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: April 30, 2006
                          --------------

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. ss. 3507.

Item 1. Report to Shareholder

PIMCO Municipal Income Fund
PIMCO California Municipal Income Fund
PIMCO New York Municipal Income Fund
Annual Report
April 30, 2006

Contents

Letter to Shareholders 1
Performance & Statistics 2-4
Schedules of Investments 5-19
Statements of Assets and Liabilities 20
Statements of Operations 21
Statements of Changes in Net Assets 22-23
Notes to Financial Statements 24-30
Financial Highlights 31-33
Report of Independent Registered Public
Accounting Firm
34
Tax Information/Annual Shareholder
Meetings Results
35
Privacy Policy, Proxy Voting Policies &
Procedures
36
Dividend Reinvestment Plan 37
Board of Trustees 38-39



PIMCO Municipal Income Funds Letter to Shareholders 

June 12, 2006

Dear Shareholder:

We are pleased to provide you with the annual report for PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund and PIMCO New York Municipal Income Fund (the ‘‘Funds’’) for the fiscal year ended April 30, 2006.

During the fiscal twelve month period, the Federal Reserve raised short-term interest rates eight times for a total of 200 basis points. These actions, coupled with only modest increases in longer term rates, caused the yield curve to flatten across all fixed income sectors, including national and state-specific municipal bonds.

In this environment, the Funds were able to post positive returns. For the twelve months ended April 30, 2006, PIMCO Municipal Income Fund increased 4.63% on net asset value and 18.13% on market price, outperforming the Lipper Analytical General Municipal Debt Funds (Leveraged) average, which posted returns of 3.86% and 9.25%, respectively. PIMCO California Municipal Income Fund rose 5.62% on net asset value and 18.93% on market price, outperforming the Lipper Analytical California Municipal Debt Funds average which returned 3.85% and 10.14%, respectively. PIMCO New York Municipal Income Fund increased 3.86% on net asset value and 11.45% on market price, compared to returns of 3.88% and 8.09%, respectively for the Lipper Analytical New York Municipal Debt Funds average.

Please review the following pages for specific information on the Funds. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds' shareholder servicing agent at (800) 331-1710. You can also find a wide range of information and resources on our Web site at www.allianzinvestors.com/closedendfunds.

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

4.30.06 | PIMCO Municipal Income Funds Annual Report 1




PIMCO Municipal Income Fund 
Performance & Statistics
April 30, 2006

Symbol:

PMF

Objective:

To provide 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):

$555.9 million

Portfolio Manager:

Mark McCray


Total Return(2): Market Price Net Asset Value (‘‘NAV’’)
1 Year 18.13% 4.63%
3 Years 11.76% 8.28%
Commencement of Operations (6/29/01) to 4/30/06   8.63% 7.24%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/06


Market Price/NAV:  
Market Price $16.22
NAV $14.54
Premium to NAV 11.55%
Market Price Yield(3) 6.01%

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 Fund's dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period more than one year represents the average annual total return.
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 April 30, 2006.

2 PIMCO Municipal Income Funds Annual Report | 4.30.06




PIMCO California Municipal Income Fund 
Performance & Statistics
April 30, 2006

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):

$409.1 million

Portfolio Manager:

Mark McCray


Total Return(2): Market Price Net Asset Value (‘‘NAV’’)
1 Year 18.93% 5.62%
3 Years 10.90% 7.47%
Commencement of Operations (6/29/01) to 4/30/06 7.82% 6.77%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/06


Market Price/NAV:  
Market Price $15.87
NAV $14.48
Premium to NAV 9.60%
Market Price Yield(3) 5.82%

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 Fund's dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period more than one year represents the average annual total return.
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 April 30, 2006.

4.30.06 | PIMCO Municipal Income Funds Annual Report 3




PIMCO New York Municipal Income Fund 
Performance & Statistics
April 30, 2006

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):

$163.4 million

Portfolio Manager:

Mark McCray


Total Return(2): Market Price Net Asset Value (‘‘NAV’’)
1 Year 11.45% 3.86%
3 Years   9.34% 6.75%
Commencement of Operations (6/29/01) to 4/30/06   6.01% 5.33%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/06


Market Price/NAV:  
Market Price $14.56
NAV $13.47
Premium to NAV 8.09%
Market Price Yield(3) 5.77%

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 Fund's dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period more than one year represents the average annual total return.
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 April 30, 2006.

4 PIMCO Municipal Income Funds Annual Report  | 4.30.06




PIMCO Municipal Income Fund 
Schedule of Investments
April 30, 2006


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value

MUNICIPAL BONDS & NOTES–92.7%

 

Alabama–3.6%

   
$    2,500 Birmingham Baptist Medical Centers Special Care Facs. Financing Auth. Rev., 5.875%, 11/15/24, Ser. A Baa1/NR $    2,602,225
9,900 Daphne Special Care Facs. Financing Auth. Rev., zero coupon, 8/15/28, (Pre-refunded @ $100, 8/15/08) (a) Aaa/AAA 8,905,644
8,000 Huntsville Health Care Auth. Rev., 5.75%, 6/1/31, Ser. A A2/NR 8,357,600
      19,865,469
 

Alaska–1.1%

   
6,000 Northern Tobacco Securitization Corp. Rev., 5.50%, 6/1/29 Baa3/BBB 6,081,840
 

Arizona–1.0%

   
2,000 Apache Cnty. Industrial Dev. Auth. Rev., Pollution Control Rev., Tucson Electric Power Co., 5.875%, 3/1/33, Ser. B Ba1/B+ 2,007,680
3,500 Salt River Project Agricultural Improvement & Power Dist. Rev., 4.75%, 1/1/35, Ser. A Aa2/AA 3,513,265
      5,520,945
 

California–3.8%

   
10,000 Golden State Tobacco Securitization Corp., Tobacco Settlement Rev., 6.75%, 6/1/39, Ser. 2003-A-1 Baa3/BBB 11,139,000
10,000 Riverside Cnty. Public Financing Auth., Tax Allocation, 4.50%, 10/1/30, Ser. A (XLCA) Aaa/AAA 9,571,000
      20,710,000
 

Colorado–2.3%

   
  Denver Health & Hospital Auth. Healthcare Rev., Ser. A,    
2,000     5.375%, 12/1/28 Baa3/BBB 1,996,020
1,000     6.00%, 12/1/23 Baa3/BBB 1,055,070
12,400 Health Facs. Auth. Retirement Facs. Rev., zero coupon, 7/15/24 NR/AAA 5,137,940
4,965 Northwest Parkway Public Highway Auth. Rev., 7.125%, 6/15/41, Ser. D B3/CCC 4,586,170
      12,775,200
 

Connecticut–0.2%

   
1,000 State Dev. Auth. Pollution Control Rev., 5.85%, 9/1/28 Baa1/BBB– 1,055,510
 

District of Columbia–1.0%

   
5,325 Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24 Baa3/BBB 5,649,665
 

Florida–1.8%

   
9,000 Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System,
6.00%, 11/15/31, Ser. A, (Pre-refunded @ $101, 11/15/11) (a)
A2/A+ 10,038,330
 

Georgia–2.0%

   
  Municipal Electric Auth. Power Rev. (MBIA-IBC),    
9,700     5.50%, 1/1/20 Aaa/AAA 10,607,823
300     5.50%, 1/1/20, Ser. Z, (Pre-refunded @ $100, 1/1/13) (a) NR/AAA 329,997
      10,937,820

4.30.06 | PIMCO Municipal Income Funds Annual Report 5




PIMCO Municipal Income Fund 
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
 

Illinois–12.0%

   
  Chicago, GO, Ser. A (FGIC),    
$    2,935     5.375%, 1/1/34 Aaa/AAA $    3,059,150
6,145     5.375%, 1/1/34, (Pre-refunded @ $101, 1/1/09) (a) Aaa/AAA 6,463,803
10,115 Chicago Board of Education, GO, zero coupon, 12/1/31, Ser. A (FGIC) Aaa/AAA 2,810,554
2,000 Chicago Water Rev., 5.25%, 11/1/27, (Pre-refunded @ $102, 11/1/07) (FGIC) (a) Aaa/AAA 2,085,520
  Educational Facs. Auth. Rev.,    
1,115     Midwestern Univ., 5.50%, 5/15/18, Ser. B NR/A– 1,145,506
      Univ. of Chicago,    
190         5.25%, 7/1/41 Aa1/AA 197,581
4,810         5.25%, 7/1/41, (Pre-refunded @ $101, 7/1/11) (a) Aa1/AA 5,178,304
  Finance Auth. Rev.,    
5,000     5.50%, 11/15/29, (Pre-refunded @ $101, 11/15/09) (a) A2/A+ 5,315,450
1,260     5.65%, 11/15/24, (Pre-refunded @ $101, 11/15/09) (a) A2/A+ 1,345,680
  Health Facs. Auth. Rev.,    
3,000     Decatur Memorial Hospital, 5.75%, 10/1/24 A2/A 3,111,120
5,425     Silver Cross Hospital, 5.50%, 8/15/25, (Pre-refunded @ $101,
    8/15/09) (a)
NR/A 5,765,148
  Lake Cnty. Community High School Dist., GO, Ser. B (FGIC),    
5,000     zero coupon, 2/1/19 Aaa/AAA 2,772,850
5,000     zero coupon, 2/1/20 Aaa/AAA 2,636,850
5,690     zero coupon, 2/1/22 Aaa/AAA 2,717,146
7,345 Regional Transportation Auth. Rev., 5.50%, 6/1/23, Ser. B (FGIC) Aaa/AAA 8,326,733
3,000 State Sales Tax Rev., 5.125%, 6/15/20, Ser. 1 Aa3/AAA 3,132,060
5,000 Univ. Rev., 5.25%, 4/1/32, Ser. B (FGIC) Aaa/AAA 5,167,850
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 4,160,640
      65,391,945
 

Indiana–1.8%

   
6,500 Carmel School Building Corp. Rev., 5.00%, 7/15/22 (MBIA) Aaa/AAA 6,687,850
1,225 Richland-Bean Blossom School Building Corp. Rev., 5.00%, 1/15/22 (FGIC) Aaa/AA– 1,255,319
1,825 Zionsville Community Schools Building Corp. Rev., 5.00%, 7/15/27, Ser. A (FSA) NR/AAA 1,870,880
      9,814,049
 

Kansas–3.8%

   
  Wichita Hospital Rev.,    
5,000     5.625%, 11/15/31, Ser. III NR/A+ 5,237,450
14,370     6.25%, 11/15/24, Ser. XI NR/A+ 15,373,601
      20,611,051
 

Kentucky–0.8%

   
3,680 Economic Dev. Finance Auth. Hospital Facs. Rev., St. Luke's
Hospital, 6.00%, 10/1/19
A3/A 4,061,763

6 PIMCO Municipal Income Funds Annual Report | 4.30.06




PIMCO Municipal Income Fund 
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
 

Louisiana–6.4%

   
$    4,905 Local Gov't Environmental Facs. & Community Dev. Auth. Rev.,
6.55%, 9/1/25 (ACA)
NR/A $    5,456,665
27,895 Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B Baa3/BBB 29,255,718
      34,712,383
 

Maryland–0.2%

   
1,150 Baltimore Water Project Rev., 5.125%, 7/1/42, Ser. A (FGIC) Aaa/AAA 1,185,730
 

Massachusetts–1.9%

   
9,000 Commonwealth of Massachusetts Rev., 5.50%, 1/1/34 (FGIC) Aaa/AAA 10,331,280
 

Michigan–4.4%

   
  Detroit, GO, Ser. A-1 (MBIA),    
1,000     5.375%, 4/1/15 Aaa/AAA 1,064,770
1,000     5.375%, 4/1/17 Aaa/AAA 1,061,770
5,650 Forest Hills Public Schools, GO, 5.25%, 5/1/18, (Pre-refunded @ $100, 5/1/10) (a) Aa2/NR 5,961,654
3,000 Mount Clemens Community School Dist., GO, 5.00%, 5/1/31 Aa2/AA 3,064,980
50 Royal Oak Hospital Finance Auth. Rev., William Beaumont
Hospital, 5.25%, 11/15/35, Ser. M (MBIA)
Aaa/AAA 51,350
4,000 State Hospital Finance Auth. Rev., Detroit Medical Center, 6.25%, 8/15/13 Ba3/BB– 4,006,520
2,000 State Strategic Fund Ltd. Obligation Rev., Detroit Edison Pollution
Control Co., 5.45%, 9/1/29
A3/BBB+ 2,072,700
3,000 Taylor Tax Increment Finance Auth., 5.375%, 5/1/17 (FSA) Aaa/AAA 3,179,490
6,255 Wayne Charter Cnty. Airport Fac. Rev., 6.75%, 12/1/15 (h) NR/NR 3,445,880
      23,909,114
 

Minnesota–0.6%

   
  Agricultural & Economic Dev. Board Rev., Health Care System,    
95     6.375%, 11/15/29 A2/A 104,482
2,905     6.375%, 11/15/29, (Pre-refunded @ $101, 11/15/10) (a) A2/A 3,244,711
      3,349,193
 

Missouri–0.5%

   
2,500 Interstate 470 & 350 Transportation Dev. Dist. Rev., 6.35%, 5/1/22 NR/NR 2,539,625
 

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 3,212,130
4,250 Truckee Meadows Water Auth. Rev., 5.25%, 7/1/34, Ser. A,
(Pre-refunded @ $100, 7/1/11) (FSA) (a)
Aaa/AAA 4,399,048
      7,611,178
 

New Hampshire–0.6%

   
3,000 State Business Finance Auth. Pollution Control Rev., Conn. Light
& Power Co., 5.85%, 12/1/22
Baa1/BBB– 3,170,100

4.30.06 | PIMCO Municipal Income Funds Annual Report 7




PIMCO Municipal Income Fund 
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
 

New Jersey–4.0%

   
  Camden Cnty., Improvement Auth. Rev., Cooper Health System,    
$    240     5.60%, 2/15/07 Baa3/BBB $       240,158
875     6.00%, 2/15/27, (Pre-refunded @ $102, 2/15/07) (a) Baa3/BBB 907,340
16,550 Economic Dev. Auth., Kapkowski Landfill Project, 5.75%, 4/1/31 Baa3/NR 17,569,811
  Economic Dev. Auth. Rev., Arbor Glen,    
2,510     5.875%, 5/15/16 NR/NR 2,569,638
490     5.875%, 5/15/16, Ser. A, (Pre-refunded @ $102, 5/15/09) (a) NR/NR 528,049
      21,814,996
 

New Mexico–0.5%

   
2,500 Farmington Pollution Control Rev., 5.80%, 4/1/22 Baa2/BBB 2,534,950
 

New York–2.1%

   
5,000 Liberty Dev. Corp. Rev., Goldman Sachs Headquarters, 5.25%, 10/1/35 Aa3/A+ 5,402,100
3,000 New York City Municipal Water Finance Auth., Water & Sewer
System Rev., 5.00%, 6/15/39, Ser. A
Aa2/AA+ 3,070,170
2,875 Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A Ba2/BB 2,896,390
      11,368,660
 

North Carolina–0.6%

   
3,000 Capital Facs. Finance Agcy. Rev., Duke Univ. Project, 5.125%, 10/1/41, Ser. A Aa1/AA+ 3,078,900
 

Ohio–1.2%

   
  Lorain Cnty. Hospital Rev., Catholic Healthcare Partners,    
2,500     5.625%, 10/1/17 Aa3/AA– 2,664,450
2,565     5.75%, 10/1/18 Aa3/AA– 2,746,448
1,235 State Turnpike Commission Rev., 5.50%, 2/15/15 Aa3/AA 1,314,843
      6,725,741
 

Pennsylvania–4.2%

   
  Allegheny Cnty.,    
5,780     Hospital Dev. Auth. Rev., 9.25%, 11/15/30, Ser. B Ba3/B+ 6,900,395
1,000     Industrial Dev. Auth. Rev., USX Corp., 5.60%, 9/1/30 Baa1/BBB+ 1,030,420
1,095     Port Auth. Rev., 5.25%, 3/1/20 (FGIC) Aaa/AAA 1,154,645
2,575 Delaware Cnty. Auth. College Rev., Neumann College, 5.80%, 10/1/17 NR/BBB– 2,673,957
6,200 Higher Educational Facs. Auth. Rev., 6.00%, 1/15/31, Ser. A Aa3/A+ 6,733,138
4,610 Philadelphia Hospitals & Higher Education Facs. Hospital Rev.,    
      Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A Baa2/BBB 4,617,699
      23,110,254
 

Puerto Rico–0.3%

   
1,600 Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN A3/BBB+ 1,646,720
 

Rhode Island–3.5%

   
18,000 Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A Baa3/BBB 18,877,680

8 PIMCO Municipal Income Funds Annual Report | 4.30.06




PIMCO Municipal Income Fund 
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
 

South Carolina–4.8%

   
  Greenwood Cnty. Hospital Rev., Self Memorial Hospital,    
$    3,500     5.50%, 10/1/21 A2/A $    3,608,640
2,000     5.50%, 10/1/26 A2/A 2,063,040
3,000 Jobs Economic Dev. Auth. Hospital Facs. Rev., Georgetown
Memorial Hospital, 5.375%, 2/1/30 (Radian)
NR/AA 3,111,270
15,600 Tobacco Settlement Rev., Management Auth. Rev., 6.375%, 5/15/30, Ser. B Baa3/BBB 17,430,036
      26,212,986
 

Tennessee–0.2%

   
940 Memphis Health Educational & Housing Fac., Wesley Housing
Corp. Project, 6.95%, 1/1/20
NR/NR 894,340
 

Texas–12.2%

   
1,750 Austin Convention Enterprises, Inc., 5.75%, 1/1/32, Ser. B A3/NR 1,803,112
4,000 Austin Rev., 5.25%, 5/15/31, Ser. A & B (FSA) Aaa/AAA 4,130,080
2,935 Bell Cnty. Health Fac. Dev. Corp., 5.25%, 11/15/19 NR/A– 2,964,379
10,000 Coppell Independent School Dist., GO, zero coupon, 8/15/29 (PSF-GTD) NR/AAA 3,203,000
  Corpus Christi Refinance & Improvement, GO (FSA),    
1,125     5.375%, 3/1/18 Aaa/AAA 1,191,218
1,740     5.375%, 3/1/18, (Pre-refunded @ $100, 3/1/11) (a) Aaa/AAA 1,865,297
3,680 Duncanville Independent School Dist., GO, 5.25%, 2/15/32,
Ser. B, (Pre-refunded @ $100, 2/15/12) (PSF-GTD) (a)
Aaa/AAA 3,841,773
  Harris Cnty. Health Facs. Dev. Corp. Rev.,    
5,000     Christus Health, 5.375%, 7/1/29, Ser. A, (Pre-refunded @ $101,
    7/1/09) (MBIA) (a)
Aaa/AAA 5,296,550
7,000     Memorial Hermann Healthcare, 6.375%, 6/1/29,
    (Pre-refunded @ $101, 6/1/11) (a)
A2/A 7,889,770
1,840 Houston, CP, 6.25%, 12/15/12, Ser. J (AMBAC) Aaa/AAA 2,079,642
2,000 Mansfield Independent School Dist., GO, 5.25%, 2/15/23 (PSF-GTD) Aaa/AAA 2,090,900
4,380 Southlake Park Dev. Corp. Rev., 5.60%, 8/15/31,
(Pre-refunded @ $100, 2/15/11) (AMBAC) (a)
Aaa/AAA 4,623,484
4,530 State, GO, 5.30%, 8/1/18, Ser. A Aa1/AA 4,770,181
19,990 State Turnpike Auth. Rev., zero coupon, 8/15/25, Ser. A (AMBAC) Aaa/AAA 8,024,186
4,920 Univ. Rev., 5.00%, 7/1/26, Ser. B Aaa/AAA 5,106,615
7,450 Water Dev. Board Rev., 5.125%, 7/15/18 Aaa/AAA 7,517,646
      66,397,833
 

Utah–1.3%

   
7,000 Salt Lake Cnty. Hospital Rev., IHC Health Services, 5.125%, 2/15/33 (AMBAC) Aaa/AAA 7,195,020
 

Washington–2.3%

   
  Cowlitz Cnty. School Dist. No. 458 Kelso, GO (FSA),    
910     5.625%, 12/1/14, NR/NR 992,264
985     5.625%, 12/1/14, (Pre-refunded @ $100, 12/01/11) (a) NR/NR 1,075,590
1,225     5.625%, 12/1/16, (Pre-refunded @ $100, 12/01/11) (a) Aaa/NR 1,337,663

4.30.06 | PIMCO Municipal Income Funds Annual Report 9




PIMCO Municipal Income Fund 
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
 

Washington (continued)

   
$    3,415 Kent, GO, 5.375%, 12/1/20 (MBIA) NR/NR $    3,638,034
5,420 King Cnty. School Dist. No. 1 Seattle, GO, 5.25%, 12/1/21,
Ser. A (MBIA)
Aaa/AAA 5,700,214
      12,743,765
 

Wisconsin–4.3%

   
  Badger Tobacco Asset Securitization Corp.,    
5,000     5.75%, 6/1/12 Baa3/BBB 5,274,550
9,785     6.00%, 6/1/17 Baa3/BBB 10,276,305
3,515 State, GO, 5.00%, 5/1/22, Ser. A (FGIC) Aaa/AAA 3,647,551
2,230 State Health & Educational Facs. Auth. Rev., Kenosha Hospital &
Medical Center, 5.625%, 5/15/29
NR/A 2,270,519
2,250 Wisconsin Health & Educational Facs. Auth., Divine Savior
Healthcare Rev., 5.00%, 5/1/32
NR/BBB 2,195,640
      23,664,565
  Total Municipal Bonds & Notes (cost–$481,453,395)   505,588,600

VARIABLE RATE NOTES (b)(c)(d)–4.7%

 

Hawaii–0.3%

   
1,388 City & Cnty. of Honolulu Rev., 8.72%, 7/1/23, Ser. 400 (FGIC) Aaa/NR 1,637,097
 

Illinois–1.1%

   
2,902 Cook Cnty., GO, 8.76%, 11/15/28, Ser. 458 (FGIC) Aaa/NR 3,298,343
2,765 Educational Facs. Auth. Rev., 9.587%, 7/1/38 NR/AA 3,042,385
      6,340,728
 

Massachusetts–0.5%

   
2,000 State Health & Educational Facs. Auth. Rev., 12.762%, 7/1/32 NR/NR 2,754,000
 

Nevada–0.5%

   
2,440 Washoe Cnty., GO, 8.784%, 1/1/35, Ser. 1241 (MBIA) Aaa/AAA 2,816,029
 

New York–0.6%

   
224 New York City Municipal Water Finance Auth., Water & Sewer
System Rev., 8.87%, 6/15/37, Ser. 1226
Aa2/NR 254,475
2,600 New York City Municipal Water Finance Auth. Rev., 8.933%, 6/15/26 NR/AA+ 3,007,290
      3,261,765
 

Texas–1.3%

   
  Harris Cnty. Health Facs. Dev. Corp. Rev.,    
3,595     10.64%, 7/1/29, Ser. 357 (MBIA) Aaa/NR 4,661,097
1,720     10.754%, 2/15/26 NR/AA– 2,342,296
      7,003,393
 

Washington–0.4%

   
1,800 Seattle, GO, 9.39%, 12/15/28, Ser. 348 Aa1/NR 2,017,260
  Total Variable Rate Notes (cost–$20,842,533)   25,830,272

10 PIMCO Municipal Income Funds Annual Report | 4.30.06




PIMCO Municipal Income Fund 
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value

VARIABLE RATE DEMAND NOTES (d)(e)–2.1%

 

Alaska–0.5%

   
  Valdez Rev.,    
$    2,300     3.63%, 5/1/06 VMIG1/A-1+ $    2,300,000
200     3.77%, 5/1/06 VMIG1/A-1+ 200,000
      2,500,000
 

California–0.0%

   
220 State of California, Daily Kindergarten Univ., GO, 3.75%, 5/1/06 VMIG1/A-1+ 220,000
 

Indiana–0.0%

   
100 Indiana Health Fac. Financing Auth. Rev., 3.83%, 5/1/06 VMIG1/A-1 100,000
 

Michigan–0.8%

   
4,065 Univ. of Michigan Rev., 3.76%, 5/1/06, Ser. A VMIG1/A-1+ 4,065,000
 

New York–0.8%

   
4,600 New York City Transitional Finance Auth., 3.76%, 5/1/06, Ser. 1 VMIG1/A-1+ 4,600,000
  Total Variable Rate Demand Notes (cost–$11,485,000)   11,485,000

U.S. TREASURY BILLS (f)–0.6%

3,405 4.49%-4.58%, 6/1/06-6/15/06 (cost–$3,387,024)   3,387,024

OPTIONS PURCHASED (g)–0.0%

Contracts      
 

Put Options–0.0%

   
  Eurodollar Futures, Chicago Mercantile Exchange,    
125     strike price $92, expires 3/19/07 (cost–$1,188)   781
  Total Investments before options written (cost–$517,169,140)–100.1% 546,291,677

OPTIONS WRITTEN (g)–(0.1)%

 

Call Options–(0.0)%

   
  U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,    
700     strike price $110, expires 5/26/06   (10,938)
 

Put Options–(0.1)%

   
  U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,    
741     strike price $105, expires 5/26/06   (185,250)
700     strike price $106, expires 5/26/06   (492,187)
      (677,437)
  Total Options Written (premiums received–$544,557)   (688,375)
  Total Investments net of options written (cost–$516,624,583)–100.0% $545,603,302

See accompanying Notes to Financial Statements | 4.30.06 | PIMCO Municipal Income Funds Annual Report 11




PIMCO California Municipal Income Fund  
Schedule of Investments
April 30, 2006


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value

CALIFORNIA MUNICIPAL BONDS & NOTES–88.6%

  ABAG Finance Auth. for Nonprofit Corps.,    
$1,000 CP, 5.375%, 2/15/19 NR/BBB $    1,038,950
1,000 Rev., 5.375%, 11/15/25 (CA Mtg. Ins.) NR/A 1,043,730
1,385 Alvord Unified School Dist., GO, 5.375%, 8/1/29, Ser. C (FSA) Aaa/NR 1,396,108
8,000 California Cnty., Tobacco Settlement Rev., zero coupon, 6/1/28 Baa3/NR 6,295,360
6,405 Campbell Union High School Dist., GO, 5.50%, 8/1/30, (FSA) Aaa/NR 6,821,005
2,250 Capistrano Unified School Dist., Special Tax, 5.75%, 9/1/29,
(Pre-refunded @ $102, 9/1/09) (a)
NR/NR 2,433,622
  Carson, Improvement Board Act 1915, Special Assessment,    
3,250 6.35%, 9/2/23 NR/NR 3,356,958
5,000 6.375%, 9/2/31 NR/NR 5,163,600
5,250 Central JT Powers Health Financing Auth., CP, 5.75%, 2/1/31 Baa2/BBB– 5,336,625
4,140 Charter Oak Unified School Dist., GO, 5.00%, 7/1/28, Ser. B,
(Pre-refunded @ $100, 7/1/13) (FSA) (a)
Aaa/AAA 4,437,997
  Contra Costa Cnty. Public Financing Auth., Tax Allocation,    
2,150 5.125%, 8/1/19 NR/BBB 2,202,912
600 5.125%, 8/1/19, (Pre-refunded @ $102, 8/1/09) (a) NR/BBB 636,726
5,000 5.85%, 8/1/33 NR/BBB 5,221,250
2,750 CSUCI Financing Auth. Rev., 5.00%, 9/1/31, Ser. A (MBIA) Aaa/AAA 2,811,710
3,635 Cucamonga Cnty. Water Dist., CP, 5.125%, 9/1/35 (FGIC) Aaa/AAA 3,722,458
  East Side Union High School Dist.-Santa Clara Cnty.,
GO, Ser. E (XLCA),
   
1,985 zero coupon, 8/1/21 Aaa/AAA 918,440
1,490 zero coupon, 8/1/22 Aaa/AAA 649,223
  El Monte, CP (AMBAC),    
10,790 4.75%, 6/1/30 Aaa/AAA 10,833,052
14,425 5.25%, 1/1/34 Aaa/AAA 14,954,253
  Foothill/Eastern Corridor Agcy. Rev., Toll Road Rev.,    
5,000 zero coupon, 1/15/33 Baa3/BBB– 1,036,200
5,000 zero coupon, 1/15/34 Baa3/BBB– 974,000
  Fremont Community Dist., Special Tax,    
165 6.00%, 9/1/18 NR/NR 169,440
505 6.00%, 9/1/19 NR/NR 516,479
3,500 6.30%, 9/1/31 NR/NR 3,577,595
  Golden State Tobacco Securitization Corp. Rev.,    
17,500 6.25%, 6/1/33, Ser. 2003-A-1 Baa3/BBB 19,039,475
10,155 6.75%, 6/1/39, Ser. 2003-A-1 Baa3/BBB 11,311,654
540 7.875%, 6/1/42, Ser. A-3 Baa3/BBB 642,902
1,000 Health Facs. Finance Auth. Rev., Catholic Healthcare West,
5.00%, 7/1/28, (Pre-refunded @ $101, 7/1/08) (a)
A3/A– 967,405

12 PIMCO Municipal Income Funds Annual Report | 4.30.06




PIMCO California Municipal Income Fund  
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
  Health Facs. Financing Auth. Rev.,    
$1,980 5.00%, 7/1/18 A3/A– $    2,031,619
130 5.00%, 7/1/18, (Pre-refunded @ $101, 7/1/08) (a) A3/A– 134,949
5,315 5.125%, 7/1/18 NR/BBB+ 5,360,549
3,000 5.25%, 10/1/14, Ser. B A3/AAA 3,142,200
6,250 Infrastructure & Economic Dev. Bank Rev., Bay Area Toll Bridges,
5.00%, 7/1/36, (Pre-refunded @ $100, 1/1/28) (AMBAC) (a)
Aaa/AAA 6,688,188
  La Quinta Redev. Agcy., Tax Allocation (AMBAC),    
3,000 5.00%, 9/1/21 Aaa/AAA 3,090,690
10,000 5.10%, 9/1/31 Aaa/AAA 10,220,000
1,000 5.125%, 9/1/32 Aaa/AAA 1,032,420
1,500 Lincoln Public Financing Auth. Rev., Twelve Bridges Ltd.,
6.125%, 9/2/27
NR/NR 1,532,955
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 6,524,250
  Los Angeles Community Redev. Agcy., Tax Allocation,    
520 5.875%, 9/1/26 NR/NR 515,871
325 6.00%, 9/1/31 NR/NR 323,290
3,250 Los Angeles Unified School Dist., GO, 5.125%, 7/1/21,
Ser. E (MBIA)
Aaa/AAA 3,404,342
12,000 Los Angeles Water & Power Rev., 5.25%, 7/1/21, Ser. A-A-1 (FSA) Aaa/AAA 12,658,200
3,500 Metropolitan Water Dist. of Southern California Rev., Water
Works Rev., 5.00%, 7/1/26, Ser. A, (Pre-refunded @ $101,
1/1/08) (a)
Aa2/AAA 3,613,996
5,820 Montclair Redev. Agcy., Tax Allocation, 5.30%, 10/1/30 (MBIA) Aaa/AAA 6,159,597
  Murrieta Valley Unified School Dist., Special Tax,    
195 6.30%, 9/1/18 NR/NR 200,292
3,535 6.50%, 9/1/31 NR/NR 3,641,757
6,255 Orange Cnty. Sanitation Dist., CP, 5.25%, 2/1/30 (FGIC) Aaa/AAA 6,569,439
1,080 Palm Springs Community Redev. Agcy., Tax Allocation,
5.50%, 8/1/21
NR/A– 1,129,766
1,010 Pomona Unified School Dist., GO, 6.10%, 2/1/19, Ser. A (MBIA) Aaa/AAA 1,186,871
1,690 Rancho Etiwanda Public Facs., Special Tax, 6.375%, 9/1/24 NR/NR 1,738,148
  Rancho Mirage Redev. Agcy., Tax Allocation,    
1,190 5.50%, 4/1/24 Baa1/BBB+ 1,240,456
1,580 5.625%, 4/1/33 Baa1/BBB+ 1,641,383
  Riverside, Improvement Board Act 1915, Special Assessment,    
500 6.15%, 9/2/19 NR/NR 531,585
1,350 6.375%, 9/2/26 NR/NR 1,442,340
8,305 Riverside Cnty., CP, 5.125%, 11/1/30 (MBIA) Aaa/AAA 8,562,787
  Riverside Cnty. Public Auth. Financing, Tax Allocation,    
185 5.625%, 10/1/33 Baa2/A 189,795
815 5.625%, 10/1/33, (Pre-refunded @ $102, 10/1/06) (a) Baa2/A 837,690
575 Roseville, Woodcreek Community Fac. Dist., Special Tax,
6.375%, 9/1/27, (Pre-refunded @ $102, 9/1/10) (a)
NR/NR 645,765

4.30.06 | PIMCO Municipal Income Funds Annual Report 13




PIMCO California Municipal Income Fund  
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
  Sacramento, Special Tax,    
$2,945 5.70%, 9/1/23 NR/NR $    2,989,970
1,350 6.10%, 9/1/21 NR/NR 1,380,604
2,560 6.15%, 9/1/26 NR/NR 2,622,669
2,000 Sacramento Health Fac. Rev., 5.30%, 1/1/24, Ser. A
(CA Mtg. Ins.)
NR/A 2,054,240
545 San Diego Cnty., CP, 5.25%, 10/1/28 A2/NR 561,514
1,000 San Diego Cnty. Water Auth., CP, 5.00%, 5/1/32, Ser. A (MBIA) Aaa/AAA 1,023,150
3,330 San Francisco Bay Area Rapid Transit Dist. Rev., 5.125%, 7/1/36 (AMBAC) Aaa/AAA 3,409,287
720 San Francisco City & Cnty. Redev. Agcy. Rev., Special Tax, 6.125%, 8/1/31 NR/NR 748,822
5,065 San Joaquin Cnty., CP, 5.00%, 9/1/20 (MBIA) Aaa/AAA 5,220,698
  San Joaquin Hills Transportation Corridor Agcy. Toll Road Rev., Ser. A,    
5,000 zero coupon, 1/15/19 Ba2/B 4,753,900
5,000 5.50%, 1/15/28 Ba2/B 4,932,850
230 San Jose, Improved Board Act 1915, Special Assessment,
5.60%, 9/2/17, Ser. Q
NR/NR 237,093
5,000 San Jose Unified School Dist., Santa Clara Cnty., GO, 5.125%,
8/1/25, Ser. D, (Pre-refunded @ $101, 8/1/10) (FSA) (a)
Aaa/AAA 5,340,350
  San Juan Unified School Dist., GO (FSA),    
9,445 zero coupon, 8/1/22 Aaa/AAA 4,350,084
10,895 zero coupon, 8/1/25 Aaa/AAA 4,299,821
6,110 zero coupon, 8/1/26 Aaa/AAA 2,284,040
600 Santa Ana Financing Auth. Rev., 5.60%, 9/1/19 NR/BBB 623,502
1,815 Santa Clara, CP, 5.00%, 2/1/32 (AMBAC) Aaa/AAA 1,861,845
1,435 Santa Maria JT Union High School Dist., GO, 5.25%, 8/1/25,
Ser. A, (Pre-refunded @ $102, 8/1/15) (FSA)(a)
Aaa/AAA 1,550,116
500 State Department of Water Rev., Central Valley Project, 5.00%,
12/1/25, Ser. AC (MBIA)
Aaa/AAA 519,775
  Statewide Community Dev. Auth., CP,    
8,000 5.375%, 4/1/30 NR/BBB 7,972,880
2,325 6.50%, 7/1/20 A3/A– 2,522,486
5,675 6.50%, 7/1/20, (Pre-refunded @ $101, 7/1/10) (a) A3/A– 6,319,340
  Statewide Community Dev. Auth. Rev.,    
15,250 5.125%, 10/1/30 (CA Mtg. Ins.) NR/A 15,456,332
3,000 5.50%, 11/15/33 (CA ST Mtg.) NR/A 3,158,490
4,000 5.50%, 8/15/34, Ser. B Aa3/AA– 4,150,040
5,600 6.625%, 10/1/31 NR/NR 5,694,752
4,300 6.625%, 11/1/31 NR/NR 4,292,088
2,550 6.75%, 6/1/28 NR/NR 2,638,179
  Tobacco Securitization Auth. Rev., Ser. A,
(Pre-refunded @ $100, 6/1/11) (a)
   
1,500 5.25%, 6/1/31 Aaa/AAA 1,608,120
9,300 5.375%, 6/1/41 Aaa/AAA 10,023,726

14 PIMCO Municipal Income Funds Annual Report | 4.30.06




PIMCO California Municipal Income Fund  
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
$1,650 Town of Apple Valley, CP, 5.375%, 6/1/21 (CA Mtg. Ins.) NR/A $    1,731,329
  Tustin Unified School Dist., Special Tax,    
2,345 5.50%, 9/1/22 NR/NR 2,337,308
2,520 5.60%, 9/1/29 NR/NR 2,538,598
2,000 5.625%, 9/1/32 NR/NR 2,012,340
  University Rev.,    
10,000 5.00%, 5/15/36, Ser. A (AMBAC) Aaa/AAA 10,219,800
7,000 5.125%, 9/1/31, Ser. O (FGIC) Aaa/AAA 7,272,370
3,750 West Kern Cnty. Water Dist., CP, 5.625%, 6/1/31,
(Pre-refunded @ $101, 6/1/10) (a)
Baa2/NR 4,053,075
  Total California Municipal Bonds & Notes (cost–$337,181,089)   358,265,902

OTHER MUNICIPAL BONDS & NOTES–8.8%

  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 2,608,724
  Illinois–1.4%    
  Educational Facs. Auth. Rev., Univ. of Chicago,    
5,260 5.00%, 7/1/33 Aa1/AA 5,393,288
240     5.00%, 7/1/33, (Pre-refunded @ $100, 7/1/13) (a) Aa1/AA 255,727
      5,649,015
  Iowa–2.0%    
8,700 Tobacco Settlement Auth. Rev., zero coupon, 6/1/34, Ser. B Baa3/BBB 8,101,788
  Louisiana–0.5%    
1,750 Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001B Baa3/BBB 1,835,365
  New Jersey–1.6%    
  Tobacco Settlement Financing Corp. Rev.,    
1,685 6.00%, 6/1/37 Baa3/BBB 1,762,426
2,210 6.125%, 6/1/42 Baa3/BBB 2,322,290
2,315 6.375%, 6/1/32 Baa3/BBB 2,518,488
      6,603,204
  New York–0.6%    
2,000 State Dormitory Auth. Rev., 6.25%, 8/15/15 (FHA) Aa2/AAA 2,261,920
  Puerto Rico–1.6%    
  Electric Power Auth., Power Rev.,    
1,250 5.125%, 7/1/29, Ser. NN A3/BBB+ 1,286,500
5,000 5.25%, 7/1/29, Ser. HH (FSA) Aaa/AAA 5,299,250
      6,585,750
  Rhode Island–0.4%    
1,500 Tobacco Settlement Financing Corp. Rev., 6.125%, 6/1/32, Ser. A Baa3/BBB 1,571,445

4.30.06 | PIMCO Municipal Income Funds Annual Report 15




PIMCO California Municipal Income Fund  
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
  South Carolina–0.1%    
$     340 Tobacco Settlement Rev. Management Auth.,
6.375%, 5/15/30, Ser. B
Baa3/BBB $379,886
  Total Other Municipal Bonds & Notes (cost–$33,106,099)   35,597,097
       

CALIFORNIA VARIABLE RATE NOTES (b)(c)(d)–2.2%

4,001 Los Angeles Wastewater System Rev., 8.88%, 6/1/28, Ser. 318 (FGIC) Aaa/NR 4,762,390
1,000 Los Angeles Water & Power Rev., 7.66%, 7/1/30, Ser. 1243 (FSA) Aaa/AAA 1,047,800
1,000 Sacramento Cnty. Sanitation Dist. Rev., 8.652%, 8/1/13, Ser. 1034 (MBIA) Aa/AAA 1,175,550
2,000 University Rev., 7.64%, 5/15/35, Ser. 1119 (FSA) NR/AAA 2,019,700
  Total California Variable Rate Notes (cost–$8,148,232)   9,005,440

U.S. TREASURY BILLS (f)–0.4%

1,650 4.46%-4.58%, 6/1/06-6/15/06 (cost–$1,640,827)   1,640,827
  Total Investments before options written (cost–$380,076,247)–100.0% 404,509,266

OPTIONS WRITTEN (g)–(0.0)%

Contracts      
  Call Options–(0.0)%    
  U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,    
190 strike price $110, expires 5/26/06   (2,969)
       
  Put Options–(0.0)%    
  U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,    
175 strike price $105, expires 5/26/06   (43,750)
190 strike price $106, expires 5/26/06   (133,593)
      (177,343)
  Total Options Written (premiums received–$139,915)   (180,312)
  Total Investments net of options written (cost–$379,936,332)–100.0% $404,328,954

16 PIMCO Municipal Income Funds Annual Report | 4.30.06 | See accompanying Notes to Financial Statements




PIMCO New York Municipal Income Fund 
Schedule of Investments
April 30, 2006


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value

NEW YORK MUNICIPAL BONDS & NOTES–79.1%

$3,265 Albany Industrial Dev. Agcy. Civic Fac. Rev., 5.30%, 4/1/29, Ser. A Baa3/NR $  3,352,371
1,600 Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., 6.00%, 11/15/36 NR/NR 1,655,648
1,000 Long Island Power Auth. Electric System Rev., 5.375%, 5/1/33, Ser. L A3/A– 1,041,470
  Metropolitan Transportation Auth. NY Service Contract Rev., Ser. A,    
6,040 5.00%, 7/1/25 (FGIC) Aaa/AAA 6,256,474
8,150 5.00%, 7/1/30 (AMBAC) Aaa/AAA 8,375,511
1,375 5.125%, 1/1/29 A1/AA– 1,427,456
1,500 Monroe Tobacco Asset Securitization Corp., Tobacco Settlement Rev.,
6.375%, 6/1/35, (Pre-refunded @ $101, 6/1/10) (a)
Aaa/AAA 1,666,455
  New York City, GO, Ser. J,    
4,945 5.125%, 5/15/29 (MBIA) AAA/AAA 5,127,520
55 5.125%, 5/15/29, (Pre-refunded @ $101, 5/15/09) (MBIA)(a) AAA/AAA 57,802
300 5.25%, 6/1/28 A1/A+ 314,238
  New York City Municipal Water Finance Auth., Water & Sewer System Rev.,    
7,605 4.75%, 6/15/31, Ser. A (FGIC) Aaa/AAA 7,632,986
7,000 5.125%, 6/15/21, Ser. A (AMBAC-TCRS) Aaa/AAA 7,171,150
5,000 5.125%, 6/15/33, Ser. C Aa2/AA+ 5,181,450
5,000 5.25%, 6/15/25, Ser. D Aa2/AA+ 5,296,250
2,250 New York City Transitional Finance Auth. Rev., 4.75%, 11/15/23, Ser. B Aa1/AAA 2,279,610
130 New York Cntys. Tobacco Trust II Rev., 5.75%, 6/1/43 Ba1/BBB 132,729
1,000 Niagara Falls Public Water Auth., Water & Sewer System Rev.,
5.00%, 7/15/34, Ser. A (MBIA)
Aaa/AAA 1,030,390
  Port Auth. of New York & New Jersey Rev., Ser. 132,    
3,000 5.00%, 9/1/29 A1/AA– 3,094,590
5,000 5.00%, 9/1/38 A1/AA– 5,134,700
4,515 Sachem Central School Dist. of Holbrook, GO, 5.00%, 10/15/30, Ser. B (MBIA) Aaa/AAA 4,670,903
6,550 State Dormitory Auth. Lease Rev., 4.75%, 1/15/29, Ser. 1 (FSA) Aaa/AAA 6,593,426
  State Dormitory Auth. Rev.,    
  Augustana Lutheran Home for the Aged, Inc. (MBIA-FHA),    
100 5.40%, 2/1/31 Aaa/AAA 105,476
1,435 5.50%, 2/1/41 Aaa/AAA 1,516,723
3,850 Lenox Hill Hospital, Obligation Group, 5.50%, 7/1/30 Ba2/NR 3,718,484
  Mental Health Services Facs. Improvement, Ser. D (MBIA),    
7,985 4.75%, 2/15/25 Aaa/AAA 8,035,944
15 4.75%, 2/15/25, (Pre-refunded @ $100, 8/15/08) (a) Aaa/AAA 15,496
1,825 Mount Sinai Health, 6.50%, 7/1/25, Ser. A Ba1/BB 1,950,341
7,000 NY & Presbyterian Hospital Rev., 4.75%, 8/1/27 (AMBAC-FHA) Aaa/AAA 7,061,600
445 NY Univ., 5.50%, 7/1/21, Ser. 2 (AMBAC) Aaa/AAA 474,966
4,000 Sloan-Kettering Center Mem., 5.00%, 7/1/34, Ser. 1 Aa2/AA 4,067,120
1,275 Winthrop Univ. Hospital Assoc., 5.25%, 7/1/31, Ser. A (AMBAC) Aaa/AAA 1,339,872

4.30.06 | PIMCO Municipal Income Funds Annual Report 17




PIMCO New York Municipal Income Fund 
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
  State Dormitory Auth. State Univ., GO (FSA-CR)(a)    
$1,270 4.75%, 5/15/28, (Pre-refunded @ $101, 5/15/08) Aaa/AAA $    1,308,926
1,045 4.75%, 5/15/28, Ser. B, (Pre-refunded @ $101, 5/15/08) Aaa/AAA 1,077,029
5,000 State Thruway Auth. General Rev., 4.75%, 1/1/19, Ser. E Aa3/AA– 5,083,650
3,975 State Urban Dev. Corp. Rev. Correctional Fac. Service, 4.75%, 1/1/28,
Ser. B, (Pre-refunded @ $101, 1/1/09) (AMBAC)(a)
Aaa/AAA 4,120,843
  Triborough Bridge & Tunnel Auth. Rev., Ser. A,    
2,000 5.00%, 1/1/27 Aa2/AA– 2,055,400
755 5.00%, 1/1/32 Aa2/AA– 772,501
4,245 5.00%, 1/1/32, (Pre-refunded @ $100, 1/1/12) (a) Aa2/AA– 4,506,492
2,945 Warren & Washington Cntys. Industrial Dev. Agcy. Rev., Glens Falls
Hospital Project Rev., 5.00%, 12/1/27, Ser. C (FSA)
Aaa/AAA 3,059,649
  Total New York Municipal Bonds & Notes (cost–$121,675,362)   127,763,641

OTHER MUNICIPAL BONDS & NOTES–9.4%

 

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 1,079,472
 

California–1.0%

   
2,000 California Cnty., Tobacco Settlement Rev., zero coupon, 6/1/28 Baa3/NR 1,573,840
 

Illinois–2.5%

   
  Educational Facs. Auth. Rev.,    
3,825 5.00%, 7/1/33 Aa1/AA 3,921,925
175 5.00%, 7/1/33, (Pre-refunded @ $100, 7/1/13) (a) Aa1/AA 186,468
      4,108,393
 

Louisiana–0.5%

   
750 Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B Baa3/BBB 786,585
 

Nevada–3.4%

   
5,500 Truckee Meadows Water Auth. Rev., 4.75%, 7/1/31, Ser. A (MBIA) Aaa/AAA 5,499,670
 

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/AAA 1,620,105
500 Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN A3/BBB+ 514,600
      2,134,705
  Total Other Municipal Bonds & Notes (cost–$14,724,144)   15,182,665

NEW YORK VARIABLE RATE NOTES (b)(c)(d)–10.5%

2,078 Liberty Dev. Corp. Rev., 12.153%, 10/1/35, Ser. 1251 Aa3/NR 3,192,099
2,173 New York City Transitional Finance Auth. Rev., 7.42%, 11/1/23, Ser. 362 Aa1/NR 2,337,914

18 PIMCO Municipal Income Funds Annual Report | 4.30.06




PIMCO New York Municipal Income Fund 
Schedule of Investments
April 30, 2006 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody's/S&P)*
Value
  New York Cntys. Tobacco Trust II Rev.,    
$4,240 6.976%, 6/1/35 NR/NR $4,419,055
6,780 7.214%, 6/1/43 NR/NR 7,052,827
  Total New York Variable Rate Notes (cost–$16,915,269)   17,001,895

OTHER VARIABLE RATE NOTES–0.9%

 

Puerto Rico–0.9%

   
1,300 Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A (cost—$1,382,840) Baa3/BBB– 1,394,952

U.S. TREASURY BILLS (f)–0.1%

250 4.49%-4.55%, 6/15/06 (cost–$248,590)   248,590
  Total Investments (cost–$154,946,205)–100.0%   $161,591,743

Notes to Schedule of Investments:

* Unaudited
(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 Municipal Bonds (‘‘RIBS’’)/Residual Interest Tax Exempt Bonds (‘‘RITES’’) – 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). The interest rate disclosed reflects the rate in effect on April 30, 2006.
(e) Maturity date shown is date of next put.
(f) All or partial amount segregated as collateral for futures contracts and/or options written.
(g) Non-income producing.
(h) Security in default.

Glossary:

ACA – insured by 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
IBC – Insurance Bond Certificate
MBIA – insured by Municipal Bond Investors Assurance
NR – Not Rated
PSF-GTD – Permanent School Fund Guaranteed
Radian – insured by Radian Guaranty, Inc.
TCRS – Temporary Custodian Receipts
XLCA – insured by XL Capital Assurance

See accompanying Notes to Financial Statements | 4.30.06 | PIMCO Municipal Income Funds Annual Report 19




PIMCO Municipal Income Funds 
Statements of Assets and Liabilities
April 30, 2006


  Municipal   California  
Municipal  
New York  
Municipal  
Assets:      
Investments, at value (cost–$517,169,140, $380,076,247 and $154,946,205, respectively) $546,291,677 $404,509,266 $161,591,743
Cash 2,376,181 720,223
Interest receivable 10,030,533 5,745,069 2,662,269
Receivable for investments sold 285,000
Receivable for variation margin on futures contracts 63,800 57,797 8,700
Prepaid expenses 25,489 23,184 20,749
Total Assets 559,072,680 411,055,539 164,283,461
Liabilities:      
Dividends payable to common and preferred shareholders 2,088,467 1,460,809 552,709
Options written, at value (premiums received–$544,557, $139,915, and $0) 688,375 180,312
Accrued expenses 206,985 135,410 41,957
Investment management fees payable 205,789 151,584 60,506
Payable to custodian 256,711
Payable for variation margin on futures contracts 6,250 4,375
Total Liabilities 3,195,866 1,928,115 916,258
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 $355,876,814 $259,127,424 $100,367,203
Composition of Net Assets Applicable to
Common Shareholders:
     
Common Stock (no par value):
Paid-in-capital
$347,577,024 $254,071,197 $105,568,018
Undistributed (dividends in excess of) net investment income 6,967,363 3,392,769 (85,794)
Accumulated net realized loss (27,309,517) (22,145,273) (11,870,772)
Net unrealized appreciation of investments, futures contracts and options written 28,641,944 23,808,731 6,755,751
Net Assets Applicable to Common Shareholders $355,876,814 $259,127,424 $100,367,203
Common Shares Outstanding 24,473,102 17,900,557 7,452,004
Net Asset Value Per Common Share $14.54 $14.48 $13.47

20 PIMCO Municipal Income Funds Annual Report | 4.30.06 | See accompanying Notes to Financial Statements




PIMCO Municipal Income Funds 
Statements of Operations
For the year ended April 30, 2006


  Municipal   California  
Municipal  
New York  
Municipal  
Investment Income:      
Interest $30,336,028 $21,443,921 $8,309,782
Expenses:      
Investment management fees 3,655,808 2,680,032 1,074,078
Auction agent fees and commissions 522,953 391,426 167,298
Custodian and accounting agent fees 193,313 127,190 63,134
Reports to shareholders 120,210 63,505 33,925
Audit and tax services 74,485 55,961 28,675
Transfer agent fees 35,784 35,086 33,850
Trustees' fees and expenses 31,340 22,061 6,475
New York Stock Exchange listing fees 20,895 20,610 20,680
Insurance expense 14,525 11,020 5,736
Legal fees 9,760 8,536 3,150
Investor relations 5,358 4,767 1,468
Miscellaneous 9,825 9,855 8,509
Total expenses 4,694,256 3,430,049 1,446,978
Less: investment management fees waived (1,124,863) (824,627) (330,485)
  custody credits earned on cash balances (72,801) (27,774) (12,734)
Net expenses 3,496,592 2,577,648 1,103,759
Net Investment Income 26,839,436 18,866,273 7,206,023
Realized and Change in Unrealized Gain (Loss):      
Net realized gain (loss) on:      
Investments 1,610,105 828,861 456,098
Futures contracts (4,032,780) (2,494,601) (1,149,247)
Options written 2,020,474 1,282,283 515,254
Net change in unrealized appreciation/depreciation of:
Investments
(7,139,724) (1,877,388) (2,386,926)
Futures contracts 1,208,225 561,297 655,838
Options written 1,221,374 775,184 185,961
Net realized and change in unrealized loss on investments, futures contracts and options written