April 30, 2002
Annual Report
[NYSE LOGO] CLOSED-END NYSE-TRADED MUNICIPAL BOND FUNDS
PIMCO Municipal Income Fund (PMF)
PIMCO California Municipal Income Fund (PCQ)
PIMCO New York Municipal Income Fund (PNF)
TABLE OF CONTENTS
President's Letter ............................................................3
Fund Summaries ..............................................................4-9
Schedules of Investments ..................................................10-17
SCHEDULE OF
FUND FUND SUMMARY INVESTMENTS
PIMCO Municipal Income Fund ........................4 ........................10
PIMCO California Municipal Income Fund .............6 ........................13
PIMCO New York Municipal Income Fund ...............8 ........................16
Statements of Assets and Liabilities .........................................18
Statements of Operations .....................................................19
Statements of Changes in Net Assets Applicable to Common Shareholders ........20
Notes to Financial Statements .............................................21-23
Financial Highlights .........................................................24
Report of Independent Accountants ............................................25
Tax Information ..............................................................26
Dividend Reinvestment Plan ...................................................27
Board of Trustees .........................................................28-29
This report, including the financial information herein, is transmitted to the
shareholders of PIMCO Municipal Income Fund, PIMCO California Municipal Income
Fund and PIMCO New York Municipal Income Fund for their information. It is not a
prospectus, circular or representation intended for use in the purchase of
shares of any of the Funds or any securities mentioned in this report.
In accordance with Section 23(c) of the Investment Company Act of 1940, each
Fund hereby gives notice that it may from time to time repurchase its shares in
the open market at the option of the Board of Trustees and on such terms as the
Trustees shall determine.
[Picture]
Dear Shareholder:
PIMCO Funds is pleased to provide you with the initial annual report for PIMCO
Municipal Income Fund, PIMCO California Municipal Income Fund and PIMCO New York
Municipal Income Fund (the "Municipal Income Funds"), for the period June 29,
2001 (commencement of operations) through April 30, 2002.
The Funds' first--albeit abbreviated--fiscal year was marked by ongoing
volatility in both the stock and the bond markets. Given this environment, I am
pleased to report that each of the Funds posted positive results during the
period. In fact, the Municipal Income and California Municipal Income funds
increased their per share common dividends in January. Each of the Funds
continue to deliver a steady stream of tax-exempt income: all were yielding well
over 6% (annualized, based on each Fund's market price) at April 30, 2002.
Please note that the Municipal Income Funds' utilize leverage--which entails
additional risks, including enhanced interest rate risk--added to these results.
During adverse market conditions, leverage can also exacerbate negative
performance. That is why it continues to be important to maintain a
well-diversified portfolio of investments. Your financial advisor can work with
you to develop an asset allocation strategy that is right for you.
I encourage you to review the fund information and commentaries on the following
pages carefully. If you have any questions, please contact your financial
advisor, or call our shareholder services area at 1-877-819-2224. You can also
access a wide range of information and resources through our Web
site--www.pimcofunds.com.
Thank you again for the trust you have placed in PIMCO Funds.
Sincerely,
/s/ Stephen Treadway
Stephen Treadway
Chairman
May 31, 2002
The opinions expressed in this letter are those of the author and no forecasts
can be guaranteed.
4/30/02 | PIMCO Municipal Income Funds Annual Report 3
A NYSE-TRADED MUNICIPAL BOND FUND
PIMCO MUNICIPAL INCOME FUND
SYMBOL:
PMF
INVESTMENT OBJECTIVE:
PIMCO Municipal Income Fund seeks to provide income exempt from federal income
tax.
MAIN INVESTMENTS:
Municipal fixed-income securities the interest from which is exempt from federal
income taxes.
FUND INCEPTION DATE:
June 29, 2001
NET ASSETS:
$538.7 million (as of 4/30/02)
PORTFOLIO MANAGER:
Mark McCray
[Picture]
Mark McCray
Fund Manager
Mr. McCray is responsible for municipal bond portfolios at PIMCO. Previously
Co-Head of Municipal Bond Trading at Goldman Sachs & Co., he has over 11
years of investment experience.
"With the current economic and political uncertainty, municipal bonds offer
attractive yields with a high quality credit profile."
Mark McCray
The Lehman General Municipal Bond Index is an unmanaged index representative of
the tax-exempt bond market. The index is made up of all investment grade
municipal bonds issued after 12/31/90 having a remaining maturity of at least
one-year. It is not possible to invest directly in the index.
The opinions expressed above are those of the Fund's portfolio manager and are
current only through April 30, 2002. They should not be considered investment
advice. The portfolio manager's views are subject to change at any time based on
market and other conditions, and no forecasts are guaranteed.
PIMCO Municipal Income Fund began trading on the New York Stock Exchange on June
27, 2001. Since the Fund's inception through April 30, 2002, the Fund's shares
at NAV returned 4.36%, compared to 4.99% for the Lehman General Municipal Bond
Index over the same time period. (For share price information, see opposite
page.)
BONDS PERFORM WELL AMID RECESSION, MILITARY UNCERTAINTY.
Bonds were among the top-performing investments in a volatile and disappointing
year for the financial markets. However, municipal bonds underperformed taxable
debt as investors sought Treasuries in reaction to a sharp economic slowdown
driven by deteriorating corporate profits, surging unemployment and decreased
business investment. The attacks of September 11th exacerbated these trends and
caused confidence to decline. Ongoing tensions in the Middle East have also
driven investors towards the safety and quality of Treasury debt. To stave off a
recession, the Federal Reserve mounted an aggressive easing campaign, lowering
the nominal Federal Funds rate to its lowest level in 40 years. Late in the
period, signs of a recovery emerged, increasing expectations for renewed Fed
tightening. As a result, interest rates rose, causing bonds to give back some of
their gains.
REVENUE BONDS, HIGH QUALITY FOCUS, FUEL RETURNS.
The Fund's emphasis on high quality bonds was positive for performance as credit
premiums in the national municipal debt market widened amidst volatility in the
financial markets. Revenue bonds also performed well, boosted by improved credit
profiles and a pickup in investor demand. The Fund's use of preferred shares
increased portfolio yield as the national municipal yield curve steepened in
response to the Fed's easing campaign. However, the Fund's exposure to
transportation bonds detracted from performance as this sector experienced
difficulty in the wake of the terrorist attacks.
MUNICIPAL BONDS OFFER COMPELLING VALUE, ATTRACTIVE YIELDS.
We believe that the global downturn has ended, and that a modest recovery will
ensue led by the U.S. Growth in the U.S. will come from the restocking of
inventories after one of the steepest and fastest liquidations on record.
However, we expect growth to slow in the second half of 2002 as gains from
inventory rebuilding work through the economy. We also feel that the Fed will
take back some of its post-September 11 emergency easing later this year. In
this environment we intend to emphasize high quality, as fiscal conditions
remain strained for many municipal issuers. We expect to continue to emphasize
revenue bonds, which offer attractive risk-adjusted yields.
4 PIMCO Funds Municipal Income Funds Annual Report | 4.30.02
PIMCO MUNICIPAL INCOME FUND PERFORMANCE & STATISTICS
All information as of April 30, 2002
CUMULATIVE TOTAL RETURN On Common Share Price On NAV
Since Commencement of Operations (6/29/01) 3.05% 4.36%
CREDIT QUALITY
(S&P Ratings)* (as a % of investments)
AAA 44%
AA 18%
A 28%
BBB 4%
BB 5%
B 1%
Weighted Average Quality AA
PORTFOLIO STATISTICS*
Market Price $14.70
Net Asset Value $14.22
Market Yield(1) 6.63%
Taxable Equivalent Yield(2) 10.80%
(Federal Income Tax Rate)
Fund Net Assets (millions) $538.7
Average Effective Maturity (years) 21.26
Average Duration(3) 12.18
PORTFOLIO
COMPOSITION* (as a % of investments)
Healthcare Revenue 28%
Local General Obligations 14%
Other Revenue 13%
Transportation Revenue 12%
Housing Revenue 6%
TOP FIVE STATES (as a % of investments)
Texas 16.6%
Illinois 13.3%
Pennsylvania 8.5%
Louisiana 8.3%
Michigan 8.0%
COMMON SHARE PRICE PERFORMANCE
o Municipal Income Fund at Market Price
o Municipal Income Fund at NAV
[Line Chart]
MONTHLY DIVIDENDS PER
COMMON SHARE FOR LAST
SIX MONTHS
[Bar Chart]
INVESTMENT PROCESS
The top-down investment process begins with our annual secular forum at which
PIMCO develops a 3-5 year outlook for the global economy and interest rates.
This helps set the basic portfolio parameters, including duration, yield-curve
positioning, sector weightings and credit quality. Our municipal bond team seeks
to add value in a number of ways. They believe that investments should be made
from the point of view of maximizing after-tax total return as opposed to simply
reaching for maximum yield. So the portfolio is scrutinized using a process that
models the potential changes in yield and price as the underlying variables of
the marketplace change. Yield-to-worst measures are carefully examined, as are
the impact of a shifting municipal yield curve and the influence of yield
volatility and credit shifts on the portfolio.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
(1) Market yield is the annualized dividend yield on the market price for the
last day of the period.
(2) Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Fund on an after-tax basis. It is
calculated using the current market yield and a federal tax rate of 38.6%.
(3) Duration is a measure of a portfolio's NAV volatility in reaction to
interest rate movements.
* The Fund's portfolio is actively managed, and its current and future credit
quality breakdown, portfolio statistics and portfolio composition are
likely to vary from those listed above as of the date of this report.
4/30/02 | PIMCO Municipal Income Funds Annual Report 5
A NYSE-TRADED MUNICIPAL BOND FUND
PIMCO CALIFORNIA MUNICIPAL INCOME FUND
SYMBOL:
PCQ
INVESTMENT OBJECTIVE:
PIMCO California Municipal Income Fund seeks to provide current income exempt
from federal and California State income tax.
MAIN INVESTMENTS:
Municipal fixed-income securities the interest from which is exempt from federal
and California State income taxes.
FUND INCEPTION DATE:
June 29, 2001
NET ASSETS:
$396.7 million (as of 4/30/02)
PORTFOLIO MANAGER:
Mark McCray
[Picture]
Mark McCray
Fund Manager
Mr. McCray is responsible for municipal bond portfolios at PIMCO. Previously
Co-Head of Municipal Bond Trading at Goldman Sachs & Co., he has over 11
years of investment experience.
"Given the uncertainty about the direction of the economy, California municipal
bonds offer attractive yields relative to taxable debt."
Mark McCray
The Lehman Insured California Municipal Debt Index is an unmanaged index
comprised of insured California Municipal Bond Issues. It is not possible to
invest directly in the index.
The opinions expressed above are those of the Fund's portfolio manager and are
current only through April 30, 2002. They should not be considered investment
advice. The portfolio manager's views are subject to change at any time based on
market and other conditions, and no forecasts are guaranteed.
PIMCO California Municipal Income Fund began trading on the New York Stock
Exchange on June 27, 2001. Since the Fund's inception through April 30, 2002,
the Fund's shares at NAV returned 2.43%, compared to 5.47% for the Lehman
Insured California Municipal Debt Index over the same time period. (For share
price information, see opposite page.)
RECESSION, FED EASING, DRIVE BOND RETURNS
Bonds performed well over the course of the past year as the U.S. entered a
recession in March of 2001. The Federal Reserve provided a powerful tailwind,
lowering the nominal Federal Funds rate to its lowest level in 40 years in an
effort to revive the economy. A slowdown in business spending and mounting
unemployment led the downturn, while the terrorist attacks heightened these
trends, and also caused confidence among businesses and consumers to decline.
For most of the Fund's fiscal year, California yields fell, however signs of a
recovery towards the end of the period heightened expectations for Fed
tightening and caused interest rates to rise. California underperformed the
national market due to weaker fiscal conditions and expectations of increased
supply.
HIGH QUALITY FOCUS ANCHORED PORTFOLIO AMID VOLATILITY
Aggressive Fed easing, the September 11th attacks, and the announcement by the
Treasury that it would cease issuing 30-year bonds all contributed to a volatile
financial market environment over the past year. The Fund's high quality focus
allowed it to withstand the effects of these events, as lower-tier credit
premiums widened. Extended duration and exposure to long-term issues also helped
returns as, for most of the period, California municipal yields fell. The
steepness of the California municipal yield curve allowed the Fund to generate
additional yield by utilizing leverage in the form of preferred shares.
MODEST RECOVERY WITH MUTED GROWTH, BENIGN INFLATION, LIKELY.
We believe the global slowdown has ended and anticipate a moderate recovery in
the U.S., driven by inventory restocking. However, we expect the pace of growth
to slow as inventory gains work their way through the economy. As growth
resumes, we expect the Fed to take back some of the emergency easing that took
place post-September 11. While long-term California municipal issues offer fair
value, we expect yields to be volatile in the short term due to new issuance and
weaker state fiscal conditions. We intend to maintain high average credit
quality, as existing premiums are inadequate for the associated credit and
liquidity risks. We also expect to enhance portfolio yield through higher
quality California revenue bonds.
6 PIMCO Funds Municipal Income Funds Annual Report | 4.30.02
PIMCO CALIFORNIA MUNICIPAL INCOME FUND PERFORMANCE & STATISTICS
All information as of April 30, 2002
CUMULATIVE TOTAL RETURN On Common Share Price On NAV
Since Commencement of Operations (6/29/01) 2.82% 2.43%
CREDIT QUALITY
(S&P Ratings)* (as a % of investments)
AAA 48%
AA 6%
A 16%
BBB 14%
BB 16%
Weighted Average Quality AA-
PORTFOLIO STATISTICS*
Market Price $14.71
Net Asset Value $14.00
Market Yield(1) 6.28%
Taxable Equivalent Yield(2) 11.28%
(Combined Federal & State Income Tax Rate)
Net Assets (millions) $396.7
Average Effective Maturity (years) 23.05
Average Duration(3) 12.81
PORTFOLIO
COMPOSITION* (as a % of investments)
Other Revenue 24%
Healthcare Revenue 20%
Local General Obligations 17%
Water & Sewer Revenue 14%
State General Obligations 11%
COMMON SHARE PRICE PERFORMANCE
o California Municipal Income Fund at Market Price
o California Municipal Income Fund at NAV
[Line Chart]
MONTHLY DIVIDENDS PER
COMMON SHARE FOR LAST
SIX MONTHS
[Bar Chart]
INVESTMENT PROCESS
The top-down investment process begins with our annual secular forum at which
PIMCO develops a 3-5 year outlook for the global economy and interest rates.
This helps set the basic portfolio parameters, including duration, yield-curve
positioning, sector weightings and credit quality. Our municipal bond team seeks
to add value in a number of ways. They believe that investments should be made
from the point of view of maximizing after-tax total return as opposed to simply
reaching for maximum yield. So the portfolio is scrutinized using a process that
models the potential changes in yield and price as the underlying variables of
the marketplace change. Yield-to-worst measures are carefully examined, as are
the impact of a shifting municipal yield curve and the influence of yield
volatility and credit shifts on the portfolio.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
(1) Market yield is the annualized dividend yield on the market price for the
last day of the period.
(2) Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Fund on an after-tax basis. It is
calculated using the current market yield and a combined federal and state
tax rate of 44.31%.
(3) Duration is a measure of a portfolio's NAV volatility in reaction to
interest rate movements.
* The Fund's portfolio is actively managed, and its current and future credit
quality breakdown, portfolio statistics and portfolio composition are
likely to vary from those listed above as of the date of this report.
4/30/02 | PIMCO Municipal Income Funds Annual Report 7
A NYSE-TRADED MUNICIPAL BOND FUND
PIMCO NEW YORK MUNICIPAL INCOME FUND
SYMBOL:
PNF
OBJECTIVE:
PIMCO New York Municipal Income Fund seeks to provide current income exempt from
federal, New York State and New York City income tax.
MAIN INVESTMENT:
Municipal fixed-income securities the interest from which is exempt from
federal, New York State and New York City income taxes.
FUND INCEPTION DATE:
June 29, 2001
NET ASSETS:
$163.4 million (as of 4/30/02)
PORTFOLIO MANAGER:
Mark McCray
[Picture]
Mark McCray
Fund Manager
Mr. McCray is responsible for municipal bond portfolios at PIMCO. Previously
Co-Head of Municipal Bond Trading at Goldman Sachs & Co., he has over 11
years of investment experience.
"As efforts continue to rebuild New York, municipal bonds offer compelling
value."
Mark McCray
The Lehman Insured NY Municipal Debt Index is an unmanaged index comprised of
insured New York Municipal Bond issues. It is not possible to invest directly in
the index.
The opinions expressed above are those of the Fund's portfolio manager and are
current only through April 30, 2002. They should not be considered investment
advice. The portfolio manager's views are subject to change at any time based on
market and other conditions, and no forecasts are guaranteed.
PIMCO New York Municipal Income Fund began trading on the New York Stock
Exchange on June 27, 2001. Since the Fund's inception through April 30, 2002,
the Fund's shares at NAV returned 2.26%, compared to 5.31% for the Lehman
Insured New York Municipal Debt Index during the same time period.
FIXED-INCOME INVESTMENTS PERFORM WELL IN A VOLATILE YEAR FOR FINANCIAL MARKETS.
Bonds were among the top-performing investments in an otherwise turbulent
and volatile year for the financial markets. The U.S. economy entered a
recession in 2001, driven by a significant contraction in business investment.
Corporate profitability also deteriorated, causing unemployment to climb, with
the terrorist attacks heightening these trends. In an effort to lift the economy
from its slump, the Federal Reserve lowered the nominal Federal Funds rate to
its lowest level in 40 years. Late in the period, however, signs of an economic
recovery emerged, causing increased expectations for Fed tightening. As a
result, bonds gave back some of their gains. For the period, the New York
municipal market slightly underperformed the national market.
REVENUE BONDS, EXTENDED DURATION, HIGH QUALITY FOCUS, DRIVE RETURNS
The Fund's exposure to high quality revenue bonds added to returns as these
bonds generated strong cash flow over the past year. An emphasis on high quality
also helped returns due to widening credit premiums as New York faced
uncertainty after the attacks of September 11th. Extended duration was also
positive as New York municipal yields fell for most of the period. The Fund's
use of leverage through preferred shares enhanced portfolio yield as the New
York municipal yield curve steepened in response to aggressive Fed easing.
ECONOMY APPEARS POISED TO RECOVER, BUT STILL FACES HEADWINDS
We believe the global downturn has ended, with the U.S. expected to lead a
global recovery. After one of the steepest and fastest inventory liquidations on
record, inventory restocking should boost manufacturing demand worldwide, but
will be the sole source of accelerated growth. As the recovery ensues, we
anticipate the Fed will take back some of the emergency easing provided after
September 11. Intermediate New York municipal issues offer fair value, however
premiums could rise modestly as state and local governments look to close budget
deficits. We intend to maintain a high portfolio credit quality should yields
rise amidst investor demand for credit and liquidity premiums. We also intend to
focus on higher quality revenue bonds, which currently offer relatively
attractive yields with limited credit risk.
8 PIMCO Funds Municipal Income Funds Annual Report | 4.30.02
PIMCO NEW YORK MUNICIPAL INCOME FUND PERFORMANCE & STATISTICS
All information as of April 30, 2002
CUMULATIVE TOTAL RETURN On Common Share Price On NAV
Since Commencement of Operations (6/29/01) (0.34)% 2.26%
CREDIT QUALITY
(S&P Ratings)* (as a % of investments)
AAA 46%
AA 22%
A 24%
BBB 7%
BB 1%
Weighted Average Quality AA
PORTFOLIO STATISTICS*
Market Price $14.20
Net Asset Value $13.92
Market Yield(1) 6.34%
Taxable Equivalent Yield(2) 11.09%
(Combined Federal & State Income Tax Rate)
Net Assets (millions) $163.4
Average Effective Maturity (years) 23.15
Average Duration(3) 12.57
PORTFOLIO
COMPOSITION* (as a % of investments)
Higher Education Revenue 43%
Water & Sewer Revenue 15%
Other Revenue 11%
Transportation Revenue 9%
Miscellaneous 8%
COMMON SHARE PRICE PERFORMANCE
o New York Municipal Income Fund at Market Price
o New York Municipal Income Fund at NAV
[Line Chart]
MONTHLY DIVIDENDS PER
COMMON SHARE FOR THE LAST
SIX MONTHS
[Bar Chart]
INVESTMENT PROCESS
The top-down investment process begins with our annual secular forum at which
PIMCO develops a 3-5 year outlook for the global economy and interest rates.
This helps set the basic portfolio parameters, including duration, yield-curve
positioning, sector weightings and credit quality. Our municipal bond team seeks
to add value in a number of ways. They believe that investments should be made
from the point of view of maximizing after-tax total return as opposed to simply
reaching for maximum yield. So the portfolio is scrutinized using a process that
models the potential changes in yield and price as the underlying variables of
the marketplace change. Yield-to-worst measures are carefully examined, as are
the impact of a shifting municipal yield curve and the influence of yield
volatility and credit shifts on the portfolio.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
(1) Market yield is the annualized dividend yield on the market price for the
last day of the period.
(2) Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Fund on an after-tax basis. It is
calculated using the current market yield and a combined federal, state and
city tax rate of 42.81%.
(3) Duration is a measure of a portfolio's NAV volatility in reaction to
interest rate movements.
* The Fund's portfolio is actively managed, and its current and future credit
quality breakdown, portfolio statistics and portfolio composition are
likely to vary from those listed above as of the date of this report.
4/30/02 | PIMCO Municipal Income Funds Annual Report 9
SCHEDULE OF INVESTMENTS
PIMCO MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
-----------------------------------------------------------------------------------
MUNICIPAL BONDS & NOTES -- 88.4%
-----------------------------------------------------------------------------------
ALABAMA -- 1.9%
$ 2,500 Birmingham Baptist Med. Ctr.,
Baptist Health Syst., Ser. A,
5.875%, 11/15/24 A3/NR $ 2,476,825
8,000 Huntsville Health Care Auth.,
Ser. A, 5.75%, 6/1/31 A2/NR 7,855,520
------------
10,332,345
------------
ALASKA -- 1.0%
6,000 Northern Tobacco Securitization
Corp., 5.50%, 6/1/29 Aa3/A+ 5,600,520
------------
ARIZONA -- 0.3%
2,000 Apache Cnty. Pollution Control
Rev., Tucson Elec. Power Co.,
5.875%, 3/1/33 Ba3/B+ 1,861,780
------------
COLORADO -- 2.4%
3,000 Denver Health & Hosp. Auth.
Healthcare Rev., Ser. A,
5.375%-6.00%, 12/1/23-
12/1/28 Baa2/BBB+ 2,806,250
Northwest Pkwy. Pub. Hwy. Auth.,
5,000 5.25%, 6/15/41, Ser. A (FSA) Aaa/AAA 4,942,350
4,965 7.125%, 6/15/41, Ser. D Ba1/BB+ 5,081,131
------------
12,829,731
------------
CONNECTICUT -- 0.2%
1,000 State Dev. Auth. Pollution Control
Rev., Conn. Light & Power,
5.85%, 9/1/28 A3/BBB 1,015,520
------------
DISTRICT OF COLUMBIA -- 1.2%
6,555 Tobacco Settlement Fin. Corp.,
6.25%, 5/15/24 A1/A 6,766,792
------------
FLORIDA -- 1.7%
9,000 Highlands Cnty. Health Fac. Auth.
Rev., Adventist Health Syst.,
Ser. A, 6.00%, 11/15/31 Baa1/A- 9,089,280
------------
GEORGIA -- 2.0%
10,000 Muni. Elec. Auth. Power Rev.,
Ser. Z, 5.50%, 1/1/20 (MBIA) Aaa/AAA 10,666,300
------------
ILLINOIS -- 10.7%
Chicago GO, Ser. A,
5,645 5.00%, 1/1/41 (MBIA) Aaa/AAA 5,279,712
9,080 5.375%, 1/1/34 (FGIC) Aaa/AAA 9,031,422
2,000 Chicago Water Rev.,
5.25%, 11/1/27 (FGIC) Aaa/AAA 1,983,340
6,260 Dev. Fin. Auth. Hosp. Rev.,
Adventist Health Syst., 5.50%
5.65%, 11/15/24 - 11/15/29 Baa1/A- 5,765,063
1,115 Educational Fac. Auth. Rev.,
Midwestern Univ., Ser. B,
5.50%, 5/15/18 NR/BBB+ 1,079,231
3,000 Health Fac. Auth. Rev., Decatur
Memorial Hosp., 5.75%,
10/1/24 A2/A 2,970,000
500 Health Fac. Auth. Rev., Midwest
Physician Group Ltd., 5.50%,
11/15/19 NR/BBB- 414,350
5,425 Health Fac. Auth. Rev., Silver
Cross Hosp., 5.50%, 8/15/25 NR/A- 5,080,078
1,215 Northern Univ. Rev., Auxilary Fac.
Syst., 5.00%, 4/1/16 (FGIC) Aaa/NR 1,229,762
7,345 Regional Transportation Auth.,
Ser. B, 5.50%, 6/1/23 (FGIC) Aaa/AAA 7,624,771
State GO,
2,400 5.125%, 5/1/19 (FSA) Aaa/AAA 2,414,592
2,500 5.375%, 8/1/14 (MBIA) Aaa/AAA 2,659,875
3,000 State Sales Tax Rev.,
5.125%, 6/15/20 Aa2/AAA 2,984,070
5,000 Univ. Rev., Auxiliary Fac. Syst.,
Ser. B, 5.25%, 4/1/32 (FGIC) Aaa/AAA 4,925,550
4,000 Winnebago Boone ETC Cntys.,
Rock Valley Community College,
5.30%, 10/1/18 (FGIC) Aaa/NR 4,092,400
------------
57,534,216
------------
INDIANA -- 0.5%
2,725 Richland Beanblossom School Bldg.
Corp., 5.00%, 1/15/22 (FGIC) Aaa/AAA 2,658,101
------------
KANSAS -- 3.7%
Wichita Hosp. Rev.,
5,000 5.625%, 11/15/31, Ser. III NR/A+ 4,996,300
14,370 6.25%, 11/15/24, Ser. XI NR/A+ 15,077,291
------------
20,073,591
------------
LOUISIANA -- 8.1%
10,000 Local Gov't Environmental Fac.,
Community Dev. Auth. Rev.,
6.55%, 9/1/25 NR/A 10,856,900
7,595 State GO, Ser. A,
5.00%, 4/1/19 (FGIC) Aaa/AAA 7,606,393
27,890 Tobacco Settlement Fin. Corp.
Rev., 5.875%, 5/15/39 A1/A 25,172,677
------------
43,635,970
------------
MASSACHUSETTS -- 1.2%
7,000 State Turnpike Auth., Met.
Hwy. Syst. Rev., Ser. A,
4.75%, 1/1/34 (AMBAC) Aaa/AAA 6,303,080
------------
MICHIGAN -- 7.9%
2,000 Detroit GO, Ser. A-1, 5.375%,
4/1/15-4/1/17 (MBIA) Aaa/AAA 2,106,400
5,650 Forest Hills Pub. School GO,
5.25%, 5/1/18 Aa2/NR 5,787,012
3,000 Mount Clemens Community
School Dist., 5.00%, 5/1/31 Aaa/AAA 2,867,430
2,000 Muni. Board Auth. Rev.,
Clean Water Revolving Fund,
5.25%, 10/1/19 Aaa/AAA 2,040,080
10 PIMCO Municipal Income Funds Annual Report | 4.30.02 |
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
SCHEDULE OF INVESTMENTS (CONT.)
PIMCO MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
-----------------------------------------------------------------------------------
MICHIGAN (CONTINUED)
$14,300 Royal Oak Hosp. Fin. Auth.,
William Beaumont Hosp., Ser. M,
5.25%, 11/15/31-11/15/35 (MBIA) Aaa/AAA $ 14,001,249
4,000 State Health Fac. Auth. Rev.,
Detroit Med. Ctr., 6.25%,
8/15/13 Baa3/BBB- 3,816,000
3,000 State Strategic Oblig. Rev.,
Detroit Edison Co., 5.45%,
9/1/29 A3/A- 2,924,850
3,000 Taylor Tax lncrement Fin. Auth.,
5.375%, 5/1/17 (FSA) Aaa/AAA 3,127,020
6,270 Wayne Charter Cnty. Airport Fac.
Rev., Northwest Airlines, Inc.,
6.75%, 12/1/15 NR/NR 5,837,934
------------
42,507,975
------------
MINNESOTA -- 1.2%
3,395 Anoka-Hennepin Indpt., School
Dist. No. 11 GO, 5.00%, 2/1/17 Aa1/AA+ 3,433,092
3,000 Agricultural & Econ. Dev. Board
Rev., Health Care Syst., Ser. A,
6.375%, 11/15/29 A2/A 3,129,360
------------
6,562,452
------------
MISSOURI -- 1.8%
2,500 Interstate 470 & 350 Trans. Dev.,
Motranson Rev., 6.35%, 5/1/22 NR/NR 2,499,975
7,410 State Health & Educational Fac.
Rev., Washington Univ., Ser. A,
5.125%, 6/15/41 Aa1/AA+ 7,160,950
------------
9,660,925
------------
NEVADA -- 1.5%
3,000 Clark Cnty. Airport Rev., Ser. B,
5.25%, 7/1/34 (FGIC) Aaa/AAA 2,967,600
4,250 Truckee Meadows Water Auth.
Rev., Ser. A, 5.25%, 7/1/34
(FSA) Aaa/AAA 4,191,223
825 Washoe Cnty. Improvement Dist.
No. 23, 6.50%, 11/1/17 NR/NR 845,270
------------
8,004,093
------------
NEW HAMPSHIRE -- 0.6%
3,000 State Bus. Fin. Auth. Pollution
Control Rev., Conn. Light &
Power Co., 5.85%, 12/1/22, A3/BBB 3,025,410
------------
NEW JERSEY -- 0.8%
2,105 Camden Cnty. Improvement Auth.
Rev., Cooper Health Syst.,
5.60%-6.00%, 2/15/07-2/15/27 B1/NR 1,680,215
3,000 Economic Dev. Auth. Rev., Arbor
Glen, Ser. A, 5.875%, 5/15/16 NR/NR 2,560,320
------------
4,240,535
------------
NEW MEXICO -- 0.5%
2,500 Farmington Pollution Control Rev.,
Public Service Co., 5.80%,
4/1/22 Baa3/BBB- 2,462,150
250 State Hosp. Equip., Presbyterian
Healthcare, Ser. A, 5.50%, 8/1/30 A1/A 242,997
------------
2,705,147
------------
NEW YORK -- 0.5%
2,875 Westchester Cnty. Health Care
Corp. Rev., Ser. A, 5.875%,
11/1/25 A3/A 2,970,996
------------
OHIO -- 1.2%
5,065 Lorain Cnty. Hosp. Rev., Catholic
Healthcare Partners,
5.625%-5.75%, 10/1/17-
10/1/18 A1/AA- 5,200,710
1,235 State Turnpike Rev.,
5.50%, 2/15/15 Aa3/AA 1,319,079
------------
6,519,789
------------
OKLAHOMA -- 0.6%
3,250 Oklahoma City Airport Trust,
Ser. A, 5.00%, 7/1/18 (FSA) Aaa/AAA 3,217,825
------------
PENNSYLVANIA -- 8.4%
3,280 Allegheny Cnty. Hosp. Dev. Auth.
Rev., Ser. B, 9.25%, 11/15/30 B1/B+ 3,533,872
1,000 Allegheny Cnty. Indl. Dev. Auth.
Rev., USX Corp., 5.60%, 9/1/30 Baa1/BBB+ 930,340
1,095 Allegheny Cnty. Port Auth. Rev.,
5.25%, 3/1/20 (FGIC) Aaa/AAA 1,112,575
2,575 Delaware Cnty. Auth. College
Rev., Neumann College, 5.80%,
10/1/17 NR/BBB- 2,541,319
1,000 Philadelphia Auth. Indl. Rev.,
Franklin Institute,
5.20%, 6/15/26 Baa2/NR 920,110
4,610 Philadelphia Hosp. & Higher
Education Fac. Hosp. Rev.,
Temple Univ. Hosp., Ser. A,
6.625%, 11/15/23 Baa2/BBB 4,626,365
6,905 Ridley School Dist.,
5.00%, 11/15/29 (FGIC) Aaa/AAA 6,625,900
6,200 State Higher Educational Fac.
Auth. Rev., UPMC Health Syst.,
Ser. A, 6.00%, 1/15/31 NR/A+ 6,212,896
8,225 State Turnpike, Oil Franchise Tax
Rev., Ser. A, 4.75%, 12/1/27
(AMBAC) Aaa/AAA 7,584,273
11,600 State Turnpike, 5.00%, 7/15/41
(AMBAC) Aaa/AAA 11,008,632
------------
45,096,282
------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
| 4.30.02 | PIMCO Municipal Income Funds Annual Report 11
SCHEDULE OF INVESTMENTS (CONT.)
PIMCO MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
-----------------------------------------------------------------------------------
SOUTH CAROLINA -- 4.5%
$ 5,500 Greenwood Cnty. Hosp. Rev., Self
Memorial Hosp., 5.50%,
10/1/21-10/1/26 A2/A+ $ 5,343,890
3,000 Jobs Economic Dev. Auth., Hosp.
Facs. Rev., Georgetown
Memorial Hosp.,
5.375%, 2/1/30 NR/AA 2,897,040
15,600 Tobacco Settlement Rev., Ser. B,
6.375%, 5/15/30 A1/A 15,752,568
------------
23,993,498
------------
TENNESSEE -- 5.1%
4,000 Knox Health Educational &
Housing Fac. Rev., Baptist
Health Syst., 6.375%, 4/15/22 Baa2/NR 3,984,200
10,000 Memphis GO, 5.25%, 4/1/19 Aa2/AA 10,194,000
9,320 Memphis Health Educational
& Housing Fac., Wesley
Housing Corp., 6.95%, 1/1/20++ NR/NR 9,385,054
3,510 Shelby Cnty., Ser. B,
4.50%, 11/1/04 Aa3/AA+ 3,677,883
------------
27,241,137
------------
TEXAS -- 13.7%
5,000 Austin Convention Enterprises
Inc., Ser. B, 5.75%, 1/1/32 Aa3/AA 5,071,050
4,000 Austin Water & Wastewater
Syst. Rev., Ser. A & B,
5.25%, 5/15/31 (FSA) Aaa/AAA 3,935,480
2,935 Bell Cnty. Health Fac. Dev. Corp.,
Buckner Retirement Fac.,
5.25%, 11/15/19 NR/A-- 2,687,345
5,000 Carrollton Farmers Indpt. School
Dist. GO, 4.625%, 2/15/19 Aaa/AAA 4,707,050
2,865 Corpus Christi Refin. &
Improvement GO, 5.375%,
3/1/18 (FSA) Aaa/AAA 2,953,099
3,680 Duncanville Indpt. School Dist.,
Ser. B, 5.25%, 2/15/32 Aaa/AAA 3,630,578
5,000 Harris Cnty. Health Fac. Dev.
Corp., Christus Health, Ser. A,
5.375%, 7/1/29 (MBIA) Aaa/AAA 4,925,850
7,000 Harris Cnty. Health Fac. Dev.
Corp., Memorial Hermann
Healthcare, 6.375%, 6/1/29 A3/A-- 7,260,260
2,000 Mansfield Indpt. School Dist. GO,
5.25%, 2/15/23 Aaa/AAA 1,997,320
3,150 San Antonio Elec. & Gas, Ser. A,
5.25%, 2/1/16 Aa1/AA 3,238,484
4,380 Southlake Parks Dev. Corp., Sales
Tax Rev., 5.60%, 8/15/31
(AMBAC) Aaa/AAA 4,467,863
State Water Financial Assistance,
4,530 5.30%, 8/1/18, Ser. A Aa1/AA 4,623,590
16,800 5.25%, 8/1/23 Aa1/AA 16,755,984
7,450 Water Dev. Board Rev.,
5.125%, 7/15/18 Aaa/AAA 7,503,491
------------
73,757,444
------------
UTAH -- 1.2%
7,000 Salt Lake Cnty. Hosp. Rev., IHC
Health Services Inc., 5.125%,
2/15/33 (AMBAC) Aaa/AAA 6,732,390
------------
WASHINGTON -- 2.8%
3,120 Cowlitz Cnty. School Dist. GO,
5.625%, 12/1/14-12/1/16 (FSA) Aaa/NR 3,369,191
5,000 Kent GO, 5.375%, 12/1/20 (MBIA) Aaa/AAA 5,114,350
6,420 King Cnty. School Dist. GO,
Ser. A, 5.25%, 12/1/21
(MBIA) Aaa/AAA 6,477,459
------------
14,961,000
------------
WISCONSIN -- 1.2%
1,070 Hortonville School Dist. GO,
5.25%, 4/1/18 (AMBAC) Aaa/NR 1,085,675
3,515 State GO, 5.00%, 5/1/22 (FGIC) Aaa/AAA 3,415,455
2,230 State Health & Educational Fac.
Auth. Rev., Kenosha Hosp. &
Med. Ctr., 5.625%, 5/15/29 NR/A 2,135,983
------------
6,637,113
------------
Total Municipal Bonds & Notes
(cost - $480,247,743) 476,201,237
------------
12 PIMCO Municipal Income Funds Annual Report | 4.30.02 |
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
SCHEDULE OF INVESTMENTS (CONT.)
PIMCO MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
-----------------------------------------------------------------------------------
SHORT-TERM VARIABLE RATE DEMAND NOTES*** -- 9.7%
-----------------------------------------------------------------------------------
HAWAII -- 0.6%
$ 3,468 Honolulu City & Cnty.
Wastewater Syst. Rev.,
Ser. 400, 7.94%, 5/2/02 (FGIC)++ Aaa/NR $ 3,342,670
------------
ILLINOIS -- 2.4%
7,253 Cook Cnty. GO, Ser. 458,
8.01%, 5/2/02 (FGIC) Aaa/NR 6,596,294
6,900 Educational Fac. Auth. Rev.,
RITES, 8.29%, 7/1/38++ NR/AA 6,298,527
------------
12,894,821
------------
MASSACHUSETTS -- 1.0%
5,000 State Health & Educational Fac.
Auth. Rev., RITES, 9.64%,
7/1/32++ NR/NR 5,137,400
------------
NEVADA -- 1.2%
7,500 Clark Cnty. Passenger Fac.
Change Rev., Ser. 343, 7.44%,
5/2/02 (MBIA)++ Aaa/NR 6,449,400
------------
NEW YORK -- 1.1%
6,500 City Muni. Water Auth. Rev.,
RITES, 8.18%, 6/15/26++ NR/AA 6,161,610
------------
TEXAS -- 2.6%
8,988 Harris Cnty. Health Fac. Dev.
Corp., Ser. 357, 8.74%, 5/2/02
(MBIA)++ Aaa/NR 8,742,501
4,250 Harris Cnty Health Fac. Dev.
Corp., RITES, 8.78%, 2/15/26++ NR/AA 4,098,147
1,000 Houston Water & Sewer Syst.
Rev., Ser. 495, 8.51%, 5/2/02
(FGIC)++ NR/AAA 967,920
------------
13,808,568
------------
WASHINGTON -- 0.8%
4,500 Seattle GO, Ser. 348,
8.19%, 5/2/02++ Aa1/NR 4,251,150
------------
Total Short-Term Variable Rate Demand Notes
(cost - $51,232,832) 52,045,619
------------
TOTAL INVESTMENTS -- 98.1%
(cost - $531,480,575+) $528,246,856
OTHER ASSETS LESS LIABILITIES -- 1.9% 10,456,094
------------
NET ASSETS -- 100.0% $538,702,950
------------
-----------------
+ The cost basis of portfolio securities for federal income tax purposes is
$531,480,575. Aggregate gross unrealized appreciation for securities in
which there is an excess of value over tax cost is $4,108,471, aggregate
gross unrealized depreciation for securities in which there is an excess
of tax cost over value is $7,342,190 and net unrealized depreciation for
federal income tax purposes is $3,233,719.
PIMCO CALIFORNIAL MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
-----------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL BONDS & NOTES -- 86.6%
-----------------------------------------------------------------------------------
$ 1,000 ABAG Fin. Auth. for Nonprofit
Corps., CP, 5.375%, 2/15/19 NR/BBB+ $ 893,330
1,000 ABAG Fin. Auth. for Nonprofit
Corps., Ser. A, Rev.,
5.375%, 11/15/25 NR/A+ 995,350
2,745 ABC Univ. School Dist., GO,
zero coupon, 8/1/26-8/1/27
(FGIC) Aaa/AAA 682,631
2,475 Alameda Corridor Transportation
Auth. Rev., Ser. A,
4.75%, 10/1/25 (MBIA) Aaa/AAA 2,321,921
1,385 Alvord Univ. School Dist., GO,
Ser. C, 5.375%, 8/1/29 (FSA) Aaa/NR 1,405,609
1,650 Apple Valley, CP, 5.375%, 6/1/21 NR/A+ 1,654,372
400 Beverly Hills Public Fin. Auth.
Lease, Rev., 5.65%, 6/1/15
(MBIA) Aaa/AAA 415,020
6,405 Campbell Union High School
Dist., GO, 5.50%, 8/1/30 (FSA) Aaa/NR 6,586,646
2,250 Capistrano Univ. School Dist.,
Community Fac. Dist., Special
Tax, 5.75%, 9/1/29 NR/NR 2,210,243
8,250 Carson Improvement Board Act
1915, Special Assessment,
6.35%-6.375%, 9/2/23-9/2/31 NR/NR 8,251,395
5,250 Central JT Powers Health Fin.
Auth., CP, 5.75%, 2/1/31 Baa1/BBB+ 5,249,475
2,750 Contra Costa Cnty., Public Fin.
Auth., Tax Allocation Rev.,
5.125%, 8/1/19 NR/BBB 2,641,732
2,750 CSUCI Fin. Auth. Rev., Ser. A,
5.00%, 9/1/31 (MBIA) Aaa/AAA 2,659,470
3,635 Cucamonga Cnty. Water Dist., CP,
5.125%, 9/1/35 (FGIC) Aaa/AAA 3,586,109
9,940 East Bay Muni. Util. Dist.
Water Syst. Rev., 4.75%,
6/1/28 (MBIA) Aaa/AAA 9,251,357
1,000 Educational Fac. Auth. Rev.,
5.75%, 12/1/30 Baa3/NR 1,014,130
25,215 El Monte, CP, 4.75%-5.25%,
6/1/30-1/1/34 (AMBAC) Aaa/AAA 24,450,704
10,000 Foothill Eastern Corridor Agcy.,
Toll Road Rev., zero coupon,
1/15/33-1/15/34 Baa3/BBB- 1,376,350
9,170 Fremont Community Fac. Dist.,
Special Tax., 6.00%-6.30%,
9/1/18-9/1/31 NR/NR 9,193,890
Health Fac. Fin. Auth. Rev.,
4,000 5.00%, 7/1/18-7/1/28 Ser. A Baa2/BBB 3,566,290
5,315 5.125%, 7/1/18 NR/A- 5,163,895
3,000 5.25%, 10/1/14 Ser. B A3/A 3,071,520
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
| 4.30.02 | PIMCO Municipal Income Funds Annual Report 13
SCHEDULE OF INVESTMENTS (CONT.)
PIMCO CALIFORNIA MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
-----------------------------------------------------------------------------------
$ 9,025 Irvine Improvement Board Act
1915, Special Assessment,
5.80%-5.90%, 9/2/18-9/2/23 NR/NR $8,957,304
13,000 LA Quinta Redev. Agcy., Tax
Allocation, 5.00%-5.10%,
9/1/21-9/2/31 (AMBAC) Aaa/AAA 12,819,500
1,620 Lincoln Public Fin. Auth., Rev.,
6.125%, 9/2/27 NR/NR 1,574,203
6,250 Los Angeles Cnty. Metropolitan
Transportation Auth. Rev., Sales
Tax Rev., Ser. B 4.75%, 7/1/28 Aaa/AAA 5,811,937
845 Los Angeles Community Redev.
Agcy., Ser. B, Tax Allocation,
5.875%-6.00%, 9/1/26-9/1/31 NR/NR 809,818
10,000 Los Angeles Dept. of Water &
Power Waterworks Rev.,
5.125%, 7/1/41 (FGIC) NR/AAA 9,727,700
3,250 Los Angeles Univ. School Dist.,
GO, Ser. E, 5.125%, 7/1/21 Aaa/AAA 3,271,547
13,000 Los Angeles Water & Power Rev.,
Ser. A-A-1, 5.25%, 7/1/21 (FSA) Aaa/AAA 13,245,180
1,000 Menifee Univ. School Dist.,
Special Tax, 6.40%, 9/1/31 NR/NR 1,001,970
2,665 Merced Irrigation Dist. Elec. Syst.
Rev., 6.50%, 9/1/22 Baa3/NR 2,677,765
2,395 Metropolitan Water Dist., GO,
Ser. H, 4.75%, 3/1/37 Aaa/AAA 2,200,694
3,500 Metropolitan Water Dist.,
Waterworks Rev., Ser. A,
5.00%, 7/1/26 Aa2/AA 3,394,720
5,820 Montclair Redev. Agcy., Tax
Allocation, 5.30%, 10/1/30
(MBIA) Aaa/AAA 5,861,380
5,910 Murrieta Valley Yuma Univ.
School Dist., Special Tax,
6.30%-6.50%, 9/1/18-9/1/31 NR/NR 5,942,305
1,080 Palm Springs Community Redev.
Agcy., Tax Allocation,
5.50%, 8/1/21 NR/A- 1,089,158
1,010 Pomona Univ. School Dist., GO,
Ser. A, 6.10%, 2/1/19 (MBIA) Aaa/AAA 1,156,046
1,690 Rancho Etiwanda Public Fac.,
Special Tax, 6.375%, 9/1/24 NR/NR 1,715,063
2,770 Rancho Mirage Redev. Agcy.,
Tax Allocation, 5.50%-5.625%,
4/1/24-4/1/33 Baa1/BBB+ 2,783,018
8,305 Riverside Cnty., CP, 5.125%,
11/1/30 (MBIA) Aaa/AAA 8,200,772
1,000 Riverside Cnty. Pub. Financing,
Tax Allocation, Ser. A,
5.625%, 10/1/33 Baa2/BBB- 1,003,410
1,850 Riverside Improvement Board Act
1915, Special Assessment,
6.15%-6.375%, 9/2/19-9/2/26 NR/NR 1,843,547
575 Roseville, Woodcreek Community
Fac. Dist., Spec. Tax,
6.375%, 9/1/27 NR/NR 585,160
2,000 Sacramento Health Fac. Rev.,
Ser. A, 5.30%, 1/1/24 NR/A+ 1,964,460
6,910 Sacramento, Special Tax,
5.70%-6.15%, 9/1/21-9/1/26 NR/NR 6,817,651
545 San Diego Cnty., CP,
5.25%, 10/1/28 A2/NR 534,291
6,500 San Diego Cnty. Water Auth.
Rev., CP, Ser. A, 4.75%, 5/1/28. Aaa/AAA 5,998,850
3,330 San Francisco Bay Area Rapid
Transit Dist. Rev., 5.125%,
7/1/36 (AMBAC). Aaa/AAA 3,284,812
4,250 San Francisco City & Cnty.
Airport., Community Int'l Airport
Rev., 4.50%, 5/1/26 (MBIA) Aaa/AAA 3,745,695
San Francisco City & Cnty. Redev.
Agcy. Rev., Special Tax,
1,500 6.125%, 8/1/31, Ser. A NR/NR 1,505,595
3,500 6.125%, 8/1/31, Ser. B NR/NR 3,476,025
5,065 San Joaquin Cnty., CP, 5.00%,
9/1/20 (MBIA) Aaa/AAA 5,068,394
San Joaquin Hills Transportation
Corridor Agcy. Toll Road Rev.,
Ser. A,
5,000 zero coupon, 1/15/19, Baa3/BBB- 3,530,350
5,000 5.50%, 1/15/28, Baa3/BBB- 4,655,500
240 San Jose Improvement Board Act
1915, Special Assessment, Ser.
24Q, 5.60%, 9/2/17 NR/NR 240,470
5,000 San Jose Redev. Agcy., Tax
Allocation, 5.25%, 8/1/29 A2/A 4,921,250
5,000 San Jose Univ. School Dist.,
Santa Clara Cnty., GO, Ser. D,
5.125%, 8/1/25 (FSA) Aaa/NR 4,976,050
26,450 San Juan Univ. School Dist., GO,
(FSA) zero coupon,
8/1/22-8/1/26 Aaa/AAA 7,569,720
600 Santa Ana Fin. Auth., Ser. C,
Rev., 5.60% 9/1/19 NR/BBB 606,708
State, GO,
7,000 4.50%, 12/1/21 (FGIC) Aaa/AAA 6,458,970
11,000 4.75%-5.375%, 10/1/25-12/1/28 A1/A+ 10,930,190
State, Public Works Board Lease Rev.,
5,385 5.00%, 10/1/19 Ser. A, A2/A 5,323,126
5,000 5.00%, 9/1/21 Ser. B Aaa/AAA 4,969,000
Statewide Community Dev. Auth., CP,
15,000 5.375%, 4/1/30 NR/BBB 13,661,400
8,000 6.50%, 7/1/20 Baa2/BBB 8,277,920
Statewide Community Dev. Auth. Rev.,
15,250 5.125%, 10/1/30, Ser. A NR/A+ 14,411,098
12,450 6.625%-6.75%, 6/1/28-11/1/31 NR/NR 12,528,817
2,000 Tamalpais Union High School
Dist., GO, 5.00%, 8/1/26
(MBIA) Aaa/AAA 1,953,160
14 PIMCO Municipal Income Funds Annual Report | 4.30.02 |
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
SCHEDULE OF INVESTMENTS (CONT.)
PIMCO CALIFORNIA MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
----------------------------------------------------------------------------------------
$10,800 Tobacco Securitization Auth. Rev., Ser. A
5.25%-5.375%, 6/1/31-6/1/41 A1/A $ 9,982,302
3,750 West Kern Cnty. Water Dist., CP,
5.625%, 6/1/31 Baa2/NR 3,704,850
------------
Total California Municipal Bonds & Notes
(cost - $347,133,225) 343,410,290
------------
----------------------------------------------------------------------------------------
OTHER MUNICIPAL BONDS & NOTES -- 2.5%
----------------------------------------------------------------------------------------
LOUISIANA -- 0.4%
1,750 Tobacco Settlement Finance
Corp., Ser. 2001-B,
5.875%, 5/15/39 A1/A 1,579,497
------------
PUERTO RICO -- 2.1%
3,050 Commonwealth, GO,
5.50%, 7/1/12 NR/AAA 3,415,238
5,010 Public Fin. Corp. Rev. Ser. A,
5.00%, 8/1/29 (MBIA) Aaa/AAA 4,950,832
------------
8,366,070
------------
Total Other Municipal Bonds & Notes
(cost - $10,189,266) 9,945,567
------------
Principal
Amount
(000) Credit Rating* Value**
-------------------------------------------------------------------------------------
CALIFORNIA SHORT-TERM VARIABLE RATE DEMAND NOTES*** -- 9.7%
-------------------------------------------------------------------------------------
$ 900 Health Fac. Fin. Auth. Rev.,
Ser. A, 1.60%, 5/1/02 (MBIA) VMIG1/A1+ $ 900,000
Irvine Improvement Board Act
1915, Special Assessment,
2,400 1.65%, 5/1/02 (Bayerische) VMIG1/NR 2,400,000
500 1.65%, 5/1/02 (KBC Bank, NV) VMIG1/A1 500,000
10,003 Los Angeles Wastewater Syst.
Rev., Ser. 318, 8.04%, 5/6/02
(FGIC)++ NR/NR 9,461,765
1,000 Orange Cnty., Sanitation Dists.,
CP Ser. B, 1.65%, 5/1/02 VMIG1/A1+ 1,000,000
Orange Cnty., Special Financing
Auth. Teeter Plan Rev.,
(AMBAC)
1,900 1.60%, 5/1/1/02, Ser. C VMIG1/A1+ 1,900,000
900 1.60%, 5/1/02, Ser. D VMIG1/A1 900,000
22,500 State, GO, RITES, Ser. 898-R,
7.873%, 5/6/02++ A1/A+ 21,109,050
350 Turlock Irrigation Dist., CP,
(Societe Generale), 1.60%,
5/1/02 NR/A1+ 350,000
------------
Total Short-Term Variable Rate Demand Notes
(cost - $38,835,238) 38,520,815
------------
TOTAL INVESTMENTS - 98.8%
(cost - $396,157,729++) $391,876,672
OTHER ASSETS LESS LIABILITIES - 1.2% 4,805,212
------------
NET ASSETS - 100.0% $396,681,884
------------
-------------
++ The cost basis of portfolio securities for federal income tax purposes is
$396,157,729. Aggregate gross unrealized appreciation for securities in
which there is an excess of value over tax cost is $2,080,771, aggregate
gross unrealized depreciation for securities in which there is an excess
of tax cost over value is $6,361,828, and net unrealized depreciation for
federal income tax purposes is $4,281,057.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
| 4.30.02 | PIMCO Municipal Income Funds Annual Report 15
SCHEDULE OF INVESTMENTS (CONT.)
PIMCO NEW YORK MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
-----------------------------------------------------------------------------------
NEW YORK MUNICIPAL BONDS & NOTES -- 79.3%
-----------------------------------------------------------------------------------
$ 3,265 Albany Indl. Dev. Agcy. Civic Fac.
Rev., Ser. A, 5.30%, 4/1/29 Baa1/NR $ 3,160,324
Long Island Power Auth. Elec.
Syst. Rev.,
1,000 5.375%, 5/1/33, Ser. L Baa1/A- 980,040
6,300 5.50%, 12/1/29, Ser. A Baa1/A- 6,374,277
2,500 Monroe Tobacco Asset
Securitization Corp. Rev.,
6.375%, 6/1/35 A1/A 2,618,150
5,000 New York City, GO, Ser. J,
5.125%, 5/15/29 (MBIA) Aaa/AAA 4,874,950
2,000 New York City Indl. Dev. Agcy.
Rev., 6.00%, 11/1/28 NR/NR 1,595,500
New York City Muni. Water
Fin. Auth., Water & Sewer
Syst., Rev.,
7,605 4.75%, 6/15/31, Ser. A, (FGIC) Aaa/AAA 6,976,903
7,000 5.125%, 6/15/21, Ser. A (AMBAC) Aaa/AAA 7,026,950
5,000 5.125%, 6/15/33, Ser. C Aa2/AA 4,896,900
5,000 5.25%, 6/15/25, Ser. D Aa2/AA 5,019,150
3,250 New York City Transitional Fin.
Auth., Rev., Ser. B,
4.75%, 11/15/23, Aa2/AA+ 3,049,800
2,000 Port Auth. of New York & New
Jersey Rev., 5.00%, 7/15/28 A1/AA- 1,907,220
6,550 State Dormitory Auth. Lease Rev.,
Ser. 1, 4.75%, 1/15/29 (FSA) Aaa/AAA 6,037,986
1,535 State Dormitory Auth. Rev.,
FHA-Mortgage Nursing Home
Rev., 5.40%-5.50%,
2/1/31-2/1/41 (MBIA) Aaa/AAA 1,547,929
8,000 State Dormitory Auth. Rev.,
FHA-NY & Presbyterian Hosp.,
4.75%, 8/1/27 (AMBAC) Aaa/AAA 7,411,840
11,800 State Dormitory Auth. Rev.,
Lenox Hill Hosp. Oblig. Group,
5.50%, 7/1/30 A3/NR 11,799,056
13,000 State Dormitory Auth. Rev.,
Mental Health Services Fac.,
Improvement, Ser. D, 4.75%,
2/15/25 (MBIA) Aaa/AAA 12,124,710
8,325 State Dormitory Auth. Rev.,
Mount Sinai Health, Ser. A
6.50%-6.625%, 7/1/18-7/1/25 Baa2/BBB 8,851,046
845 State Dormitory Auth. Rev.,
New York Univ., Ser. 2
5.50%, 7/1/20-7/1/21 (AMBAC) Aaa/AAA 879,501
State Dormitory Auth. Rev., State
Univ. Educational Fac., Ser. B,
3,315 4.75%, 5/15/28 (FSA) Aaa/AAA 3,063,458
6,000 4.75%, 5/15/28 (MBIA) Aaa/AAA 5,544,720
6,000 5.25%, 5/15/19 A3/AA- 6,240,540
1,275 State Dormitory Auth. Rev.,
Winthrop Univ. Hosp. Assoc.,
Ser. A, 5.25%, 7/1/31 (AMBAC) Aaa/AAA 1,265,488
5,000 State Thruway Auth. General
Rev., Ser. E , 4.75%, 1/1/19 Aa3/AA- 4,837,500
3,975 State Urban Dev. Corp. Rev.,
Ser. B, 4.75%, 1/1/28 (AMBAC) Aaa/AAA 3,675,245
3,125 Tobacco Trust II Rev.,
5.625%-5.75%, 6/1/35-6/1/43 A1/A 3,045,109
5,000 Triborough Bridge & Tunnel Auth.,
Rev., Ser. A, 5.00%, 1/1/32 Aa3/AA- 4,740,850
------------
Total New York Municipal Bonds & Notes
(cost - $130,953,982) 129,545,142
------------
-----------------------------------------------------------------------------------
OTHER MUNICIPAL BONDS & NOTES -- 9.3%
-----------------------------------------------------------------------------------
LOUISIANA -- 0.4%
750 Tobacco Settlement Finance
Corp., Ser. 2001-B,
5.875%, 5/15/39 A1/A 676,928
------------
PUERTO RICO -- 8.9%
3,480 Commonwealth, GO,
5.00%, 7/1/27, (AMBAC) Aaa/AAA 3,455,118
5,000 Commonwealth Hwy. &
Transportation Auth. Rev.,
Ser. A, 4.75%, 7/1/38 Baa1/A 4,626,950
1,610 Elec. Power Auth. Rev., Ser DD,
5.00%, 7/1/28 (FSA) Aaa/AAA 1,595,961
5,000 Public Fin. Corp. Rev., Ser. A,
5.00%, 8/1/31 (MBIA) Aaa/AAA 4,931,550
------------
14,609,579
------------
Total Other Municipal Bonds & Notes
(cost - $15,696,475) 15,286,507
------------
16 PIMCO Municipal Income Funds Annual Report | 4.30.02 |
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
SCHEDULE OF INVESTMENTS (CONCL.)
PIMCO NEW YORK MUNICIPAL INCOME FUND
April 30, 2002
Principal
Amount Credit Rating*
(000) (Moody's/S&P) Value**
-----------------------------------------------------------------------------------
NEW YORK SHORT-TERM VARIABLE RATE DEMAND NOTES*** -- 9.4%
-----------------------------------------------------------------------------------
$ 200 New York City, GO, Ser. A7,
1.65%, 5/1/02 VMIG1/A1+ $ 200,000
New York City Transitional Fin.
Auth., Rev.,
200 1.65%, 5/1/02, Ser. C VMIG1/A1+ 200,000
5,173 7.46%, 5/2/02, Ser. 362++ Aa2/NR 4,460,247
Tobacco Trust II Rev., RITES
4,000 9.168%, 5/6/02,++ A1/A 3,794,640
6,500 9.418%, 5/6/02, 886-B++ A1/A 6,677,905
------------
Total Short-Term Variable Rate Demand Notes
(cost - $15,867,630) 15,332,792
------------
TOTAL INVESTMENTS -- 98.0%
(cost - $162,518,087+++) $160,164,441
OTHER ASSETS LESS LIABILITIES -- 2.0% 3,248,223
------------
NET ASSETS -- 100.0% $163,412,664
------------
----------------------
+++ The cost basis of portfolio securities for federal income tax purposes is
$162,521,737. Aggregate gross unrealized appreciation for securities in
which there is an excess of value over tax cost is $823,621, aggregate
gross unrealized depreciation for securities in which there is an excess
of tax cost over value is $3,180,917, and net unrealized depreciation for
federal income tax purposes is $2,357,296.
----------------------
* Unaudited
** Long-term debt securities are valued by an independent pricing service
authorized by the Board of Trustees.
*** Variable Rate Demand Notes are instruments whose interest rates change on
a 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). Maturity date shown is date of next rate
change. Interest rate shown is the rate in effect on April 30, 2002.
++ Security exempt from registration under Rule 144a of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, typically to qualified institutional investors. At April
30, 2002, these securities amounted to $54,834,379 or 10.2% of net
assets, $30,570,815 or 7.7% of net assets and $14,932,792 or 9.1% of net
assets, for PIMCO Municipal Income Fund, PIMCO California Municipal
Income Fund and PIMCO New York Municipal Income Fund, respectively.
Glossary:
AMBAC -- insured by American Municipal Bond Assurance Corp.
CP -- Certificate of Participation
FGIC -- insured by Financial Guaranty Insurance Co.
FHA -- insured by Federal Housing Administration
FSA -- insured by Financial Security Assurance, Inc.
GO -- General Obligation Bonds
MBIA -- insured by Municipal Bond Investors Assurance
NR -- not rated
RITES -- Residual Interest Trust
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
| 4.30.02 | PIMCO Municipal Income Funds Annual Report 17
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2002
CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
------------ ------------ ------------
ASSETS:
Investments, at value (cost -- $531,480,575, $396,157,729 and $162,518,087,
respectively) $528,246,856 $391,876,672 $160,164,441
-------------------------------------------------------------------------------- ------------ ------------ ------------
Cash 1,172,176 125,649 39,409
-------------------------------------------------------------------------------- ------------ ------------ ------------
Interest receivable 11,036,949 6,230,259 3,835,970
-------------------------------------------------------------------------------- ------------ ------------ ------------
Receivable for investments called 439,000 -- --
-------------------------------------------------------------------------------- ------------ ------------ ------------
Prepaid expenses 47,312 41,218 45,674
-------------------------------------------------------------------------------- ------------ ------------ ------------
Total Assets 540,942,293 398,273,798 164,085,494
-------------------------------------------------------------------------------- ------------ ------------ ------------
LIABILITIES:
Dividends payable to common and preferred shareholders 1,964,430 1,375,017 559,312
-------------------------------------------------------------------------------- ------------ ------------ ------------
Investment management fees payable 198,181 145,930 60,199
-------------------------------------------------------------------------------- ------------ ------------ ------------
Accrued expenses 76,732 70,967 53,319
-------------------------------------------------------------------------------- ------------ ------------ ------------
Total Liabilities 2,239,343 1,591,914 672,830
-------------------------------------------------------------------------------- ------------ ------------ ------------
Preferred shares ($25,000 net asset and liquidation value per share applicable
to 8,000, 6,000 and 2,520, shares issued and outstanding, respectively) $200,000,000 $150,000,000 $ 63,000,000
-------------------------------------------------------------------------------- ------------ ------------ ------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS $338,702,950 $246,681,884 $100,412,664
-------------------------------------------------------------------------------- ------------ ------------ ------------
COMPOSITION OF NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Common stock (no par value):
Paid-in capital $338,229,277 $249,971,593 $102,302,628
-------------------------------------------------------------------------------- ------------ ------------ ------------
Undistributed net investment income 2,685,291 1,101,271 428,915
-------------------------------------------------------------------------------- ------------ ------------ ------------
Net realized gain (loss) on investments 1,022,101 (109,923) 34,767
-------------------------------------------------------------------------------- ------------ ------------ ------------
Net unrealized depreciation of investments (3,233,719) (4,281,057) (2,353,646)
-------------------------------------------------------------------------------- ------------ ------------ ------------
Net assets applicable to common shareholders $338,702,950 $246,681,884 $100,412,664
-------------------------------------------------------------------------------- ------------ ------------ ------------
Common shares outstanding 23,826,914 17,615,418 7,215,819
-------------------------------------------------------------------------------- ------------ ------------ ------------
NET ASSET VALUE PER COMMON SHARE $14.22 $14.00 $13.92
-------------------------------------------------------------------------------- ------------ ------------ ------------
18 PIMCO Municipal Income Funds Annual Report | 4.30.02 |
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS
For the period June 29, 2001* through April 30, 2002
CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
------------- -------------- -------------
INTEREST INCOME:
Interest $24,151,896 $16,556,487 $6,724,899
------------------------------------------------------------------------ ------------- -------------- -------------
EXPENSES:
Investment management fees 2,733,570 2,024,836 824,313
------------------------------------------------------------------------ ------------- -------------- -------------
Auction agent fees and commissions 354,153 262,115 109,782
------------------------------------------------------------------------ ------------- -------------- -------------
Custodian fees 85,459 72,966 46,660
------------------------------------------------------------------------ ------------- -------------- -------------
Legal fees 77,545 64,667 33,015
------------------------------------------------------------------------ ------------- -------------- -------------
Audit and tax service fees 55,532 50,864 32,232
------------------------------------------------------------------------ ------------- -------------- -------------
Trustees' fees 39,526 28,951 12,383
------------------------------------------------------------------------ ------------- -------------- -------------
Transfer agent fees 28,655 27,359 27,867
------------------------------------------------------------------------ ------------- -------------- -------------
Reports to shareholders 18,254 13,666 7,154
------------------------------------------------------------------------ ------------- -------------- -------------
Miscellaneous 34,590 33,012 24,338
------------------------------------------------------------------------ ------------- -------------- -------------
Total expenses 3,427,284 2,578,436 1,117,744
------------------------------------------------------------------------ ------------- -------------- -------------
Less: investment management fee waiver (841,098) (623,026) (253,635)
------------------------------------------------------------------------ ------------- -------------- -------------
expense offset (85,459) (72,966) (46,660)
------------------------------------------------------------------------ ------------- -------------- -------------
Net expenses 2,500,727 1,882,444 817,449
------------------------------------------------------------------------ ------------- -------------- -------------
NET INVESTMENT INCOME 21,651,169 14,674,043 5,907,450
------------------------------------------------------------------------ ------------- -------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 1,524,327 (109,923) 449,411
------------------------------------------------------------------------ ------------- -------------- -------------
Net unrealized depreciation of investments (3,233,719) (4,281,057) (2,353,646)
------------------------------------------------------------------------ ------------- -------------- -------------
Net realized and unrealized loss on investments (1,709,392) (4,390,980) (1,904,235)
------------------------------------------------------------------------ ------------- -------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM INVESTMENT OPERATIONS 19,941,777 10,283,063 4,003,215
------------------------------------------------------------------------ ------------- -------------- -------------
DIVIDENDS AND DISTRIBUTIONS ON PREFERRED SHARES FROM:
------------------------------------------------------------------------ ------------- -------------- -------------
Net investment income (2,110,712) (1,586,830) (635,639)
------------------------------------------------------------------------ ------------- -------------- -------------
Net realized gains (63,733) -- (54,140)
------------------------------------------------------------------------ ------------- -------------- -------------
Total dividends and distributions on preferred shares (2,174,445) (1,586,830) (689,779)
------------------------------------------------------------------------ ------------- -------------- -------------
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING
FROM INVESTMENT OPERATIONS $17,767,332 $ 8,696,233 $3,313,436
------------------------------------------------------------------------ ------------- -------------- -------------
* Commencement of operations.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
| 4.30.02 | PIMCO Municipal Income Funds Annual Report 19
STATEMENTS OF CHANGES IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
For the period June 29, 2001* through April 30, 2002
CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
------------- ------------ -------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
------------------------------------------------------------------------------
Net investment income $ 21,651,169 $ 14,674,043 $ 5,907,450
------------------------------------------------------------------------------ ------------- ------------ -------------
Net realized gain (loss) on investments 1,524,327 (109,923) 449,411
------------------------------------------------------------------------------ ------------- ------------ -------------
Net unrealized depreciation of investments (3,233,719) (4,281,057) (2,353,646)
------------------------------------------------------------------------------ ------------- ------------ -------------
Net increase in net assets resulting from investment operations 19,941,777 10,283,063 4,003,215
------------------------------------------------------------------------------ ------------- ------------ -------------
DIVIDENDS AND DISTRIBUTIONS ON PREFERRED SHARES FROM:
Net investment income (2,110,712) (1,586,830) (635,639)
------------------------------------------------------------------------------ ------------- ------------ -------------
Net realized gains (63,733) -- (54,140)
------------------------------------------------------------------------------ ------------- ------------ -------------
Total dividends and distributions on preferred shares (2,174,445) (1,586,830) (689,779)
------------------------------------------------------------------------------ ------------- ------------ -------------
Net increase in net assets applicable to common shareholders resulting from
investment operations 17,767,332 8,696,233 3,313,436
------------------------------------------------------------------------------ ------------- ------------ -------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income (16,855,166) (11,985,942) (4,842,896)
------------------------------------------------------------------------------ ------------- ------------ -------------
Net realized gains (438,493) -- (360,504)
------------------------------------------------------------------------------ ------------- ------------ -------------
Total dividends and distributions to common shareholders (17,293,659) (11,985,942) (5,203,400)
------------------------------------------------------------------------------ ------------- ------------ -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from the sale of common stock 339,359,250 250,401,000 102,137,250
------------------------------------------------------------------------------ ------------- ------------ -------------
Preferred shares underwriting discount charged to paid-in capital (2,000,000) (1,500,000) (630,000)
------------------------------------------------------------------------------ ------------- ------------ -------------
Common stock and preferred shares offering costs charged to paid-in capital (1,045,700) (888,423) (419,314)
------------------------------------------------------------------------------ ------------- ------------ -------------
Reinvestment of dividends and distributions 1,815,722 1,859,011 1,114,687
------------------------------------------------------------------------------ ------------- ------------ -------------
Net increase in capital share transactions 338,129,272 249,871,588 102,202,623
------------------------------------------------------------------------------ ------------- ------------ -------------
Total increase in net assets applicable to common shareholders 338,602,945 246,581,879 100,312,659
------------------------------------------------------------------------------ ------------- ------------ -------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 100,005 100,005 100,005
------------------------------------------------------------------------------ ------------- ------------ -------------
End of period (including undistributed net investment income of $2,685,291,
$1,101,271 and $428,915, respectively) $338,702,950 $246,681,884 $100,412,664
------------------------------------------------------------------------------ ------------- ------------ -------------
COMMON SHARES ISSUED AND REINVESTED:
Issued 23,690,000 17,480,000 7,130,000
------------------------------------------------------------------------------ ------------- ------------ -------------
Issued in reinvestment of dividends and distributions 130,247 128,751 79,152
------------------------------------------------------------------------------ ------------- ------------ -------------
NET INCREASE 23,820,247 17,608,751 7,209,152
------------------------------------------------------------------------------ ------------- ------------ -------------
* Commencement of operations.
20 PIMCO Municipal Income Funds Annual Report | 4.30.02 |
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
April 30, 2002
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PIMCO Municipal Income Fund ("Municipal"), PIMCO California Municipal Income
Fund ("California Municipal") and PIMCO New York Municipal Income Fund ("New
York Municipal"), collectively referred to as the "Funds", were organized as
Massachusetts business trusts on May 10, 2001. Prior to commencing operations
on June 29, 2001, the Funds had no operations other than matters relating to
their organization and registration as non-diversified, closed-end management
investment companies registered under the Investment Company Act of 1940 and
the rules and regulations thereunder, as amended, and the sale and issuance of
6,667 shares of beneficial interest of each Fund at an aggregate purchase price
of $100,005 per Fund to PIMCO Funds Advisors LLC, formerly PIMCO Advisors LP
(the "Investment Manager"), an indirect, majority-owned subsidiary of Allianz
AG.
Municipal, California Municipal and New York Municipal issued 20,600,000,
15,200,000 and 6,200,000 shares of common stock, respectively, in their initial
public offerings. An additional 3,090,000, 2,280,000 and 930,000 shares of
Municipal, California Municipal and New York Municipal, respectively, were
issued in connection with the exercise of the underwriters over-allotment
option on June 26, 2001. These shares were all issued at $15.00 per share
before underwriting discount of $0.67 per share. Offering costs of $710,700,
$524,400 and $213,900 (representing $0.03 per share for each Fund), for
Municipal, California Municipal and New York Municipal, respectively, were
offset against the proceeds of the offerings and have been charged to paid-in
capital. The Investment Manager has paid all offering costs (other than the
sales load) and organizational expenses exceeding $0.03 per share for each
Fund.
In addition, the underwriters discount and offering costs associated with the
Funds' issuance of Preferred Shares in the amounts of $2,000,000 and $335,000,
$1,500,000 and $364,023 and $630,000 and $205,414, for Municipal, California
Municipal and New York Municipal, respectively, have been charged to paid-in
capital.
The preparation of the financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
consistently followed by the Funds:
(A) VALUATION OF INVESTMENTS
Debt securities are valued daily by an independent pricing service approved by
the Boards of Trustees. Any security or other asset for which market quotations
are not readily available is valued at fair value as determined in good faith
under procedures established by the Boards of Trustees. Municipal invests
substantially all of its assets in a portfolio of municipal bonds, the interest
from which is exempt from federal income taxes. California Municipal invests
substantially all of its assets in municipal bonds which pay interest that is
exempt from federal and California income taxes. New York Municipal invests
substantially all of its assets in municipal bonds which pay interest that is
exempt from federal, New York State and New York City income taxes. The Funds
will seek to avoid bonds generating interest income which could potentially
subject individuals to alternative minimum tax. The issuers' abilities to meet
their obligations may be affected by economic and political developments in a
specific state or region.
(B) FEDERAL INCOME TAXES
The Funds intend to distribute all of their taxable income and to comply with
the other requirements of the U.S. Internal Revenue Code of 1986, as amended,
applicable to regulated investment companies. Accordingly, no provision for
U.S. federal income taxes is required. In addition, by distributing
substantially all of their taxable ordinary income and long-term capital gains,
if any, during each calendar year, the Funds intend not to be subject to U.S.
federal excise tax. New York Municipal has selected June 30, 2002 as its year
end for income tax purposes. At June 30, 2001, New York Municipal did not have
any undistributed tax exempt income, ordinary income or capital gains.
Additionally, New York Municipal incurred no book/tax differences.
The tax character of dividends and distributions for Municipal Income for the
period June 29, 2001 (commencement of operations) through April 30, 2002 was:
Ordinary income $628,190
Tax exempt income $18,839,914
At April 30, 2002, Municipal Income had tax basis distributable earnings of:
Undistributed ordinary income $1,022,101
Undistributed tax exempt income $2,685,291
The tax character of dividends and distributions for California Municipal for
the period June 29, 2001 (commencement of operations) through April 30, 2002
was:
Ordinary income $123,015
Tax exempt income $13,449,757
At April 30, 2002, California Municipal had tax basis distributable earnings
of:
Undistributed tax exempt income $1,101,271
At April 30, 2002, California Municipal had a capital loss carryforward of
$2,250, all of which expires in 2010, available as a reduction to the extent
provided in the regulations, of any
4.30.02 | PIMCO Municipal Income Funds Annual Report 21
future net realized gains. To the extent that these losses are used to offset
future realized capital gains, such gains will not be distributed.
In accordance with U.S. Treasury regulations, California Municipal elected to
defer realized capital losses of $107,673, arising after October 31, 2001. Such
losses are treated for tax purposes as arising on May 1, 2002.
(C) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the trade date. Realized gains and
losses on investments are determined on the identified cost basis. Interest
income is recorded on an accrual basis. Original issue discounts or premiums on
debt securities purchased are accreted or amortized daily to non-taxable
interest income. Market discounts, if any, are accreted daily to taxable
income.
(D) DIVIDENDS AND DISTRIBUTIONS -- COMMON STOCK
The Funds declare dividends from net investment income monthly to common
shareholders. Distributions of net realized capital gains, if any, are paid at
least annually. Each Fund records dividends and distributions to its
shareholders on the ex-dividend date. The amount of dividends and distributions
from net investment income and net realized capital gains are determined in
accordance with federal income tax regulations, which may differ from generally
accepted accounting principles. These "book-tax" differences are either
considered temporary or permanent in nature. To the extent these differences
are permanent in nature, such amounts are reclassified within the capital
accounts based on their federal income tax treatment; temporary differences do
not require reclassification. To the extent dividends and/or distributions
exceed current and accumulated earnings and profits for federal income tax
purposes, they are reported as dividends and/or distributions of paid-in
capital in excess of par.
(E) EXPENSE OFFSET
The Funds benefit from an expense offset arrangement with their custodian bank
whereby uninvested cash balances earn credits which reduce monthly custodian
expenses. Had these cash balances been invested in income producing securities,
they would have generated income for the Funds.
2. INVESTMENT MANAGER AND SUB-ADVISER
Each Fund has entered into an Investment Management Agreement (the
"Agreements") with the Investment Manager to serve as Investment Manager to
each Fund. Subject to the supervision of each Fund's Board of Trustees, the
Investment Manager is responsible for managing, either directly or through
others selected by it, the investment activities of the Fund and the Fund's
business affairs and other administrative matters. Pursuant to the Agreements,
the Investment Manager will receive an annual fee, payable monthly, at the
annual rate of 0.65% of each Fund's average daily net assets (including net
assets attributable to any preferred shares that may be outstanding). In order
to reduce Fund expenses, the Investment Manager has contractually agreed to
reimburse each Fund for fees and expenses at the annual rate of 0.20% of the
Fund's average daily net assets (including net assets attributable to any
preferred shares that may be outstanding) from the commencement of operations
through June 30, 2006, and for a declining amount thereafter through June 30,
2009.
The Investment Manager has retained its affiliate, Pacific Investment
Management Company LLC (the "Sub-Adviser") to manage each Fund's investments.
Subject to the supervision of the Investment Manager, the Sub-Adviser makes all
investment decisions with respect to each Fund's assets. The Investment Manager
(not the Funds) pays a portion of the fees it receives to the Sub-Adviser in
return for its services, at the maximum annual rate of 0.37% of each Fund's
average daily net assets (including net assets attributable to any preferred
shares that may be outstanding). The Sub-Adviser has contractually agreed to
waive a portion of the fees it is entitled to receive from the Investment
Manager, such that the Sub-Adviser will receive 0.25% of each Fund's average
daily net assets (including net assets attributable to any preferred shares
that may be outstanding) from the commencement of the Funds' operations through
June 30, 2006, and will receive an increasing amount (not to exceed 0.37% of
each Fund's average daily net assets, including net assets attributable to any
preferred shares that may be outstanding) thereafter through June 30, 2009. The
Investment Manager informed the Funds that it paid the Sub-Adviser $1,051,373,
$778,783 and $317,043 in connection with sub-advisory services for Municipal,
California Municipal and New York Municipal, respectively, for the period ended
April 30, 2002.
3. INVESTMENTS IN SECURITIES
For the period ended April 30, 2002, purchases and sales of investments, other
than short-term securities, were as follows:
California New York
Municipal Municipal Municipal
------------ ------------ ------------
Purchases $713,911,162 $559,950,008 $236,322,993
Sales $183,858,919 $164,174,542 $ 74,235,690
4. CAPITAL
The Funds have an unlimited amount of no par value common stock authorized.
5. AUCTION PREFERRED SHARES
Municipal has issued 1,600 shares of Preferred Shares Series A, 1,600 shares of
Preferred Shares Series B, 1,600 shares of Preferred Shares Series C, 1,600
shares of Preferred Shares Series D and 1,600 shares of Preferred Shares Series
E each with a net asset and liquidation value of $25,000 per share plus accrued
dividends.
22 PIMCO Municipal Income Funds Annual Report | 4.30.02
California Municipal has issued 2,000 shares of Preferred Shares Series A,
2,000 shares of Preferred Shares Series B and 2,000 shares of Preferred Shares
Series C each with a net asset and liquidation value of $25,000 per share plus
accrued dividends.
New York Municipal has issued 2,520 shares of Preferred Shares Series A with a
net asset and liquidation value of $25,000 per share plus accrued dividends.
Dividends are accumulated daily at an annual rate set through auction
procedures. Distributions of net realized capital gains, if any, are paid
annually.
For the period ended April 30, 2002, the annualized dividend rates ranged from:
At
High Low 4/30/02
---------- ---------- -----------
Municipal:
----------
Series A 2.23% 1.00% 1.55%
Series B 2.20% 1.10% 1.20%
Series C 2.25% 1.00% 1.20%
Series D 2.25% 0.99% 1.15%
Series E 2.25% 1.15% 1.55%
California Municipal:
---------------------
Series A 2.05% 1.20% 1.60%
Series B 2.125% 1.00% 1.50%
Series C 2.05% 1.00% 1.50%
New York Municipal:
-------------------
Series A 2.30% 0.90% 1.50%
The Funds are subject to certain limitations and restrictions while Preferred
Shares are outstanding. Failure to comply with these limitations and
restrictions could preclude the Funds from declaring any dividends or
distributions to common shareholders or repurchasing common shares and/or could
trigger the mandatory redemption of Preferred Shares at their liquidation
value.
Preferred Shares, which are entitled to one vote per share, generally vote with
the common stock but vote separately as a class to elect two Trustees and on
any matters affecting the rights of the Preferred Shares.
6. SUBSEQUENT DIVIDEND DECLARATIONS - COMMON SHAREHOLDERS
On May 1, 2002, the following dividends were declared to common shareholders
payable June 3, 2002 to shareholders of record on May 10, 2002:
Municipal $0.08125 per common share
California Municipal $0.077 per common share
New York Municipal $0.075 per common share
On June 3, 2002, the following dividends were declared to common shareholders
payable July 1, 2002 to shareholders of record on June 14, 2002:
Municipal $0.08125 per common share
California Municipal $0.077 per common share
New York Municipal $0.075 per common share
4.30.02 | PIMCO Municipal Income Funds Annual Report 23
FINANCIAL HIGHLIGHTS
For a share of common stock outstanding for the period June 29, 2001* through
April 30, 2002:
CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
--------- ---------- ---------
Net asset value, beginning of period** $14.33 $14.33 $14.33
-------------------------------------------------------------------- --------- ---------- ---------
INCOME FROM INVESTMENT OPERATIONS:
-------------------------------------------------------------------- --------- ---------- ---------
Net investment income 0.91 0.83 0.82
-------------------------------------------------------------------- --------- ---------- ---------
Net realized and unrealized loss on investments (0.07) (0.25) (0.26)
-------------------------------------------------------------------- --------- ---------- ---------
Total from investment operations 0.84 0.58 0.56
-------------------------------------------------------------------- --------- ---------- ---------
DIVIDENDS AND DISTRIBUTIONS ON PREFERRED SHARES FROM:
-------------------------------------------------------------------- --------- ---------- ---------
Net investment income (0.09) (0.09) (0.09)
-------------------------------------------------------------------- --------- ---------- ---------
Net realized gains (0.00)+ -- (0.01)
-------------------------------------------------------------------- --------- ---------- ---------
Total dividends and distributions on preferred shares (0.09) (0.09) (0.10)
-------------------------------------------------------------------- --------- ---------- ---------
Net increase in net assets applicable to common shares resulting
from investment operations 0.75 0.49 0.46
-------------------------------------------------------------------- --------- ---------- ---------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
-------------------------------------------------------------------- --------- ---------- ---------
Net investment income (0.71) (0.68) (0.67)
-------------------------------------------------------------------- --------- ---------- ---------
Net realized gains (0.02) -- (0.05)
-------------------------------------------------------------------- --------- ---------- ---------
Total dividends and distributions to common shareholders (0.73) (0.68) (0.72)
-------------------------------------------------------------------- --------- ---------- ---------
CAPITAL SHARE TRANSACTIONS:
-------------------------------------------------------------------- --------- ---------- ---------
Common stock offering costs charged to paid-in capital (0.03) (0.03) (0.03)
-------------------------------------------------------------------- --------- ---------- ---------
Preferred shares offering costs/underwriting discounts charged to
paid-in capital (0.10) (0.11) (0.12)
-------------------------------------------------------------------- --------- ---------- ---------
Total capital share transactions (0.13) (0.14) (0.15)
-------------------------------------------------------------------- --------- ---------- ---------
Net asset value, end of period $14.22 $14.00 $13.92
-------------------------------------------------------------------- --------- ---------- ---------
Market price, end of period $14.70 $14.71 $14.20
-------------------------------------------------------------------- --------- ---------- ---------
TOTAL INVESTMENT RETURN (1) 3.1% 2.8% (0.3)%
-------------------------------------------------------------------- --------- ---------- ---------
RATIOS/SUPPLEMENTAL DATA:
-------------------------------------------------------------------- --------- ---------- ---------
Net assets applicable to common shareholders, end of period (000) $338,703 $246,682 $100,413
-------------------------------------------------------------------- --------- ---------- ---------
Ratio of expenses to average net assets (2)(3)(4) 0.91%(5) 0.94%(6) 1.04%(7)
-------------------------------------------------------------------- --------- ---------- ---------
Ratio of net investment income to average net assets (2)(4) 7.64%(5) 7.03%(6) 7.07%(7)
-------------------------------------------------------------------- --------- ---------- ---------
Preferred shares asset coverage per share $67,332 $66,109 $64,834
-------------------------------------------------------------------- --------- ---------- ---------
Portfolio turnover 38% 45% 51%
-------------------------------------------------------------------- --------- ---------- ---------
* Commencement of operations.
** Initial public offering price of $15.00 per share less underwriting
discount of $0.67 per share.
+ Less than $0.005 per share
(1) Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of the period reported. Dividends and
distributions are assumed, for purposes of this calculation, to be
reinvested at prices obtained under the Funds' dividend reinvestment
plan. Total investment return does not reflect brokerage commissions or
sales charges. Total investment return for a period of less than one year
is not annualized.
(2) Calculated on the basis of income and expenses applicable to both common
and preferred shares relative to the average net assets of common
shareholders.
(3) Inclusive of expenses offset by earning credits from custodian bank. (See
note 1e in Notes to Financial Statements).
(4) Annualized
(5) During the period indicated above the Investment Manager waived a portion
of its investment management fee. If such waiver had not been in effect,
the ratio of expenses to average net assets and the ratio of net
investment income to average net assets would have been 1.21%
(annualized) and 7.34% (annualized), respectively.
(6) During the period indicated above the Investment Manager waived a portion
of its investment management fee. If such waiver had not been in effect,
the ratio of expenses to average net assets and the ratio of net
investment income to average net assets would have been 1.24%
(annualized) and 6.73% (annualized), respectively.
(7) During the period indicated above the Investment Manager waived a portion
of its investment management fee. If such waiver had not been in effect,
the ratio of expenses to average net assets and the ratio of net
investment income to average net assets would have been 1.34%
(annualized) and 6.77% (annualized), respectively.
24 PIMCO Municipal Income Funds Annual Report | 4.30.02
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of:
PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund and PIMCO
New York Municipal Income Fund
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets applicable to common shareholders and
the financial highlights present fairly, in all material respects, the
financial position of each of PIMCO Municipal Income Fund, California Municipal
Income Fund and New York Municipal Income Fund (collectively hereafter referred
to as the "Funds") at April 30, 2002, and the results of each of their
operations, the changes in each of their net assets applicable to common
shareholders and each of their financial highlights for the period June 29,
2001 (commencement of operations) through April 30, 2002, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at April 30, 2002 by correspondence with the
custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
June 20, 2002
4.30.02 | PIMCO Municipal Income Funds Annual Report 25
TAX INFORMATION
Subchapter M of the Internal Revenue Code of 1986, as amended, requires the
Funds to advise shareholders within 60 days of the Funds' tax year end (April
30, 2002 for Municipal and California Municipal and June 30, 2002 for New York
Municipal) as to the federal tax status of dividends and distributions received
by shareholders during such tax year. Accordingly, we are advising that
substantially all dividends paid from net investment income for Municipal and
California Municipal during the tax period ended April 30, 2002 were federally
exempt interest dividends. Although these Funds invested in municipal bonds
containing market discount, whose accretion is taxable. Accordingly, the
percentage of dividends paid from net investment income during the tax year
which are taxable were:
Municipal 3.24%
California Municipal 0.91%
Per share dividends for the tax year ended April 30, 2002 were as follows:
MUNICIPAL:
Dividends to common sharholders from net investment income $0.7095
Dividends to preferred shareholders from net investment income $263.839
Distributions to common shareholders from net realized gains $0.0185
Distributions to preferred shareholders from net realized gains $7.97
CALIFORNIA MUNICIPAL:
Dividends to common shareholders from net investment income $0.6830
Dividends to preferred shareholders from net investment income $264.47
Similar information as indicated above will be provided to shareholders of New
York Municipal within 60 days of June 30, 2002.
Since the Funds' fiscal year is not the calendar year, another notification
will be sent with respect to calendar year 2002. In January 2003, you will be
advised on IRS Form 1099 DIV as to the federal tax status of the dividends and
distributions received during calendar year 2002. The amount that will be
reported, will be the amount to use on your 2002 federal income tax return and
may differ from the amount which must be reported in connection with each
Fund's tax year ended April 30, 2002 or June 30, 2002. Shareholders are advised
to consult their tax advisers as to the federal, state and local tax status of
the income received from the Funds. An allocation of interest by state will
also be provided which may be of value in reducing a shareholder's state or
local tax liability, if any.
26 PIMCO Municipal Income Funds Annual Report | 4.30.02
DIVIDEND REINVESTMENT PLAN
Pursuant to the Fund's Dividend Reinvestment Plan (the "Plan"), all Common
Shareholders whose shares are registered in their own names will have all
dividends, including any capital gain dividends, reinvested automatically in
additional Common Shares by PFPC Inc., as agent for the Common Shareholders
(the "Plan Agent"), unless the shareholder elects to receive cash. An election
to receive cash may be revoked or reinstated at the option of the shareholder.
In the case of record shareholders such as banks, brokers or other nominees
that hold Common Shares for others who are the beneficial owners, the Plan
Agent will administer the Plan on the basis of the number of Common Shares
certified from time to time by the record shareholder as representing the total
amount registered in such shareholder's name and held for the account of
beneficial owners who are to participate in the Plan. Shareholders whose shares
are held in the name of a bank, broker or nominee should contact the bank,
whose broker or nominee elects not to participate on the investor's behalf),
will be paid in cash by check mailed, in the case of direct shareholder, to the
record holder by PFPC Inc., as the Fund's dividend disbursement agent.
Unless you (or your broker or nominee) elects not to participate in the Plan,
the number of Common Shares you will receive will be determined as follows:
(1) If Common Shares are trading at or above net asset value on the payment
date, the Fund will issue new shares at the greater of (i) the net asset
value per Common Share on the payment date or (ii) 95% of the market
price per Common Share on the payment date; or
(2) If Common Shares are trading below net asset value (minus estimated
brokerage commissions that would be incurred upon the purchase of Common
Shares on the open market) on the payment date, the Plan Agent will
receive the dividend or distribution in cash and will purchase Common
Shares in the open market, on the New York Stock Exchange or elsewhere,
for the participants' accounts. It is possible that the market price for
the Common Shares may increase before the Plan Agent has completed its
purchases. Therefore, the average purchase price per share paid by the
Plan Agent may exceed the market price on the payment date, resulting in
the purchase of fewer shares than if the dividend or distribution had
been paid in Common Shares issued by the Fund. The Plan Agent will use
all dividends and distributions received in cash to purchase Common
Shares in the open market on or shortly after the payment date, but in no
event later than the ex-dividend date for the next distribution. Interest
will not be paid on any uninvested cash payments.
You may withdraw from the Plan at any time by giving notice to the Plan Agent.
If you withdraw or the Plan is terminated, you will receive a certificate for
each whole share in your account under the Plan and you will receive a cash
payment for any fraction of a share in your account. If you wish, the Plan
Agent will sell your shares and send you the proceeds, minus brokerage
commissions.
The Plan Agent maintains all shareholders' accounts in the Plan and gives
written confirmation of all transactions in the accounts, including information
you may need for tax records. The Plan Agent will also furnish each person who
buys Common Shares with written instructions detailing the procedures for
electing not to participate in the Plan and to instead receive distributions in
cash. Common Shares in your account will be held by the Plan Agent in
non-certificated form. Any proxy you receive will include all Common Shares you
have received under the Plan.
There is no brokerage charge for reinvestment of your dividends or
distributions in Common Shares. However, all participants will pay a pro rata
share of brokerage commissions incurred by the Plan Agent when it makes open
market purchases.
Automatically reinvested dividends and distributions are taxed in the same
manner as cash dividends and distributions.
The Fund and the Plan Agent reserve the right to amend or terminate the Plan.
There is no direct service charge to participants in the Plan; however, the
Fund reserves the right to amend the Plan to include a service charge payable
by the participants. Additional information about the Plan may be obtained from
PFPC Inc., 400 Belleview Parkway, Wilmington, DE 19809, telephone number
1-800-331-1710.
OTHER INFORMATION:
Since June 29, 2001 (commencement of operations of the Funds), there has been
no: (i) material changes in the Funds' investment objectives or policies; (ii)
changes to the Funds' charter or by-laws; (iii) material changes in the
principal risk factors associated with investment in the Funds; or (iv) change
in the person primarily responsible for the day-to-day management of each
Fund's portfolio.
4.30.02 | PIMCO Municipal Income Funds Annual Report 27
BOARD OF TRUSTEES
STEPHEN J. TREADWAY, CHAIRMAN, PRESIDENT, TRUSTEE
1345 Avenue of the Americas
New York, NY 10105
Age: 54
Trustee since: 2001
Trustee/Director of 48 funds in Fund Complex
Trustee/Director of no funds outside of Fund Complex
Principal Occupation(s) During Past 5 Years: Managing Director of Allianz
Dresdner Asset Management of America L.P., and Managing Director and Chief
Executive Officer of PIMCO Funds Distributors LLC. Mr. Treadway serves as a
director/trustee and holds various executive officer positions in connection
with Allianz Dresdner Asset Management of America L.P.'s affiliated open and
closed-end mutual funds.
PAUL BELICA, TRUSTEE
1345 Avenue of the Americas
New York, NY 10105
Age: 80
Trustee since: 2001
Trustee of 6 funds in Fund Complex
Trustee of 2 funds outside of Fund Complex
Principal Occupation(s) During Past 5 Years: Trustee, Fixed Income SHares,
PIMCO Corporate Income Fund; Manager, Stratigos Fund, L.L.C., Whistler Fund,
L.L.C., Xanthus Fund, L.L.C., and Wynstone Fund, L.L.C.; Director, Student Loan
Finance Corp., Education Loans, Inc., Goal Funding, Inc., Surety Loan Funding,
Inc.; Formerly Advisor, Salomon Smith Barney, Inc.; Director, The Central
European Value Fund, Inc.; Deck House Inc., The Czech Republic Fund, Inc.
ROBERT E. CONNOR, TRUSTEE
1345 Avenue of the Americas
New York, NY 10105
Age: 68
Trustee since: 2001
Trustee/Director of 7 funds in Fund Complex
Trustee/Director of no funds outside of Fund Complex
Principal Occupation(s) During Past 5 Years: Trustee, Fixed Income SHares,
PIMCO Corporate Income Fund; Director, Municipal Advantage Fund Inc.; Corporate
Affairs Consultant; Formerly, Senior Vice President, Corporate Office, Salomon
Smith Barney Inc.
JOHN J. DALESSANDRO II, TRUSTEE
1345 Avenue of the Americas
New York, NY 10105
Age: 65
Trustee since: 2001
Trustee of 4 funds in Fund Complex
Trustee of no funds outside of Fund complex
Principal Occupation(s) During Past 5 Years: President and Director, J.J.
Dalessandro II Ltd., registered broker-dealer and member of the New York Stock
Exchange; Trustee, PIMCO Corporate Income Fund.
28 PIMCO Municipal Income Funds Annual Report | 4.30.02
HANS W. KERTESS, TRUSTEE
1345 Avenue of the Americas
New York, NY 10105
Age: 62
Trustee since: 2001
Trustee of 4 funds in Fund Complex
Trustee of no funds outside of Fund Complex
Principal Occupation(s) During Past 5 Years: Consultant, Dain Raucher Inc;
Trustee, PIMCO Corporate Income Fund. Formerly, Managing Director, Salomon
Brothers; Managing Director, Dain Raucher Inc.
R. PETER SULLIVAN III, TRUSTEE
1345 Avenue of the Americas
New York, NY 10105
Age: 65
Trustee since: 2002
Trustee of 4 funds in Fund Complex
Trustee of no funds outside of Fund Complex
Principal Occupation(s) During Past 5 Years: Trustee, PIMCO Corporate Income
Fund. Formerly, Managing Partner, Bear Wagner Specialists LLC (formerly, Wagner
Stott Mercator LLC), specialist firm on the New York Stock Exchange.
4.30.02 | PIMCO Municipal Income Funds Annual Report 29
PRIVACY POLICY
OUR COMMITMENT TO YOU
We consider customer privacy to be a fundamental aspect of our relationship
with clients. We are committed to maintaining the confidentiality, integrity,
and security of our current, prospective and former clients' personal
information. We have developed policies designed to protect this
confidentiality, while allowing client needs to be served.
OBTAINING PERSONAL INFORMATION
In the course of providing you with products and services, we may obtain
non-public personal information about you. This information may come from
sources such as account applications and other forms, from other written,
electronic or verbal correspondence, from your transactions, from your
brokerage or financial advisory firm, financial adviser or consultant, and/or
from information captured on our internet web sites.
RESPECTING YOUR PRIVACY
We do not disclose any personal or account information provided by you or
gathered by us to non-affiliated third parties, except as required or permitted
by law. As is common in the industry, non-affiliated companies may from time to
time be used to provide certain services, such as preparing and mailing
prospectuses, reports, account statements and other information, conducting
research on client satisfaction, and gathering shareholder proxies. We may also
retain non-affiliated companies to market our products and enter in joint
marketing agreements with other companies. These companies may have access to
your personal and account information, but are permitted to use the information
solely to provide the specific service or as otherwise permitted by law. We may
also provide your personal and account information to your brokerage or
financial advisory firm and/or to your financial adviser or consultant.
SHARING INFORMATION WITH THIRD PARTIES
We do reserve the right to disclose or report personal information to
non-affiliated third parties in limited circumstances where we believe in good
faith that disclosure is required under law, to cooperate with regulators or
law enforcement authorities, to protect our rights or property, or upon
reasonable request by any mutual fund in which you have chosen to invest. In
addition, we may disclose information about you or your accounts to a
non-affiliated third party at your request or if you consent in writing to the
disclosure.
SHARING INFORMATION WITH AFFILIATES
We may share client information with our affiliates in connection with
servicing your account or to provide you with information about products and
services that we believe may be of interest to you. The information we share
may include, for example, your participation in our mutual funds or other
investment programs, your ownership of certain types of accounts (such as
IRAs), or other data about your accounts. Our affiliates, in turn, are not
permitted to share your information with non-affiliated entities, except as
required or permitted by law.
IMPLEMENTATION OF PROCEDURES
We take seriously the obligation to safeguard your non-public personal
information. We have implemented procedures designed to restrict access to your
non-public personal information to our personnel who need to know that
information to provide products or services to you. To guard your non-public
personal information, physical, electronic, and procedural safeguards are in
place.
30 PIMCO Municipal Income Funds Annual Report | 4.30.02
TRUSTEES AND PRINCIPAL OFFICERS
Stephen J. Treadway
Chairman, President,
Principal Executive Officer & Trustee
Paul Belica
Trustee
Robert E. Connor
Trustee
John J. Dalessandro II
Trustee
Hans W. Kertess
Trustee
R. Peter Sullivan
Trustee
Mark V. McCray
Vice President
Newton B. Schott, Jr.
Vice President & Secretary
Brian S. Shlissel
Treasurer, Principal Financial & Accounting Officer
Michael B. Zuckerman
Assistant Secretary
INVESTMENT MANAGER
PIMCO Funds Advisors LLC
1345 Avenue of the Americas
New York, NY 10105
SUB-ADVISER
Pacific Investment Management Company LLC
840 Newport Center Drive
Newport Beach, CA 92660
TRANSFER AGENT, DIVIDEND PAYING
AGENT AND REGISTRAR
PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL
Ropes & Gray
One International Place
Boston, MA. 02210-2624
Quarterly information on the Funds is available on the PIMCO Funds website
(www.pimcofunds.com)
--------------------------------------------------------------------------------
PIMCO
FUNDS