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

PIMCO Municipal Income Fund
PIMCO California Municipal Income Fund
PIMCO New York Municipal Income Fund
Semi-Annual Report
October 31, 2005

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



PIMCO Municipal Income Funds 
Letter to Shareholders

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
 

10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 1




PIMCO Municipal Income Fund  
Performance & Statistics
October 31, 2005 (unaudited)

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




PIMCO California Municipal Income Fund 
Performance & Statistics
October 31, 2005 (unaudited)

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




PIMCO New York Municipal Income Fund  
Performance & Statistics
October 31, 2005 (unaudited)

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




PIMCO Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited)


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




PIMCO Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (concluded)


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




PIMCO California Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited)


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




PIMCO California Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO California Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO California Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO California Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (concluded)


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




PIMCO New York Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited)


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




PIMCO New York Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO New York Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (continued)


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




PIMCO New York Municipal Income Fund 
Schedule of Investments
October 31, 2005 (unaudited) (concluded)


     

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




PIMCO Municipal Income Fund 
Statements of Assets and Liabilities
October 31, 2005 (unaudited)


  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




PIMCO Municipal Income Funds 
Statements of Operations
For the six months ended October 31, 2005 (unaudited)


  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




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10.31.05 | PIMCO Municipal Income Funds Semi-Annual Report 23




PIMCO Municipal Income Funds 
Statements of Changes in Net Assets
Applicable to Common Shareholders


  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




PIMCO Municipal Income Funds 
Notes to Financial Statements
October 31, 2005 (unaudited)

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




PIMCO Municipal Income Funds 
Notes to Financial Statements
October 31, 2005 (unaudited)

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




PIMCO Municipal Income Funds 
Notes to Financial Statements
October 31, 2005 (unaudited)

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




PIMCO Municipal Income Funds 
Notes to Financial Statements
October 31, 2005 (unaudited)

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




PIMCO Municipal Income Funds 
Notes to Financial Statements
October 31, 2005 (unaudited)

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