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: 5/31/05
Date of Reporting Period: 2/28/05
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
FEBRUARY 28, 2005
(unaudited)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS & NOTES-89.1%
ALABAMA-2.4%
$11,145 Birmingham Waterworks & Sewer Board Rev.,
5.00%, 1/1/27-1/1/37, Ser. B (MBIA) ...................................... Aaa/AAA $11,483,677
1,750 Huntsville Health Care Auth.,
5.75%, 6/1/32, Ser. B .................................................... A2/NR 1,863,173
16,580 Jefferson Cnty. Sewer Rev.,
4.75%, 2/1/38, Ser. B (FGIC) (Prerefunded @100, 8/1/12) (a) ............... Aaa/AAA 18,057,610
--------------
31,404,460
--------------
ALASKA-0.3%
State Housing Finance Corp.,
3,550 5.25%, 6/1/32, Ser. C (MBIA) .............................................. Aaa/AAA 3,591,109
--------------
ARIZONA-0.1%
1,300 Health Fac. Auth. Hospital System Rev.,
5.75%, 12/1/32 ............................................................ NR/BBB 1,357,967
--------------
CALIFORNIA-4.1%
9,610 Alameda Corridor Transportation Auth. Rev.,
zero coupon, 10/1/16, Ser. A. (AMBAC) ..................................... Aaa/AAA 5,806,074
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 12,807,084
1,000 Rancho Cucamonga Community Facs. District, Special Tax,
6.30%, 9/1/23, Ser. A ..................................................... NR/NR 1,031,260
4,000 Southern California Public Power Auth., Transmission Project Rev.,
zero coupon, 7/1/13 ....................................................... Aa3/A+ 2,887,960
28,775 State Economic Recovery GO, 5.00%, 7/1/11, Ser. A. (MBIA) .................... Aaa/AAA 31,650,198
--------------
54,182,576
--------------
COLORADO-5.1%
30,000 Dawson Ridge District No. 1, GO,
zero coupon, 10/1/22, Ser. A .............................................. Aaa/NR 12,898,800
5,000 Denver City & Cnty. CP,
5.50%, 12/1/25, Ser. B (AMBAC) ............................................ Aaa/AAA 5,654,550
25,000 Health Fac. Auth. Rev., Catholic Health Initiatives-A,
5.50%, 3/1/32 ............................................................. Aa2/AA 27,460,000
18,305 Health Fac. Auth. Rev., Exempla Inc.,
5.625%, 1/1/33, Ser. A .................................................... A1/A- 19,061,180
6,500 Health Fac. Auth. Rev., Retirement Fac. Rev., Liberty Height,
zero coupon, 7/15/22 ...................................................... Aaa/AAA 2,823,210
--------------
67,897,740
--------------
DISTRICT OF COLUMBIA-1.3%
17,500 Washington DC Convention Center Auth. Tax Rev.,
4.75%, 10/1/28 (AMBAC) .................................................... Aaa/AAA 17,562,125
--------------
FLORIDA-3.2%
8,000 Highlands Cnty. Health Fac. Auth. Rev.,
6.00%, 11/15/31, Ser. A ................................................... A2/A 8,673,760
635 Hillsborough Cnty. Industrial Dev. Rev., Health Fac. Project,
5.625%, 8/15/23 ........................................................... Baa2/BBB 654,323
2,335 Hillsborough Cnty. Industrial Dev. Auth., Pollution Control Rev.,
Tampa Electric Co. Project,
5.50%, 10/1/23 ............................................................ Baa2/BBB- 2,398,909
7,135 Jacksonville Health Facs. Auth. Rev.,
5.25%, 11/15/32, Ser. A ................................................... Aa2/AA 7,417,261
11,500 Lakeland Hospital System Rev., Regional Health System,
5.50%, 11/15/32 ........................................................... A1/NR 12,124,680
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2005
(unaudited) (continued)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$3,000 Leesburg Hospital Rev., Leesburg Regional Medical Center Project,
5.50%, 7/1/32 ............................................................. A3/A- $3,094,560
7,550 Orange Cnty. Health Fac. Auth. Rev., Adventist Health System,
5.625%-6.25%, 11/15/24-11/15/32 ........................................... A2/A 8,322,163
1,500 Winter Springs Water & Sewer Rev.,
zero coupon, 10/1/29 (FGIC) ............................................... Aaa/AAA 446,685
--------------
43,132,341
--------------
GEORGIA-0.7%
4,000 Atlanta Water & Wastewater Rev.,
5.00%, 11/1/39, Ser. A (MBIA) ............................................. Aaa/AAA 4,123,520
1,500 Grantor Trust Gov't CP,
4.75%, 6/1/28, Ser. A (MBIA) .............................................. Aaa/AAA 1,560,240
9,600 Richmond Cnty. Dev Auth. Rev.,
zero coupon, 12/1/21 ...................................................... Aaa/NR 4,289,088
--------------
9,972,848
--------------
HAWAII-1.5%
19,170 Honolulu City & Cnty. Wastewater System Rev., First Board Resolution,
4.75%, 7/1/28 (FGIC) ...................................................... Aaa/NR 19,411,734
--------------
ILLINOIS-18.6%
11,760 Central Lake Cnty. Water Agency Rev.,
5.125%, 5/1/28-5/1/32, Ser. A (AMBAC) ..................................... Aaa/NR 12,259,697
5,000 Cicero GO,
5.25%, 12/1/31 (MBIA) ..................................................... Aaa/AAA 5,309,100
Chicago Board of Education School Reform GO,
15,535 zero coupon, 12/1/16, Ser. A .............................................. Aaa/AAA 9,211,478
5,000 zero coupon, 12/1/28, Ser. A (FGIC) ....................................... Aaa/AAA 1,505,350
4,500 zero coupon, 12/1/31 (FGIC) ............................................... Aaa/AAA 1,128,285
94,485 Chicago City Colleges GO,
zero coupon, 1/1/37-1/1/39 (FGIC) ......................................... Aaa/AAA 17,110,613
Chicago GO,
5,110 5.00%, 1/1/33, (AMBAC) .................................................... Aaa/AAA 5,267,848
5,050 5.125%, 1/1/29, Ser. A (FGIC) ............................................. Aaa/AAA 5,201,146
7,000 Chicago Midway Airport Rev.,
5.00%, 1/1/31, Ser. B (MBIA) .............................................. Aaa/AAA 7,210,280
9,862 Chicago Special Assessment, Lake Shore East,
6.625%-6.75%, 12/1/22-12/1/32 ............................................. NR/NR 10,372,329
144,650 Dev. Finance Auth. Retirement Housing Rev.,
zero coupon, 7/15/23-7/15/25 .............................................. NR/AAA 53,959,200
20,100 Health Facs. Auth. Rev., Elmurst Memorial Healthcare,
5.625%, 1/1/28 ............................................................ A2/NR 21,063,192
1,000 McHenry & Kane Cnty. Community Consolidated School District 158,
zero coupon, 1/1/12 (FGIC) ................................................ Aaa/AAA 765,110
110,000 Metropolitan Pier & Exposition Auth.,
zero coupon, 12/15/30-12/15/33 (MBIA) ..................................... Aaa/AAA 27,980,000
4,500 Schaumburg, GO, 5.00%, 12/1/41, Ser. B (FGIC) ................................ Aaa/AAA 4,621,950
10,000 State GO, 5.00%, 3/1/34, Ser. A .............................................. Aa3/AA 10,344,000
68,470 State Sports Facs. Auth,
zero coupon, 6/15/30 (AMBAC) .............................................. Aaa/AAA 54,934,850
--------------
248,244,428
--------------
INDIANA-0.6%
Brownsburg 1999 School Building Corp.,
3,000 5.00%-5.25%, 3/15/25-9/15/25, Ser. A (FSA) ................................ Aaa/AAA 3,197,390
4,125 Fort Wayne Pollution Control Rev.,
6.20%, 10/15/25 ........................................................... Baa2/BBB- 4,426,166
500 State Bank Rev.,
5.25%, 4/1/30, Ser. D (AMBAC) ............................................. Aaa/AAA 526,520
--------------
8,150,076
--------------
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2005
(unaudited) (continued)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
------------------------------------------------------------------------------------------------------------------------------------
IOWA-0.6%
$8,850 Tobacco Settlement Auth.,
5.60%, 6/1/35, Ser. B ..................................................... Baa3/BBB $8,276,166
--------------
KANSAS -0.2%
2,800 Univ. of Kansas, Hospital Auth. Health Facs. Rev.,
5.625%, 9/1/32 ............................................................ NR/A- 2,931,404
--------------
KENTUCKY-0.9%
Economic Dev. Finance Auth. Hospital Facs. Rev.,
2,500 5.25%, 10/1/30 ............................................................ A1/AA- 2,583,500
8,210 6.00%, 10/1/19 ............................................................ A3/A 9,121,474
--------------
11,704,974
--------------
LOUISIANA-4.6%
20,400 Public Facs. Auth. Rev., Ochsner Clinic Foundation,
5.50%, 5/15/32, Ser. B .................................................... A3/NR 21,160,920
40,395 Tobacco Settlement Financing Corp.,
5.875%, 5/15/39, Ser. 2001B (b) ........................................... Baa3/BBB 39,778,353
--------------
60,939,273
--------------
MARYLAND-0.1%
State Health & Higher Educational Fac. Auth. Rev., Adventist Healthcare,
1,000 5.75%, 1/1/25, Ser. A, .................................................... Baa1/NR 1,059,510
--------------
MASSACHUSETTS-3.8%
1,300 Bay Transportation Auth.,
4.75%, 3/1/21, Ser. A (MBIA) .............................................. Aaa/AAA 1,335,841
18,205 State College Building Auth. Project Rev., 5.50%, 5/1/28-5/1/39, Ser. B (XLCA) Aaa/AAA 20,614,215
9,000 State GO, 5.00%, 8/1/11, Ser. A (MBIA) ....................................... Aaa/AAA 9,877,320
4,295 State Turnpike Auth., 4.75%, 1/1/34, Ser. A (AMBAC)........................... Aaa/AAA 4,320,512
State Water Res. Auth.,
12,050 4.75%, 8/1/37, Ser. A (FSA) ............................................... Aaa/AAA 12,083,378
2,300 4.75%, 12/1/21, Ser. B (MBIA) ............................................. Aaa/AAA 2,334,109
--------------
50,565,375
--------------
MICHIGAN-2.6%
10,250 Detroit City School District, GO,
5.00%-5.125%, 5/1/31-5/1/32, Ser. A ....................................... Aaa/AAA 10,658,665
2,500 Detroit Water Supply System,
5.00%, 7/1/30, Ser. A (FGIC) .............................................. Aaa/AAA 2,573,575
5,000 State Hospital Finance Auth. Rev., Ascension Health,
5.25%, 11/15/26, Ser. B ................................................... Aa2/AA 5,183,300
15,425 State Hospital Finance Auth. Rev., Oakwood Obligation Group,
5.75%-6.00%, 4/1/22-4/1/32, Ser. A ........................................ A2/A 16,284,739
--------------
34,700,279
--------------
MISSISSIPPI-0.4%
3,605 Business Finance Corp., Pollution Control Rev.,
5.875%, 4/1/22 ............................................................ Ba1/BBB 3,622,773
1,000 Dev. Bank Special Obligation, Projects & Equipment Acquisitions,
5.00%, 7/1/24 (AMBAC) ..................................................... Aaa/AAA 1,099,520
--------------
4,722,293
--------------
MISSOURI-0.1%
1,500 St. Louis Parking Facs. Rev., Downtown Parking Facility,
6.00%, 2/1/28 ............................................................. NR/NR 1,544,280
--------------
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2005
(unaudited) (continued)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
------------------------------------------------------------------------------------------------------------------------------------
NEVADA-1.9%
$3,400 Clark Cnty. GO,
5.00%, 6/1/31 (FGIC) ...................................................... Aaa/AAA $3,502,612
17,030 Reno Transportation Project Rev.,
5.125%-5.25%, 6/1/27-6/1/41 (AMBAC) ....................................... Aaa/AAA 17,856,661
3,290 Truckee Meadows Water Auth. Rev.,
5.125%, 7/1/30, Ser. A (FSA) .............................................. Aaa/AAA 3,442,491
--------------
24,801,764
--------------
NEW HAMPSHIRE-0.2%
3,000 Health & Educational Facs. Auth. Hospital Rev.,
6.125%, 7/1/32 ............................................................ Baa1/BBB+ 3,115,140
--------------
NEW JERSEY-2.6%
60 Camden Cnty. Improvement Auth. Rev., Cooper Health,
5.875%-6.00%, 2/15/15-2/15/27 ............................................. Baa3/BBB 61,691
15,405 Economic Dev. Auth., Kapkowski Road Landfill Project Special Assessment,
5.75%, 10/1/21-4/1/31 ..................................................... Baa3/NR 16,620,392
Economic Dev. Auth. Rev., Arbor Glen,
225 6.00%, 5/15/28, Ser. A (Pre-refunded @ 102, 5/15/09) (a) .................. NR/NR 255,697
525 6.00%, 5/15/28, Ser. A .................................................... NR/NR 519,755
3,500 State Educational Fac. Auth. Rev.,
6.00%, 7/1/25, Ser. D ..................................................... NR/NR 3,745,595
13,030 Tobacco Settlement Financing Corp., Rev.,
6.00%-6.75%, 6/1/37-6/1/43 ................................................ Baa3/BBB 13,118,058
--------------
34,321,188
--------------
NEW MEXICO-0.4%
5,000 Farmington Pollution Control Rev.,
5.80%, 4/1/22.............................................................. Baa2/BBB 5,108,200
--------------
NEW YORK-2.8%
Metropolitan Transportation Auth. Rev.,
10,600 5.00%, 11/15/30, Ser. A (FSA).............................................. Aaa/AAA 11,010,856
10,000 5.25%, 11/15/32............................................................ A2/A 10,586,000
7,000 New York City Municipal Water Finance Auth., Water & Sewer System Rev.,
5.00%, 6/15/39, Ser. A .................................................... Aa2/AA+ 7,235,900
6,700 State Dormitory Auth. Rev.,
5.00%, 7/1/34, Ser. 1 ..................................................... Aa2/AA 6,911,318
2,000 State Environmental Facilities Corp.,
5.00%, 6/15/28 ............................................................ Aaa/AAA 2,089,480
--------------
37,833,554
--------------
OHIO-0.6%
7,500 Lorian Cnty. Hospital Rev.,
5.375%, 10/1/30 ........................................................... A1/AA- 7,761,300
--------------
PENNSYLVANIA-3.2%
7,250 Allegheny Cnty. Hospital Dev. Auth. Rev.,
9.25%, 11/15/15-11/15/30, Ser. B .......................................... B1/B 8,443,833
4,500 Cumberland Cnty. Auth. Retirement Community Rev.,
7.25%, 1/1/35, Ser. A...................................................... NR/NR 4,773,690
8,750 Montgomery Cnty. Higher Education & Health Auth. Hospital Rev.,
5.125%, 6/1/27-6/1/32, Ser. A ............................................. NR/A 8,965,950
5,000 Philadelphia Auth. Dev. Lease Rev.,
5.25%, 10/1/30, Ser. B (FSA) .............................................. Aaa/AAA 5,277,750
3,050 Philadelphia Auth. Industrial Dev. Rev., Doubletree,
6.50%, 10/1/27 ............................................................ NR/NR 3,168,431
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2005
(unaudited) (continued)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$3,000 Philadelphia GO,
5.25%, 9/15/25 (FSA)....................................................... Aaa/AAA $3,190,950
8,520 Philadelphia Hospital & Higher Education Facs. Auth. Rev.,
6.85%, 7/1/22 ............................................................. Baa2/BBB 8,639,195
500 Pittsburgh & Allegheny Cnty. Public Auditorium,
5.00%, 2/1/29 (AMBAC)...................................................... Aaa/AAA 511,630
--------------
42,971,429
--------------
PUERTO RICO-0.3%
4,200 Electric Power Auth. Power Rev., 5.125%, 7/1/29, Ser. NN ..................... A3/A- 4,392,234
--------------
RHODE ISLAND-4.6%
62,000 Tobacco Settlement Financing Corp.,
6.25%, 6/1/42, Ser. A ..................................................... Baa3/BBB 61,992,560
--------------
SOUTH CAROLINA-5.8%
27,745 Greenville Cnty. School District,
5.50%, 12/1/28 ............................................................ Aa3/AA- 29,850,013
18,120 Jobs Economic Dev. Auth. Economic Dev. Rev.,
5.625%, 11/15/30........................................................... A3/A- 18,741,335
23,500 Lexington Cnty. Health Services District Inc., Hosp. Rev.,
5.50%-5.75%, 11/1/28-5/1/37 ............................................... A2/A 24,892,230
3,250 Tobacco Settlement Rev.,
6.375%, 5/15/28, Ser. B ................................................... Baa3/BBB 3,320,037
1,180 Transportation Infrastructure Rev.,
5.00%, 10/1/29, Ser. A (AMBAC)............................................. Aaa/NR 1,300,643
--------------
78,104,258
--------------
TENNESSEE-3.1%
1,815 Knox Cnty., GO,
5.00%, 2/1/17, Ser. A ..................................................... Aa2/AA 2,012,853
3,750 Knox Cnty. Health Educational & Housing Facs. Board, Hospital Facs. Rev.,
5.25%, 10/1/30............................................................. A1/AA- 3,887,325
32,785 Memphis Electric System Rev.,
5.00%, 12/1/11, Ser. A (MBIA).............................................. Aaa/AAA 35,817,940
--------------
41,718,118
--------------
TEXAS-10.7%
1,000 Arlington Independent School Dist., GO,
5.00%, 2/15/24 (PSF) ..................................................... Aaa/NR 1,033,600
4,480 Aubrey Independent School Dist., GO,
5.50%, 2/15/33 (PSF) ...................................................... Aaa/NR 4,893,773
6,500 Brazos Cnty. Health Facs. Dev. Corp., Franciscan Services Corp.,
5.375%, 1/1/32 ............................................................ NR/A- 6,662,435
2,700 Comal Cnty. Health Facs., Mckenna Memorial Hospital Project,
6.25%, 2/1/32 ............................................................. Baa2/BBB 2,793,339
5,000 Dallas Area Rapid Transit,
5.00%, 12/1/31 (AMBAC) .................................................... Aaa/AAA 5,123,250
20,000 Frisco Independent School District GO,
zero coupon, 8/15/34 ...................................................... Aaa/NR 4,347,200
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2005
(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+ $22,002,685
5,250 Harris Cnty. Health Facs. Dev. Corp. Rev.,
5.375%, 2/15/26, Ser. A.................................................... NR/AA- 5,430,338
25,000 Harris Cnty. Senior Lien Toll Road,
5.00%, 8/15/30 (FSA)....................................................... Aaa/AAA 25,815,250
7,500 Keller Independent School District GO,
4.875%, 8/15/31(PSF) ...................................................... Aaa/AAA 7,572,975
3,170 Little Elm Independent School Dist. GO,
5.30%, 8/15/29, Ser. A (PSF) .............................................. NR/AAA 3,374,053
6,250 North Dallas Thruway Auth. Rev.,
4.75%, 1/1/29 (FGIC)....................................................... Aaa/AAA 6,290,875
5,000 Quinlin Independent School District GO,
5.10%, 2/15/32 (PSF)....................................................... Aaa/NR 5,195,350
14,000 State Affordable Housing Corp., Multifamily Housing Rev.,
5.40%, 9/1/22, Ser. A ..................................................... Aaa/AAA 14,700,980
State Turnpike Auth. Central Turnpike System Rev.,
10,000 zero coupon, 8/15/19, Ser. A (AMBAC) ...................................... Aaa/AAA 5,212,500
8,880 5.00%, 8/15/42, Ser. A (AMBAC) ............................................ Aaa/AAA 9,096,050
4,900 State Water Financial Assistance, GO,
5.00%-5.25%, 8/1/35-8/1/36 ................................................ Aa1/AA 5,077,955
8,000 Wichita Falls Water & Sewer Rev.,
5.00%, 8/1/27 (AMBAC) ..................................................... Aaa/AAA 8,278,880
--------------
142,901,488
--------------
VIRGINIA-0.5%
6,500 Fredericksburg Industrial Dev., Medicorp Health System,
5.125%-5.25%, 6/15/27-6/15/33, Ser. B...................................... A3/NR 6,636,335
--------------
WASHINGTON-0.4%
5,000 Tacoma Sewer Rev., 5.00%, 12/1/31, Ser. A (FGIC).............................. Aaa/AAA 5,146,650
--------------
WISCONSIN-0.8%
10,175 Badger Tobacco Asset Securitization Corp.,
6.00%- 6.125%, 6/1/17-6/1/27 .............................................. Baa3/BBB 10,383,090
1,000 State Health & Educational Facs. Auth. Rev.,
5.375%, 10/1/30 ........................................................... NR/A+ 1,027,180
--------------
11,410,270
--------------
Total Municipal Bonds & Notes (cost-$1,112,326,080)........................... 1,189,565,446
--------------
VARIABLE RATE NOTES (b)(c)(d)-9.5%
ALABAMA-1.6%
9,000 Birmingham Waterworks & Sewer Board,
8.37%, 1/1/33, Ser. 947 (MBIA)............................................. Aaa/NR 10,039,500
6,675 Jefferson Cnty. Sewer Rev.,
12.50%, 11/1/30, Ser. 352 (FGIC)........................................... Aaa/NR 8,760,337
2,100 Montgomery Special Care Fac.,
11.72%, 11/15/29, Ser. 435 (MBIA).......................................... Aaa/NR 2,305,947
--------------
21,105,784
--------------
COLORADO-0.2%
2,813 Denver City & Cnty. Airport Rev.,
13.61%, 11/15/25, Ser. 425 (FSA)........................................... Aaa/NR 3,135,712
--------------
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2005
(unaudited) (continued)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
------------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE NOTES (continued)
FLORIDA-0.5%
$2,228 Orange Cnty. School Board, CP,
13.58%, 8/1/24, Ser. 328 (MBIA)............................................ Aaa/NR $2,588,088
4,052 State Governmental Utilities Auth. Rev.,
13.58%, 10/1/29, Ser. 327 (AMBAC).......................................... Aaa/NR 4,658,091
--------------
7,246,179
--------------
ILLINOIS-1.2%
Chicago GO,
4,450 8.10%, 1/1/28, Ser. 332 (MBIA)............................................. Aaa/NR 4,697,865
3,300 13.38%, 1/1/40, Ser. 426 (FGIC)............................................ Aaa/NR 4,195,059
1,932 Cook Cnty.,
11.72%, 11/15/28, Ser. 403 (FGIC) ......................................... Aaa/NR 2,057,580
5,000 State GO,
8.37%, 4/1/27, Ser. 783.................................................... Aaa/NR 5,655,700
--------------
16,606,204
--------------
MASSACHUSETTS-2.8%
2,100 Boston Water & Sewer Community Rev.,
11.81%, 11/1/28, Ser. 434 (FGIC)........................................... Aaa/NR 2,226,567
2,420 State GO,
16.49%, 11/1/30, Ser. 785 (FGIC)........................................... Aaa/NR 3,639,317
State Turnpike Auth. Rev.,
14,163 7.91%, 1/1/39, Ser. 335 (AMBAC)............................................ Aaa/NR 14,707,756
11,049 11.81%, 1/1/37, Ser. 334 (MBIA)............................................ Aaa/NR 11,635,702
4,500 11.81%, 1/1/37, Ser. 489 (MBIA)............................................ NR/AAA 4,738,950
--------------
36,948,292
--------------
NEVADA-0.3%
3,300 State GO,
11.67%, 5/15/28, Ser. 344 (FGIC)........................................... Aaa/NR 3,481,170
--------------
NEW MEXICO-0.2%
2,000 State Finance Auth., Transportation Rev., 7.87%, 6/15/12 (AMBAC) ............. Aaa/NR 2,393,400
--------------
OHIO-0.2%
1,975 Hamilton Cnty. Sales Tax,
13.67%, 12/1/27, Ser. 356 (MBIA)........................................... Aaa/NR 2,292,106
--------------
PENNSYLVANIA-0.5%
Philadelphia School District, GO,
2,505 10.84%, 4/1/27, Ser. 345 (MBIA)............................................ Aaa/NR 2,590,997
4,016 10.88%, 4/1/27, Ser. 496 (MBIA)............................................ Aaa/NR 4,153,352
--------------
6,744,349
--------------
TENNESSEE-0.5%
6,000 Memphis Electric System Rev.,
7.87%, 12/1/11, Ser. 880 (MBIA) (a) (d).................................... Aaa/NR 7,110,120
--------------
TEXAS-1.1%
3,075 Denton Utility System Rev.,
14.14%, 12/1/29, Ser. 428 (MBIA)........................................... Aaa/NR 3,540,309
1,650 Houston Airport System Rev.,
11.60%, 7/1/25, Ser. 404 (FGIC)............................................ Aaa/NR 1,784,525
Houston Water & Sewer System Rev.,
2,750 13.64%, 12/1/28, Ser. 427 (FSA)............................................ Aaa/NR 3,720,750
3,838 14.64%, 12/1/30, Ser. 495 (FGIC)........................................... NR/AAA 5,518,478
--------------
14,564,062
--------------
PIMCO MUNICIPAL INCOME FUND II
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2005
(unaudited) (continued)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE*
------------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE NOTES (continued)
WASHINGTON-0.4%
$4,550 Central Puget Sound Regional Transit Auth. Sales Tax & Motor,
7.35%, 2/1/28, Ser. 360 (FGIC)............................................. Aaa/NR $4,638,361
---------------
TOTAL VARIABLE RATE NOTES (cost-$109,663,415) ................................ 126,265,739
---------------
U.S. TREASURY BILLS (e)-1.7%
23,425 1.0148%-1.0899%, 3/3/05-5/5/05 (cost-$23,386,130) ......................... Aaa/AAA 23,384,304
---------------
TOTAL INVESTMENTS BEFORE CALL OPTIONS WRITTEN (cost-$1,245,375,625)-100.3%.... 1,339,215,489
---------------
Contracts
(000)
---------- CALL OPTIONS WRITTEN (f)-(0.3)%
U.S. Treasury Bond Futures, Chicago Board of Trade,
(676) Strike Price $110, expires 5/20/05 ........................................ (718,250)
(1,404) Strike Price $112, expires 5/20/05......................................... (2,829,937)
---------------
Total call options written (premiums received-$4,256,200) (3,548,187)
---------------
TOTAL INVESTMENTS NET OF CALL OPTIONS WRITTEN (cost-$1,241,119,425)-100% $1,335,667,302
---------------
Futures contracts outstanding at February 28, 2005:
Notional Unrealized
Amount Expiration Appreciation
Type (000) Date (Depreciation)
-------------------------------------------------------------------------------
Short: U.S. Treasury 30 Year Bond (4,839) 6/21/2005 $3,024,375
Long: Eurodollar Futures 1,470 9/19/2005 (3,491,250)
------------
$(466,875)
------------
NOTES TO SCHEDULES OF INVESTMENTS:
* Portfolio securities and other financial instruments for which market
quotations are readily available are stated at market value. Portfolio
securities and other financial instruments for which market quotations are not
readily available or if a significant development/event occurs that may impact
the value of the security may be fair-valued in good faith pursuant to
guidelines established by the Board of Trustees. 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 value obtained from yield data relating to investments or
securities with similar characteristics. Short-term investments maturing in 60
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. Exchange traded options,
futures, and options on futures are valued at the settlement price determined by
the relevant exchange. 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) 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 refundung date.
(b) 144A Security - Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, typically only to qualified institutional
investors.
(c) Residual Interest Municipal Bonds. The interest rate shown bears an inverse
relationship to the interest rate on another security or the value of an
index.
(d) Variable Rate Notes - instruments whose interest rates change on specified
date (such as a coupon date or interet payment date) and/or whose interest
rates vary with changes in a designated base rate (such as the prime
interest rate).
(e) All or partial amount segregated as initial margin on futures contracts.
(f) Non-income producing security.
GLOSSARY:
---------
AMBAC- insured by American Municipal Bond Assurance Corp.
CP- Certificates of Participation
FGIC- insured by 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
PSF- Public School Fund
XCLA- 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: April 20, 2005
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: April 20, 2005
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: April 20, 2005
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: April 20, 2005