SEMI-ANNUAL REPORT
10.31.02
PIMCO MUNICIPAL INCOME FUND
PIMCO CALIFORNIA MUNICIPAL INCOME FUND
PIMCO NEW YORK MUNICIPAL INCOME FUND
[PMF LOGO]
[PCQ LOGO]
[PNF LOGO]
CONTENTS
Chairman's Letter .............................................................1
Management Review and Outlook ...............................................2-3
Performance and Statistics ..................................................4-9
Schedules of Investments ..................................................10-22
Statements of Assets and Liabilities .........................................24
Statements of Operations .....................................................25
Statements of Changes in Net Assets .......................................26-27
Notes to Financial Statements .............................................28-31
Financial Highlights ......................................................32-33
Annual Shareholder Meeting ...................................................34
PIMCO
------------
ADVISORS
PIMCO MUNICIPAL INCOME FUNDS LETTER TO SHAREHOLDERS
December 12, 2002
Dear Shareholder:
The past six months have brought an onslaught of disheartening financial news.
Despite the market's recent upswing, disappointing corporate earnings and talk
of a double-dip recession have left many stock investors wondering where the
markets are headed next.
In the world of bonds, however, poor economic news can actually be good news, as
investors flee stocks and riskier securities and flock to the relative stability
of U.S. Treasuries and other high-quality fixed income securities. This
seemingly paradoxical relationship between bonds and the economy helps explain
why most bond sectors have continued their strong run over the past six months.
Municipal bonds fared particularly well in this environment, outperforming many
taxable bond investments. Accordingly, we are pleased to report that the PIMCO
Municipal Income Funds delivered strong absolute performance. The Funds'
portfolio manager achieved these results by adhering to PIMCO's time-tested
total return philosophy.
We certainly cannot predict what the next few months or years hold. But, as
always, we stand behind a few tried-and-true investment strategies, such as
maintaining a well-diversified portfolio and investing for the long-term.
If you have questions concerning this report or your investment, please contact
your financial advisor. You can also call PIMCO Advisors at 1-800-331-1710 or
visit our Web site at www.pimcoadvisors.com.
Thank you for choosing PIMCO Funds. We highly value your business.
Sincerely,
/s/ Stephen Treadway /s/ Brian S. Shlissel
Stephen Treadway Brian S. Shlissel
Chairman President, Chief Executive Officer
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. There is no guarantee that
these or any other investment techniques will be effective under all market
conditions. The credit quality of the investment in the portfolio does not apply
to the stability or safety of the Fund. Diversification does not ensure against
loss.
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 1
PIMCO MUNICIPAL INCOME FUNDS MANAGEMENT REVIEW & OUTLOOK
[PHOTOGRAPH OF MARK McCRAY]
MARK McCRAY
Fund Manager
The PIMCO Municipal Income Funds performed strongly during the six-month period
ended October 31, 2002, with the National, California and New York funds each
generating solid returns (based on common share NAV; see individual Fund pages
for complete performance information). Mark McCray, the Funds' portfolio
manager, provides insight into the municipal bond market and offers his outlook
and strategy going forward.
Q. HOW WOULD YOU CHARACTERIZE THE PAST SIX MONTHS IN THE MUNICIPAL BOND MARKET?
A. Flight to quality was the driving force in the municipal bond market during
the past six months, as investor concerns mounted over sluggish economic growth,
corporate accounting scandals and a potential war with Iraq. Treasury and
municipal yields fell sharply for most of the period, however, a stock market
rally during the last month of the period caused bonds to sell off. Municipals
performed well during the period, delivering solid tax-adjusted returns relative
to the overall bond market. Looking at the state markets, California
underperformed the national municipal bond market amid heavy new issuance. The
New York municipal market outperformed, with short- and intermediate-term bond
yields falling further than long-term alternatives.
Q. WHAT WERE THE TOP PERFORMING MUNICIPAL SECTORS?
A. Overall, high quality general obligation bonds performed the best, as yields
fell substantially. Within the revenue sector, high-quality utility revenue
bonds performed well. Insured bonds were strong performers across the municipal
market, as investors looked to avoid risk. In California, a high quality focus
proved beneficial, as investors preferred the stability offered by higher-rated
bonds. New York industrial revenue bonds performed well, due to reduced credit
premiums from advanced refundings and improving credit profiles.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. This update contains the
current opinions of the Funds' manager and does not represent a recommendation
of any particular security, strategy or investment product. Such opinion is
subject to change without notice.
2 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO MUNICIPAL INCOME FUNDS MANAGEMENT REVIEW & OUTLOOK
Q. WHAT IS YOUR OUTLOOK FOR THE ECONOMY AND THE MUNICIPAL BOND MARKET?
A. Looking ahead, we expect the modest U.S. recovery to continue, driven
primarily by the consumer and housing sectors. While the business sector has
begun the healing process, it is likely to remain weak in the months ahead.
Given the headwinds faced by the economy, we expect Federal Reserve policy to
remain accommodative. Within our investment universe, sluggish growth could
challenge municipal credits as tax revenues lag the economy: continued heavy
issuance could also weigh on the sector. However, the market should continue to
find support as investors are drawn to the attractive after-tax yields and
relative stability offered by high quality municipal issues. Increasing supply
remains our greatest concern within the state markets. California issuance is
expected to remain heavy as the state must finance power costs and balance its
budget. New York issuance is also anticipated to increase due to the passing of
the state's budget and the financing needs of state and local governments.
Q. IN THIS ENVIRONMENT, HOW DO YOU INTEND TO POSITION THE FUND?
A. We expect to maintain high overall quality given the weak fiscal situation
facing most municipal issuers. General obligation exposure among state and local
municipalities must be carefully managed given the expected increase in supply.
Finally, we intend to emphasize high-quality revenue bonds, which continue to
offer attractive risk-adjusted yields.
--------------------------------------------------------------------------------
Mr. McCray is responsible for municipal bond portfolios at PIMCO. Previously
Co-Head of Municipal Bond Trading at Goldman Sachs & Co., he has over 12 years
of investment experience.
--------------------------------------------------------------------------------
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 3
PIMCO MUNICIPAL INCOME FUND PERFORMANCE SUMMARY AND STATISTICS
SYMBOL: PMF
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:
$542.7 million (as of 10/31/02)
PORTFOLIO MANAGER:
Mark McCray
TOTAL RETURN (1)
For periods ended 10/31/02
Inception
6-months 1 year (6/29/01)
--------------------------------------------------------------------------------
On NAV 4.00% 3.13% 6.31%
--------------------------------------------------------------------------------
On Common Share Price 2.85% 6.12% 4.43%
--------------------------------------------------------------------------------
COMMON SHARE PRICE PERFORMANCE (WEEKLY)
For periods ended 10/31/02
Municipal Municipal
Income Fund Income Fund
at Market Price at NAV
6/29/01 14.31 15.10
14.32 15.00
14.42 15.04
14.57 15.01
14.59 15.05
14.69 15.15
14.82 15.16
14.97 15.58
14.84 15.34
14.99 15.08
14.90 15.05
14.94 15.06
14.48 14.40
14.57 14.98
14.87 15.05
14.65 14.96
14.69 14.88
14.64 14.84
14.92 14.95
15.08 14.93
14.54 14.93
14.37 14.90
14.45 15.00
13.98 14.75
13.92 14.99
13.96 14.20
13.97 13.87
14.05 14.60
14.38 14.48
14.44 14.72
14.23 14.67
14.32 14.86
14.41 14.95
14.35 14.96
14.53 14.83
14.48 14.92
14.09 14.70
13.97 14.76
13.89 14.44
13.91 14.30
14.10 14.47
14.20 14.45
14.06 14.28
14.22 14.60
14.29 14.60
14.13 14.63
13.97 14.64
14.17 14.65
14.29 14.79
14.36 14.88
14.44 14.85
14.45 14.80
14.42 14.75
14.49 14.95
14.48 14.98
14.57 15.10
14.66 14.94
14.54 15.02
14.54 15.06
14.50 15.05
14.43 14.92
14.51 14.96
14.74 15.04
14.68 15.00
14.83 15.00
14.83 15.11
14.91 15.11
14.75 14.99
14.18 14.69
14.10 14.14
10/31/02 14.30 14.62
MONTHLY DIVIDENDS PER COMMON SHARE
SIX MONTHS ENDED 10/31/02
May $0.08125
June $0.08125
July $0.08125
Aug. $0.08125
Sept. $0.08125
Oct. $0.08125
4 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO MUNICIPAL INCOME FUND PERFORMANCE SUMMARY AND STATISTICS
CREDIT QUALITY
--------------------------------------------------------------------
AAA 40%
--------------------------------------------------------------------
AA 12%
--------------------------------------------------------------------
A 34%
--------------------------------------------------------------------
BBB 7%
--------------------------------------------------------------------
BB 5%
--------------------------------------------------------------------
B 2%
--------------------------------------------------------------------
Weighted Average Quality AA-
--------------------------------------------------------------------
TOP FIVE STATES
--------------------------------------------------------------------
Illinois 15.9%
--------------------------------------------------------------------
Texas 12.6%
--------------------------------------------------------------------
Louisiana 8.2%
--------------------------------------------------------------------
Pennsylvania 6.1%
--------------------------------------------------------------------
Michigan 5.1%
--------------------------------------------------------------------
PORTFOLIO STATISTICS
--------------------------------------------------------------------
Market Price $14.62
--------------------------------------------------------------------
Net Asset Value $14.30
--------------------------------------------------------------------
Market Yield 6.67%
--------------------------------------------------------------------
Taxable Equivalent Yield (Federal Income Tax Rate)* 10.86%
--------------------------------------------------------------------
Fund Net Assets (millions) $542.7
--------------------------------------------------------------------
Average Effective Maturity (years) 13.41
--------------------------------------------------------------------
Average Duration (years) 10.76
--------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------
Healthcare Rev. 28%
--------------------------------------------------------------------
Other Rev. 20%
--------------------------------------------------------------------
Local General Obligations 12%
--------------------------------------------------------------------
Higher Education Rev. 7%
--------------------------------------------------------------------
Transportation Rev. 7%
--------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 1. Total return is
determined by subtracting the initial investment from the redeemable value and
dividing the remainder by the initial investment and expressing the result as a
percentage. The calculation assumes that all income dividends and capital gains
distributions by the Fund have been reinvested at prices obtained under the
Fund's dividend reinvestment plan. Total investment return does not reflect
broker commissions or sales charges. Total return for a period of less than one
year is not annualized. *Taxable equivalent rate represents the yield on a
taxable investment necessary to equal the after-tax yield of the Fund. The rate
shown highlights the value of owning shares that are exempt from taxes, and is
based on a federal tax rate of 38.6%. An investment in the Fund involves risk,
including the loss of principal. Investment return, price, yields and net asset
value will fluctuate with changes in market conditions. This data is provided
for information only and is not intended for trading purposes. A portion of the
income generated by the Fund may be subject to federal, state and local taxes,
and may at times be subject to the alternative minimum tax (AMT). Closed-end
funds, unlike open-end funds, are not continuously offered. There is a one-time
public offering and once issued, shares of closed-end funds are sold in the open
market through a stock exchange. Net asset value (NAV) per common share is total
assets less total liabilities divided by the number of common shares
outstanding. Duration is a measure of the Fund's price sensitivity expressed in
years. The credit quality of the investment in the portfolio does not apply to
the stability or safety of the Fund. Certain securities are not rated by a
nationally recognized rating agency. In these circumstances, the Fund's
Sub-Adviser assigns a rating to these securities based on their analysis of the
issuers credit quality. Holdings are subject to change.
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 5
PIMCO CALIFORNIA MUNICIPAL INCOME FUND PERFORMANCE SUMMARY AND STATISTICS
SYMBOL:
PCQ
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:
$400.9 million (as of 10/31/02)
PORTFOLIO MANAGER:
Mark McCray
TOTAL RETURN (1)
For periods ended 10/31/02
Inception
6-months 1 year (6/29/01)
--------------------------------------------------------------------------------
On NAV 4.53% 1.84% 5.23%
--------------------------------------------------------------------------------
On Common Share Price 3.40% 2.80% 4.68%
--------------------------------------------------------------------------------
COMMON SHARE PRICE PERFORMANCE (WEEKLY)
For periods ended 10/31/02
California California
Municipal Municipal
Income Fund Income Fund
at Market Price at NAV
6/29/01 14.30 15.10
14.29 15.03
14.36 15.01
14.46 15.03
14.46 15.09
14.51 15.34
14.65 15.25
14.84 15.88
14.78 15.50
14.90 15.33
14.87 15.31
14.94 15.31
14.52 14.95
14.67 15.00
14.90 15.11
14.76 15.10
14.77 15.31
14.76 15.23
14.92 15.35
15.09 15.60
14.70 15.09
14.53 15.00
14.49 15.39
14.07 15.10
13.99 15.09
13.96 14.60
14.01 14.70
14.06 14.86
14.35 15.02
14.36 15.06
14.22 15.05
14.28 15.02
14.35 15.18
14.31 15.28
14.40 15.06
14.36 15.20
14.00 15.20
13.83 14.90
13.65 14.70
13.63 14.50
13.85 14.44
13.98 14.36
13.86 14.68
14.03 14.95
14.09 14.90
13.96 14.97
13.81 14.70
13.96 14.57
14.07 14.90
14.15 14.76
14.20 14.75
14.21 14.82
14.24 14.85
14.34 14.96
14.38 14.85
14.41 14.78
14.49 14.89
14.32 15.00
14.32 15.02
14.28 15.13
14.23 15.05
14.34 15.20
14.57 15.14
14.64 15.35
14.78 15.10
14.84 15.05
14.83 15.06
14.64 14.95
13.97 14.84
13.90 14.70
10/31/02 14.17 14.73
MONTHLY DIVIDENDS PER COMMON SHARE
SIX MONTHS ENDED 10/31/02
May $0.077
June $0.077
July $0.077
Aug. $0.077
Sept. $0.077
Oct. $0.077
6 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO CALIFORNIA MUNICIPAL INCOME FUND PERFORMANCE SUMMARY AND STATISTICS
CREDIT QUALITY
--------------------------------------------------------------------
AAA 46%
--------------------------------------------------------------------
AA 6%
--------------------------------------------------------------------
A 15%
--------------------------------------------------------------------
BBB 16%
--------------------------------------------------------------------
BB 17%
--------------------------------------------------------------------
Weighted Average Quality A+
--------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------
Healthcare Rev. 21%
--------------------------------------------------------------------
Other Rev. 21%
--------------------------------------------------------------------
Local General Obligations 17%
--------------------------------------------------------------------
State General Obligations 11%
--------------------------------------------------------------------
Water & Sewer Rev. 10%
--------------------------------------------------------------------
PORTFOLIO STATISTICS
--------------------------------------------------------------------
Market Price $14.73
--------------------------------------------------------------------
Net Asset Value $14.17
--------------------------------------------------------------------
Market Yield 6.27%
--------------------------------------------------------------------
Taxable Equivalent Yield* 11.26%
--------------------------------------------------------------------
Net Assets (millions) $400.9
--------------------------------------------------------------------
Average Effective Maturity (years) 13.52
--------------------------------------------------------------------
Average Duration (years) 10.76
--------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 1. Total return is
determined by subtracting the initial investment from the redeemable value and
dividing the remainder by the initial investment and expressing the result as a
percentage. The calculation assumes that all income dividends by the Fund have
been reinvested at prices obtained under the Fund's dividend reinvestment plan.
Total investment return does not reflect broker commissions or sales charges.
Total return for a period of less than one year is not annualized. *Taxable
equivalent rate represents the yield on a taxable investment necessary to equal
the after-tax yield of the Fund. The rate shown highlights the value of owning
shares that are exempt from taxes, and is based on a combined federal and state
tax rate of 44.31%. An investment in the Fund involves risk, including the loss
of principal. Investment return, price, yields and net asset value will
fluctuate with changes in market conditions. This data is provided for
information only and is not intended for trading purposes. A portion of the
income generated by the Fund may be subject to federal, state and local taxes,
and may at times be subject to the alternative minimum tax (AMT). It's important
to note that a fund concentrating in a single state is subject to greater risk
of adverse conditions and regulatory changes than a fund with broader
geographical diversification. Closed-end funds, unlike open-end funds, are not
continuously offered. There is a one-time public offering and once issued,
shares of closed-end funds are sold in the open market through a stock exchange.
Net asset value (NAV) per common share is total assets less total liabilities
divided by the number of common shares outstanding. Duration is a measure of the
Fund's price sensitivity expressed in years. The credit quality of the
investment in the portfolio does not apply to the stability or safety of the
Fund. Certain securities are not rated by a nationally recognized rating agency.
In these circumstances, the Fund's Sub-Adviser assigns a rating to these
securities based on their analysis of the issuers credit quality. Holdings are
subject to change.
10.31.02 | PIMCO Municipal Income Funds Semi-Annual 7
PIMCO NEW YORK MUNICIPAL INCOME FUND PERFORMANCE SUMMARY AND STATISTICS
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 INVESTMENTS:
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:
$164.1 million (as of 10/31/02)
PORTFOLIO MANAGER:
Mark McCray
TOTAL RETURN (1)
For periods ended 10/31/02
Inception
6-months 1 year (6/29/01)
--------------------------------------------------------------------------------
On NAV 3.25% 2.97% 4.14%
--------------------------------------------------------------------------------
On Common Share Price 3.97% 4.61% 2.69%
--------------------------------------------------------------------------------
COMMON SHARE PRICE PERFORMANCE (WEEKLY)
For periods ended 10/31/02
New York New York
Municipal Municipal
Income Fund Income Fund
at Market Price at NAV
6/29/01 14.30 15.00
14.33 15.09
14.38 15.10
14.46 15.07
14.55 15.01
14.59 15.06
14.67 15.20
14.81 15.40
14.73 15.40
14.79 15.18
14.71 15.33
14.74 15.25
14.27 14.25
14.31 14.89
14.57 14.90
14.39 14.81
14.36 14.70
14.25 14.75
14.56 14.83
14.80 15.12
14.19 14.96
13.97 14.88
14.11 14.70
13.58 14.62
13.54 14.60
13.53 13.70
13.51 13.70
13.61 13.95
14.02 14.44
14.13 14.76
13.89 14.80
13.98 14.73
14.14 14.73
14.10 14.80
14.33 14.70
14.28 14.77
13.87 14.55
13.64 14.50
13.58 13.93
13.60 14.17
13.81 14.18
13.92 14.25
13.78 14.31
13.94 14.27
13.96 14.37
13.78 14.34
13.55 14.00
13.71 13.96
13.85 14.10
13.90 14.33
13.99 14.31
13.98 14.32
13.93 14.27
14.02 14.44
14.02 14.90
14.11 14.70
14.17 14.58
14.06 15.00
14.05 14.80
14.03 14.75
13.97 14.67
14.05 14.67
14.28 14.70
14.24 14.63
14.39 14.55
14.46 14.66
14.50 14.75
14.33 14.60
13.73 14.18
13.67 14.12
10/31/02 13.92 14.30
MONTHLY DIVIDENDS PER COMMON SHARE
SIX MONTHS ENDED 10/31/02
May $0.075
June $0.075
July $0.075
Aug. $0.075
Sept. $0.075
Oct. $0.075
8 | PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO NEW YORK MUNICIPAL INCOME FUND PERFORMANCE SUMMARY AND STATISTICS
CREDIT QUALITY
--------------------------------------------------------------------
AAA 51%
--------------------------------------------------------------------
AA 21%
--------------------------------------------------------------------
A 20%
--------------------------------------------------------------------
BBB 7%
--------------------------------------------------------------------
BB 1%
--------------------------------------------------------------------
Weighted Average Quality AA
--------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------
Higher Education Rev. 33%
--------------------------------------------------------------------
Other Rev. 21%
--------------------------------------------------------------------
Water & Sewer Rev. 15%
--------------------------------------------------------------------
Miscellaneous 7%
--------------------------------------------------------------------
Transportation 7%
--------------------------------------------------------------------
PORTFOLIO STATISTICS
--------------------------------------------------------------------
Market Price $14.30
--------------------------------------------------------------------
Net Asset Value $13.92
--------------------------------------------------------------------
Market Yield 6.29%
--------------------------------------------------------------------
Taxable Equivalent Yield* 11.00%
--------------------------------------------------------------------
Fund Net Assets (millions) $164.1
--------------------------------------------------------------------
Average Effective Maturity (years) 13.81
--------------------------------------------------------------------
Average Duration (years) 10.48
--------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 1. Total return is
determined by subtracting the initial investments from the redeemable value and
dividing the remainder by the initial investment and expressing the result as a
percentage. The calculation assumes that all income dividends and capital gains
distributions by the Fund have been reinvested at prices obtained under the
Fund's dividend reinvestment plan. Total investment return does not reflect
broker commissions or sales charges. Total return for a period of less than one
year is not annualized. *Taxable equivalent rate represents the yield on a
taxable investment necessary to equal the after-tax yield of the Fund. The rate
shown highlights the value of owning shares that are exempt from taxes, and is
based on a combined federal and state tax rate of 42.81%. An investment in the
Fund involves risk, including the loss of principal. Investment return, price,
yields and net asset value will fluctuate with changes in market conditions.
This data is provided for information only and is not intended for trading
purposes. A portion of the income generated by the Fund may be subject to
federal, state and local taxes, and may at times be subject to the alternative
minimum tax (AMT). It's important to note that a fund concentrating in a single
state is subject to greater risk of adverse conditions and regulatory changes
than a fund with broader geographical diversification. Closed-end funds, unlike
open-end funds, are not continuously offered. There is a one-time public
offering and once issued, shares of closed-end funds are sold in the open market
through a stock exchange. Net asset value (NAV) per common share is total assets
less total liabilities divided by the number of common shares outstanding.
Duration is a measure of the Fund's price sensitivity expressed in years. The
credit quality of the investment in the portfolio does not apply to the
stability or safety of the Fund. Certain securities are not rated by a
nationally recognized rating agency. In these circumstances, the Fund's
Sub-Adviser assigns a rating to these securities based on their analysis of the
issuers credit quality. Holdings are subject to change.
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 9
PIMCO MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS & NOTES-88.3%
------------------------------------------------------------------------------------------------------------
ALABAMA--2.0%
$ 2,500 Birmingham Baptist Med. Ctr., Baptist Health Syst.,
Ser. A, 5.875%, 11/15/24 A3/NR $ 2,546,400
8,000 Huntsville Health Care Auth., Ser. A, 5.75%, 6/1/31 A2/NR 8,069,920
------------
10,616,320
============
ALASKA--1.0%
6,000 Northern Tobacco Securitization Corp., 5.50%, 6/1/29 Aa3/A 5,529,060
------------
ARIZONA--0.3%
2,000 Apache Cnty. Pollution Control Rev., Tucson Elec. Power Co.,
5.875%, 3/1/33 Ba3/B+ 1,805,940
------------
COLORADO--2.2%
3,000 Denver Health & Hosp. Auth. Healthcare Rev.,
Ser. A, 5.375%-6.00%, 12/1/23-12/1/28 Baa2/BBB+ 2,868,890
12,400 Liberty Heights Health Auth. Retirement Facs. Rev.,
zero coupon, 7/15/24 NR/AAA 3,936,132
4,965 Northwest Pkwy. Pub. Hwy. Auth., Ser. D, 7.125%, 6/15/41 Ba1/BB+ 5,085,054
------------
11,890,076
============
CONNECTICUT--0.2%
1,000 State Dev. Auth. Pollution Control Rev., Conn. Light & Power,
5.85%, 9/1/28 A3/BBB 1,043,760
------------
DISTRICT OF COLUMBIA--1.2%
6,555 Tobacco Settlement Fin. Corp., 6.25%, 5/15/24 A1/A 6,556,835
------------
FLORIDA--1.7%
9,000 Highlands Cnty. Health Fac. Auth. Rev., Adventist Health Syst.,
Ser. A, 6.00%, 11/15/31 A3/A- 9,323,010
------------
GEORGIA--2.1%
10,000 Muni. Elec. Auth. Power Rev., Ser. Z, 5.50%, 1/1/20 (MBIA) Aaa/AAA 11,021,500
------------
ILLINOIS--13.2%
5,215 Champaign Cnty. School Dist., GO, 5.375%, 1/1/15-1/1/16 (FGIC) Aaa/AAA 5,680,030
10,115 Chicago Education Board GO, Ser. A., zero coupon, 12/1/31 Aaa/AAA 2,030,687
9,080 Chicago GO, Ser. A, 5.375%, 1/1/34 (FGIC) Aaa/AAA 9,304,004
2,000 Chicago Water Rev., 5.25%, 11/1/27 (FGIC) Aaa/AAA 2,048,120
6,260 Dev. Fin. Auth. Hosp. Rev., Adventist Health Syst.,
5.50%-5.65%, 11/15/24-11/15/29 A3/A- 6,053,563
5,000 Educational Fac. Auth. Rev., Chicago Univ., Ser. A, 5.25%, 7/1/41 Aa1/AA 5,052,450
1,115 Educational Fac. Auth. Rev., Midwestern Univ.,
Ser. B, 5.50%, 5/15/18 NR/BBB+ 1,129,361
3,000 Health Fac. Auth. Rev., Decatur Memorial Hosp., 5.75%, 10/1/24 A2/A 3,037,320
500 Health Fac. Auth. Rev., Midwest Physician Group Ltd.,
5.50%, 11/15/19 NR/BBB- 419,920
10 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
---------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS & NOTES (CONTINUED)
---------------------------------------------------------------------------------------------------------
ILLINOIS (CONCLUDED)
$ 5,425 Health Fac. Auth. Rev., Silver Cross Hosp., 5.50%, 8/15/25 NR/A- $ 5,293,824
15,690 Lake Cnty. High School Dist., GO, Ser. B,
zero coupon, 2/1/19-2/1/22 (FGIC) Aaa/AAA 6,225,649
1,215 Northern Univ. Rev., Auxilary Fac. Syst., 5.00%, 4/1/16 (FGIC) Aaa/NR 1,271,801
7,345 Regional Transportation Auth., Ser. B, 5.50%, 6/1/23 (FGIC) Aaa/AAA 7,941,781
2,500 State GO, 5.375%, 8/1/14 (MBIA) Aaa/AAA 2,747,375
3,000 State Sales Tax Rev., 5.125%, 6/15/20 Aa2/AAA 3,085,020
5,000 Univ. Rev., Auxiliary Fac. Syst., Ser. B, 5.25%, 4/1/32 (FGIC) Aaa/AAA 5,098,450
4,000 Winnebago Boone ETC Cntys., Rock Valley Community College,
5.30%, 10/1/18 (FGIC) Aaa/NR 4,213,440
-----------
70,632,795
===========
INDIANA--1.7%
6,500 Carmel School Bldg. Corp., 5.00%, 7/15/22 (MBIA) NR/AAA 6,524,310
2,725 Richland Beanblossom School Bldg. Corp., 5.00%, 1/15/22 (FGIC) Aaa/AAA 2,734,347
-----------
9,258,657
===========
KANSAS--3.8%
Wichita Hosp. Rev.,
5,000 5.625%, 11/15/31, Ser. III NR/A+ 5,113,350
14,370 6.25%, 11/15/24, Ser. XI NR/A+ 15,374,894
-----------
20,488,244
===========
LOUISIANA--8.2%
10,000 Local Gov't Environmental Fac., Community Dev. Auth. Rev.,
6.55%, 9/1/25 NR/A 11,090,300
7,345 State GO, Ser. A, 5.00%, 4/1/19 (FGIC) Aaa/AAA 7,555,655
27,890 Tobacco Settlement Fin. Corp. Rev, 5.875%, 5/15/39 A1/A 25,323,562
-----------
43,969,517
===========
MARYLAND--0.7%
3,500 Baltimore Water Proj. Rev., Ser. A., 5.125%, 7/1/42 (FGIC). Aaa/AAA 3,532,935
-----------
MICHIGAN--4.8%
2,000 Detroit GO, Ser. A-1, 5.375%, 4/1/15-4/1/17 (MBIA) Aaa/AAA 2,170,010
5,650 Forest Hills Pub. School GO, 5.25%, 5/1/18 Aa2/NR 5,953,575
3,000 Mount Clemens Community School Dist., 5.00%, 5/1/31 AaaAAA 2,968,500
50 Royal Oak Hosp. Fin. Auth., William Beaumont Hosp.,
Ser. M, 5.25%, 11/15/35 (MBIA) Aaa/AAA 50,717
4,000 State Health Fac. Auth. Rev., Detroit Med. Ctr., 6.25%, 8/15/13 Baa3/BBB- 3,916,800
3,000 State Strategic Oblig. Rev., Detroit Edison Co., 5.45%, 9/1/29 A3/A- 3,003,900
3,000 Taylor Tax lncrement Fin. Auth., 5.375%, 5/1/17 (FSA) Aaa/AAA 3,218,490
6,270 Wayne Charter Cnty. Airport Fac. Rev., Northwest Airlines, Inc.,
6.75%, 12/1/15 NR/NR 4,529,824
-----------
25,811,816
===========
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 11
PIMCO MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
--------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS & NOTES (CONTINUED)
--------------------------------------------------------------------------------------------------------
MINNESOTA--0.6%
$ 3,000 Agricultural & Econ. Dev. Board Rev., Health Care Syst., Ser. A,
6.375%, 11/15/29 A2/A $ 3,189,150
-----------
MISSOURI--0.5%
2,500 Interstate 470 & 350 Trans. Dev., Motranson Rev.,
6.35%, 5/1/22 NR/NR 2,512,600
-----------
NEVADA--1.5%
3,000 Clark Cnty. Airport Rev., Ser. B, 5.25%, 7/1/34 (FGIC) Aaa/AAA 3,035,160
4,250 Truckee Meadows Water Auth. Rev., Ser. A, 5.25%, 7/1/34 (FSA) Aaa/AAA 4,299,810
815 Washoe Cnty. Improvement Dist. No. 23, 6.50%, 11/1/17 NR/NR 835,571
-----------
8,170,541
===========
NEW HAMPSHIRE--0.6%
3,000 State Bus. Fin. Auth. Pollution Control Rev., Conn. Light & Power
Co., 5.85%, 12/1/22 A3/BBB 3,053,970
-----------
NEW JERSEY--3.9%
2,105 Camden Cnty. Improvement Auth. Rev., Cooper Health Syst.,
5.60%-6.00%, 2/15/07-2/15/27 Ba3/NR 1,774,950
3,000 Economic Dev. Auth. Rev., Arbor Glen, Ser. A, 5.875%, 5/15/16 NR/NR 2,650,410
16,550 Economic Dev. Auth. Rev., Kapkowski Landfill Proj.,
5.75%, 4/1/31 Baa3/NR 16,343,621
-----------
20,768,981
===========
NEW MEXICO--0.5%
2,500 Farmington Pollution Control Rev., Public Service Co., 5.80%,
4/1/22 Baa3/BBB- 2,499,850
-----------
NEW YORK--0.6%
2,875 Westchester Cnty. Health Care Corp. Rev.,
Ser. A, 5.875%, 11/1/25 A3/A 3,033,182
-----------
NORTH CAROLINA--0.6%
3,000 Fin. Agy. Rev., Duke Univ. Proj., Ser. A, 5.125%, 10/1/41 Aa1/AA+ 3,024,390
-----------
OHIO--1.3%
5,065 Lorain Cnty. Hosp. Rev., Catholic Healthcare Partners,
5.625%-5.75%, 10/1/17-10/1/18 A1/AA- 5,348,919
1,235 State Turnpike Rev., 5.50%, 2/15/15 Aa3/AA 1,358,883
-----------
6,707,802
===========
PENNSYLVANIA--6.1%
7,280 Allegheny Cnty. Hosp. Dev. Auth. Rev., Ser. B, 9.25%, 11/15/30 B1/B+ 7,924,862
1,000 Allegheny Cnty. Indl. Dev. Auth. Rev., USX Corp.,
5.60%, 9/1/30 Baa1/BBB+ 971,110
1,095 Allegheny Cnty. Port Auth. Rev., 5.25%, 3/1/20 (FGIC) Aaa/AAA 1,141,647
2,575 Delaware Cnty. Auth. College Rev., Neumann College,
5.80%, 10/1/17 NR/BBB- 2,574,845
12 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
-----------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS & NOTES (CONTINUED)
-----------------------------------------------------------------------------------------------------------
PENNSYLVANIA (CONCLUDED)
$ 1,000 Philadelphia Auth. Indl. Rev., Franklin Institute, 5.20%, 6/15/26 Baa2/NR $ 934,260
4,610 Philadelphia Hosp. & Higher Education Fac. Hosp. Rev., Temple
Univ. Hosp., Ser. A, 6.625%, 11/15/23 Baa2/BBB 4,669,562
6,200 State Higher Educational Fac. Auth. Rev., UPMC Health Syst.,
Ser. A, 6.00%, 1/15/31 NR/A+ 6,407,204
8,225 State Turnpike, Oil Franchise Tax Rev., Ser. A, 4.75%, 12/1/27
(AMBAC) Aaa/AAA 7,955,467
-----------
32,578,957
===========
RHODE ISLAND--3.2%
18,000 Tobacco Settlement Fin. Corp. Rev, Ser. A, 6.25%, 6/1/42 A1/A 17,190,000
-----------
SOUTH CAROLINA--4.5%
5,500 Greenwood Cnty. Hosp. Rev., Self Memorial Hosp.,
5.50%, 10/1/21-10/1/26 A2/A+ 5,528,455
3,000 Jobs Economic Dev. Auth., Hosp. Facs. Rev., Georgetown
Memorial Hosp., 5.375%, 2/1/30 NR/AA 3,019,470
15,600 Tobacco Settlement Rev., Ser. B, 6.375%, 5/15/30 A1/A 15,331,524
-----------
23,879,449
===========
TENNESSEE--3.3%
4,000 Knox Health Educational & Housing Fac Rev., Baptist Health
Syst., 6.375%, 4/15/22 Baa2/NR 4,077,680
9,320 Memphis Health Educational & Housing Fac., Wesley
Housing Corp., 6.95%, 1/1/20++ NR/NR 9,439,855
3,510 Shelby Cnty., Ser. B, 4.50%, 11/1/04 Aa2/AA+ 3,694,345
-----------
17,211,880
===========
TEXAS--9.9%
5,000 Austin Convention Enterprises Inc., Ser. B, 5.75%, 1/1/32 Aa3/A+ 5,224,450
4,000 Austin Water & Wastewater Syst. Rev.,
Ser. A & B, 5.25%, 5/15/31 (FSA) Aaa/AAA 4,049,280
2,935 Bell Cnty. Health Fac. Dev. Corp., Buckner Retirement Fac.,
5.25%, 11/15/19 NR/A- 2,908,879
2,865 Corpus Christi Refin. & Improvement GO, 5.375%, 3/1/18 (FSA) Aaa/AAA 3,041,312
3,680 Duncanville Indpt. School Dist., Ser. B, 5.25%, 2/15/32 Aaa/AAA 3,722,798
5,000 Harris Cnty. Health Fac. Dev. Corp., Christus Health,
Ser. A, 5.375%, 7/1/29 (MBIA) Aaa/AAA 5,066,900
7,000 Harris Cnty. Health Fac. Dev. Corp., Memorial Hermann
Healthcare, 6.375%, 6/1/29 A3/A- 7,418,670
1,840 Houston Water Conveyance Syst., CP. Ser. J, 6.25%, 12/15/12 (AMBAC) Aaa/AAA 2,225,774
2,000 Mansfield Indpt. School Dist. GO, 5.25%, 2/15/23 Aaa/AAA 2,040,180
4,380 Southlake Parks Dev. Corp., Sales Tax Rev., 5.60%, 8/15/31 (AMBAC) Aaa/AAA 4,549,988
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 13
PIMCO MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
-----------------------------------------------------------------------------------------------------------
MUNICIPAL NOTES & BONDS (CONCLUDED)
-----------------------------------------------------------------------------------------------------------
TEXAS (CONCLUDED)
$ 4,530 State Water Financial Assistance 5.30%, 8/1/18, Ser. A Aa1/AA $ 4,791,607
7,450 Water Dev. Board Rev., 5.125%, 7/15/18 Aaa/AAA 7,674,469
------------
52,714,307
============
UTAH--1.3%
7,000 Salt Lake Cnty. Hosp. Rev., IHC Health Services Inc.,
5.125%, 2/15/33 (AMBAC) Aaa/AAA 7,002,030
-------------
WASHINGTON--2.7%
3,120 Cowlitz Cnty. School Dist. GO, 5.625%, 12/1/14-12/1/16 (FSA) Aaa/NR 3,448,760
5,000 Kent GO, 5.375%, 12/1/20 (MBIA) Aaa/AAA 5,250,550
5,420 King Cnty. School Dist. GO, Ser. A, 5.25%, 12/1/21 (MBIA) Aaa/AAA 5,581,408
-------------
14,280,718
=============
WISCONSIN--4.1%
14,785 Badger Tobacco Asset Corp., 5.75%-6.00%, 6/1/12-6/1/17 A1/A 14,816,346
1,070 Hortonville School Dist. GO, 5.25%, 4/1/18 (AMBAC) Aaa/NR 1,116,427
3,515 State GO, 5.00%, 5/1/22 (FGIC) Aaa/AAA 3,506,318
2,230 State Health & Educational Fac. Auth. Rev., Kenosha Hosp.
& Med. Ctr., 5.625%, 5/15/29 NR/A 2,230,625
-------------
21,669,716
=============
Total Municipal Bonds & Notes (cost-$465,475,118) 470,967,988
=============
-----------------------------------------------------------------------------------------------------------
SHORT-TERM VARIABLE RATE DEMAND NOTES***--11.0%
-----------------------------------------------------------------------------------------------------------
HAWAII--0.7%
3,468 Honolulu City & Cnty. Wastewater Syst. Rev., Ser. 400, 7.77%,
11/7/02 (FGIC)++ Aaa/NR 3,493,368
-------------
ILLINOIS--2.7%
7,253 Cook Cnty. GO, Ser. 458, 7.84%, 11/7/02++ Aaa/NR 7,252,210
6,900 Educational Fac. Auth. Rev., 8.15%, 11/8/02++ NR/AA 7,033,860
-------------
14,286,070
=============
MASSACHUSETTS--1.0%
5,000 State Health & Educational Fac. Auth. Rev., 9.48%, 11/8/02++ NR/NR 5,420,300
-------------
MICHIGAN--0.3%
1,750 Holt Public Schools GO, 1.85%, 11/7/02 NR/AAA 1,750,000
-------------
NEVADA--1.3%
7,500 Clark Cnty. Passenger Fac. Change Rev., Ser. 343, 7.27%,
11/7/02 (MBIA)++ Aaa/AAA 6,978,600
-------------
NEW YORK--1.2%
6,500 City Muni. Water Auth. Rev., 7.92%, 11/8/02++ NR/AA 6,639,100
-------------
NORTH CAROLINA--0.2%
1,000 Guilford Cnty. GO, Ser. C, 1.85%, 11/6/02 Aa1/AAA 1,000,000
-------------
14 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
-----------------------------------------------------------------------------------------------------------
SHORT-TERM VARIABLE RATE DEMAND NOTES*** (CONCLUDED)
-----------------------------------------------------------------------------------------------------------
TEXAS--2.7%
$ 4,250 Harris Cnty. Health Fac. Dev. Corp., 8.65% 11/8/02++ NR/AA $ 4,199,000
8,988 Harris Cnty. Health Fac. Dev. Corp., Ser. 357, 8.59%, Aaa/NR 9,228,006
11/7/02 (MBIA)++
1,000 Houston Water & Sewer Syst. Rev., Ser. 495, 8.34%, 11/7/02 (FGIC)++ NR/AAA 1,022,200
------------
14,449,206
============
WASHINGTON--0.9%
4,500 Seattle GO, Ser. 348, 8.02%, 11/7/02++ Aa1/NR 4,648,140
------------
Total Short-Term Variable Rate Demand Notes (cost-$54,018,103) 58,664,784
============
-----------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS--0.7%
-----------------------------------------------------------------------------------------------------------
1,210 1.64%-1.63%, 11/29/02+ 1,208,625
2,695 1.65%-1.64%, 11/14/02+ 2,693,588
------------
Total U.S. Treasury Bills (cost-$3,901,933) 3,902,213
============
TOTAL INVESTMENTS (cost-$523,395,154+)-100.0% $533,534,985
============
-----------------------------------------------------------------------------------------------------------
+ The cost basis of securities for federal income tax purposes is
$523,395,154. Aggregate gross unrealized appreciation for securities in
which there is an excess of value over tax cost is $15,951,249; aggregate
gross unrealized depreciation for securities in which there is an excess of
tax cost over value is $5,811,418; net unrealized appreciation for federal
income tax purposes is $10,139,831.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS |
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 15
PIMCO CALIFORNIA MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
-----------------------------------------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL BONDS & NOTES--87.5%
-----------------------------------------------------------------------------------------------------------------
$ 1,000 ABAG Fin. Auth. for Nonprofit Corps., CP, 5.375%, 2/15/19 NR/BBB+ $ 972,960
1,000 ABAG Fin. Auth. for Nonprofit Corps., Ser. A, Rev.,
5.375%, 11/15/25 NR/A+ 1,024,530
2,745 ABC Unified School Dist., GO, zero coupon, 8/1/26-8/1/27 (FGIC) Aaa/AAA 743,101
1,385 Alvord Unified School Dist., GO, Ser. C, 5.375%, 8/1/29 (FSA) Aaa/NR 1,436,771
1,650 Apple Valley, CP, 5.375%, 6/1/21 NR/A+ 1,705,423
2,000 Baldwin Park Monrovia School Facs., Grant Financing Auth.,
5.00%, 10/1/36 NR/AAA 2,001,300
400 Beverly Hills Public Fin. Auth. Lease, Rev., 5.65%, 6/1/15 (MBIA) Aaa/AAA 414,012
6,405 Campbell Union High School Dist., GO, 5.50%, 8/1/30 (FSA) Aaa/NR 6,768,292
2,250 Capistrano Unified School Dist., Community Fac. Dist., Special
Tax, 5.75%, 9/1/29 NR/NR 2,274,592
8,250 Carson Improvement Board Act 1915, Special Assessment,
6.35%-6.375%, 9/2/23-9/2/31 NR/NR 8,561,825
5,250 Central JT Powers Health Fin. Auth., CP, 5.75%, 2/1/31 Baa1/BBB+ 5,283,127
2,750 Contra Costa Cnty., Public Fin. Auth., Tax Allocation Rev.,
5.125%, 8/1/19 NR/BBB 2,711,802
2,750 CSUCI Fin. Auth. Rev., Ser. A, 5.00%, 9/1/31 (MBIA) Aaa/AAA 2,773,237
3,635 Cucamonga Cnty. Water Dist., CP, 5.125%, 9/1/35 (FGIC) Aaa/AAA 3,702,793
1,000 Educational Fac. Auth. Rev., 5.75%, 12/1/30 Baa3/NR 1,021,950
25,215 El Monte, CP, 4.75%-5.25%, 6/1/30-1/1/34 (AMBAC) Aaa/AAA 25,228,536
10,000 Foothill Eastern Corridor Agcy., Toll Road Rev., zero coupon,
1/15/33-1/15/34 Baa3/BBB- 1,601,650
9,170 Fremont Community Fac. Dist., Special Tax.,
6.00%-6.30%, 9/1/18-9/1/31 NR/NR 9,375,222
Health Fac. Fin. Auth. Rev.,
4,000 5.00%, 7/1/18-7/1/28 Ser. A Baa2/BBB 3,732,660
5,315 5.125%, 7/1/18 NR/A- 5,311,811
3,000 5.25%, 10/1/14 Ser. B A3/A 3,130,560
9,025 Irvine Improvement Board Act 1915, Special Assessment,
5.80%-5.90%, 9/2/18-9/2/23 NR/NR 9,178,969
15,000 LA Quinta Redev. Agcy., Tax Allocation,
5.00%-5.125%, 9/1/21-9/2/32 (AMBAC) Aaa/AAA 15,206,110
1,600 Lincoln Public Fin. Auth., Rev., 6.125%, 9/2/27 NR/NR 1,614,480
6,250 Los Angeles Cnty. Metropolitan Transportation Auth. Rev., Sales
Tax Rev., Ser. B 4.75%, 7/1/28 Aaa/AAA 6,060,250
845 Los Angeles Community Redev. Agcy., Ser. B, Tax Allocation,
5.875%-6.00%, 9/1/26-9/1/31 NR/NR 809,066
3,250 Los Angeles Unified School Dist., GO, Ser. E, 5.125%, 7/1/21 Aaa/AAA 3,348,377
13,000 Los Angeles Water & Power Rev., Ser. A-A-1, 5.25%, 7/1/21 (FSA) Aaa/AAA 13,521,560
1,000 Menifee Union School Dist., Special Tax, 6.40%, 9/1/31 NR/NR 1,020,600
2,665 Merced Irrigation Dist. Elec. Syst. Rev., 6.50%, 9/1/22 Baa3/NR 2,713,103
16 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO CALIFORNIA MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
-----------------------------------------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL BONDS & NOTES (CONTINUED)
-----------------------------------------------------------------------------------------------------------------
$ 3,500 Metropolitan Water Dist., Waterworks Rev., Ser. A, 5.00%, 7/1/26 Aa2/AA $ 3,518,585
5,820 Montclair Redev. Agcy., Tax Allocation, 5.30%, 10/1/30 (MBIA) Aaa/AAA 5,977,722
5,910 Murrieta Valley Yuma Unfied School Dist., Special Tax,
6.30%-6.50%, 9/1/18-9/1/31 NR/NR 6,064,461
1,080 Palm Springs Community Redev. Agcy., Tax Allocation,
5.50%, 8/1/21 NR/A- 1,110,240
1,010 Pomona Unified School Dist., GO, Ser. A, 6.10%, 2/1/19 (MBIA) Aaa/AAA 1,194,689
1,690 Rancho Etiwanda Public Fac., Special Tax, 6.375%, 9/1/24 NR/NR 1,749,201
2,770 Rancho Mirage Redev. Agcy., Tax Allocation, 5.50%-5.625%,
4/1/24-4/1/33 Baa1/BBB+ 2,855,420
8,305 Riverside Cnty., CP, 5.125%, 11/1/30 (MBIA) Aaa/AAA 8,462,297
1,000 Riverside Cnty. Pub Financing., Tax Allocation,
Ser. A, 5.625%, 10/1/33 Baa2/BBB- 1,008,680
1,850 Riverside Improvement Board Act 1915, Special Assessment,
6.15%-6.375%, 9/2/19-9/2/26 NR/NR 1,886,278
575 Roseville, Woodcreek Community Fac. Dist., Spec. Tax, 6.375%, 9/1/27 NR/NR 597,252
2,000 Sacramento Health Fac. Rev., Ser. A, 5.30%, 1/1/24 NR/A+ 2,023,320
6,910 Sacramento, Special Tax, 5.70%-6.15%, 9/1/21-9/1/26. NR/NR 6,999,392
545 San Diego Cnty., CP, 5.25%, 10/1/28 A2/NR 551,545
7,500 San Diego Cnty. Water Auth. Rev., CP, Ser. A, 4.75%-5.00%,
5/1/28-5/1/32 Aaa/AAA 7,307,750
3,330 San Francisco Bay Area Rapid Transit Dist. Rev., 5.125%, 7/1/36
(AMBAC) Aaa/AAA 3,382,115
4,250 San Francisco City & Cnty. Airport., Community Int'l Airport
Rev., 4.50%, 5/1/26 (MBIA) Aaa/AAA 3,936,052
San Francisco City & Cnty. Redev. Agcy. Rev., Special Tax,
1,500 6.125%, 8/1/31, Ser. A NR/NR 1,534,950
3,500 6.125%, 8/1/31, Ser. B NR/NR 3,555,160
5,065 San Joaquin Cnty., CP, 5.00%, 9/1/20 (MBIA) Aaa/AAA 5,155,056
San Joaquin Hills Transportation Corridor Agcy. Toll Road,
Rev., Ser. A, Baa3/BBB- 3,684,950
5,000 zero coupon, 1/15/19, Baa3/BBB- 4,866,700
5,000 5.50%, 1/15/28,
240 San Jose Improvement Board Act 1915, Special Assessment, NR/NR 247,308
Ser. 24Q, 5.60%, 9/2/17
5,000 San Jose Unified School Dist., Santa Clara Cnty., GO, Aaa/NR 5,078,800
Ser. D, 5.125%, 8/1/25 (FSA)
26,450 San Juan Unified School Dist., GO, (FSA) zero coupon, 8/1/22-8/1/26 Aaa/AAA 8,173,512
600 Santa Ana Fin. Auth., Ser. C, Rev., 5.60% 9/1/19 NR/BBB 630,954
1,815 Santa Clara CP, 5.00%, 2/1/32 (AMBAC) Aaa/AAA 1,822,060
1,250 Santa Clara Valley Transportation Auth. Sale Tax Rev.,
Ser. A 5.00%, 6/1/26 (MBIA) Aaa/AAA 1,257,738
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 17
PIMCO CALIFORNIA MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
----------------------------------------------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL BONDS & NOTES (CONTINUED)
----------------------------------------------------------------------------------------------------------------------
$ 1,435 Santa Maria JT Union High School Dist., GO, Ser. A 5.25%, 8/1/25 (FSA) Aaa/AAA $ 1,503,536
State, GO,
11,000 4.75%-5.375%, 10/1/25-12/1/28 A1/A+ 11,206,880
5,000 5.00%, 4/1/27 (AMBAC) Aaa/AAA 5,029,600
State, Public Works Board Lease Rev.,
5,385 5.00%, 10/1/19 Ser. A, A2/A 5,454,897
5,000 5.00%, 9/1/21 Ser. B Aaa/AAA 5,087,100
Statewide Community Dev. Auth., CP,
15,000 5.375%, 4/1/30 NR/BBB 14,012,550
8,000 6.50%, 7/1/20 Baa2/BBB 8,538,720
Statewide Community Dev. Auth., Rev.,
15,250 5.125%, 10/1/30, Ser. A NR/A+ 15,193,118
4,000 5.50%, 8/15/34, Ser. B A2/A+ 4,017,640
9,900 6.625%, 10/1/31-11/1/31 NR/NR 10,037,481
2,550 6.75%, 6/1/28# NR/NR 2,598,373
2,000 Tamalpais Union High School Dist., GO, 5.00% 8/1/26 (MBIA) Aaa/AAA 2,013,660
10,800 Tobacco Securitization Auth., Rev., Ser. A 5.25%-5.375%, 6/1/31-6/1/41 A1/A 9,700,335
6,865 Tustin Unified School District Special Tax, 5.50%-5.625%, 9/1/22-9/1/32 NR/NR 6,796,783
7,000 University Rev., 5.125%, 9/1/31 Aaa/AAA 7,093,870
3,750 West Kern Cnty. Water Dist., CP, 5.625%, 6/1/31 Baa2/NR 3,794,288
------------
Total California Municipal Bonds & Notes (cost-$343,427,533) 349,959,687
============
----------------------------------------------------------------------------------------------------------------------
OTHER MUNICIPAL BONDS & NOTES--2.6%
----------------------------------------------------------------------------------------------------------------------
LOUISIANA -- 0.4%
1,750 Tobacco Settlement Finance Corp., Ser. 2001-B, 5.875%, 5/15/39 A1/A 1,588,965
PUERTO RICO -- 2.2%
3,050 Commonwealth, GO, 5.50%, 7/1/12. NR/AAA 3,521,652
5,000 Electric Power Auth., Power Rev., 5.25%, 7/1/29 (FSA) Aaa/AAA 5,132,550
------------
Total Other Municipal Bonds & Notes (cost-$10,132,880) 10,243,167
============
----------------------------------------------------------------------------------------------------------------------
CALIFORNIA SHORT-TERM VARIABLE RATE DEMAND NOTES***--9.2%
----------------------------------------------------------------------------------------------------------------------
1,900 Bay Area Toll Auth., Toll Bridge Rev., Ser. C, 1.80%, 11/7/02 (AMBAC) VMIG1/A1+ 1,900,000
1,100 East Bay Muni. Util. Dist. Water Syst. Rev., Ser. A, 1.80%, 11/6/02 (FSA) VMIG1/A1+ 1,100,000
22,500 State, GO, RITES-PA Ser. 898-R, 7.45%, 11/7/02++ A1/A+ 22,761,900
18 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO CALIFORNIA MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
--------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA SHORT-TERM VARIABLE RATE DEMAND NOTES*** (CONCLUDED)
--------------------------------------------------------------------------------------------------------------------------------
$ 10,003 Los Angeles Wastewater Syst. Rev., Ser. 318, 7.87%, 11/7/02 (FGIC)++ NR/NR $ 10,089,322
850 Metropolitan Wtr. Dist Southern CA Waterworks Rev., Ser. A, 1.80%, 11/7/02 (AMBAC) VMIG1/A1+ 850,000
------------
Total California Short-Term Variable Rate Demand Notes (cost-$35,639,336) 36,701,222
============
--------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS--0.7%
--------------------------------------------------------------------------------------------------------------------------------
2,850 1.59%-1.62%, 11/14/02-11/29/02+ (cost-$2,847,789) AAA/AAA 2,847,993
------------
TOTAL INVESTMENTS (cost-$392,047,538++)-100.0% $399,752,069
============
--------------------------------------------------------------------------------------------------------------------------------
++ The cost basis of securities for federal income tax purposes is
$392,047,538. Aggregate gross unrealized appreciation for securities in
which there is an excess of value over tax cost is $9,097,506; aggregate
gross unrealized depreciation for securities in which there is an excess of
tax cost over value is $1,392,975; net unrealized appreciation for federal
income tax purposes is $7,704,531.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS |
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 19
PIMCO NEW YORK MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
----------------------------------------------------------------------------------------------------------------
NEW YORK MUNICIPAL BONDS & NOTES--80.4%
----------------------------------------------------------------------------------------------------------------
$3,265 Albany Indl. Dev. Agcy. Civic Fac. Rev., Ser. A, 5.30%, 4/1/29 Baa1/NR $ 3,280,215
Long Island Power Auth. Elec. Syst. Rev.,
1,000 5.375%, 5/1/33, Ser. L# Baa1/A- 1,012,560
6,300 5.50%, 12/1/29, Ser. A Baa1/A- 6,388,515
Metropolitan Transportation Auth., NY Service Contract, Ser. A,
6,040 5.00%, 7/1/25 (FGIC) Aaa/AAA 6,090,253
8,150 5.00%, 7/1/30 (AMBAC) Aaa/AAA 8,180,481
1,375 5.125%, 1/1/29 A3/AA- 1,378,534
2,500 Monroe Tobacco Asset Securitization Corp. Rev., 6.375%, 6/1/35 A1/A 2,614,775
5,000 New York City, GO, Ser. J, 5.125%, 5/15/29 (MBIA) Aaa/AAA 5,025,650
2,000 New York City Indl. Dev. Agcy. Rev., 6.00%, 11/1/28 NR/NR 1,471,180
New York City Muni. Water Fin. Auth., Water & Sewer Syst., Rev.,
7,605 4.75%, 6/15/31, Ser. A, (FGIC) Aaa/AAA 7,339,357
7,000 5.125%, 6/15/21, Ser. A (AMBAC) Aaa/AAA 7,210,980
5,000 5.125%, 6/15/33, Ser. C Aa2/AA 5,046,950
5,000 5.25%, 6/15/25, Ser. D Aa2/AA 5,132,600
3,250 New York City Transitional Fin. Auth., Rev., Ser. B, 4.75%, 11/15/23, Aa2/AA+ 3,153,215
2,000 Port Auth. of New York & New Jersey Rev., 5.00%, 7/15/28 A1/AA- 1,996,980
6,550 State Dormitory Auth. Lease Rev., Ser. 1, 4.75%, 1/15/29 (FSA) Aaa/AAA 6,311,842
1,535 State Dormitory Auth. Rev., FHA-Mortgage Nursing Home Rev.,
5.40%-5.50%, 2/1/31-2/1/41 (MBIA) Aaa/AAA 1,587,615
8,000 State Dormitory Auth. Rev., FHA-NY & Presbyterian Hosp.,
4.75%, 8/1/27 (AMBAC) Aaa/AAA 7,761,520
8,000 State Dormitory Auth. Rev., Lenox Hill Hosp. Oblig. Group,
5.50%, 7/1/30 A3/NR 8,070,960
8,500 State Dormitory Auth. Rev., Mental Health Services Fac.,
Improvement, Ser. D, 4.75%, 2/15/25 (MBIA) Aaa/AAA 8,249,165
7,325 State Dormitory Auth. Rev., Mount Sinai Health, Ser. A
6.50%-6.625%, 7/1/18-7/1/25 Baa3/BBB- 7,987,677
845 State Dormitory Auth. Rev., New York Univ., Ser. 2 5.50%,
7/1/20-7/1/21 (AMBAC) Aaa/AAA 902,406
State Dormitory Auth. Rev., FSA State Univ., Ser. B
1,045 4.75%, 5/15/28 Aaa/AAA 1,007,704
1,270 4.75%, 5/15/28 (Pre-refunded @ 101, 5/15/08)** Aaa/AAA 1,397,292
1,275 State Dormitory Auth. Rev., Winthrop Univ. Hosp. Assoc.,
Ser. A, 5.25%, 7/1/31 (AMBAC) Aaa/AAA 1,302,030
5,000 State Thruway Auth. General Rev., Ser. E, 4.75%, 1/1/19 Aa3/AA- 5,038,950
3,975 State Urban Dev. Corp. Rev., Ser. B, 4.75%, 1/1/28 (AMBAC) Aaa/AAA 3,855,512
20 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO NEW YORK MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
----------------------------------------------------------------------------------------------------------------
NEW YORK MUNICIPAL BONDS & NOTES (CONCLUDED)
----------------------------------------------------------------------------------------------------------------
$3,125 Tobacco Trust II Rev., 5.625%-5.75%, 6/1/35-6/1/43 A1/A $ 3,041,374
8,000 Triborough Bridge & Tunnel Auth., Rev., Ser. A, 5.00%, 1/1/27-1/1/32 Aa3/AA- 7,976,640
-------------
Total New York Municipal Bonds & Notes (cost-$127,274,286) 129,812,932
=============
----------------------------------------------------------------------------------------------------------------
OTHER MUNICIPAL BONDS & NOTES--1.4%
----------------------------------------------------------------------------------------------------------------
LOUISIANA--0.4%
750 Tobacco Settlement Finance Corp., Ser. 2001-B, 5.875%, 5/15/39 A1/A 680,985
PUERTO RICO--1.0%
1,500 Commonwealth Hwy. & Transportation Auth. Rev., Ser. D, 5.25%, 7/1/38 Baa1/A 1,513,470
-------------
Total Other Municipal Bonds & Notes (cost-$2,237,266) 2,194,455
=============
----------------------------------------------------------------------------------------------------------------
NEW YORK SHORT-TERM VARIABLE RATE DEMAND NOTES***--14.4%
----------------------------------------------------------------------------------------------------------------
Nassau Cnty. Interim Fin. Auth. Rev.,
1,000 1.70%, 11/6/02, Ser. A (FSA) VMIG1/A1+ 1,000,000
2,850 1.75%, 11/6/02, Ser. B (FSA) VMIG1/A1+ 2,850,000
2,000 New York City Housing Dev. Corp., Multifamily Rent Housing
Rev., Ser. A, 1.75%, 1/6/02 (FNMA Collateral Agreement) NR/A1+ 2,000,000
1,000 New York City, GO, Ser. B, 2.00%, 11/1/02 (MBIA) VMIG1/A1+ 1,000,000
5,173 New York City Transitional Fin. Auth., Rev., Ser. 362
7.29%, 11/7/02++ Aa2/NR 4,864,840
700 State Dormitory Auth. Rev., Columbia Univ., Ser. C, 1.75%, 11/7/02 Aaa/A1+ 700,000
1,000 State Dormitory Auth. Rev., Cornell Univ., Ser. B, 1.95%, 11/1/02 Aaa/A1+ 1,000,000
Tobacco Trust II Rev., RITES-PA
4,000 8.626%,11/7/02, 886-A++ A1/A 3,788,880
6,500 8.876%, 11/7/02, 886-B++ A1/A 6,041,230
-------------
Total New York Short-Term Variable Rate Demand Notes (cost-$24,018,839) 23,244,950
=============
----------------------------------------------------------------------------------------------------------------
OTHER SHORT-TERM VARIABLE RATE DEMAND NOTES***--3.1%
----------------------------------------------------------------------------------------------------------------
CONNECTICUT--2.2%
State Health & Educational Facs. Auth. Rev.,
3,000 2.05%, 11/1/02 Ser. V-1 VMIG1/A1+ 3,000,000
500 2.05%, 11/1/02 Ser. V-2 VMIG1/A1+ 500,000
TEXAS--0.6%
1,000 Gulf Coast Waste Disp. Auth. Pollution Control Rev.,
1.84%, 11/1/02 VMIG1/A1+ 1,000,000
UTAH--0.3%
500 State, GO, 1.75%, 11/7/02 VMIG1/A1+ 500,000
-------------
Total Other Short-Term Variable Rate Demand Notes (cost-$5,000,000) 5,000,000
=============
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 21
PIMCO NEW YORK MUNICIPAL INCOME FUND SCHEDULE OF INVESTMENTS
October 31, 2002 (unaudited)
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
---------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS--0.7%
---------------------------------------------------------------------------------------------------------------
$ 1,165 1.59%-1.621%, 11/14/02-11/29/02, (cost - $1,164,104) AAA/AAA $ 1,164,188
------------
TOTAL INVESTMENTS (cost-$159,694,495+++)-100.0% $161,416,525
============
---------------------------------------------------------------------------------------------------------------
+++ The cost basis of securities for federal income tax purposes is
$159,694,495. Aggregate gross unrealized appreciation for securities in
which there is an excess of value over tax cost is $3,381,143; aggregate
gross unrealized depreciation for securities in which there is an excess
of tax cost over value is $1,659,113; net unrealized appreciation for
federal income tax purposes is $1,722,030.
--------------------------------------------------------------------------------
NOTES TO SCHEDULE OF INVESTMENTS:
* Long-term debt securities are valued by an independent pricing service
authorized by the Board of Trustees.
** Pre-refunded bonds are collateralized by U.S. Government or other
eligible securities which are held in escrow and used to pay principal
and interest and retire the bonds at the earliest refunding date.
*** 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.
+ All or partial principal amount segregated as initial margin on financial
futures contracts.
++ 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 October
31, 2002, these securities amounted to $65,354,639 or 12.2% of
investments, $32,851,222 or 8.2% of investments and $14,694,950 or 9.1%
of investments, for Municipal, California Municipal and New York
Municipal, respectively.
# Security deemed illiquid.
--------------------------------------------------------------------------------
GLOSSARY:
AMBAC -- insured by American Municipal Bond Assurance Corp.
CP -- Certificates of Participation
FGIC -- insured by Financial Guaranty Insurance Co.
FHA -- insured by Federal Housing Administration
FNMA -- Federal National Mortgage Association
FSA -- insured by Financial Security Assurance, Inc.
GO -- General Obligation Bonds
MBIA -- insured by Municipal Bond Investors Assurance
NR -- Not Rated
22 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
This page intentionally left blank.
PIMCO Municipal Income Funds Semi-Annual Report 23
PIMCO MUNICIPAL INCOME FUNDS STATEMENTS OF ASSETS AND LIABILITIES
October 31, 2002 (unaudited)
California New York
Municipal Municipal Municipal
------------- ------------ ------------
ASSETS:
Investments, at value (cost-$523,395,154, $392,047,538
and $159,694,495, respectively) $ 533,534,985 $399,752,069 $161,416,525
----------------------------------------------------------- ------------- ------------ ------------
Cash 2,788,020 1,986,628 423,677
----------------------------------------------------------- ------------- ------------ ------------
Interest receivable 10,888,191 5,703,136 2,991,131
----------------------------------------------------------- ------------- ------------ ------------
Receivable for investments called 9,763 4,017,229 --
----------------------------------------------------------- ------------- ------------ ------------
Prepaid expenses 37,261 26,560 17,397
----------------------------------------------------------- ------------- ------------ ------------
Total Assets 547,258,220 411,485,622 164,848,730
=========================================================== ============= ============ ============
LIABILITIES:
Payable for investments purchased 2,023,607 8,682,609 --
----------------------------------------------------------- ------------- ------------ ------------
Dividends payable to common and preferred shareholders 1,970,523 1,379,948 550,077
----------------------------------------------------------- ------------- ------------ ------------
Payable for variation margin on futures contracts 311,500 260,312 103,687
----------------------------------------------------------- ------------- ------------ ------------
Investment management fees payable 209,301 154,658 63,200
----------------------------------------------------------- ------------- ------------ ------------
Accrued expenses 89,200 66,778 26,016
----------------------------------------------------------- ------------- ------------ ------------
Total Liabilities 4,604,131 10,544,305 742,980
----------------------------------------------------------- ------------- ------------ ------------
Preferred shares ($25,000 net asset and liquidation value
per share applicable to an aggregate of 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 $ 342,654,089 $250,941,317 $101,105,750
=========================================================== ============= ============ ============
COMPOSITION OF NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS:
Common stock (no par value):
Paid-in capital $ 340,125,566 $251,339,930 $102,998,770
----------------------------------------------------------- ------------- ------------ ------------
Undistributed net investment income 4,003,170 1,771,671 603,531
----------------------------------------------------------- ------------- ------------ ------------
Accumulated net realized loss on investments (11,725,728) (9,967,784) (4,255,612)
----------------------------------------------------------- ------------- ------------ ------------
Net unrealized appreciation of investments and futures
contracts 10,251,081 7,797,500 1,759,061
----------------------------------------------------------- ------------- ------------ ------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS $ 342,654,089 $250,941,317 $101,105,750
----------------------------------------------------------- ------------- ------------ ------------
Common Shares Outstanding 23,957,803 17,710,787 7,265,318
----------------------------------------------------------- ------------- ------------ ------------
NET ASSET VALUE PER COMMON SHARE $14.30 $14.17 $13.92
=========================================================== ============= ============ ============
24 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PIMCO MUNICIPAL INCOME FUNDS STATEMENTS OF OPERATIONS
For the six months ended October 31, 2002 (unaudited)
California New York
Municipal Municipal Municipal
------------- ------------- ------------
INTEREST INCOME:
Interest $ 15,959,562 $ 11,037,786 $ 4,355,968
------------------------------------------------------------------ ------------- ------------- ------------
EXPENSES:
Investment management fees 1,788,510 1,319,751 539,367
------------------------------------------------------------------- ------------- ------------- ------------
Auction agent fees and commissions 264,824 196,730 82,445
------------------------------------------------------------------- ------------- ------------- ------------
Custodian and accounting agent fees 121,388 58,712 45,925
------------------------------------------------------------------- ------------- ------------- ------------
Legal fees 36,800 30,360 6,000
------------------------------------------------------------------- ------------- ------------- ------------
Audit and tax service fees 32,752 29,672 18,768
------------------------------------------------------------------- ------------- ------------- ------------
Trustees' fees 22,632 15,912 6,992
------------------------------------------------------------------- ------------- ------------- ------------
Transfer agent fees 16,192 16,084 10,008
------------------------------------------------------------------- ------------- ------------- ------------
Reports to shareholders 16,120 15,280 3,128
------------------------------------------------------------------- ------------- ------------- ------------
Miscellaneous 40,632 34,250 40,077
------------------------------------------------------------------- ------------- ------------- ------------
Total expenses 2,339,850 1,716,751 752,710
------------------------------------------------------------------- ------------- ------------- ------------
Less: investment management fees waived (550,311) (406,077) (165,959)
------------------------------------------------------------------- ------------- ------------- ------------
expense offset (88,608) (58,712) (45,925)
------------------------------------------------------------------- ------------- ------------- ------------
Net expenses 1,700,931 1,251,962 540,826
------------------------------------------------------------------- ------------- ------------- ------------
NET INVESTMENT INCOME $ 14,258,631 $ 9,785,824 $ 3,815,142
=================================================================== ============= ============= ============
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
------------------------------------------------------------------
Investments 224,194 230,376 (75,583)
------------------------------------------------------------------ ------------- ------------- ------------
Futures contracts (12,972,023) (10,088,237) (4,214,796)
------------------------------------------------------------------ ------------- ------------- ------------
Net change in unrealized appreciation/depreciation of investments
and future contracts 13,484,800 12,078,557 4,112,707
------------------------------------------------------------------ ------------- ------------- ------------
Net realized and unrealized gain (loss) 736,971 2,220,696 (177,672)
------------------------------------------------------------------ ------------- ------------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM INVESTMENT OPERATIONS 14,995,602 12,006,520 3,637,470
================================================================== ============= ============= ============
DIVIDENDS ON PREFERRED SHARES FROM NET INVESTMENT INCOME (1,287,148) (950,814) (380,175)
------------------------------------------------------------------ ------------- ------------- ------------
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM INVESTMENT OPERATIONS $ 13,708,454 $ 11,055,706 $ 3,257,295
================================================================== ============= ============= ============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS |
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 25
PIMCO MUNICIPAL INCOME FUNDS STATEMENTS OF CHANGES IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS
Municipal
------------------------------------
Six months For the period
ended June 29, 2001*
October 31, 2002 through
(unaudited) April 30, 2002
---------------- ---------------
INVESTMENT OPERATIONS:
Net investment income $ 14,258,631 $ 21,651,169
-------------------------------------------------------------------- ------------- -------------
Net realized gain (loss) on investments and futures contracts (12,747,829) 1,524,327
-------------------------------------------------------------------- ------------- -------------
Net change in unrealized appreciation/depreciation of investments
and futures contracts 13,484,800 (3,233,719)
-------------------------------------------------------------------- ------------- -------------
Net increase in net assets resulting from investment operations 14,995,602 19,941,777
==================================================================== ============= =============
DIVIDENDS AND DISTRIBUTIONS ON PREFERRED SHARES FROM:
Net investment income (1,287,148) (2,110,712)
-------------------------------------------------------------------- ------------- -------------
Net realized gains -- (63,733)
-------------------------------------------------------------------- ------------- -------------
Total dividends and distributions on preferred shares (1,287,148) (2,174,445)
-------------------------------------------------------------------- ------------- -------------
Net increase in net assets applicable to common shareholders
resulting from investment operations 13,708,454 17,767,332
-------------------------------------------------------------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (11,653,604) (16,855,166)
-------------------------------------------------------------------- ------------- -------------
Net realized gains -- (438,493)
-------------------------------------------------------------------- ------------- -------------
Total dividends and distributions to common shareholders (11,653,604) (17,293,659)
-------------------------------------------------------------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from the sale of common stock -- 339,359,250
-------------------------------------------------------------------- ------------- -------------
Preferred shares underwriting discount charged to paid-in capital -- (2,000,000)
-------------------------------------------------------------------- ------------- -------------
Common stock and preferred shares offering costs charged to
paid-in capital -- (1,045,700)
-------------------------------------------------------------------- ------------- -------------
Reinvestment of dividends and distributions 1,896,289 1,815,722
-------------------------------------------------------------------- ------------- -------------
Net increase in capital share transactions 1,896,289 338,129,272
-------------------------------------------------------------------- ------------- -------------
Total increase in net assets applicable to common shareholders 3,951,139 338,602,945
==================================================================== ============= =============
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 338,702,950 100,005
-------------------------------------------------------------------- ------------- -------------
End of period (including undistributed net investment of $4,003,170
and $2,685,291, $1,771,671 and $1,101,271, and $603,531 and
$428,915, respectively) $ 342,654,089 $ 338,702,950
-------------------------------------------------------------------- ------------- -------------
COMMON SHARES ISSUED AND REINVESTED:
Issued -- 23,690,000
-------------------------------------------------------------------- ------------- -------------
Issued in reinvestment of dividends and distributions 130,889 130,247
-------------------------------------------------------------------- ------------- -------------
NET INCREASE 130,889 23,820,247
==================================================================== ============= =============
* Commencement of operations.
26 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
California New York
Municipal Municipal
----------------------------------- ----------------------------------
Six months For the period Six months For the period
ended June 29, 2001* ended June 29, 2001*
October 31, 2002 through October 31, 2002 through
(unaudited) April 30, 2002 (unaudited) April 30, 2002
---------------- -------------- ---------------- ---------------
$ 9,785,824 $ 14,674,043 $ 3,815,142 $ 5,907,450
------------ ------------- ------------ ------------
(9,857,861) (109,923) (4,290,379) 449,411
------------ ------------- ------------ ------------
12,078,557 (4,281,057) 4,112,707 (2,353,646)
------------ ------------- ------------ ------------
12,006,520 10,283,063 3,637,470 4,003,215
============ ============= ============ ============
(950,814) (1,586,830) (380,175) (635,639)
------------ ------------- ------------ ------------
-- -- -- (54,140)
------------ ------------- ------------ ------------
(950,814) (1,586,830) (380,175) (689,779)
------------ ------------- ------------ ------------
11,055,706 8,696,233 3,257,295 3,313,436
------------ ------------- ------------ ------------
(8,164,610) (11,985,942) (3,260,351) (4,842,896)
------------ ------------- ------------ ------------
-- -- -- (360,504)
------------ ------------- ------------ ------------
(8,164,610) (11,985,942) (3,260,351) (5,203,400)
------------ ------------- ------------ ------------
-- 250,401,000 -- 102,137,250
------------ ------------- ------------ ------------
-- (1,500,000) -- (630,000)
------------ ------------- ------------ ------------
-- (888,423) -- (419,314)
------------ ------------- ------------ ------------
1,368,337 1,859,011 696,142 1,114,687
------------ ------------- ------------ ------------
1,368,337 249,871,588 696,142 102,202,623
------------ ------------- ------------ ------------
4,259,433 246,581,879 693,086 100,312,659
============ ============= ============ ============
246,681,884 100,005 100,412,664 100,005
------------ ------------- ------------ ------------
$250,941,317 $ 246,681,884 $101,105,750 $100,412,664
------------ ------------- ------------ ------------
-- 17,480,000 -- 7,130,000
------------ ------------- ------------ ------------
95,369 128,751 49,499 79,152
------------ ------------- ------------ ------------
95,369 17,608,751 49,499 7,209,152
============ ============= ============ ============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS |
10.31.02 PIMCO Municipal | Income Funds Semi-Annual Report 27
PIMCO MUNICIPAL INCOME FUNDS NOTES TO FINANCIAL STATEMENTS
October 31, 2002 (unaudited)
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 Advisors Fund Management LLC, formerly PIMCO
Funds Advisors LLC, (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 an underwriting discount of $0.675 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 commission 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
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 State 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 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.
(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
28 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO MUNICIPAL INCOME FUNDS NOTES TO FINANCIAL STATEMENTS
October 31, 2002 (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONCLUDED)
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.
(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
and accounting agent expenses. Had these cash balances been invested in income
producing securities, they would have generated income for the Funds.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
financial instrument at a set price on a future date. Upon entering into such a
contract, the Funds are required to pledge to the broker an amount of cash or
securities equal to the minimum "initial margin" requirements of the exchange.
Pursuant to the contracts, the Funds agree to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contracts.
Such receipts or payments are known as "variation margin" and are recorded by
the Funds as unrealized appreciation or depreciation. When the contracts are
closed, the Funds record a realized gain or loss equal to the difference
between the value of the contracts at the time they were opened and the value
at the time they were closed. Any unrealized appreciation or depreciation
recorded is simultaneously reversed. The Funds invest in futures contracts. The
use of futures transactions involves the risk of an imperfect correlation in
the movements in the price of futures contracts, interest rates and the
underlying hedged assets, and the possible inability of counterparties to meet
the terms of their contracts.
Futures contracts outstanding at October 31, 2002 were as follows:
# of Expiration Unrealized
Fund Type Contracts Date Appreciation
------------------------------------------------------------------------------------------------------------
Municipal Short: U.S. Treasury 30 Year Bond 712 12/31/02 $111,250
California Municipal Short: U.S. Treasury 30 Year Bond 595 12/31/02 92,969
New York Municipal Short: U.S. Treasury 30 Year Bond 237 12/31/02 37,031
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 $687,889,
$507,597 and $207,449 in connection with sub-advisory services for Municipal,
California Municipal and New York Municipal, respectively, for the six months
ended October 31, 2002.
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 29
PIMCO MUNICIPAL INCOME FUNDS NOTES TO FINANCIAL STATEMENTS
October 31, 2002 (unaudited)
3. INVESTMENTS IN SECURITIES
For the six months ended October 31, 2002, purchases and sales of investments,
other than short-term securities, were as follows:
California New York
Municipal Municipal Municipal
--------------------------------------------------------------
Purchases $176,892,347 $122,194,568 $114,841,619
Sales 185,332,770 126,879,350 117,586,429
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.
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 six months ended October 31, 2002, the annualized dividend rates ranged
from:
High Low At 10/31/02
------------------------------------------------------
Municipal:
----------
Series A 1.55% 0.75% 1.50%
Series B 1.60% 1.00% 1.60%
Series C 1.52% 1.00% 1.15%
Series D 1.50% 1.00% 1.00%
Series E 1.55% 1.00% 1.50%
California Municipal:
---------------------
Series A 1.60% 0.88% 1.50%
Series B 1.50% 0.90% 1.50%
Series C 1.50% 0.88% 1.45%
New York Municipal:
-------------------
Series A 1.55% 0.85% 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.
30 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
PIMCO MUNICIPAL INCOME FUNDS NOTES TO FINANCIAL STATEMENTS
October 31, 2002 (unaudited)
6. SUBSEQUENT DIVIDEND DECLARATIONS -- COMMON SHAREHOLDERS
On November 1, 2002, the following dividends were declared to common
shareholders payable December 2, 2002 to shareholders of record on November 15,
2002:
Municipal $0.08125 per common share
California Municipal $0.077 per common share
New York Municipal $0.075 per common share
On December 2, 2002, the following dividends were declared to common
shareholders payable December 31, 2002 to shareholders of record on December
13, 2002:
Municipal $0.08125 per common share
California Municipal $0.077 per common share
New York Municipal $0.075 per common share
On December 17, 2002, Municipal declared a short-term capital gain distribution
to common shareholders of $0.03783 per common share payable January 10, 2003 to
shareholders of record on December 27, 2002.
7. CHANGE IN INVESTMENT POLICY
On December 17, 2002, the Board of Trustees approved a change in the investment
policy of each Fund to invest, under normal market conditions, at least 90% of
each of its "total" assets in municipal bonds to at least 90% of each of its
"net" assets (and not "total" assets.)
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 31
PIMCO MUNICIPAL INCOME FUNDS FINANCIAL HIGHLIGHTS
For a share of common stock outstanding throughout each period:
Municipal
------------------------------------
Six months For the period
ended June 29, 2001*
October 31, 2002 through
(unaudited) April 30, 2002
---------------- --------------
Net asset value, beginning of period $14.22 $14.33**
------------------------------------------------------------------- ---------------- --------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.59 0.91
------------------------------------------------------------------- ---------------- --------------
Net realized and unrealized gain (loss) on investments 0.03 (0.07)
------------------------------------------------------------------- ---------------- --------------
Total from investment operations 0.62 0.84
------------------------------------------------------------------- ---------------- --------------
DIVIDENDS AND DISTRIBUTIONS ON PREFERRED SHARES FROM:
Net investment income (0.05) (0.09)
------------------------------------------------------------------- ---------------- --------------
Net realized gains (0.00)+
------------------------------------------------------------------- ---------------- --------------
Total dividends and distributions on preferred shares -- (0.09)
------------------------------------------------------------------- ---------------- --------------
Net increase in net assets applicable to common shares resulting
from investment operations 0.57 0.75
------------------------------------------------------------------- ---------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (0.49) (0.71)
------------------------------------------------------------------- ---------------- --------------
Net realized gains -- (0.02)
------------------------------------------------------------------- ---------------- --------------
Total dividends and distributions to common shareholders -- (0.73)
------------------------------------------------------------------- ---------------- --------------
CAPITAL SHARE TRANSACTIONS:
Common stock offering costs charged to paid-in capital -- (0.03)
------------------------------------------------------------------- ---------------- --------------
Preferred shares offering costs/underwriting discounts charged to
paid-in capital -- (0.10)
------------------------------------------------------------------- ---------------- --------------
Total capital share transactions -- (0.13)
------------------------------------------------------------------- ---------------- --------------
Net asset value, end of period $14.30 $14.22
------------------------------------------------------------------- ---------------- --------------
Market price, end of period $14.62 $14.70
------------------------------------------------------------------- ---------------- --------------
TOTAL INVESTMENT RETURN (1) 2.9% 3.1%
------------------------------------------------------------------- ---------------- --------------
RATIOS/SUPPLEMENTAL DATA:
Net assets applicable to common shareholders, end of period (000) 342,654 $338,703
------------------------------------------------------------------- ---------------- --------------
Ratio of expenses to average net assets (2)(3)(4) 1.03%(5) 0.91%(5)
------------------------------------------------------------------- ---------------- --------------
Ratio of net investment income to average net assets (2)(4) 8.18%(5) 7.64%(5)
------------------------------------------------------------------- ---------------- --------------
Preferred shares asset coverage per share $67,827 $67,332
------------------------------------------------------------------- ---------------- --------------
Portfolio turnover 33% 38%
------------------------------------------------------------------- ---------------- --------------
* 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 each 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.
32 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
California New York
Municipal Municipal
---------------------------------- --------------------------------------
Six months For the period Six months For the period
ended June 29, 2001* ended June 29, 2001*
October 31, 2002 through October 31, 2002 through
(unaudited) April 30, 2002 (unaudited) April 30, 2002
---------------- -------------- ---------------- --------------
$14.00 $14.33** $13.92 $14.33**
---------------- -------------- ---------------- --------------
0.55 0.83 0.52 0.82
---------------- -------------- ---------------- --------------
0.13 (0.25) (0.02) (0.26)
---------------- -------------- ---------------- --------------
0.68 0.58 0.50 0.56
---------------- -------------- ---------------- --------------
(0.05) (0.09) (0.05) (0.09)
---------------- -------------- ---------------- --------------
-- -- -- (0.01)
---------------- -------------- ---------------- --------------
(0.05) (0.09) (0.05) (0.10)
---------------- -------------- ---------------- --------------
0.63 0.49 0.45 0.46
---------------- -------------- ---------------- --------------
(0.46) (0.68) (0.45) (0.67)
---------------- -------------- ---------------- --------------
-- -- -- (0.05)
---------------- -------------- ---------------- --------------
(0.46) (0.68) (0.45) (0.72)
---------------- -------------- ---------------- --------------
-- (0.03) -- (0.03)
---------------- -------------- ---------------- --------------
-- (0.11) -- (0.12)
---------------- -------------- ---------------- --------------
-- (0.14) -- (0.15)
---------------- -------------- ---------------- --------------
$14.17 $14.00 $13.92 $13.92
---------------- -------------- ---------------- --------------
$14.73 $14.71 $14.30 $14.20
---------------- -------------- ---------------- --------------
3.4% 2.8% 4.0% (0.3)%
---------------- -------------- ---------------- --------------
$250,941 $246,682 $101,106 $100,413
---------------- -------------- ---------------- --------------
1.03%(6) 0.94%(6) 1.14%(7) 1.04%(7)
---------------- -------------- ---------------- --------------
7.68%(6) 7.03%(6) 7.45%(7) 7.07%(7)
---------------- -------------- ---------------- --------------
$66,819 $66,109 $65,118 $64,834
---------------- -------------- ---------------- --------------
31% 45% 72% 51%
---------------- -------------- ---------------- --------------
(5) During the periods 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 7.87% (annualized), respectively for the six months
ended October 31, 2002 and 1.21% (annualized) and 7.34% (annualized),
respectively, for the period June 29, 2001 (commencement of operations)
through April 30, 2002.
(6) During the periods 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 1.35%
(annualized) and 7.36% (annualized), respectively for the six months
ended October 31, 2002 and 1.24% (annualized) and 6.73% (annualized),
respectively, for the period June 29, 2001 (commencement of operations)
through April 30, 2002.
(7) During the periods 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 1.47%
(annualized) and 7.12% (annualized), respectively for the six months
ended October 31, 2002, 1.34% (annualized) and 6.77% (annualized),
respectively, for the period June 29, 2001 (commencement of operations)
through April 30, 2002.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
10.31.02 | PIMCO Municipal Income Funds Semi-Annual Report 33
PIMCO MUNICIPAL INCOME FUNDS ANNUAL SHAREHOLDER MEETING
The Funds held its annual meeting of shareholders on September 17, 2002.
Common/Preferred shareholders voted to elect Robert E. Connor and Hans W.
Kertess as Class I Trustees to serve until 2003, Paul Belica and John J.
Dalessandro II as Class II Trustees to serve until 2004 and R. Peter Sullivan
III and Stephen J. Treadway as Class III Trustees to serve until 2005.
The resulting vote count is indicated below:
Withhold
Affirmative Against Authority
------------------------------------------------------------------------------
Municipal
---------
Election of Robert E. Connor 21,748,167 246,988 1,899,482
Election of Paul Belica 21,745,129 250,026 1,899,482
Election of R. Peter Sullivan III 21,759,065 236,090 1,899,482
Election of Stephen J. Treadway 21,760,614 234,541 1,899,482
Election of Hans W. Kertess* 7,783 7 210
Election of John J. Dalessandro II* 7,783 7 210
California Municipal
--------------------
Election of Robert E. Connor 15,815,540 105,689 1,744,019
Election of Paul Belica 15,822,666 98,563 1,744,019
Election of R. Peter Sullivan III 15,829,366 91,863 1,744,019
Election of Stephen J. Treadway 15,838,823 82,406 1,744,019
Election of Hans W. Kertess* 5,799 19 182
Election of John J. Dalessandro II* 5,799 19 182
New York Municipal
------------------
Election of Robert E. Connor 6,378,543 75,153 787,605
Election of Paul Belica 6,362,120 91,576 787,605
Election of R. Peter Sullivan III 6,382,908 70,788 787,605
Election of Stephen J. Treadway 6,364,843 88,853 787,605
Election of Hans W. Kertess* 2,498 21 1
Election of John J. Dalessandro II* 2,498 21 1
----------------
* Preferred Stock Trustee
34 PIMCO Municipal Income Funds Semi-Annual Report | 10.31.02
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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PIMCO Municipal Income Funds Semi-Annual Report 35
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36 PIMCO Municipal Income Funds Semi-Annual Report |
TRUSTEES AND PRINCIPAL OFFICERS
Stephen J. Treadway
Trustee, Chairman, Chairman of the Board
Paul Belica
Trustee
Robert E. Connor
Trustee
John J. Dalessandro II
Trustee
Hans W. Kertess
Trustee
R. Peter Sullivan
Trustee
Brian S. Shlissel
President & Chief Executive Officer
Mark V. McCray
Vice President
Newton B. Schott, Jr.
Executive Vice President & Secretary
Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
INVESTMENT MANAGER
PIMCO Advisors Fund Management 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.
400 Bellevue Parkway
Wilmington, DE 19809
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL
Ropes & Gray
One International Place
Boston, MA. 02210-2624
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 the Funds or any securities mentioned in this report.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that from time to time the Funds may purchase
shares of its common stock in the open market.
Daily information on the Funds is available at www.pimcoadvisors.com or by
calling 1-800-331-1710
P I M C O
---------
ADVISORS