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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number: 811-10377
Registrant Name: PIMCO Municipal Income Fund
Address of Principal Executive Offices: 1345 Avenue of the Americas, New York, NY 10105
Name and Address of Agent for Service: Lawrence G. Altadonna — 1345 Avenue of the Americas, New York, NY 10105
Registrant’s telephone number, including area code: 212-739-3371
Date of Fiscal Year End: April 30, 2008
Date of Reporting Period: January 31, 2008
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 (§§ 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. § 3507.
Item 1. Schedule of Investments
PIMCO Municipal Income Fund Schedule of Investments
January 31, 2008 (unaudited)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
MUNICIPAL BONDS & NOTES–96.6%
Alabama–2.8%
$
2,500
Birmingham Baptist Medical Centers Special Care Facs. Financing Auth. Rev., 5.875%, 11/15/24, Ser. A
Baa1/NR
$
2,555,525
8,000
Huntsville Health Care Auth. Rev.,
5.75%, 6/1/31, Ser. A, (Pre-refunded @ $101, 6/1/11) (b)
A2/NR
8,886,400
Huntsville-Redstone Village Special Care Facs. Financing Auth. Rev.,
250
5.50%, 1/1/28
NR/NR
230,130
885
5.50%, 1/1/43
NR/NR
782,083
1,350
Montgomery Medical Clinic Board,
Jackson Hospital & Clinic Rev., GO, 5.25%, 3/1/31
Baa2/BBB−
1,287,482
2,900
Tuscaloosa Educational Building Auth. Rev., 5.00%, 6/1/26
NR/BBB−
2,533,324
16,274,944
Alaska–1.6%
900
Industrial Dev. & Export Auth.,
Boys & Girls Home Rev., 6.00%, 12/1/36
NR/NR
844,956
Northern Tobacco Securitization Corp. Rev.,
2,400
5.00%, 6/1/46, Ser. A
Baa3/NR
2,008,728
6,000
5.50%, 6/1/29, (Pre-refunded @ $100, 6/1/11) (b)
Aaa/AAA
6,562,140
9,415,824
Arizona–3.0%
2,000
Apache Cnty. Industrial Dev. Auth. Pollution Control Rev.,
Tucson Electric Power Co., 5.875%, 3/1/33
Baa3/B+
1,915,280
2,750
Health Facs. Auth. Rev., Beatitudes Project, 5.20%, 10/1/37
NR/NR
2,307,085
Pima Cnty. Industrial Dev. Auth. Rev.,
1,260
5.00%, 6/1/37
NR/BBB−
1,128,368
12,045
5.00%, 9/1/39
Aa2/AA
11,875,165
17,225,898
Arkansas–0.5%
8,500
Arkansas Dev. Finance Auth. Rev., zero coupon, 7/1/36 (AMBAC)
Aaa/NR
2,030,735
Little Rock Municipal Property Owners Multipurpose Improvement Dist., Special Tax, Ser. A,
425
5.00%, 3/1/16
NR/NR
419,160
500
5.25%, 3/1/23
NR/NR
477,425
2,927,320
California–3.0%
Golden State Tobacco Securitization Corp. Tobacco Setlement Rev., Ser. A-1,
6,000
5.00%, 6/1/33
Baa3/BBB
5,272,800
10,000
6.75%, 6/1/39, (Pre-refunded @ $100, 6/1/13) (b)
Aaa/AAA
11,815,200
17,088,000
PIMCO Municipal Income Fund Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Colorado–2.7%
$
500
Confluence Metropolitan Dist. Rev., 5.45%, 12/1/34
NR/NR
$
432,575
Denver Health & Hospital Auth. Healthcare Rev., Ser. A (b),
2,000
5.375%, 12/1/28, (Pre-refunded @ $101, 12/1/08)
NR/BBB
2,074,220
1,000
6.00%, 12/1/23, (Pre-refunded @ $100, 12/1/11)
NR/BBB
1,121,350
12,400
Health Facs. Auth. Rev., Liberty Heights, zero coupon, 7/15/24 (b)
Aaa/AAA
5,898,184
4,965
Northwest Parkway Public Highway Auth. Rev.,
7.125%, 6/15/41, Ser. D, (Pre-refunded @ $102, 6/15/11) (b)
NR/NR
5,732,490
15,258,819
Connecticut–0.2%
1,000
State Dev. Auth. Pollution Control Rev., 5.85%, 9/1/28
Baa1/BBB−
1,024,570
District of Columbia–0.9%
5,010
Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24
Baa3/BBB
5,128,036
Florida–2.2%
1,000
Beacon Lakes Community Dev. Dist.,
Special Assessment, 6.00%, 5/1/38, Ser. A
NR/NR
875,980
940
Dev. Finance Corp. Rev., Learning Gate Community School,
6.00%, 2/15/37
NR/BBB−
895,416
9,000
Highlands Cnty. Health Facs. Auth. Rev., Adventist/Sunbelt,
6.00%, 11/15/31, Ser. A, (Pre-refunded @ $101, 11/15/11) (b)
A1/NR
10,133,820
500
Lee Cnty. Industrial Dev. Auth. Rev., 5.375%, 6/15/37, Ser. A
NR/BB
433,655
12,338,871
Georgia–0.3%
2,300
Medical Center Hospital Auth. Rev., 5.25%, 7/1/37
NR/NR
1,994,859
Illinois–11.4%
Chicago, GO Ser. A (FGIC),
2,935
5.375%, 1/1/34
Aaa/AAA
3,027,423
4,145
5.375%, 1/1/34, (Pre-refunded @ $101, 1/1/09) (b)
Aaa/AAA
4,313,992
10,115
Chicago Board of Education, GO, zero coupon, 12/1/31, Ser. A (FGIC)
Aaa/AAA
2,915,952
Educational Facs. Auth. Rev.,
1,115
Midwestern Univ., GO, 5.50%, 5/15/18, Ser. B
NR/AAA
1,131,324
Univ. of Chicago, GO,
5,000
5.125%, 7/1/38, Ser. A (i)
Aa1/AA
5,066,600
190
5.25%, 7/1/41
Aa1/AA
197,321
4,810
5.25%, 7/1/41, (Pre-refunded @ $101, 7/1/11) (b)
Aa1/AA
5,285,126
Finance Auth. Rev.,
5,000
5.50%, 11/15/29, (Pre-refunded @ $101, 11/15/09) (b)
A1/NR
5,333,150
1,260
5.65%, 11/15/24, (Pre-refunded @ $101, 11/15/09) (b)
A1/NR
1,347,230
1,000
6.25%, 8/15/35, Ser. A (d)
NR/NR
987,060
3,800
7.00%, 12/1/37, Ser. A
NR/NR
3,807,486
Health Facs. Auth. Rev.,
3,000
Decatur Memorial Hospital, 5.75%, 10/1/24
A2/A
3,119,790
5,425
Silver Cross Hospital,
5.50%, 8/15/25, (Pre-refunded @ $101, 8/15/09) (b)
NR/A
5,752,561
PIMCO Municipal Income Fund Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Illinois–(continued)
Lake Cnty. Community High School Dist., GO, Ser B. (FGIC),
$
5,000
zero coupon, 2/1/19
Aaa/AAA
$
3,139,550
5,000
zero coupon, 2/1/20
Aaa/AAA
2,960,350
5,690
zero coupon, 2/1/22
Aaa/AAA
2,987,136
7,345
Regional Transportation Auth. Rev., 5.50%, 6/1/23, Ser. B (FGIC)
Aaa/AAA
8,343,920
Univ. Rev. (FGIC),
1,495
5.25%, 4/1/32
Aaa/AAA
1,556,549
3,505
5.25%, 4/1/32, (Pre-refunded @ $100, 4/1/11) (b)
Aaa/AAA
3,807,832
65,080,352
Indiana–0.7%
500
Anderson Rev., 5.00%, 10/1/32
NR/NR
460,115
4,000
Health & Educational Facs. Financing Auth. Rev.,
Community Foundation of Northwest Indiana, 5.50%, 3/1/37
NR/BBB−
3,747,040
4,207,155
Iowa–1.9%
Finance Auth. Rev.,
4,890
5.50%, 11/15/37
NR/NR
4,254,887
3,500
6.75%, 11/15/37
NR/NR
3,541,930
1,500
6.75%, 11/15/42
NR/NR
1,512,600
2,000
Wedum Walnut Ridge LLC, 5.625%, 12/1/45, Ser. A
NR/NR
1,772,260
11,081,677
Kansas–3.9%
1,000
Lenexa, City Center East Tax Allocation, 6.00%, 4/1/27
NR/NR
948,710
500
Lenexa Rev., 5.50%, 5/15/39
NR/BBB−
456,980
650
Manhattan Rev., 5.125%, 5/15/42
NR/NR
547,124
Wichita Hospital Rev.,
5,000
5.625%, 11/15/31, Ser. III
NR/A+
5,141,600
14,370
6.25%, 11/15/24, Ser. XI
NR/A+
14,994,377
22,088,791
Kentucky–0.2%
860
Economic Dev. Finance Auth., Hospital Facs. Rev.,
St. Luke’s Hospital, 6.00%, 10/1/19, Ser. B
A3/A
865,126
Louisiana–5.5%
4,300
Local Gov’t Environmental Facs. & Community Dev. Auth. Rev., GO,
6.55%, 9/1/25 (ACA)
NR/NR
4,273,125
27,895
Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B
Baa3/BBB
27,286,889
31,560,014
Maryland–0.2%
1,150
Baltimore Water Project Rev., 5.125%, 7/1/42, Ser. A (FGIC)
Aaa/AAA
1,169,193
PIMCO Municipal Income Fund Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Massachusetts–1.9%
$
550
State Dev. Finance Agcy. Rev., Linden Ponds, 5.75%, 7/1/32, Ser. A
NR/NR
$
507,122
10,000
State Health & Educational Facs. Auth.,
Partners Healthcare Systems Rev., 5.75%, 7/1/32, Ser. C (i)
Aa2/AA
10,599,600
11,106,722
Michigan–2.8%
1,000
Detroit, GO, 5.375%, 4/1/17, Ser. A-1 (MBIA)
Aaa/AAA
1,082,330
775
East Lansing Economic Corp., Burcham Hills Rev., 5.25%, 7/1/37
NR/NR
661,152
4,550
Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A
NR/NR
3,648,873
3,000
Mount Clemens Community School Dist.,
GO, 5.00%, 5/1/31, (Pre-refunded @ $100, 11/1/11) (Q-SBLF) (b)
Aa3/AA−
3,261,540
50
Royal Oak Hospital Finance Auth. Rev.,
William Beaumont Hospital, 5.25%, 11/15/35, Ser. M (MBIA)
Aaa/AAA
51,042
460
Star International Academy, CP, 6.125%, 3/1/37 (ACA)
NR/BB+
460,363
4,000
State Hospital Finance Auth. Rev.,
Detroit Medical Center, 6.25%, 8/15/13
Ba3/BB−
4,020,880
775
State Public Educational Facs. Auth. Rev., 5.00%, 9/1/22
NR/BBB−
738,707
2,000
State Strategic Fund Ltd. Obligation Rev.,
Detroit Edison Pollution Control Co., 5.45%, 9/1/29
A3/A−
2,039,500
15,964,387
Minnesota–1.0%
Agricultural & Economic Dev. Board Rev., Health Care System,
95
6.375%, 11/15/29
A2/A
100,281
2,905
6.375%, 11/15/29, (Pre-refunded @ $101, 11/15/10) (b)
A2/A
3,238,058
North Oaks, Presbyterian Homes Rev.,
1,070
6.00%, 10/1/33
NR/NR
1,047,969
620
6.125%, 10/1/39
NR/NR
611,828
100
Rochester Rev., 5.30%, 4/1/37, Ser. A
NR/NR
86,958
500
Washington Cnty. Housing & Redev. Auth., 5.625%, 6/1/37, Ser. A
NR/NR
443,550
5,528,644
Missouri–0.7%
750
Branson Regional Airport Transportation Dev. Dist. Rev.,
6.00%, 7/1/37, Ser. A
NR/NR
709,477
2,500
Interstate 470 & 350 Transportation Dev. Dist. Rev.,
6.35%, 5/1/22, (Pre-refunded @ $100, 5/1/08) (b)
NR/NR
2,525,600
1,000
Joplin Industrial Dev. Auth. Rev., 5.75%, 5/15/26, Ser. F
NR/NR
988,760
4,223,837
Nevada–3.6%
3,000
Clark Cnty. Rev., 5.25%, 7/1/34,
Ser. B, (Pre-refunded @ $100, 7/1/11) (FGIC) (b)
Aaa/AAA
3,273,810
4,250
Truckee Meadows Water Auth. Rev.,
5.25%, 7/1/34, Ser. A, (Pre-refunded @ $100, 7/1/11) (FSA) (b)
Aaa/AAA
4,637,897
12,185
Washoe Cnty., GO, 5.00%, 1/1/35 (MBIA) (i)
Aaa/AAA
12,488,163
20,399,870
PIMCO Municipal Income Fund Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
New Hampshire–0.5%
$
3,000
State Business Finance Auth. Pollution Control Rev.,
Conn. Light & Power Co., 5.85%, 12/1/22
Baa1/BBB−
$
3,077,640
New Jersey–5.0%
16,550
Economic Dev. Auth., Kapkowski Road Landfill,
Special Assessment, 5.75%, 4/1/31
Baa3/NR
16,797,588
Economic Dev. Auth. Rev., Arbor Glen,
2,510
5.875%, 5/15/16
NR/NR
2,567,805
450
5.875%, 5/15/16, Ser. A, (Pre-refunded @ $102, 5/15/09) (b)
NR/NR
480,591
1,000
Health Care Facs. Financing Auth. Rev.,
Trinitas Hospital, 5.25%, 7/1/30, Ser. A
Baa3/BBB−
935,020
9,100
Tobacco Settlement Financing Corp. Rev., 5.00%, 6/1/41, Ser. 1A (i)
Baa3/BBB
7,794,059
28,575,063
New Mexico–0.4%
2,500
Farmington Pollution Control Rev., 5.80%, 4/1/22
Baa2/BBB−
2,504,000
New York–2.0%
4,200
Nassau Cnty. Industrial Dev. Agcy. Rev.,
Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A
NR/NR
4,278,708
New York City Municipal Water Finance Auth.,
Water & Sewer System Rev.
1,120
5.00%, 6/15/37, Ser. D (i)
Aa2/AA+
1,153,992
3,000
5.00%, 6/15/39, Ser. A
Aa2/AA+
3,080,340
2,875
Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A
Baa3/BBB−
2,886,299
11,399,339
North Carolina–0.8%
Capital Facs. Finance Agcy., Duke Univ. Rev., Ser. A,
570
5.125%, 10/1/41
Aa1/AA+
584,358
2,430
5.125%, 10/1/41, (Pre-refunded @ $100, 10/1/11) (b)
Aaa/AAA
2,652,321
1,500
Medical Care Commission Rev., 5.25%, 1/1/32
NR/NR
1,276,530
4,513,209
North Dakota–1.0%
5,400
Stark Cnty., 6.75%, 1/1/33
NR/NR
5,433,102
Ohio–2.8%
11,000
Buckeye Tobacco Settlement Financing Auth. Rev.,
5.875%, 6/1/47, Ser. A-2
Baa3/BBB
10,647,230
Lorain Cnty. Hospital Rev., Catholic Healthcare,
2,500
5.625%, 10/1/17
A1/AA−
2,654,875
2,565
5.75%, 10/1/18
A1/AA−
2,724,799
16,026,904
Pennsylvania–5.1%
Allegheny Cnty. Hospital Dev. Auth. Rev.,
8,600
5.375%, 11/15/40, Ser. A
Ba2/BB
7,523,108
5,780
9.25%, 11/15/30, Ser. B, (Pre-refunded @ $102, 11/15/10) (b)
Ba3/AAA
6,896,985
PIMCO Municipal Income Fund Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Pennsylvania–(continued)
$
1,000
Allegheny Cnty. Industrial Dev. Auth. Rev., 5.60%, 9/1/30
Baa1/BBB+
$
1,018,320
500
Cumberland Cnty. Municipal Auth. Rev., 5.625%, 7/1/28 (d)
NR/BBB−
493,700
2,575
Delaware Cnty. Auth. College Rev., Neumann College, 5.80%, 10/1/17
NR/BBB
2,716,677
2,000
Harrisburg Auth. Rev., 6.00%, 9/1/36
NR/NR
1,965,020
Higher Educational Facs. Auth. Rev.,
6,200
6.00%, 1/15/31, Ser. A
Aa3/AA−
6,558,980
1,000
LaSalle Univ., 5.00%, 5/1/37, Ser. A
NR/BBB
941,440
Lancaster Cnty. Hospital Auth., Ser. A
750
6.25%, 7/1/26
NR/NR
753,645
85
6.375%, 7/1/30
NR/NR
85,202
28,953,077
Puerto Rico–1.1%
135
Commonwealth of Puerto Rico, GO, 5.00%, 7/1/35
Baa3/BBB−
129,928
Electric Power Auth. Power Rev., Ser. NN, 5.125%, 7/1/29
1,600
(Pre-refunded@$100,7/1/13)(b)
A3/AAA
1,788,768
Puerto Rico Sales Tax Financing Corp. Rev.,
32,550
zero coupon, 8/1/54 (AMBAC)
Aaa/AAA
2,577,635
29,200
zero coupon, 8/1/56
A1/A+
2,073,200
6,569,531
Rhode Island–4.2%
23,800
Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A
Baa3/BBB
23,904,482
South Carolina–4.4%
Greenwood Cnty. Hospital Rev., Self Memorial Hospital,
3,500
5.50%, 10/1/21
A2/A
3,630,865
2,000
5.50%, 10/1/26
A2/A
2,050,340
3,000
Jobs Economic Dev. Auth. Hospital Facs. Rev.,
Georgetown Memorial Hospital, 5.375%, 2/1/30 (Radian)
NR/AA
3,007,050
450
Jobs Economic Dev. Auth. Rev., 5.50%, 5/1/28
NR/NR
413,424
15,600
Tobacco Settlement Rev. Management Auth. Rev.,
6.375%, 5/15/30, Ser. B
Baa3/BBB
15,868,632
24,970,311
Tennessee–0.7%
940
Memphis Health Educational & Housing Fac. Rev.,
Wesley Housing Corp. Project, 6.95%, 1/1/20 (a) (j)
NR/NR
470,000
3,500
Sumner Cnty. Health Educational & Housing Facs. Board, 5.50%, 11/1/37
NR/NR
3,424,470
3,894,470
Texas–10.4%
1,750
Austin Convention Enterprises, Inc. Rev., 5.75%, 1/1/32, Ser. B, (Pre-refunded @ $100, 1/1/11) (b)
Aaa/NR
1,911,472
4,000
Austin Rev., 5.25%, 5/15/31, Ser. A & B (FSA)
Aaa/AAA
4,117,200
PIMCO Municipal Income Fund Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Texas–(continued)
$
2,935
Bell Cnty. Health Fac. Dev. Corp. Rev., 5.25%, 11/15/19, (Pre-refunded @ $101, 11/15/08) (b)
NR/AAA
$
3,039,163
10,000
Coppell Independent School Dist., GO, zero coupon, 8/15/29, (PSF-GTD)
Aaa/AAA
3,497,500
Duncanville Independent School Dist., GO, Ser. B (PSF-GTD),
20
5.25%, 2/15/32
Aaa/AAA
20,703
3,660
5.25%, 2/15/32, (Pre-refunded @ $100, 2/15/12) (b)
Aaa/AAA
4,031,527
5,000
Harris Cnty. Health Facs. Dev. Corp. Rev., (b),
Christus Health, 5.375%, 7/1/29, Ser. A, (Pre-refunded @ $101, 7/1/09) (MBIA)
Aaa/AAA
5,273,350
7,000
Memorial Hermann Healthcare, 6.375%, 6/1/29, (Pre-refunded @ $101, 6/1/11)
A2/A
7,902,160
8,500
St. Lukes Episcopal Hospital Rev., 5.375%, 2/15/26, Ser. A, (Pre-refunded @ $100, 8/15/11) (i)
NR/AAA
9,323,225
Mansfield Independent School Dist., GO (PSF-GTD),
1,715
5.25%, 2/15/23, (Pre-refunded @ $100, 2/15/11) (b)
Aaa/AAA
1,857,431
285
5.25%, 2/15/23
Aaa/AAA
295,967
4,380
Southlake Park Dev. Corp. Rev.,
5.60%, 8/15/31, (Pre-refunded @ $100, 2/15/11) (AMBAC) (b)
Aaa/AAA
4,546,265
400
State Public Finance Auth. Rev., 5.875%, 12/1/36, Ser. A
Baa3/BBB−
395,304
19,990
State Turnpike Auth. Rev., zero coupon, 8/15/25, Ser. A (AMBAC)
Aaa/AAA
8,512,941
4,530
State Water Financial Assistance, GO, 5.30%, 8/1/18, Ser. A
Aa1/AA
4,738,154
59,462,362
Utah–1.4%
7,000
Salt Lake Cnty. Hospital Rev.,
IHC Health Services, 5.125%, 2/15/33 (AMBAC) (b)
Aaa/AAA
7,449,400
600
Utah Cnty. Lincoln Academy Charter School,
GO, 5.875%, 6/15/37, Ser. A (ACA) (a) (c)
NR/NR
572,952
8,022,352
Virginia–0.3%
2,000
Peninsula Town Center Community Dev. Auth. Rev., 6.45%, 9/1/37
NR/NR
1,963,620
Washington–2.0%
5,420
King Cnty. School Dist. No. 1 Seattle,
GO, 5.25%, 12/1/21, Ser. A (MBIA)
Aaa/AAA
5,700,810
2,000
State Health Care Facs. Auth. Rev., 6.125%, 8/15/37
Baa2/BBB
1,945,460
State Housing Finance Commission Rev., Skyline at First Hill,
275
5.25%, 1/1/17, Ser. A
NR/NR
272,099
3,600
5.625%, 1/1/38, Ser. A
NR/NR
3,278,880
11,197,249
Wisconsin–3.5%
Badger Tobacco Asset Securitization Corp. Rev.,
5,000
5.75%, 6/1/12
Baa3/BBB
5,268,750
9,785
6.00%, 6/1/17
Baa3/BBB
10,000,172
2,250
Health & Educational Facs. Auth. Rev.,
Divine Savior Heathcare Rev., 5.00%, 5/1/32
NR/BBB
2,025,180
PIMCO Municipal Income Fund Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Wisconsin–(continued)
$
2,230
Kenosha Hospital & Medical Center, 5.625%, 5/15/29
NR/A
$
2,254,686
550
Milwaukee Redev. Auth. Rev., 5.65%, 8/1/37, Ser. A
NR/NR
505,104
20,053,892
Total Municipal Bonds & Notes (cost–$533,099,640)
552,473,512
VARIABLE RATE NOTES (a)(c)(e)(f)–3.7%
Hawaii–0.3%
1,388
City & Cnty. of Honolulu Rev., 6.12%, 7/1/23, Ser. 400 (FGIC)
Aaa/NR
1,556,303
Illinois–0.5%
2,902
Cook Cnty., GO, 12.12%, 11/15/28, Ser. 458 (FGIC)
Aaa/NR
3,164,741
New York–1.7%
New York City Municipal Water Finance Auth., Water & Sewer System Rev.,
6,000
9.979%, 6/15/39
Aa2/NR
6,728,400
2,600
11.815%, 6/15/26
NR/AA+
2,975,570
9,703,970
Texas–0.8%
3,595
Harris Cnty. Health Facs. Dev. Corp. Rev.,
14.60%, 7/1/29, Ser. 357 (MBIA)
Aaa/NR
4,577,693
Washington–0.4%
1,800
Seattle, GO, 13.35%, 12/15/28, Ser. 348
Aa1/NR
2,045,700
Total Variable Rate Notes (cost–$17,843,029)
21,048,407
U.S. TREASURY BILLS (g)–0.0%
90
2.985%, 3/13/08 (cost–$89,695)
NR/NR
89,695
Total Investments before options written (cost–$551,032,364)–100.3%
573,611,614
OPTIONS WRITTEN (h)–(0.3)%
Contracts
Call Options–(0.3)%
U.S. Treasury Notes 10 yr. Futures (CBOT),
573
strike price $114, expires 2/22/08
(1,665,281
)
Put Options–(0.0)%
U.S. Treasury Notes 10 yr. Futures (CBOT),
573
strike price $110, expires 2/22/08
(8,953
)
Total Options Written (premiums received–$790,746)
(1,674,234
)
Total Investments net of options written (cost–$550,241,618)–100.0%
$
571,937,380
Notes to Schedule 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 development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees or persons acting at their discretion pursuant to guidelines established by the Board of Trustees. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the last quoted mean price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange traded options and futures are valued at the settlement price determined by the relevant exchange. Short-term investments maturing in 60 days or less are valued at amortized cost, if their original term to 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. 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 normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (‘‘NYSE’’) on each day the NYSE is open for business.
(a)
Private Placement — Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $21,518,407, representing 3.8% of total investments.
(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 (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate).
(c)
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.
(d)
When-issued or delayed-delivery security. To be settled/delivered after January 31, 2008.
(e)
Inverse Floater — The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index.
(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 January 31, 2008.
(g)
All or partial amount segregated as initial margin on futures contracts.
(h)
Non-income producing.
(i)
Residual Interest Bonds held in trust — Represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
(j)
Security in Default
Glossary:
ACA – insured by American Capital Access Holding Ltd.
AMBAC – insured by American Municipal Bond Assurance Corp.
CBOT – Chicago Board of Trade
CP – Certificates of Participation
FGIC – insured by Financial Guaranty Insurance Co.
FSA – insured by Financial Security Assurance, Inc.
GO – General Obligation Bond
GTD – Guaranteed
MBIA – insured by Municipal Bond Investors Assurance
NR – Not Rated
PSF – Public School Fund
Q-SBLF – Qualified School Bond Loan Fund
Radian – insured by Radian Guaranty, Inc.
Other Investments:
(1) Futures contracts outstanding at January 31, 2008:
Type
Contracts
Market
Value
(000)
Expiration
Date
Unrealized
Depreciation
Short:
U.S. Treasury Bond Futures
(406
)
$
(48,440,875
)
3/19/08
$
(691,641
)
(2) Transactions in options written for the nine months ended January 31, 2008:
Contracts/Notional
Premiums
Options outstanding, April 30, 2007
—
$
—
Options written
1,146
790,746
Options outstanding, January 31, 2008
1,146
$
790,746
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 Act (17CFR270.30a -3(c)), 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 over financial reporting (as defined in Rule 30a-3(d)) under the Act (17 CFR270.30a -3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits
(a) Exhibit 99.302 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
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: March 26, 2008
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: March 26, 2008
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: March 26, 2008
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: March 26, 2008