N-Q
     
  OMB APPROVAL  
 
OMB Number: 3235-0578
 
 
Expires: April 30, 2010
  
 
Estimated average burden
hours per response: 10.5
  
 
 
 
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, 2009
 
    
Date of Reporting Period:
  January 31, 2009
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 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, 2009 (unaudited)
 
                     
Principal                
Amount         Credit Rating      
(000)         (Moody’s/S&P)   Value*  
 
MUNICIPAL BONDS & NOTES—89.3%            
       
Alabama—2.7%
            
$ 2,500    
Birmingham Baptist Medical Centers Special Care Facs. Financing Auth. Rev.,
5.875%, 11/15/24, Ser. A
   Baa1/NR   $ 1,829,475  
  8,000    
Huntsville Health Care Auth. Rev.,
           
       
5.75%, 6/1/31, Ser. A, (Pre-refunded @ $101, 6/1/11) (c)
   A2/NR     8,835,520  
       
Huntsville-Redstone Village Special Care Facs. Financing Auth. Rev.,
            
  250    
5.50%, 1/1/28
   NR/NR     165,000  
  885    
5.50%, 1/1/43
   NR/NR     522,672  
  1,350    
Montgomery Medical Clinic Board Jackson Hospital & Clinic, Rev., 5.25%, 3/1/31
   Baa2/BBB-     928,017  
       
 
          
       
 
         12,280,684  
       
 
          
       
 
            
       
Alaska—1.9%
            
  3,280    
Boro of Matanuska-Susitna Rev.,
           
       
Goose Creek Correctional Center, 6.00%, 9/1/32
   Aa2/NR     3,431,438  
  900    
Industrial Dev. & Export Auth. Boys & Girls Home Rev.,
            
       
6.00%, 12/1/36
   NR/NR     529,290  
       
Northern Tobacco Securitization Corp. Rev.,
            
  2,400    
5.00%, 6/1/46, Ser. A
   Baa3/NR     1,257,288  
  3,000    
5.50%, 6/1/29, (Pre-refunded @ $100, 6/1/11) (c)
   Aaa/AAA     3,281,790  
       
 
          
       
 
         8,499,806  
       
 
          
       
 
            
       
Arizona—3.8%
            
  5,000    
Apache Cnty. Industrial Dev. Auth. Pollution Control Rev.,
           
       
Tucson Electric Power Co., 5.875%, 3/1/33
   Baa3/BBB-     3,842,100  
       
Health Facs. Auth. Rev.,
            
  600    
Banner Health, 5.50%, 1/1/38, Ser. D
   NR/AA-     563,676  
  2,750    
Beatitudes Campus, 5.20%, 10/1/37
   NR/NR     1,616,257  
  4,150    
Pima Cnty. Industrial Dev. Auth. Rev.,
           
       
Tucson Electric Power, 6.375%, 9/1/29, Ser. A
   Baa3/BBB-     3,478,198  
  5,000    
Salt River Project Agricultural Improvement & Power District Rev.,
5.00%, 1/1/39, Ser. A (l)
   Aa1/AA     4,856,250  
  4,200    
Salt Verde Financial Corp. Rev., 5.00%, 12/1/37
   A2/AA-     2,687,874  
       
 
          
       
 
         17,044,355  
       
 
          
       
Arkansas—0.4%
            
  8,500    
Arkansas Dev. Finance Auth. Rev., zero coupon, 7/1/36, (AMBAC)
   Aa3/NR     1,797,325  
       
 
          
       
 
            
       
California—6.5%
            
       
Golden State Tobacco Securitization Corp. Rev., Ser. A-1
            
  6,000    
5.00%, 6/1/33
   Baa3/BBB     3,693,360  
  10,000    
6.75%, 6/1/39, (Pre-refunded @ $100, 6/1/13) (c)
   NR/AAA     11,921,700  
  300    
State, GO, 5.00%, 6/1/37
   A1/A+     266,742  
       
Statewide Community Dev. Auth. Rev.,
            
  1,000    
Catholic Healthcare West, 5.50%, 7/1/31, Ser. E
   A2/A     892,770  
       
Methodist Hospital (FHA)(e),
            
  2,600    
6.625%, 8/1/29
   Aa2/AA     2,666,144  
  9,500    
6.75%, 2/1/38
   Aa2/AA     9,736,645  
       
 
          
       
 
         29,177,361  
       
 
          
       
 
            
       
Colorado—3.3%
            
  500    
Confluence Metropolitan Dist. Rev., 5.45%, 12/1/34
   NR/NR     290,730  
  1,000    
Denver Health & Hospital Auth. Healthcare Rev., 6.00%, 12/1/23, Ser. A,
           
       
(Pre-refunded @ $100, 12/1/11) (c)
   NR/NR     1,120,150  

 

 

PIMCO Municipal Income Fund Schedule of Investments
January 31, 2009 (unaudited)
 
                     
Principal                
Amount         Credit Rating      
(000)         (Moody’s/S&P)   Value*  
 
       
Colorado (continued)
            
$ 12,400    
Health Facs. Auth. Rev., Liberty Heights, zero coupon, 7/15/24
   Aaa/AAA   $ 5,995,524  
  4,940    
Northwest Parkway Public Highway Auth. Rev.,
7.125%, 6/15/41, Ser. D, (Pre-refunded @ $102, 6/15/11) (c)
   NR/NR     5,354,515  
  500    
Public Auth. for Colorado Energy Rev., 6.50%, 11/15/38
   A2/A+     412,955  
  1,500    
Univ. of Colorado Rev., 5.375%, 6/1/38, Ser. A
   Aa3/AA-     1,521,855  
       
 
          
       
 
         14,695,729  
       
 
          
       
 
            
       
Connecticut—0.2%
            
  1,000    
State Dev. Auth. Pollution Control Rev., 5.85%, 9/1/28
   Baa1/BBB     913,070  
       
 
          
       
 
            
       
District of Columbia—1.4%
            
  2,500    
Dist. of Columbia Rev., Brookings Institution, 5.75%, 10/1/39 (e)
   NR/NR     2,481,950  
  4,600    
Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24
   Baa3/BBB     3,855,306  
       
 
          
       
 
         6,337,256  
       
 
          
       
 
            
       
Florida—2.8%
            
  905    
Beacon Lakes Community Dev. Dist., Special Assessment,
6.00%, 5/1/38, Ser. A
   NR/NR     532,276  
  3,900    
Board of Education, GO, 5.00%, 6/1/38, Ser. D (e)(l)
   Aa1/AAA     3,743,376  
  1,750    
Highlands Cnty. Health Facs. Auth. Rev., Adventist/Sunbelt Health System,
6.00%, 11/15/31, Ser. A, (Pre-refunded @ $101, 11/15/11) (c)
   NR/NR     1,973,755  
  500    
Lee Cnty. Industrial Dev. Auth. Rev., 5.375%, 6/15/37, Ser. A
   NR/BB     278,335  
  5,685    
State Board of Governors Rev., Florida Univ., 6.50%, 7/1/33
   Aa2/AA     5,965,157  
       
 
          
       
 
         12,492,899  
       
 
          
       
 
            
       
Georgia—0.3%
            
  2,300    
Medical Center Hospital Auth. Rev., 5.25%, 7/1/37
   NR/NR     1,353,228  
       
 
          
       
 
            
       
Hawaii—1.6%
            
  6,935    
City & Cnty. of Honolulu Sewer Rev., 5.00%, 7/1/23, (MBIA-FGIC)
   A1/AA     6,974,946  
       
 
          
       
 
            
       
Illinois—8.0%
            
       
Chicago, GO,
            
  5,000    
5.00%, 1/1/34, Ser. C (l)
   Aa3/AA-     4,767,050  
  2,935    
5.375%, 1/1/34, Ser. A (FGIC)
   Aa3/AA-     2,865,969  
  10,115    
Chicago Board of Education School Reform, GO,
zero coupon, 12/1/31, Ser. A (MBIA-FGIC)
   A1/AA     2,282,146  
       
Educational Facs. Auth. Rev., Univ. of Chicago,
            
  190    
5.25%, 7/1/41
   Aa1/AA     189,111  
  80    
5.25%, 7/1/41, (Pre-refunded @ $101, 7/1/11) (c)
   Aa1/AA     88,587  
       
Finance Auth. Rev.,
            
       
Adventist Health System, (Pre-refunded @ $101, 11/15/09)(c),
            
  5,000    
5.50%, 11/15/29
   NR/NR     5,243,450  
  1,260    
5.65%, 11/15/24
   NR/NR     1,322,824  
  10,000    
Univ. of Chicago, 5.50%, 7/1/37, Ser. B (l)
   Aa1/AA     10,094,500  
  5,345    
Regional Transportation Auth. Rev.,
5.50%, 6/1/23, Ser. B (MBIA-FGIC)
   Aa2/AA+     5,880,729  
  1,900    
Springfield Power Rev., 5.00%, 3/1/36
   Aa3/AA-     1,676,921  
  1,495    
Univ. Rev., 5.25%, 4/1/32, (FGIC)
   Aa3/AA-     1,495,493  
       
 
          
       
 
         35,906,780  
       
 
          
       
 
            
       
Iowa—1.6%
            
  4,890    
Finance Auth. Rev.,
Deerfield Retirement Community, Inc., 5.50%, 11/15/37
   NR/NR     2,712,434  

 

 

PIMCO Municipal Income Fund Schedule of Investments
January 31, 2009 (unaudited)
 
                     
Principal                
Amount         Credit Rating      
(000)         (Moody’s/S&P)   Value*  
 
       
Iowa (continued)
            
       
Edgewater LLC,
            
$ 3,500    
6.75%, 11/15/37
   NR/NR   $ 2,496,970  
  1,500    
6.75%, 11/15/42
   NR/NR     1,053,450  
  2,000    
Wedum Walnut Ridge LLC,
5.625%, 12/1/45, Ser. A
   NR/NR     1,124,500  
       
 
          
       
 
         7,387,354  
       
 
          
       
 
            
       
Kansas—4.5%
            
  1,000    
Lenexa, City Center East, Tax Allocation, 6.00%, 4/1/27
   NR/NR     697,750  
  650    
Manhattan Rev., Meadowlark Hills Retirement, 5.125%, 5/15/42, Ser. B
   NR/NR     370,630  
       
Wichita Hospital Rev.,
            
  5,000    
5.625%, 11/15/31, Ser. III
   NR/A+     4,560,500  
  14,370    
6.25%, 11/15/24, Ser. XI
   NR/A+     14,547,038  
       
 
          
       
 
         20,175,918  
       
 
          
       
 
            
       
Kentucky—0.2%
            
  810    
Economic Dev. Finance Auth. Rev.,
St. Luke’s Hospital, 6.00%, 10/1/19, Ser. B
   A3/A     809,960  
       
 
          
       
 
            
       
Louisiana—4.8%
            
  4,300    
Local Gov’t Environmental Facs. & Community Dev. Auth. Rev.,
6.55%, 9/1/25 (ACA)
   NR/NR     3,473,540  
  27,895    
Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. B
   Baa3/BBB     17,967,169  
       
 
          
       
 
         21,440,709  
       
 
          
       
 
            
       
Massachusetts—0.4%
            
  550    
Dev. Finance Agcy. Rev., Linden Ponds, 5.75%, 11/15/35, Ser. A
   NR/NR     304,029  
  1,500    
State College Building Auth. Rev., 5.50%, 5/1/39, Ser. A
   A1/A+     1,456,845  
       
 
          
       
 
         1,760,874  
       
 
          
       
 
            
       
Michigan—2.3%
            
  1,000    
Detroit, GO, 5.375%, 4/1/17, Ser. A-1 (MBIA)
   Baa1/AA     1,004,710  
  4,550    
Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A
   NR/NR     2,482,298  
       
Royal Oak Hospital Finance Auth. Rev.,
           
  50    
William Beaumont Hospital, 5.25%, 11/15/35, Ser. M (MBIA)
   A1/AA     37,416  
  1,500    
8.25%, 9/1/39
   A1/A     1,523,040  
  4,000    
State Hospital Finance Auth. Rev.,
Detroit Medical Center, 6.25%, 8/15/13
   Ba3/BB-     3,726,680  
  2,000    
Strategic Fund Ltd. Obligation Rev., Detroit Edison Pollution Control Co., 5.45%, 9/1/29
   A3/A-     1,703,140  
       
 
          
       
 
         10,477,284  
       
 
          
       
 
            
       
Minnesota—0.1%
            
  95    
Agricultural & Economic Dev. Board Rev., Health Care System,
6.375%, 11/15/29
   A2/A     94,179  
  500    
Washington Cnty. Housing & Redev. Auth. Rev.,
Birchwood & Woodbury, 5.625%, 6/1/37, Ser. A
   NR/NR     322,585  
       
 
          
       
 
         416,764  
       
 
          
       
 
            
       
Missouri—0.1%
            
  1,000    
Joplin Industrial Dev. Auth. Rev., Christian Homes, Inc., 5.75%, 5/15/26, Ser. F
   NR/NR     673,730  
       
 
          
       
 
            
       
Nevada—3.5%
            
  5,000    
Clark Cnty., GO, 4.75%, 6/1/30, (FSA)
   Aa1/AAA     4,188,200  
  12,185    
Washoe Cnty., GO, 5.00%, 1/1/35, (MBIA)
   Aa2/NR     11,623,028  
       
 
          
       
 
         15,811,228  
       
 
          

 

 

PIMCO Municipal Income Fund Schedule of Investments
January 31, 2009 (unaudited)
 
                     
Principal                
Amount         Credit Rating      
(000)         (Moody’s/S&P)   Value*  
 
       
New Hampshire—0.7%
            
$ 3,000    
Business Finance Auth. Pollution Control Rev.,
Conn. Light & Power Co., 5.85%, 12/1/22
   Baa1/BBB-   $ 2,930,310  
       
 
          
       
 
            
       
New Jersey—4.6%
            
  2,000    
Economic Dev. Auth. Rev., 5.50%, 12/15/34, Ser. Z
   Aa2/AAA     2,005,900  
  16,550    
Kapkowski Road Landfill, Special Assessment, 5.75%, 4/1/31
   Baa3/NR     12,822,940  
  1,000    
Health Care Facs. Financing Auth. Rev., Trinitas Hospital,
5.25%, 7/1/30, Ser. A
   Baa3/BBB-     689,340  
  9,100    
Tobacco Settlement Financing Corp. Rev., 5.00%, 6/1/41, Ser. 1A
   Baa3/BBB     4,877,873  
       
 
          
       
 
         20,396,053  
       
 
          
       
 
            
       
New Mexico—0.5%
            
  2,500    
Farmington Pollution Control Rev., 5.80%, 4/1/22
   Baa3/BB+     2,057,100  
       
 
          
       
 
            
       
New York—5.5%
            
       
Liberty Dev. Corp. Rev., Goldman Sachs Headquarters,
            
  5,000    
5.25%, 10/1/35
   A1/A     4,019,250  
  3,000    
5.50%, 10/1/37
   A1/AA-     2,460,540  
  4,200    
Nassau Cnty. Industrial Dev. Agcy. Rev.,
Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A
   NR/NR     3,082,464  
       
New York City Municipal Water Finance Auth. Rev. (l),
            
  13,000    
5.00%, 6/15/26, Ser. 3245
   Aa2/AAA     13,068,250  
  670    
5.00%, 6/15/37, Ser. 3240
   Aa2/AAA     644,044  
  1,625    
Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A
   Baa3/BBB-     1,319,484  
       
 
          
       
 
         24,594,032  
       
 
          
       
 
            
       
North Carolina—0.3%
            
  570    
Capital Facs. Finance Agcy. Rev., Duke Univ., 5.125%, 10/1/41, Ser. A
   Aa1/AA+     570,593  
  1,500    
Medical Care Commission Rev., Village at Brookwood,
5.25%, 1/1/32
   NR/NR     862,695  
       
 
          
       
 
         1,433,288  
       
 
          
       
 
            
       
Ohio—2.6%
            
  11,000    
Buckeye Tobacco Settlement Financing Auth. Rev.,
5.875%, 6/1/47, Ser. A-2
   Baa3/BBB     6,309,600  
       
Lorain Cnty. Hospital Rev., Catholic Healthcare,
            
  2,500    
5.625%, 10/1/17
   A1/AA-     2,584,150  
  2,565    
5.75%, 10/1/18
   A1/AA-     2,663,188  
       
 
          
       
 
         11,556,938  
       
 
          
       
 
            
       
Pennsylvania—4.4%
            
  1,000    
Allegheny Cnty. Industrial Dev. Auth. Rev., 5.60%, 9/1/30
   Baa1/BBB+     681,510  
  2,000    
Harrisburg Auth. Rev., 6.00%, 9/1/36
   NR/NR     1,513,080  
  6,200    
Higher Educational Facs. Auth. Rev., 6.00%, 1/15/31, Ser. A
   Aa3/AA-     6,162,366  
       
Lancaster Cnty. Hospital Auth. Rev., Brethren Village, Ser. A,
            
  750    
6.25%, 7/1/26
   NR/NR     592,868  
  85    
6.375%, 7/1/30
   NR/NR     65,341  
  4,700    
Philadelphia Hospitals & Higher Education Facs. Auth. Rev.,
Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A
   Baa3/BBB     3,989,830  
  7,000    
Philadelphia, GO, 5.25%, 12/15/32, Ser. A (FSA)
   Aa3/AAA     6,732,530  
       
 
          
       
 
         19,737,525  
       
 
          

 

 

PIMCO Municipal Income Fund Schedule of Investments
January 31, 2009 (unaudited)
 
                     
Principal                
Amount         Credit Rating      
(000)         (Moody’s/S&P)   Value*  
 
       
Puerto Rico—0.5%
            
$ 135    
Commonwealth of Puerto Rico, GO, 5.00%, 7/1/35
   Baa3/BBB-   $ 104,823  
       
Sales Tax Financing Corp. Rev., Ser. A,
      
  32,550    
zero coupon, 8/1/54 (AMBAC)
   A1/A+     1,204,350  
  29,200    
zero coupon, 8/1/56
   A1/A+     852,932  
       
 
          
       
 
         2,162,105  
       
 
          
       
Rhode Island—3.6%
            
  23,800    
Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A
   Baa3/BBB     15,918,392  
       
 
          
       
 
            
       
South Carolina—1.3%
            
       
Greenwood Cnty. Hospital Rev., Self Memorial Hospital,
            
  3,500    
5.50%, 10/1/21
   A2/A     3,474,520  
  2,000    
5.50%, 10/1/26
   A2/A     1,868,060  
  450    
Jobs Economic Dev. Auth. Rev., Lutheran Homes, 5.50%, 5/1/28
   NR/NR     295,398  
       
 
          
       
 
         5,637,978  
       
 
          
       
Tennessee—2.4%
            
  940    
Memphis Health Educational & Housing Fac. Rev.,
            
       
Wesley Housing Corp., 6.95%, 1/1/20 (a)(b)(f)
   NR/NR     470,000  
       
State Energy Acquisition Corp. Rev.,
            
  370    
5.00%, 2/1/21, Ser. C
   Baa1/AA-     274,629  
  6,460    
5.25%, 9/1/17, Ser. A
   A1/A     5,427,498  
  600    
5.25%, 9/1/21, Ser. A
   Baa1/A     464,544  
  300    
5.25%, 9/1/22, Ser. A
   Baa1/A     228,804  
  5,000    
5.25%, 9/1/24, Ser. A
   A1/A     3,710,250  
       
 
          
       
 
         10,575,725  
       
 
          
       
Texas—7.2%
            
  10,000    
Coppell Independent School Dist., GO, zero coupon, 8/15/29 (PSF-GTD)
   Aaa/AAA     3,302,400  
  20    
Duncanville Independent School Dist., GO,
            
       
5.25%, 2/15/32, Ser. B (PSF-GTD)
   Aaa/AAA     20,178  
  285    
Mansfield Independent School Dist., GO, 5.25%, 2/15/23 (PSF-GTD)
   Aaa/AAA     292,718  
       
Municipal Gas Acquisition & Supply Corp. I Rev.,
            
  150    
5.25%, 12/15/25, Ser. A
   Aa3/A+     111,997  
  6,500    
6.25%, 12/15/26, Ser. D
   A2/A     5,363,345  
       
North Harris Cnty. Regional Water Auth. Rev.,
            
  4,200    
5.25%, 12/15/33
   A3/A+     3,851,064  
  4,200    
5.50%, 12/15/38
   A3/A+     3,926,076  
       
North Texas Tollway Auth. Rev.,
            
  6,050    
5.625%, 1/1/33, Ser. A
   A2/A-     5,668,850  
  600    
5.75%, 1/1/33, Ser. F
   A3/BBB+     532,572  
  6,500    
State Municipal Gas Acquisition & Supply Corp. I Rev.,
            
       
5.25%, 12/15/23, Ser. A
   A2/A     4,997,915  
  400    
State Public Finance Auth. Rev., 5.875%, 12/1/36, Ser. A
   Baa3/BBB-     271,860  
  4,000    
Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev.,
            
       
Baylor Health Care Systems, 6.25%, 11/15/29 (e)
   Aa2/AA-     4,066,840  
       
 
          
       
 
         32,405,815  
       
 
          
       
Utah—1.6%
            
  7,000    
Salt Lake Cnty. Hospital Rev.,
            
       
IHC Health Services, 5.125%, 2/15/33 (AMBAC)
   Baa1/AA+     7,178,360  
       
 
          

 

 

PIMCO Municipal Income Fund Schedule of Investments
January 31, 2009 (unaudited)
 
                     
Principal                
Amount         Credit Rating      
(000)         (Moody’s/S&P)   Value*  
 
       
Virginia—0.3%
            
$ 2,000    
Peninsula Town Center Community Dev. Auth. Rev., 6.45%, 9/1/37
   NR/NR   $ 1,319,000  
       
 
          
       
 
            
       
Washington—0.9%
            
       
Health Care Facs. Auth. Rev.,
            
  250    
Seattle Cancer Care Alliance, 7.375%, 3/1/38 (e)
   A3/NR     248,422  
  2,000    
Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A
   Baa2/BBB     1,461,720  
       
State Housing Finance Commission Rev., Skyline at First Hill, Ser. A,
            
  275    
5.25%, 1/1/17
   NR/NR     210,873  
  3,600    
5.625%, 1/1/38
   NR/NR     2,078,028  
       
 
          
       
 
         3,999,043  
       
 
          
       
Wisconsin—2.5%
            
  9,785    
Badger Tobacco Asset Securitization Corp. Rev., 6.00%, 6/1/17
   Baa3/BBB     9,299,762  
  2,230    
Health & Educational Facs. Auth. Rev.,
            
       
Kenosha Hospital & Medical Center, 5.625%, 5/15/29
   NR/A     1,962,333  
       
 
          
       
 
         11,262,095  
       
 
          
       
Total Municipal Bonds & Notes (cost—$446,057,282)
         399,591,019  
       
 
          
       
 
            
CORPORATE BONDS & NOTES (k)—2.3%            
  10,000    
American General Finance Corp., 4.625%, 9/1/10
   Baa1/BBB     5,940,300  
  4,500    
CIT Group, Inc., 5.80%, 7/28/11
   Baa2/BBB+     3,759,471  
  600    
International Lease Finance Corp., 2.373%, 5/24/10, FRN
   Baa1/BBB+     497,537  
       
 
          
       
Total Corporate Bonds & Notes (cost—$9,998,915)
         10,197,308  
       
 
          
       
 
            
VARIABLE RATE NOTES (a)(d)(g)(h)—1.6%            
       
Illinois—1.6%
            
  7,252    
Cook Cnty., GO, 8.27%, 11/15/28, Ser. 458 (FGIC)
(cost—$6,906,226)
   Aa2/NR     7,244,522  
       
 
          
       
 
            
SHORT-TERM INVESTMENTS—6.8%            
Variable Rate Demand Notes (h)(i)—3.9%            
       
South Carolina—0.8%
            
  3,500    
Educational Facs. Auth. Rev., Furman Univ., 0.67%, 2/2/09, Ser. B
   VMIG1/NR     3,500,000  
       
 
          
       
 
            
       
Utah—3.1%
            
  13,960    
Intermountain Power Agcy. Rev., 0.80%, 2/2/09, Ser. F
   VMIG1/NR     13,960,000  
       
 
          
       
Total Variable Rate Demand Notes (cost—$17,460,000)
         17,460,000  
       
 
          
       
 
            
Corporate Bonds & Notes (k)—1.8%            
       
American General Finance Corp.,
            
  1,600    
1.785%, 10/2/09
   Baa1/BBB     1,262,547  
  1,100    
4.625%, 5/15/09
   Baa1/BBB     1,004,615  
  4,400    
CIT Group, Inc., 4.125%, 11/3/09
   Baa1/BBB+     4,138,539  
       
International Lease Finance Corp.,
            
  500    
1.494%, 1/15/10, FRN
   Baa1/BBB+     441,719  
  1,500    
4.75%, 7/1/09
   Baa1/BBB+     1,444,714  
       
 
          
       
Total Corporate Bonds & Notes (cost—$8,083,557)
         8,292,134  
       
 
          
       
 
            
U.S. Treasury Bills (j)—1.1%            
  4,720    
0.01%-0.98%, 2/19/09-6/11/09 (cost—$4,719,227)
         4,719,227  
       
 
          
       
Total Short-Term Investments (cost—$30,262,784)
         30,471,361  
       
 
          
       
 
            
       
Total Investments (cost-$493,225,207)—100.0%
       $ 447,504,210  
       
 
          

 

 

 
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, based on quotes obtained from a quotation reporting system, established market makers, or pricing services.
 
    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 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 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. Prices obtained from 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. Exchange traded options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily until settlement at the forward settlement date. 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 daily 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 $7,714,522, representing 1.72% of total investments.
 
(b)   Illiquid security.
 
(c)   Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate).
 
(d)   144A Security—Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.
 
(e)   When issued or delayed-delivery security. To be delivered after January 31, 2009.
 
(f)   Security in default.
 
(g)   Inverse Floater—The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on January 31, 2009.
 
(h)   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, 2009.
 
(i)   Maturity date shown is date of next put.
 
(j)   All or partial amount segregated as collateral for swaps.
 
(k)   All or partial amount segregated as collateral for reverse repurchase agreements.
 
(l)   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.
Glossary:
ACA—insured by American Capital Access Holding Ltd.
AMBAC—insured by American Municipal Bond Assurance Corp.
FGIC—insured by Financial Guaranty Insurance Co.
FHA—insured by Federal Housing Administration
FRN—Floating Rate Note. The interest rate disclosed reflects the rate in effect on January 31, 2009.
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

 

 

Other Investments:
(1)   Transactions in options written for the nine months ended January 31, 2009:
                 
       
    Contracts   Premiums
 
Options outstanding, April 30, 2008
     276     $ 225,464  
Options expired
     (276 )     (225,464 )
     
Options outstanding, January 31, 2009
     —     $ —  
     
(2)   Interest rate swap agreements outstanding at January 31, 2009:
                                                         
                    Rate Type           Upfront   Unrealized
    Notional Amount   Termination   Payments Made   Payments Received   Market   Premiums   Appreciation
Swap Counterparty   (000)   Date   by Fund   by Fund   Value   Received   (Depreciation)
 
Royal Bank of Scotland
   $ 16,400       12/17/23       5.00 %   3-Month USD-LIBOR   $ (3,233,875 )   $ (1,016,800 )   $ (2,278,515 )
Royal Bank of Scotland
     11,300       6/17/24       4.00 %   3-Month USD-LIBOR     (775,772 )     (1,366,735 )     590,963  
                                     
 
                                   $ (4,009,647 )   $ (2,383,535 )   $ (1,687,552 )
                                     
LIBOR — London Inter-bank Offered Rate
(3)   Open reverse repurchase agreements at January 31, 2009:
                                         
Counterparty   Rate     Trade Date     Maturity Date     Principal & Interest     Par  
 
Barclays Bank
     0.90 %     1/23/09       2/26/09     $ 12,951,029     $ 12,941,000  
 
     0.90 %     1/28/09       3/2/09       2,250,799       2,249,000  
Credit Suisse First Boston
     1.125 %     1/6/09       2/6/09       747,701       747,000  
 
                                      
 
                                   $ 15,937,000  
 
                                      
Collateral for open reverse repurchase agreements at January 31, 2009, as reflected in the Schedule of Investments:
                                 
                            Market  
Counterparty   Description   Rate     Maturity Date   Par     Value  
 
Barclays Bank
   American General Finance Corp.     1.785 %   10/2/09   $ 1,600,000     $ 1,262,547  
 
   American General Finance Corp.     4.625 %   5/15/09     1,100,000       1,004,615  
 
   American General Finance Corp.     4.625 %   9/1/10     10,000,000       5,940,300  
 
   CIT Group, Inc.     4.125 %   11/3/09     4,400,000       4,138,539  
 
   CIT Group, Inc.     5.80 %   7/28/11     4,500,000       3,759,471  
 
   International Lease Finance Corp.     4.75 %   7/1/09     1,500,000       1,444,714  
Credit Suisse First Boston
   International Lease Finance Corp.     1.494 %   1/15/10     500,000       441,719  
 
   International Lease Finance Corp.     2.373 %   5/24/10     600,000       497,537  
 
                              
 
                           $ 18,489,442  
 
                              
The Fund received $168,278 in U.S. government agency securities as collateral for reverse repurchase agreements.

 

 

Fair Value Measurements—Effective May 1, 2008, the Fund adopted FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of the fair value measurements. Under this standard, 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 under SFAS 157 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).
The valuation techniques used by the Fund to measure fair value during the nine months ended January 31, 2009 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 following is a summary of the inputs used at January 31, 2009 in valuing the Fund’s investments carried at value:
                 
            Other  
    Investments in     Financial  
Valuation Inputs   Securities     Instruments  
 
Level 1 — Quoted Prices
   $ —     $ —  
Level 2 — Other Significant Observable Inputs
     447,504,210       (1,687,552 )
Level 3 — Significant Unobservable Inputs
     —       —  
 
            
Total
   $ 447,504,210     $ (1,687,552 )
 
            

 

 

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: March 26, 2009
         
By
  /s/ Lawrence G. Altadonna
 
Treasurer, Principal Financial & Accounting Officer 		   
Date: March 26, 2009
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: March 26, 2009
         
By
  /s/ Lawrence G. Altadonna
 
Treasurer, Principal Financial & Accounting Officer 		   
Date: March 26, 2009