PIMCO Municipal Income Fund II

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act File Number:    811-21076
Registrant Name:    PIMCO Municipal Income Fund II
Address of Principal Executive Offices:   

1633 Broadway,

New York, New York 10019

Name and Address of Agent for Service:   

Lawrence G. Altadonna – 1633 Broadway,

New York, New York 10019

Registrant’s telephone number, including area code:    212-739-3371
Date of Fiscal Year End:    May 31, 2012
Date of Reporting Period:    February 29, 2012

 

 

 


Item 1. Schedule of Investments

PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited)

 

Principal

Amount

(000s)

          Value*  

 

MUNICIPAL BONDS & NOTES—97.9%

  

  

Alabama—1.4%

  
$ 10,000      

Birmingham-Baptist Medical Centers Special Care Facs. Financing Auth. Rev.,

  
  

Baptist Health Systems, Inc., 5.00%, 11/15/30, Ser. A

   $ 9,692,200   
  1,235      

Montgomery BMC Special Care Facs. Financing Auth. Rev.,

  
  

5.00%, 11/15/29, Ser. B (NPFGC)

     1,234,938   
  2,000      

State Docks Department Rev., 6.00%, 10/1/40

     2,186,060   
  2,650      

Tuscaloosa Public Educational Building Auth. Rev., Stillman College Project,

  
  

5.00%, 6/1/26, Ser. A

     2,176,816   
     

 

 

 
        15,290,014   
     

 

 

 
  

Arizona—7.1%

  
  

Health Facs. Auth. Rev., Banner Health,

  
  3,500      

5.00%, 1/1/35, Ser. A

     3,661,490   
  2,860      

5.50%, 1/1/38, Ser. D

     3,094,577   
  29,700      

Pima Cnty. Industrial Dev. Auth. Rev.,

  
  

5.00%, 9/1/39

     30,629,016   
  

Pinal Cnty. Electric Dist. No. 3 Rev.,

  
  1,750      

5.25%, 7/1/36

     1,872,308   
  3,700      

5.25%, 7/1/41

     3,932,323   
  10,000      

Salt River Project Agricultural Improvement & Power Dist. Rev.,

  
  

5.00%, 1/1/39, Ser. A (f)

     10,998,400   
  22,400      

Salt Verde Financial Corp. Rev., 5.00%, 12/1/37

     22,495,200   
  1,500      

Tuscon Electric Power Co., 5.25%, 10/1/40, Ser. A

     1,532,640   
     

 

 

 
        78,215,954   
     

 

 

 
  

California—14.0%

  
  

Bay Area Toll Auth. Rev., San Francisco Bay Area,

  
  6,000      

5.00%, 10/1/29

     6,718,020   
  1,430      

5.00%, 4/1/34, Ser. F-1

     1,566,865   
  1,565      

Foothill-Eastern Transportation Corridor Agcy. Rev.,

  
  

5.875%, 1/15/26 (IBC-NPFGC)

     1,594,829   
  

Golden State Tobacco Securitization Corp. Rev., Ser. A-1,

  
  8,750      

5.00%, 6/1/33

     6,694,012   
  7,000      

5.75%, 6/1/47

     5,377,050   
  2,000      

Hayward Unified School Dist., GO, 5.00%, 8/1/33

     2,055,560   
  

Health Facs. Financing Auth. Rev.,

  
  1,500      

Scripps Health, 5.00%, 11/15/36, Ser. A

     1,609,725   
  

Sutter Health,

  
  6,300      

5.00%, 11/15/42, Ser. A (IBC-NPFGC)

     6,520,500   
  3,000      

6.00%, 8/15/42, Ser. B

     3,463,500   
  1,500      

Indian Wells Redev. Agcy., Tax Allocation, Whitewater Project,

  
  

4.75%, 9/1/34, Ser. A (AMBAC)

     1,381,245   
  2,000      

Los Angeles Community College Dist., GO,

  
  

5.00%, 8/1/32, Ser. A (FGIC-NPFGC)

     2,190,860   
  4,000      

Los Angeles Department of Water & Power Rev.,

  
  

5.00%, 7/1/39, Ser. A-1 (AMBAC)

     4,250,920   
  5,000      

Los Angeles Unified School Dist., GO, 5.00%, 7/1/30, Ser. E (AMBAC)

     5,407,600   
  2,000      

Montebello Unified School Dist., GO, 5.00%, 8/1/33 (AGM)

     2,161,220   
  1,750      

M-S-R Energy Auth. Rev., 6.50%, 11/1/39, Ser. B

     2,159,168   
  3,300      

Municipal Finance Auth. Rev., Azusa Pacific Univ. Project,

  
  

7.75%, 4/1/31, Ser. B

     3,701,775   


PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

          Value*  
  

California (continued)

  
$ 650      

Murrieta Valley Unified School Dist. Public Financing Auth., Special Tax,

  
  

4.75%, 9/1/36, Ser. A (AGC)

   $ 658,378   
  3,000      

Newport Beach Rev., Hoag Memorial Hospital Presbyterian,

  
  

5.875%, 12/1/30

     3,561,720   
  500      

Peralta Community College Dist., GO, 5.00%, 8/1/39, Ser. C

     527,165   
  2,000      

San Diego Cnty. Water Auth., CP, 5.00%, 5/1/38, Ser. 2008-A (AGM)

     2,129,400   
  3,300      

San Marcos Unified School Dist., GO, 5.00%, 8/1/38, Ser. A

     3,564,495   
  2,000      

Santa Clara Cnty. Financing Auth. Rev., El Camino Hospital,

  
  

5.75%, 2/1/41, Ser. A (AMBAC)

     2,140,460   
  

State, GO,

  
  2,925      

5.00%, 11/1/32

     3,179,504   
  1,590      

5.00%, 6/1/37

     1,679,008   
  5,200      

5.125%, 8/1/36

     5,572,996   
  2,500      

5.25%, 3/1/38

     2,671,825   
  5,945      

5.25%, 11/1/40

     6,479,337   
  5,750      

5.50%, 3/1/40

     6,347,195   
  9,500      

6.00%, 4/1/38

     10,931,270   
  

Statewide Communities Dev. Auth. Rev.,

  
  

California Baptist Univ.,

  
  3,390      

5.75%, 11/1/17, Ser. B (a)(b)

     3,491,802   
  850      

6.50%, 11/1/21

     954,950   
  1,000      

Cottage Health, 5.00%, 11/1/40

     1,042,740   
  

Methodist Hospital Project (FHA),

  
  5,500      

6.625%, 8/1/29

     6,877,145   
  19,500      

6.75%, 2/1/38

     23,602,020   
  5,690      

Sutter Health, 6.00%, 8/15/42, Ser. A

     6,569,105   
  4,725      

Torrance Rev., Memorial Medical Center, 5.00%, 9/1/40, Ser. A

     4,869,963   
     

 

 

 
        153,703,327   
     

 

 

 
  

Colorado—1.7%

  
  5,800      

Aurora Rev., Children’s Hospital Assoc., 5.00%, 12/1/40

     6,074,688   
  1,000      

Denver Health & Hospital Auth. Rev., 5.625%, 12/1/40

     1,041,570   
  

Health Facs. Auth. Rev.,

  
  1,000      

American Baptist Homes, 5.90%, 8/1/37, Ser. A

     885,200   
  2,500      

Catholic Health Initiatives, 5.00%, 2/1/41, Ser. A

     2,674,075   
  500      

Evangelical Lutheran, 6.125%, 6/1/38, Ser. A

     514,930   
  6,045      

Sisters of Charity of Leavenworth Health System, 5.00%, 1/1/40

     6,368,347   
  1,430      

Public Auth. for Colorado Energy Rev., 6.50%, 11/15/38

     1,796,080   
     

 

 

 
        19,354,890   
     

 

 

 
  

Connecticut—0.3%

  
  1,250      

Harbor Point Infrastructure Improvement Dist., Tax Allocation,

  
  

7.875%, 4/1/39, Ser. A

     1,394,762   
  2,000      

State Health & Educational Fac. Auth. Rev., Hartford Healthcare,

  
  

5.00%, 7/1/41, Ser. A

     2,100,200   
     

 

 

 
        3,494,962   
     

 

 

 
  

Florida—3.7%

  
  1,000      

Brevard Cnty. Health Facs. Auth. Rev., Health First, Inc. Project,

  
  

7.00%, 4/1/39

     1,168,420   
  600      

Broward Cnty. Airport Rev., 5.375%, 10/1/29, Ser. O

     678,936   


PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

          Value*  
  

Florida (continued)

  
$ 8,500      

Broward Cnty. Water & Sewer Rev., 5.25%, 10/1/34, Ser. A (f)

   $ 9,471,890   
  1,000      

Clearwater Water & Sewer Rev., 5.25%, 12/1/39, Ser. A

     1,119,130   
  340      

Dev. Finance Corp. Rev., Renaissance Charter School,

  
  

6.50%, 6/15/21, Ser. A

     356,606   
  3,000      

Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System,

  
  

5.625%, 11/15/37, Ser. B

     3,301,170   
  7,135      

Jacksonville Health Facs. Auth. Rev., Ascension Health,

  
  

5.25%, 11/15/32, Ser. A

     7,312,590   
  3,000      

Leesburg Hospital Rev., Leesburg Regional Medical Center Project,

  
  

5.50%, 7/1/32

     3,003,720   
  500      

Sarasota Cnty. Health Facs. Auth. Rev., 5.75%, 7/1/37

     367,565   
  7,900      

State Board of Education, GO, 5.00%, 6/1/38, Ser. D (f)

     8,682,811   
  5,000      

Sumter Landing Community Dev. Dist. Rev.,

  
  

4.75%, 10/1/35, Ser. A (NPFGC)

     4,814,450   
     

 

 

 
        40,277,288   
     

 

 

 
  

Georgia—0.4%

  
  1,500      

Atlanta Airport Rev., 5.00%, 1/1/40, Ser. A

     1,593,600   
  2,775      

Medical Center Hospital Auth. Rev., Spring Harbor Green Island Project,

  
  

5.25%, 7/1/37

     2,459,482   
     

 

 

 
        4,053,082   
     

 

 

 
  

Illinois—7.7%

  
  10,000      

Chicago, GO, 5.00%, 1/1/34, Ser. C (f)

     10,591,400   
  

Chicago, Special Assessment, Lake Shore East,

  
  2,849      

6.625%, 12/1/22

     2,944,840   
  6,019      

6.75%, 12/1/32

     6,211,247   
  1,250      

Chicago Motor Fuel Tax Rev., 5.00%, 1/1/38, Ser. A (AGC)

     1,308,988   
  5,000      

Cicero, GO, 5.25%, 12/1/31 (NPFGC)

     5,096,600   
  

Finance Auth. Rev.,

  
  2,500      

Christian Homes, Inc., 5.75%, 5/15/31, Ser. A

     2,494,000   
  250      

Leafs Hockey Club Project, 6.00%, 3/1/37, Ser. A (c)

     75,770   
  700      

OSF Healthcare System, 7.125%, 11/15/37, Ser. A

     824,992   
  2,000      

Provena Health, 6.00%, 5/1/28, Ser. A

     2,247,780   
  5,000      

Univ. of Chicago, 5.50%, 7/1/37, Ser. B (f)

     5,619,800   
  37,000      

Sports Facs. Auth. Rev., 5.50%, 6/15/30 (AMBAC)

     40,541,640   
  

Village of Hillside, Tax Allocation, Mannheim Redev. Project,

  
  4,240      

6.55%, 1/1/20

     4,143,413   
  2,900      

7.00%, 1/1/28

     2,680,876   
     

 

 

 
        84,781,346   
     

 

 

 
  

Indiana—0.5%

  
  1,500      

Finance Auth. Rev., Duke Energy Indiana, Inc., 6.00%, 8/1/39, Ser. B

     1,687,515   
  

Vigo Cnty. Hospital Auth. Rev., Union Hospital, Inc.,

  
  990      

5.80%, 9/1/47 (a)(b)

     951,232   
  1,900      

7.50%, 9/1/22

     2,373,005   
     

 

 

 
        5,011,752   
     

 

 

 
  

Iowa—4.2%

  
  

Finance Auth. Rev.,

  
  

Deerfield Retirement Community, Inc., Ser. A,

  
  250      

5.50%, 11/15/27

     201,728   
  1,075      

5.50%, 11/15/37

     798,488   


PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

          Value*  
  

Iowa (continued)

  
$ 4,500      

Edgewater LLC Project, 6.75%, 11/15/42

   $ 4,177,215   
  46,000      

Tobacco Settlement Auth. Rev., 5.60%, 6/1/34, Ser. B

     40,572,460   
     

 

 

 
        45,749,891   
     

 

 

 
  

Kansas—0.1%

  
  500      

Dev. Finance Auth. Rev., Adventist Health, 5.75%, 11/15/38

     564,490   
  850      

Manhattan Rev., Meadowlark Hills Retirement, 5.00%, 5/15/36, Ser. A

     769,242   
     

 

 

 
        1,333,732   
     

 

 

 
  

Kentucky—0.3%

  
  

Economic Dev. Finance Auth. Rev.,

  
  2,500      

Catholic Healthcare Partners, 5.25%, 10/1/30

     2,521,525   
  1,000      

Owensboro Medical Healthcare Systems, 6.375%, 6/1/40, Ser. A

     1,125,600   
     

 

 

 
        3,647,125   
     

 

 

 
  

Louisiana—3.8%

  
  

Local Gov’t Environmental Facs. & Community Dev. Auth. Rev.,

  
  450      

Westlake Chemical Corp., 6.50%, 11/1/35, Ser. A-2

     494,266   
  

Woman’s Hospital Foundation, Ser. A,

  
  750      

5.875%, 10/1/40

     813,765   
  1,000      

6.00%, 10/1/44

     1,090,080   
  

Public Facs. Auth. Rev., Ochsner Clinic Foundation Project,

  
  3,300      

5.50%, 5/15/47, Ser. B

     3,357,783   
  2,000      

6.50%, 5/15/37

     2,229,720   
  33,395      

Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B

     33,730,954   
     

 

 

 
        41,716,568   
     

 

 

 
  

Maryland—0.9%

  
  

Health & Higher Educational Facs. Auth. Rev.,

  
  1,000      

Adventist Healthcare, 5.75%, 1/1/25, Ser. A

     1,023,470   
  1,400      

Charlestown Community, 6.25%, 1/1/41

     1,536,052   
  1,010      

King Farm Presbyterian Community, 5.30%, 1/1/37, Ser. A

     824,301   
  2,380      

Medstar Health, 5.00%, 8/15/41

     2,527,132   
  4,050      

Washington Cnty. Hospital, 6.00%, 1/1/43

     4,243,752   
     

 

 

 
        10,154,707   
     

 

 

 
  

Massachusetts—0.9%

  
  

Dev. Finance Agcy. Rev.,

  
  

Adventcare Project,

  
  4,610      

6.75%, 10/15/37, Ser. A

     4,643,699   
  580      

7.625%, 10/15/37

     618,912   
  1,000      

Foxborough Regional Charter School, 7.00%, 7/1/42, Ser. A

     1,083,020   
  2,900      

State College Building Auth. Rev., 5.50%, 5/1/39, Ser. A

     3,260,267   
     

 

 

 
        9,605,898   
     

 

 

 
  

Michigan—2.2%

  
  1,000      

Detroit, GO, 5.25%, 11/1/35

     1,057,620   
  5,000      

Detroit Water Supply System Rev., 5.25%, 7/1/41, Ser. A

     5,232,200   


PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

          Value*  
  

Michigan (continued)

  
$ 800      

Public Educational Facs. Auth. Rev., Bradford Academy, 6.50%, 9/1/37 (a)(b)

   $ 507,528   
  3,000      

Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital,

  
  

8.25%, 9/1/39

     3,779,070   
  

State Hospital Finance Auth. Rev., Oakwood Group, Ser. A,

  
  3,000      

5.75%, 4/1/32

     3,057,960   
  1,925      

6.00%, 4/1/22

     2,021,212   
  11,510      

Tobacco Settlement Finance Auth. Rev., 6.00%, 6/1/48, Ser. A

     8,723,774   
     

 

 

 
        24,379,364   
     

 

 

 
  

Minnesota—0.6%

  
  150      

Duluth Housing & Redev. Auth. Rev., 5.875%, 11/1/40, Ser. A

     146,834   
  1,500      

Minneapolis Rev., Providence Project, 5.75%, 10/1/37, Ser. A

     1,426,785   
  

North Oaks Rev., Presbyterian Homes North Oaks,

  
  2,640      

6.00%, 10/1/33

     2,682,240   
  1,530      

6.125%, 10/1/39

     1,559,131   
  500      

Oronoco Rev., Wedum Shorewood Campus Project, 5.40%, 6/1/41

     464,665   
  400      

St. Louis Park Rev., Nicollett Health Services, 5.75%, 7/1/39

     438,972   
     

 

 

 
        6,718,627   
     

 

 

 
  

Mississippi—0.0%

  
  350      

Dev. Bank Special Obligation Rev., Capital Projects and Equipment Acquisition,

  
  

5.00%, 7/1/24, Ser. A-2 (AMBAC)

     349,338   
     

 

 

 
  

Missouri—0.1%

  
  750      

Lee’s Summit, Tax Allocation, Summit Fair Project, 5.625%, 10/1/23

     778,508   
     

 

 

 
  

Nevada—0.9%

  
  10,000      

Clark Cnty., GO, 4.75%, 11/1/35 (FGIC-NPFGC) (f)

     10,377,100   
     

 

 

 
  

New Hampshire—0.2%

  
  2,000      

Business Finance Auth. Rev., Elliot Hospital, 6.125%, 10/1/39, Ser. A

     2,105,540   
  360      

Health & Education Facs. Auth. Rev., Catholic Medical Center,

  
  

6.125%, 7/1/32, Ser. A

     364,918   
     

 

 

 
        2,470,458   
     

 

 

 
  

New Jersey—5.6%

  
  950      

Burlington Cnty. Bridge Commission Rev., The Evergreens Project,

  
  

5.625%, 1/1/38

     940,338   
  

Economic Dev. Auth., Special Assessment, Kapkowski Road Landfill Project,

  
  4,000      

5.75%, 10/1/21

     4,207,200   
  11,405      

5.75%, 4/1/31

     11,643,707   
  

Economic Dev. Auth. Rev.,

  
  525      

Arbor Glen, 6.00%, 5/15/28, Ser. A

     496,377   
  2,000      

MSU Student Housing Project, 5.875%, 6/1/42

     2,151,760   
  

Health Care Facs. Financing Auth. Rev.,

  
  1,500      

AHS Hospital Corp., 6.00%, 7/1/37

     1,737,765   
  1,500      

St. Peters Univ. Hospital, 5.75%, 7/1/37

     1,547,100   
  2,000      

State Turnpike Auth. Rev., 5.25%, 1/1/40, Ser. E

     2,236,400   
  

Tobacco Settlement Financing Corp. Rev., Ser. 1-A,

  
  3,300      

4.75%, 6/1/34

     2,489,751   
  22,805      

5.00%, 6/1/41

     17,363,955   


PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

          Value*  
  

New Jersey (continued)

  
$ 15,000      

Transportation Trust Fund Auth. Rev., 5.00%, 6/15/42, Ser. B

   $ 16,371,000   
     

 

 

 
        61,185,353   
     

 

 

 
  

New Mexico—0.2%

  
  2,000      

Farmington Pollution Control Rev., 5.90%, 6/1/40, Ser. D

     2,103,620   
     

 

 

 
  

New York—12.6%

  
  1,200      

Erie Cnty. Industrial Dev. Agcy. Rev., Orchard Park, Inc. Project,

  
  

6.00%, 11/15/36, Ser. A

     1,072,644   
  29,500      

Hudson Yards Infrastructure Corp. Rev., 5.25%, 2/15/47, Ser. A

     31,857,640   
  

Liberty Dev. Corp. Rev.,

  
  1,000      

5.125%, 1/15/44

     1,062,710   
  2,500      

5.625%, 7/15/47

     2,653,750   
  10,000      

1 World Trade Center Project, 5.00%, 12/15/41

     10,963,300   
  1,250      

Bank of America Tower at One Bryant Park Project, 6.375%, 7/15/49

     1,355,425   
  

Goldman Sachs Headquarters,

  
  1,505      

5.25%, 10/1/35

     1,665,584   
  10,000      

5.25%, 10/1/35 (f)

     11,067,000   
  3,880      

Metropolitan Transportation Auth. Rev., 5.00%, 11/15/36, Ser. D

     4,163,240   
  1,100      

Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside,

  
  

6.70%, 1/1/43, Ser. A

     888,778   
  

New York City Municipal Water Finance Auth. Water & Sewer Rev.,

  
  2,830      

5.00%, 6/15/37, Ser. D (f)

     3,106,491   
  

Second Generation Resolutions,

  
  4,000      

4.75%, 6/15/35, Ser. DD (f)

     4,244,800   
  2,000      

5.00%, 6/15/39, Ser. GG-1

     2,176,420   
  54,000      

New York Liberty Dev. Corp. Rev., World Trade Center Project,

  
  

5.75%, 11/15/51

     60,926,580   
  1,750      

State Dormitory Auth. Rev., The New School, 5.50%, 7/1/40

     1,926,347   
     

 

 

 
        139,130,709   
     

 

 

 
  

North Carolina—0.1%

  
  

Medical Care Commission Rev.,

  
  550      

Salemtowne, 5.10%, 10/1/30

     542,833   
  1,000      

Village at Brookwood, 5.25%, 1/1/32

     861,710   
     

 

 

 
        1,404,543   
     

 

 

 
  

North Dakota—0.3%

  
  3,710      

Stark Cnty. Healthcare Rev., Benedictine Living Communities,

  
  

6.75%, 1/1/33

     3,765,687   
     

 

 

 
  

Ohio—2.0%

  
  

Buckeye Tobacco Settlement Financing Auth. Rev., Ser. A-2,

  
  1,865      

5.75%, 6/1/34

     1,373,721   
  3,570      

5.875%, 6/1/30

     2,771,427   
  500      

5.875%, 6/1/47

     372,300   
  3,900      

Hamilton Cnty. Rev., 5.00%, 12/1/30, Ser. A

     4,241,328   
  1,000      

Higher Educational Fac. Commission Rev., Univ. Hospital Health Systems,

  
  

6.75%, 1/15/39, Ser. 2009-A

     1,077,790   
  7,500      

Lorain Cnty. Hospital Rev., Catholic Healthcare, 5.375%, 10/1/30

     7,577,100   


PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

          Value*  
  

Ohio (continued)

  
$ 1,000      

Montgomery Cnty. Rev., Miami Valley Hospital, 6.25%, 11/15/39, Ser. A

   $ 1,064,490   
  3,000      

State Rev., Cleveland Clinic Health System, 5.50%, 1/1/39, Ser. B

     3,266,190   
     

 

 

 
        21,744,346   
     

 

 

 
  

Oregon—0.2%

  
  1,000      

Clackamas Cnty. Hospital Fac. Auth. Rev., Legacy Health System,

  
  

5.50%, 7/15/35, Ser. A

     1,096,780   
  1,155      

State Department of Administrative Services, CP,

  
  

5.25%, 5/1/39, Ser. A

     1,266,585   
     

 

 

 
        2,363,365   
     

 

 

 
  

Pennsylvania—4.6%

  
  

Cumberland Cnty. Municipal Auth. Rev., Messiah Village Project, Ser. A,

  
  750      

5.625%, 7/1/28

     748,740   
  670      

6.00%, 7/1/35

     672,378   
  3,250      

Harrisburg Auth. Rev., Harrisburg Univ. of Science,

  
  

6.00%, 9/1/36, Ser. B

     2,675,888   
  

Higher Educational Facs. Auth. Rev.,

  
  850      

Edinboro Univ. Foundation, 6.00%, 7/1/43

     902,462   
  400      

Thomas Jefferson Univ., 5.00%, 3/1/40

     428,532   
  500      

Luzerne Cnty. Industrial Dev. Auth. Rev., Pennsylvania American Water Co.,

  
  

5.50%, 12/1/39

     548,070   
  3,750      

Montgomery Cnty. Higher Education & Health Auth. Rev., Abington Memorial Hospital,

  
  

5.125%, 6/1/32, Ser. A

     3,806,513   
  8,500      

Montgomery Cnty. Industrial Dev. Auth. Rev., New Regional Medical Center,

  
  

5.375%, 8/1/38 (FHA)

     9,333,340   
  17,000      

Philadelphia, GO, 5.25%, 12/15/32, Ser. A (AGM)

     18,704,930   
  11,015      

Philadelphia Hospitals & Higher Education Facs. Auth. Rev., Temple Univ. Hospital,

  
  

6.625%, 11/15/23, Ser. A

     11,032,844   
  500      

Philadelphia Water Rev., 5.25%, 1/1/36, Ser. A

     537,895   
  1,000      

Westmoreland Cnty. Industrial Dev. Auth. Rev., Excela Health Project,

  
  

5.125%, 7/1/30

     1,052,850   
     

 

 

 
        50,444,442   
     

 

 

 
  

Puerto Rico—0.5%

  
  5,000      

Sales Tax Financing Corp. Rev., 5.25%, 8/1/41, Ser. C

     5,383,050   
     

 

 

 
  

Rhode Island—5.1%

  
  56,200      

Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A

     56,203,934   
     

 

 

 
  

South Carolina—1.4%

  
  1,000      

Greenwood Cnty. Rev., Self Regional Healthcare, 5.375%, 10/1/39

     1,064,830   
  13,850      

Jobs-Economic Dev. Auth. Rev., Bon Secours Health System,

  
  

5.625%, 11/15/30, Ser. B

     14,007,474   
     

 

 

 
        15,072,304   
     

 

 

 
  

Tennessee—1.2%

  
  1,750      

Claiborne Cnty. Industrial Dev. Board Rev., Lincoln Memorial Univ. Project,

  
  

6.625%, 10/1/39

     1,916,967   
  1,000      

Johnson City Health & Educational Facs. Board Rev., Mountain States Health Alliance,

  
  

6.00%, 7/1/38, Ser. A

     1,111,890   


PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

          Value*  
  

Tennessee (continued)

  
$ 500      

Sullivan Cnty. Health Educational & Housing Facs. Board Rev.,

  
  

Wellmont Health Systems Project, 5.25%, 9/1/36, Ser. C

   $ 511,010   
  

Tennessee Energy Acquisition Corp. Rev., Ser. C,

  
  3,000      

5.00%, 2/1/23

     3,189,240   
  6,000      

5.00%, 2/1/27

     6,197,580   
     

 

 

 
        12,926,687   
     

 

 

 
  

Texas—11.1%

  
  130      

Aubrey Independent School Dist., GO, 5.50%, 2/15/33 (PSF-GTD)

     138,489   
  6,500      

Brazos Cnty. Health Facs. Dev. Corp. Rev., 5.375%, 1/1/32

     6,613,945   
  2,500      

Dallas Rev., Dallas Civic Center, 5.25%, 8/15/38 (AGC)

     2,729,700   
  

Harris Cnty. Cultural Education Facs. Finance Corp. Rev.,

  
  

Texas Children’s Hospital Project,

  
  3,750      

5.25%, 10/1/29

     4,257,825   
  12,700      

5.50%, 10/1/39

     14,135,227   
  700      

HFDC of Central Texas, Inc. Rev., Village at Gleannloch Farms,

  
  

5.50%, 2/15/37, Ser. A

     545,643   
  

North Harris Cnty. Regional Water Auth. Rev.,

  
  10,300      

5.25%, 12/15/33

     11,307,031   
  10,300      

5.50%, 12/15/38

     11,324,129   
  

North Texas Tollway Auth. Rev.,

  
  5,750      

5.00%, 1/1/38

     6,120,760   
  1,300      

5.50%, 9/1/41, Ser. A

     1,495,923   
  5,000      

5.625%, 1/1/33, Ser. B

     5,486,000   
  1,200      

5.75%, 1/1/33, Ser. F

     1,300,260   
  2,000      

Sabine River Auth. Pollution Control Rev., 5.20%, 5/1/28, Ser. C

     250,220   
  250      

San Juan Higher Education Finance Auth. Rev., 6.70%, 8/15/40, Ser. A

     280,805   
  

State, Mobility Fund, GO (f),

  
  10,025      

4.75%, 4/1/35, Ser. A

     10,801,938   
  17,500      

4.75%, 4/1/36

     18,734,800   
  1,000      

State Public Finance Auth., Rev., Charter School Finance Corp.,

  
  

5.875%, 12/1/36, Ser. A

     1,038,050   
  3,000      

Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev.,

  
  

Baylor Health Care Systems Project, 6.25%, 11/15/29

     3,511,800   
  15,300      

Texas Municipal Gas Acquisition & Supply Corp. I Rev.,

  
  

6.25%, 12/15/26, Ser. D

     18,221,076   
  1,920      

Texas Private Activity Bond Surface Transportation Corp. Rev.,

  
  

7.00%, 6/30/40

     2,182,771   
  1,000      

Wise Cnty. Rev., Parker Cnty. Junior College Dist., 8.00%, 8/15/34

     1,096,440   
     

 

 

 
        121,572,832   
     

 

 

 
  

Virginia—0.2%

  
  1,000      

Fairfax Cnty. Industrial Dev. Auth. Rev., Inova Health Systems,

  
  

5.50%, 5/15/35, Ser. A

     1,124,150   
  2,050      

James City Cnty. Economic Dev. Auth. Rev., United Methodist Homes,

  
  

5.50%, 7/1/37, Ser. A

     1,543,199   
     

 

 

 
        2,667,349   
     

 

 

 
  

Washington—1.5%

  
  

Health Care Facs. Auth. Rev.,

  
  1,300      

Multicare Health Systems, 6.00%, 8/15/39, Ser. B (AGC)

     1,443,845   
  1,000      

Seattle Cancer Care Alliance, 7.375%, 3/1/38

     1,171,420   


PIMCO Municipal Income Fund II Schedule of Investments

February 29, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

          Value*  
  

Washington (continued)

  
$ 13,000      

Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A

   $ 13,532,090   
     

 

 

 
        16,147,355   
     

 

 

 
  

West Virginia—0.2%

  
  2,000      

Hospital Finance Auth. Rev., Highland Hospital, 9.125%, 10/1/41

     2,257,460   
     

 

 

 
  

Wisconsin—0.1%

  
  

Health & Educational Facs. Auth. Rev.,

  
  90      

Froedert & Community Health, 5.375%, 10/1/30

     91,041   
  1,000      

Prohealth Care, Inc., 6.625%, 2/15/39

     1,140,850   
     

 

 

 
        1,231,891   
     

 

 

 
  

Total Municipal Bonds & Notes (cost—$1,003,345,586)

     1,077,068,858   
     

 

 

 

 

VARIABLE RATE NOTES (e)—2.1%

  

  

California—0.5%

  
  5,000      

Health Facs. Financing Auth. Rev., 10.84%, 11/15/36, Ser. 3193 (a)(b)(d)

     5,830,050   
     

 

 

 
  

Florida—0.2%

  
  1,830      

Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System,

  
  

5.00%, 11/15/31, Ser. C

     1,911,984   
     

 

 

 
  

Illinois—0.6%

  
  6,000      

Chicago, GO, 13.36%, 1/1/34, Ser. 3190 (a)(b)(d)

     6,880,140   
     

 

 

 
  

Texas—0.6%

  
  5,365      

State, GO, 10.25%, 4/1/37, Ser. 3197 (a)(b)(d)

     6,336,602   
     

 

 

 
  

West Virginia—0.2%

  
  2,000      

Economic Dev. Auth. Rev., Appalachian Power, 5.375%, 12/1/38, Ser. A

     2,105,940   
     

 

 

 
  

Total Variable Rate Notes (cost—$20,303,589)

     23,064,716   
     

 

 

 
  

Total Investments (cost—$1,023,649,175) (g)—100.0%

   $ 1,100,133,574   
     

 

 

 


Notes to Schedule of Investments:

 

* Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services.

Portfolio securities and other financial instruments for which market quotations are not readily available, or for which a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to procedures established by the Board of Trustees, or persons acting at their discretion pursuant to procedures established by the Board of Trustees. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Short term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.

The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold and these differences could be material. The Fund’s net asset value (“NAV”) is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business.

 

(a) Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $23,997,354 representing 2.2% of total investments.
(b) 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.
(c) In default.
(d) Inverse Floater—The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on February 29, 2012.
(e) Variable Rate Notes—Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on February 29, 2012.
(f) Residual Interest Bonds held in Trust—Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
(g) At February 29, 2012, the cost basis of portfolio securities for federal income tax purposes was $972,581,061. Gross unrealized appreciation was $91,315,055, gross unrealized depreciation was $13,309,759 and net unrealized appreciation was $78,005,296. The difference between book and tax cost is attributable to inverse floater transactions.

Glossary:

AGC—insured by Assured Guaranty Corp.

AGM—insured by Assured Guaranty Municipal Corp.

AMBAC—insured by American Municipal Bond Assurance Corp.

CP—Certificates of Participation

FGIC—insured by Financial Guaranty Insurance Co.

FHA—insured by Federal Housing Administration

GO—General Obligation Bond

GTD—Guaranteed

IBC—Insurance Bond Certificate

NPFGC—insured by National Public Finance Guarantee Corp.

PSF—Public School Fund


Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:

 

   

Level 1—quoted prices in active markets for identical investments that the Fund has the ability to access

 

   

Level 2—valuations based on other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) or quotes from inactive exchanges

 

   

Level 3—valuations based on significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation technique used.

The valuation techniques used by the Fund to measure fair value during the nine months ended February 29, 2012 maximized the use of observable inputs and minimized the use of unobservable inputs.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Fund generally uses to evaluate how to classify each major category of assets and liabilities for Level 2 and Level 3, in accordance with Generally Accepted Accounting Principles.

Municipal Bonds & Notes and Variable Rate Notes—Municipal bonds and notes and variable rate notes are valued by independent pricing services based on pricing models that take into account, among other factors, information received from market makers and broker-dealers, current trades, bid-want lists, offerings, market movements, the callability of the bond or note, state of issuance, benchmark yield curves, and bond or note insurance. To the extent that these inputs are observable, the values of municipal bonds and notes and variable rate notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

A summary of the inputs used at February 29, 2012 in valuing the Fund’s assets and liabilities is listed below (refer to the Schedule of Investments for detailed information on Investments in Securities):

 

     Level 1 -
Quoted Prices
     Level 2 -
Other Significant
Observable

Inputs
     Level 3 -
Significant
Unobservable
Inputs
     Value at
2/29/12
 

Investments in Securities—Assets

           

Municipal Bonds & Notes

     —         $ 1,077,068,858         —         $ 1,077,068,858   

Variable Rate Notes

     —           23,064,716         —           23,064,716   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments

     —         $ 1,100,133,574         —         $ 1,100,133,574   
  

 

 

    

 

 

    

 

 

    

 

 

 

There were no significant transfers between Levels 1 and 2 during the nine months ended February 29, 2012.


Item 2. Controls and Procedures

(a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3 (c))), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits

 

  (a) Exhibit 99.302 Cert. – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: PIMCO Municipal Income Fund II

By /s/ Brian S. Shlissel

President & Chief Executive Officer

Date: April 20, 2012

By /s/ Lawrence G. Altadonna

Treasurer, Principal Financial & Accounting Officer

Date: April 20, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By /s/ Brian S. Shlissel

President & Chief Executive Officer

Date: April 20, 2012

By /s/ Lawrence G. Altadonna

Treasurer, Principal Financial & Accounting Officer

Date: April 20, 2012