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OMB APPROVAL
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OMB Number: 3235-0578
Expires: February 28, 2006
Estimated average burden
hours per response: 20.0
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number: 811-21076
Registrant Name: PIMCO Municipal Income Fund II
Address of Principal Executive Offices: 1345 Avenue of the Americas New York,
New York 10105
Name and Address of Agent for Service: Lawrence G. Altadonna - 1345 Avenue of
the Americas New York, New York 10105
Registrant's telephone number, including area code: 212-739-3371
Date of Fiscal Year End: 5/31
Date of Reporting Period: 8/31/04
Form N-Q is to be used by the registered management investment company, other
than a small business investment company registered on Form N-5 (ss.ss. 239.24
and 274.5 of this chapter), to file reports with the Commission, not later than
60 days after the close of the first and third fiscal quarters, pursuant to rule
30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The
Commission may use the information provided on Form N-Q in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to the collection of information contained in Form N-Q 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 the Secretary,
Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC
20549-0609. The OMB has reviewed this collection of information under the
clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
AUGUST 31, 2004
(UNAUDITED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
-----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS & NOTES-89.2%
ALABAMA-2.4%
$11,145 Birmingham Waterworks & Sewer Board. Rev.,
5.00%, 1/1/27-1/1/37, Ser. B (MBIA) (a) ................................... Aaa/AA- $ 11,251,919
1,750 Huntsville Health Care Auth.,
5.75%, 6/1/32, Ser. B ..................................................... A2/NR 1,828,032
16,580 Jefferson Cnty. Sewer Rev.,
4.75%, 2/1/38, Ser. B (FGIC) .............................................. Aaa/AAA 18,350,910
------------
31,430,861
------------
ALASKA-0.3%
State Housing Fin. Corp.,
3,550 5.25%, 6/1/32, Ser. C (MBIA) .............................................. Aaa/AAA 3,593,275
------------
ARIZONA-0.1%
1,300 State Health Fac. Auth. Hosp. Rev.,
5.75%, 12/1/32 ............................................................ NR/BBB 1,274,962
------------
CALIFORNIA-4.9%
9,610 Alameda Corridor Transportation Auth. Rev., zero coupon, 10/1/16, Ser. A ....... Aaa/AAA 5,620,985
39,775 Economic Recovery G.O., 5.00%, 7/1/08-7/1/11, Ser. A ........................... Aa3/AA- 44,159,467
12,300 Golden State Tobacco Securitization Corp., Tobacco Settlement Rev.,
6.25%-6.75%, 6/1/33-6/1/39, Ser. 2003-A-1 ................................. Baa3/BBB 11,482,047
1,000 Rancho Cucamonga Community Facs. Dist.,
6.30%, 9/1/23, Ser. A ..................................................... NR/NR 1,029,690
4,000 Southern California Public Power Auth. Project Rev.,
zero coupon, 7/1/13 ....................................................... Aa3/A+ 2,771,440
------------
65,063,629
------------
COLORADO-4.9%
30,000 Dawson Ridge Dist. No. 1, GO,
zero coupon, 10/1/22, Ser. A .............................................. Aaa/NR 12,049,500
5,000 Denver Co. City & Cnty. Cert. of Participation,
5.50%, 12/1/25, Ser. B (AMBAC) ............................................ Aaa/AAA 5,769,900
25,000 Health Fac. Auth. Rev., Catholic Health Initiatives-A,
5.50%, 3/1/32 ............................................................. Aa2/AA 25,899,750
18,305 Health Fac. Auth. Rev., Exempla Inc.,
5.625%, 1/1/33, Ser. A .................................................... A1/A- 18,712,286
6,500 Health Fac. Auth. Rev., Liberty Height Retirement Fac.,
zero coupon, 7/15/22 ...................................................... Aaa/AAA 2,638,675
------------
65,070,111
------------
DISTRICT OF COLUMBIA-1.3%
17,500 Washington DC Convention Ctr. Auth. Tax Rev.,
4.75%, 10/1/28 (AMBAC) .................................................... Aaa/AAA 17,203,550
------------
FLORIDA-3.8%
8,000 Highlands Cnty. Health Fac. Auth. Rev.,
6.00%, 11/15/31, Ser. A ................................................... A2/A 8,489,280
635 Hillsborough Cnty. Health Fac. Indl. Dev. Rev.,
5.625%, 8/15/23 ........................................................... Baa2/BBB 620,878
2,335 Hillsborough Cnty. Pollution Control Rev., Tampa Electric Co. Proj.,
5.50%, 10/1/23 ............................................................ Baa2/BBB- 2,350,014
7,135 Jacksonville Health Facs. Auth. Rev.,
5.25%, 11/15/32, Ser. A ................................................... Aa2/AA 7,254,154
7,500 JEA St. Johns River Power Park Syst. Rev., 5.00%, 10/1/09 ...................... Aa2/AA- 8,290,725
11,500 Lakeland Hosp. Syst. Rev., Regional Health Sys.,
5.50%, 11/15/32 ........................................................... A1/NR 11,664,795
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
AUGUST 31, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA-(concluded)
$ 3,000 Leesburg Hosp. Rev., Leesburg Regional Medical Center,
5.50%, 7/1/32 ............................................................. A3/A $ 3,043,560
7,550 Orange Cnty. Health Fac., Adventist Health Sys.,
5.625%-6.25%, 11/15/24-11/15/32 ........................................... A2/A 8,083,802
1,500 Winter Springs Water & Sewer Rev.,
zero coupon, 10/1/29 (FGIC) ............................................... Aaa/AAA 411,975
------------
50,209,183
------------
GEORGIA-0.7%
4,000 Atlanta Water & Wastewater,
5.00%, 11/1/39, Ser. A (MBIA) ............................................. Aaa/AAA 4,050,520
1,500 Grantor Trust Gov't Cert. of Participation,
4.75%, 6/1/28, Ser. A (MBIA) .............................................. Aaa/AAA 1,512,705
9,600 Richmond Cnty. Dev Auth. Rev.,
zero coupon, 12/1/21 ...................................................... Aaa/NR 4,103,424
------------
9,666,649
------------
HAWAII-1.4%
19,170 Honolulu City & Cnty. Wastewater Syst. Rev., First Board Resolution,
4.75%, 7/1/28 (FGIC) ...................................................... Aaa/NR 19,168,850
------------
ILLINOIS-17.7%
11,760 Central Lake Cnty. Water Agy. Rev.,
5.125%, 5/1/28-5/1/32, Ser. A (AMBAC) ..................................... Aaa/NR 12,059,019
5,000 Cicero Corp. GO,
5.25%, 12/1/31 (MBIA) ..................................................... Aaa/AAA 5,203,900
Chicago Board of Education School Reform GO,
15,535 zero coupon, 12/1/16, Ser. A .............................................. Aaa/AAA 9,030,340
5,000 zero coupon, 12/1/28, Ser. A (FGIC) ....................................... Aaa/AAA 1,360,900
4,500 zero coupon, 12/1/31 (FGIC) ............................................... Aaa/AAA 1,031,670
94,485 Chicago City Colleges GO,
Zero coupon, 1/1/37-1/1/39 (FGIC) ......................................... Aaa/AAA 15,273,755
Chicago GO,
5,110 5.00%, 1/1/33, (AMBAC) .................................................... Aaa/AAA 5,178,116
10,000 5.00%, 3/1/34 ............................................................. Aa3/AA 10,060,100
5,050 5.125%, 1/1/29, Ser. A (FGIC) ............................................. Aaa/AAA 5,188,269
7,000 Chicago Midway Arpt. Rev.,
5.00%, 1/1/31, Ser. B (MBIA) .............................................. Aaa/AAA 7,059,920
9,862 Chicago Special Assessment, Lake Shore East
6.625%-6.75%, 12/1/22-12/1/32 ............................................. NR/NR 10,240,923
144,650 Dev. Fin. Auth. Retirement Housing Rev.,
zero coupon, 7/15/23-7/15/25 .............................................. NR/AAA 48,906,843
20,100 Health Facs. Auth. Rev., Elmurst Memorial Healthcare,
5.625%, 1/1/28 ............................................................ A2/NR 20,683,503
1,000 McHenry & Kane Counties Community Consolidated School Dist. 158,
zero coupon, 1/1/12 ....................................................... Aaa/AAA 751,870
110,000 Metropolitan Pier & Exposition Auth.,
zero coupon, 12/15/30-12/15/33 (MBIA) ..................................... Aaa/AAA 25,406,300
4,500 Schaumburg, GO, 5.00%, 12/1/41 (FGIC) .......................................... Aaa/AAA 4,513,995
68,470 State Sports Facs. Auth.,
5.50%, 6/15/30 (AMBAC) .................................................... Aaa/AAA 52,440,488
------------
234,389,911
------------
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
AUGUST 31, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA-0.6%
Brownsburg 1999 School Building Corp.,
$ 1,000 5.00%, 9/15/25 (FSA) ...................................................... Aaa/AAA $ 1,027,050
2,000 5.25%, 3/15/25 (FSA) ...................................................... Aaa/AAA 2,105,740
4,125 Fort Wayne Pollution Control Rev.,
6.20%, 10/15/25 ........................................................... Baa1/BBB 4,346,925
500 State Bank Rev.,
5.25%, 4/1/30, Ser. D (AMBAC) ............................................. Aaa/AAA 517,345
------------
7,997,060
------------
KANSAS -0.2%
2,800 Univ. of Kansas, Hosp. Auth. Health Facs. Rev.,
5.625%, 9/1/32 ............................................................ NR/A- 2,875,180
------------
KENTUCKY-0.9%
Economic Dev. Finance Auth. Hospital Facs. Rev.,
2,500 5.25%, 10/1/19-10/1/30 .................................................... A1/AA- 2,544,350
8,210 5.25%, 10/1/19-10/1/30 .................................................... A3/A 9,179,355
------------
11,723,705
------------
IOWA-0.5%
8,850 Tobacco Settlement Auth.,
5.60%, 6/1/35, Ser. B ..................................................... Baa3/BBB 7,015,306
------------
LOUISIANA-4.4%
20,400 Ochsner Clinic Foundation Pub. Facs. Auth. Rev.,
5.50%, 5/15/32, Ser. B .................................................... A3/NR 20,808,000
44,395 Tobacco Settlement Financing Corp.,
5.875%, 5/15/39, Ser. 2001B ............................................... Baa3/BBB 37,410,335
------------
58,218,335
------------
MARYLAND-0.1%
State Health & Higher Educational. Fac. Auth. Rev. John Hopkins Univ.,
1,000 5.00%, 7/1/41, Ser. B, .................................................... Baa1/NR 1,011,420
------------
MASSACHUSETTS-3.8%
1,300 Massachusetts Bay Trans. Auth.,
4.75%, 3/1/21, Ser. A (MBIA) .............................................. Aaa/AAA 1,321,996
18,205 State College Bldg. Auth. Proj. Rev., 5.50%, 5/1/28-5/1/39, Ser. B (XLCA) ...... Aaa/AAA 20,080,183
9,000 State GO, 5.00%, 8/1/11, Ser. A ................................................ Aaa/AAA 10,044,360
4,295 State Turnpike Auth.,
4.75%, 1/1/34, Ser. A (AMBAC) .............................................. Aaa/AAA 4,254,455
State Water Reserve Auth.,
12,050 4.75%, 8/1/37, Ser. A ..................................................... Aaa/AAA 11,832,859
2,300 4.75%, 12/1/21, Ser. B .................................................... Aaa/AAA 2,330,199
------------
49,864,052
------------
MICHIGAN-2.7%
10,250 Detroit City School Dist.,
5.00%-5.125%, 5/1/31-5/1/32, Ser. A ....................................... Aaa/AAA 10,388,648
2,500 Detroit Water Supply Sys.,
5.00%, 7/1/30, Ser. A (FGIC) .............................................. Aaa/AAA 2,525,750
2,000 State GO, 5.25%, 12/1/09 ...................................................... Aa1/AA+ 2,239,440
5,000 State Hosp. Fin. Auth. Rev., Ascension Health,
5.25%, 11/15/26, Ser. B ................................................... Aa2/AA 5,087,200
15,425 State Hosp. Fin. Auth. Rev., Oakwood Obligation Group,
5.75%-6.00%, 4/1/22, Ser. A ............................................... A2/A 16,012,212
------------
36,253,250
------------
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
AUGUST 31, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
-----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI-0.4%
$ 3,605 Business Finance Corp., Pollution Control Rev.,
5.875%, 4/1/22 ............................................................ Ba1/BBB $ 3,627,748
1,000 State Dev. Bank Oblig., Projects & Equipment Acquisitions,
5.00%, 7/1/24 (AMBAC) ..................................................... Aaa/AAA 1,067,790
------------
4,695,538
------------
MISSOURI-0.1%
1,500 St. Louis Parking Facs. Rev., Downtown Parking Facility,
6.00%, 2/1/28 ............................................................. NR/NR 1,534,080
------------
NEBRASKA-0.4%
5,140 University of Nebraska, Lincoln Memorial Stadium,
5.25%, 11/1/29, Ser. A .................................................... A1/A- 5,681,191
------------
NEVADA-1.8%
3,400 Clark Cnty. GO,
5.00%, 6/1/31 (FGIC) ...................................................... Aaa/AAA 3,442,432
17,030 Reno Lien Transnational,
5.125%-5.25%, 6/1/27-6/1/41 (AMBAC) ....................................... Aaa/AAA 17,463,379
3,290 Truckee Meadows Water Auth. Rev.,
5.125%, 7/1/30, Ser. A (FSA) .............................................. Aaa/AAA 3,395,839
------------
24,301,650
------------
NEW HAMPSHIRE-0.2%
3,000 Health & Educational Facs. Auth. Rev.,
6.125%, 7/1/32 ............................................................ Baa1/BBB+ 3,053,970
------------
NEW JERSEY-2.4%
60 Camden Cnty. Impt. Auth. Rev., Cooper Health,
5.875%-6.00%, 2/15/15-2/15/27 ............................................. Baa3/BBB 61,403
225 Economic Dev. Auth., Arbor Glen,
6.00%, 5/15/28, Ser. A (Pre-refunded @ 102, 5/15/09)(b) ................... NR/NR 261,524
525 Economic Dev. Auth., Arbor Glen,
6.00%, 5/15/28, Ser. A .................................................... NR/NR 486,271
15,405 Economic Dev. Auth., Kapkowski Landfill Proj.,
5.75%, 10/1/21-4/1/31 ..................................................... Baa3/NR 16,333,613
3,500 State Educational Fac. Auth. Rev.,
6.00%, 7/1/25, Ser. D ..................................................... NR/NR 3,690,855
13,030 Tobacco Settlement Financing Corp. Rev.,
6.00%-6.75%, 6/1/37-6/1/42 ................................................ Baa3/BBB 11,334,173
------------
32,167,839
------------
NEW MEXICO-0.4%
5,000 Farmington Pollution Control Rev.,
5.80%, 4/1/22 ............................................................. Baa2/BBB 5,065,650
------------
NEW YORK-2.8%
Metropolitan Trans. Auth.,
10,600 5.00%, 11/15/30, Ser. A (FSA) ............................................. Aaa/AAA 10,777,550
10,000 5.25%, 11/15/32 ........................................................... A2/A 10,315,800
7,000 New York City Municipal Water Finance & Auth. Water & Sewer Syst. Rev.,
5.00%, 6/15/39, Ser. A .................................................... Aa2/AA+ 7,064,190
6,700 State Dormitory Auth. Rev.,
5.00%, 7/1/34, Ser. 1 ..................................................... Aa2/AA 6,780,601
2,000 State Environmental Facilities Corp.,
5.00%, 6/15/28 ............................................................ Aaa/AAA 2,046,960
------------
36,985,101
------------
NORTH CAROLINA-0.6%
7,500 Lorian Cnty. Hospital Rev.,
5.375%, 10/1/30 ........................................................... A1/AA- 7,619,925
------------
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
AUGUST 31, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA-3.2%
$ 6,250 Allegheny Cnty. Hosp. Dev. Auth. Rev.,
9.25%, 11/15/15-11/15/30, Ser. B .......................................... B2/B $ 8,244,619
4,500 Cumberland Cnty. Auth. Rev.,
7.25%, 1/1/35, Ser. A ..................................................... NR/NR 4,609,530
8,750 Montgomery Cnty. Higher Education & Health Auth. Hosp. Rev.,
5.125%, 6/1/27-6/1/32, Ser. A ............................................. NR/A 8,782,112
5,000 Philadelphia Auth. Dev. Lease Rev.,
5.25%, 10/1/30, Ser. B (FSA) .............................................. Aaa/AAA 5,159,150
3,050 Philadelphia Auth. Indl. Dev. Rev., Doubletree,
6.50%, 10/1/27 ............................................................ NR/NR 3,104,595
3,000 Philadelphia GO,
5.25%, 9/15/25 (FSA) ...................................................... Aaa/AAA 3,132,990
8,520 Philadelphia Hosp. & Higher Ed. Facs. Auth. Rev.,
6.85%, 7/1/22 ............................................................. Baa2/BBB 8,635,616
500 Pittsburgh & Allegheny Cnty. Pub. Auditorium,
5.00%, 2/1/29 (AMBAC) ..................................................... Aaa/AAA 503,795
------------
42,172,407
------------
PUERTO RICO-0.3%
4,200 Electric Power Auth. Power Rev., 5.125%, 7/1/29, Ser. NN ....................... A3/A- 4,303,068
------------
RHODE ISLAND-4.1%
62,000 Tobacco Settlement Financing Corp.,
6.25%, 6/1/42, Ser. A ..................................................... Baa3/BBB 53,739,120
------------
SOUTH CAROLINA-5.7%
27,745 Greenville Cnty. School District,
5.50%, 12/1/28 ............................................................ A1/AA- 29,008,507
18,120 Jobs Economic Dev. Auth. Economic Dev. Rev.,
5.625%, 11/15/30 .......................................................... A3/A- 18,361,721
20,000 Lexington Cnty. Health Services Dist. Inc. Hosp. Rev.,
5.50%-5.75%, 11/1/28-5/1/37 ............................................... A2/A 24,109,975
3,250 Tobacco Settlement Rev.,
6.375%, 5/15/28, Ser. B ................................................... Baa3/BBB 2,929,842
1,180 Trans. Infrastructure Rev.,
5.00%, 10/1/29, Ser. A (AMBAC) ............................................ Aaa/NR 1,327,063
------------
75,737,108
------------
TENNESSEE-4.5%
1,815 Knox Cnty., GO,
5.00%, 2/1/17, Ser. A ..................................................... Aa2/AA 2,021,257
3,750 Knox Cnty. Health Educational & Housing Facs. Board, Hospital Facs. Rev.,
5.25%, 10/1/30 ............................................................ A1/AA- 3,836,550
47,785 Memphis Electric Sys. Rev.,
5.00%, 12/1/11 Ser A (MBIA) ............................................... Aaa/AAA 53,305,123
------------
59,162,930
------------
TEXAS-9.5%
1,000 Arlington Indpt. School Dist., GO,
5.00%, 2/15/24 ............................................................ Aaa/NR 1,017,920
4,480 Aubrey Indpt. School Dist., GO,
5.50%, 2/15/33 ............................................................ Aaa/NR 4,780,474
6,500 Brazos Cnty. Health Facs. Dev. Corp., Franciscan Services Corp.,
5.375%, 1/1/32 ............................................................ NR/A- 6,530,225
2,700 Comal Cnty. Health Facs., Mckenna Memorial Hosp.,
6.25%, 2/1/32 ............................................................. Baa2/BBB 2,745,684
5,000 Dallas Area Rapid Transit,
5.00%, 12/1/31 (AMBAC) .................................................... Aaa/AAA 5,051,050
20,000 Frisco Indpt. School Dist., GO,
zero coupon, 8/15/34 ...................................................... Aaa/NR 3,904,000
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
AUGUST 31, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
$19,750 Harris Cnty. GO,
5.125%, 8/15/31 ........................................................... Aa1/AA+ $ 22,384,847
5,250 Harris Cnty. Health Facs. Dev. Corp. Rev.,
5.375%, 2/15/26, Ser. A ................................................... NR/AA- 5,355,000
25,000 Harris Cnty. Senior Lien Toll Road,
5.00%, 8/15/30 (FSA) ...................................................... Aaa/AAA 25,293,500
7,500 Keller Indpt. School Dist. GO,
4.875%, 8/15/31 ........................................................... Aaa/AAA 7,483,050
3,170 Little Elm Indpt. School Dist. GO,
5.30%, 8/15/29, Ser. A .................................................... NR/AAA 3,314,647
6,250 North Dallas Thruway Auth.,
4.75%, 1/1/29 (FGIC) ...................................................... Aaa/AAA 6,205,062
5,000 Quinlin Indpt. School Dist. Go,
5.10%, 2/15/32 ............................................................ Aaa/NR 5,092,900
State Turnpike Auth. Highway Imps. Rev.,
10,000 Zero coupon, 8/15/19 (AMBAC) .............................................. Aaa/AAA 4,920,700
8,880 5.00%, 8/15/42 (AMBAC) .................................................... Aaa/AAA 8,908,682
4,900 State Water Financial Assistance, GO,
5.00%-5.25%, 8/1/35-8/1/36 ................................................ Aa1/AA 4,986,337
8,000 Wichita Falls Water & Sewer Rev.,
5.00%, 8/1/27 (AMBAC) ..................................................... Aaa/AAA 8,106,880
-------------
126,080,958
-------------
VIRGINIA-0.5%
Fredericksburg Industrial Dev., Medicorp Health Syst.,
6,500 5.125%-5.25%, 6/15/27-6/15/33, Ser. B .......................................... A3/NR 6,585,495
-------------
WASHINGTON-0.6%
2,250 Energy Northwest Electric Rev., 5.25%, 7/1/09, Ser. A .......................... Aaa/AAA 2,501,528
5,000 Tacoma Sewer Rev.,
5.00%, 12/1/31, Ser. A (FGIC) ............................................. Aaa/AAA 5,051,050
-------------
7,552,578
-------------
WISCONSIN-1.0%
Badger Tobacco Asset Securitization Corp.,
1,125 6.00%, 6/1/17 ............................................................. Baa3/BBB 1,058,074
9,135 6.125%, 6/1/27 ............................................................ Baa3/BBB 8,647,100
2,500 State GO, 5.00%, 5/1/09 ........................................................ Aaa/AAA 2,749,000
1,000 State Health & Educational Facs. Auth. Rev.,
5.375%, 10/1/30 ........................................................... NR/A+ 1,009,410
-------------
13,463,584
-------------
Total Municipal Bonds & Notes (cost-$1,146,837,788) ............................ 1,181,931,481
=============
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
AUGUST 31, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
-----------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE NOTES(a)(c)(d)-9.9%
ALABAMA-1.6%
$ 9,000 Birmingham Waterworks & Sewer Board, Residual Ctfs.,
8.91%, 1/1/33, Ser. 947 (MBIA) ............................................ Aaa/NR $ 9,674,460
6,675 Jefferson Cnty. Sewer Rev., Residual Ctfs.,
14.02%, 2/1/36, Ser. 352 (FGIC) ........................................... Aaa/NR 9,295,939
2,100 Montgomery Care Fac. Residual Ctfs.,
13.23%, 11/15/29, Ser 435 (MBIA) .......................................... Aaa/NR 2,226,420
-------------
21,196,819
-------------
COLORADO-0.2%
2,813 Denver City & Cnty. Airpt Rev., Residual Ctfs.,
15.47%, 11/15/25, Ser. 425 (FSA) .......................................... Aaa/NR 2,979,338
-------------
FLORIDA-0.5%
2,228 Orange Cnty. School Board, Cert. of Participation,
15.38%, 8/1/24, Ser. 328 (MBIA) ........................................... Aaa/NR 2,456,131
4,052 State Governmental Utilities Rev., Residual Ctfs.,
15.38%, 10/1/29, Ser. 327 (AMBAC) ......................................... Aaa/NR 4,291,997
-------------
6,748,128
-------------
ILLINOIS-1.2%
Chicago GO,
3,300 14.90%, 1/1/40, Ser. 426 (FGIC) ........................................... Aaa/NR 3,983,199
4,450 15.88%, 1/1/28, Ser. 332 (MBIA) ........................................... NR/NR 4,673,924
1,932 Cook Cnty., Residual Ctfs.,
13.23%, 11/15/28, Ser. 403 (FGIC) ......................................... Aaa/NR 2,083,082
5,000 State GO,
18.65%, 4/1/27, Ser. 783 (FGIC) ........................................... Aaa/NR 5,379,100
-------------
16,119,305
-------------
MASSACHUSETTS-2.7%
2,100 Boston Water & Sewer Community Rev., Residual Ctfs.,
13.37%, 11/1/28, Ser. 434 (FGIC) .......................................... Aaa/NR 2,172,450
2,420 State GO,
18.87%, 11/1/30, Ser. 785 (FGIC) .......................................... Aaa/NR 3,807,410
State Turnpike Auth. Rev., Residual Ctfs.,
14,163 13.37%, 1/1/39, Ser. 335 (AMBAC) .......................................... Aaa/NR 14,305,258
4,500 13.37%, 1/1/37, Ser. 489 (MBIA) ........................................... NR/AAA 4,562,685
11,049 13.37%, 1/1/37, Ser. 334 (AMBAC) .......................................... Aaa/NR 11,202,913
-------------
36,050,716
-------------
NEVADA-0.3%
3,300 State GO, Residual Ctfs.,
13.07%, 5/15/28, Ser. 344 (FGIC) .......................................... Aaa/NR 3,406,359
-------------
NEW MEXICO-0.2%
2,000 State Finance Auth. Transportation Rev., Residual Ctfs., 8.41%, 6/15/12 (AMBAC) Aaa/NR 2,469,040
-------------
OHIO-0.2%
1,975 Hamilton Cnty. Sales Tax Residual Ctfs.,
15.59%, 12/1/27, Ser. 356 (MBIA) .......................................... Aaa/NR 2,067,509
-------------
PENNSYLVANIA-0.5%
Philadelphia School Dist. Residual Ctfs., GO,
2,505 12.24%, 4/1/27, Ser. 345 (MBIA) ........................................... Aaa/NR 2,481,779
4,016 12.42%, 4/1/27, Ser. 496 (MBIA) ........................................... Aaa/NR 3,978,276
-------------
6,460,055
-------------
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
AUGUST 31, 2004
(UNAUDITED)(CONCLUDED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
-----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE-0.5%
$ 6,000 Memphis Electric Sys. Rev., Residual Ctfs.,
8.70%, 12/1/11, Ser. 880 (MBIA) ........................................... Aaa/NR $ 7,386,240
--------------
TEXAS-1.7%
3,075 Denton Util. Sys. Rev., Residual Ctfs.,
16.09%, 12/1/29, Ser. 428 (MBIA) .......................................... Aaa/NR 3,225,921
1,650 Houston Arpt. Sys. Rev., Residual Ctfs.
13.02%, 7/1/25, Ser. 404 (FGIC) ........................................... Aaa/NR 1,715,934
Houston Water & Sewer Syst. Rev., Residual Ctfs.,
3,838 9.03%, 12/1/30, Ser. 495 .................................................. NR/AAA 5,855,564
2,750 15.59%, 12/1/28, Ser. 427 ................................................. Aaa/NR 3,973,310
7,000 State Affordable Housing, American Housing Foundation,
19.34%, 9/1/22, Ser. 780 (MBIA) ........................................... Aaa/NR 7,242,200
--------------
22,012,929
--------------
WASHINGTON-0.3%
4,550 Central Puget Sound Regl. Tran. Auth., Sales Tax & Motor, Residual Ctfs.,
12.24%, 2/1/28, Ser. 360 .................................................. Aaa/NR 4,498,767
--------------
Total Variable Rate Notes (cost-$117,275,770) .................................. 131,395,205
==============
U.S. TREASURY BILLS (e) -1.2%
16,737 1.0148%-1.0899%, 8/7/03-8/14/03 (cost-$16,730,248) ............................. Aaa/AAA 16,729,496
--------------
Total Investments before call options written (cost-$1,280,843,806)-100.3% ..... 1,330,056,182
--------------
Contracts
------------- CALL OPTIONS WRITTEN (f)-(0.3)%
U.S. Treasury Bond Futures, Chicago Board of Trade:
(733) Strike Price $108, expires 11/26/04 ....................................... (3,092,344)
(393) Strike Price $109, expires 11/26/04 ....................................... (1,492,172)
--------------
Total call options written (premium received-$3,706,390) ....................... (4,584,516)
--------------
Total Investments, net of call options written (cost-$1,277,137,416)-100% ...... $1,325,471,666
==============
* Portfolio securities and other financial instruments for which market
quotations are readily available are stated at market value. The Fund's
investments are valued daily by an independent pricing service. Prices
obtained from an independent pricing service use information provided by
market makers or estimates of market values obtained from yield data
relating to investments or securities with similar characteristics.
Short-term investments maturing in sixty days or less are valued at
amortized cost, if their original maturity was 60 days or less or by
amortizing their value on the 61st day prior to maturity, if the
original term to maturity exceeded 60 days. Securities for which market
quotations are not readily available or if a development/event occurs
that may significantly impact the value of the security may be fair
valued, pursuant to guidelines established by the Board of Trustees. The
prices used by the Fund to value securities may differ from the value
that would be realized if the securities were sold. The Fund's net asset
value is determined daily at the close of regular trading (normally 4:00
p.m. Eastern time) on the New York Stock Exchange.
(a) 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 to qualified institutional
investors.
(b) 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.
(c) 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).
(d) Residual Interest/Tax Exempt Municipal Bonds. The interest rate shown
bears an inverse relationship to the interest rate on another security
or the value of an index.
(e) All or partial principal amount segregated as initial margin on
futures contracts.
(f) Non-income producing security.
Glossary:
AMBAC - insured by American Municipal Bond Assurance Corp.
FGIC - insured by insured Financial Guaranty Insurance Co.
FSA - insured by Financial Security Assurance, Inc.
GO - General Obligation Bonds
MBIA - insured by Municipal Bond Investors Assurance
NR - Not Rated
XLCA - insured by XL Capital Assurance
ITEM 2. CONTROLS AND PROCEDURES
(a) The registrant's President and Chief Executive Officer and Principal
Financial Officer have concluded that the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the
Investment Company Act of 1940, as amended are effective based on their
evaluation of these controls and procedures as of a date within 90 days
of the filing date of this document.
(b) There were no significant changes in the registrant's internal controls
or in factors that could affect these controls subsequent to the date of
their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 3. EXHIBITS
(a) Exhibit 99.CERT - Certification pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: PIMCO Municipal Income Fund II
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: October 29, 2004
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: October 29, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dated indicated.
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: October 29, 2004
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: October 29, 2004