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, 2007

Date of reporting period:  April 30, 2007

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. § 3507.

 

 


Item 1. Schedule of Investments

PIMCO Municipal Income Fund
PIMCO California Municipal Income Fund
PIMCO New York Municipal Income Fund
Annual Report
April 30, 2007

Contents

Letter to Shareholders 1
Performance & Statistics 2-7
Schedules of Investments 8-24
Statements of Assets and Liabilities 25
Statements of Operations 26
Statements of Changes in Net Assets 28-29
Statement of Cash Flows 30
Notes to Financial Statements 31-38
Financial Highlights 39-41
Report of Independent Registered
Public Accounting Firm
42
Tax Information/Annual Shareholder
Meeting Results/Corporate Changes
43
Privacy Policy/Proxy Voting
Policies & Procedures
44
Dividend Reinvestment Plan 45
Board of Trustees 46-47
Principal Officers 48



PIMCO Municipal Income Funds 
Letter   to Shareholders

June 13, 2007

Dear Shareholder:

We are pleased to provide you with the annual report for the PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund and PIMCO New York Municipal Income Fund (collectively, the ‘‘PIMCO Municipal Funds’’ or the ‘‘Funds’’) for the fiscal year ended April 30, 2007.

The bond market delivered positive returns during the period as economic growth moderated, although a correction in the housing market caused some weakness for bonds. The Federal Reserve left the Federal Funds rate unchanged at 5.25% through the period as inflation levels continued to track somewhat higher than the central bank’s stated comfort level.

For specific information on the Funds and their performance during the reporting period, please review the following pages. 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. In addition, a wide range of information and resources is available on our Web site, 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.

Sincerely,


   
Hans W. Kertess
Chairman
Brian S. Shlissel
President & Chief Executive Officer

4.30.07 | PIMCO Municipal Income Funds Annual Report 1




PIMCO Municipal Income Fund 
Performance & Statistics
April 30, 2007 (unaudited)

•  For the fiscal year ended April 30, 2007, PIMCO Municipal Income Fund returned 9.09% on net asset value (NAV) and 17.77% on market price, compared with 1.66% and 5.30%, respectively, for the Lipper Analytical General Municipal Debt Funds (Leveraged) average.
•  Municipal bond yields decreased for the 12 month period as the appetite for tax free municipals remained strong.
•  Interest rates for Treasuries and Libor Swaps also moved lower for the 12 month period.
•  Municipal bond issuance increased significantly during the 12 month period, supply levels stood at $428 Billion, with the largest increase coming from year-to-date 2007 where supply increased almost 40% versus the same four-month period in 2006.
•  The municipal yield curve flattened over the period: 10-year, 20-year and 30-year maturity AAA General Obligation yields decreased by 33, 34, and 44 basis points, respectively.
•  Municipal to Treasury yield ratios ended the 12 month period with 10-year ratios at 81.1% and 30-year ratios at 84.9%.
•  Long municipals underperformed long Treasuries and the taxable debt sector; the Lehman Long Municipal Bond Index returned 7.36%, while the Long Government/Credit and the Long Lehman Treasury Indices returned 10.38% and 9.76%, respectively for the 12 month period.
•  Tobacco securitization sector holdings performed well due to favorable news related to underlying tobacco companies and the advance refunding of older, higher cost debt.
•  Exposure to zero coupon municipals was positive for performance. The Lehman Zero Coupon Municipal Bond Index returned 10.01% for the period versus 7.36% for the Lehman Long Municipal Bond Index.

Total Return(1): Market Price Net Asset Value (‘‘NAV’’)
1 Year 17.77% 9.09%
3 Year 17.19% 8.72%
5 Year 11.28% 7.95%
Commencement of Operations (6/29/01) to 4/30/07 10.14% 7.55%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/07


Market Price/NAV:  
Market Price $18.00
NAV $14.85
Premium to NAV 21.21%
Market Price Yield(2) 5.42%

Moody’s Ratings
(as a % of total investments)

2 PIMCO Municipal Income Funds Annual Report | 4.30.07




PIMCO Municipal Income Fund 
Performance & Statistics
April 30, 2007 (unaudited)

(1) Past performance is no guarantee of future results. Total return is determined by subtracting the initial investment from the value at the end of the period and dividing the remainder by the initial investment 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 of less than one year is not annualized. Total return for a period of 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 equal to total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.
(2) 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, 2007.

4.30.07 | PIMCO Municipal Income Funds Annual Report 3




PIMCO California Municipal Income Fund 
Performance & Statistics
April 30, 2007 (unaudited)

•  For the 12 months ended April 30, 2007, PIMCO California Municipal Income Fund returned 9.11% on net asset value (NAV) and 18.20% on market price, compared with 1.62% and 4.69%, respectively, for the Lipper Analytical California Municipal Debt Funds average.
•  Municipal bond yields decreased for the 12 month period as the appetite for tax free municipals remained strong.
•  Interest rates for Treasuries and Libor Swaps also moved lower for the 12 month period.
•  Municipal bond issuance increased significantly during the 12 month period, supply levels stood at $428 Billion, with the largest increase coming from year-to-date 2007 where supply increased almost 40% versus the same four-month period in 2006.
•  The municipal yield curve flattened over the period: 10-year, 20-year and 30-year maturity AAA General Obligation yields decreased by 33, 34, and 44 basis points, respectively.
•  Municipal to Treasury yield ratios ended the 12 month period with 10-year ratios at 81.1% and 30-year ratios at 84.9%.
•  Long municipals underperformed long Treasuries and the taxable debt sector; the Lehman Long Municipal Bond Index returned 7.36%, while the Long Government/Credit and the Long Lehman Treasury Indices returned 10.38% and 9.76%, respectively for the 12 month period.
•  Tobacco securitization sector holdings performed well due to favorable news related to underlying tobacco companies and the advance refunding of older, higher cost debt.
•  Exposure to zero coupon municipals was positive for performance. The Lehman Zero Coupon Municipal Bond Index returned 10.01% for the period versus 7.36% for the Lehman Long Municipal Bond Index.
•  Municipal bonds within California outperformed the national index for the period. The California Index returned 6.15% versus the National Index return of 5.78%. California was the largest issuer of tax-exempt debt during the 12 months.
•  The shape of the California State AAA insured municipal yield curve flattened over the 12 months: 5-year maturity credits decreased by 7 basis points, 10-year maturities decreased by 34 basis points, and 30-year maturities decreased by 42 basis points.

Total Return(1): Market Price Net Asset Value (‘‘NAV’’)
1 Year 18.20% 9.11%
3 Year 17.38% 8.87%
5 Year 10.60% 7.90%
Commencement of Operations (6/29/01) to 4/30/07   9.53% 7.16%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/07

    


Market Price/NAV:  
Market Price $17.70
NAV $14.84
Premium to NAV 19.27%
Market Price Yield(2) 5.22%

    

4 PIMCO Municipal Income Funds Annual Report | 4.30.07




PIMCO California Municipal Income Fund 
Performance & Statistics
April 30, 2007 (unaudited)

(1) Past performance is no guarantee of future results. Total return is determined by subtracting the initial investment from the value at the end of the period and dividing the remainder by the initial investment 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 of less than one year is not annualized. Total return for a period of 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 equal to total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.
(2) 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, 2007.

4.30.07 | PIMCO Municipal Income Funds Annual Report 5




PIMCO New York Municipal Income Fund 
Performance & Statistics
April 30, 2007 (unaudited)

•  For the 12 months ended April 30, 2007, PIMCO New York Municipal Income Fund increased 8.05% on net asset value and 8.89% on market price, compared with 1.49% and 5.11%, respectively, for the Lipper Analytical New York Municipal Debt Funds average.
•  Municipal bond yields decreased for the 12 month period as the appetite for tax free municipals remained strong.
•  Interest rates for Treasuries and Libor Swaps also moved lower for the 12 month period.
•  Municipal bond issuance increased significantly during the 12 month period, supply levels stood at $428 Billion, with the largest increase coming from year-to-date 2007 where supply increased almost 40% versus the same four-month period in 2006.
•  The municipal yield curve flattened over the period: 10-year, 20-year and 30-year maturity AAA General Obligation yields decreased by 33, 34, and 44 basis points, respectively.
•  Municipal to Treasury yield ratios ended the 12 month period with 10-year ratios at 81.1% and 30-year ratios at 84.9%.
•  Long municipals underperformed long Treasuries and the taxable debt sector; the Lehman Long Municipal Bond Index returned 7.36%, while the Long Government/Credit and the Long Lehman Treasury Indices returned 10.38% and 9.76% respectively for the 12 month period.
•  Tobacco securitization sector holdings performed well due to favorable news related to underlying tobacco companies and the advance refunding of older, higher cost debt.
•  Exposure to zero coupon municipals was positive for performance. The Lehman Zero Coupon Municipal Bond Index returned 10.01% for the period versus 7.36% for the Lehman Long Municipal Bond Index.
•  Municipal bonds within New York underperformed the national index for the period. The New York Index returned 5.61% versus the National Index return of 5.78%. New York was the second largest issuer of tax-exempt debt during the 12 months.
•  The shape of the New York Insured AAA municipal yield curve flattened over the quarter: 5-year maturity AAA credits decreased by 6 basis points, 10-year maturities decreased by 32 basis points, and 30-year maturities decreased by 39 basis points.

Total Return(1): Market Price Net Asset Value (‘‘NAV’’)
1 Year   8.89% 8.05%
3 Year 12.42% 7.28%
5 Year   7.71% 6.32%
Commencement of Operations (6/29/01) to 4/30/07   6.50% 5.79%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/07

    


Market Price/NAV:  
Market Price $15.02
NAV $13.74
Premium to NAV 9.32%
Market Price Yield(2) 4.55%

6 PIMCO Municipal Income Funds Annual Report  | 4.30.07




PIMCO New York Municipal Income Fund 
Performance & Statistics
April 30, 2007 (unaudited)

(1) Past performance is no guarantee of future results. Total return is determined by subtracting the initial investment from the value at the end of the period and dividing the remainder by the initial investment 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 of less than one year is not annualized. Total return for a period of 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 equal to total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.
(2) 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, 2007.

4.30.07 | PIMCO Municipal Income Funds Annual Report  7




PIMCO Municipal Income Fund  
Schedule of Investments
April 30, 2007


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

MUNICIPAL BONDS & NOTES–95.7%

      Alabama–1.9%        
$ 2,500   Birmingham Baptist Medical Centers Special Care Facs. Financing Auth. Rev., 5.875%, 11/15/24, Ser. A Baa1/NR $ 2,649,400  
  8,000   Huntsville Health Care Auth. Rev., 5.75%, 6/1/31, Ser. A, (Pre-refunded @ $101, 6/1/11) (b) A2/NR   8,677,760  
            11,327,160  
      Alaska–1.1%        
  6,000   Northern Tobacco Securitization Corp. Rev., 5.50%, 6/1/29, (Pre-refunded @ $100, 6/1/11) (b) Aaa/AAA   6,395,760  
      Arizona–1.2%        
  2,000   Apache Cnty. Industrial Dev. Auth., Pollution Control Rev.,        
      Tucson Electric Power Co., 5.875%, 3/1/33, Ser. B Baa3/B+   2,009,700  
  1,260   Pima Cnty. Industrial Dev. Auth. Rev., 5.00%, 6/1/37 NR/BBB−   1,265,897  
  3,500   Salt River Project Agricultural Improvement & Power Dist. Rev.,        
      4.75%, 1/1/35, Ser. A Aa1/AA   3,592,330  
            6,867,927  
      Arkansas–0.6%        
  8,500   Arkansas Dev. Finance Auth. Rev., zero coupon, 7/1/36 (AMBAC) Aaa/AAA   2,282,420  
      Little Rock Municipal Property Owners Multipurpose Improvement Dist.,      
      Special Tax, Ser. A,        
  425   5.00%, 3/1/16 NR/NR   430,419  
  500   5.25%, 3/1/23 NR/NR   507,635  
            3,220,474  
      California–4.7%        
      Golden State Tobacco Securitization Corp. Rev., Ser. A-1,        
  6,000   5.00%, 6/1/33 Baa3/BBB   5,982,420  
  10,000   6.75%, 6/1/39, (Pre-refunded @ $100, 6/1/13) (b) Aaa/AAA   11,622,500  
  10,000   Riverside Cnty. Public Financing Auth., Tax Allocation,        
      4.50%, 10/1/30, Ser. A (XLCA) Aaa/AAA   9,999,600  
            27,604,520  
      Colorado–2.6%        
  600   Black Hawk Rev., 5.00%, 12/1/18 NR/NR   617,472  
      Denver Health & Hospital Auth. Healthcare Rev., Ser. A,        
  2,000   5.375%, 12/1/28 Baa3/BBB   2,020,740  
  1,000   6.00%, 12/1/23 Baa3/BBB   1,061,820  
  12,400   Health Facs. Auth. Rev., Liberty Heights, zero coupon, 7/15/24 NR/AAA   5,885,412  
  4,965   Northwest Parkway Public Highway Auth. Rev., 7.125%, 6/15/41, Ser. D B3/CCC   5,356,888  
            14,942,332  

8 PIMCO Municipal Income Funds Annual Report | 4.30.07




PIMCO Municipal Income Fund  
Schedule of Investments
April 30, 2007 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody’s/S&P)*
Value
      Connecticut–0.2%        
$ 1,000   State Dev. Auth. Pollution Control Rev., 5.85%, 9/1/28 Baa1/BBB− $ 1,043,870  
      District of Columbia–1.0%        
  5,325   Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24 Baa3/BBB   5,673,149  
      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) (b) A2/NR   9,936,720  
  500   Lee Cnty. Industrial Dev. Auth. Rev., 5.375%, 6/15/37, Ser. A NR/BB   506,395  
            10,443,115  
      Georgia–1.9%        
      Municipal Electric Auth. Power Rev. (MBIA-IBC),        
  9,700   5.50%, 1/1/20 Aaa/AAA   10,709,188  
  300   5.50%, 1/1/20, Ser. Z Aaa/AAA   332,985  
            11,042,173  
      Illinois–12.5%        
      Chicago, GO, Ser. A (FGIC),        
  2,935   5.375%, 1/1/34 Aaa/AAA   3,027,981  
  6,145   5.375%, 1/1/34, (Pre-refunded @ $101, 1/1/09) (b) Aaa/AAA   6,369,845  
  10,115   Chicago Board of Education, GO, zero coupon, 12/1/31, Ser. A (FGIC) Aaa/AAA   3,339,669  
  2,000   Chicago Water Rev., 5.25%, 11/1/27, (Pre-refunded @ $102, 11/1/07) (FGIC) (b) Aaa/AAA   2,055,020  
      Educational Facs. Auth. Rev.,        
  1,115   Midwestern Univ., 5.50%, 5/15/18, Ser. B NR/A−   1,140,623  
      Univ. of Chicago,        
  5,000   5.125%, 7/1/38 (j) NR/NR   5,100,400  
  190   5.25%, 7/1/41 Aa1/AA   199,800  
  4,810   5.25%, 7/1/41, (Pre-refunded @ $101, 7/1/11) (b) Aa1/AA   5,132,381  
      Finance Auth. Rev.,        
  1,500   5.00%, 12/1/36 NR/BBB   1,538,280  
  5,000   5.50%, 11/15/29, (Pre-refunded @ $101, 11/15/09) (b) A2/A+   5,256,250  
  1,260   5.65%, 11/15/24, (Pre-refunded @ $101, 11/15/09) (b) A2/A+   1,329,111  
      Health Facs. Auth. Rev.,        
  3,000   Decatur Memorial Hospital, 5.75%, 10/1/24 A2/A   3,170,490  
  5,425   Silver Cross Hospital, 5.50%, 8/15/25, (Pre-refunded @ $101, 8/15/09) (b) NR/A   5,687,733  
      Lake Cnty. Community High School Dist., GO, Ser. B (FGIC),        
  5,000   zero coupon, 2/1/19 Aaa/AAA   3,040,650  
  5,000   zero coupon, 2/1/20 Aaa/AAA   2,900,100  
  5,690   zero coupon, 2/1/22 Aaa/AAA   3,003,808  
  7,345   Regional Transportation Auth. Rev., 5.50%, 6/1/23, Ser. B (FGIC) Aaa/AAA   8,556,264  
  3,000   State Sales Tax Rev., 5.125%, 6/15/20, Ser. 1 Aa3/AAA   3,151,200  

4.30.07 | PIMCO Municipal Income Funds Annual Report 9




PIMCO Municipal Income Fund  
Schedule of Investments
April 30, 2007 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody’s/S&P)*
Value
      Illinois–(continued)        
      Univ. Rev. (FGIC),        
$ 1,495   5.25%, 4/1/32 Aaa/AAA $ 1,561,991  
  3,505   5.25%, 4/1/32, (Pre-refunded @ $100, 4/1/11) (b) Aaa/AAA   3,701,035  
  4,000   Winnebago-Boone ETC Cntys. Rock Valley Community College, Dist. No. 511, GO, 5.30%, 10/1/18, (Partially pre-refunded @ $100, 10/1/10) (FGIC) (b) Aaa/NR   4,175,800  
            73,438,431  
      Indiana–1.8%        
  500   Anderson Rev., 5.00%, 10/1/32 NR/NR   507,400  
  6,500   Carmel School Building Corp. Rev., 5.00%, 7/15/22, (Pre-refunded @ $101, 7/15/11) (MBIA) (b) Aaa/AAA   6,881,290  
  1,225   Richland-Bean Blossom School Building Corp. Rev., 5.00%, 1/15/22 (FGIC) Aaa/AAA   1,268,022  
  1,825   Zionsville Community Schools Building Corp. Rev., 5.00%, 7/15/27, Ser. A (FSA) NR/AAA   1,916,250  
            10,572,962  
      Kansas–3.5%        
      Wichita Hospital Rev.,        
  5,000   5.625%, 11/15/31, Ser. III NR/A+   5,298,650  
  14,370   6.25%, 11/15/24, Ser. XI NR/A+   15,271,287  
            20,569,937  
      Kentucky–0.2%        
  910   Economic Dev. Finance Auth., Hospital Facs. Rev., St. Luke’s Hospital,      
      6.00%, 10/1/19 A3/A   1,010,400  
      Louisiana–6.0%        
  4,300   Local Gov’t Environmental Facs. & Community Dev. Auth. Rev.,        
      6.55%, 9/1/25 (ACA) NR/A   4,892,153  
  27,895   Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39,
Ser. 2001-B
Baa3/BBB   29,933,288  
            34,825,441  
      Maryland–0.2%        
  1,150   Baltimore Water Project Rev., 5.125%, 7/1/42, Ser. A (FGIC) Aaa/AAA   1,200,462  
      Massachusetts–1.8%        
  10,000   Health & Educational Facs. Auth. Rev., Partners Healthcare Systems,      
      5.75%, 7/1/32, Ser. C (j) Aa2/AA   10,701,200  
      Michigan–4.6%        
      Detroit, GO, Ser. A-1 (MBIA),        
  1,000   5.375%, 4/1/15 Aaa/AAA   1,061,290  
  1,000   5.375%, 4/1/17 Aaa/AAA   1,059,630  
  5,650   Forest Hills Public Schools, GO, 5.25%, 5/1/18, (Pre-refunded @ $100, 5/1/10) (b) Aa2/NR   5,896,057  

10 PIMCO Municipal Income Funds Annual Report | 4.30.07




PIMCO Municipal Income Fund  
Schedule of Investments
April 30, 2007 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody’s/S&P)*
Value
      Michigan–(continued)        
$ 1,500   Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A NR/NR $ 1,490,490  
  3,000   Mount Clemens Community School Dist., GO, 5.00%, 5/1/31 Aa3/AA   3,106,050  
  50   Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital, 5.25%, 11/15/35, Ser. M (MBIA) Aaa/AAA   51,958  
  4,000   State Hospital Finance Auth. Rev., Detroit Medical Center, 6.25%, 8/15/13 Ba3/BB−   4,013,080  
  2,000   State Strategic Fund Ltd. Obligation Rev., Detroit Edison Pollution Control Co., 5.45%, 9/1/29 A3/BBB+   2,085,000  
  3,000   Taylor Tax Increment Finance Auth., Tax Allocation, 5.375%, 5/1/17 (FSA) Aaa/AAA   3,174,720  
  6,255   Wayne Charter Cnty. Airport Fac. Rev., 6.75%, 12/1/15 (a) (d) NR/NR   4,899,854  
            26,838,129  
      Minnesota–0.6%        
      Agricultural & Economic Dev. Board Rev., Health Care System,        
  95   6.375%, 11/15/29 A2/A   103,027  
  2,905   6.375%, 11/15/29, (Pre-refunded @ $101, 11/15/10) (b) A2/A   3,188,673  
            3,291,700  
      Missouri–0.4%        
  2,500   Interstate 470 & 350 Transportation Dev. Dist. Rev., 6.35%, 5/1/22 NR/NR   2,528,950  
      Nevada–3.5%        
  3,000   Clark Cnty. Rev., 5.25%, 7/1/34, Ser. B, (Pre-refunded @ $100, 7/1/11) (FGIC) (b) Aaa/AAA   3,177,660  
  4,250   Truckee Meadows Water Auth. Rev., 5.25%, 7/1/34, Ser. A, (Pre-refunded @ $100, 7/1/11) (FSA) (b) Aaa/AAA   4,501,685  
  12,185   Washoe Cnty., Water & Sewer, 5.00%, 1/1/35, GO (MBIA) (j) Aaa/AAA   12,876,864  
            20,556,209  
      New Hampshire–0.5%        
  3,000   State Business Finance Auth. Pollution Control Rev., Conn. Light & Power Co., 5.85%, 12/1/22 Baa1/BBB−   3,133,290  
      New Jersey–3.7%        
  16,550   Economic Dev. Auth., Kapkowski Road Landfill, Special Assessment, 5.75%, 4/1/31 Baa3/NR   18,389,532  
      Economic Dev. Auth. Rev., Arbor Glen,        
  2,510   5.875%, 5/15/16 NR/NR   2,595,742  
  450   5.875%, 5/15/16, Ser. A, (Pre-refunded @ $102, 5/15/09) (b) NR/NR   477,072  
            21,462,346  
      New Mexico–0.4%        
  2,500   Farmington Pollution Control Rev., 5.80%, 4/1/22 Baa2/BBB   2,526,600  

4.30.07 | PIMCO Municipal Income Funds Annual Report 11




PIMCO Municipal Income Fund  
Schedule of Investments
April 30, 2007 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody’s/S&P)*
Value
      New York–2.2%        
$ 5,000   Liberty Dev. Corp. Rev., Goldman Sachs Headquarters, 5.25%, 10/1/35 Aa3/AA− $ 5,720,750  
      New York City Municipal Water Finance Auth., Water & Sewer System Rev.,        
  1,120   5.00%, 6/15/37, Ser. D (j) Aa2/AA+   1,177,109  
  3,000   5.00%, 6/15/39, Ser. A Aa2/AA+   3,134,910  
  2,875   Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A Ba2/BBB−   3,002,449  
            13,035,218  
      North Carolina–0.5%        
      Capital Facs. Finance Agcy., Duke Univ. Rev., Ser. A,        
  570   5.125%, 10/1/41 Aa1/AA+   591,010  
  2,430   5.125%, 10/1/41, (Pre-refunded @ $100, 10/1/11) (b) Aaa/AAA   2,572,714  
            3,163,724  
      Ohio–1.2%        
      Lorain Cnty. Hospital Rev., Catholic Healthcare Partners,        
  2,500   5.625%, 10/1/17 Aa3/AA−   2,672,175  
  2,565   5.75%, 10/1/18 Aa3/AA−   2,748,038  
  1,235   State Turnpike Commission Rev., 5.50%, 2/15/15 Aa3/AA   1,310,051  
            6,730,264  
      Pennsylvania–3.9%        
      Allegheny Cnty.,        
  5,780   Hospital Dev. Auth. Rev., 9.25%, 11/15/30, Ser. B Ba3/B+   6,811,094  
  1,000   Industrial Dev. Auth. Rev., USX Corp., 5.60%, 9/1/30 Baa1/BBB+   1,033,110  
  1,095   Port Auth. Rev., 5.25%, 3/1/20 (FGIC) Aaa/AAA   1,158,882  
  2,575   Delaware Cnty. Auth. College Rev., Neumann College, 5.80%, 10/1/17 NR/BBB−   2,707,458  
  6,200   Higher Educational Facs. Auth. Rev., 6.00%, 1/15/31, Ser. A Aa3/A+   6,713,484  
  4,610   Philadelphia Hospitals & Higher Education Facs. Auth. Hospital Rev., Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A Baa2/BBB   4,620,926  
            23,044,954  
      Puerto Rico–2.3%        
  850   Commonwealth of Puerto Rico, GO, 5.00%, 7/1/35, Ser. B Baa3/BBB   887,408  
  1,600   Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN A3/BBB+   1,683,072  
  10,665   Gov’t Dev. Bank for Puerto Rico Rev., 5.00%, 12/1/08, Ser. B Baa3/BBB   10,840,866  
            13,411,346  
      Rhode Island–3.3%        
  18,000   Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A Baa3/BBB   19,347,299  
      South Carolina–4.6%        
      Greenwood Cnty. Hospital Rev., Self Memorial Hospital,        
  3,500   5.50%, 10/1/21 A2/A   3,681,335  
  2,000   5.50%, 10/1/26 A2/A   2,101,160  

12 PIMCO Municipal Income Funds Annual Report | 4.30.07




PIMCO Municipal Income Fund  
Schedule of Investments
April 30, 2007 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody’s/S&P)*
Value
      South Carolina–(continued)        
$ 3,000   Jobs Economic Dev. Auth. Hospital Facs. Rev., Georgetown Memorial Hospital, 5.375%, 2/1/30 (Radian) NR/AA $ 3,136,710  
  15,600   Tobacco Settlement Rev. Management Auth., 6.375%, 5/15/30, Ser. B Baa3/BBB   18,159,960  
            27,079,165  
      Tennessee–0.2%        
  940   Memphis Health Educational & Housing Fac. Rev., Wesley Housing Corp. Project, 6.95%, 1/1/20 (a) NR/NR   946,232  
      Texas–13.1%        
  1,750   Austin Convention Enterprises, Inc., 5.75%, 1/1/32, Ser. B, (Pre-refunded @ $100, 1/1/11) (b) Aaa/NR   1,870,453  
  4,000   Austin Rev., 5.25%, 5/15/31, Ser. A & B (FSA) Aaa/AAA   4,170,840  
  2,935   Bell Cnty. Health Fac. Dev. Corp. Rev., 5.25%, 11/15/19 NR/A−   2,986,333  
  10,000   Coppell Independent School Dist., GO, zero coupon, 8/15/29 (PSF-GTD) Aaa/AAA   3,645,600  
      Corpus Christi Refinance & Improvement, GO (FSA),        
  1,125   5.375%, 3/1/18 Aaa/AAA   1,187,100  
  1,740   5.375%, 3/1/18, (Pre-refunded @ $100, 3/1/11) (b) Aaa/AAA   1,843,043  
  9,000   Cypress-Fairbanks Independent School Dist., GO, 4.80%, 2/15/26, Ser. B (PSF-GTD) Aaa/AAA   9,340,920  
      Duncanville Independent School Dist., GO, Ser. B (PSF-GTD),        
  20   5.25%, 2/15/32 Aaa/AAA   21,015  
  3,660   5.25%, 2/15/32, (Pre-refunded @ $100, 2/15/12) (b) Aaa/AAA   3,904,744  
      Harris Cnty. Health Facs. Dev. Corp. Rev. (b),        
  5,000   Christus Health, 5.375%, 7/1/29, Ser. A, (Pre-refunded @ $101, 7/1/09) (MBIA) Aaa/AAA   5,219,400  
  7,000   Memorial Hermann Healthcare, 6.375%, 6/1/29,
(Pre-refunded @ $101, 6/1/11)
A2/A+   7,757,120  
  8,500   St. Lukes Episcopal Hospital, 5.375%, 2/15/26, Ser. A, (Pre-refunded @ $100, 8/15/11) (j) NR/AAA   9,051,735  
      Mansfield Independent School Dist., GO (PSF-GTD),        
  285   5.25%, 2/15/23 Aaa/AAA   297,782  
  1,715   5.25%, 2/15/23, (Pre-refunded @ $100, 2/15/11) (b) Aaa/AAA   1,807,953  
  4,380   Southlake Park Dev. Corp. Rev.,        
      5.60%, 8/15/31, (Pre-refunded @ $100, 2/15/11) (AMBAC) (b) Aaa/AAA   4,637,675  
  4,530   State, GO, 5.30%, 8/1/18, Ser. A Aa1/AA   4,740,917  
  19,990   State Turnpike Auth. Rev., zero coupon, 8/15/25, Ser. A (AMBAC) Aaa/AAA   8,924,136  
  4,920   Univ. Rev., 5.00%, 7/1/26, Ser. B, (Pre-refunded @ $100, 7/1/14) (b) Aaa/AAA   5,302,874  
            76,709,640  
      Utah–1.2%        
  7,000   Salt Lake Cnty. Hospital Rev., IHC Health Services, 5.125%, 2/15/33 (AMBAC) Aaa/AAA   7,286,720  

4.30.07 | PIMCO Municipal Income Funds Annual Report 13




PIMCO Municipal Income Fund  
Schedule of Investments
April 30, 2007 (continued)


Principal
Amount
(000)
  Credit Rating
(Moody’s/S&P)*
Value
      Washington–2.4%        
      Cowlitz Cnty. School Dist. No. 458 Kelso, GO, (Pre-refunded @ $100,
12/1/11) (FSA) (b),
     
$ 985   5.625%, 12/1/14 Aaa/NR $ 1,064,145  
  1,225   5.625%, 12/1/16 Aaa/NR   1,323,429  
  3,415   Kent, GO, 5.375%, 12/1/20 (MBIA) Aaa/AAA   3,612,489  
  5,420   King Cnty. School Dist. No. 1 Seattle, GO, 5.25%, 12/1/21, Ser. A (MBIA) Aaa/AAA   5,728,506  
      State Housing Finance Commission Rev., Skyline at First Hill, Ser. A,        
  275   5.25%, 1/1/17 NR/NR   278,515  
  2,250   5.625%, 1/1/38 NR/NR   2,304,562  
            14,311,646  
      Wisconsin–4.1%        
      Badger Tobacco Asset Securitization Corp. Rev.,        
  5,000   5.75%, 6/1/12 Baa3/BBB   5,343,850  
  9,785   6.00%, 6/1/17 Baa3/BBB   10,545,392  
  3,515   State, GO, 5.00%, 5/1/22, Ser. A (FGIC) Aaa/AAA   3,682,419  
      Wisconsin Health & Educational Facs. Auth. Rev.,        
  2,250   Divine Savior Healthcare, 5.00%, 5/1/32 NR/BBB   2,279,273  
  2,230   Kenosha Hospital & Medical Center, 5.625%, 5/15/29 NR/A   2,286,999  
            24,137,933  
      Total Municipal Bonds & Notes (cost–$523,117,738)     560,420,678  

VARIABLE RATE NOTES (c)(g)–3.7%

      Hawaii–0.3%        
  1,388   City & Cnty. of Honolulu Rev., 8.24%, 7/1/23, Ser. 400 (FGIC) (f) Aaa/NR   1,597,360  
      Illinois–0.6%        
  2,902   Cook Cnty., GO, 8.24%, 11/15/28, Ser. 458 (FGIC) (f) Aaa/NR   3,436,560  
      New York–1.8%        
      New York City Municipal Water Finance Auth., Water & Sewer System Rev.,        
  6,000   7.728%, 6/15/39 Aa2/AA2   7,206,960  
  2,600   8.460%, 6/15/26 (f) NR/AA+   3,078,400  
            10,285,360  
      Texas–0.7%        
  3,595   Harris Cnty. Health Facs. Dev. Corp. Rev., 10.12%, 7/1/29,
Ser. 357 (MBIA) (f)
Aaa/NR   4,383,743  
      Washington–0.3%        
  1,800   Seattle, GO, 8.87%, 12/15/28, Ser. 348 (f) Aa1/NR   2,007,630  
      Total Variable Rate Notes (cost–$17,858,724)     21,710,653  

14 PIMCO Municipal Income Funds Annual Report | 4.30.07




PIMCO Municipal Income Fund  
Schedule of Investments
April 30, 2007 (continued)


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

VARIABLE RATE DEMAND NOTES (g)(h)–0.4%

      Florida–0.4%        
$ 2,200   Jacksonville, Pollution Control Rev., 4.16%, 5/1/07                    
(cost–$2,200,000)
VMIG1/A-1 $ 2,200,000  

U.S. TREASURY BILLS (i)–0.2%

$ 1,230   4.945%-5.035%, 5/31/07-6/14/07 (cost–$1,222,718)     1,222,718  

RIGHTS (e)–0.0%

  Shares            
      Michigan–0.0%        
  18,009   Wayne Charter Cnty., expires 5/7/07 (cost–$0) NR/NR    
      Total Investments (cost–$544,399,180)–100.0%   $ 585,554,049  

See accompanying Notes to Financial Statements | 4.30.07 | PIMCO Municipal Income Funds Annual Report 15




PIMCO California Municipal Income Fund 
Schedule of Investments
April 30, 2007


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

CALIFORNIA MUNICIPAL BONDS & NOTES–88.9%

$ 1,000   ABAG Finance Auth. for Nonprofit Corps.,
CP, 5.375%, 2/15/19
NR/BBB $ 1,040,250  
  1,000   Rev., 5.375%, 11/15/25 (CA Mtg. Ins.) NR/A+   1,039,970  
  1,385   Alvord Unified School Dist., GO, 5.375%, 8/1/29, Ser. C (FSA) Aaa/NR   1,395,734  
  6,405   Campbell Union High School Dist., GO, 5.50%, 8/1/30 (FSA) Aaa/NR   6,770,149  
  2,250   Capistrano Unified School Dist., Special Tax, 5.75%, 9/1/29, (Pre-refunded @ $102, 9/1/09) (b) NR/NR   2,397,848  
  5,250   Central JT Powers Health Financing Auth., CP, 5.75%, 2/1/31, (Pre-refunded @ $101, 2/1/11) (b) Baa2/BBB−   5,416,268  
  4,140   Charter Oak Unified School Dist., GO, 5.00%, 7/1/28, Ser. B, (Pre-refunded @ $100, 7/1/13) (FSA) (b) Aaa/AAA   4,452,777  
      Contra Costa Cnty. Public Financing Auth., Tax Allocation,        
  2,150   5.125%, 8/1/19 NR/BBB   2,226,432  
  600   5.125%, 8/1/19, (Pre-refunded @ $102, 8/1/09) (b) NR/BBB   630,468  
  5,000   5.85%, 8/1/33 NR/BBB   5,332,700  
  2,750   CSUCI Financing Auth. Rev., 5.00%, 9/1/31, Ser. A,
(Pre-refunded @ $100, 9/1/11) (MBIA) (b)
Aaa/AAA   2,906,282  
  3,635   Cucamonga Cnty. Water Dist., CP, 5.125%, 9/1/35 (FGIC) Aaa/AAA   3,799,120  
      East Side Union High School Dist., Santa Clara Cnty., GO, Ser. E (XLCA),        
  1,985   zero coupon, 8/1/21 Aaa/AAA   1,042,859  
  1,490   zero coupon, 8/1/22 Aaa/AAA   742,810  
      El Monte, CP (AMBAC),        
  10,790   4.75%, 6/1/30 Aaa/AAA   10,965,445  
  14,425   5.25%, 1/1/34 Aaa/AAA   15,072,682  
      Foothill/Eastern Corridor Agcy., Toll Road Rev.,        
  5,000   zero coupon, 1/15/33 Baa3/BBB−   1,119,000  
  5,000   zero coupon, 1/15/34 Baa3/BBB−   1,051,300  
      Fremont Community Dist., Special Tax,        
  165   6.00%, 9/1/18 NR/NR   172,851  
  505   6.00%, 9/1/19 NR/NR   528,230  
  3,500   6.30%, 9/1/31 NR/NR   3,678,325  
      Golden State Tobacco Securitization Corp. Rev.,        
  5,000   5.00%, 6/1/33, Ser. A-1. Baa3/BBB   4,985,350  
  8,000   5.00%, 6/1/38, Ser. A (FGIC) (j) Aaa/AAA   8,389,600  
  17,500   6.25%, 6/1/33, Ser. 2003-A-1 Aaa/AAA   19,359,900  
  10,155   6.75%, 6/1/39, Ser. 2003-A-1, (Pre-refunded @ $100, 6/1/13) (b) Aaa/AAA   11,802,649  
  540   7.875%, 6/1/42, Ser. A-3, (Pre-refunded @ $100, 6/1/13) (b) Aaa/AAA   660,366  
      Health Facs. Finance Auth. Rev., Catholic Healthcare West (b),        
  875   5.00%, 7/1/28, (Partially pre-refunded @ $101, 7/1/08) A2/A   891,940  
  125   5.00%, 7/1/28, (Pre-refunded @ $101, 7/1/08) A2/A   128,266  
      Health Facs. Financing Auth. Rev.,        
  1,980   5.00%, 7/1/18 A2/A   2,018,333  
  130   5.00%, 7/1/18, (Pre-refunded @ $101, 7/1/08) (b) A2/A   133,397  

16 PIMCO Municipal Income Funds Annual Report | 4.30.07




PIMCO California Municipal Income Fund 
Schedule of Investments
April 30, 2007 (continued)


Principal
Amount
(000)
  Credit Rating  
(Moody’s/S&P)*
Value
$ 5,315   5.125%, 7/1/18 NR/BBB+ $ 5,356,032  
  3,000   5.25%, 10/1/14, Ser. B A3/AAA   3,093,000  
  6,250   Infrastructure & Economic Dev. Bank Rev., Bay Area Toll Bridges, 5.00%, 7/1/36, (Pre-refunded @ $100, 1/1/28) (AMBAC) (b) Aaa/AAA   7,000,437  
      La Quinta Redev. Agcy., Tax Allocation (AMBAC),        
  3,000   5.00%, 9/1/21 Aaa/AAA   3,160,950  
  10,000   5.10%, 9/1/31 Aaa/AAA   10,497,800  
  1,000   5.125%, 9/1/32 Aaa/AAA   1,053,900  
  1,495   Lincoln Public Financing Auth. Rev., Twelve Bridges Ltd., 6.125%, 9/2/27 NR/NR   1,542,033  
  6,250   Los Angeles Cnty. Metropolitan Transportation Auth. Rev., 4.75%, 7/1/28, Ser. B, (Pre-refunded @ $101, 7/1/09) (FSA) (b) Aaa/AAA   6,463,687  
      Los Angeles Community Redev. Agcy., Tax Allocation,        
  520   5.875%, 9/1/26 NR/NR   526,651  
  325   6.00%, 9/1/31 NR/NR   329,544  
      Los Angeles Dept. of Water & Power Rev. (FSA),        
  5,000   4.75%, 7/1/30, Ser. A (j) Aaa/AAA   5,149,750  
  10,200   5.25%, 7/1/21, Ser. A-A-1 Aaa/AAA   10,751,718  
  3,250   Los Angeles Unified School Dist., GO,
5.125%, 7/1/21, Ser. E, (Pre-refunded @ $100, 7/1/12) (MBIA) (b)
Aaa/AAA   3,481,400  
  3,500   Metropolitan Water Dist. of Southern California Rev., Water Works Rev., Ser. A,5.00%, 7/1/26, (Pre-refunded @ $101, 1/1/08) (b) Aa2/AAA   3,567,733  
  5,820   Montclair Redev. Agcy., Tax Allocation, 5.30%, 10/1/30 (MBIA) Aaa/AAA   6,195,157  
      Murrieta Valley Unified School Dist., Special Tax,
(Pre-refunded @ $102, 9/1/09) (b),
       
  195   6.30%, 9/1/18 NR/NR   210,187  
  3,535   6.50%, 9/1/31 NR/NR   3,825,966  
  6,255   Orange Cnty. Sanitation Dist., CP, 5.25%, 2/1/30 (FGIC) Aaa/AAA   6,650,879  
  1,080   Palm Springs Community Redev. Agcy., Tax Allocation, 5.50%, 8/1/21 NR/A−   1,141,646  
  1,010   Pomona Unified School Dist., GO, 6.10%, 2/1/19, Ser. A (MBIA) Aaa/AAA   1,217,696  
  1,690   Rancho Etiwanda Public Facs., Special Tax, 6.375%, 9/1/24 NR/NR   1,779,824  
      Rancho Mirage Redev. Agcy., Tax Allocation,        
  1,190   5.50%, 4/1/24 Baa1/BBB+   1,256,212  
  1,580   5.625%, 4/1/33 Baa1/BBB+   1,670,281  
      Riverside, Improvement Board Act 1915, Special Assessment,        
  500   6.15%, 9/2/19 NR/NR   531,915  
  1,350   6.375%, 9/2/26 NR/NR   1,443,069  
  8,305   Riverside Cnty., CP, 5.125%, 11/1/30 (MBIA) Aaa/AAA   8,766,675  
  575   Roseville, Woodcreek Community Facs. Dist., Special Tax, 6.375%, 9/1/27, (Pre-refunded @ $102, 9/1/10) (b) NR/NR   634,415  
      Sacramento, Special Tax,        
  2,945   5.70%, 9/1/23 NR/NR   2,992,179  
  1,350   6.10%, 9/1/21 NR/NR   1,410,574  
  2,560   6.15%, 9/1/26 NR/NR   2,671,539  

4.30.07 | PIMCO Municipal Income Funds Annual Report 17




PIMCO California Municipal Income Fund 
Schedule of Investments
April 30, 2007 (continued)


Principal
Amount
(000)
  Credit Rating  
(Moody’s/S&P)*
Value
$ 2,000   Sacramento Health Fac. Rev., 5.30%, 1/1/24, Ser. A
(CA Mtg. Ins.)
NR/A+ $ 2,043,580  
  545   San Diego Cnty., CP, 5.25%, 10/1/28 A2/NR   567,356  
  1,000   San Diego Cnty. Water Auth., CP, 5.00%, 5/1/32, Ser. A (MBIA) Aaa/AAA   1,044,160  
      San Francisco Bay Area Transit Financing Auth. Rev. (AMBAC),        
  880   5.125%, 7/1/36 Aaa/AAA   915,156  
  2,450   5.125%, 7/1/36, (Pre-refunded @ $100, 7/1/11) (b) Aaa/AAA   2,595,996  
  720   San Francisco City & Cnty. Redev. Agcy. Rev., Special Tax, 6.125%, 8/1/31 NR/NR   753,739  
  5,065   San Joaquin Cnty., CP, 5.00%, 9/1/20 (MBIA) Aaa/AAA