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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, 2011
 
    
Date of Reporting Period:
  July 31, 2010
Form N-Q is to be used by management investment companies, other than small business investment companies 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 30b1-5 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 respond 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, 100 F Street, NE, Washington, DC 20549-2001. 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
July 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
MUNICIPAL BONDS & NOTES—95.0%            
       
Alabama—0.9%
            
$ 2,500    
Birmingham-Baptist Medical Centers Special Care Facs. Financing Auth. Rev., Baptist Health Systems, Inc., 5.875%, 11/15/24, Ser. A
   Baa2/NR   $ 2,502,650  
       
Huntsville-Redstone Village Special Care Facs. Financing Auth. Rev., Redstone Village Project,
            
  250    
5.50%, 1/1/28
   NR/NR     208,835  
  885    
5.50%, 1/1/43
   NR/NR     663,874  
  1,350    
Montgomery Medical Clinic Board Rev., Jackson Hospital & Clinic, 5.25%, 3/1/31
   Baa2/BBB-     1,286,307  
       
 
          
       
 
         4,661,666  
       
 
          
       
 
            
       
Alaska—1.1%
            
  3,280    
Borough of Matanuska-Susitna Rev., Goose Creek Correctional Center, 6.00%, 9/1/32 (AGC)
   Aa2/AAA     3,772,328  
  900    
Industrial Dev. & Export Auth. Rev., Boys & Girls Home, 6.00%, 12/1/36
   NR/NR     523,539  
  2,400    
Northern Tobacco Securitization Corp. Rev., 5.00%, 6/1/46, Ser. A
   Baa3/NR     1,573,608  
       
 
          
       
 
         5,869,475  
       
 
          
       
 
            
       
Arizona—4.9%
            
  5,000    
Apache Cnty. Industrial Dev. Auth. Rev.,
            
       
Tucson Electric Power Co. Project, 5.875%, 3/1/33, Ser. B
   Baa3/BBB-     5,014,700  
       
Health Facs. Auth. Rev.,
            
  2,050    
Banner Health, 5.50%, 1/1/38, Ser. D
   NR/A+     2,112,710  
  2,750    
Beatitudes Campus Project, 5.20%, 10/1/37
   NR/NR     2,162,792  
  2,500    
Maricopa Cnty. Pollution Control Corp. Rev., 5.00%, 6/1/35, Ser. A
   A1/A     2,526,925  
  4,150    
Pima Cnty. Industrial Dev. Auth. Rev., Tucson Electric Power Co., 6.375%, 9/1/29, Ser. A
   Baa3/BBB-     4,247,857  
  5,000    
Salt River Project Agricultural Improvement & Power Dist. Rev., 5.00%, 1/1/39, Ser. A (i)
   Aa1/AA     5,262,600  
  4,200    
Salt Verde Financial Corp. Rev., 5.00%, 12/1/37
   A3/A     3,721,578  
       
 
          
       
 
         25,049,162  
       
 
          
       
 
            
       
Arkansas—0.4%
            
  8,500    
Dev. Finance Auth. Rev., Arkansas Cancer Research Center Project, zero coupon, 7/1/36 (AMBAC)
   Aa2/NR     2,324,920  
       
 
          
       
 
            
       
California—8.0%
            
  3,000    
Chula Vista Rev., San Diego Gas & Electric, 5.875%, 2/15/34, Ser. B
   Aa3/A+     3,374,220  
  6,000    
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/33, Ser. A-1
   Baa3/BBB     4,591,320  
  2,000    
Health Facs. Financing Auth. Rev., Catholic Healthcare West, 6.00%, 7/1/39, Ser. A
   A2/A     2,130,420  
  4,175    
Montebello Unified School Dist., GO, 5.00%, 8/1/33 (AGM)
   Aa3/AAA     4,271,610  
  5,000    
Orange Cnty. Airport Rev., 5.25%, 7/1/39, Ser. A
   Aa3/AA-     5,146,700  
       
State, GO,
            
  300    
5.00%, 6/1/37
   A1/A-     293,475  
  4,200    
6.00%, 4/1/38
   A1/A-     4,534,782  
       
Statewide Communities Dev. Auth. Rev.,
            
  1,000    
Catholic Healthcare West, 5.50%, 7/1/31, Ser. E
   A2/A     1,031,800  
       
Methodist Hospital Project (FHA),
            
  2,600    
6.625%, 8/1/29
   Aa2/AA     3,000,712  
  9,500    
6.75%, 2/1/38
   Aa2/AA     10,899,730  

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
       
California (continued)
            
$ 4,000    
Whittier Union High School Dist., GO, zero coupon, 8/1/25
   NR/AA-   $ 1,711,400  
       
 
          
       
 
         40,986,169  
       
 
          
       
 
            
       
Colorado—0.6%
            
  500    
Confluence Metropolitan Dist. Rev., 5.45%, 12/1/34
   NR/NR     353,470  
  450    
Denver Health & Hospital Auth. Rev., 5.625%, 12/1/40
   NR/BBB     447,692  
  500    
Public Auth. for Colorado Energy Rev., 6.50%, 11/15/38
   A2/A     554,290  
  1,500    
Univ. of Colorado Rev., 5.375%, 6/1/38, Ser. A
   Aa2/AA-     1,612,725  
       
 
          
       
 
         2,968,177  
       
 
          
       
 
            
       
Connecticut—0.2%
            
  1,000    
State Dev. Auth. Rev., Connecticut Light & Power Co., 5.85%, 9/1/28, Ser. A
   Baa1/BBB     1,017,910  
       
 
          
       
 
            
       
Delaware—0.1%
            
  650    
State Economic Dev. Auth. Rev., Delmarva Power & Light Co., 5.40%, 2/1/31
   Baa2/BBB+     672,314  
       
 
          
       
 
            
       
District of Columbia—1.3%
            
  2,500    
Dist. of Columbia Rev., Brookings Institution, 5.75%, 10/1/39
   Aa3/A+     2,780,600  
  3,895    
Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24
   Baa3/BBB     3,943,493  
       
 
          
       
 
         6,724,093  
       
 
          
       
 
            
       
Florida—4.0%
            
  895    
Beacon Lakes Community Dev. Dist., Special Assessment, 6.00%, 5/1/38, Ser. A
   NR/NR     777,200  
  4,000    
Broward Cnty. Water & Sewer Rev., 5.25%, 10/1/34, Ser. A (i)
   Aa2/AA     4,208,280  
  500    
Lee Cnty. Industrial Dev. Auth. Rev., Sara Lee Charter Foundation, 5.375%, 6/15/37, Ser. A
   NR/BB     410,445  
  3,000    
Miami-Dade Cnty. Airport Rev., 5.50%, 10/1/36, Ser. A
   A2/A-     3,077,880  
  1,250    
Miami-Dade Cnty. School Board, CP, 5.375%, 2/1/34, Ser. A (AGC)
   Aa3/AAA     1,301,412  
  3,900    
State Board of Education, GO, 5.00%, 6/1/38, Ser. D (i)
   Aa1/AAA     4,089,735  
  5,685    
State Board of Governors Rev., Florida Univ., 6.50%, 7/1/33
   Aa2/AA     6,515,124  
       
 
          
       
 
         20,380,076  
       
 
          
       
 
            
       
Georgia—0.4%
            
  2,300    
Medical Center Hospital Auth. Rev.,
            
       
Spring Harbor Green Island Project, 5.25%, 7/1/37
   NR/NR     1,881,699  
       
 
          
       
 
            
       
Illinois—4.9%
            
       
Chicago, GO,
            
  5,000    
5.00%, 1/1/34, Ser. C (i)
   Aa2/AA-     5,092,550  
  10,115    
Chicago Board of Education School Reform, GO, zero coupon, 12/1/31, Ser. A (FGIC-NPFGC)
   Aa2/AA-     2,957,626  
  1,250    
Chicago Motor Fuel Tax Rev., 5.00%, 1/1/38, Ser. A (AGC)
   Aa3/AAA     1,273,963  
       
Finance Auth. Rev.,
            
  1,000    
Memorial Health Systems, 5.50%, 4/1/39
   A1/A+     1,009,520  
  400    
OSF Healthcare System, 7.125%, 11/15/37, Ser. A
   A3/A     440,644  
       
Univ. of Chicago,
            
  190    
5.25%, 7/1/41, Ser. 05-A
   Aa1/AA     193,230  
  10,000    
5.50%, 7/1/37, Ser. B (i)
   Aa1/AA     10,972,500  
  1,900    
Springfield Electric Rev., 5.00%, 3/1/36
   Aa3/AA-     1,917,822  
  1,495    
Univ. of Illinois Rev., 5.25%, 4/1/32, Ser. B (FGIC-NPFGC)
   Aa2/AA-     1,500,561  
       
 
          
       
 
         25,358,416  
       
 
          

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
       
Indiana—0.7%
            
       
Finance Auth. Rev.,
            
$ 1,500    
Duke Energy Indiana, Inc., 6.00%, 8/1/39, Ser. B
   NR/A   $ 1,630,200  
  1,000    
United States Steel Corp., 6.00%, 12/1/26
   Ba2/BB     1,032,110  
  1,000    
Municipal Power Agcy. Rev., 6.00%, 1/1/39, Ser. B
   A1/A+     1,077,870  
       
 
          
       
 
         3,740,180  
       
 
          
       
 
            
       
Iowa—1.7%
            
       
Finance Auth. Rev.,
            
  4,890    
Deerfield Retirement Community, Inc., 5.50%, 11/15/37, Ser. A
   NR/NR     3,283,782  
       
Edgewater LLC Project,
            
  3,500    
6.75%, 11/15/37
   NR/NR     3,344,565  
  1,500    
6.75%, 11/15/42
   NR/NR     1,408,485  
  1,600    
Wedum Walnut Ridge LLC Project, 5.625%, 12/1/45, Ser. A (b)
   NR/NR     969,440  
       
 
          
       
 
         9,006,272  
       
 
          
       
 
            
       
Kansas—1.5%
            
  1,000    
Dev. Finance Auth. Rev., Adventist Health, 5.75%, 11/15/38
   Aa3/AA-     1,101,880  
  1,000    
Lenexa City, Tax Allocation, Center East Project, 6.00%, 4/1/27
   NR/NR     815,970  
  650    
Manhattan Rev., Meadowlark Hills Retirement, 5.125%, 5/15/42, Ser. B
   NR/NR     513,130  
  5,000    
Wichita Hospital Rev., Facs. Improvements, 5.625%, 11/15/31, Ser. III
   NR/A+     5,108,300  
       
 
          
       
 
         7,539,280  
       
 
          
       
Kentucky—1.0%
            
       
Economic Dev. Finance Auth. Rev.,
            
       
Baptist Healthcare Systems, Ser. A,
            
  1,000    
5.375%, 8/15/24
   Aa3/NR     1,097,780  
  1,200    
5.625%, 8/15/27
   Aa3/NR     1,314,180  
  1,000    
Owensboro Medical Healthcare Systems, 6.375%, 6/1/40, Ser. A
   Baa2/NR     1,042,500  
  760    
St. Luke’s Hospital, 6.00%, 10/1/19, Ser. B
   A3/A     762,789  
  1,000    
Ohio Cnty. Pollution Control Rev., Big Rivers Electric Corp., 6.00%, 7/15/31, Ser. A
   Baa1/BBB-     1,023,570  
       
 
          
       
 
         5,240,819  
       
 
          
       
 
            
       
Louisiana—6.2%
            
  3,930    
Local Gov’t Environmental Facs. & Community Dev. Auth. Rev.,
Capital Projects & Equipment Acquisition, 6.55%, 9/1/25 (ACA)
   NR/NR     3,612,535  
  750    
Woman’s Hospital Foundation, 5.875%, 10/1/40, Ser. A
   A3/BBB+     751,350  
  27,895    
Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B
   Baa3/BBB     27,379,500  
       
 
          
       
 
         31,743,385  
       
 
          
       
 
            
       
Maryland—0.3%
            
  1,500    
Economic Dev. Corp. Rev., 5.75%, 6/1/35, Ser. B
   Baa3/NR     1,540,650  
       
 
          
       
 
            
       
Massachusetts—0.4%
            
  550    
Dev. Finance Agcy. Rev., Linden Ponds, Inc. Fac., 5.75%, 11/15/35, Ser. A
   NR/NR     399,867  
  1,500    
State College Building Auth. Rev., 5.50%, 5/1/39, Ser. A
   Aa2/AA-     1,647,090  
       
 
          
       
 
         2,046,957  
       
 
          

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
       
Michigan—2.2%
            
$ 1,000    
Detroit, GO, 5.375%, 4/1/17, Ser. A-1 (NPFGC)
   Baa1/A   $ 988,380  
  4,550    
Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A
   NR/NR     3,055,052  
       
Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital,
            
  50    
5.25%, 11/15/35, Ser. M (NPFGC)
   A1/A     47,321  
  1,500    
8.25%, 9/1/39
   A1/A     1,800,660  
  3,260    
State Hospital Finance Auth. Rev., Detroit Medical Center, 6.25%, 8/15/13, Ser. A
   Ba3/BB-     3,270,562  
  2,000    
Strategic Fund Rev., Detroit Edison Co. Pollution Control, 5.45%, 9/1/29, Ser. C
   A2/A-     2,014,840  
       
 
          
       
 
         11,176,815  
       
 
          
       
 
            
       
Minnesota—0.4%
            
  95    
Agricultural & Economic Dev. Board Rev., Health Care Systems, 6.375%, 11/15/29, Ser. A
   A2/A     96,320  
  1,500    
St. Louis Park Rev., Nicollett Health Services, 5.75%, 7/1/39
   NR/A     1,509,255  
  500    
Washington Cnty. Housing & Redev. Auth. Rev., Birchwood & Woodbury Projects, 5.625%, 6/1/37, Ser. A
   NR/NR     459,545  
       
 
          
       
 
         2,065,120  
       
 
          
       
 
            
       
Missouri—0.2%
            
  1,000    
Joplin Industrial Dev. Auth. Rev., Christian Homes, Inc., 5.75%, 5/15/26, Ser. F
   NR/NR     949,220  
       
 
          
       
 
            
       
Montana—0.2%
            
  1,000    
Forsyth Pollution Control Rev., 5.00%, 5/1/33, Ser. A
   A3/A-     1,042,930  
       
 
          
       
 
            
       
Nevada—3.1%
            
  5,000    
Clark Cnty., GO, 4.75%, 6/1/30 (AGM)
   Aaa/AAA     4,999,700  
       
Washoe Cnty., Water & Sewer, GO (NPFGC),
            
  9,755    
5.00%, 1/1/35
   Aa1/AA     9,916,153  
  1,030    
5.00%, 1/1/35 (Pre-refunded @ $100, 1/1/16) (c)
   Aa1/AA     1,214,236  
       
 
          
       
 
         16,130,089  
       
 
          
       
 
            
       
New Hampshire—0.6%
            
  3,000    
Business Finance Auth. Pollution Control Rev., Connecticut Light & Power Co., 5.85%, 12/1/22, Ser. A
   Baa1/BBB     3,053,820  
       
 
          
       
 
            
       
New Jersey—5.4%
            
  2,000    
Economic Dev. Auth. Rev., School Facs. Construction, 5.50%, 12/15/34, Ser. Z (AGC)
   Aa3/AAA     2,212,880  
  16,550    
Economic Dev. Auth., Special Assessment, Kapkowski Road Landfill Project, 5.75%, 4/1/31
   Baa3/NR     16,829,860  
  1,000    
Health Care Facs. Financing Auth. Rev., Trinitas Hospital, 5.25%, 7/1/30, Ser. A
   Baa3/BBB-     913,470  
  2,000    
State Turnpike Auth. Rev., 5.25%, 1/1/40, Ser. E
   A3/A+     2,115,440  
  9,100    
Tobacco Settlement Financing Corp. Rev., 5.00%, 6/1/41, Ser. 1-A
   Baa3/BBB     5,990,530  
       
 
          
       
 
         28,062,180  
       
 
          
       
 
            
       
New Mexico—1.5%
            
  1,000    
Farmington Pollution Control Rev., 5.90%, 6/1/40, Ser. D
   Baa3/BB+     1,006,570  
  6,400    
Hospital Equipment Loan Council Rev., Presbyterian Healthcare, 5.00%, 8/1/39
   Aa3/AA-     6,544,192  
       
 
          
       
 
         7,550,762  
       
 
          

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
       
New York—6.8%
            
       
Liberty Dev. Corp. Rev., Goldman Sachs Headquarters,
            
$ 7,500    
5.25%, 10/1/35
   A1/A   $ 7,690,200  
  3,000    
5.50%, 10/1/37
   A1/A     3,175,140  
  4,200    
Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A
   NR/NR     4,206,930  
       
New York City Municipal Water Finance Auth. Water & Sewer Rev.,
            
  13,000    
5.00%, 6/15/26, Ser. E (i)
   Aa1/AAA     13,297,050  
  670    
5.00%, 6/15/37, Ser. D (i)
   Aa1/AAA     698,113  
  3,000    
Second Generation Resolutions, 5.00%, 6/15/39, Ser. GG-1
   Aa2/AA+     3,162,330  
  1,000    
State Dormitory Auth. Rev., 5.00%, 3/15/38, Ser. A
   NR/AAA     1,060,990  
  1,625    
Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A
   Baa1/BBB     1,625,618  
       
 
          
       
 
         34,916,371  
       
 
          
       
 
            
       
North Carolina—0.3%
            
  570    
Capital Facs. Finance Agcy. Rev., Duke Univ. Project, 5.125%, 10/1/41, Ser. A
   Aa1/AA+     581,508  
  1,500    
Medical Care Commission Rev., Village at Brookwood, 5.25%, 1/1/32
   NR/NR     1,098,630  
       
 
          
       
 
         1,680,138  
       
 
          
       
 
            
       
Ohio—2.8%
            
  11,000    
Buckeye Tobacco Settlement Financing Auth. Rev., 5.875%, 6/1/47, Ser. A-2
   Baa3/BBB     7,851,690  
  500    
Higher Educational Fac. Commission Rev., Univ. Hospital Health Systems, 6.75%, 1/15/39, Ser. 2009-A
   A2/A     536,340  
       
Lorain Cnty. Hospital Rev., Catholic Healthcare, Ser. A,
            
  2,500    
5.625%, 10/1/17
   A1/AA-     2,582,800  
  2,565    
5.75%, 10/1/18
   A1/AA-     2,650,594  
  500    
Montgomery Cnty. Rev., Miami Valley Hospital, 6.25%, 11/15/39, Ser. A
   Aa3/NR     526,525  
  250    
State Rev., Ashland Univ. Project, 6.25%, 9/1/24
   Ba1/NR     256,847  
       
 
          
       
 
         14,404,796  
       
 
          
       
 
            
       
Oregon—0.5%
            
  2,000    
Oregon Health & Science Univ. Rev., 5.75%, 7/1/39, Ser. A
   A2/BBB+     2,125,880  
  600    
State Department of Administrative Services, CP, 5.25%, 5/1/39, Ser. A
   Aa2/AA-     634,404  
       
 
          
       
 
         2,760,284  
       
 
          
       
 
            
       
Pennsylvania—6.1%
            
  5,000    
Geisinger Auth. Rev., 5.25%, 6/1/39, Ser. A
   Aa2/AA     5,222,150  
  2,000    
Harrisburg Auth. Rev., Harrisburg Univ. of Science, 6.00%, 9/1/36, Ser. B
   NR/NR     1,796,780  
       
Higher Educational Facs. Auth. Rev.,
            
  500    
Edinboro Univ. Foundation, 6.00%, 7/1/43
   Baa3/BBB-     508,935  
  750    
Thomas Jefferson Univ., 5.00%, 3/1/40
   A1/AA-     772,410  
  6,200    
UPMC Health System, 6.00%, 1/15/31, Ser. A (Pre-refunded @ $101, 1/15/11) (c)
   Aa3/A+     6,421,154  
       
Lancaster Cnty. Hospital Auth. Rev., Brethren Village Project, Ser. A,
            
  750    
6.25%, 7/1/26
   NR/NR     741,765  
  85    
6.375%, 7/1/30
   NR/NR     82,617  

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
       
Pennsylvania (continued)
            
$ 1,100    
Luzerne Cnty. Industrial Dev. Auth. Rev., Pennsylvania American Water Co., 5.50%, 12/1/39
   A2/A   $ 1,135,541  
  7,000    
Philadelphia, GO, 5.25%, 12/15/32, Ser. A (AGM)
   Aa3/AAA     7,268,240  
  4,700    
Philadelphia Hospitals & Higher Education Facs. Auth. Rev., Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A
   Baa3/BBB     4,701,739  
  500    
Philadelphia Water Rev., 5.25%, 1/1/36, Ser. A
   A1/A     521,720  
  2,000    
Turnpike Commission Rev., 5.125%, 12/1/40, Ser. D
   A3/A-     2,030,220  
       
 
          
       
 
         31,203,271  
       
 
          
       
 
            
       
Puerto Rico—1.3%
            
  135    
Commonwealth of Puerto Rico, Public Improvements, GO, 5.00%, 7/1/35, Ser. B
   A3/BBB-     132,542  
       
Sales Tax Financing Corp. Rev.,
            
  32,550    
zero coupon, 8/1/54, Ser. A (AMBAC)
   Aa2/AA-     2,045,442  
  29,200    
zero coupon, 8/1/56, Ser. A
   Aa2/AA-     1,589,648  
  3,000    
5.375%, 8/1/38, Ser. C
   A1/A+     3,040,500  
       
 
          
       
 
         6,808,132  
       
 
          
       
 
            
       
Rhode Island—4.4%
            
  23,800    
Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A
   Baa3/BBB     22,634,514  
       
 
          
       
 
            
       
South Carolina—1.4%
            
       
Greenwood Cnty. Hospital Rev., Self Memorial Hospital,
            
  3,500    
5.50%, 10/1/21
   A2/A     3,543,575  
  2,000    
5.50%, 10/1/26
   A2/A     2,015,780  
  450    
Jobs-Economic Dev. Auth. Rev., Lutheran Homes, 5.50%, 5/1/28
   NR/NR     400,374  
  1,000    
State Public Service Auth. Rev., 5.25%, 1/1/39, Ser. B
   Aa2/AA-     1,081,790  
       
 
          
       
 
         7,041,519  
       
 
          
       
 
            
       
Tennessee—4.7%
            
  940    
Memphis Health Educational & Housing Fac. Board Rev., Wesley Housing Corp. Project, 6.95%, 1/1/20 (a)(b)(e)(j) (acquisition cost-$935,300; purchased 6/29/01)
   NR/NR     942,331  
  5,000    
Metropolitan Gov’t Nashville & Davidson Cnty. Health & Educational Facs. Board Rev., Vanderbilt Univ., 5.00%, 10/1/39, Ser. 3012 (i)
   Aa2/AA     5,364,150  
       
Tennessee Energy Acquisition Corp. Rev.,
            
  370    
5.00%, 2/1/21, Ser. C
   Baa1/A     373,308  
  5,000    
5.00%, 2/1/27, Ser. C
   Baa1/A     4,895,550  
  6,460    
5.25%, 9/1/17, Ser. A
   Ba3/BB+     6,752,573  
  600    
5.25%, 9/1/21, Ser. A
   Ba3/BB+     613,128  
  300    
5.25%, 9/1/22, Ser. A
   Ba3/BB+     305,634  
  5,000    
5.25%, 9/1/24, Ser. A
   Ba3/BB+     5,059,400  
       
 
          
       
 
         24,306,074  
       
 
          
       
 
            
       
Texas—8.6%
            
  10,000    
Coppell Independent School Dist., GO, zero coupon, 8/15/29 (PSF-GTD)
   Aaa/AAA     4,295,500  
  1,200    
Dallas Rev., Dallas Civic Center, 5.25%, 8/15/38 (AGC)
   Aa3/AAA     1,240,956  
  20    
Duncanville Independent School Dist., GO, 5.25%, 2/15/32, Ser. B (PSF-GTD)
   Aaa/AAA     20,457  
  285    
Mansfield Independent School Dist., GO, 5.25%, 2/15/23 (PSF-GTD)
   Aaa/AAA     289,574  
       
Municipal Gas Acquisition & Supply Corp. I Rev.,
            
  6,500    
5.25%, 12/15/23, Ser. A
   A2/A     6,438,055  

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
       
Texas (continued)
            
$ 150    
5.25%, 12/15/25, Ser. A
   A2/A   $ 147,969  
  6,500    
6.25%, 12/15/26, Ser. D
   A2/A     7,072,585  
       
North Harris Cnty. Regional Water Auth. Rev.,
            
  4,200    
5.25%, 12/15/33
   A1/A+     4,328,688  
  4,200    
5.50%, 12/15/38
   A1/A+     4,362,204  
       
North Texas Tollway Auth. Rev.,
            
  3,000    
5.25%, 1/1/44, Ser. C
   A2/A-     3,040,560  
  6,050    
5.625%, 1/1/33, Ser. A
   A2/A-     6,338,585  
  600    
5.75%, 1/1/33, Ser. F
   A3/BBB+     629,436  
  400    
State Public Finance Auth. Rev., 5.875%, 12/1/36, Ser. A
   Baa3/BBB-     397,576  
  4,000    
Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev., Baylor Health Care Systems Project, 6.25%, 11/15/29
   Aa2/AA-     4,490,880  
  1,000    
Uptown Dev. Auth., Tax Allocation, Infrastructure Improvement Facs., 5.50%, 9/1/29
   NR/BBB+     1,014,860  
       
 
          
       
 
         44,107,885  
       
 
          
       
 
            
       
U. S. Virgin Islands—0.1%
            
  500    
Virgin Islands Public Finance Auth. Rev., 5.00%, 10/1/39, Ser. A-1
   Baa2/BBB     478,535  
       
 
          
       
 
            
       
Utah—1.4%
            
  7,000    
Salt Lake Cnty. Rev., IHC Health Services, 5.125%, 2/15/33 (AMBAC)
   WR/AA+     7,190,890  
       
 
          
       
 
            
       
Virginia—0.6%
            
  1,000    
Fairfax Cnty. Industrial Dev. Auth. Rev., Inova Health Systems, 5.50%, 5/15/35, Ser. A
   Aa2/AA+     1,083,880  
  2,000    
Peninsula Town Center Community Dev. Auth. Rev., 6.45%, 9/1/37
   NR/NR     1,967,200  
       
 
          
       
 
         3,051,080  
       
 
          
       
 
            
       
Washington—1.1%
            
       
Health Care Facs. Auth. Rev.,
            
  700    
Multicare Health Systems, 6.00%, 8/15/39, Ser. B (AGC)
   Aa3/AAA     752,990  
  250    
Seattle Cancer Care Alliance, 7.375%, 3/1/38
   A3/NR     281,690  
  2,000    
Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A
   Baa2/BBB     2,054,440  
       
State Housing Finance Commission Rev., Skyline at First Hill Project, Ser. A
            
  275    
5.25%, 1/1/17
   NR/NR     239,253  
  3,600    
5.625%, 1/1/38
   NR/NR     2,282,616  
       
 
          
       
 
         5,610,989  
       
 
          
       
Wisconsin—2.7%
            
       
Health & Educational Facs. Auth. Rev.,
            
  2,230    
Kenosha Hospital & Medical Center Project, 5.625%, 5/15/29
   NR/A     2,230,557  
  500    
Prohealth Care, Inc., 6.625%, 2/15/39
   A1/A+     547,495  
  10,000    
State Rev., 6.00%, 5/1/36, Ser. A
   Aa3/AA-     11,027,800  
       
 
          
       
 
         13,805,852  
       
 
          
       
Total Municipal Bonds & Notes (cost—$470,909,496)
         488,782,886  
       
 
          
       
 
            
VARIABLE RATE NOTES (a)(d)(f)(g)—3.1%
       
Illinois—1.2%
            
  5,950    
Cook Cnty., GO, 7.62%, 11/15/28, Ser. 458 (FGIC)
   Aa3/NR     5,972,312  
       
 
          

 

 

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
       
Texas—0.4%
            
$ 1,000    
JPMorgan Chase Putters/Drivers Trust, GO, 7.824%, 2/1/17, Ser. 3480
   NR/AA+   $ 1,119,990  
       
JPMorgan Chase Putters/Drivers Trust Rev.,
            
  200    
8.26%, 2/1/27, Ser. 3224
   Aa1/NR     241,272  
  600    
8.344%, 10/1/31, Ser. 3227
   NR/AAA     726,324  
       
 
          
       
 
         2,087,586  
       
 
          
       
 
            
       
Washington—1.5%
            
  6,670    
JPMorgan Chase Putters/Drivers Trust, GO, 11.318%, 8/1/28, Ser. 3388
   NR/AA+     7,919,091  
       
 
          
       
Total Variable Rate Notes (cost—$14,151,152)
         15,978,989  
       
 
          
       
 
            
SHORT-TERM INVESTMENT (h)—1.9%
Corporate Notes—1.9%
       
Financial Services—1.9%
            
  10,000    
American General Finance Corp., 4.625%, 9/1/10 (cost—$9,758,887)
   B2/B     9,975,000  
       
 
          
       
 
            
       
Total Investments (cost—$494,819,535)—100.0%
       $ 514,736,875  
       
 
          

 

 

Notes to Schedule of Investments:
     
*   Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services.
 
    Portfolio securities and other financial instruments for which market quotations are not readily available, or for which development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to procedures established by the Board of Trustees, or persons acting at their discretion pursuant to procedures 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 mean between the last quoted bid and ask 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. Short-term securities 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 and these differences could be material. 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 $16,921,320 representing 3.3% of total investments.
 
(b)   Illiquid.
 
(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—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)   In default.
 
(f)   Inverse Floater—The interest rate shown bears an inverse relationship to the interest rate of another security or the value of an index. The interest rate disclosed reflects the rate in effect on July 31, 2010.
 
(g)   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 July 31, 2010.
 
(h)   All or partial amount segregated for the benefit of the counterparty as collateral for reverse repurchase agreement.
 
(i)   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 Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
 
(j)   Restricted. The aggregate acquisition cost of such securities is $935,300 and the aggregate market value is $942,331, representing 0.2% of total investments.
Glossary:
ACA—insured by American Capital Access Holding Ltd.
AGC—insured by Assured Guaranty Corp.
AGM—insured by Assured Guaranty Municipal Corp.
AMBAC—insured by American Municipal Bond Assurance Corp.
CP—Certificates of Participation
FGIC—insured by Financial Guaranty Insurance Co.
FHA—insured by Federal Housing Administration
GO—General Obligation Bond
GTD—Guaranteed
NPFGC—insured by National Public Finance Guarantee Corp.
NR—Not Rated
PSF—Public School Fund
WR—Withdrawn Rating

 

 

Other Investments:
(A) Open reverse repurchase agreements at July 31, 2010:
                                 
Counterparty   Rate     Trade Date   Maturity Date   Principal & Interest     Principal  
 
Bank of America
     0.70 %   7/9/10   8/10/10   $ 9,127,830     $ 9,123,750  
 
                              
The weighted average daily balance of reverse repurchase agreements outstanding during the three months ended July 31, 2010 was $9,042,065 at a weighted average interest rate of 0.68%. The total market value of underlying collateral (refer to the Schedule of Investments for positions segregated for the benefit of the counterparty as collateral for reverse repurchase agreements) for open reverse repurchase agreements was $9,975,000.
At July 31, 2010 the Fund held $2,486 in principal value of U.S. Government Agency securities as collateral for open reverse repurchase agreements. Collateral held as securities will not be pledged.

 

 

Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:
  •   Level 1 — quoted prices in active markets for identical investments that the Fund has the ability to access
 
  •   Level 2 — valuations based on other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) or quotes from inactive exchanges
 
  •   Level 3 — valuations based on significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation technique used.
The valuation techniques used by the Fund to measure fair value during the three months ended July 31, 2010 maximized the use of observable inputs and minimized the use of unobservable inputs.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The Fund’s policy is to recognize transfers between levels at the end of the reporting period.
A summary of the inputs used at July 31, 2010 in valuing the Fund’s assets and liabilities is listed below:
                                 
            Level 2 -   Level 3 -    
            Other Significant   Significant    
    Level 1 -   Observable   Unobservable   Value at
    Quoted Prices   Inputs   Inputs   7/31/10
 
Investments in Securities — Assets
                                
Municipal Bonds & Notes
     —     $ 488,782,886       —     $ 488,782,886  
Variable Rate Notes
     —       15,978,989       —       15,978,989  
Short-Term Investment
     —       9,975,000       —       9,975,000  
 
Total Investments
     —     $ 514,736,875       —     $ 514,736,875  
 
There were no transfers into and out of Levels 1 and 2 during the three months ended July 31, 2010.
A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the period ended July 31, 2010, was as follows:
                                                                 
                                    Net Change                    
    Beginning   Net   Accrued           in Unrealized                   Ending
    Balance   Purchases(Sales)   Discounts   Net Realized   Appreciation/   Transfers into   Transfers out   Balance
    4/30/10   and Settlements   (Premiums)   Gain(Loss)   Depreciation   Level 3   of Level 3*   7/31/10
 
Investments in Securities — Assets
                                                        
Municipal Bonds & Notes
   $ 470,000       —       —       —       —       —     $ (470,000 )     —  
 
Total Investments
   $ 470,000       —       —       —       —       —     $ (470,000 )     —  
 
     
*   Transferred out of Level 3 into Level 2 because sufficient observable inputs were available.
There was no change in net unrealized appreciation/depreciation of Level 3 investments which the Fund held at July 31, 2010.

 

 

Item 2. Controls and Procedures
(a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a -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 CFR 270.30a -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: September 17, 2010
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: September 17, 2010
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 dates indicated.
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: September 17, 2010
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: September 17, 2010