
6,275,855 | 41,361,257 | ||||||||
Dividends to Common Shareholders from Net investment Income | (11,869,094) | (23,656,743) | ||||||||
Capital Share Transactions: | ||||||||||
Reinvestment of dividends | 1,094,727 | 1,211,038 | ||||||||
Total increase (decrease) in net assets applicable to common shareholders | (4,498,512) | 18,915,552 | ||||||||
Net Assets Applicable to Common Shareholders: | ||||||||||
Beginning of period | 360,699,424 | 341,783,872 | ||||||||
End of period (including undistributed net investment income of $8,503,536 and $9,140,741; $4,240,379 and $4,640,975; $427,881 and $898,985; respectively) | $356,200,912 | $360,699,424 | ||||||||
Common Shares Issued in Reinvestment of Dividends: | 72,900 | 83,880 | ||||||||
24 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05| See accompanying Notes to Financial Statements
California Municipal | New York Municipal | |||||||||||||
Six Months ended October 31, 2005 (unaudited) |
Year ended April 30, 2005 |
Six Months ended October 31, 2005 (unaudited) |
Year ended April 30, 2005 |
|||||||||||
$9,414,713 | $19,052,509 | $3,573,621 | $7,428,747 | |||||||||||
(2,059,469) | (4,591,905) | (652,521) | (3,609,336) | |||||||||||
812,128 | 16,036,473 | (202,570) | 6,558,341 | |||||||||||
8,167,372 | 30,497,077 | 2,718,530 | 10,377,752 | |||||||||||
(1,577,476) | (1,919,248) | (712,559) | (892,314) | |||||||||||
6,589,896 | 28,577,829 | 2,005,971 | 9,485,438 | |||||||||||
(8,237,833) | (16,457,576) | (3,332,166) | (6,632,392) | |||||||||||
582,974 | — | 497,262 | 337,047 | |||||||||||
(1,064,963) | 12,120,253 | (828,933) | 3,190,093 | |||||||||||
259,977,606 | 247,857,353 | 102,111,900 | 98,921,807 | |||||||||||
$258,912,643 | $259,977,606 | $101,282,967 | $102,111,900 | |||||||||||
39,424 | — | 35,208 | 24,712 | |||||||||||
See accompanying Notes to Financial Statements | 10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 25
1. Organization and Significant Accounting Policies
PIMCO Municipal Income Fund ("Municipal"), PIMCO California Municipal Income Fund ("California Municipal") and PIMCO New York Municipal Income Fund ("New York Municipal"), collectively referred to as the "Funds", were organized as Massachusetts business trusts on May 10, 2001. Prior to commencing operations on June 29, 2001, the Funds had no operations other than matters relating to their organization and registration as non-diversified, closed-end management investment companies registered under the Investment Company Act of 1940 and the rules and regulations thereunder, as amended. Allianz Global Investors Fund Management LLC (the "Investment Manager"), serves as the investment manager and is an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P. ("Allianz Global"). Allianz Global is an indirect majority-owned subsidiary of Allianz AG.
Municipal invests substantially all of its assets in a portfolio of municipal bonds, the interest from which is exempt from federal income taxes. California Municipal invests substantially all of its assets in municipal bonds which pay interest that is exempt from federal and California state income taxes. New York Municipal invests substantially all of its assets in municipal bonds which pay interest that is exempt from federal, New York state and New York City income taxes. The Funds will seek to avoid bonds generating interest income which could potentially subject individuals to alternative minimum tax. The issuers' abilities to meet their obligations may be affected by economic and political developments in a specific state or region.
The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
In the normal course of business the Funds enter into contracts that contain a variety of representations which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds based upon events that have not been asserted. However, the Funds expect the risk of any loss to be remote.
The following is a summary of significant accounting policies consistently followed by the Funds:
(a) Valuation 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 a security may be fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees. The Funds' investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or are valued at the last sale price on the exchange that is the primary market for such securities, or 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. 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 purchased 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 Funds to value securities may differ from the value that would be realized if the securities were sold and the differences could be material to the financial statements. The Funds' net asset values are determined daily as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange on each day the exchange is open for business.
(b) Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Interest income is recorded on an accrual basis. Original issue discounts or premiums on debt securities purchased are accreted or amortized daily to non-taxable interest income. Market discount, if any, is accreted daily to taxable income.
(c) Federal Income Taxes
The Funds intend to distribute all of their taxable income and to comply with the other requirements of the U.S. Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required. In addition, by distributing substantially all of their taxable ordinary income and long-term capital gains, if any, during each calendar year, the Funds intend not to be subject to U.S. federal excise tax.
26 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
1. Organization and Significant Accounting Policies (continued)
(d) Dividends and Distributions — Common Stock
The Funds declare dividends from net investment income monthly to common shareholders. Distributions of net realized capital gains, if any, are paid at least annually. Each Fund records dividends and distributions to its shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These "book-tax" differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment; temporary differences do not require reclassification. To the extent dividends and/or distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as dividends and/or distributions of paid-in capital in excess of par.
(e) Futures Contracts
A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into such a contract, the Funds are required to pledge to the broker an amount of cash or securities, equal to the minimum "initial margin" requirements of the exchange. Pursuant to the contracts, the Funds agree to receive from or pay to the broker an amount of cash or securities equal to the daily fluctuation in the value of the contracts. Such receipts or payments are known as "variation margin" and are recorded by the Funds as unrealized appreciation or depreciation. When the contracts are closed, the Funds record a realized gain or loss equal to the difference between the value of the contracts at the time they were opened and the value at the time they were closed. Any unrealized appreciation or depreciation recorded is simultaneously reversed. The use of futures transactions involves the risk of an imperfect correlation in the movements in the price of futures contracts, interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts.
(f) Option Transactions
The Funds may purchase and write (sell) put and call options on securities for hedging purposes, risk management purposes or as part of its investment strategy. The risk associated with purchasing an option is that the Funds pay a premium whether or not the option is exercised. Additionally, the Funds bear the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by the premiums paid. The proceeds from securities sold through the exercise of put options is decreased by the premiums paid. When an option is written, the premium received is recorded as an asset with an equal liability which is subsequently adjusted to the current market value of the option written. These liabilities are reflected as options written in the Statement of Assets and Liabilities. Premiums received from writing options which expire unexercised are recorded on the expiration date as a realized gain. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchased transactions, as a realized loss. If a call option written by the Fund is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a put option written by the Fund is exercised, the premium reduces the cost basis of the security. In writing an option, the Funds bear the market risk of an unfavorable change in the price of the security underlying the written option. Exercise of a written option could result in the Funds purchasing a security at a price different from its current market value.
(g) Residual Interest Municipal Bonds ("RIBS")/Residual Interest Tax Exempt Bonds ("RITES")
The Funds invest in RIBS and RITES whose interest rates bear an inverse relationship to the interest rate on another security or the value of an index. RIBS and RITES are created by dividing the income stream provided by the underlying bonds to create two securities, one short-term and one long-term. The interest rate on the short-term component is reset by an index or auction process normally every seven to 35 days. After income is paid on the short-term securities at current rates, the residual income from the underlying bond(s) goes to the long-term securities. Therefore, rising short-term interest rates result in lower income for the longer-term portion, and visa versa. The longer-term bonds may be more volatile and less liquid than other municipal bonds of comparable maturity. Investments in RIBS and RITES typically will involve greater risk than an investment in a fixed-rate bond. The Funds may also invest in RIBS and RITES for the purpose of increasing their leverage.
(h) When-Issued/Delayed-Delivery Transactions
The Funds may purchase or sell securities on a when-issued or delayed-delivery basis. The transactions involve a commitment to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 27
1. Organization and Significant Accounting Policies (continued)
beyond the customary settlement period. When delayed-delivery purchases are outstanding, the Funds will set aside and maintain until the settlement date in a designated account, liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed-delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. The Funds may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a realized gain or loss. When a security on a delayed-delivery basis is sold, the Fund does not participate in future gains and losses with respect to the security.
(i) Custody Credits Earned on Cash Balances
The Funds benefit from an expense offset arrangement with their custodian bank whereby uninvested cash balances earn credits which reduce monthly custodian and accounting agent expenses. Had these cash balances been invested in income producing securities, they would have generated income for the Funds.
2. Investment Manager /Sub-Adviser
Each Fund has entered into an Investment Management Agreement (the ("Agreements") with the Investment Manager. Subject to the supervision by each Fund's Board of Trustees, the Investment Manager is responsible for managing, either directly or through others selected by it, the Fund's investment activities, business affairs and other administrative matters. Pursuant to the Agreements, the Investment Manager receives an annual fee, payable monthly, at the annual rate of 0.65% of each Fund's average daily net assets, inclusive of net assets attributable to any preferred shares that may be outstanding. In order to reduce each Fund's expenses, the Investment Manager has contractually agreed to waive a portion of its investment management fee for each Fund at the annual rate of 0.20% of each Fund's average daily net assets, including net assets attributable to any preferred shares that may be outstanding, from the commencement of operations through June 30, 2006, and for a declining amount thereafter through June 30, 2009.
The Investment Manager has retained its affiliate, Pacific Investment Management Company LLC (the "Sub-Adviser") to manage each Fund's investments. Subject to the supervision of the Investment Manager, the Sub-Adviser makes all investment decisions for the Funds. The Investment Manager, not the Funds, pays a portion of the fees it receives to the Sub-Adviser in return for its services, at the maximum annual rate of 0.37%of each Funds average daily net assets, inclusive of net assets attributable to any preferred shares that may be outstanding. The Sub-Adviser has contractually agreed to waive a portion of the fees it is entitled to receive from the Investment Manager, such that the Sub-Adviser will receive 0.25% of each Fund's average daily net assets, including net assets attributable to any preferred shares that may be outstanding, from the commencement of the Funds' operations through June 30, 2006, and will receive an increasing amount not to exceed 0.37% of each Fund's average daily net assets, including net assets attributable to any preferred shares that may be outstanding thereafter through June 30, 2009.
3. Investments in Securities
(a) For the six months ended October 31, 2005, purchases and sales of investments, other than short-term securities, were:
Municipal | California Municipal |
New York Municipal |
||||||||||||
Purchases | $89,890,982 | $26,105,833 | $26,498,285 | |||||||||||
Sales | 86,684,563 | 23,438,356 | 24,420,044 | |||||||||||
28 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.05
3. Investments in Securities (continued)
(b) Futures contracts outstanding at October 31, 2005:
Fund | Type | Notional
Amount (000) |
Expiration Date |
Unrealized Appreciation (Depreciation) |
||||||||||||||
Municipal | Long: U.S. Treasury Notes 5 yr. Futures | $28,100 | 12/20/05 | $(513,703) | ||||||||||||||
Short: U.S. Treasury Bond Futures | (21,400) | 12/20/05 | 1,153,539 | |||||||||||||||
$639,836 | ||||||||||||||||||
California Municipal | Long: U.S. Treasury Notes 5 yr. Futures | $20,600 | 12/20/05 | $(389,438) | ||||||||||||||
Short: U.S. Treasury Bond Futures | (16,800) | 12/20/05 | 938,437 | |||||||||||||||
$548,999 | ||||||||||||||||||
New York Municipal | Long: U.S. Treasury Notes 5 yr. Futures | $8,400 | 12/20/05 | $(162,938) | ||||||||||||||
Short: U.S. Treasury Bond Futures | (5,000) | 12/20/05 | 278,266 | |||||||||||||||
$115,328 | ||||||||||||||||||
(c) Transactions in options written for the six months ended October 31, 2005:
Contracts | Premiums | |||||||||
Municipal: | ||||||||||
Options outstanding, April 30, 2005 | 2,580 | $2,313,121 | ||||||||
Options written | 7,244 | 3,892,040 | ||||||||
Options expired | (2,076) | (1,414,695) | ||||||||
Options terminated in closing purchase transactions | (5,215) | (3,807,089) | ||||||||
Options outstanding, October 31, 2005 | 2,533 | $983,377 | ||||||||
California Municipal: | ||||||||||
Options outstanding, April 30, 2005 | 1,779 | $1,566,403 | ||||||||
Options written | 4,622 | 2,622,722 | ||||||||
Options expired | (1,864) | (1,326,165) | ||||||||
Options terminated in closing purchase transactions | (3,153) | (2,271,458) | ||||||||
Options outstanding, October 31, 2005 | 1,384 | $591,502 | ||||||||
New York Municipal: | ||||||||||
Options outstanding, April 30, 2005 | 713 | $644,445 | ||||||||
Options written | 1,330 | 972,381 | ||||||||
Options expired | (747) | (568,305) | ||||||||
Options terminated in closing purchase transactions | (1,179) | (930,073) | ||||||||
Options outstanding, October 31, 2005 | 117 | $118,448 | ||||||||
4. Income Tax Information
The cost of investments for federal income tax purposes and gross unrealized appreciation and gross unrealized depreciation of investments at October 31, 2005 were:
Fund | Cost
of Investments |
Gross Unrealized Appreciation |
Gross
Unrealized Depreciation |
Unrealized Appreciation |
||||||||||||||
Municipal | $518,035,967 | $35,088,828 | $4,609,988 | $30,478,840 | ||||||||||||||
California Municipal | 380,560,973 | 25,154,659 | 467,769 | 24,686,890 | ||||||||||||||
New York Municipal | 154,045,316 | 8,161,081 | 104,596 | 8,056,485 | ||||||||||||||
5. Auction Preferred Shares
Municipal has issued 1,600 shares of Preferred Shares Series A, 1,600 shares of Preferred Shares Series B, 1,600 shares of Preferred Shares Series C, 1,600 shares of Preferred Shares Series D and 1,600 shares of Preferred Shares Series E, each with a net asset and liquidation value of $25,000 per share plus accrued dividends.
10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 29
5. Auction Preferred Shares (continued)
California Municipal has issued 2,000 shares of Preferred Shares Series A, 2,000 shares of Preferred Shares Series B, 2,000 shares of Preferred Shares Series C, each with a net asset and liquidation value of $25,000 per share plus accrued dividends.
New York Municipal has issued 2,520 shares of Preferred Shares Series A with a net asset and liquidation value of $25,000 per share, plus accrued dividends.
Dividends are accumulated daily at an annual rate set through auction procedures. Distributions of net realized capital gains, if any, are paid annually.
For the six months ended October 31, 2005, the annualized dividend rates ranged from:
High | Low | October 31, 2005 | ||||||||||||
Municipal: | ||||||||||||||
Series A | 2.850% | 1.880% | 2.450% | |||||||||||
Series B | 2.795% | 0.700% | 2.400% | |||||||||||
Series C | 2.650% | 1.500% | 2.450% | |||||||||||
Series D | 2.750% | 1.800% | 2.250% | |||||||||||
Series E | 2.850% | 1.600% | 2.600% | |||||||||||
California Municipal: | ||||||||||||||
Series A | 2.750% | 1.000% | 2.300% | |||||||||||
Series B | 2.700% | 1.590% | 2.450% | |||||||||||
Series C | 2.550% | 1.450% | 2.450% | |||||||||||
New York Municipal: | ||||||||||||||
Series A | 2.600% | 1.850% | 2.450% | |||||||||||
The Funds are subject to certain limitations and restrictions while Preferred Shares are outstanding. Failure to comply with these limitations and restrictions could preclude the Funds from declaring any dividends or distributions to common shareholders or repurchasing common shares and/or triggering the mandatory redemption of Preferred Shares at their liquidation value.
6. Subsequent Common Dividend Declarations
On November 1, 2005, the following dividends were declared to common shareholders payable December 1, 2005 to shareholders of record on November 18, 2005:
Municipal | $.08125 per common share | |||||
California Municipal | $.077 per common share | |||||
New York Municipal | $.075 per common share | |||||
On December 1, 2005, the following dividends were declared to common shareholders payable December 30, 2005 to shareholders of record on December 16, 2005:
Municipal |