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  
  811-21077
   
PIMCO California Municipal Income Fund II
(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:     May 31, 2008  
     
Date of reporting period:     May 31, 2008  

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. REPORT TO SHAREHOLDERS



PIMCO Municipal Income Fund II
PIMCO California Municipal Income Fund II
PIMCO New York Municipal Income Fund II

 

 

Annual Report
May 31, 2008

 

 

 

 


 

 

Contents

 

Letter to Shareholders

1

 

Fund Insights/Performance & Statistics

2-4

 

Schedules of Investments

5-25

 

Statements of Assets and Liabilities

26

 

Statements of Operations

27

 

Statements of Changes in Net Assets

28-29

 

Statements of Cash Flows

30-31

 

Notes to Financial Statements

32-39

 

Financial Highlights

40-42

 

Report of Independent Registered Public
Accounting Firm

43

 

Tax Information/Annual Shareholder Meetings Results/
Appointment of New Trustee

44

 

Privacy Policy/Proxy Voting Policies & Procedures

45

 

Dividend Reinvestment Plan

46

 

Board of Trustees

47-48

 

Principal Officers

49

 

 

 

 

 

 


 

 



 

 

PIMCO Municipal Income Funds II Letter to Shareholders

 

 

July 15, 2008

Dear Shareholder:

We are pleased to provide you with the annual report for PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II and PIMCO New York Municipal Income Fund II (the “Funds”) for the fiscal year ended May 31, 2008.

As economic growth slowed and credit conditions tightened during the period, the U.S. bond market delivered positive returns for all but U.S. high yield bonds. The Lehman Municipal Bond Index posted a 3.87% tax-advantaged return. The Federal Reserve (the “Fed”) reduced the Federal Funds rate seven times during the reporting period, reducing the benchmark rate on loans between member banks from 5.25% to 2.0%. The Fed also sought other methods to inject liquidity into the economy.

Since February 2008, industry-wide developments in the auction-rate preferred markets have caused auctions for the Funds’ auction-rate preferred shares (“ARPS”) to fail, as described in Note 5 in the accompanying Notes to Financial Statements. At the time this report is being prepared, it is not possible to predict how and when full or partial liquidity will return, if at all, to the closed-end fund ARPS market. Additional information regarding ARPS, failed auctions and potential solutions to address the unprecedented lack of liquidity of the ARPS due to recent failed auctions can be accessed on our Web site, www.allianzinvestors.com/arps.

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. You will also find 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 (“PIMCO”), the Funds’ sub-adviser, we thank you for investing with us.

We remain dedicated to serving your investment needs.

 

Sincerely,

 



Hans W. Kertess

Brian S. Shlissel

Chairman

President & Chief Executive Officer

 

 

5.31.08 | PIMCO Municipal Income Funds II Annual Report 1

 


PIMCO Municipal Income Fund II Fund Insights/Performance & Statistics

May 31, 2008 (unaudited)

 

For the fiscal year ended May 31, 2008, PIMCO Municipal Income Fund II returned (2.75)% on net asset value and (3.09)% on market price, compared to (1.78)% and (3.56)%, respectively for the Lipper Analytical General Municipal Debt Funds Leveraged (the “Benchmark”) average.

The Fund’s average credit quality was AA- at fiscal year-end compared to the Benchmark’s average of AA1/AA2.

Municipal Securities underperformed Treasuries and the taxable debt sector during the reporting period as the Lehman Brothers Municipal Bond Index

 

returned 3.87%, while the Lehman Brothers Aggregate and the Lehman Brothers Treasury Indices returned 6.89% and 9.81%, respectively.

For the 12-month period ended May 31, 2008, 10-year AAA muni yields decreased 27 basis points, while 20-and 30-year AAA muni yields increased 14 and 26 basis points, respectively.

The Fund’s effective duration was managed below that of its Benchmark throughout the period, which was positive for performance, as municipal yields decreased in the short maturities, and increased in the longer

 

maturities during the reporting period.

Exposure to the prerefunded and special tax sectors were positive for performance as these sectors outperformed during the reporting period.

Exposure to the hospital sector detracted from performance as this sector underperformed during the fiscal year.

The Fund’s Hedging strategies detracted from performance as municipals underperformed Treasuries during the twelve-month reporting period.

 

Total Return(1):

 

Market Price

 

Net Asset Value (“NAV”)

1 Year

 

(3.09)%

 

(2.75)%

3 Year

 

3.86%

 

3.65%

5 Year

 

5.48%

 

5.24%

Commencement of Operations (6/28/02) to 5/31/08

 

5.50%

 

5.95%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 5/31/08

 

Market Price

NAV

$16.00

15.50

15.00

14.50

14.00

13.50

13.00

12.50

6/28/02

5/31/08


Market Price/NAV:

 

Market Price

$14.14

NAV

$13.86

Premium to NAV

2.02%

Market Price Yield(2)

5.52%


 

 

(1) Past performance is no guarantee of future results. Returns are calculated by determining the percentage change in net asset value or market share price (as applicable) in the period covered. The calculation assumes that all of the Fund’s income dividends and capital gain distributions have been reinvested. Total return does not reflect broker commissions or sales charges. Total return for a period of more than one year represents the average annual total return.


The Fund’s performance at market price will differ from its results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the Fund, market conditions, supply and demand for the Fund’s shares, or changes in Fund distributions.


An investment in the Fund involves risk, including the loss of principal. Total return, market price, market 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. 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 attributable 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 (comprised from net investment income) payable to common shareholders by the market price per common share at May 31, 2008.

 

 

2 PIMCO Municipal Income Funds II Annual Report | 5.31.08


PIMCO California Municipal Income Fund II Fund Insights/Performance & Statistics

May 31, 2008 (unaudited)

 

For the fiscal year ended May 31, 2008, PIMCO California Municipal Income Fund II returned (4.83)% on net asset value and (5.17)% on market price, compared to (0.40)% and (4.24)%, respectively for the Lipper California Municipal Debt Funds—Leveraged (the “Benchmark”) average.

The Fund’s average credit quality was AA- at fiscal year-end compared to the Benchmark’s average of AA1/AA2.

Municipals underperformed Treasuries and the taxable debt sector during the reporting period as Lehman Brothers

 

California Municipal Index returned 3.04%, while the Lehman Brothers Aggregate and the Lehman Brothers Treasury Indices returned 6.89% and 9.81%, respectively.

For the 12-month period ended May 31, 2008, 10-year California muni yields increased 2 basis points, while 20- and 30-year yields increased 39 and 48 basis points, respectively.

The Fund’s effective duration was managed below that of its Benchmark throughout the period, which performance, as municipal yields

 

increased in the longer maturities while decreasing in the shorter maturities.

Exposure to tobacco-securitized municipals detracted from performance as the over-all index returned (4.45)% during the reporting period.

California Municipals slightly underperformed the broader national market for the 12-month period.

The Fund’s Hedging strategy detracted from performance as municipals underperformed Treasuries during the reporting period.

 

Total Return(1):

 

Market Price

 

Net Asset Value (“NAV”)

1 Year

 

(5.17)%

 

(4.83)%

3 Year

 

4.89%

 

3.03%

5 Year

 

5.73%

 

4.55%

Commencement of Operations (6/28/02) to 5/31/08

 

5.55%

 

5.22%

 

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 5/31/08

 

Market Price

NAV

$17.00

16.00

15.00

14.00

13.00

12.00

11.00

6/28/02

5/31/08

Market Price/NAV:

 

Market Price

$ 14.25

NAV

$ 13.34

Premium to NAV

6.82%

Market Price Yield(2)

5.89%


(1) Past performance is no guarantee of future result. Returns are calculated by determining the percentage change in net asset value or market share price (as applicable) in the period covered. The calculation assumes that all of the Fund’s income dividends have been reinvested. Total return does not reflect broker commissions or sales charges. Total return for a period of more than one year represents the average annual total return.


The Fund’s performance at market price will differ from its results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the Fund, market conditions, supply and demand for the Fund’s shares, or changes in Fund distributions.


An investment in the Fund involves risk, including the loss of principal. Total return, market price, market 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. 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 attributable 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 (comprised from net investment income) payable to common shareholders by the market price per common share at May 31, 2008.

 

 

5.31.08 | PIMCO Municipal Income Funds II Annual Report 3

 


PIMCO New York Municipal Income Fund II Fund Insights/Performance & Statistics

May 31, 2008 (unaudited)

 

For the fiscal year ended May 31, 2008, PIMCO New York Municipal Income Fund II returned (2.19)% on net asset value and (1.46)% on market price, compared to 0.13% and (3.01)%, respectively for the Lipper New York Municipal Debt Funds— Leveraged (the “Benchmark”) average.

The Fund’s average credit quality was AA at fiscal year-end compared to the Benchmark’s average of AA1/AA2.

Municipals underperformed Treasuries and the taxable debt sector during the reporting period the Lehman Brothers

 

New York Muni Index returned 4.44%, while the Lehman Brothers Aggregate and the Lehman Brothers Treasury Indices returned 6.89% and 9.81%, respectively.

For the 12-month period, 10-year New York yields decreased 28 basis points, while 20- and 30-year New York yields increased 12 and 24 basis points, respectively.

The Fund’s effective duration was managed below that of its Benchmark throughout the period, which was positive for performance, as municipal

 

yields decreased in the short-end and increased in the longer maturities.

Exposure to hospital bonds detracted from performance as this sector underperformed for the fiscal year.

Municipal bonds within New York outperformed the broader national market during the reporting period.

The Fund’s Hedging strategies detracted from performance as municipals underperformed Treasuries during the twelve-month reporting period.

 

Total Return(1):

Market Price

 

Net Asset Value (“NAV”)

1 Year

 

(1.46)%

 

(2.19)%

3 Year

 

4.98%

 

3.58%

5 Year

 

5.91%

 

5.19%

Commencement of Operations (6/28/02) to 5/31/08

 

5.62%

 

5.50%

 

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 5/31/08

 

Market Price

NAV

$16.50

16.00

15.50

15.00

14.50

14.00

13.50

13.00

6/28/02

5/31/08

12.50

12.00

 

Market Price/NAV:

 

Market Price

$ 14.42

NAV

$ 13.67

Premium to NAV

5.49%

Market Price Yield(2)

5.51%

 


 

 

 

 

(1) Past performance is no guarantee of future results. Returns are calculated by determining the percentage change in the net asset value or market share price (as applicable) in the period covered. The calculation assumes that all of the Fund’s income dividends have been reinvested. 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.

The Fund’s performance at market price will differ from its results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the Fund, market conditions, supply and demand for the Fund’s shares, or changes in Fund distributions.

An investment in the Fund involves risk, including the loss of principal. Total return, market price, market 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. 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 attributable 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 (comprised from net investment income) payable to common shareholders by the market price per common share at May 31, 2008.

 

 

4 PIMCO Municipal Income Funds II Annual Report | 5.31.08

 


PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 
 
 

 

 
 
 

Credit Rating
(Moody’s/S&P)*

 
 
 

Value

 
 
 

MUNICIPAL BONDS & NOTES—96.0%

 

 

 

 

 

 

 

 

            

Alabama—3.5%

 

 

 

 

 

 

$

10,000

 

Birmingham Baptist Medical Centers Special Care Facs. Financing Auth. Rev, 5.00%, 11/15/30, Ser. A

      

Baa1/NR

            

$

8,752,800

 

 

18,000

 

Birmingham Waterworks & Sewer Board Rev., 5.25%, 1/1/33, Ser. B, (Pre-refunded @ $100, 1/1/13) (MBIA)(b)(h)

 

Aaa/AAA

 

 

19,678,680

 

 

1,750

 

Huntsville Health Care Auth. Rev., 5.75%, 6/1/32, Ser. B, (Pre-refunded @$101, 6/1/12) (b)

 

A2/NR

 

 

1,936,935

 

 

16,580

 

Jefferson Cnty. Sewer Rev., 4.75%, 2/1/38, Ser. B, (Pre-refunded @ $100, 8/1/12) (FGIC)(b)

 

Aaa/AAA

 

 

17,427,238

 

 

2,650

 

Tuscaloosa Educational Building Auth. Rev., Stillman College, 5.00%, 6/1/26

 

NR/BBB-

 

 

2,305,474

 

 

 

 

 

 

 

 

 

50,101,127

 

 

 

 

Alaska—0.6%

 

 

 

 

 

 

 

5,900

 

Northern Tobacco Securitization Corp. Rev., 5.00%, 6/1/46, Ser. A

 

Baa3/NR

 

 

4,491,198

 

 

3,550

 

State Housing Finance Corp. Rev., 5.25%, 6/1/32, Ser. C (MBIA)

 

Aaa/AAA

 

 

3,586,707

 

 

 

 

 

 

 

 

 

8,077,905

 

 

 

 

Arizona—5.7%

 

 

 

 

 

 

 

 

 

Health Facs. Auth. Rev.,

 

 

 

 

 

 

 

6,500

 

Beatitudes Project, 5.20%, 10/1/37

 

NR/NR

 

 

5,219,825

 

 

1,300

 

Hospital System, 5.75%, 12/1/32, (Pre-refunded @ $101, 12/1/12) (b)

 

NR/BBB

 

 

1,453,569

 

 

 

 

Pima Cnty. Industrial Dev. Auth. Rev.,

 

 

 

 

 

 

 

3,500

 

Center for Academic Success, 5.50%, 7/1/37 (c)

 

NR/BBB-

 

 

3,065,720

 

 

29,700

 

Correctional Facs., 5.00%, 9/1/39

 

Aa2/AA

 

 

29,902,851

 

 

33,000

 

Salt River Project Agricultural Improvement & Power Dist. Rev., 5.00%, 1/1/37, Ser. A (h)

 

Aa1/AA

 

 

33,835,230

 

 

10,500

 

Salt Verde Financial Corp. Rev., 5.00%, 12/1/37

 

Aa3/AA-

 

 

9,306,255

 

 

 

 

 

 

 

 

 

82,783,450

 

 

 

 

Arkansas—0.1%

 

 

 

 

 

 

 

13,000

 

Arkansas Dev. Finance Auth. Rev., zero coupon, 7/1/46 (AMBAC)

 

Aaa/NR

 

 

1,711,970

 

 

 

 

California—5.0%

 

 

 

 

 

 

 

9,610

 

Alameda Corridor Transportation Auth. Rev., zero coupon, 10/1/16, Ser. A (AMBAC)

 

Aaa/AAA

 

 

6,678,181

 

 

 

 

Golden State Tobacco Securitization Corp. Rev., Ser. A-1,

 

 

 

 

 

 

 

6,000

 

5.00%, 6/1/33

 

Baa3/BBB

 

 

4,984,980

 

 

3,080

 

6.25%, 6/1/33

 

Aaa/AAA

 

 

3,344,788

 

 

9,000

 

6.75%, 6/1/39, (Pre-refunded @ $100, 6/1/13) (b)

 

Aaa/AAA

 

 

10,351,170

 

 

1,000

 

Rancho Cucamonga Community Facs. Dist., Special Tax, 6.30%, 9/1/23, Ser. A

 

NR/NR

 

 

1,009,490

 

 

 

 

State, GO,

 

 

 

 

 

 

 

800

 

5.00%, 6/1/37

 

A1/A+

 

 

799,992

 

 

28,600

 

5.00%, 11/1/37, Ser. 2670 (h)

 

A1/A+

 

 

28,598,570

 

 

10,900

 

5.00%, 12/1/37

 

A1/A+

 

 

10,899,891

 

 

4,700

 

Statewide Community Dev. Auth. Rev., Baptist Univ., 9.00%, 11/1/17, Ser. B (c)

 

NR/NR

 

 

4,788,642

 

 

 

 

 

 

 

 

 

71,455,704

 

 

 

5.31.08 | PIMCO Municipal Income Funds II Annual Report 5

 


PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

Value

 

 

 

 

Colorado—5.0%

 

 

             

 

 

 

$

30,000

             

Dawson Ridge Dist. No. 1, GO, zero coupon, 10/1/22, Ser. A

 

Aaa/NR

 

$

15,572,700

 

 

 

 

E-470 Public Highway Auth. Rev., Ser. B (MBIA),

 

 

 

 

 

 

 

20,000

 

zero coupon, 9/1/35

 

Aaa/AAA

 

 

3,985,400

 

 

15,000

 

zero coupon, 9/1/37

 

Aaa/AAA

 

 

2,640,150

 

 

 

 

Health Facs. Auth. Rev.,

 

 

 

 

 

 

 

1,000

 

American Baptist Homes, 5.90%, 8/1/37, Ser. A

 

NR/NR

 

 

889,830

 

 

25,000

 

Catholic Health Initiatives, 5.50%, 3/1/32

 

Aa2/AA

 

 

25,824,250

 

 

18,305

 

Exempla, Inc., 5.625%, 1/1/33, Ser. A

 

A1/A-

 

 

18,513,494

 

 

6,500

 

Liberty Height, zero coupon, 7/15/22

 

Aaa/AAA

 

 

3,406,845

 

 

2,000

 

Housing & Finance Auth. Rev., Evergreen Country Day School, 5.875%, 6/1/37 (c)

 

NR/BB

 

 

1,808,980

 

 

 

 

 

 

 

 

 

72,641,649

 

 

 

 

District of Columbia—1.2%

 

 

 

 

 

 

 

17,500

 

Washington D.C. Convention Center Auth. Tax Rev., 4.75%, 10/1/28, (Pre-refunded @ $100, 10/1/08) (AMBAC) (b)

 

Aaa/AAA

 

 

17,657,325

 

 

 

 

Florida—4.7%

 

 

 

 

 

 

 

2,310

 

Dev. Finance Corp. Rev., Learning Gate Community School, 6.00%, 2/15/37

 

NR/BBB-

 

 

2,157,563

 

 

8,000

 

Highlands Cnty. Health Facs. Auth. Rev., Adventist/Sunbelt

 

 

 

 

 

 

 

 

 

Health System, 6.00%, 11/15/31, Ser. A,

 

 

 

 

 

 

 

 

 

(Pre-refunded @ $101, 11/15/11) (b)

 

A1/NR

 

 

8,902,640

 

 

 

 

Hillsborough Cnty. Industrial Dev. Auth. Rev.,

 

 

 

 

 

 

 

2,335

 

Pollution Control, Tampa Electric Co., 5.50%, 10/1/23

 

Baa2/BBB-

 

 

2,241,413

 

 

635

 

Health Facs. Project, 5.625%, 8/15/23, Ser. A

 

Baa3/BBB

 

 

630,142

 

 

7,135

 

Jacksonville Health Facs. Auth. Rev., 5.25%, 11/15/32, Ser. A

 

Aa1/AA

 

 

7,191,866

 

 

11,500

 

Lakeland Hospital System Rev., Regional Health System, 5.50%, 11/15/32, (Pre-refunded @ $101, 11/15/12) (b)

 

A2/NR

 

 

12,703,130

 

 

3,000

 

Leesburg Hospital Rev., Leesburg Regional Medical Center Project, 5.50%, 7/1/32

 

Baa1/BBB+

 

 

2,972,190

 

 

 

 

Orange Cnty. Health Facs. Auth. Rev., Adventist Health System (b),

 

 

 

 

 

 

 

2,550

 

5.625%, 11/15/32, (Pre-refunded @ $101, 11/15/12)

 

A1/NR

 

 

2,841,134

 

 

5,000

 

6.25%, 11/15/24, (Pre-refunded @ $100, 11/15/12)

 

A1/NR

 

 

5,656,150

 

 

500

 

Sarasota Cnty. Health Fac. Auth. Rev., 5.75%, 7/1/37

 

NR/NR

 

 

448,275

 

 

6,205

 

State Governmental Utility Auth. Rev., Barefoot Bay Utilities System, 5.00%, 10/1/29 (AMBAC)

 

Aaa/NR

 

 

6,284,114

 

 

5,000

 

Sumter Landing Community Dev. Dist. Rev., 4.75%, 10/1/35, Ser. A (MBIA) (h)

 

Aaa/AAA

 

 

4,858,050

 

 

10,000

 

Tallahassee Rev., 5.00%, 10/1/15, Ser. 2617 (h)

 

Aa2/AA

 

 

10,261,700

 

 

1,500

 

Winter Springs Water & Sewer Rev., zero coupon, 10/1/29 (FGIC)

 

Baa3/A+

 

 

526,530

 

 

 

 

 

 

 

 

 

67,674,897

 

 

 

 

Georgia—0.5%

 

 

 

 

 

 

 

2,775

 

Medical Center Hospital Auth. Rev., 5.25%, 7/1/37

 

NR/NR

 

 

2,290,097

 

 

9,600

 

Richmond Cnty. Dev. Auth. Rev., zero coupon, 12/1/21

 

Aaa/NR

 

 

5,231,904

 

 

 

 

 

 

 

 

 

7,522,001

 

 

 

 

Hawaii—1.3%

 

 

 

 

 

 

 

19,170

 

Honolulu City & Cnty. Wastewater System Rev., First Board Resolution, 4.75%, 7/1/28 (FGIC)

 

Aa3/NR

 

 

19,210,640

 

 

 

6 PIMCO Municipal Income Funds II Annual Report | 5.31.08

 


PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

 

Value

 

 

 

             

Illinois—17.6%

 

 

             

 

 

 

 

 

 

Central Lake Cnty. JT Action Water Agcy. Rev., Ser. A (AMBAC),

 

 

 

 

 

 

$

2,935

 

5.125%, 5/1/28

 

Aaa/NR

 

$

2,989,855

 

 

675

 

5.125%, 5/1/28, (Pre-refunded @ $100, 11/1/12) (b)

 

Aaa/NR

 

 

736,128

 

 

 

 

Chicago, GO, Ser. A (FGIC),

 

 

 

 

 

 

 

1,635

 

5.125%, 1/1/29

 

Aaa/AAA

 

 

1,651,546

 

 

3,415

 

5.125%, 1/1/29, (Pre-refunded @ $101, 1/1/09) (b)

 

Aa3/AA-

 

 

3,513,011

 

 

 

 

Chicago, Lake Shore East, Special Assessment,

 

 

 

 

 

 

 

3,162

 

6.625%, 12/1/22

 

NR/NR

 

 

3,209,335

 

 

6,700

 

6.75%, 12/1/32

 

NR/NR

 

 

6,769,881

 

 

 

 

Chicago Board of Education School Reform, GO (FGIC),

 

 

 

 

 

 

 

15,535

 

zero coupon, 12/1/16, Ser. A

 

A1/AA-

 

 

10,726,141

 

 

5,000

 

zero coupon, 12/1/28, Ser. A

 

A1/AA-

 

 

1,735,850

 

 

4,500

 

zero coupon, 12/1/31

 

A1/AA-

 

 

1,301,850

 

 

 

 

Chicago City Colleges, GO (FGIC),

 

 

 

 

 

 

 

32,670

 

zero coupon, 1/1/37

 

Aa3/AA-

 

 

6,574,838

 

 

29,145

 

zero coupon, 1/1/38

 

Aa3/AA-

 

 

5,529,389

 

 

32,670

 

zero coupon, 1/1/39

 

Aa3/AA-

 

 

5,842,049

 

 

5,000

 

Cicero, GO, 5.25%, 12/1/31 (MBIA)

 

Aaa/AAA

 

 

5,158,550

 

 

 

 

Finance Auth. Rev.,

 

 

 

 

 

 

 

2,500

 

Christian Homes, Inc., 5.75%, 5/15/31, Ser. A

 

NR/NR

 

 

2,210,250

 

 

250

 

Leafs Hockey Club, 6.00%, 3/1/37, Ser. A

 

NR/NR

 

 

221,152

 

 

 

 

Regency Park,

 

 

 

 

 

 

 

10,000

 

zero coupon, 7/15/23

 

NR/AAA

 

 

4,955,300

 

 

134,650

 

zero coupon, 7/15/25

 

NR/AAA

 

 

59,794,026

 

 

1,500

 

Sedgebrook, Inc., 6.00%, 11/15/42, Ser. A

 

NR/NR

 

 

1,363,110

 

 

 

 

Health Facs. Auth. Rev,

 

 

 

 

 

 

 

5,000

 

Condell Medical Center, 5.50%, 5/15/32

 

Baa3/NR

 

 

4,630,550

 

 

20,100

 

Elmhurst Memorial Healthcare, 5.625%, 1/1/28

 

Baa1/NR

 

 

20,135,175

 

 

 

 

Hillside, Tax Allocation, Mannheim Redev. Project (d),

 

 

 

 

 

 

 

4,500

 

6.55%, 1/1/20

 

NR/NR

 

 

4,485,285

 

 

2,900

 

7.00%, 1/1/28

 

NR/NR

 

 

2,887,559

 

 

 

 

Metropolitan Pier & Exposition Auth. Rev. (MBIA),

 

 

 

 

 

 

 

60,000

 

zero coupon, 12/15/30

 

Aaa/AAA

 

 

18,585,000

 

 

50,000

 

zero coupon, 12/15/33

 

Aaa/AAA

 

 

13,021,000

 

 

2,460

 

zero coupon, 6/15/38

 

Aaa/AAA

 

 

496,600

 

 

68,470

 

State Sports Facs. Auth. Rev., 5.50% (zero coupon until 6/15/10), 6/15/30 (AMBAC)

 

Aaa/AAA

 

 

65,858,554

 

 

 

 

 

 

 

 

 

254,381,984

 

 

 

 

Indiana—0.3%

 

 

 

 

 

 

 

4,125

 

Fort Wayne Pollution Control Rev., 6.20%, 10/15/25

 

Caa1/B

 

 

3,423,997

 

 

990

 

Vigo Cnty. Hospital Auth. Rev., 5.80%, 9/1/47 (a)(c)

 

NR/NR

 

 

874,289

 

 

 

 

 

 

 

 

 

4,298,286

 

 

 

 

Iowa—4.1%

 

 

 

 

 

 

 

 

 

Finance Auth. Rev.,

 

 

 

 

 

 

 

1,075

 

5.50%, 11/15/37

 

NR/NR

 

 

814,968

 

 

250

 

Deerfield Retirement Community, 5.50%, 11/15/27, Ser. A

 

NR/NR

 

 

202,303

 

 

4,500

 

Edgewater LLC, 6.75%, 11/15/42

 

NR/NR

 

 

4,371,120

 

 

1,000

 

Wedum Walnut Ridge LLC, 5.625%, 12/1/45, Ser. A

 

NR/NR

 

 

844,800

 

 

 

5.31.08 | PIMCO Municipal Income Funds II Annual Report 7

 


PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

 

Value

 

 

 

             

Iowa—(continued)

 

 

             

 

 

 

$

2,300

 

Higher Education Loan Auth. Rev., Grandview College, 5.10%, 10/1/36

 

NR/NR

 

$

2,056,706

 

 

 

 

Tobacco Settlement Auth. of Iowa Rev., Ser. B,

 

 

 

 

 

 

 

46,000

 

5.60%, 6/1/34

 

Baa3/BBB

 

 

40,917,000

 

 

8,850

 

5.60%, 6/1/35, (Pre-refunded @ $101, 6/1/11) (b)

 

NR/AAA

 

 

9,605,878

 

 

 

 

 

 

 

 

 

58,812,775

 

 

 

 

Kansas—0.2%

 

 

 

 

 

 

 

2,800

 

Univ. of Kansas Hospital Auth. Rev., 5.625%, 9/1/32, (Pre-refunded @ $100, 9/1/12) (b)

 

NR/AAA

 

 

3,094,084

 

 

 

 

Kentucky—0.2%

 

 

 

 

 

 

 

2,500

 

Economic Dev. Finance Auth. Rev., Catholic Healthcare Partners, 5.25%, 10/1/30

 

A1/AA-

 

 

2,501,725

 

 

 

 

Louisiana—4.7%

 

 

 

 

 

 

 

 

 

Public Facs. Auth. Rev., Ochsner Clinic Foundation, Ser. B,

 

 

 

 

 

 

 

20,400

 

5.50%, 5/15/32, (Pre-refunded @ $100, 5/15/26) (b)

 

Aaa/NR

 

 

23,028,132

 

 

3,300

 

5.50%, 5/15/47

 

A3/NR

 

 

3,207,105

 

 

44,395

 

Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B

 

Baa3/BBB

 

 

41,101,779

 

 

 

 

 

 

 

 

 

67,337,016

 

 

 

 

Maryland—0.4%

 

 

 

 

 

 

 

 

 

Health & Higher Educational Facs. Auth. Rev.,

 

 

 

 

 

 

 

1,010

 

5.30%, 1/1/37

 

NR/NR

 

 

817,959

 

 

4,050

 

6.00%, 1/1/43

 

NR/BBB-

 

 

4,049,757

 

 

1,000

 

Adventist Healthcare, 5.75%, 1/1/25, Ser. A

 

Baa2/NR

 

 

1,016,130

 

 

 

 

 

 

 

 

 

5,883,846

 

 

 

 

Massachusetts—3.2%

 

 

 

 

 

 

 

14,500

 

Bay Transportation Auth. Rev., 4.75%, 7/1/34, Ser. A, (Pre-refunded @ $100, 7/1/15) (b)(h)

 

Aa1/AAA

 

 

15,778,465

 

 

4,610

 

Dev. Finance Agcy. Rev., 6.75%, 10/15/37, Ser. A

 

NR/NR

 

 

4,201,508

 

 

 

 

State Turnpike Auth. Rev., Ser. A (AMBAC),

 

 

 

 

 

 

 

4,295

 

4.75%, 1/1/34

 

Aaa/AAA

 

 

4,296,761

 

 

10,325

 

5.00%, 1/1/39

 

Aaa/AAA

 

 

10,228,771

 

 

12,050

 

State Water Res. Auth. Rev., 4.75%, 8/1/37 Ser. A, (FSA)(h)

 

Aaa/AAA

 

 

12,051,446

 

 

 

 

 

 

 

 

 

46,556,951

 

 

 

 

Michigan—2.8%

 

 

 

 

 

 

 

8,500

 

Detroit City School Dist., GO,

 

 

 

 

 

 

 

 

 

5.00%, 5/1/32, Ser. A, (Pre-refunded @ $100, 5/1/13) (FGIC)(Q-SBLF)(b)

 

Aa3/AA-

 

 

9,209,750

 

 

4,545

 

Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A

 

NR/NR

 

 

3,408,568

 

 

800

 

Public Educational Facs. Auth. Rev., 6.50%, 9/1/37 (c)

 

NR/NR

 

 

747,576

 

 

500

 

Star International Academy, CP, 6.125%, 3/1/37

 

NR/BB+

 

 

452,340

 

 

5,000

 

State Hospital Finance Auth. Rev.,

 

 

 

 

 

 

 

 

 

Ascension Health, 5.25%, 11/15/26, Ser. B

 

Aa1/AA

 

 

5,035,150

 

 

 

 

Oakwood Group, Ser. A,

 

 

 

 

 

 

 

13,500

 

5.75%, 4/1/32

 

A2/A

 

 

13,583,430

 

 

1,925

 

6.00%, 4/1/22

 

A2/A

 

 

2,007,294

 

 

6,000

 

Tobacco Settlement Finance Auth. Rev., 6.00%, 6/1/48, Ser. A

 

NR/BBB

 

 

5,283,840

 

 

 

 

 

 

 

 

 

39,727,948

 

 

 

8 PIMCO Municipal Income Funds II Annual Report | 5.31.08

 


PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

Value

 

 

 

             

Minnesota—0.5%

 

 

             

 

 

 

$

1,300

 

Meeker Cnty. Rev., 5.75%, 11/1/37

 

NR/NR

 

$

1,206,374

 

 

1,500

 

Minneapolis Rev., Providence Project, 5.75%, 10/1/37, Ser. A

 

NR/NR

 

 

1,344,315

 

 

280

 

Minneapolis, Tax Allocation, Grant Park Project, 5.35%, 2/1/30 North Oaks Presbyterian Homes Rev.,

 

NR/NR

 

 

252,742

 

 

2,640

 

6.00%, 10/1/33

 

NR/NR

 

 

2,609,244

 

 

1,530

 

6.125%, 10/1/39

 

NR/NR

 

 

1,524,553

 

 

500

 

Oronoco Multifamily Housing Rev., 5.40%, 6/1/41

 

NR/NR

 

 

446,000

 

 

 

 

 

 

 

 

 

7,383,228

 

 

 

 

Mississippi—0.3%

 

 

 

 

 

 

 

3,605

 

Business Finance Corp., Pollution Control Rev., 5.875%, 4/1/22

 

Ba1/BBB

 

 

3,605,036

 

 

740

 

Dev. Bank Special Obligation, Projects & Equipment Acquisitions Rev., 5.00%, 7/1/24 (AMBAC)

 

Aaa/AAA

 

 

715,373

 

 

 

 

 

 

 

 

 

4,320,409

 

 

 

 

Missouri—0.3%

 

 

 

 

 

 

 

2,600

 

Branson Regional Airport Transportation Dev. Dist. Rev., 6.00%, 7/1/37, Ser. A

 

NR/NR

 

 

2,322,736

 

 

800

 

Hanley Road & North of Folk Ave. Transportation Dist. Rev., 5.00%, 10/1/25

 

NR/NR

 

 

731,384

 

 

1,500

 

St. Louis Parking Rev., Downtown Parking Facs., 6.00%, 2/1/28, (Pre-refunded @ $100, 2/1/12) (b)

 

NR/NR

 

 

1,653,645

 

 

 

 

 

 

 

 

 

4,707,765

 

 

 

 

Nevada—0.5%

 

 

 

 

 

 

 

1,450

 

Clark Cnty., GO, 5.00%, 6/1/31 (FGIC)

 

Aa1/AA+

 

 

1,460,803

 

 

 

 

Reno Transportation Project Rev., (Pre-refunded @ $100, 6/1/12) (AMBAC)(b),

 

 

 

 

 

 

 

2,000

 

5.125%, 6/1/32

 

Aaa/AAA

 

 

2,157,200

 

 

3,500

 

5.125%, 6/1/37

 

Aaa/AAA

 

 

3,775,100

 

 

 

 

 

 

 

 

 

7,393,103

 

 

 

 

New Hampshire—0.2%

 

 

 

 

 

 

 

 

 

Health & Education Facs. Auth. Rev., Catholic Medical Center,

 

 

 

 

 

 

 

360

 

6.125%, 7/1/32

 

Baa1/BBB+

 

 

366,635

 

 

2,640

 

6.125%, 7/1/32, (Pre-refunded @ $101, 7/1/12) (b)

 

Baa1/BBB+

 

 

2,975,385

 

 

 

 

 

 

 

 

 

3,342,020

 

 

 

 

New Jersey—3.4%

 

 

 

 

 

 

 

950

 

Burlington Cnty. Bridge Commission Rev., 5.625%, 1/1/38

 

NR/NR

 

 

847,020

 

 

 

 

Economic Dev. Auth.,

 

 

 

 

 

 

 

 

 

Arbor Glen Rev.,

 

 

 

 

 

 

 

525

 

6.00%, 5/15/28

 

NR/NR

 

 

513,051

 

 

225

 

6.00%, 5/15/28, Ser. A, (Pre-refunded @ $102, 5/15/09) (b)

 

NR/NR

 

 

238,102

 

 

 

 

Kapkowski Road Landfill, Special Assessment,

 

 

 

 

 

 

 

4,000

 

5.75%, 10/1/21

 

Baa3/NR

 

 

4,062,080

 

 

11,405

 

5.75%, 4/1/31

 

Baa3/NR

 

 

11,034,794

 

 

1,100

 

Seabrook Village Rev., 5.25%, 11/15/36

 

NR/NR

 

 

932,701

 

 

250

 

Seashore Gardens Rev., 5.375%, 11/1/36

 

NR/NR

 

 

209,525

 

 

 

 

Health Care Facs. Financing Auth. Rev.,

 

 

 

 

 

 

 

1,500

 

St. Peters Univ. Hospital, 5.75%, 7/1/37

 

Baa2/BBB-

 

 

1,474,965

 

 

1,830

 

Trinitas Hospital, 5.25%, 7/1/30, Ser. A

 

Baa3/BBB-

 

 

1,571,366

 

 

5.31.08 | PIMCO Municipal Income Funds II Annual Report 9

 


PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

Value

 

 

 

             

New Jersey—(continued)

 

 

             

 

 

 

$

3,500

 

State Educational Facs. Auth. Rev., Fairfield Dickinson Univ., 6.00%, 7/1/25, Ser. D

 

NR/NR

 

$

3,568,040

 

 

 

 

Tobacco Settlement Financing Corp. Rev.,

 

 

 

 

 

 

 

13,150

 

5.00%, 6/1/41, Ser. 1A

 

Baa3/BBB

 

 

10,129,314

 

 

1,285

 

6.00%, 6/1/37, (Pre-refunded @ $100, 6/1/12) (b)

 

Aaa/AAA

 

 

1,427,982

 

 

3,095

 

6.125%, 6/1/42, (Pre-refunded @ $100, 6/1/12) (b)

 

Aaa/AAA

 

 

3,453,834

 

 

6,150

 

6.25%, 6/1/43, (Pre-refunded @ $100, 6/1/13) (b)

 

Aaa/AAA

 

 

7,024,222

 

 

2,500

 

6.75%, 6/1/39, (Pre-refunded @ $100, 6/1/13) (b)

 

Aaa/AAA

 

 

2,912,700

 

 

 

 

 

 

 

 

 

49,399,696

 

 

 

 

New Mexico—0.3%

 

 

 

 

 

 

 

5,000

 

Farmington Pollution Control Rev., 5.80%, 4/1/22

 

Baa3/BB+

 

 

4,972,470

 

 

 

 

New York—1.2%

 

 

 

 

 

 

 

1,200

 

Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., 6.00%, 11/15/36

 

NR/NR

 

 

1,088,184

 

 

10,000

 

Liberty Dev. Corp. Rev., 5.25%, 10/1/35 (h)

 

Aa3/AA-

 

 

10,339,200

 

 

1,100

 

Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A

 

NR/NR

 

 

1,113,244

 

 

4,750

 

New York City Municipal Water Finance Auth., Water & Sewer System Rev., 5.00%, 6/15/37, Ser. D (h)

 

Aa2/AA+

 

 

4,842,958

 

 

 

 

 

 

 

 

 

17,383,586

 

 

 

 

North Carolina—0.1%

 

 

 

 

 

 

 

 

 

Medical Care Commission Rev.,

 

 

 

 

 

 

 

550

 

Salemtowne, 5.10%, 10/1/30

 

NR/NR

 

 

483,362

 

 

1,000

 

Village at Brookwood, 5.25%, 1/1/32

 

NR/NR

 

 

839,650

 

 

 

 

 

 

 

 

 

1,323,012

 

 

 

 

North Dakota—0.3%

 

 

 

 

 

 

 

3,710

 

Stark Cnty. Healthcare Rev., Benedictine Living Communities, 6.75%, 1/1/33

 

NR/NR

 

 

3,601,668

 

 

 

 

Ohio—0.5%

 

 

 

 

 

 

 

7,500

 

Lorain Cnty. Hospital Rev., Catholic Healthcare, 5.375%, 10/1/30

 

A1/AA-

 

 

7,541,025

 

 

 

 

Pennsylvania—3.2%

 

 

 

 

 

 

 

 

 

Allegheny Cnty. Hospital Dev. Auth. Rev.,

 

 

 

 

 

 

 

22,600

 

5.375%, 11/15/40, Ser. A

 

Ba2/BB

 

 

19,098,582

 

 

505

 

9.25%, 11/15/15, Ser. B, (Pre-refunded @ $102, 11/15/10) (b)

 

Ba3/AAA

 

 

579,412

 

 

1,000

 

9.25%, 11/15/22, Ser. B, (Pre-refunded @ $102, 11/15/10) (b)

 

Ba3/AAA

 

 

1,174,650

 

 

5,700

 

9.25%, 11/15/30, Ser. B, (Pre-refunded @ $102, 11/15/10) (b)

 

Ba3/AAA

 

 

6,695,505

 

 

 

 

Cumberland Cnty. Auth., Retirement Community Rev., Ser. A, Messiah Village,

 

 

 

 

 

 

 

750

 

5.625%, 7/1/28

 

NR/BBB-

 

 

715,710

 

 

670

 

6.00%, 7/1/35

 

NR/BBB-

 

 

657,659

 

 

 

 

Wesley Affiliated Services,

 

 

 

 

 

 

 

4,500

 

7.25%, 1/1/35, (Pre-refunded @ $101, 1/1/13) (b)

 

NR/NR

 

 

5,308,695

 

 

3,250

 

Harrisburg Auth. Rev., 6.00%, 9/1/36

 

NR/NR

 

 

3,101,150

 

 

 

 

Montgomery Cnty. Higher Education & Health Auth. Hospital Rev., Abington Memorial Hospital, Ser. A,

 

 

 

 

 

 

 

5,000

 

5.125%, 6/1/27

 

NR/A

 

 

4,972,950

 

 

3,750

 

5.125%, 6/1/32

 

NR/A

 

 

3,681,412

 

 

10 PIMCO Municipal Income Funds II Annual Report | 5.31.08

 


PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

Value

 

 

 

             

Pennsylvania—(continued)

 

 

             

 

 

 

$

500

 

Pittsburgh & Allegheny Cntys. Public Auditorium Auth. Rev., 5.00%, 2/1/29 (AMBAC)

 

Aaa/AAA

 

$

503,830

 

 

 

 

 

 

 

 

 

46,489,555

 

 

 

 

Puerto Rico—0.3%

 

 

 

 

 

 

 

3,320

 

Electric Power Auth. Power Rev., 5.125%, 7/1/29, Ser. HH, (Pre-refunded @ $100, 7/1/13) (b)

 

A3/AAA

 

 

3,649,742

 

 

 

 

Rhode Island—5.0%

 

 

 

 

 

 

 

76,200

 

Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A

 

Baa3/BBB

 

 

72,111,870

 

 

 

 

South Carolina—5.5%

 

 

 

 

 

 

 

27,745

 

Greenville Cnty. School Dist. Rev., Building Equity Sooner Tomorrow, 5.50%, 12/1/28, (Pre-refunded @ $101, 12/1/12) (b)

 

Aaa/AA-

 

 

30,919,305

 

 

 

 

Jobs-Economic Dev. Auth. Rev., Bon Secours,

 

 

 

 

 

 

 

14,350

 

5.625%, 11/15/30

 

A3/A-

 

 

14,520,765

 

 

3,770

 

5.625%, 11/15/30, (Pre-refunded @ $100, 11/15/12) (b)

 

A3/A-

 

 

4,167,509

 

 

 

 

Lexington Cnty. Health Services Dist. Hospital Rev. (b),

 

 

 

 

 

 

 

15,000

 

5.50%, 11/1/32, (Pre-refunded @ $100, 11/1/13)

 

A2/A+

 

 

16,621,800

 

 

3,500

 

5.50%, 5/1/37, (Pre-refunded @ $100, 5/1/14)

 

A2/A+

 

 

3,882,410

 

 

5,000

 

5.75%, 11/1/28, (Pre-refunded @ $100, 11/1/13)

 

A2/A+

 

 

5,602,050

 

 

3,250

 

Tobacco Settlement Rev. Management Auth. Rev., 6.375%, 5/15/28, Ser. B

 

Baa3/BBB

 

 

3,258,255

 

 

 

 

 

 

 

 

 

78,972,094

 

 

 

 

Tennessee—0.5%

 

 

 

 

 

 

 

3,000

 

Energy Acquisition Corp. Rev., 5.00%, 2/1/23, Ser. C

 

Aa3/AA-

 

 

2,863,200

 

 

3,750

 

Knox Cnty. Health Educational & Housing Facs. Board Rev., 5.25%, 10/1/30

 

A1/AA-

 

 

3,752,587

 

 

500

 

Sullivan Cnty. Health Educational & Housing Facs. Rev., 5.25%, 9/1/36, Ser. C

 

NR/BBB+

 

 

470,555

 

 

 

 

 

 

 

 

 

7,086,342

 

 

 

 

Texas—7.0%

 

 

 

 

 

 

 

10

 

Arlington Independent School Dist., GO, 5.00%, 2/15/24 (PSF-GTD)

 

Aaa/NR

 

 

10,052

 

 

 

 

Aubrey Independent School Dist., GO (PSF-GTD),

 

 

 

 

 

 

 

130

 

5.50%, 2/15/33

 

Aaa/NR

 

 

138,691

 

 

4,350

 

5.50%, 2/15/33, (Pre-refunded @ $100, 8/15/14) (b)

 

Aaa/NR

 

 

4,910,759

 

 

17,500

 

Austin Trust, GO, 4.75%, 4/1/36 (h)

 

Aa1/AA

 

 

17,472,000

 

 

6,500

 

Brazos Cnty. Health Facs. Dev. Corp. Rev., Franciscan Services Corp., 5.375%, 1/1/32

 

NR/A-

 

 

6,501,235

 

 

2,700

 

Comal Cnty. Health Facs. Dev. Rev., McKenna Memorial Hospital Project, 6.25%, 2/1/32, (Pre-refunded @ $100, 2/1/13) (b)

 

Baa2/AAA

 

 

3,066,147

 

 

20,000

 

Frisco Independent School Dist., GO, zero coupon, 8/15/34 (PSF-GTD)

 

Aaa/NR

 

 

5,015,800

 

 

5,250

 

Harris Cnty. Health Facs. Dev. Corp. Rev., St. Luke’s Episcopal Hospital, 5.375%, 2/15/26, Ser. A, (Pre-refunded @ $100, 8/15/11) (b)

 

NR/AAA

 

 

5,657,138

 

 

700

 

HFDC of Central Texas, Inc. Rev., Village at Gleannloch Farms, 5.50%, 2/15/37, Ser. A

 

NR/NR

 

 

575,183

 

 

 

 

Keller Independent School Dist., GO (PSF-GTD),

 

 

 

 

 

 

 

770

 

4.875%, 8/15/31

 

Aaa/AAA

 

 

772,479

 

 

6,730

 

4.875%, 8/15/31, (Pre-refunded @ $100, 8/15/09) (b)

 

Aaa/AAA

 

 

6,951,888

 

 

 

5.31.08 | PIMCO Municipal Income Funds II Annual Report 11

 


 

 

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

Value

 

 

 

             

Texas—(continued)

 

 

             

 

 

 

$

3,170

 

Little Elm Independent School Dist., GO, 5.30%, 8/15/29, Ser. A (PSF-GTD)

 

NR/AAA

 

$

3,304,028

 

 

6,250

 

North Dallas Thruway Auth. Rev., 4.75%, 1/1/29 (FGIC)

 

A2/A-

 

 

6,253,312

 

 

5,000

 

North Texas Tollway Auth. Rev., 5.625%, 1/1/33, Ser. B

 

A2/A-

 

 

5,120,550

 

 

2,000

 

Sabine River Auth. Rev., 5.20%, 5/1/28

 

NR/CCC

 

 

1,533,240

 

 

10,025

 

State, GO, 4.75%, 4/1/35, Ser. A (h)

 

Aa1/AA

 

 

10,030,112

 

 

1,000

 

State Public Finance Auth. Rev., 5.875%, 12/1/36, Ser. A

 

Baa3/BBB-

 

 

950,380

 

 

10,000

 

State Turnpike Auth. Central Turnpike System Rev., Ser. A (AMBAC),

 

 

 

 

 

 

 

 

 

zero coupon, 8/15/19

 

Aaa/AAA

 

 

5,746,100

 

 

8,880

 

5.00%, 8/15/42

 

Aaa/AAA

 

 

8,836,044

 

 

3,250

 

State Water Financial Assistance, GO, 5.00%, 8/1/36

 

Aa1/AA

 

 

3,289,910

 

 

4,150

 

Willacy Cnty. Rev., 6.875%, 9/1/28, Ser. A-1

 

NR/NR

 

 

4,136,844

 

 

 

 

 

 

 

 

 

100,271,892

 

 

 

 

Utah—3.3%

 

 

 

 

 

 

 

44,150

 

Utah Transit Auth. Rev.,

 

 

 

 

 

 

 

 

 

4.75%, 6/15/35, Ser. B, (Pre-refunded @ $100, 12/15/15) (FSA)(b)(h)

 

Aaa/AAA

 

 

48,264,338

 

 

 

 

Virginia—0.6%

 

 

 

 

 

 

 

 

 

Fredericksburg Industrial Dev. Auth., Medicorp Health System Rev., Ser. B,

 

 

 

 

 

 

 

2,500

 

5.125%, 6/15/33

 

A3/NR

 

 

2,456,700

 

 

4,000

 

5.25%, 6/15/27

 

A3/NR

 

 

4,017,200

 

 

2,050

 

James City Cnty. Economic Dev. Auth. Rev., 5.50%, 7/1/37, Ser. A

 

NR/NR

 

 

1,755,272

 

 

 

 

 

 

 

 

 

8,229,172

 

 

 

 

Washington—1.3%

 

 

 

 

 

 

 

13,000

 

Health Care Facs. Auth. Rev., Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A

 

Baa2/BBB

 

 

12,676,170

 

 

6,800

 

State Housing Finance Commission Rev., Skyline at First Hill, 5.625%, 1/1/38, Ser. A

 

NR/NR

 

 

5,841,540

 

 

 

 

 

 

 

 

 

18,517,710

 

 

 

 

Wisconsin—0.6%

 

 

 

 

 

 

 

 

 

Badger Tobacco Asset Securitization Corp. Rev.,

 

 

 

 

 

 

 

1,125

 

6.00%, 6/1/17

 

Baa3/BBB

 

 

1,126,969

 

 

7,150

 

6.125%, 6/1/27

 

Baa3/BBB

 

 

7,122,187

 

 

 

 

Health & Educational Facs. Auth. Rev., Froedert & Community Health Oblig.,

 

 

 

 

 

 

 

90

 

5.375%, 10/1/30

 

NR/AA-

 

 

91,256

 

 

910

 

5.375%, 10/1/30, (Pre-refunded @ $101, 10/1/11) (b)

 

NR/AA-

 

 

991,554

 

 

 

 

 

 

 

 

 

9,331,966

 

 

 

 

Total Municipal Bonds & Notes (cost—$1,342,078,367)

 

 

 

 

1,385,723,946

 

 

 

 

 

 

 

 

 

 

 

VARIABLE RATE NOTES (f)—4.0%

 

 

 

 

 

 

 

 

 

Alabama—0.5%

 

 

 

 

 

 

 

4,450

 

Jefferson Cnty. Sewer Rev., 18.63%, 2/1/36, Ser. 352 (FGIC)(a)(c)(e)

 

Aaa/NR

 

 

5,089,954

 

 

1,400

 

Montgomery Special Care Facs. Financing Auth. Rev., 17.44%, 11/15/29, Ser. 435 (MBIA)(a)(c)(e)

 

Aaa/NR

 

 

1,486,100

 

 

 

 

 

 

 

 

 

6,576,054

 

 

 

12 PIMCO Municipal Income Funds II Annual Report | 5.31.08

 


 

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

Value

 

 

 

             

Colorado—0.2%

 

 

             

 

 

 

$

2,250

 

Denver City & Cnty. Airport Rev., 17.44%, 11/15/25, Ser. 425 (FSA)(a)(c)(e)

 

Aaa/NR

 

$

2,387,813

 

 

 

 

Florida—0.4%

 

 

 

 

 

 

 

2,830

 

Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System, 5.00%, 11/15/31, Ser. C

 

A1/A+

 

 

2,731,431

 

 

1,782

 

Orange Cnty. School Board, CP, 17.45%, 8/1/24, Ser. 328 (MBIA)(a)(c)(e)

 

Aaa/NR

 

 

2,166,021

 

 

 

 

 

 

 

 

 

4,897,452

 

 

 

 

Illinois—0.6%

 

 

 

 

 

 

 

 

 

Chicago, GO (a)(c)(e),

 

 

 

 

 

 

 

1,780

 

18.07%, 1/1/28, Ser. 332 (MBIA)

 

Aaa/NR

 

 

2,126,121

 

 

2,200

 

19.94%, 1/1/40, Ser. 426 (FGIC)

 

Aa3/NR

 

 

2,573,010

 

 

1,288

 

Cook Cnty., GO, 15.65%, 11/15/28, Ser. 403 (FGIC)(a)(c)(e)

 

Aa2/NR

 

 

1,364,636

 

 

2,000

 

State, GO, 18.70%, 4/1/27, Ser. 783 (FSA)(a)(c)(e)

 

Aaa/NR

 

 

2,370,400

 

 

 

 

 

 

 

 

 

8,434,167

 

 

 

 

Massachusetts—1.0%

 

 

 

 

 

 

 

1,400

 

Boston Water & Sewer Community Rev.,

 

 

 

 

 

 

 

 

 

15.68%, 11/1/28, Ser. 434 (FGIC)(a)(c)(e)

 

Aa2/NR

 

 

1,450,750

 

 

2,200

 

State, GO, 18.74%, 11/1/30, Ser. 785 (FGIC-TRS)(a)(c)(e)

 

Aa2/NR

 

 

3,134,120

 

 

 

 

State Turnpike Auth. Rev. (MBIA)(a)(c)(e),

 

 

 

 

 

 

 

7,366

 

0.12%, 1/1/37, Ser. 334

 

Aaa/NR

 

 

7,437,082

 

 

3,000

 

0.12%, 1/1/37, Ser. 489

 

NR/AAA

 

 

3,028,950

 

 

 

 

 

 

 

 

 

15,050,902

 

 

 

 

Nevada—0.0%

 

 

 

 

 

 

 

325

 

State, GO, 15.60%, 5/15/28, Ser. 344 (FGIC)(a)(c)(e)

 

Aa1/NR

 

 

330,168

 

 

 

 

Ohio—0.1%

 

 

 

 

 

 

 

1,580

 

Hamilton Cnty. Sales Tax Rev., 17.44%, 12/1/27, Ser. 356 (MBIA)(a)(c)(e)

 

Aaa/NR

 

 

1,659,000

 

 

 

 

Pennsylvania—0.3%

 

 

 

 

 

 

 

 

 

Philadelphia School Dist., GO (MBIA)(a)(c)(e)

 

 

 

 

 

 

 

1,670

 

16.20%, 4/1/27, Ser. 345

 

Aaa/NR

 

 

1,872,738

 

 

2,677

 

16.20%, 4/1/27, Ser. 496

 

NR/AAA

 

 

3,001,988

 

 

 

 

 

 

 

 

 

4,874,726

 

 

 

 

Texas—0.7%

 

 

 

 

 

 

 

2,460

 

Denton Utility System Rev., 18.07%, 12/1/29, Ser. 428 (MBIA)(a)(c)(e)

 

Aaa/NR

 

 

2,662,335

 

 

1,100

 

Houston Airport System Rev., 0.12%, 7/1/25, Ser. 404 (FGIC)(a)(c)(e)

 

A1/NR

 

 

1,100,880

 

 

 

 

Houston Water & Sewer System Rev. (a)(c)(e),

 

 

 

 

 

 

 

2,200

 

17.44%, 12/1/28, Ser. 427 (FSA)

 

Aaa/NR

 

 

2,662,770

 

 

3,070

 

18.70%, 12/1/30, Ser. 495 (FGIC)

 

NR/NR

 

 

4,110,423

 

 

 

 

 

 

 

 

 

10,536,408

 

 

 

 

Washington—0.2%

 

 

 

 

 

 

 

2,275

 

Central Puget Sound Regional Transit Auth. Sales Tax & Motor Rev., 11.98%, 2/1/28, Ser. 360 (FGIC)(a)(c)(e)

 

Aa2/NR

 

 

2,285,738

 

 

 

 

Total Variable Rate Notes (cost—$49,478,598)

 

 

 

 

57,032,428

 

 

 

5.31.08 | PIMCO Municipal Income Funds II Annual Report 13

 


PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 

 

 

 

 

Value

 

U.S. TREASURY BILLS (g)—0.0%

 

 

 

 

 

 

$

175

             

1.42%, 6/12/08 (cost—$174,923)

 

 

             

$

174,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments (cost—$1,391,731,888)—100.0%

 

 

 

$

1,442,931,297

 

 

 

14 PIMCO Municipal Income Funds II Annual Report | 5.31.08

 


PIMCO California Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount

(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

Value

 

CALIFORNIA MUNICIPAL BONDS & NOTES—95.5%

 

 

 

 

 

 

$

2,000

             

ABC Unified School Dist., GO, zero coupon, 8/1/23, Ser. B (FGIC)

 

A1/A+

             

$

918,500

 

 

1,000

 

Alpine Union School Dist., GO, zero coupon, 8/1/24, Ser. B (FSA)

 

Aaa/AAA

 

 

494,970

 

 

8,115

 

Anaheim City School Dist., GO, 5.00%, 8/1/26, (Pre-refunded @ $101, 8/1/11) (FGIC) (b)

 

Baa3/A

 

 

8,771,260

 

 

 

 

Assoc. of Bay Area Gov’t Finance Auth. Rev., Odd Fellows Home,

 

 

 

 

 

 

 

5,300

 

5.20%, 11/15/22

 

NR/A+

 

 

5,432,871

 

 

26,000

 

5.35%, 11/15/32

 

NR/A+

 

 

26,440,960

 

 

23,000

 

Bakersfield, CP, zero coupon, 4/15/21

 

NR/AAA

 

 

12,652,990

 

 

2,000

 

Bay Area Gov’t Assoc., Lease Rev., 5.00%, 7/1/32, Ser. 2002-1, (AMBAC)

 

Aaa/AAA

 

 

2,030,260

 

 

1,945

 

Windmere Ranch Dist., Special Assessment,

 

 

 

 

 

 

 

 

 

6.30%, 9/2/25, (Pre-refunded @ $102, 9/2/11) (b)

 

NR/AAA

 

 

2,205,163

 

 

1,085

 

Capistrano Unified School Dist.,

 

 

 

 

 

 

 

 

 

Special Tax, 5.70%, 9/1/20, (Pre-refunded @ $102, 9/1/09) (b)

 

NR/NR

 

 

1,154,147

 

 

2,300

 

Ceres Unified School Dist., GO, zero coupon, 8/1/27 (FGIC)

 

Baa3/A

 

 

762,611

 

 

1,160

 

Chula Vista Dist., Special Tax,

 

 

 

 

 

 

 

 

 

6.05%, 9/1/25, (Pre-refunded @ $102, 9/1/10) (b)

 

NR/NR

 

 

1,276,499

 

 

2,500

 

6.10%, 9/1/32, (Pre-refunded @ $102, 9/1/10) (b)

 

Aa1/NR

 

 

2,753,800

 

 

 

 

Eastlake Woods,

 

 

 

 

 

 

 

1,825

 

6.15%, 9/1/26

 

NR/NR

 

 

1,831,351

 

 

4,380

 

6.20%, 9/1/33

 

NR/NR

 

 

4,381,402

 

 

2,980

 

Otay Ranch Villiage, 5.125%, 9/1/36

 

NR/NR

 

 

2,534,162

 

 

 

 

Clovis Unified School Dist., GO, Ser. B (FGIC)

 

 

 

 

 

 

 

2,000

 

zero coupon, 8/1/23

 

Baa3/AA

 

 

911,740

 

 

3,535

 

zero coupon, 8/1/25

 

Baa3/AA

 

 

1,428,741

 

 

2,500

 

zero coupon, 8/1/27

 

Baa3/AA

 

 

892,375

 

 

1,410

 

Community College Financing Auth. Lease Rev.,

 

 

 

 

 

 

 

 

 

5.00%, 8/1/27, Ser. A (AMBAC)

 

Aaa/AAA

 

 

1,445,969

 

 

10,000

 

Coronado Community Dev. Agcy.,

 

 

 

 

 

 

 

 

 

Tax Allocation, 4.875%, 9/1/35 (AMBAC) (h)

 

NR/NR

 

 

9,741,800

 

 

 

 

Corona-Norco Unified School Dist. Public Financing Auth., Special Tax,

 

 

 

 

 

 

 

1,110

 

5.10%, 9/1/25 (AMBAC)

 

Aaa/AAA

 

 

1,131,512

 

 

210

 

5.55%, 9/1/15, Ser. A

 

NR/NR

 

 

205,819

 

 

305

 

5.65%, 9/1/16, Ser. A

 

NR/NR

 

 

299,659

 

 

160

 

5.75%, 9/1/17, Ser. A

 

NR/NR

 

 

157,398

 

 

530

 

6.00%, 9/1/20, Ser. A

 

NR/NR

 

 

523,174

 

 

1,000

 

6.00%, 9/1/25, Ser. A

 

NR/NR

 

 

981,690

 

 

4,150

 

6.10%, 9/1/32, Ser. A

 

NR/NR

 

 

4,017,034

 

 

3,000

 

Dinuba Financing Auth. Lease Rev., 5.10%, 8/1/32 (MBIA)

 

Aaa/AAA

 

 

3,126,810

 

 

3,475

 

Educational Facs. Auth. Rev., Loyola Marymount Univ., zero coupon, 10/1/34 (MBIA)

 

Aaa/NR

 

 

867,847

 

 

2,000

 

Educational Facs. Auth. Rev., Woodbury Univ., 5.00%, 1/1/36

 

Baa3/BBB-

 

 

1,761,140

 

 

 

 

Empire Union School Dist., Special Tax (AMBAC),

 

 

 

 

 

 

 

1,560

 

zero coupon, 10/1/30

 

Aaa/AAA

 

 

465,598

 

 

1,265

 

zero coupon, 10/1/32

 

Aaa/AAA

 

 

336,389

 

 

1,000

 

Escondido Union School Dist., GO, zero coupon, 8/1/27 (FSA)

 

Aaa/AAA

 

 

377,510

 

 

2,440

 

Eureka Union School Dist., GO, zero coupon, 8/1/27 (FSA)

 

Aaa/AAA

 

 

921,124

 

 

 

5.31.08 | PIMCO Municipal Income Funds II Annual Report 15

 


PIMCO California Municipal Income Fund II Schedule of Investments

May 31, 2008


Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)*

 

Value

 

 

 

             

Foothill Eastern Corridor Agcy. Toll Road Rev.,

 

 

             

 

 

 

$

7,100

 

zero coupon, 1/1/25, Ser. A

 

Aaa/AAA

 

$

3,260,817

 

 

3,270

 

zero coupon, 1/1/26, Ser. A

 

Aaa/AAA

 

 

1,425,589

 

 

1,500

 

zero coupon, 1/15/27 (MBIA-IBC)

 

Aaa/AAA

 

 

1,488,045

 

 

3,780

 

zero coupon, 1/1/28, Ser. A

 

Aaa/AAA

 

 

1,468,190

 

 

17,860

 

zero coupon, 1/1/30, Ser. A

 

Aaa/AAA

 

 

6,115,085

 

 

400

 

Franklin-McKinley School Dist., GO, 5.00%, 8/1/27, Ser. B, (Pre-refunded @ $100, 8/1/13) (FSA) (b)

 

Aaa/AAA

 

 

438,956

 

 

1,440