c56480_ncsrs.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

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, 2009 
 
Date of reporting period:   November 30, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Semi-Annual Report

 

 

November 30, 2008

 

 

 

 

 

 

 


 

 

 

 

 

 

(PML LOGO)

(PCK LOGO)

(PNI LOGO)

 

Contents

 

 

 

 

 

 

 

 

 

Letter to Shareholders

 

1

 

 

 

 

 

 

 

Fund Insights/Performance & Statistics

 

2-4

 

 

 

 

 

 

 

Schedules of Investments

 

5-23

 

 

 

 

 

 

 

Statements of Assets and Liabilities

 

24

 

 

 

 

 

 

 

Statements of Operations

 

25

 

 

 

 

 

 

 

Statements of Changes in Net Assets

 

26-27

 

 

 

 

 

 

 

Statement of Cash Flows

 

28

 

 

 

 

 

 

 

Notes to Financial Statements

 

29-35

 

 

 

 

 

 

 

Financial Highlights

 

36-38

 

 

 

 

 

 

 

Matters Relating to the Trustees’ Consideration of the Investment Management and Portfolio Management Agreements

 

39-40

 

 

 

 

 

 

 

Subsequent Events/Proxy Voting Policies & Procedures

 

41-43

 

 

 

 

 

 

 

Annual Shareholder Meetings Results

 

44

 


 

 

(ALLIANZ LOGO)

 


 

PIMCO Municipal Income Funds II Letter to Shareholders

 

January 15, 2009

Dear Shareholder:

We are pleased to provide you with the semi-annual report for PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II and PIMCO New York Municipal Income Fund II (collectively, the “Funds”) for the six-month period ended November 30, 2008.

Tight credit conditions and a global economic slowdown caused municipal bond prices to fall during the period. The Barclays Capital Municipal Bond Index returned (4.98)% while the Barclays Capital U.S. Aggregate Bond Index, a broad credit market measure of government and corporate securities, posted a positive 0.24% return. Stocks fared worse in the downturn. The Standard & Poor’s 500 Index returned (35.20)% for the period, among the worst periods on record for equities. The Federal Reserve (the “Fed”) sought to inject liquidity into the economy through multiple initiatives, including reducing the Federal Funds rate twice during the reporting period. The Fed moves lowered the key target rate on loans between banks from 2.00% to 1.00%.

In the coming weeks or months, we would expect the de-leveraging of the private sector to meet its counterpart in the leveraging of the federal government as it seeks to inject more than a trillion dollars of liquidity into the nation’s financial system. This initiative holds potential to restore stability and some relative safety to debt securities outside of the shortest-term government issues.

Subsequent to the six month period ended November 30, 2008, a decision to redeem a portion of each Fund’s Auction Rate Preferred Shares (“ARPS”) was made at the recommendation of the Fund’s investment manager and approved by the Board of Trustees. These redemptions were intended to increase and maintain asset coverage for each Fund’s ARPS above the 200% level, permitting the Funds to pay previously declared common share dividends and to declare and pay future common share dividends. Depending on market conditions, coverage ratios may increase or decrease further. With respect to each of the Funds, as of the date of this letter, all dividend payments which were postponed have been paid and all dividend declarations which were postponed have subsequently been declared.

For specific information on the Funds and their performance, 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 (“PIMCO”), the Funds’ sub-adviser, we thank you for investing with us.

Sincerely,

 

 

 

-s- Hans W. Kertess

 

-s- Brian S. Shlissel

Hans W. Kertess

 

Brian S. Shlissel

Chairman

 

President & Chief Executive Officer

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  1


 

PIMCO Municipal Income Fund II Fund Insights/Performance & Statistics  

November 30, 2008 (unaudited)

 

 

 

For the six-month period ended November 30, 2008, PIMCO Municipal Income Fund II returned (38.16)% on net asset value and (41.34)% on market price, compared to (19.82)% and (27.73)%, respectively for the Lipper Analytical General Municipal Debt Funds Leveraged (the “Benchmark”) average.

 

 

Municipal bond yields increased across the curve in all but the shortest maturities during the six-month period ended November 30, 2008.

 

 

Duration hedging strategies significantly detracted from performance during the period. Thirty-year Treasury and London Interbank Offered Rate (“LIBOR”) swaps rallied significantly, while municipal rates increased as investors moved away from risky assets.

 

 

Municipal to Treasury yield ratios moved higher during the reporting period crossing all time high levels in September, while continuing higher in October and November, continually setting new records along the way. The 10-year ratio increased to 138% and 30-year ratio increased to 156%.

 

 

Exposure to corporate backed munis detracted from performance as this sector underperformed during the period due to continued stress in the corporate sector.

 

 

Tobacco securitization sector holdings detracted from performance as muni investors continue to focus demand on the highest quality sectors of the market while avoiding lower quality higher yielding securities such as tobacco bonds.

 

 

Exposure to zero coupon municipals detracted from performance as their longer durations caused underperformance as rates moved higher during the reporting period, especially in the longer maturity portion of the yield curve. The Barclays Capital Zero Coupon Index returned (15.16)% for the six-month period ended November 30, 2008.

 

 

The Fund was generally positioned with a significant portion of its exposure in longer dated maturities due to the attractiveness of that portion of the curve. This detracted from performance as the muni curve steepened significantly during the period with longer rates increasing and most investors buying in the shorter maturity portion of the curve. The 15-, 20-, and 30-year maturity AAA General Obligation yields increased by 72, 80, and 87 basis points respectively while the two-year yield decreased by 13 basis points.

 

 

Long Municipals significantly underperformed Long Treasuries and also underperformed the taxable debt sector during the period as investors moved out of risky assets into Treasuries due to market volatility and continued uncertainty. The Barclays Capital Long Municipal Bond Index returned (14.77)% while the Long Government/Credit and the Long Barclays Capital Treasury Indices returned (1.36)% and 13.61%, respectively.

 

 

Municipal bond issuance remains at increased levels; although there has been a slow down in the furious pace of the first half of the year beginning in September. Although issuance has been stalled somewhat, municipalities have picked up their issuance again in order to meet upcoming funding needs. During the six-month period, issuance totaled over $367.7 billion compared to $400.42 billion for the same period a year ago.


 

 

 

 

 

 

 

 

Total Return(1):

 

 

  Market Price

 

Net Asset Value (“NAV”)

 

               

Six Months

 

 

(41.34

)%

 

(38.16

)%

               

1 Year

 

 

(37.85

)%

 

(38.63

)%

               

5 Year

 

 

(4.52

)%

 

(5.01

)%

               

Commencement of Operations (6/28/02) to 11/30/08

 

 

(3.31

)%

 

(2.13

)%

               

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 11/30/08

(LINE GRAPH)

 

 

 

 

 

Market Price/NAV:

 

 

 

 

         

Market Price

 

$

8.00

 

         

NAV

 

$

8.30

 

         

Discount to NAV

 

 

(3.61

)%

         

Market Price Yield(2)

 

 

9.75

%

         

 

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

 

 


(PIE CHART)


(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 less than one year is not annualized. 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 November 30, 2008.

2  PIMCO Municipal Income Funds II Semi-Annual Report  | 11.30.08


 

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

November 30, 2008 (unaudited)

 

 

 

For the six-month period ended November 30, 2008, PIMCO California Municipal Income Fund II returned (42.32)% on net asset value and (52.98)% on market price, compared to (52.96)% and (30.07)%, respectively for the Lipper California Municipal Debt Funds—Leveraged (the “Benchmark”) average.

 

 

Municipal bond yields increased across the curve in all but the shortest maturities during the six-month period ended November 30, 2008.

 

 

Duration hedging strategies significantly detracted from performance during the reporting period. Thirty-year Treasury and London Interbank Offered Rate (“LIBOR”) swaps rallied significantly, while municipal rates increased as investors moved away from risky assets.

 

 

Municipal to Treasury yield ratios moved higher during the period crossing all time high levels in September, while continuing higher in October and November, continually setting new records along the way. The 10-year ratio increased to 138% and 30-year ratio increased to 156%.

 

 

Exposure to hospital related munis detracted from performance as this sector underperformed the national market during the period.

 

 

Tobacco securitization sector holdings detracted from Fund performance as muni investors continue to focus demand on the highest quality sectors of the market while avoiding lower quality higher yielding securities such as tobacco bonds.

 

 

Exposure to zero coupon municipals detracted from Fund performance as their longer durations caused underperformance as rates moved higher during the period, especially in the longer maturity portion of the yield curve. The Barclays Capital Zero Coupon Index returned (15.16)% for the six-month period ended November 30, 2008.

 

 

Long Municipals significantly underperformed Long Treasuries and also underperformed the taxable debt sector during the period as investors moved out of risky assets into Treasuries due to market volatility and continued uncertainty. The Barclays Capital Long Municipal Bond Index returned (14.17)% while the Long Government/Credit and the Long Barclays Capital Treasury Indices returned (1.36)% and 13.61%, respectively.

 

 

Municipal bond issuance remains at increased levels; although we have seen a slow down in the furious pace of the first half of the year beginning in September. Although issuance has been stalled somewhat, municipalities have picked up their issuance again in order to meet upcoming funding needs. During the six-month period, issuance totaled over $367.7 billion compared to $400.42 billion for the same period a year ago.

 

 

Municipal bonds within California underperformed the Barclays Capital Municipal Bond Index returning (6.33)% and (4.98)%, respectively for the period. Year-to-date, California continues to lead all other states in new issue volume. The state’s issuance has decreased 20% from the same period last year to $51.6 billion.

 

 

The Fund was generally positioned with a significant portion of its exposure in longer dated maturities due to the attractiveness of that portion of the curve. This detracted from performance as long muni rates increased during this period. The shape of the California State AAA insured municipal yield curve steepened during the reporting period. Five-year maturity yields increased 26 basis points, 10-year yields increased 75 basis points, and 30-year yields increased 140 basis points.


 

 

 

 

 

 

 

 

Total Return(1):

 

 

  Market Price

 

Net Asset Value (“NAV”

)

               

Six Months

 

 

(52.98

)%

 

(42.32

)%

               

1 Year

 

 

(51.12

)%

 

(42.63

)%

               

5 Year

 

 

(8.41

)%

 

(6.36

)%

               

Commencement of Operations (6/28/02) to 11/30/08

 

 

(6.54

)%

 

(3.80

)%

               

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 11/30/08

(LINE GRAPH)

 

 

 

 

 

Market Price/NAV:

 

 

 

 

         

Market Price

 

$

6.44

 

         

NAV

 

$

7.42

 

         

Discount to NAV

 

 

(13.21

)%

         

Market Price Yield(2)

 

 

13.04

%

         

 

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

 

 


(PIE CHART)


(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 and capital gain distributions have been reinvested. 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.

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 November 30, 2008.

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  3


 

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

November 30, 2008 (unaudited)

 

 

 

For the six-month period ended November 30, 2008, PIMCO New York Municipal Income Fund II returned (32.61)% on net asset value and (41.51)% on market price, compared to (41.54)% and (32.08)%, respectively for the Lipper New York Municipal Debt Funds—Leveraged (the “Benchmark”) average.

 

 

Municipal bond yields increased across the curve in all but the shortest maturities during the six-month reporting period ended November 30, 2008.

 

 

Duration hedging strategies significantly detracted from performance during the period. Thirty-year Treasury and London Interbank Offered Rate (“LIBOR”) swaps rallied significantly, while municipal rates increased as investors moved away from risky assets.

 

 

Municipal to Treasury yield ratios moved higher during the period crossing all time high levels in September, while continuing higher in October and November, continually setting new records along the way. The 10-year ratio increased to 138% and 30-year ratio increased to 156%.

 

 

Exposure to hospital related munis detracted from performance as this sector underperformed the national market during the period.

 

 

Tobacco securitization sector holdings detracted from performance as muni investors continue to focus demand on the highest quality sectors of the market while avoiding lower quality higher yielding securities such as tobacco bonds.

 

 

Exposure to zero coupon municipals detracted from performance as their longer durations caused underperformance as rates moved higher during the period, especially in the longer maturity portion of the yield curve. The Barclays Capital Zero Coupon Index returned (15.16)% for the six-month period ended November 30, 2008.

 

 

Long Municipals significantly underperformed Long Treasuries and also underperformed the taxable debt sector during the period as investors moved out of risky assets into Treasuries due to market volatility and continued uncertainty. The Barclays Capital Long Municipal Bond Index returned (14.77)% while the Long Government/Credit and the Long Barclays Capital Treasury Indices returned (1.36)% and 13.61%, respectively.

 

 

Municipal bond issuance remains at increased levels; although we have seen a slow down in the furious pace of the first half of the year beginning in September. Although issuance has been stalled somewhat, municipalities have picked up their issuance again in order to meet upcoming funding needs. During the six-month period, issuance totaled over $367.7 billion compared to $400.42 billion for the same period a year ago.

 

 

Municipal bonds within New York performed in-line with the Barclays Capital Municipal Bond Index returning (4.94)% and (4.98)%, respectively for the period. Year-to-date, issuers in New York State have issued $38.1 billion in bonds, 37.5% higher than the same period last year. New York now ranks second among states in terms of issuance.

 

 

The Fund was generally positioned with a significant portion of its exposure in longer dated maturities due to the attractiveness of that portion of the curve. This detracted from performance as long muni rates increased over this period. The shape of the New York Insured AAA municipal yield curve steepened during the period. Five-year maturity AAA credits increased 17 basis points, 10-year maturities increased 57 basis points, and 30-year maturities increased 105 basis points.


 

 

 

 

 

 

 

 

Total Return(1):

 

 

  Market Price

 

Net Asset Value (“NAV”

)

               

Six Months

 

 

(41.51

)%

 

(32.61

)%

               

1 Year

 

 

(36.40

)%

 

(32.32

)%

               

5 Year

 

 

(4.38

)%

 

(3.30

)%

               

Commencement of Operations (6/28/02) to 11/30/08

 

 

(3.25

)%

 

(1.20

)%

               

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 11/30/08

(LINE GRAPH)

 

 

 

 

 

Market Price/NAV:

 

 

 

 

         

Market Price

 

$

8.14

 

         

NAV

 

$

8.92

 

         

Discount to NAV

 

 

(8.74

)%

         

Market Price Yield(2)

 

 

9.77

%

         

 

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

 

 

(PIE CHART)


(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 less than one year is not annualized. 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 November 30, 2008.

4  PIMCO Municipal Income Funds II Semi-Annual Report  | 11.30.08


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

               

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

MUNICIPAL BONDS & NOTES—92.7%

 

 

 

 

 

 

 

 

 

 

Alabama—2.4%

 

 

 

 

 

 

 

$

10,000

 

Birmingham Baptist Medical Centers Special Care Facs.

 

 

 

 

 

 

 

 

 

 

Financing Auth. Rev., 5.00%, 11/15/30, Ser. A

 

 

Baa1/NR

 

 

$ 6,781,000

 

 

1,750

 

Huntsville Health Care Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

5.75%, 6/1/32, Ser. B, (Pre-refunded @ $101, 6/1/12) (c)

 

 

A2/NR

 

 

1,939,070

 

 

13,580

 

Jefferson Cnty. Sewer Rev.,

 

 

 

 

 

 

 

 

 

 

4.75%, 2/1/38, Ser. B, (Pre-refunded @ $100,

 

 

 

 

 

 

 

 

 

 

8/1/12) (FGIC)(c)

 

 

Aaa/AAA

 

 

14,519,329

 

 

 

 

Montgomery BMC Special Care Facs. Financing Auth.

 

 

 

 

 

 

 

 

 

 

Rev. (MBIA),

 

 

 

 

 

 

 

 

1,235

 

5.00%, 11/15/29, Ser. B

 

 

A3/AA

 

 

1,073,832

 

 

2,200

 

Baptist Health, 5.00%, 11/15/24

 

 

A3/AA

 

 

2,185,612

 

 

2,650

 

Tuscaloosa Educational Building Auth. Rev., Stillman College,

 

 

 

 

 

 

 

 

 

 

5.00%, 6/1/26

 

 

NR/BBB-

 

 

1,854,126

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

28,352,969

 

 

 

 

 

 

 

 

 

     

 

 

 

Alaska—0.5%

 

 

 

 

 

 

 

 

5,900

 

Northern Tobacco Securitization Corp. Rev.,

 

 

 

 

 

 

 

 

 

 

5.00%, 6/1/46, Ser. A

 

 

Baa3/NR

 

 

3,280,872

 

 

3,550

 

State Housing Finance Corp. Rev., 5.25%, 6/1/32,

 

 

 

 

 

 

 

 

 

 

Ser. C (MBIA)

 

 

Aa2/AA

 

 

3,033,865

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

6,314,737

 

 

 

 

 

 

 

 

 

     

 

 

 

Arizona—6.6%

 

 

 

 

 

 

 

 

 

 

Health Facs. Auth. Rev.,

 

 

 

 

 

 

 

 

6,500

 

Beatitudes Project, 5.20%, 10/1/37

 

 

NR/NR

 

 

3,940,755

 

 

1,300

 

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

 

 

 

 

 

 

 

 

 

 

12/1/12) (c)

 

 

NR/BBB

 

 

1,447,251

 

 

 

 

Pima Cnty. Industrial Dev. Auth. Rev.,

 

 

 

 

 

 

 

 

3,500

 

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

 

 

NR/BBB-

 

 

2,378,880

 

 

29,700

 

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

 

 

Aa2/AA

 

 

25,572,294

 

 

41,100

 

Salt River Project Agricultural Improvement & Power Dist. Rev.,

 

 

 

 

 

 

 

 

 

 

5.00%, 1/1/37, Ser. A (h)

 

 

Aa1/AA

 

 

37,234,956

 

 

10,500

 

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

 

 

Aa3/AA-

 

 

6,725,145

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

77,299,281

 

 

 

 

 

 

 

 

 

     

 

 

 

Arkansas—0.1%

 

 

 

 

 

 

 

 

13,000

 

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

 

 

 

 

 

 

 

 

 

 

(AMBAC)

 

 

Aa3/NR

 

 

1,292,460

 

 

 

 

 

 

 

 

 

     

 

 

 

California—4.9%

 

 

 

 

 

 

 

 

9,610

 

Alameda Corridor Transportation Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

zero coupon, 10/1/16, Ser. A (AMBAC)

 

 

A3/AA

 

 

6,685,389

 

 

 

 

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

 

 

 

 

 

 

 

 

6,000

 

5.00%, 6/1/33,

 

 

Baa3/BBB

 

 

3,763,560

 

 

9,000

 

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

 

 

NR/AAA

 

 

10,287,090

 

 

 

 

State, GO,

 

 

 

 

 

 

 

 

28,600

 

5.00%, 11/1/37 (h)

 

 

A1/A+

 

 

23,822,084

 

 

9,550

 

5.00%, 12/1/37

 

 

A1/A+

 

 

7,954,099

 

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  5


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

               

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

 

 

 

California—(continued)

 

 

 

 

 

 

 

$

4,700

 

Statewide Community Dev. Auth. Rev., Baptist Univ.,

 

 

 

 

 

 

 

 

 

 

9.00%, 11/1/17, Ser. B (a)(d)

 

 

NR/NR

 

 

$ 4,335,609

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

56,847,831

 

 

 

 

 

 

 

 

 

     

 

 

 

Colorado—4.9%

 

 

 

 

 

 

 

 

11,250

 

Denver City & Cnty. Rev., 5.00%, 11/15/25, Ser. B (FSA)

 

 

Aaa/AAA

 

 

10,363,725

 

 

 

 

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

 

 

 

 

 

 

 

 

20,000

 

zero coupon, 9/1/35

 

 

Baa1/AA

 

 

2,647,600

 

 

15,000

 

zero coupon, 9/1/37

 

 

Baa1/AA

 

 

1,708,050

 

 

 

 

Health Facs. Auth. Rev.,

 

 

 

 

 

 

 

 

1,000

 

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

 

 

NR/NR

 

 

666,240

 

 

25,000

 

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

 

 

NR/AA

 

 

25,669,000

 

 

18,305

 

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

 

 

A1/A-

 

 

14,808,928

 

 

2,000

 

Housing & Finance Auth. Rev., Evergreen Country Day School,

 

 

 

 

 

 

 

 

 

 

5.875%, 6/1/37 (a)(d)

 

 

NR/BB

 

 

1,403,220

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

57,266,763

 

 

 

 

 

 

 

 

 

     

 

 

 

Florida—3.4%

 

 

 

 

 

 

 

 

2,310

 

Dev. Finance Corp. Rev., Learning Gate Community School,

 

 

 

 

 

 

 

 

 

 

6.00%, 2/15/37

 

 

NR/BBB-

 

 

1,683,805

 

 

2,335

 

Hillsborough Cnty. Industrial Dev. Auth. Pollution Control Rev.,

 

 

 

 

 

 

 

 

 

 

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

 

 

Baa2/BBB-

 

 

1,980,524

 

 

7,135

 

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

 

 

Aa1/AA

 

 

6,078,949

 

 

3,000

 

Leesburg Hospital Rev., Leesburg Regional Medical Center

 

 

 

 

 

 

 

 

 

 

Project, 5.50%, 7/1/32

 

 

Baa1/BBB+

 

 

2,207,280

 

 

 

 

Orange Cnty. Health Facs. Auth. Rev., Adventist Health

 

 

 

 

 

 

 

 

 

 

System,

 

 

 

 

 

 

 

 

2,550

 

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

 

 

NR/NR

 

 

2,824,252

 

 

5,000

 

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

 

 

NR/NR

 

 

5,608,900

 

 

500

 

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

 

 

NR/NR

 

 

325,045

 

 

6,205

 

State Governmental Utility Auth. Rev., Barefoot Bay Utilities

 

 

 

 

 

 

 

 

 

 

System, 5.00%, 10/1/29 (AMBAC)

 

 

Baa1/NR

 

 

5,610,747

 

 

5,000

 

Sumter Landing Community Dev. Dist. Rev.,

 

 

 

 

 

 

 

 

 

 

4.75%, 10/1/35, Ser. A (MBIA)

 

 

Baa1/AA

 

 

4,017,500

 

 

10,000

 

Tallahassee Rev., 5.00%, 10/1/37, Ser. 2617 (h)

 

 

Aa2/AA

 

 

9,080,300

 

 

1,500

 

Winter Springs Water & Sewer Rev., zero coupon,

 

 

 

 

 

 

 

 

 

 

10/1/29 (MBIA-FGIC)

 

 

NR/AA

 

 

453,195

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

39,870,497

 

 

 

 

 

 

 

 

 

     

 

 

 

Georgia—0.6%

 

 

 

 

 

 

 

 

2,775

 

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

 

 

NR/NR

 

 

1,693,055

 

 

9,600

 

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

 

 

Aaa/NR

 

 

4,951,776

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

6,644,831

 

 

 

 

 

 

 

 

 

     

 

 

 

Hawaii—1.4%

 

 

 

 

 

 

 

 

19,170

 

Honolulu City & Cnty. Wastewater System Rev., First Board

 

 

 

 

 

 

 

 

 

 

Resolution, 4.75%, 7/1/28 (MBIA-FGIC)

 

 

Aa3/NR

 

 

17,097,148

 

 

 

 

 

 

 

 

 

     

 

 

 

Illinois—19.1%

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

2,935

 

5.125%, 5/1/28

 

 

Aa3/NR

 

 

2,894,057

 

 

675

 

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

 

 

Aa3/NR

 

 

741,670

 

6  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

               

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

 

 

 

Illinois—(continued)

 

 

 

 

 

 

 

 

 

 

Chicago, GO (FGIC),

 

 

 

 

 

 

 

$

1,635

 

5.125%, 1/1/29, Ser. A

 

 

Aa3/AAA

 

 

$ 1,536,377

 

 

4,065

 

5.50%, 1/1/40

 

 

Aa3/AA-

 

 

3,912,725

 

 

 

 

Chicago, Lake Shore East, Special Assessment,

 

 

 

 

 

 

 

 

3,162

 

6.625%, 12/1/22

 

 

NR/NR

 

 

2,740,063

 

 

6,700

 

6.75%, 12/1/32

 

 

NR/NR

 

 

5,438,323

 

 

 

 

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

 

 

 

 

 

 

 

 

15,535

 

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

 

 

A1/AA

 

 

10,599,064

 

 

5,000

 

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

 

 

A1/AA

 

 

1,370,600

 

 

4,500

 

zero coupon, 12/1/31

 

 

A1/AA

 

 

988,065

 

 

 

 

Chicago City Colleges, GO (FGIC),

 

 

 

 

 

 

 

 

32,670

 

zero coupon, 1/1/37

 

 

Aa3/AA

 

 

5,262,157

 

 

29,145

 

zero coupon, 1/1/38

 

 

Aa3/AA

 

 

4,374,082

 

 

32,670

 

zero coupon, 1/1/39

 

 

Aa3/AA

 

 

4,566,939

 

 

5,000

 

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

 

 

Baa1/AA

 

 

4,831,650

 

 

6,440

 

Cook Cnty., GO, 5.00%, 11/15/28, Ser. A (MBIA-FGIC)

 

 

Aa2/AA

 

 

6,112,461

 

 

 

 

Finance Auth. Rev.,

 

 

 

 

 

 

 

 

2,500

 

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

 

 

NR/NR

 

 

1,690,300

 

 

250

 

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

 

 

NR/NR

 

 

168,825

 

 

 

 

Regency Park,

 

 

 

 

 

 

 

 

10,000

 

zero coupon, 7/15/23

 

 

NR/AAA

 

 

4,628,800

 

 

122,650

 

zero coupon, 7/15/25

 

 

NR/AAA

 

 

49,386,249

 

 

1,500

 

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

 

 

NR/NR

 

 

1,009,380

 

 

 

 

Health Facs. Auth. Rev,

 

 

 

 

 

 

 

 

5,000

 

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

 

 

Baa3/NR

 

 

3,524,200

 

 

20,100

 

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

 

 

Baa1/NR

 

 

16,554,762

 

 

 

 

Hillside, Tax Allocation, Mannheim Redev. Project,

 

 

 

 

 

 

 

 

4,500

 

6.55%, 1/1/20

 

 

NR/NR

 

 

3,895,200

 

 

2,900

 

7.00%, 1/1/28

 

 

NR/NR

 

 

2,353,002

 

 

 

 

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

 

 

 

 

 

 

 

 

60,000

 

zero coupon, 12/15/30

 

 

A1/AAA

 

 

15,037,800

 

 

50,000

 

zero coupon, 12/15/33

 

 

A1/AAA

 

 

10,106,500

 

 

2,460

 

zero coupon, 6/15/38

 

 

A1/AAA

 

 

362,506

 

 

68,470

 

State Sports Facs. Auth. Rev. zero coupon, 6/15/30

 

 

 

 

 

 

 

 

 

 

(converts to 5.50% on 6/16/10) (AMBAC)

 

 

Baa1/AA

 

 

58,689,060

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

222,774,817

 

 

 

 

 

 

 

 

 

     

 

 

 

Indiana—0.1%

 

 

 

 

 

 

 

 

4,125

 

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

 

 

Caa3/CCC+

 

 

613,883

 

 

990

 

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

 

 

NR/NR

 

 

633,095

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

1,246,978

 

 

 

 

 

 

 

 

 

     

 

 

 

Iowa—3.8%

 

 

 

 

 

 

 

 

 

 

Finance Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

Deerfield Retirement Community,

 

 

 

 

 

 

 

 

250

 

5.50%, 11/15/27, Ser. A

 

 

NR/NR

 

 

153,868

 

 

1,075

 

5.50%, 11/15/37

 

 

NR/NR

 

 

604,343

 

 

4,500

 

Edgewater LLC, 6.75%, 11/15/42

 

 

NR/NR

 

 

3,276,810

 

 

1,000

 

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

 

 

NR/NR

 

 

570,230

 

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  7


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

               

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

 

 

 

Iowa—(continued)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

$

46,000

 

5.60%, 6/1/34,

 

 

Baa3/BBB

 

 

$ 32,240,480

 

 

7,050

 

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

 

 

NR/AAA

 

 

7,626,972

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

44,472,703

 

 

 

 

 

 

 

 

 

     

 

 

 

Kansas—0.3%

 

 

 

 

 

 

 

 

2,800

 

Univ. of Kansas Hospital Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

5.625%, 9/1/32, (Pre-refunded @ $100, 9/1/12) (c)

 

 

NR/AAA

 

 

3,109,736

 

 

 

 

 

 

 

 

 

     

 

 

 

Kentucky—0.2%

 

 

 

 

 

 

 

 

2,500

 

Economic Dev. Finance Auth. Rev., Hospital Facs. Rev.,

 

 

 

 

 

 

 

 

 

 

Catholic Healthcare Partners, 5.25%, 10/1/30

 

 

A1/AA-

 

 

2,153,875

 

 

 

 

 

 

 

 

 

     

 

 

 

Louisiana—4.8%

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

20,400

 

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

 

 

Aaa/NR

 

 

21,651,132

 

 

3,300

 

5.50%, 5/15/47

 

 

A3/NR

 

 

2,424,147

 

 

44,395

 

Tobacco Settlement Financing Corp. Rev., 5.875%,

 

 

 

 

 

 

 

 

 

 

5/15/39, Ser. B

 

 

Baa3/BBB

 

 

32,175,276

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

56,250,555

 

 

 

 

 

 

 

 

 

     

 

 

 

Maryland—0.3%

 

 

 

 

 

 

 

 

 

 

Health & Higher Educational Facs. Auth. Rev.,

 

 

 

 

 

 

 

 

1,010

 

5.30%, 1/1/37

 

 

NR/NR

 

 

543,370

 

 

4,050

 

6.00%, 1/1/43

 

 

NR/BBB-

 

 

2,878,173

 

 

1,000

 

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

 

 

Baa2/NR

 

 

796,060

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

4,217,603

 

 

 

 

 

 

 

 

 

     

 

 

 

Massachusetts—6.1%

 

 

 

 

 

 

 

 

7,000

 

Boston Rev., 5.00%, 11/1/28, Ser. D (MBIA-FGIC)

 

 

Aa2/AA+

 

 

6,776,700

 

 

4,610

 

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

 

 

NR/NR

 

 

3,291,632

 

 

12,050

 

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

 

 

Aaa/AAA

 

 

10,171,526

 

 

 

 

State Turnpike Auth. Rev., Ser. A,

 

 

 

 

 

 

 

 

4,295

 

4.75%, 1/1/34 (AMBAC)

 

 

Baa1/AA

 

 

3,262,997

 

 

51,830

 

5.00%, 1/1/37 (MBIA)

 

 

Baa1/AA

 

 

40,473,529

 

 

10,325

 

5.00%, 1/1/39 (AMBAC)

 

 

Baa1/AA

 

 

7,924,954

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

71,901,338

 

 

 

 

 

 

 

 

 

     

 

 

 

Michigan—2.2%

 

 

 

 

 

 

 

 

4,545

 

Garden City Hospital Finance Auth. Rev., 5.00%,

 

 

 

 

 

 

 

 

 

 

8/15/38, Ser. A

 

 

NR/NR

 

 

2,495,614

 

 

800

 

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

 

 

NR/BBB-

 

 

610,352

 

 

500

 

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

 

 

NR/BB+

 

 

355,790

 

 

 

 

State Hospital Finance Auth. Rev.,

 

 

 

 

 

 

 

 

5,000

 

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

 

 

Aa1/AA

 

 

4,456,900

 

 

 

 

Oakwood Group, Ser. A,

 

 

 

 

 

 

 

 

13,500

 

5.75%, 4/1/32

 

 

A2/A

 

 

11,397,780

 

 

1,925

 

6.00%, 4/1/22

 

 

A2/A

 

 

1,863,131

 

 

6,000

 

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

 

 

NR/BBB

 

 

3,828,540

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

25,008,107

 

 

 

 

 

 

 

 

 

     

 

 

 

Minnesota—0.5%

 

 

 

 

 

 

 

 

1,300

 

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

 

 

NR/NR

 

 

903,760

 

 

1,500

 

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

 

 

NR/NR

 

 

965,745

 

8  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

                     

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

 

 

 

Minnesota—(continued)

 

 

 

 

 

 

 

$

280

 

Minneapolis, Tax Allocation, Grant Park Project, 5.35%, 2/1/30

 

 

NR/NR

 

 

$ 191,962

 

 

 

 

North Oaks Presbyterian Homes Rev.,

 

 

 

 

 

 

 

 

2,640

 

6.00%, 10/1/33

 

 

NR/NR

 

 

1,931,741

 

 

1,530

 

6.125%, 10/1/39

 

 

NR/NR

 

 

1,109,724

 

 

500

 

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

 

 

NR/NR

 

 

300,265

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

5,403,197

 

 

 

 

 

 

 

 

 

     

 

 

 

Mississippi—0.3%

 

 

 

 

 

 

 

 

3,605

 

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

 

 

Ba1/BBB

 

 

2,851,014

 

 

740

 

Dev. Bank Special Obligation Projects & Equipment

 

 

 

 

 

 

 

 

 

 

Acquisitions Rev., 5.00%, 7/1/24 (AMBAC)

 

 

Baa1/AA

 

 

637,421

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

3,488,435

 

 

 

 

 

 

 

 

 

     

 

 

 

Missouri—0.3%

 

 

 

 

 

 

 

 

2,600

 

Branson Regional Airport Transportation Dev. Dist. Rev.,

 

 

 

 

 

 

 

 

 

 

6.00%, 7/1/37, Ser. A

 

 

NR/NR

 

 

1,679,392

 

 

740

 

Hanley Road & North of Folk Ave. Transportation Dist. Rev.,

 

 

 

 

 

 

 

 

 

 

5.00%, 10/1/25

 

 

NR/NR

 

 

542,028

 

 

1,500

 

St. Louis Parking Rev., Downtown Parking Facs.,

 

 

 

 

 

 

 

 

 

 

6.00%, 2/1/28, (Pre-refunded @ $100, 2/1/12) (c)

 

 

NR/NR

 

 

1,646,085

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

3,867,505

 

 

 

 

 

 

 

 

 

     

 

 

 

Nevada—0.2%

 

 

 

 

 

 

 

 

1,450

 

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

 

 

Aa1/AA+

 

 

1,332,550

 

 

1,620

 

State, GO, 5.00%, 5/15/28 (FGIC)

 

 

Aa1/AAA

 

 

1,475,302

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

2,807,852

 

 

 

 

 

 

 

 

 

     

 

 

 

New Hampshire—0.3%

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

360

 

6.125%, 7/1/32

 

 

Baa1/BBB+

 

 

263,232

 

 

2,640

 

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

 

 

Baa1/BBB+

 

 

3,003,317

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

3,266,549

 

 

 

 

 

 

 

 

 

     

 

 

 

New Jersey—2.4%

 

 

 

 

 

 

 

 

950

 

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

 

 

NR/NR

 

 

627,437

 

 

 

 

Economic Dev. Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

Arbor Glen,

 

 

 

 

 

 

 

 

525

 

6.00%, 5/15/28

 

 

NR/NR

 

 

402,775

 

 

225

 

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

 

 

NR/NR

 

 

234,412

 

 

 

 

Kapkowski Road Landfill, Special Assessment,

 

 

 

 

 

 

 

 

4,000

 

5.75%, 10/1/21

 

 

Baa3/NR

 

 

3,461,920

 

 

11,405

 

5.75%, 4/1/31

 

 

Baa3/NR

 

 

8,905,138

 

 

1,100

 

Seabrook Village, 5.25%, 11/15/36

 

 

NR/NR

 

 

665,885

 

 

 

 

Health Care Facs. Financing Auth. Rev.,

 

 

 

 

 

 

 

 

1,500

 

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

 

 

Baa2/BBB-

 

 

1,113,615

 

 

1,830

 

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

 

 

Baa3/BBB-

 

 

1,290,607

 

 

3,500

 

State Educational Facs. Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

Fairfield Dickinson Univ., 6.00%, 7/1/25, Ser. D

 

 

NR/NR

 

 

2,805,810

 

 

 

 

Tobacco Settlement Financing Corp. Rev.,

 

 

 

 

 

 

 

 

13,150

 

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

 

 

Baa3/BBB

 

 

7,361,107

 

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  9


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

                     

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

 

 

 

New Jersey—(continued)

 

 

 

 

 

 

 

$

1,285

 

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

 

 

Aaa/AAA

 

 

$ 1,438,712

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

28,307,418

 

 

 

 

 

 

 

 

 

     

 

 

 

New Mexico—0.3%

 

 

 

 

 

 

 

 

5,000

 

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

 

 

Baa3/BB+

 

 

3,924,750

 

 

 

 

 

 

 

 

 

     

 

 

 

New York—1.0%

 

 

 

 

 

 

 

 

1,200

 

Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., 6.00%,

 

 

 

 

 

 

 

 

 

 

11/15/36

 

 

NR/NR

 

 

800,880

 

 

10,000

 

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

 

 

Aa3/AA-

 

 

7,156,000

 

 

1,100

 

Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at

 

 

 

 

 

 

 

 

 

 

Harborside, 6.70%, 1/1/43, Ser. A

 

 

NR/NR

 

 

832,777

 

 

2,830

 

New York City Municipal Water Finance Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

5.00%, 6/15/37, Ser. D (h)

 

 

NR/AAA

 

 

2,562,706

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

11,352,363

 

 

 

 

 

 

 

 

 

     

 

 

 

North Carolina—0.1%

 

 

 

 

 

 

 

 

 

 

Medical Care Commission Rev.,

 

 

 

 

 

 

 

 

550

 

Salemtowne, 5.10%, 10/1/30

 

 

NR/NR

 

 

339,587

 

 

1,000

 

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

 

 

NR/NR

 

 

637,210

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

976,797

 

 

 

 

 

 

 

 

 

     

 

 

 

North Dakota—0.2%

 

 

 

 

 

 

 

 

3,710

 

Stark Cnty. Healthcare Rev., Benedictine Living Communities,

 

 

 

 

 

 

 

 

 

 

6.75%, 1/1/33

 

 

NR/NR

 

 

2,761,613

 

 

 

 

 

 

 

 

 

     

 

 

 

Ohio—0.6%

 

 

 

 

 

 

 

 

7,500

 

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

 

 

A1/AA-

 

 

6,571,950

 

 

 

 

 

 

 

 

 

     

 

 

 

Pennsylvania—5.3%

 

 

 

 

 

 

 

 

 

 

Allegheny Cnty. Hospital Dev. Auth. Rev.,

 

 

 

 

 

 

 

 

22,600

 

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

 

 

Ba3/BB  

 

 

12,740,298

 

 

470

 

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

 

 

Ba3/AAA

 

 

529,314

 

 

1,000

 

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

 

 

Ba3/AAA

 

 

1,142,980

 

 

5,700

 

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

 

 

Ba3/AAA

 

 

6,514,986

 

 

 

 

Cumberland Cnty. Auth., Retirement Community Rev.,

 

 

 

 

 

 

 

 

 

 

Messiah Village, Ser. A,

 

 

 

 

 

 

 

 

750

 

5.625%, 7/1/28

 

 

NR/BBB-

 

 

556,252

 

 

670

 

6.00%, 7/1/35

 

 

NR/BBB-

 

 

498,333

 

 

4,500

 

Wesley Affiliated Services,

 

 

 

 

 

 

 

 

 

 

7.25%, 1/1/35, Ser. A, (Pre-refunded @ $101, 1/1/13) (c)

 

 

NR/NR

 

 

5,253,525

 

 

3,250

 

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

 

 

NR/NR

 

 

2,367,235

 

 

 

 

Montgomery Cnty. Higher Education & Health Auth. Hospital Rev.,

 

 

 

 

 

 

 

 

 

 

Abington Memorial Hospital, Ser. A,

 

 

 

 

 

 

 

 

5,000

 

5.125%, 6/1/27

 

 

NR/A

 

 

4,052,150

 

 

3,750

 

5.125%, 6/1/32

 

 

NR/A

 

 

2,858,175

 

 

11,600

 

Philadelphia Hospitals & Higher Education Facs. Auth.

 

 

 

 

 

 

 

 

 

 

Hospital Rev.,

 

 

 

 

 

 

 

 

 

 

Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A

 

 

Baa3/BBB

 

 

9,449,012

 

 

17,000

 

Philadelphia, GO, 5.25%, 12/15/32, Ser. A (FSA)

 

 

Aaa/AAA

 

 

15,260,390

 

 

500

 

Pittsburgh & Allegheny Cntys. Public Auditorium Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

5.00%, 2/1/29 (AMBAC)

 

 

Baa1/AA

 

 

469,155

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

61,691,805

 

 

 

 

 

 

 

 

 

     

10  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

                     

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

 

 

 

Rhode Island—4.8%

 

 

 

 

 

 

 

$

76,200

 

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

 

 

Baa3/BBB

 

 

$ 56,094,630

 

 

 

 

 

 

 

 

 

     

 

 

 

South Carolina—3.0%

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

13,850

 

5.625%, 11/15/30

 

 

A3/A-

 

 

11,467,938

 

 

3,770

 

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

 

 

A3/A-

 

 

4,201,439

 

 

 

 

Lexington Cnty. Health Services Dist. Hospital Rev.,

 

 

 

 

 

 

 

 

10,800

 

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

 

 

A2/A+

 

 

12,113,172

 

 

3,400

 

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

 

 

A2/A+

 

 

3,836,016

 

 

3,250

 

Tobacco Settlement Rev. Management Auth. Rev.,

 

 

 

 

 

 

 

 

 

 

6.375%, 5/15/28, Ser. B, (Pre-refunded @ $101, 5/11/15) (c)

 

 

Baa3/BBB

 

 

3,492,580

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

35,111,145

 

 

 

 

 

 

 

 

 

     

 

 

 

Tennessee—0.5%

 

 

 

 

 

 

 

 

3,000

 

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

 

 

Baa1/AA-

 

 

2,020,980

 

 

3,750

 

Knox Cnty. Health Educational & Housing Facs. Board Rev.,

 

 

 

 

 

 

 

 

 

 

5.25%, 10/1/30

 

 

A1/AA-

 

 

3,230,775

 

 

500

 

Sullivan Cnty. Health Educational & Housing Facs. Rev.,

 

 

 

 

 

 

 

 

 

 

5.25%, 9/1/36, Ser. C

 

 

NR/BBB+

 

 

324,370

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

5,576,125

 

 

 

 

 

 

 

 

 

     

 

 

 

Texas—9.1%

 

 

 

 

 

 

 

 

10

 

Arlington Independent School Dist., GO, 5.00%,

 

 

 

 

 

 

 

 

 

 

2/15/24 (PSF-GTD)

 

 

Aaa/NR

 

 

10,000

 

 

 

 

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

 

 

 

 

 

 

 

 

130

 

5.50%, 2/15/33

 

 

Aaa/NR

 

 

131,892

 

 

4,350

 

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

 

 

Aaa/NR

 

 

4,947,429

 

 

6,500

 

Brazos Cnty. Health Facs. Dev. Corp. Rev., Franciscan

 

 

 

 

 

 

 

 

 

 

Services Corp., 5.375%, 1/1/32

 

 

NR/A-

 

 

4,754,165

 

 

2,700

 

Comal Cnty. Health Facs. Dev. Rev., McKenna Memorial

 

 

 

 

 

 

 

 

 

 

Hospital Project,

 

 

 

 

 

 

 

 

 

 

6.25%, 2/1/32, (Pre-refunded @ $100, 2/1/13) (c)

 

 

NR/AAA

 

 

3,082,752

 

 

20,000

 

Frisco Independent School Dist., GO, zero coupon, 8/15/34

 

 

 

 

 

 

 

 

 

 

(PSF-GTD)

 

 

Aaa/NR

 

 

3,912,800

 

 

700

 

HFDC of Central Texas, Inc. Rev., Village at Gleannloch Farms,

 

 

 

 

 

 

 

 

 

 

5.50%, 2/15/37, Ser. A

 

 

NR/NR

 

 

431,249

 

 

5,500

 

Houston Rev., 5.00%, 7/1/25, Ser. C (FGIC)

 

 

A1/AA

 

 

4,912,930

 

 

770

 

Keller Independent School Dist., GO, 4.875%, 8/15/31

 

 

 

 

 

 

 

 

 

 

(PSF-GTD)

 

 

Aaa/AAA

 

 

699,622

 

 

3,170

 

Little Elm Independent School Dist., GO,

 

 

 

 

 

 

 

 

 

 

5.30%, 8/15/29, Ser. A (PSF-GTD)

 

 

NR/AAA

 

 

3,173,645

 

 

6,250

 

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

 

 

A2/AA

 

 

5,451,000

 

 

 

 

North Harris Cnty. Regional Water Auth. Rev.,

 

 

 

 

 

 

 

 

10,300

 

5.25%, 12/15/33

 

 

A3/A+

 

 

8,872,832

 

 

10,300

 

5.50%, 12/15/38

 

 

A3/A+

 

 

9,016,517

 

 

5,000

 

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

 

 

A2/A-

 

 

4,472,450

 

 

2,000

 

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

 

 

Caa1/CCC

 

 

1,019,980

 

 

10,000

 

San Antonio Electric & Gas Sys Rev.,

 

 

 

 

 

 

 

 

 

 

5.00%, 2/1/32, Ser. 3247 (h)

 

 

Aa1/NR

 

 

9,263,300

 

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  11


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

                   

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

                   

 

 

 

Texas—(continued)

 

 

 

 

 

 

 

 

 

State, Mobility Fund, GO (h),

 

 

 

 

 

 

$

17,500

 

4.75%, 4/1/36

 

Aa1/AA

 

 

$ 15,323,350

 

 

10,025

 

4.75%, 4/1/35, Ser. A

 

Aa1/AA

 

 

9,000,746

 

 

1,000

 

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

 

Baa3/BBB-

 

 

729,430

 

 

 

 

State Turnpike Auth. Central Turnpike System Rev., Ser. A

 

 

 

 

 

 

 

 

 

(AMBAC),

 

 

 

 

 

 

 

10,000

 

zero coupon, 8/15/19

 

Baa1/AA

 

 

5,378,000

 

 

8,880

 

5.00%, 8/15/42

 

Baa1/AA

 

 

6,409,229

 

 

3,250

 

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

 

Aa1/AA

 

 

2,925,552

 

 

4,150

 

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

 

NR/NR

 

 

2,964,428

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

106,883,298

 

 

 

 

 

 

 

 

     

 

 

 

Virginia—0.1%

 

 

 

 

 

 

 

2,050

 

James City Cnty. Economic Dev. Auth. Rev., 5.50%,

 

 

 

 

 

 

 

 

 

7/1/37, Ser. A

 

NR/NR

 

 

1,274,546

 

 

 

 

 

 

 

 

     

 

 

 

Washington—1.2%

 

 

 

 

 

 

 

13,000

 

Health Care Facs. Auth. Rev., Virginia Mason Medical Center,

 

 

 

 

 

 

 

 

 

6.125%, 8/15/37, Ser. A

 

Baa2/BBB

 

 

9,127,560

 

 

6,800

 

State Housing Finance Commission Rev., Skyline at First Hill,

 

 

 

 

 

 

 

 

 

5.625%, 1/1/38, Ser. A

 

NR/NR

 

 

4,194,988

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

13,322,548

 

 

 

 

 

 

 

 

     

 

 

 

Wisconsin—0.8%

 

 

 

 

 

 

 

 

 

Badger Tobacco Asset Securitization Corp. Rev.,

 

 

 

 

 

 

 

1,125

 

6.00%, 6/1/17

 

Baa3/BBB

 

 

1,088,719

 

 

7,080

 

6.125%, 6/1/27

 

Baa3/BBB

 

 

6,691,308

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Health Oblig.,

 

 

 

 

 

 

 

90

 

5.375%, 10/1/30

 

NR/AA-

 

 

78,951

 

 

910

 

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

 

NR/AA-

 

 

991,536

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

8,850,514

 

 

 

 

 

 

 

 

     

 

 

 

Total Municipal Bonds & Notes (cost—$1,243,526,036)

 

 

 

 

1,083,655,269

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

 

VARIABLE RATE NOTES (f)—1.2%

 

 

 

 

Florida—0.2%

 

 

 

 

 

 

 

2,830

 

Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System,

 

 

 

 

 

 

 

 

 

5.00%, 11/15/31, Ser. C

 

A1/A+

 

 

2,270,990

 

 

 

 

 

 

 

 

     

 

 

 

Illinois—0.4%

 

 

 

 

 

 

 

5,000

 

State, GO, 8.12%, 4/1/27, Ser. 783 (FSA)(a)(d)(e)

 

Aaa/NR

 

 

5,017,400

 

 

 

 

 

 

 

 

     

 

 

 

Massachusetts—0.3%

 

 

 

 

 

 

 

2,200

 

State, GO, 1.10%, 11/1/30, Ser. 785 (FGIC-TCRS)(a)(d)(e)

 

Aa2/NR

 

 

3,018,290

 

 

 

 

 

 

 

 

     

 

 

 

Washington—0.3%

 

 

 

 

 

 

 

4,550

 

Central Puget Sound Regional Transit Auth. Sales Tax &

 

 

 

 

 

 

 

 

 

Motor Rev., 3.27%, 2/1/28, Ser. 360 (FGIC)(a)(d)(e)

 

Aa2/NR

 

 

3,797,840

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Rate Notes (cost—$14,778,778)

 

 

 

 

14,104,520

 

 

 

 

 

 

 

 

     

12  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


 

PIMCO Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

                   

 

Principal
Amount
(000)

 

 

 

 

 

Value

 

                   

U.S. TREASURY BILLS (g)—6.1%

 

$

71,160

 

0.01%-1.10%,12/11/08-2/26/09 (cost—$71,150,807)

 

 

 

 

$ 71,150,807

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments (cost—$1,329,455,621)—100.0%

 

 

 

 

$ 1,168,910,596

 

 

 

 

 

 

 

 

   

 

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  13


 

PIMCO California Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

                   

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

                   

CALIFORNIA MUNICIPAL BONDS & NOTES—90.1%

 

 

 

 

 

 

 

 

 

 

 

$

2,000

 

ABC Unified School Dist., GO, zero coupon, 8/1/23,

 

 

 

 

 

 

 

 

 

Ser. B (MBIA-FGIC)

 

A1/AA

 

 

$ 831,140

 

 

1,000

 

Alpine Union School Dist., GO, zero coupon, 8/1/24,

 

 

 

 

 

 

 

 

 

Ser. B (FSA)

 

Aaa/AAA

 

 

432,780

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Home (CA Mtg. Ins.),

 

 

 

 

 

 

 

5,300

 

5.20%, 11/15/22

 

NR/A+

 

 

5,141,318

 

 

26,000

 

5.35%, 11/15/32

 

NR/A+

 

 

23,453,040

 

 

2,000

 

Bay Area Gov’t Assoc., Lease Rev., 5.00%, 7/1/32,

 

 

 

 

 

 

 

 

 

Ser. 2002-1 (AMBAC)

 

Baa1/AA

 

 

1,777,040

 

 

1,945

 

Bay Area Gov’t Assoc., Special Assessment, Windmere

 

 

 

 

 

 

 

 

 

Ranch Dist.,

 

 

 

 

 

 

 

 

 

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

 

NR/AAA

 

 

2,208,761

 

 

1,085

 

Capistrano Unified School Dist.,

 

 

 

 

 

 

 

 

 

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

 

NR/NR

 

 

1,144,252

 

 

2,300

 

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

 

NR/AA

 

 

695,888

 

 

1,160

 

Chula Vista Dist., Special Tax,

 

 

 

 

 

 

 

 

 

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

 

NR/NR

 

 

1,267,161

 

 

 

 

Chula Vista Community Facs. Dist., Special Tax,

 

 

 

 

 

 

 

 

 

Eastlake Woods,

 

 

 

 

 

 

 

1,825

 

6.15%, 9/1/26

 

NR/NR

 

 

1,463,376

 

 

4,380

 

6.20%, 9/1/33

 

NR/NR

 

 

3,438,388

 

 

2,880

 

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

 

NR/NR

 

 

1,929,485

 

 

 

 

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

 

 

 

 

 

 

 

2,000

 

zero coupon, 8/1/23

 

NR/AA

 

 

818,260

 

 

3,535

 

zero coupon, 8/1/25

 

NR/AA

 

 

1,246,017

 

 

2,500

 

zero coupon, 8/1/27

 

NR/AA

 

 

760,625

 

 

1,410

 

Community College Financing Auth. Lease Rev.,

 

 

 

 

 

 

 

 

 

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

 

Baa1/AA

 

 

1,219,269

 

 

 

 

Coronado Community Dev. Agcy., Tax Allocation (AMBAC),

 

 

 

 

 

 

 

9,945

 

4.875%, 9/1/35

 

NR/AA

 

 

7,893,545

 

 

10,000

 

4.875%, 9/1/35 (h)

 

NR/AA

 

 

7,937,200

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Special Tax,

 

 

 

 

 

 

 

1,110

 

5.10%, 9/1/25 (AMBAC)

 

Baa1/AA

 

 

1,041,435

 

 

210

 

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

 

NR/NR

 

 

198,238

 

 

305

 

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

 

NR/NR

 

 

285,507

 

 

160

 

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

 

NR/NR

 

 

148,346

 

 

530

 

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

 

NR/NR

 

 

465,377

 

 

1,000

 

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

 

NR/NR

 

 

787,160

 

 

4,150

 

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

 

NR/NR

 

 

3,284,725

 

 

3,000

 

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

 

Baa1/AA

 

 

2,876,490

 

 

 

 

Educational Facs. Auth. Rev., Loyola Marymount Univ.,

 

 

 

 

 

 

 

3,475

 

zero coupon, 10/1/34, Ser. A (MBIA)

 

A2/NR

 

 

662,648

 

 

2,000

 

Woodbury Univ., 5.00%, 1/1/36

 

Baa3/BBB-

 

 

1,309,500

 

14  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


 

PIMCO California Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

                   

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

                   

 

 

 

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

 

 

 

 

 

 

$

1,560

 

zero coupon, 10/1/30

 

Baa1/AA

 

 

$ 362,201

 

 

1,265

 

zero coupon, 10/1/32

 

Baa1/AA

 

 

262,488

 

 

1,000

 

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

 

Aaa/AAA

 

 

321,170

 

 

2,440

 

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

 

Aaa/AAA

 

 

762,671

 

 

 

 

Foothill Eastern Corridor Agcy. Toll Road Rev.,

 

 

 

 

 

 

 

7,100

 

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

 

Aaa/AAA

 

 

2,967,587

 

 

3,270

 

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

 

Aaa/AAA

 

 

1,290,309

 

 

1,500

 

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

 

Baa1/AA

 

 

1,224,210

 

 

1,440

 

Fremont Community Dist., Special Tax, 5.30%, 9/1/30

 

NR/NR

 

 

1,039,781

 

 

 

 

Golden State Tobacco Securitization Corp. Rev.,

 

 

 

 

 

 

 

2,000

 

zero coupon, 6/1/37, Ser. A-2

 

Baa3/BBB

 

 

844,980

 

 

8,000

 

5.00%, 6/1/33, Ser. A-1

 

Baa3/BBB

 

 

5,018,080

 

 

10,000

 

5.00%, 6/1/35, Ser. A (FGIC) (h)

 

A2/A

 

 

7,674,400

 

 

45,000

 

5.00%, 6/1/38, Ser. A (FGIC) (h)

 

A2/A

 

 

32,496,300

 

 

11,985

 

5.00%, 6/1/45, Ser. A (AMBAC-TCRS)

 

A2/AA

 

 

8,578,264

 

 

6,000

 

5.00%, 6/1/45, Ser. A (FGIC-TCRS)

 

A2/A

 

 

4,201,620

 

 

995

 

6.25%, 6/1/33, Ser. A-1

 

Aaa/AAA

 

 

1,057,317

 

 

31,200

 

6.75%, 6/1/39, Ser. A-1, (Pre-refunded @ $100,

 

 

 

 

 

 

 

 

 

6/1/13) (c)

 

NR/AAA

 

 

35,661,912

 

 

 

 

Health Facs. Finance Auth. Rev.,

 

 

 

 

 

 

 

4,000

 

Adventist Health System, 5.00%, 3/1/33

 

NR/A

 

 

3,070,560

 

 

495

 

Catholic Healthcare West, 5.00%, 7/1/28,

 

A2/A

 

 

379,947

 

 

2,115

 

Hope Rehabilitation, 5.375%, 11/1/20 (CA Mtg. Ins.)

 

NR/A+

 

 

1,950,072

 

 

 

 

Paradise VY Estates (CA Mtg. Ins.),

 

 

 

 

 

 

 

5,500

 

5.125%, 1/1/22

 

NR/A+

 

 

4,854,685

 

 

3,875

 

5.25%, 1/1/26

 

NR/A+

 

 

3,309,715

 

 

1,750

 

Huntington Beach Community Facs. Dist., Special Tax,

 

 

 

 

 

 

 

 

 

6.30%, 9/1/32

 

NR/NR

 

 

1,409,397

 

 

200

 

Infrastructure & Economic Dev. Bank Rev., Bay Area Toll

 

 

 

 

 

 

 

 

 

Bridges, 5.00%, 7/1/36, (Pre-refunded @ $100,

 

 

 

 

 

 

 

 

 

1/1/28) (AMBAC)(c)

 

Aaa/AAA

 

 

202,702

 

 

7,000

 

Irvine Improvement Board Act 1915, Special Assessment,

 

 

 

 

 

 

 

 

 

5.70%, 9/2/26

 

NR/NR

 

 

5,388,250

 

 

1,000

 

Irvine Unified School Dist., Special Tax, 5.125%, 9/1/36, Ser. A

 

NR/NR

 

 

672,360

 

 

1,900

 

Jurupa Unified School Dist., GO, zero coupon, 5/1/27

 

 

 

 

 

 

 

 

 

(MBIA-FGIC)

 

NR/AA

 

 

567,625

 

 

2,450

 

Kings Canyon JT Unified School Dist., GO, zero coupon,

 

 

 

 

 

 

 

 

 

8/1/27 (MBIA-FGIC)

 

NR/AA

 

 

772,754

 

 

5,300

 

Livermore-Amador Valley Water Management Agcy. Rev.,

 

 

 

 

 

 

 

 

 

5.00%, 8/1/31, Ser. A (AMBAC)

 

A1/AA

 

 

4,604,587

 

 

 

 

Los Angeles, CP (MBIA),

 

 

 

 

 

 

 

9,895

 

5.00%, 2/1/27

 

A1/AA

 

 

9,461,896

 

 

2,685

 

5.00%, 10/1/27, Ser. AU

 

A2/AA

 

 

2,549,703

 

 

 

 

Los Angeles Department of Water & Power Rev.,

 

 

 

 

 

 

 

15,000

 

4.75%, 7/1/30, Ser. A-2 (FSA)(h)

 

Aaa/AAA

 

 

12,856,050

 

 

30,000

 

5.00%, 7/1/35, Ser. A (FSA)(h)

 

Aaa/AAA

 

 

26,537,400

 

 

16,950

 

5.125%, 7/1/41, Ser. A (FGIC-TCRS)

 

Aa3/AA

 

 

15,068,380

 

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  15


 

PIMCO California Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

$

1,000

 

Manhattan Beach Unified School Dist., GO, zero coupon,

 

 

 

 

 

 

 

 

 

9/1/25 (MBIA-FGIC)

 

Aa3/AA

 

 

$ 368,610

 

 

 

 

Manteca Redev. Agcy., Tax Allocation,

 

 

 

 

 

 

 

7,295

 

5.00%, 10/1/32 (FSA)

 

Aaa/AAA

 

 

6,556,965

 

 

10,000

 

5.00%, 10/1/36 (AMBAC)

 

Baa1/AA

 

 

8,481,100

 

 

 

 

Manteca Unified School Dist., Special Tax (MBIA),

 

 

 

 

 

 

 

2,365

 

zero coupon, 9/1/25

 

Baa1/AA

 

 

798,826

 

 

5,330

 

5.00%, 9/1/29, Ser. C

 

Baa1/AA

 

 

4,817,094

 

 

4,000

 

Merced Cnty., CP, Juvenile Justice Correctional Fac.,

 

 

 

 

 

 

 

 

 

5.00%, 6/1/32 (AMBAC)

 

A3/NR

 

 

3,527,880

 

 

 

 

Modesto Elementary School Dist. Stanislaus Cnty., GO,

 

 

 

 

 

 

 

 

 

Ser. A (MBIA-FGIC),

 

 

 

 

 

 

 

2,615

 

zero coupon, 8/1/23

 

A1/AA

 

 

1,110,146

 

 

2,705

 

zero coupon, 8/1/24

 

A1/AA

 

 

1,068,448

 

 

2,000

 

zero coupon, 5/1/27

 

A1/AA

 

 

646,380

 

 

2,150

 

Modesto High School Dist. Stanislaus Cnty., GO,

 

 

 

 

 

 

 

 

 

zero coupon, 8/1/26, Ser. A (MBIA-FGIC)

 

A1/AA

 

 

722,615

 

 

2,385

 

Monrovia Financing Auth. Lease Rev.,

 

 

 

 

 

 

 

 

 

Hillside Wilderness Preserve, 5.125%, 12/1/31 (AMBAC)

 

Baa1/AA

 

 

2,121,648

 

 

 

 

Montebello Unified School Dist., GO,

 

 

 

 

 

 

 

1,485

 

zero coupon, 8/1/24 (FSA)

 

Aaa/AAA

 

 

577,710

 

 

1,500

 

zero coupon, 8/1/24 (MBIA-FGIC)

 

NR/AA

 

 

569,490

 

 

2,830

 

zero coupon, 8/1/25 (MBIA-FGIC)

 

NR/AA

 

 

996,641

 

 

2,775

 

zero coupon, 8/1/27 (MBIA-FGIC)

 

NR/AA

 

 

842,407

 

 

4,700

 

Moreno Valley Unified School Dist. Community Facs. Dist.,

 

 

 

 

 

 

 

 

 

Special Tax, 5.20%, 9/1/36

 

NR/NR

 

 

3,206,387

 

 

2,400

 

Morgan Hill Unified School Dist., GO, zero coupon,

 

 

 

 

 

 

 

 

 

8/1/23 (FGIC)

 

NR/AAA

 

 

1,124,256

 

 

3,245

 

Newark Unified School Dist., GO, zero coupon,

 

 

 

 

 

 

 

 

 

8/1/26, Ser. D (FSA)

 

Aaa/AAA

 

 

1,109,498

 

 

19,805

 

Oakland, GO, 5.00%, 1/15/27, Ser. A (MBIA-FGIC)(h)

 

A1/A+

 

 

17,954,619

 

 

 

 

Palmdale Community Redev. Agcy., Tax Allocation (AMBAC),

 

 

 

 

 

 

 

1,230

 

zero coupon, 12/1/30

 

Baa1/AA

 

 

298,041

 

 

1,230

 

zero coupon, 12/1/31

 

Baa1/AA

 

 

280,686

 

 

1,225

 

zero coupon, 12/1/32

 

Baa1/AA

 

 

260,325

 

 

1,750

 

Paramount Unified School Dist., GO, zero coupon, 9/1/23,

 

 

 

 

 

 

 

 

 

Ser. B (FSA)

 

Aaa/AAA

 

 

744,642

 

 

 

 

Perris Public Financing Auth. Rev., Tax Allocation, Ser. C,

 

 

 

 

 

 

 

780

 

5.375%, 10/1/20

 

NR/A

 

 

763,581

 

 

1,800

 

5.625%, 10/1/31

 

NR/A

 

 

1,678,464

 

 

10,000

 

Placentia-Yorba Linda Unified School Dist., CP,

 

 

 

 

 

 

 

 

 

5.00%, 10/1/32 (MBIA-FGIC)

 

A2/AA

 

 

8,513,300

 

 

10,150

 

Placer Union High School Dist., GO, zero coupon, 8/1/33 (FSA)

 

Aaa/AAA

 

 

2,126,222

 

 

 

 

Poway Unified School Dist., Special Tax,

 

 

 

 

 

 

 

 

 

Community Facs. Dist. No. 6, Area A,

 

 

 

 

 

 

 

2,700

 

5.125%, 9/1/28

 

NR/BBB

 

 

1,967,328

 

 

3,000

 

5.60%, 9/1/33

 

NR/BBB

 

 

2,354,160

 

 

1,000

 

6.05%, 9/1/25

 

NR/NR

 

 

803,110

 

 

5,500

 

6.125%, 9/1/33

 

NR/NR

 

 

4,286,590

 

16  PIMCO Municipal Income Funds II Semi-Annual Report 11.30.08


 

PIMCO California Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

$

1,000

 

Community Facs. Dist. No. 10, 5.65%, 9/1/25

 

NR/NR

 

 

$ 781,250

 

 

2,000

 

Rancho Cucamonga Community Facs. Dist.,

 

 

 

 

 

 

 

 

 

Special Tax, 6.375%, 9/1/31, Ser. A

 

NR/NR

 

 

1,636,660

 

 

1,500

 

Richmond Wastewater Rev., zero coupon, 8/1/30 (FGIC)

 

Baa3/AA-

 

 

425,685

 

 

3,510

 

Riverside, CP, 5.00%, 9/1/33 (AMBAC)

 

Baa1/AA

 

 

3,024,778

 

 

 

 

Riverside Unified School Dist. Community Facs. Dist. No. 15,

 

 

 

 

 

 

 

 

 

Special Tax, Ser. A,

 

 

 

 

 

 

 

1,000

 

5.15%, 9/1/25

 

NR/NR

 

 

752,950

 

 

1,000

 

5.25%, 9/1/30

 

NR/NR

 

 

710,770

 

 

1,000

 

5.25%, 9/1/35

 

NR/NR

 

 

690,910

 

 

 

 

Rocklin Unified School Dist., GO (FGIC),

 

 

 

 

 

 

 

5,000

 

zero coupon, 8/1/24 (MBIA)

 

A1/AA

 

 

1,960,000

 

 

4,000

 

zero coupon, 8/1/25 (MBIA)

 

A1/AA

 

 

1,458,000

 

 

4,000

 

zero coupon, 8/1/26

 

A1/AA

 

 

1,355,960

 

 

4,500

 

zero coupon, 8/1/27 (MBIA)

 

A1/AA

 

 

1,419,345

 

 

 

 

Roseville Redev. Agcy., Tax Allocation (MBIA),

 

 

 

 

 

 

 

3,730

 

5.00%, 9/1/27, Ser. B

 

A3/AA

 

 

3,381,916

 

 

3,365

 

5.00%, 9/1/32

 

A3/AA

 

 

2,862,269

 

 

2,030

 

5.00%, 9/1/33

 

A3/AA

 

 

1,716,020

 

 

4,335

 

Sacramento City Financing Auth. Rev.,

 

 

 

 

 

 

 

 

 

North Natomas CFD No. 2, 6.25%, 9/1/23, Ser. A

 

NR/NR

 

 

3,633,597

 

 

 

 

San Diego Cnty. Water Auth., CP, Ser. A (MBIA),

 

 

 

 

 

 

 

8,285

 

5.00%, 5/1/28

 

Aa3/AA+

 

 

7,527,834

 

 

8,000

 

5.00%, 5/1/29

 

Aa3/AA+

 

 

7,214,080

 

 

1,200

 

San Diego Community Facs. Dist. No. 3,

 

 

 

 

 

 

 

 

 

Special Tax, 5.60%, 9/1/21, Ser. A (a)

 

NR/NR

 

 

1,045,980

 

 

1,000

 

San Diego Public Facs. Financing Auth. Lease Rev. (MBIA),

 

 

 

 

 

 

 

 

 

5.00%, 5/15/29, Ser. A (FGIC)

 

A3/A+

 

 

864,040

 

 

1,500

 

Fire & Life Safety Facs., 5.00%, 4/1/32

 

Baa1/AA

 

 

1,170,390

 

 

11,000

 

Water Rev., 5.00%, 8/1/32

 

A3/AA

 

 

9,212,830

 

 

5,585

 

San Francisco City & Cnty. Airports Commission Rev.,

 

 

 

 

 

 

 

 

 

4.50%, 5/1/28, Ser. 2 (MBIA)

 

A1/AA

 

 

4,485,314

 

 

10,405

 

San Joaquin Hills Transportation Corridor Agcy. Toll Road Rev.,

 

 

 

 

 

 

 

 

 

zero coupon, 1/1/25

 

Aaa/AAA

 

 

4,348,978

 

 

 

 

San Jose, Libraries & Parks, GO,

 

 

 

 

 

 

 

14,970

 

5.00%, 9/1/32, Ser. 760 (MBIA)(h)

 

Aa1/AAA

 

 

14,058,477

 

 

10,190

 

5.125%, 9/1/31

 

Aa1/AAA

 

 

9,785,966

 

 

9,150

 

San Jose Unified School Dist., GO,

 

 

 

 

 

 

 

 

 

Santa Clara Cnty., 5.00%, 8/1/27, Ser. A (FSA)(h)

 

Aaa/AAA

 

 

8,508,036

 

 

 

 

San Juan Unified School Dist., GO (FSA),

 

 

 

 

 

 

 

1,770

 

zero coupon, 8/1/23

 

Aaa/AAA

 

 

751,418

 

 

6,105

 

zero coupon, 8/1/26

 

Aaa/AAA

 

 

2,087,361

 

 

2,300

 

San Mateo Union High School Dist., GO, zero coupon,

 

 

 

 

 

 

 

 

 

9/1/20 (MBIA-FGIC)

 

Aa3/AA

 

 

1,234,364

 

 

1,730

 

San Rafael City High School Dist., GO, 5.00%, 8/1/27,

 

 

 

 

 

 

 

 

 

Ser. B (FSA)

 

Aaa/AAA

 

 

1,662,893

 

 

3,280

 

San Rafael Elementary School Dist., GO, 5.00%, 8/1/27,

 

 

 

 

 

 

 

 

 

Ser. B (FSA)

 

Aaa/AAA

 

 

3,134,106

 

 

 

 

Santa Clara Unified School Dist., GO (MBIA),

 

 

 

 

 

 

 

2,155

 

5.00%, 7/1/25

 

Baa1/AA

 

 

2,010,076

 

 

3,040

 

5.00%, 7/1/27

 

Baa1/AA

 

 

2,776,371

 

11.30.08 PIMCO Municipal Income Funds II Semi-Annual Report  17


 

PIMCO California Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

                   

$

1,260

 

Santa Cruz Cnty., CP, 5.25%, 8/1/32

 

A3/NR

 

 

$ 1,200,881

 

 

 

 

Santa Margarita Water Dist., Special Tax,

 

 

 

 

 

 

 

2,000

 

6.00%, 9/1/30, (Pre-refunded @ $100, 9/1/13) (c)

 

NR/NR

 

 

2,274,760

 

 

815

 

6.25%, 9/1/29, (Pre-refunded @ $102, 9/1/09) (c)

 

NR/NR

 

 

860,917

 

 

2,185

 

6.25%, 9/1/29

 

NR/NR

 

 

1,803,084

 

 

2,000

 

Santa Monica Community College Dist., GO,

 

 

 

 

 

 

 

 

 

zero coupon, 8/1/26, Ser. C (MBIA)

 

Aa2/AA

 

 

660,900

 

 

 

 

Saugus Hart School Facs. Financing Auth. Community Facs. Dist.,

 

 

 

 

 

 

 

 

 

Special Tax,

 

 

 

 

 

 

 

1,140

 

6.10%, 9/1/32

 

NR/NR

 

 

892,791

 

 

2,155

 

6.125%, 9/1/33

 

NR/NR

 

 

1,679,564

 

 

1,000

 

Shasta Union High School Dist., GO, zero coupon, 8/1/24 (FGIC)

 

NR/AA

 

 

392,000

 

 

2,745

 

South Tahoe JT Powers Parking Financing Auth. Rev.,

 

 

 

 

 

 

 

 

 

7.00%, 12/1/27, Ser. A

 

NR/NR

 

 

2,124,822

 

 

1,800

 

Southern Mono Health Care Dist., GO, zero coupon,

 

 

 

 

 

 

 

 

 

8/1/26 (MBIA)

 

Baa1/AA

 

 

584,622

 

 

 

 

State, GO,

 

 

 

 

 

 

 

400

 

5.00%, 6/1/37

 

A1/A+

 

 

333,448

 

 

14,400

 

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

 

A1/A+

 

 

11,994,336

 

 

2,400

 

5.00%, 12/1/37

 

A1/A+

 

 

1,998,936

 

 

 

 

Statewide Community Dev. Auth. Rev.,

 

 

 

 

 

 

 

1,600

 

Baptist Univ., 5.50%, 11/1/38, Ser. A

 

NR/NR

 

 

968,128

 

 

3,495

 

Bentley School, 6.75%, 7/1/32 (a)(b)

 

NR/NR

 

 

2,805,646

 

 

 

 

Catholic Healthcare West,

 

 

 

 

 

 

 

1,800

 

5.50%, 7/1/31, Ser. D

 

A2/A

 

 

1,517,490

 

 

1,800

 

5.50%, 7/1/31, Ser. E

 

A2/A

 

 

1,517,472

 

 

1,250

 

Huntington Park Chapter School, 5.25%, 7/1/42, Ser. A

 

NR/NR

 

 

804,025

 

 

9,700

 

Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.)

 

NR/A+

 

 

8,196,112

 

 

2,770

 

Kaiser Permanente, 5.50%, 11/1/32, Ser. A

 

NR/A+

 

 

2,287,134

 

 

3,000

 

Live Oak School, 6.75%, 10/1/30

 

NR/NR

 

 

2,474,610

 

 

500

 

Peninsula Project, 5.00%, 11/1/29

 

NR/NR

 

 

330,190

 

 

1,170

 

Wildwood Elementary School, CP, 6.10%, 11/1/15 (a)(b)

 

NR/NR

 

 

1,160,839

 

 

1,365

 

Windrush School, 5.50%, 7/1/37

 

NR/NR

 

 

907,889

 

 

 

 

Statewide Financing Auth. Tobacco Settlement Rev.,

 

 

 

 

 

 

 

1,610

 

5.625%, 5/1/29

 

Baa3/NR

 

 

1,253,466

 

 

20,000

 

6.00%, 5/1/37, Ser. B

 

Baa3/NR

 

 

13,862,400

 

 

 

 

Tobacco Securitization Agcy. Rev.,

 

 

 

 

 

 

 

4,500

 

Alameda Cnty., 6.00%, 6/1/42

 

Baa3/NR

 

 

3,036,960

 

 

 

 

Fresno Cnty.,

 

 

 

 

 

 

 

3,400

 

5.625%, 6/1/23

 

Baa3/BBB

 

 

3,390,956

 

 

10,000

 

6.00%, 6/1/35

 

Baa3/BBB

 

 

7,086,100

 

 

6,600

 

Gold Cnty., zero coupon, 6/1/33

 

NR/BBB

 

 

626,274

 

 

1,800

 

Stanislaus Funding, 5.875%, 6/1/43, Ser. A

 

Baa3/NR

 

 

1,188,756

 

 

8,000

 

Tobacco Securitization Auth. of Southern California Rev.,

 

 

 

 

 

 

 

 

 

5.00%, 6/1/37, Ser. A-1

 

Baa3/BBB

 

 

4,701,600

 

 

995

 

Tracy Community Facs. Dist., Special Tax,

 

 

 

 

 

 

 

 

 

South Macarthur Area, 6.00%, 9/1/27

 

NR/NR

 

 

801,542

 

18  PIMCO Municipal Income Funds II Semi-Annual Report 11.30.08


 

PIMCO California Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

 

 

 

Univ. Rev.,

 

 

 

 

 

 

$

5,500

 

4.75%, 5/15/35, Ser. F (FSA)(h)

 

NR/AAA

 

 

$ 4,630,835

 

 

5,000

 

4.75%, 5/15/35, Ser. G (FGIC)(h)

 

Aa1/AA

 

 

4,117,200

 

 

5,650

 

4.75%, 5/15/38, Ser. B

 

Aa2/AA-

 

 

4,638,876

 

 

10,000

 

Ventura Cnty. Community College Dist. GO,

 

 

 

 

 

 

 

 

 

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

 

Aa3/AA

 

 

9,498,800

 

 

1,555

 

Ventura Unified School Dist., GO, 5.00%, 8/1/32, Ser. F (FSA)

 

Aaa/AAA

 

 

1,431,455

 

 

 

 

Victor Elementary School Dist., GO, Ser. A (MBIA-FGIC),

 

 

 

 

 

 

 

1,125

 

zero coupon, 8/1/24

 

A2/AA

 

 

431,066

 

 

2,410

 

zero coupon, 8/1/26

 

A2/AA

 

 

796,240

 

 

1,000

 

Vista Unified School Dist., GO, zero coupon, 8/1/26, Ser. A (FSA)

 

Aaa/AAA

 

 

344,850

 

 

 

 

West Contra Costa Unified School Dist., GO, Ser. A (MBIA),

 

 

 

 

 

 

 

2,740

 

5.00%, 8/1/26

 

Baa1/AA

 

 

2,512,772

 

 

2,690

 

5.00%, 8/1/28

 

Baa1/AA

 

 

2,313,319

 

 

1,890

 

5.00%, 8/1/31

 

Baa1/AA

 

 

1,587,146

 

 

2,000

 

William S. Hart JT School Financing Auth. Rev., 5.625%,

 

 

 

 

 

 

 

 

 

9/1/34

 

NR/BBB+

 

 

1,568,740

 

 

2,110

 

Yuba City Unified School Dist., GO, zero coupon, 9/1/25

 

 

 

 

 

 

 

 

 

(MBIA-FGIC)

 

A3/AA

 

 

777,767

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total California Municipal Bonds & Notes (cost—$665,086,980)

 

 

 

 

580,869,853

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

OTHER MUNICIPAL BONDS & NOTES—3.4%

 

 

 

 

 

 

 

 

 

Iowa—1.7%

 

 

 

 

 

 

 

16,100

 

Tobacco Settlement Auth. of Iowa Rev., 5.60%, 6/1/34, Ser. B

 

Baa3/BBB

 

 

11,284,168

 

 

 

 

 

 

 

 

   

 

 

 

 

New York—0.3%

 

 

 

 

 

 

 

1,900

 

New York City Municipal Water Finance Auth. Rev. Ser. D

 

 

 

 

 

 

 

 

 

5.00%, 6/15/37, Ser. 3240 (h)

 

Aa2/AAA

 

 

1,720,545

 

 

 

 

 

 

 

 

   

 

 

 

 

Pennsylvania—0.4%

 

 

 

 

 

 

 

4,300

 

Allegheny Cnty. Hospital Dev. Auth. Rev., 5.375%, 11/15/40,

 

 

 

 

 

 

 

 

 

Ser. A

 

Ba3/BB

 

 

2,424,039

 

 

 

 

 

 

 

 

   

 

 

 

 

Puerto Rico—1.0%

 

 

 

 

 

 

 

2,200

 

Aqueduct & Sewer Auth. Rev., 6.00%, 7/1/38, Ser. A

 

Baa3/BBB-

 

 

1,927,750

 

 

2,505

 

Public Building Auth. Rev., Gov’t Facs., 5.00%, 7/1/36,

 

 

 

 

 

 

 

 

 

Ser. I (GTD)

 

Baa3/BBB-

 

 

1,955,077

 

 

 

 

Sales Tax Financing Corp. Rev., Ser. A (AMBAC),

 

 

 

 

 

 

 

32,600

 

zero coupon, 8/1/47

 

A1/AA

 

 

2,100,418

 

 

12,500

 

zero coupon, 8/1/54

 

A1/A+

 

 

418,375

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

6,401,620

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Municipal Bonds & Notes (cost—$31,929,020)

 

 

 

 

21,830,372

 

 

 

 

 

 

 

 

   

 

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  19


 

PIMCO California Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

OTHER VARIABLE RATE NOTES (f)—0.8%

 

 

 

 

 

 

 

 

 

Puerto Rico—0.8%

 

 

 

 

 

 

$

5,300

 

Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A

 

 

 

 

 

 

 

 

 

(cost—$5,496,535)

 

Ba1/BBB-

 

 

$ 5,275,408

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

U.S. TREASURY BILLS (g)—5.7%

 

 

 

 

 

 

 

36,470

 

0.01%-1.10%, 12/11/08-2/26/09 (cost—$36,465,321)

 

 

 

 

36,465,321

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments (cost—$738,977,856)—100.0%

 

 

 

 

$ 644,440,954

 

 

 

 

 

 

 

 

   

 

20  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


 

PIMCO New York Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

NEW YORK MUNICIPAL BONDS & NOTES—87.2%

 

 

 

 

 

 

$

250

 

Buffalo Municipal Water Finance Auth.,

 

 

 

 

 

 

 

 

 

Water System Rev., 5.00%, 7/1/27, Ser. B, (Pre-refunded

 

 

 

 

 

 

 

 

 

@ $100, 7/1/12) (FSA)(c)

 

Aaa/AAA

 

 

$ 274,315

 

 

2,400

 

Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., 6.00%,

 

 

 

 

 

 

 

 

 

11/15/36

 

NR/NR

 

 

1,601,760

 

 

10,000

 

Erie Cnty. Tobacco Asset Securitization Corp. Rev.,

 

 

 

 

 

 

 

 

 

6.50%, 7/15/32, (Pre-refunded @ $101, 7/15/10) (c)

 

NR/AAA

 

 

10,837,400

 

 

1,700

 

Liberty Dev. Corp. Rev.,

 

 

 

 

 

 

 

 

 

5.50%, 10/1/37

 

Aa3/AA-

 

 

1,256,011

 

 

2,500

 

Goldman Sachs Headquarters,

 

 

 

 

 

 

 

 

 

5.25%, 10/1/35, Ser. 1251 (h)

 

Aa3/AA-

 

 

1,789,000

 

 

 

 

Metropolitan Transportation Auth. Rev.,

 

 

 

 

 

 

 

1,850

 

5.00%, 11/15/30, Ser. A (FSA)

 

Aaa/AAA

 

 

1,573,036

 

 

10,000

 

5.25%, 11/15/31, Ser. E

 

A2/A

 

 

8,719,700

 

 

7,000

 

5.35%, 7/1/31, Ser. B

 

A1/AAA

 

 

6,273,330

 

 

3,570

 

Mortgage Agcy. Rev., 4.75%, 10/1/27, Ser. 128

 

Aa1/NR

 

 

2,903,481

 

 

2,400

 

Nassau Cnty. Industrial Dev. Agcy. Rev.,

 

 

 

 

 

 

 

 

 

Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A

 

NR/NR

 

 

1,816,968

 

 

 

 

New York City Health & Hospital Corp. Rev.,

 

 

 

 

 

 

 

1,100

 

5.375%, 2/15/26, Ser. A

 

A1/A+

 

 

994,433

 

 

2,000

 

5.45%, 2/15/26, Ser. A

 

A1/A+

 

 

1,823,680

 

 

 

 

New York City Industrial Dev. Agcy. Rev.,

 

 

 

 

 

 

 

975

 

Eger Harbor, 4.95%, 11/20/32, (GNMA)

 

NR/AA+

 

 

812,565

 

 

1,415

 

Liberty Interactive Corp., 5.00%, 9/1/35

 

Ba2/BB+

 

 

945,914

 

 

1,205

 

Staten Island Univ. Hospital, 6.45%, 7/1/32

 

B2/NR

 

 

887,892

 

 

1,500

 

United Jewish Appeal Fed., 5.00%, 7/1/27

 

Aa1/NR

 

 

1,450,605

 

 

 

 

Yankee Stadium,

 

 

 

 

 

 

 

5,000

 

5.00%, 3/1/31, (FGIC)

 

Baa3/BBB-

 

 

3,922,500

 

 

2,400

 

5.00%, 3/1/36, (MBIA)

 

Baa1/AA

 

 

1,820,304

 

 

 

 

New York City Municipal Water Finance Auth.,

 

 

 

 

 

 

 

 

 

Water & Sewer System Rev. (h),

 

 

 

 

 

 

 

7,500

 

4.50%, 6/15/33, Ser. C

 

Aa2/AA+

 

 

6,091,050

 

 

15,000

 

5.00%, 6/15/32, Ser. A

 

NR/AAA

 

 

14,047,950

 

 

10,000

 

New York City Transitional Finance Auth. Rev., 5.00%,

 

 

 

 

 

 

 

 

 

11/1/27, Ser. B

 

Aa1/AAA

 

 

9,609,300

 

 

7,785

 

New York City Trust for Cultural Res. Rev., 5.00%, 2/1/34,

 

 

 

 

 

 

 

 

 

(MBIA-FGIC)

 

Aa3/AA

 

 

6,993,421

 

 

4,000

 

New York City, GO, 5.00%, 3/1/33, Ser. I

 

Aa3/AA

 

 

3,458,600

 

 

3,600

 

Port Auth. of New York & New Jersey Rev.,

 

 

 

 

 

 

 

 

 

5.00%, 4/15/32, Ser. 125 (FSA)

 

Aaa/AAA

 

 

3,382,596

 

 

 

 

State Dormitory Auth. Rev.,

 

 

 

 

 

 

 

80

 

5.25%, 9/1/28, (Pre-refunded @ $102, 9/1/09) (Radian)(c)

 

A3/AA

 

 

84,103

 

 

1,320

 

5.25%, 9/1/28, (Radian)

 

A3/AA

 

 

1,213,885

 

 

7,490

 

5.50%, 5/15/31, Ser. A (AMBAC)

 

Aa3/AA

 

 

7,319,902

 

 

2,600

 

Catholic Health of Long Island, 5.10%, 7/1/34

 

Baa1/BBB

 

 

1,813,942

 

 

2,000

 

Kaleida Health Hospital, 5.05%, 2/15/25, (FHA)

 

NR/AAA

 

 

1,776,540

 

 

5,300

 

Lenox Hill Hospital, 5.50%, 7/1/30

 

Ba1/NR

 

 

3,521,161

 

 

1,000

 

New York Univ. Hospital, 5.625%, 7/1/37, Ser. B

 

Ba2/BB

 

 

697,810

 

 

5,850

 

North General Hospital, 5.00%, 2/15/25

 

NR/AA-

 

 

5,411,952

 

 

5,000

 

Rochester General Hospital, 5.00%, 12/1/35, (Radian)

 

A3/BBB+

 

 

3,805,850

 

 

4,270

 

Teachers College, 5.00%, 7/1/32, (MBIA)

 

A1/NR

 

 

4,011,067

 

 

2,000

 

Yeshiva Univ., 5.125%, 7/1/34, (AMBAC)

 

Aa2/NR

 

 

1,889,720

 

11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  21


 

PIMCO New York Municipal Income Fund II Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

               

$

2,000

 

State Environmental Facs. Corp.,

 

 

 

 

 

 

 

 

 

State Clean Water & Drinking Rev., 5.125%, 6/15/31

 

Aaa/AAA

 

 

$ 1,923,720

 

 

 

 

Tobacco Settlement Asset Backed, Inc. Rev.,

 

 

 

 

 

 

 

25,000

 

5.00%, 6/1/34, Ser. 1

 

NR/BBB

 

 

17,592,250

 

 

25,000

 

5.75%, 7/15/32, Ser. 1, (Pre-refunded @ $100, 7/15/12) (c)

 

Aaa/AAA

 

 

28,013,000

 

 

10,000

 

6.375%, 7/15/39, Ser. 1, (Pre-refunded @ $101, 7/15/09) (c)

 

Aaa/AAA

 

 

10,428,900

 

 

710

 

Triborough Bridge & Tunnel Auth. Rev., 5.00%, 1/1/32,

 

 

 

 

 

 

 

 

 

(FGIC-TCRS)

 

Aa2/AA-

 

 

644,524

 

 

1,815

 

Ulster Cnty. Industrial Dev. Agcy. Rev., 6.00%, 9/15/37, Ser. A

 

NR/NR

 

 

1,257,704

 

 

2,000

 

Warren & Washington Cntys. Industrial Dev. Agcy. Rev.,

 

 

 

 

 

 

 

 

 

Glens Falls Hospital, 5.00%, 12/1/35, Ser. A (FSA)

 

Aaa/AAA

 

 

1,772,740

 

 

750

 

Westchester Cnty. Industrial Dev. Agcy. Continuing Care

 

 

 

 

 

 

 

 

 

Retirement Rev., Kendal on Hudson, 6.50%, 1/1/34,

 

 

 

 

 

 

 

 

 

(Pre-refunded @ $100, 1/1/13) (c)

 

NR/NR

 

 

863,085

 

 

 

 

 

 

 

 

   

 

 

 

 

Total New York Municipal Bonds & Notes (cost—$206,139,420)

 

 

 

 

187,327,666

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

OTHER MUNICIPAL BONDS & NOTES—7.3%

 

 

 

 

 

 

 

 

 

California—3.2%

 

 

 

 

 

 

 

 

 

Alameda Unified School Dist., GO, Alameda Cnty.(FSA),

 

 

 

 

 

 

 

3,500

 

zero coupon, 8/1/24, Ser. A

 

Aaa/AAA

 

 

1,365,210

 

 

3,000

 

zero coupon, 8/1/25, Ser. A

 

Aaa/AAA

 

 

1,089,540

 

 

3,130

 

Covina Valley Unified School Dist.,

 

 

 

 

 

 

 

 

 

GO, zero coupon, 6/1/25, Ser. B (MBIA-FGIC)

 

NR/AA

 

 

1,143,295

 

 

5,000

 

Tobacco Securitization Agcy. Rev.,

 

 

 

 

 

 

 

 

 

Los Angeles Cnty., zero coupon, 6/1/28

 

Baa3/NR

 

 

3,258,350

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

6,856,395

 

 

 

 

 

 

 

 

   

 

 

 

 

Puerto Rico—4.1%

 

 

 

 

 

 

 

4,600

 

Aqueduct & Sewer Auth. Rev., 6.00%, 7/1/38, Ser. A

 

Baa3/BBB-

 

 

4,030,750

 

 

5,675

 

Children’s Trust Fund Tobacco Settlement Rev., 5.625%,

 

 

 

 

 

 

 

 

 

5/15/43

 

Baa3/BBB

 

 

3,947,587

 

 

 

 

Sales Tax Financing Corp. Rev.,

 

 

 

 

 

 

 

14,250

 

zero coupon, 8/1/54, Ser. A (AMBAC)

 

A1/A+

 

 

476,947

 

 

12,900

 

zero coupon, 8/1/56, Ser. A

 

A1/A+

 

 

355,395

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

8,810,679

 

 

 

 

 

 

 

 

   

 

 

 

 

Total Other Municipal Bonds & Notes (cost—$21,112,875)

 

 

 

 

15,667,074

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

NEW YORK VARIABLE RATE NOTES (a)(d)(f)—0.3%

 

 

 

 

 

 

 

1,300

 

State Urban Dev. Corp. Rev., 19.167%, 3/15/35

 

 

 

 

 

 

 

 

 

(cost—$1,405,204)

 

NR/AAA

 

 

682,760

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

OTHER VARIABLE RATE NOTES (f)—1.4%

 

 

 

 

 

 

 

 

 

California—0.5%

 

 

 

 

 

 

 

2,000

 

Golden State Tobacco Securitization Corp. Rev.,

 

 

 

 

 

 

 

 

 

5.00%, 6/1/35, Ser. A (FGIC) (a)(d)

 

A2/A

 

 

1,069,760

 

 

 

 

 

 

 

 

   

 

 

 

 

Puerto Rico—0.9%

 

 

 

 

 

 

 

1,900

 

Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A

 

Ba1/BBB-

 

 

1,891,184

 

 

 

 

 

 

 

 

   

 

 

 

 

Total Other Variable Rate Notes (cost—$3,970,456)

 

 

 

 

2,960,944

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

U.S. TREASURY BILLS (g)—3.8%

 

 

 

 

 

 

 

8,140

 

0.12%-1.10%,12/26/08-2/26/09 (cost—$8,138,717)

 

 

 

 

8,138,717

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments (cost—$240,766,672)—100.0%

 

 

 

 

$ 214,777,161

 

 

 

 

 

 

 

 

   

 

22  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


 

PIMCO Municipal Income Funds II Notes to Schedule of Investments

November 30, 2008 (unaudited)

 

 

 

 

 

   

Notes to Schedules of Investments:

 

(a)

Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $21,194,686, representing 1.81% of total investments in Municipal Income II. Securities with an aggregate value of $5,012,465, representing 0.78% of total investments in California Municipal Income II. Securities with an aggregate value of $1,752,520, representing 0.82% of total investments in New York Municipal II.

 

(b)

Illiquid security.

 

(c)

Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate).

 

(d)

144A Security—Security exempt from registration, under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.

 

(e)

Inverse Floater—The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on November 30, 2008.

 

(f)

Variable Rate Notes—Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on November 30, 2008.

 

(g)

All or partial amount segregated as collateral for swaps.

 

(h)

Residual Interest Bonds Held in Trust—Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Funds acquired the residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

   

 

Glossary:

AMBAC — insured by American Municipal Bond Assurance Corp.

CA Mtg. Ins. — insured by California Mortgage Insurance

CA St. Mtg. — insured by California State Mortgage

CP — Certificates of Participation

FGIC — insured by Financial Guaranty Insurance Co.

FHA — insured by Federal Housing Administration

FSA — insured by Financial Security Assurance, Inc.

GNMA — insured by Government National Mortgage Association

GO — General Obligation Bond

GTD — Guaranteed

IBC — Insurance Bond Certificate

MBIA — insured by Municipal Bond Investors Assurance

NR — Not Rated

PSF — Public School Fund

Radian — insured by Radian Guaranty, Inc.

TCRS — Temporary Custodian Receipts

See accompanying Notes to Financial Statements  | 11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  23


 

PIMCO Municipal Income Funds II Statements of Assets and Liabilities

November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal II

 

California   
Municipal II

 

New York   
Municipal II

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Investments, at value (cost—$1,329,455,621, $738,977,856 and $240,766,672, respectively)

 

 

$ 1,168,910,596

 

 

 

$ 644,440,954

 

 

 

$ 214,777,161

 

 

 

     

 

     

 

     

Cash

 

 

 

 

 

6,866,853

 

 

 

 

 

 

     

 

     

 

     

Premium for swaps purchased

 

 

39,583,727

 

 

 

21,398,729

 

 

 

6,520,624

 

 

 

     

 

     

 

     

Interest receivable

 

 

20,852,855

 

 

 

17,531,414

 

 

 

4,374,927

 

 

 

     

 

     

 

     

Receivable for investments sold

 

 

70,000

 

 

 

51,374

 

 

 

 

 

 

     

 

     

 

     

Prepaid expenses and other assets

 

 

52,401

 

 

 

401,469

 

 

 

358,396

 

 

 

     

 

     

 

     

Total Assets

 

 

1,229,469,579

 

 

 

690,690,793

 

 

 

226,031,108

 

 

 

     

 

     

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized depreciation on swaps

 

 

89,128,259

 

 

 

49,067,968

 

 

 

14,172,628

 

 

 

     

 

     

 

     

Payable for floating rate notes

 

 

81,697,152

 

 

 

110,420,820

 

 

 

13,552,563

 

 

 

     

 

     

 

     

Premium for swaps sold

 

 

48,000,000

 

 

 

26,000,000

 

 

 

8,000,000

 

 

 

     

 

     

 

     

Payable to custodian for cash overdraft

 

 

4,623,983

 

 

 

 

 

 

3,951,192

 

 

 

     

 

     

 

     

Dividends payable to common and preferred shareholders

 

 

3,960,485

 

 

 

2,211,247

 

 

 

724,919

 

 

 

     

 

     

 

     

Interest payable

 

 

3,403,811

 

 

 

8,708,932

 

 

 

480,619

 

 

 

     

 

     

 

     

Investment management fees payable

 

 

527,146

 

 

 

261,990

 

 

 

97,542

 

 

 

     

 

     

 

     

Accrued expenses and other payables

 

 

727,013

 

 

 

5,382,142

 

 

 

115,969

 

 

 

     

 

     

 

     

Total Liabilities

 

 

232,067,849

 

 

 

202,053,099

 

 

 

41,095,432

 

 

 

     

 

     

 

     

Preferred shares ($0.00001 par value and $25,000 net asset and liquidation value per share applicable to an aggregate of 20,200, 10,400 and 3,600 shares issued and outstanding, respectively)

 

 

505,000,000

 

 

 

260,000,000

 

 

 

90,000,000

 

 

 

     

 

     

 

     

Net Assets Applicable to Common Shareholders

 

 

$ 492,401,730

 

 

 

$ 228,637,694

 

 

 

$ 94,935,676

 

 

 

     

 

     

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

Composition of Net Assets Applicable to Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

Par value ($0.00001 per share)

 

 

$ 593

 

 

 

$ 308

 

 

 

$ 106

 

 

 

     

 

     

 

     

Paid-in-capital in excess of par

 

 

843,249,612

 

 

 

436,051,623

 

 

 

151,085,082

 

 

 

     

 

     

 

     

Undistributed (dividends in excess of) net investment income

 

 

2,499,400

 

 

 

(4,204,630

)

 

 

(1,091,114

)

 

 

     

 

     

 

     

Accumulated net realized loss

 

 

(103,674,286

)

 

 

(65,242,666

)

 

 

(14,635,408

)

 

 

     

 

     

 

     

Net unrealized depreciation of investments and swaps

 

 

(249,673,589

)

 

 

(137,966,941

)

 

 

(40,422,990

)

 

 

     

 

     

 

     

Net Assets Applicable to Common Shareholders

 

 

$ 492,401,730

 

 

 

$ 228,637,694

 

 

 

$ 94,935,676

 

 

 

     

 

     

 

     

Common Shares Outstanding

 

 

59,311,427

 

 

 

30,815,157

 

 

 

10,648,543

 

 

 

     

 

     

 

     

Net Asset Value Per Common Share

 

 

$ 8.30

 

 

 

$ 7.42

 

 

 

$ 8.92

 

 

 

     

 

     

 

     

24  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08 | See accompanying Notes to Financial Statements


 

PIMCO Municipal Income Funds II Statements of Operations

For the six months ended November 30, 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal II

 

California   
Municipal II

 

New York   
Municipal II

 

 

 

 

 

 

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

$ 39,684,097

 

 

 

$ 21,391,691

 

 

 

$ 6,530,564

 

 

 

 

     

 

     

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment management fees

 

 

3,963,395

 

 

 

1,987,390

 

 

 

714,566

 

 

 

 

     

 

     

 

     

 

Interest expense

 

 

2,453,651

 

 

 

3,355,022

 

 

 

254,151

 

 

 

 

     

 

     

 

     

 

Auction agent fees and commissions

 

 

646,615

 

 

 

334,930

 

 

 

123,517

 

 

 

 

     

 

     

 

     

 

Custodian and accounting agent fees

 

 

80,565

 

 

 

52,743

 

 

 

18,198

 

 

 

 

     

 

     

 

     

 

Legal fees

 

 

75,983

 

 

 

50,883

 

 

 

31,904

 

 

 

 

     

 

     

 

     

 

Shareholder communications

 

 

74,790

 

 

 

40,644

 

 

 

4,215

 

 

 

 

     

 

     

 

     

 

Trustees’ fees and expenses

 

 

62,903

 

 

 

35,785

 

 

 

20,869

 

 

 

 

     

 

     

 

     

 

Audit and tax services

 

 

45,483

 

 

 

28,929

 

 

 

13,899

 

 

 

 

     

 

     

 

     

 

New York Stock Exchange listing fees

 

 

28,618

 

 

 

14,975

 

 

 

12,938

 

 

 

 

     

 

     

 

     

 

Transfer agent fees

 

 

18,168

 

 

 

12,087

 

 

 

18,256

 

 

 

 

     

 

     

 

     

 

Insurance expense

 

 

4,237

 

 

 

2,336

 

 

 

1,112

 

 

 

 

     

 

     

 

     

 

Miscellaneous

 

 

6,745

 

 

 

6,357

 

 

 

3,300

 

 

 

 

     

 

     

 

     

 

Total expenses

 

 

7,461,153

 

 

 

5,922,081

 

 

 

1,216,925

 

 

 

 

     

 

     

 

     

 

Less: investment management fees waived

 

 

(358,646

)

 

 

(180,053

)

 

 

(64,541

)

 

 

 

     

 

     

 

     

 

custody credits earned on cash balances

 

 

(40,932

)

 

 

(10,890

)

 

 

(10,482

)

 

 

 

     

 

     

 

     

 

Net expenses

 

 

7,061,575

 

 

 

5,731,138

 

 

 

1,141,902

 

 

 

 

     

 

     

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

32,622,522

 

 

 

15,660,553

 

 

 

5,388,662

 

 

 

 

     

 

     

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and Change In Unrealized Gain (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(6,073,222

)

 

 

(6,428,795

)

 

 

512,921

 

 

 

 

     

 

     

 

     

 

Futures contracts

 

 

(7,068,860

)

 

 

(2,876,409

)

 

 

(960,187

)

 

 

 

     

 

     

 

     

 

Swaps

 

 

(12,370,154

)

 

 

(6,700,500

)

 

 

(2,061,692

)

 

 

 

     

 

     

 

     

 

Net change in unrealized appreciation/depreciation of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(208,559,433

)

 

 

(110,713,622

)

 

 

(32,249,341

)

 

 

 

     

 

     

 

     

 

Futures contracts

 

 

(6,565,336

)

 

 

(4,502,969

)

 

 

(1,197,641

)

 

 

 

     

 

     

 

     

 

Swaps

 

 

(89,128,259

)

 

 

(49,067,968

)

 

 

(14,172,628

)

 

 

 

     

 

     

 

     

 

Net realized and change in unrealized (loss) on investments, futures contracts and swaps

 

 

(329,765,264

)

 

 

(180,290,263

)

 

 

(50,128,568

)

 

 

 

     

 

     

 

     

 

Net Decrease in Net Assets Resulting from Investment Operations

 

 

(297,142,742

)

 

 

(164,629,710

)

 

 

(44,739,906

)

 

 

 

     

 

     

 

     

 

Dividends on Preferred Shares from Net Investment Income

 

 

(9,169,316

)

 

 

(4,720,836

)

 

 

(1,631,548

)

 

 

 

     

 

     

 

     

 

Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Investment Operations

 

 

$ (306,312,058

)

 

 

$ (169,350,546

)

 

 

$ (46,371,454

)

 

 

 

     

 

     

 

     

 

See accompanying Notes to Financial Statements | 11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report  25


 

 

PIMCO Municipal Income Funds II  

Statements of Changes in Net Assets

 

Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal II

 

 

 

 

Six months
ended
November 30, 2008
(unaudited)

 

Year ended
May 31, 2008

 

 

 

 

 

 

Investment Operations:

 

 

 

 

 

 

 

 

Net investment income

 

 

$ 32,622,522

 

 

 

$ 66,423,523

 

 

 

   

 

   

Net realized gain (loss) on investments, futures contracts and swaps

 

 

(25,512,236

)

 

 

5,404,191

 

 

 

   

 

   

Net change in unrealized appreciation/depreciation of investments, futures contracts and swaps

 

 

(304,253,028

)

 

 

(78,458,658

)

 

 

   

 

   

Net decrease in net assets resulting from investment operations

 

 

(297,142,742

)

 

 

(6,630,944

)

 

 

   

 

   

 

 

 

 

 

 

 

 

 

Dividends to Preferred Shareholders from Net investment income

 

 

(9,169,316

)

 

 

(17,559,291

)

 

 

   

 

   

Net decrease in net assets applicable to common shareholders resulting from investment operations

 

 

(306,312,058

)

 

 

(24,190,235

)

 

 

   

 

   

 

 

 

 

 

 

 

 

 

Dividends to Common Shareholders from Net Investment Income

 

 

(23,109,268

)

 

 

(46,046,478

)

 

 

   

 

   

 

 

 

 

 

 

 

 

 

Capital Share Transactions:

 

 

 

 

 

 

 

 

Reinvestment of dividends

 

 

2,083,433

 

 

 

3,161,576

 

 

 

   

 

   

Total decrease in net assets applicable to common shareholders

 

 

(327,337,893

)

 

 

(67,075,137

)

 

 

   

 

   

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders:

 

 

 

 

 

 

 

 

Beginning of period

 

 

819,739,623

 

 

 

886,814,760

 

 

 

   

 

   

End of period (including undistributed (dividends in excess of) net investment income of $2,499,400 and $2,155,462; $(4,204,630) and $(2,219,623); $(1,091,114) and $(621,423); respectively)

 

 

$ 492,401,730

 

 

 

$ 819,739,623

 

 

 

   

 

   

 

 

 

 

 

 

 

 

 

Common Shares Issued in Reinvestment of Dividends

 

 

162,941

 

 

 

223,853

 

 

 

   

 

   

26  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08 | See accompanying Notes to Financial Statements


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

California Municipal II

 

New York Municipal II

 

 

Six months
ended
November 30, 2008
(unaudited)

 

Year ended
May 31, 2008

 

Six months
ended
November 30, 2008
(unaudited)

 

Year ended
May 31, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 15,660,553

 

 

 

$ 32,439,150

 

 

 

$ 5,388,662

 

 

 

$ 11,390,311

 

   

 

   

 

   

 

   

 

(16,005,704

)

 

 

(9,422,890

)

 

 

(2,508,958

)

 

 

436,283

 

   

 

   

 

   

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(164,284,559

)

 

 

(36,237,871

)

 

 

(47,619,610

)

 

 

(12,133,193

)

   

 

   

 

   

 

   

 

(164,629,710

)

 

 

(13,221,611

)

 

 

(44,739,906

)

 

 

(306,599

)

   

 

   

 

   

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,720,836

)

 

 

(8,660,050

)

 

 

(1,631,548

)

 

 

(3,073,529

)

   

 

   

 

   

 

   

 

(169,350,546

)

 

 

(21,881,661

)

 

 

(46,371,454

)

 

 

(3,380,128

)

   

 

   

 

   

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,924,724

)

 

 

(25,748,032

)

 

 

(4,226,805

)

 

 

(8,420,559

)

   

 

   

 

   

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,143,615

 

 

 

2,114,952

 

 

 

433,791

 

 

 

682,941

 

   

 

   

 

   

 

   

 

(181,131,655

)

 

 

(45,514,741

)

 

 

(50,164,468

)

 

 

(11,117,746

)

   

 

   

 

   

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

409,769,349

 

 

 

455,284,090

 

 

 

145,100,144

 

 

 

156,217,890

 

   

 

   

 

   

 

   

 

$ 228,637,694

 

 

 

$ 409,769,349

 

 

 

$ 94,935,676

 

 

 

$ 145,100,144

 

   

 

   

 

   

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

94,230

 

 

 

150,398

 

 

 

34,653

 

 

 

48,516

 

   

 

   

 

   

 

   

See accompanying Notes to Financial Statements | 11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report 27


 

PIMCO California Municipal Income Fund II Statement of Cash Flows  

For the six months ended November 30, 2008 (unaudited)

 

 

 

 

 

 

 

Cash Flows provided by Operating Activities:

 

 

 

 

Purchases of long-term investments

 

 

$ (2,388,320

)

 

 

   

Proceeds from sales of long-term investments

 

 

161,306,879

 

 

 

   

Decrease in deposits with brokers for futures contracts collateral

 

 

5,940,000

 

 

 

   

Interest received

 

 

17,063,672

 

 

 

   

Net cash used for swap transactions

 

 

(2,099,229

)

 

 

   

Operating expenses paid

 

 

(2,448,567

)

 

 

   

Net cash used for futures transactions

 

 

(8,364,011

)

 

 

   

Net increase in short-term investments

 

 

(39,749,758

)

 

 

   

Net cash provided by operating activities

 

 

129,260,666

 

 

 

   

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Cash dividends paid (excluding reinvestment of $1,143,615)

 

 

(16,510,322

)

 

 

   

Payments to retire floating rate notes

 

 

(109,809,660

)

 

 

   

Cash paid on issuance of floating rate notes

 

 

(6,507,353

)

 

 

   

Net cash used for financing activities*

 

 

(132,827,335

)

 

 

   

 

 

 

 

Net decrease in cash

 

 

(3,566,669

)

 

 

   

Cash at beginning of period

 

 

10,433,522

 

 

 

   

Cash at end of period

 

 

6,866,853

 

 

 

   

 

 

 

 

 

Reconciliation of Net Decrease in Net Assets Resulting from Investment Operations to Net Cash Provided by Operating Activities:

 

 

 

 

Net decrease in net assets resulting from investment operations

 

 

(164,629,710

)

 

 

   

Decrease in deposits with brokers for futures contracts collateral

 

 

5,940,000

 

 

 

   

Decrease in interest receivable

 

 

1,178,980

 

 

 

   

Decrease in receivable for investments sold

 

 

1,099,078

 

 

 

   

Increase in premium for swaps purchased

 

 

(21,398,729

)

 

 

   

Increase in premium for swaps sold

 

 

26,000,000

 

 

 

   

Increase in prepaid expenses and other assets

 

 

(10,336

)

 

 

   

Decrease in investment management fees payable

 

 

(49,147

)

 

 

   

Increase in net unrealized depreciation on swaps

 

 

49,067,968

 

 

 

   

Decrease in net payable for variation margin on futures contracts

 

 

(984,634

)

 

 

   

Decrease in accrued expenses and other liabilities

 

 

(12,968

)

 

 

   

Net decrease in investments

 

 

233,060,164

 

 

 

   

 

 

 

 

 

 

 

   

Net cash provided by operating activities

 

 

$ 129,260,666

 

 

 

   

 

 

*

Supplemental Disclosure

 

 

Non-cash financing activity not included consists of interest expense on floating rate notes issued of $3,355,022.

28  PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08 | See accompanying Notes to Financial Statements


 

PIMCO Municipal Income Funds II Notes to Financial Statements  

November 30, 2008 (unaudited)

 

1. Organization and Significant Accounting Policies
PIMCO Municipal Income Fund II (‘‘Municipal II’’), PIMCO California Municipal Income Fund II (‘‘California Municipal II’’) and PIMCO New York Municipal Income Fund II (‘‘New York Municipal II’’), collectively referred to as the ‘‘Funds’’ or ‘‘PIMCO Municipal Income Funds II’’, were organized as Massachusetts business trusts on March 29, 2002. Prior to commencing operations on June 28, 2002, the Funds had no operations other than matters relating to their organization and registration as non-diversified, closed-end management investment companies registered under the Investment Company Act of 1940 and the rules and regulations thereunder, as amended. Allianz Global Investors Fund Management LLC (the “Investment Manager”), serves as the investment manager and is an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P. (“Allianz Global”). Allianz Global is an indirect, majority-owned subsidiary of Allianz SE, a publicly traded European insurance and financial services company. The Funds have an unlimited amount of no par value per share of common stock authorized.

Under normal market conditions, Municipal II invests substantially all of its assets in a portfolio of municipal bonds, the interest from which is exempt from federal income taxes. Under normal market conditions, California Municipal II invests substantially all of its assets in municipal bonds which pay interest that is currently exempt from federal and California state income taxes. Under normal market conditions, New York Municipal II invests substantially all of its assets in municipal bonds which pay interest that is currently exempt from federal, New York State and New York City income taxes. The Funds will seek to avoid investing in bonds generating interest income which could potentially subject individuals to alternative minimum tax. The issuers’ abilities to meet their obligations may be affected by economic and political developments in a specific state or region.

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

In the normal course of business the Funds enter into contracts that contain a variety of representations which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occured. However, the Funds expect the risk of any loss to be remote.

In July 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation No. 48, ‘‘Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109’’ (the ‘‘Interpretation’’). The Interpretation establishes for all entities, including pass-through entities such as the Funds, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. The Funds’ management has determined that its evaluation of the Interpretation has resulted in no material impact to the Funds’ financial statements at November 30, 2008. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

In March 2008, FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is