Edgar Filing: PIMCO CALIFORNIA MUNICIPAL INCOME FUND II

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES


Investment Company Act file number	811-21077


PIMCO California Municipal Income Fund II

(Exact name of registrant as specified in charter)

1345 Avenue of the Americas, New York, New York	10105

(Address of principal executive offices)	(Zip code)

Lawrence G. Altadonna - 1345 Avenue of the Americas, New York, New York 10105

(Name and address of agent for service)


Registrant’s telephone number, including area code:	212-739-3371


Date of fiscal year end:	May 31, 2010


Date of reporting period:	May 31, 2010

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-2001. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

ITEM 1. REPORT TO SHAREHOLDERS






































Annual Report

May 31, 2010

PIMCO Municipal Income Fund II
PIMCO California Municipal Income Fund II
PIMCO New York Municipal Income Fund II

(PML LOGO) (PCK LOGO) (PNI LOGO)


	Contents

	Letter to Shareholders		2–3

	Fund Insights/Performance & Statistics		4–7

	Schedules of Investments		8–25

	Statements of Assets and Liabilities		26

	Statements of Operations		27

	Statements of Changes in Net Assets		28–29

	Statement of Cash Flows		30

	Notes to Financial Statements		31–40

	Financial Highlights		41–43

	Report of Independent Registered Public Accounting Firm		44

	Tax Information/Annual Shareholder Meetings Results		45

	Changes to the Board of Trustees		46

	Privacy Policy/Proxy Voting Policies & Procedures		47

	Dividend Reinvestment Plan		48

	Board of Trustees		49–50

	Fund Officers		51

5.31.10 | PIMCO Municipal Income Funds II Annual Report 1

Dear Shareholder:

Municipal bonds generally experienced solid gains during the past 12 months ended May 31, 2010, as the U.S. economy continued to recover from what was arguably the worst downturn since the 1930s. Real gross domestic product – the output of U.S. goods and services – grew for three consecutive quarters, expanding 2.2% and 5.6% respectively over the last half of 2009, and 3.0% during the first quarter of 2010. For most of the period, the improving economy encouraged certain investors to shift assets from the safe haven of U.S. Treasury bonds and into stocks and municipal securities. During May 2010, however, there was a partial reversal of this trend, driven largely by fiscal concerns in some European countries. This flight to safety dragged down stocks, but the $2.8 trillion municipal bond market was largely unaffected, as evidenced by the municipal yield curve, which slightly moved.

Year in Review:

For the fiscal year ended May 31, 2010:


•	PIMCO Municipal Income Fund II returned 29.87% on net asset value (“NAV”) and 25.49% on market price.

•	PIMCO California Municipal Income Fund II returned 19.90% on NAV and 16.44% on market price.

•	PIMCO New York Municipal Income Fund II returned 23.22% on NAV and 19.92% on market price.

As bond prices and yields move in opposite directions, falling yields during much of the reporting period lifted prices higher across the entire yield curve. Municipal bonds with longer-term maturities generally produced better returns than shorter-term municipals, while lower-quality municipals fared better than their higher-quality counterparts.

Even with these solid gains, municipal bonds appear attractive investments, when compared to corporate bonds – which in general experienced solid gains over much of the past year – and low-yielding U.S. Treasury bonds.

The Road Ahead – and the Case for Municipals

Three consecutive quarters of solid growth indicates that the U.S. economy is clearly on the mend. But caution is warranted. One area of concern: the fiscal situation in many states and local municipalities, which remains weak, and in some cases precarious. A joint report by the National Governors Association and the National Association of State Budget Officers warns that states – despite two years of tax increases and budget cuts – still face an estimated $127 billion in budget gaps over the next two years. California is the best known example of this fiscal duress, but “all

2 PIMCO Municipal Income Funds II Annual Report | 5.31.10

states,” warns a second study (by the Pew Center for the States) “are under varying degrees of pressure.” Adding to this problem is the declining amount of municipal bond insurance that has been available, due to the downfall of several insurers during the recession. This has added to overall investment risk for municipal bonds –though it should be pointed out that the historic default rate for municipals in general remains quite low, when compared to corporate bonds.

Challenging circumstances can present compelling opportunities for prudent municipal bond investors. From a simple supply-and-demand standpoint, fewer tax-exempt bonds are likely to come to market this year – while demand for them is being driven by rising state taxes and the expiration in December of the Bush administration’s tax cuts, which will push the top federal tax rate to 39.6%. More buy-and-hold investors are moving into the municipal market as well. This has helped reduce volatility, which in turn helped contribute to a steepening yield curve for municipals during the reporting period. Going forward, these trends may bode well for municipal securities.

Please refer to the following pages for specific information on the Funds. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds’ shareholder servicing agent at (800) 254-5197. You may also find a wide range of information and resources on our Web site, www.allianzinvestors.com/closedendfunds.

Together with Allianz Global Investors Fund Management LLC, the Funds’ investment manager and Pacific Investment Management Co. (“PIMCO”), the Funds’ sub-adviser, we thank you for investing with us.

Sincerely,




Hans W. Kertess Chairman	Brian S. Shlissel President & CEO



	Receive this report electronically and eliminate paper mailings. To enroll, go to www.allianzinvestors.com/edelivery.

5.31.10 | PIMCO Municipal Income Funds II Annual Report 3

PIMCO Municipal Income Fund II Fund Insights

May 31, 2010 (unaudited)


•	For the fiscal year ended May 31, 2010, PIMCO Municipal Income Fund II returned 29.87% on net asset value (“NAV”) and 25.49% on market price.

•	For the fiscal year ended May 31, 2010, PIMCO California Municipal Income Fund II returned 19.90% on NAV and 16.44% on market price.

•	For the fiscal year ended May 31, 2010, PIMCO New York Municipal Income Fund II returned 23.22% on NAV and 19.92% on market price.

•	High-quality municipal bond yields moved lower across the curve as the market continued to normalize during the reporting period. Treasury yields also moved lower, with a significant change toward the end of the period.

•	Municipal-to-U.S. Treasury yield ratios ended the fiscal period lower across the curve. The 10-year ratio decreased to 85.2% and the 30-year ratio decreased to 95.1%.

•	Tobacco securitization exposure contributed to returns, as this sector posted strong performance during the period and investors moved out on the risk spectrum, emerging from the global financial crisis.

•	Exposure to corporate-backed municipals added to returns as the sector posted strong performance, while utility exposure detracted as this sector underperformed the general municipal market.

•	Significant exposure to the health care sector contributed to returns as the sector outperformed, while special tax exposure was also a positive.

•	Exposure to longer maturity zero coupon municipals was positive for returns as their longer durations led them to outperform due to the downward movement in high-quality municipal yields. The Barclay’s Capital Zero Coupon Index returned 15.33% for the fiscal year.

Municipal II:
•	The municipal yield curve flattened as investors took advantage of higher yields further out on the yield curve. The Build America Bond supply removed much of the tax-exempt supply in longer maturities helping to move yields lower. 30-year maturity AAA General Obligation yields decreased 63 basis points while the two-year yield decreased 37 basis points for the same period. Significant exposure in longer maturity municipals helped performance as that portion of the curve outperformed.

•	Long municipals slightly underperformed the broader long-taxable market with the Barclays Capital Long Municipal Bond Index returning 13.53%. The Barclays Capital Long Government/Credit Index returned 15.11% and outperformed long Treasuries, as the Barclays Capital Long US Treasury Index returned 7.78%.

•	Municipal bond issuance ended 2009 with in excess of $400 billion in issuance. 2010 year-to-date issuance remained elevated with $167.64 billion issued — 10% higher than the same period last year, approximately 25% coming from Build America Bonds.

California Municipal II:
•	An underweighting to California’s General Obligation bonds negatively impacted performance as the bonds outperformed during the reporting period.

•	Municipal bonds within California outperformed the Barclays Capital Municipal Bond Index, returning 9.55% versus 8.56% during the period, respectively. The state continued to experience volatility due to uncertainty related to its budget-deficit situation as the end of the fiscal year neared. For calendar-year 2009, California led all other states with over $72 billion in total bond issuance. It continues to lead in 2010 with $25 billion in total issuance year-to-date, although this is 20% lower than the comparable period a year earlier.

•	The California portion of the Barclays Capital Long Municipal Index (22+) slightly outperformed the overall index, returning 13.58% versus 13.53%, respectively. The California municipal curve steepened with 30-year yields decreasing 70 basis points while two-year yields decreased 90 basis points. Significant exposure to longer maturities was positive for performance, as this portion of the curve outperformed.

4 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO Municipal Income Fund II Fund Insights

May 31, 2010 (unaudited) (continued)


New York Municipal II:
•	Transportation exposure was positive for performance as this sector outperformed during the fiscal period.

•	Municipal bonds within New York slightly outperformed the Barclays Capital Municipal Bond Index, returning 8.81% versus 8.56%, respectively. In 2009, issuers in New York State issued $44 billion in bonds, ranking second in the U.S. 2010 year-to-date issuance in New York was at $13.3 billion at the end of May, 15% lower than the same period a year earlier.

•	The New York portion of the Barclays Capital Long Municipal Index (22+) underperformed the overall index, returning 13.15% versus 13.53%, respectively. The New York yield curve steepened slightly during the period with 30-year yields decreasing 65 basis points and two-year yields decreasing 71 basis points. New York funds also had significant positions in the longer portions of the curve, which helped performance as longer maturity holdings outperformed in New York.

5.31.10 | PIMCO Municipal Income Funds II Annual Report 5

PIMCO Municipal Income Funds II Performance & Statistics

May 31, 2010 (unaudited)


Municipal II:
Total Return⁽¹⁾:	Market Price		NAV

1 Year	25.49	%	29.87	%

5 Year	0.67	%	0.30	%

Commencement of Operations (6/28/02) to 5/31/10	3.04	%	3.20	%

Market Price/NAV Performance:
Commencement of Operations (6/28/02) to 5/31/10


	NAV

	Market Price

(LINE GRAPH)


Market Price/NAV:

Market Price			$11.12

NAV			$10.77

Premium to NAV			3.25%

Market Price Yield⁽²⁾			7.01%

Moody’s Ratings

(as a % of total investments)

(PIE CHART)




California Municipal II:
Total Return⁽¹⁾:	Market Price		NAV

1 Year	16.44	%	19.90	%

5 Year	(1.86	)%	(4.15	)%

Commencement of Operations (6/28/02) to 5/31/10	1.05	%	0.00	%

Market Price/NAV Performance:
Commencement of Operations (6/28/02) to 5/31/10


	NAV

	Market Price

(LINE GRAPH)


Market Price/NAV:

Market Price			$9.33

NAV			$8.11

Premium to NAV			15.04%

Market Price Yield⁽²⁾			7.44%

Moody’s Ratings

(as a % of total investments)

(PIE CHART)

6 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO Municipal Income Funds II Performance & Statistics

May 31, 2010 (unaudited)


New York Municipal II:
Total Return⁽¹⁾:	Market Price		NAV

1 Year	19.92	%	23.22	%

5 Year	1.34	%	0.71	%

Commencement of Operations (6/28/02) to 5/31/10	3.14	%	3.17	%

Market Price/NAV Performance:
Commencement of Operations (6/28/02) to 5/31/10


	NAV

	Market Price

(LINE GRAPH)


Market Price/NAV:

Market Price			$11.42

NAV			$10.90

Premium to NAV			4.77%

Market Price Yield⁽²⁾			6.96%

Moody’s Ratings

(as a % of total investments)

(PIE CHART)


(1)	Past performance is no guarantee of future results. Total return is calculated by determining the percentage change in net asset value (“NAV”) or market price (as applicable) in the specified period. The calculation assumes that all income dividends and capital gain distributions, if any, have been reinvested. Total return does not reflect broker commissions or sales charges. Total return for a period of more than one year represents the average annual total return.

	Performance at market price will differ from its results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the Fund, market conditions, supply and demand for the Fund’s shares, or changes in Fund dividends.

	An investment in the Fund involves risk, including the loss of principal. Total return, market price, market yield and NAV asset will fluctuate with changes in market conditions. This data is provided for information purposes only and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. There is a onetime public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. NAV is equal to total assets attributable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(2)	Market Price Yield is determined by dividing the annualized current monthly per share dividend (comprised of net investment income) payable to common shareholders by the market price per common share at May 31, 2010.

5.31.10 | PIMCO Municipal Income Funds II Annual Report 7

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

MUNICIPAL BONDS & NOTES—98.3%
		Alabama—1.1%

$	10,000	Birmingham-Baptist Medical Centers Special Care Facs.
		Financing Auth. Rev., Baptist Health Systems, Inc.,
		5.00%, 11/15/30, Ser. A		Baa2/NR	$	8,809,100
	1,235	Montgomery BMC Special Care Facs. Financing Auth. Rev.,
		5.00%, 11/15/29, Ser. B (NPFGC)		A3/A		1,131,408
	2,650	Tuscaloosa Public Educational Building Auth. Rev.,
		Stillman College Project, 5.00%, 6/1/26, Ser. A		NR/BBB-		2,472,821

						12,413,329

		Alaska—0.7%
	3,550	Housing Finance Corp. Rev., 5.25%, 6/1/32, Ser. C (NPFGC)		Aa2/AA		3,587,133
	5,900	Northern Tobacco Securitization Corp. Rev.,
		5.00%, 6/1/46, Ser. A		Baa3/NR		3,957,248

						7,544,381

		Arizona—9.4%
		Health Facs. Auth. Rev., Banner Health,
	3,500	5.00%, 1/1/35, Ser. A		NR/A+		3,475,360
	2,860	5.50%, 1/1/38, Ser. D		NR/A+		2,940,080
	5,000	Maricopa Cnty. Pollution Control Corp. Rev.,
		5.00%, 6/1/35, Ser. A		A1/A		5,003,900
	29,700	Pima Cnty. Industrial Dev. Auth. Rev., 5.00%, 9/1/39		Aa1/AA		29,735,640
		Salt River Project Agricultural Improvement &
		Power Dist. Rev., Ser. A (k),
	41,100	5.00%, 1/1/37		Aa1/AA		42,491,235
	10,000	5.00%, 1/1/39		Aa1/AA		10,512,000
	10,500	Salt Verde Financial Corp. Rev., 5.00%, 12/1/37		A3/A		9,320,850

						103,479,065

		Arkansas—0.2%
	13,000	Dev. Finance Auth. Rev., Arkansas Cancer Research Center
		Project, zero coupon, 7/1/46 (AMBAC)		Aa2/NR		2,006,550

		California—5.3%
	6,000	Golden State Tobacco Securitization Corp. Rev.,
		5.00%, 6/1/33, Ser. A-1		Baa3/BBB		4,842,000
	2,500	Los Angeles Department of Water & Power Rev.,
		5.00%, 7/1/39, Ser. A-1 (AMBAC)		Aa3/AA-		2,576,500
	1,365	Lynwood Utility Auth. Rev., 5.00%, 6/1/29, Ser. A (AGC)		Aa3/AAA		1,385,748
	2,000	Montebello Unified School Dist., GO, 5.00%, 8/1/33 (AGM)		Aa3/AAA		2,045,600
	2,000	San Diego Cnty. Water Auth., CP,
		5.00%, 5/1/38, Ser. 2008-A (AGM)		Aa2/AAA		2,048,480
	2,000	Santa Clara Cnty. Financing Auth. Rev.,
		5.75%, 2/1/41, Ser. A (AMBAC)		A1/A+		2,108,900
	10,500	State, GO, 6.00%, 4/1/38		A1/A-		11,342,310
	4,305	Statewide Communities Dev. Auth. Rev.,
		California Baptist Univ., 9.00%, 11/1/17, Ser. B (a)(d)		NR/NR		3,700,492

8 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		California—(continued)
		Methodist Hospital Project (FHA),
$	5,500	6.625%, 8/1/29		Aa2/AA	$	6,306,795
	19,500	6.75%, 2/1/38		Aa2/AA		22,228,245

						58,585,070

		Colorado—4.7%
	5,800	Aurora Rev., Children’s Hospital Assoc., 5.00%, 12/1/40		A1/A+		5,804,524
	11,250	City & Cnty. of Denver Airport Rev.,
		5.00%, 11/15/25, Ser. B (AGM)		Aa3/AAA		11,299,950
	1,000	Denver Health & Hospital Auth. Rev., 5.625%, 12/1/40 (e)		NR/BBB		979,300
		Health Facs. Auth. Rev., Ser. A,
	1,000	American Baptist Homes, 5.90%, 8/1/37		NR/NR		838,530
	9,500	Catholic Health Initiatives, 5.50%, 3/1/32		WR/AA		9,948,210
	500	Evangelical Lutheran, 6.125%, 6/1/38		A3/A-		512,505
	18,305	Exempla, Inc., 5.625%, 1/1/33,
		(Pre-refunded @ $101, 1/1/12) (c)		A1/A-		19,937,623
	2,000	Housing & Finance Auth. Rev., Evergreen Country
		Day School, Inc. Project,
		5.875%, 6/1/37 (a)(d)		NR/BB		1,418,880
	1,430	Public Auth. for Colorado Energy Rev., 6.50%, 11/15/38		A2/A		1,568,596

						52,308,118

		Connecticut—0.1%
	1,250	Harbor Point Infrastructure Improvement Dist., Tax Allocation,
		7.875%, 4/1/39, Ser. A		NR/NR		1,317,875

		Delaware—0.1%
	1,000	State Economic Dev. Auth. Rev., Delmarva Power & Light Co.,
		5.40%, 2/1/31		Baa2/BBB		1,024,280

		Florida—5.5%
	1,000	Brevard Cnty. Health Facs. Auth. Rev., Health First, Inc. Project,
		7.00%, 4/1/39		A3/A-		1,106,640
	600	Broward Cnty. Airport Rev., 5.375%, 10/1/29, Ser. O		A1/A+		630,720
	8,500	Broward Cnty. Water & Sewer Rev., 5.25%, 10/1/34, Ser. A (k)		Aa2/AA		8,932,140
	1,000	Clearwater Rev., 5.25%, 12/1/39, Ser. A		Aa3/AA-		1,056,640
	3,000	Highlands Cnty. Health Facs. Auth. Rev.,
		Adventist Health System, 5.625%, 11/15/37, Ser. B		A1/AA-		3,121,410
	2,335	Hillsborough Cnty. Industrial Dev. Auth. Pollution Control Rev.,
		Tampa Electric Co. Project, 5.50%, 10/1/23		Baa1/BBB		2,385,389
	7,135	Jacksonville Health Facs. Auth. Rev., Ascension Health,
		5.25%, 11/15/32, Ser. A		Aa1/AA		7,288,046
	3,000	Leesburg Hospital Rev., Leesburg Regional Medical
		Center Project, 5.50%, 7/1/32		Baa1/BBB+		2,899,440
	3,490	Miami-Dade Cnty. Airport Rev., 5.50%, 10/1/36, Ser. A		A2/A-		3,587,127
	500	Sarasota Cnty. Health Facs. Auth. Rev., 5.75%, 7/1/37		NR/NR		410,040
	7,900	State Board of Education, GO, 5.00%, 6/1/38, Ser. D (k)		Aa1/AAA		8,345,086
	6,205	State Governmental Utility Auth. Rev., Barefoot Bay
		Utilities System, 5.00%, 10/1/29 (AMBAC)		WR/NR		6,215,610
	5,000	Sumter Landing Community Dev. Dist. Rev.,
		4.75%, 10/1/35, Ser. A (NPFGC)		Baa1/A		4,157,000

5.31.10 | PIMCO Municipal Income Funds II Annual Report 9

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		Florida—(continued)
$	10,000	Tallahassee Rev., 5.00%, 10/1/37 (k)		Aa1/AA	$	10,270,900
	1,500	Winter Springs Water & Sewer Rev.,
		zero coupon, 10/1/29 (FGIC-NPFGC)		WR/A+		616,935

						61,023,123

		Georgia—0.2%
	2,775	Medical Center Hospital Auth. Rev.,
		Spring Harbor Green Island Project,
		5.25%, 7/1/37		NR/NR		2,231,294

		Illinois—12.9%
	2,435	Central Lake Cnty. JT Action Water Agcy. Rev.,
		5.125%, 5/1/28, Ser. A (AMBAC)		Aa2/NR		2,537,124
		Chicago, GO, Ser. C,
	10,000	5.00%, 1/1/34 (k)		Aa2/AA-		10,252,000
	4,065	5.50%, 1/1/40 (FGIC-NPFGC)		Aa2/AA-		4,119,715
		Chicago, Special Assessment, Lake Shore East,
	3,162	6.625%, 12/1/22		NR/NR		3,033,876
	6,700	6.75%, 12/1/32		NR/NR		6,267,850
	1,250	Chicago Motor Fuel Tax Rev., 5.00%, 1/1/38, Ser. A (AGC)		Aa3/AAA		1,284,050
	5,000	Cicero, GO, 5.25%, 12/1/31 (NPFGC)		Baa1/A		5,121,600
	6,440	Cook Cnty., Capital Improvements, GO,
		5.00%, 11/15/28, Ser. A (FGIC-NPFGC)		Aa2/AA		6,502,790
		Finance Auth. Rev.,
	2,500	Christian Homes, Inc., 5.75%, 5/15/31, Ser. A		NR/NR		1,962,225
	250	Leafs Hockey Club Project, 6.00%, 3/1/37, Ser. A (b)(f)		NR/NR		62,725
	1,000	Memorial Health Systems, 5.50%, 4/1/39		A1/A+		1,001,300
	700	OSF Healthcare System, 7.125%, 11/15/37, Ser. A		A2/A		789,019
	2,000	Provena Health, 6.00%, 5/1/28, Ser. A		Baa1/BBB+		2,017,700
	1,500	Sedgebrook, Inc., 6.00%, 11/15/42, Ser. A (f)		NR/NR		547,455
		Health Facs. Auth. Rev., Elmhurst Memorial Healthcare,
	20,100	5.625%, 1/1/28		Baa1/NR		19,823,223
	68,470	State Sports Facs. Auth. Rev., 5.50%,
		6/15/30 (AMBAC) (l)		WR/A		70,612,426
		Village of Hillside, Tax Allocation, Mannheim Redev. Project,
	4,500	6.55%, 1/1/20		NR/NR		4,222,890
	2,900	7.00%, 1/1/28		NR/NR		2,551,826

						142,709,794

		Indiana—0.5%
		Finance Auth. Rev.,
	1,500	Duke Energy Indiana, Inc., 6.00%, 8/1/39, Ser. B		NR/A		1,625,100
	2,500	United States Steel Corp., 6.00%, 12/1/26		Ba2/BB		2,558,450
	2,250	Fort Wayne Pollution Control Rev., General Motors Corp.
		Project, 6.20%, 10/15/25 (f)		WR/NR		675,000
	990	Vigo Cnty. Hospital Auth. Rev., Union Hospital, Inc.,
		5.80%, 9/1/47 (a)(d)		NR/NR		853,994

						5,712,544

10 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*			Value

		Iowa—4.2%
		Finance Auth. Rev.,
		Deerfield Retirement Community, Inc., Ser. A,
$	250	5.50%, 11/15/27		NR/NR	$	188,110
	1,075	5.50%, 11/15/37		NR/NR		743,449
	4,500	Edgewater LLC Project, 6.75%, 11/15/42		NR/NR		4,167,720
	850	Wedum Walnut Ridge LLC Project,
		5.625%, 12/1/45, Ser. A (b)		NR/NR		544,034
	46,000	Tobacco Settlement Auth. Rev., 5.60%, 6/1/34, Ser. B		Baa3/BBB		40,198,480

						45,841,793

		Kansas—0.1%
	500	Dev. Finance Auth. Rev., Adventist Health, 5.75%, 11/15/38		A1/AA-		546,860

		Kentucky—0.8%
		Economic Dev. Finance Auth. Rev.,
		Baptist Healthcare Systems, Ser. A,
	2,000	5.375%, 8/15/24		Aa3/NR		2,172,900
	2,500	5.625%, 8/15/27		Aa3/NR		2,717,650
	2,500	Catholic Healthcare Partners, 5.25%, 10/1/30		A1/AA-		2,525,425
	1,000	Owensboro Medical Healthcare Systems,
		6.375%, 6/1/40, Ser. A		Baa2/NR		1,029,470

						8,445,445

		Louisiana—4.4%
		Local Gov’t Environmental Facs. & Community Dev. Auth. Rev.,
		Woman’s Hospital Foundation, Ser. A,
	750	5.875%, 10/1/40		A3/BBB+		736,905
	1,000	6.00%, 10/1/44		A3/BBB+		999,900
	3,300	Public Facs. Auth. Rev., Ochsner Clinic Foundation Project,
		5.50%, 5/15/47, Ser. B		Baa1/NR		3,001,614
	44,395	Tobacco Settlement Financing Corp. Rev.,
		5.875%, 5/15/39, Ser. 2001-B		Baa3/BBB		43,515,979

						48,254,398

		Maryland—0.5%
		Health & Higher Educational Facs. Auth. Rev.,
	1,000	Adventist Healthcare, 5.75%, 1/1/25, Ser. A		Baa2/NR		1,017,050
	1,010	King Farm Presbyterian Community, 5.30%, 1/1/37, Ser. A		NR/NR		725,099
	4,050	Washington Cnty. Hospital, 6.00%, 1/1/43		NR/BBB-		4,116,218

						5,858,367

		Massachusetts—6.5%
	4,610	Dev. Finance Agcy. Rev., Adventcare Project,
		6.75%, 10/15/37, Ser. A		NR/NR		4,005,076
	2,900	State College Building Auth. Rev., 5.50%, 5/1/39, Ser. A		Aa2/AA-		3,189,043
	51,830	State Turnpike Auth. Rev., 5.00%, 1/1/37, Ser. A (NPFGC)		A3/A		51,998,966
	12,050	Water Res. Auth. Rev., 4.75%, 8/1/37, Ser. A (AGM) (k)		Aa1/AAA		12,051,446

						71,244,531

		Michigan—3.1%
	1,000	Detroit, GO, 5.25%, 11/1/35		Aa3/AA-		993,010
	4,545	Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A		NR/NR		3,008,426

5.31.10 | PIMCO Municipal Income Funds II Annual Report 11

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		Michigan—(continued)
$	800	Public Educational Facs. Auth. Rev., Bradford Academy,
		6.50%, 9/1/37 (a)(d)		NR/BBB-	$	774,152
	3,000	Royal Oak Hospital Finance Auth. Rev.,
		William Beaumont Hospital, 8.25%, 9/1/39		A1/A		3,584,550
		State Hospital Finance Auth. Rev.,
	5,000	Ascension Health, 5.25%, 11/15/26, Ser. B		Aa1/AA		5,147,450
		Oakwood Group, Ser. A,
	13,500	5.75%, 4/1/32		A2/A		13,568,580
	1,925	6.00%, 4/1/22		A2/A		1,969,930
	6,000	Tobacco Settlement Finance Auth. Rev., 6.00%, 6/1/48, Ser. A		NR/BBB		4,476,960

						33,523,058

		Minnesota—0.6%
	280	Minneapolis, Tax Allocation, Grant Park Project, 5.35%, 2/1/30		NR/NR		236,034
	1,500	Minneapolis Rev., Providence Project, 5.75%, 10/1/37, Ser. A		NR/NR		1,356,900
		North Oaks Rev., Presbyterian Homes North Oaks,
	2,640	6.00%, 10/1/33		NR/NR		2,584,613
	1,530	6.125%, 10/1/39		NR/NR		1,508,320
	500	Oronoco Rev., Wedum Shorewood Campus Project,
		5.40%, 6/1/41		NR/NR		428,800
	400	St. Louis Park Rev., Nicollett Health Services, 5.75%, 7/1/39		NR/A		397,184

						6,511,851

		Mississippi—0.4%
	3,605	Business Finance Corp. Rev., System Energy Res.,
		Inc. Project, 5.875%, 4/1/22		Ba1/BBB		3,618,555
	740	Dev. Bank Special Obligation Rev., Capital Projects and
		Equipment Acquisition, 5.00%, 7/1/24, Ser. A-2 (AMBAC)		WR/NR		710,341

						4,328,896

		Nevada—0.3%
	1,450	Clark Cnty., GO, 5.00%, 6/1/31 (FGIC-NPFGC)		Aaa/AA+		1,464,978
	1,620	State, GO, 5.00%, 5/15/28, Ser. A (FGIC-NPFGC)		Aa1/NR		1,622,819

						3,087,797

		New Hampshire—0.2%
	2,000	Business Finance Auth. Rev., Elliot Hospital,
		6.125%, 10/1/39, Ser. A		Baa1/BBB+		2,037,480
	360	Health & Education Facs. Auth. Rev., Catholic Medical Center,
		6.125%, 7/1/32, Ser. A		Baa1/BBB+		363,654

						2,401,134

		New Jersey—3.1%
	950	Burlington Cnty. Bridge Commission Rev., The Evergreens Project,
		5.625%, 1/1/38		NR/NR		812,896
		Economic Dev. Auth. Rev.,
	525	Arbor Glen, 6.00%, 5/15/28, Ser. A		NR/NR		460,619
		Kapkowski Road Landfill Project, Special Assessment,
	4,000	5.75%, 10/1/21		Baa3/NR		4,093,280
	11,405	5.75%, 4/1/31		Baa3/NR		11,431,460

12 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		New Jersey—(continued)
		Health Care Facs. Financing Auth. Rev.,
$	1,500	St. Peters Univ. Hospital, 5.75%, 7/1/37		Baa2/BBB-	$	1,518,270
	1,830	Trinitas Hospital, 5.25%, 7/1/30, Ser. A		Baa3/BBB-		1,649,251
	3,300	State Educational Facs. Auth. Rev., Fairfield Dickinson Univ.,
		6.00%, 7/1/25, Ser. D		NR/NR		3,405,237
	2,000	State Turnpike Auth. Rev., 5.25%, 1/1/40, Ser. E		A3/A+		2,115,900
	13,150	Tobacco Settlement Financing Corp. Rev.,
		5.00%, 6/1/41, Ser. 1-A		Baa3/BBB		9,073,763

						34,560,676

		New Mexico—0.6%
		Farmington Pollution Control Rev.,
	2,000	5.80%, 4/1/22, Ser. A		Baa3/BB+		2,001,820
	3,000	5.80%, 4/1/22, Ser. C		Baa3/BB+		3,002,730
	2,000	5.90%, 6/1/40, Ser. D (e)		Baa3/BB+		2,005,980

						7,010,530

		New York—2.1%
	1,200	Erie Cnty. Industrial Dev. Agcy. Rev., Orchard Park, Inc. Project,
		6.00%, 11/15/36, Ser. A		NR/NR		1,008,552
		Liberty Dev. Corp. Rev., Goldman Sachs Headquarters,
	1,505	5.25%, 10/1/35		A1/A		1,509,078
	10,000	5.25%, 10/1/35 (k)		A1/A		10,027,100
	1,100	Nassau Cnty. Industrial Dev. Agcy. Rev.,
		Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A		NR/NR		1,049,675
		New York City Municipal Water Finance Auth.
		Water & Sewer Rev.,
	2,830	5.00%, 6/15/37, Ser. D (k)		Aa1/AAA		2,955,199
		Second Generation Resolutions,
	4,000	4.75%, 6/15/35, Ser. DD (k)		Aa2/AA+		4,059,640
	2,000	5.00%, 6/15/39, Ser. GG-1		Aa2/AA+		2,105,380
	250	Suffolk Cnty. Industrial Dev. Agcy. Rev.,
		New York Institute of Technology,
		5.00%, 3/1/26		Baa2/BBB+		254,415

						22,969,039

		North Carolina—0.1%
		Medical Care Commission Rev.,
	550	Salemtowne, 5.10%, 10/1/30		NR/NR		498,850
	1,000	Village at Brookwood, 5.25%, 1/1/32		NR/NR		722,660

						1,221,510

		North Dakota—0.3%
	3,710	Stark Cnty. Healthcare Rev., Benedictine Living Communities,
		6.75%, 1/1/33		NR/NR		3,663,217

		Ohio—1.2%
	1,000	Higher Educational Fac. Commission Rev.,
		Univ. Hospital Health Systems, 6.75%, 1/15/39, Ser. 2009-A		A2/A		1,070,010
	7,500	Lorain Cnty. Hospital Rev., Catholic Healthcare, 5.375%, 10/1/30		A1/AA-		7,568,700

5.31.10 | PIMCO Municipal Income Funds II Annual Report 13

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		Ohio—(continued)
$	1,000	Montgomery Cnty. Rev., Miami Valley Hospital,
		6.25%, 11/15/39, Ser. A		Aa3/NR	$	1,050,100
		State Rev.,
	550	Ashland Univ. Project, 6.25%, 9/1/24 (e)		Ba1/NR		550,016
	3,000	Cleveland Clinic Health System, 5.50%, 1/1/39, Ser. B		Aa2/AA-		3,143,970

						13,382,796

		Oregon—0.2%
	1,000	Clackamas Cnty. Hospital Fac. Auth. Rev., Legacy Health System,
		5.50%, 7/15/35, Ser. A		A2/A+		1,042,810
	1,155	State Department of Administrative Services, CP,
		5.25%, 5/1/39, Ser. A		Aa2/AA-		1,219,703

						2,262,513

		Pennsylvania—4.2%
		Cumberland Cnty. Municipal Auth. Rev.,
		Messiah Village Project, Ser. A,
	750	5.625%, 7/1/28		NR/BBB-		656,932
	670	6.00%, 7/1/35		NR/BBB-		599,241
	3,250	Harrisburg Auth. Rev., Harrisburg Univ. of Science,
		6.00%, 9/1/36, Ser. B		NR/NR		2,865,135
		Higher Educational Facs. Auth. Rev.,
	850	Edinboro Univ. Foundation, 6.00%, 7/1/43 (e)		Baa3/BBB-		852,499
	750	Thomas Jefferson Univ., 5.00%, 3/1/40		A1/AA-		770,918
	500	Luzerne Cnty. Industrial Dev. Auth. Rev.,
		Pennsylvania American Water Co., 5.50%, 12/1/39		A2/A		515,280
		Montgomery Cnty. Higher Education & Health Auth. Rev.,
		Abington Memorial Hospital, Ser. A,
	5,000	5.125%, 6/1/27		NR/A		5,019,900
	3,750	5.125%, 6/1/32		NR/A		3,732,375
	17,000	Philadelphia, GO, 5.25%, 12/15/32, Ser. A (AGM)		Aa3/AAA		17,675,070
	11,600	Philadelphia Hospitals & Higher Education Facs. Auth. Rev.,
		Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A		Baa3/BBB		11,602,552
	500	Philadelphia Water Rev., 5.25%, 1/1/36, Ser. A		A1/A		517,070
	500	Pittsburgh & Allegheny Cnty. Sports & Exhibition Auth. Rev.,
		5.00%, 2/1/29 (AMBAC)		WR/NR		466,600
	1,000	Westmoreland Cnty. Industrial Dev. Auth. Rev.,
		Excela Health Project, 5.125%, 7/1/30 (e)		A3/NR		990,060

						46,263,632

		Rhode Island—6.6%
	76,200	Tobacco Settlement Financing Corp. Rev.,
		6.25%, 6/1/42, Ser. A		Baa3/BBB		72,859,392

		South Carolina—1.5%
	1,000	Greenwood Cnty. Rev., Self Regional Healthcare,
		5.375%, 10/1/39		A2/A		1,009,050
		Jobs-Economic Dev. Auth. Rev., Ser. B,
	500	Anmed Health, 5.50%, 2/1/38 (AGC)		NR/AAA		524,170
	13,850	Bon Secours Health System, 5.625%, 11/15/30		A3/A-		13,891,827
	1,000	State Public Service Auth. Rev., 5.25%, 1/1/39, Ser. B		Aa2/AA-		1,069,740

						16,494,787

14 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		Tennessee—0.7%
$	1,750	Claiborne Cnty. Industrial Dev. Board Rev.,
		Lincoln Memorial Univ. Project,
		6.625%, 10/1/39		NR/NR	$	1,780,817
	1,000	Johnson City Health & Educational Facs. Board Rev.,
		Mountain States Health Alliance, 6.00%, 7/1/38		Baa1/BBB+		1,020,400
	500	Sullivan Cnty. Health Educational & Housing Facs. Board Rev.,
		Wellmont Health Systems Project, 5.25%, 9/1/36, Ser. C		NR/BBB+		448,275
		Tennessee Energy Acquisition Corp. Rev.,
	3,000	5.00%, 2/1/23, Ser. C		Baa1/A		2,870,250
	700	5.25%, 9/1/21, Ser. A		Ba3/BB+		691,173
	700	5.25%, 9/1/22, Ser. A		Ba3/BB+		687,547

						7,498,462

		Texas—13.0%
	130	Aubrey Independent School Dist., GO,
		5.50%, 2/15/33 (PSF-GTD)		Aaa/NR		138,289
	6,500	Brazos Cnty. Health Facs. Dev. Corp. Rev., 5.375%, 1/1/32		NR/A-		6,389,695
	2,500	Dallas Rev., Dallas Civic Center, 5.25%, 8/15/38 (AGC)		Aa3/AAA		2,584,575
		Harris Cnty. Cultural Education Facs. Finance Corp. Rev.,
		Texas Children’s Hospital Project,
	3,750	5.25%, 10/1/29		Aa2/AA		3,886,838
	12,700	5.50%, 10/1/39		Aa2/AA		13,187,045
	700	HFDC of Central Texas, Inc. Rev., Village at Gleannloch Farms,
		5.50%, 2/15/37, Ser. A		NR/NR		530,327
	5,500	Houston Airport Rev., 5.00%, 7/1/25, Ser. C (FGIC-NPFGC)		A2/A		5,502,860
	3,170	Little Elm Independent School Dist., GO,
		5.30%, 8/15/29, Ser. A (PSF-GTD)		NR/AAA		3,334,269
		Municipal Gas Acquisition & Supply Corp. I Rev.,
	450	5.25%, 12/15/25, Ser. A		A2/A		435,604
	15,300	6.25%, 12/15/26, Ser. D		A2/A		16,260,687
		North Harris Cnty. Regional Water Auth. Rev.,
	10,300	5.25%, 12/15/33		A1/A+		10,613,944
	10,300	5.50%, 12/15/38		A1/A+		10,697,477
		North Texas Tollway Auth. Rev.,
	6,250	4.75%, 1/1/29 (FGIC-NPFGC)		A2/A		6,249,750
	5,000	5.625%, 1/1/33, Ser. B		A2/A-		5,239,850
	1,200	5.75%, 1/1/33, Ser. F		A3/BBB+		1,259,220
	1,250	6.25%, 1/1/39, Ser. A		A2/A-		1,376,162
	2,000	Sabine River Auth. Pollution Control Rev.,
		5.20%, 5/1/28, Ser. C		Caa3/NR		1,004,300
	10,000	San Antonio Electric & Gas Systems Rev., 5.00%, 2/1/32 (k)		Aa1/AA		10,565,900
		State, Mobility Fund, GO (k),
	10,025	4.75%, 4/1/35, Ser. A		Aaa/AA+		10,127,756
	17,500	4.75%, 4/1/36		Aaa/AA+		17,703,175
	3,250	State, Water Financial Assistance, GO, 5.00%, 8/1/36		Aaa/AA+		3,336,808
	1,000	State Public Finance Auth. Rev., 5.875%, 12/1/36, Ser. A		Baa3/BBB-		978,320
	8,880	State Turnpike Auth. Rev., 5.00%, 8/15/42, Ser. A (AMBAC)		Baa1/BBB+		8,886,660

5.31.10 | PIMCO Municipal Income Funds II Annual Report 15

PIMCO Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		Texas—(continued)
$	3,000	Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev.,
		Baylor Health Care Systems Project, 6.25%, 11/15/29		Aa2/AA-	$	3,347,700

						143,637,211

		Virginia—0.2%
	1,000	Fairfax Cnty. Industrial Dev. Auth. Rev., Inova Health Systems,
		5.50%, 5/15/35, Ser. A		Aa2/AA+		1,076,030
	2,050	James City Cnty. Economic Dev. Auth. Rev.,
		United Methodist Homes, 5.50%, 7/1/37, Ser. A		NR/NR		1,260,586

						2,336,616

		Washington—1.6%
	1,850	Central Puget Sound Regional Transit Auth. Rev.,
		4.75%, 2/1/28 (FGIC-NPFGC)		Aa1/AAA		1,850,185
		Health Care Facs. Auth. Rev.,
	1,300	Multicare Health Systems, 6.00%, 8/15/39, Ser. B (AGC)		Aa3/AAA		1,396,798
	1,000	Seattle Cancer Care Alliance, 7.375%, 3/1/38		A3/NR		1,119,820
	13,000	Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A		Baa2/BBB		13,468,650

						17,835,453

		Wisconsin—1.1%
		Health & Educational Facs. Auth. Rev.,
	90	Froedert & Community Health, 5.375%, 10/1/30		NR/AA-		91,378
	1,000	Prohealth Care, Inc., 6.625%, 2/15/39		A1/A+		1,087,670
	10,000	State Rev., 6.00%, 5/1/36, Ser. A		Aa3/AA-		11,021,300

						12,200,348


		Total Municipal Bonds & Notes (cost—$1,051,682,519)				1,084,595,735


VARIABLE RATE NOTES (h)—1.7%
		Florida—0.2%
	1,830	Highlands Cnty. Health Facs. Auth. Rev.,
		Adventist Health System, 5.00%, 11/15/31, Ser. C		A1/AA-		1,830,805

		Illinois—1.0%
	5,000	Chicago, GO, 1.00%, 1/1/34, Ser. 3190 (a)(d)(e)(g)		NR/NR		5,377,950
	5,000	State, GO, 8.03%, 4/1/27, Ser. 783 (AGC) (a)(d)(g)		Aa3/NR		5,280,200

						10,658,150

		Texas—0.3%
	3,335	JPMorgan Chase Putters/Drivers Trust Rev.,
		1.00%, 5/15/18, Ser. 3709 (a)(d)(e)(g)		NR/AAA		3,929,631

		West Virginia—0.2%
	2,000	Economic Dev. Auth. Rev., Appalachia Power,
		5.375%, 12/1/38, Ser. A		Baa2/BBB		1,998,540


		Total Variable Rate Notes (cost—$18,111,759)				18,417,126


		Total Investments (cost—$1,069,794,278)—100.0%			$	1,103,012,861

16 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO California Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

CALIFORNIA MUNICIPAL BONDS & NOTES—91.1%
$	2,000	Alhambra Rev., Atherton Baptist Homes,
		7.625%, 1/1/40, Ser. A		NR/NR	$	2,093,100
	5,300	Assoc. of Bay Area Gov’t Finance Auth. for Nonprofit Corps. Rev.,
		Odd Fellows Home of California,
		5.20%, 11/15/22, Ser. A (CA Mtg. Ins.)		NR/A-		5,387,503
	2,000	Bay Area Gov’t Assoc. Lease Rev., Capital Projects,
		5.00%, 7/1/32, Ser. 2002-1 (AMBAC)		WR/AA		2,061,500
		Bay Area Toll Auth. Rev., San Francisco Bay Area, Ser. F-1,
	5,000	5.00%, 4/1/34		Aa3/AA		5,159,750
	20,000	5.00%, 4/1/39 (k)		Aa3/AA		20,532,800
	1,000	Chula Vista Rev., San Diego Gas & Electric,
		5.875%, 2/15/34, Ser. B		Aa3/A+		1,110,940
		City & Cnty. of San Francisco,
	3,035	Airports Commission Rev., 4.50%, 5/1/28, Ser. 2 (NPFGC)		A1/A		2,936,939
	300	Capital Improvement Projects, CP, 5.25%, 4/1/31, Ser. A		Aa3/AA-		308,730
	1,410	Community College Financing Auth. Rev.,
		5.00%, 8/1/27, Ser. A (AMBAC)		WR/NR		1,378,148
	1,110	Corona-Norco Unified School Dist. No. 98-1, Special Tax,
		5.10%, 9/1/25 (AMBAC)		WR/NR		1,102,940
		Corona-Norco Unified School Dist. Public Financing Auth.,
		Special Tax, Ser. A,
	305	5.65%, 9/1/16		NR/NR		309,133
	160	5.75%, 9/1/17		NR/NR		161,322
	530	6.00%, 9/1/20		NR/NR		535,470
	1,000	6.00%, 9/1/25		NR/NR		1,000,720
	4,150	6.10%, 9/1/32		NR/NR		4,065,506
	9,760	Coronado Community Dev. Agcy., Tax Allocation,
		4.875%, 9/1/35 (AMBAC)		NR/AA-		8,841,194
	3,000	Dinuba Financing Auth. Rev., Public Works Projects,
		5.10%, 8/1/32 (NPFGC)		Baa1/A		3,077,730
	8,300	El Dorado Irrigation Dist. & El Dorado Water Agcy., CP,
		5.75%, 8/1/39, Ser. A (AGC)		Aa3/AAA		8,708,443
	1,500	Foothill-Eastern Transportation Corridor Agcy. Rev.,
		5.875%, 1/15/27 (IBC-NPFGC)		Baa1/A		1,530,390
	1,440	Fremont Community Facs. Dist. No. 1, Special Tax,
		Pacific Commons, 5.30%, 9/1/30		NR/NR		1,243,915
		Golden State Tobacco Securitization Corp. Rev.,
	13,885	5.00%, 6/1/45 (AMBAC-TCRS)		A2/A-		12,705,608
	1,500	5.00%, 6/1/45, Ser. A		A2/BBB+		1,357,425
	6,000	5.00%, 6/1/45, Ser. A (FGIC-TCRS)		A2/A-		5,489,460
	4,500	5.75%, 6/1/47, Ser. A-1		Baa3/BBB		3,283,605
	500	Hartnell Community College Dist., GO,
		zero coupon, 8/1/34, Ser. 2002-D (l)		Aa2/AA-		239,055
		Health Facs. Financing Auth. Rev.,
		Adventist Health System, Ser. A,
	500	5.00%, 3/1/33		NR/A		477,090
	250	5.75%, 9/1/39		NR/A		255,912

5.31.10 | PIMCO Municipal Income Funds II Annual Report 17

PIMCO California Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

$	3,000	Catholic Healthcare West, 6.00%, 7/1/39, Ser. A		A2/A	$	3,171,780
	1,200	Children’s Hospital of Los Angeles, 5.25%, 7/1/38 (AGM)		Aa3/AAA		1,194,708
	500	Children’s Hospital of Orange Cnty., 6.50%, 11/1/38, Ser. A		NR/A		538,225
	1,500	Scripps Health, 5.00%, 11/15/36, Ser. A		A1/AA-		1,501,080
	175	Infrastructure & Economic Dev. Bank Rev., 5.25%, 2/1/38		A1/A+		176,304
	1,000	Irvine Unified School Dist., Special Tax, 6.70%, 9/1/35		NR/NR		1,045,090
	1,000	Lancaster Redev. Agcy., Tax Allocation, 6.875%, 8/1/39		NR/A		1,117,660
	500	Lancaster Redev. Agcy. Rev., Capital Improvements Projects,
		5.90%, 12/1/35		NR/A		498,625
	5,300	Livermore-Amador Valley Water Management Agcy. Rev.,
		5.00%, 8/1/31, Ser. A (AMBAC)		Aa2/NR		5,323,956
	7,500	Long Beach Bond Finance Auth. Rev., Long Beach Natural Gas,
		5.50%, 11/15/37, Ser. A		A2/A		7,242,450
	10,000	Long Beach Unified School Dist., GO, 5.25%, 8/1/33, Ser. A (k)		Aa2/AA-		10,473,200
	2,685	Los Angeles, Equipment & Real Property Project, CP,
		5.00%, 10/1/27, Ser. AU (NPFGC)		A2/A+		2,699,445
	4,895	Los Angeles, Real Property Project, CP,
		5.00%, 2/1/27, Ser. T (NPFGC)		A1/A+		4,906,258
	10,000	Los Angeles Community College Dist., GO,
		5.00%, 8/1/33, Ser. F-1 (k)		Aa1/AA		10,330,900
		Los Angeles Department of Water & Power Rev.,
	15,000	4.75%, 7/1/30, Ser. A-2 (AGM) (k)		Aa3/AAA		15,331,950
	16,950	5.125%, 7/1/41, Ser. A (FGIC-NPFGC-TCRS)		Aa2/AA		17,059,666
	11,000	Los Angeles Unified School Dist., GO, 5.00%, 1/1/34, Ser. I		Aa2/AA-		11,192,390
		Manteca Redev. Agcy., Tax Allocation,
	7,295	5.00%, 10/1/32 (AGM)		Aa3/AAA		7,140,784
	10,000	5.00%, 10/1/36 (AMBAC)		WR/A		8,888,400
	5,330	Manteca Unified School Dist. No. 89-2, Special Tax,
		5.00%, 9/1/29, Ser. C (NPFGC)		Baa1/A		5,336,289
	4,000	Merced Cnty., Juvenile Justice Correctional Fac., CP,
		5.00%, 6/1/32 (AMBAC)		A1/NR		4,040,760
	5,000	Metropolitan Water Dist. of Southern California Rev.,
		5.00%, 7/1/37, Ser. A (k)		Aa1/AAA		5,233,201
	4,700	Moreno Valley Unified School Dist. Community Facs.
		Dist. No. 2004-6, Special Tax, 5.20%, 9/1/36		NR/NR		3,746,276
	1,400	M-S-R Energy Auth. Rev., 6.50%, 11/1/39, Ser. B		NR/A		1,548,050
	5,000	Oakland Unified School Dist., Alameda Cnty., GO,
		6.125%, 8/1/29, Ser. A		A1/BBB+		5,389,950
	4,750	Palomar Pomerado Health, CP, 6.75%, 11/1/39		Baa2/NR		5,091,240
	10,000	Placentia-Yorba Linda Unified School Dist., CP,
		5.00%, 10/1/32 (FGIC-NPFGC)		A1/A+		10,181,700
	3,510	Riverside, CP, 5.00%, 9/1/33 (AMBAC)		WR/A+		3,434,184
		Riverside Unified School Dist. Community Facs.
		School Dist. No. 15, Special Tax, Ser. A,
	1,000	5.25%, 9/1/30		NR/NR		879,670
	1,000	5.25%, 9/1/35		NR/NR		839,780

18 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO California Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		Roseville Redev. Agcy., Tax Allocation, Ser. B (NPFGC),
$	2,230	5.00%, 9/1/27		A2/A	$	2,232,364
	3,365	5.00%, 9/1/32		A2/A		3,191,635
	1,985	5.00%, 9/1/33		A2/A		1,867,905
	7,500	San Bernardino Community College Dist., GO,
		6.25%, 8/1/33, Ser. A		Aa2/AA-		8,464,125
	4,300	San Diego Cnty. Water Auth., CP,
		5.00%, 5/1/29, Ser. A (NPFGC)		Aa2/AA+		4,400,276
		San Diego Public Facs. Financing Auth. Rev.,
	11,000	5.00%, 8/1/32 (NPFGC)		Aa3/A+		11,131,780
	4,000	5.25%, 8/1/38, Ser. A		Aa2/AA-		4,208,360
	1,000	5.25%, 5/15/39, Ser. A		Aa3/A+		1,047,970
	1,500	Fire & Life Safety Facs. Project,
		5.00%, 4/1/32, Ser. B (NPFGC)		A2/A		1,430,895
	2,800	San Diego Regional Building Auth. Rev.,
		Cnty. Operations Center & Annex, 5.375%, 2/1/36, Ser. A		Aa3/AA+		2,961,588
	5,000	San Diego Unified School Dist., GO,
		4.75%, 7/1/27, Ser. D-2 (AGM)		Aa1/AAA		5,151,250
	14,970	San Jose Libraries, Parks & Public Safety Projects, GO,
		5.00%, 9/1/32 (NPFGC) (k)		Aaa/AAA		15,316,405
	1,150	San Jose Unified School Dist., GO,
		5.00%, 8/1/27, Ser. A (AGM)		Aa2/AAA		1,187,122
	1,260	Santa Cruz Cnty., CP, 5.25%, 8/1/32		A1/NR		1,299,753
	1,500	Santa Cruz Cnty. Redev. Agcy., Tax Allocation,
		Live Oak/Soquel Community, 7.00%, 9/1/36, Ser. A		A1/A		1,677,330
		State, GO,
	2,500	5.00%, 9/1/31		A1/A-		2,486,850
	7,000	5.00%, 4/1/38		A1/A-		6,804,840
	11,000	6.00%, 4/1/38		A1/A-		11,882,420
		State Public Works Board Rev.,
	3,000	5.75%, 10/1/30, Ser. G-1		A2/BBB+		3,084,750
	2,000	California State Univ., 6.00%, 11/1/34, Ser. J		Aa3/BBB+		2,107,120
	7,915	Regents Univ., 5.00%, 3/1/33, Ser. A		Aa2/AA-		8,015,837
		Statewide Communities Dev. Auth. Rev.,
	3,455	Bentley School, 6.75%, 7/1/32 (a)(b)(m)
		(acquisition cost—$3,533,895;
		purchased 9/19/02-10/7/03)		NR/NR		3,149,578
		Catholic Healthcare West,
	1,800	5.50%, 7/1/31, Ser. D		A2/A		1,845,468
	1,800	5.50%, 7/1/31, Ser. E		A2/A		1,845,468
		Huntington Park Charter School Project, Ser. A,
	250	5.15%, 7/1/30		NR/NR		192,938
	1,250	5.25%, 7/1/42		NR/NR		905,625
	500	International School of the Peninsula Project,
		5.00%, 11/1/29		NR/NR		368,310
	2,770	Kaiser Permanente, 5.50%, 11/1/32, Ser. A		WR/A+		2,791,578
	1,000	Lancer Student Housing Project, 7.50%, 6/1/42		NR/NR		1,014,990
	9,700	Los Angeles Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.)		NR/A-		9,377,378

5.31.10 | PIMCO Municipal Income Funds II Annual Report 19

PIMCO California Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		Methodist Hospital Project (FHA),
$	2,000	6.25%, 8/1/24		Aa2/AA	$	2,276,360
	2,400	6.625%, 8/1/29		Aa2/AA		2,752,056
	8,800	6.75%, 2/1/38		Aa2/AA		10,031,208
	3,700	St. Joseph, 5.75%, 7/1/47, Ser. A (FGIC)		A1/AA-		3,754,686
	1,365	Windrush School, 5.50%, 7/1/37		NR/NR		1,081,981
	1,480	Statewide Financing Auth. Tobacco Settlement Rev.,
		5.625%, 5/1/29, Ser. A		Baa3/NR		1,473,947
		Tobacco Securitization Agcy. Rev.,
	4,500	Alameda Cnty., 6.00%, 6/1/42		Baa3/NR		3,590,640
	1,800	Stanislaus Cnty., 5.875%, 6/1/43, Ser. A		Baa3/NR		1,481,616
	1,000	Tustin Unified School Dist., Special Tax,
		6.00%, 9/1/40, Ser. 2006-1		NR/BBB		1,010,560
		Univ. of California Rev.,
	5,500	4.75%, 5/15/35, Ser. F (AGM) (k)		Aa1/AAA		5,519,525
	5,000	4.75%, 5/15/35, Ser. G (FGIC-NPFGC) (k)		Aa1/AA		4,999,850
	5,650	4.75%, 5/15/38, Ser. B		Aa2/AA-		5,496,433
		Ventura Cnty. Community College Dist., GO,
	10,000	5.00%, 8/1/27, Ser. A (NPFGC) (k)		Aa2/AA		10,338,400
	5,000	5.50%, 8/1/33, Ser. C		Aa2/AA		5,264,750
	1,555	Ventura Unified School Dist., GO, 5.00%, 8/1/32, Ser. F (AGM)		Aa3/AAA		1,567,238


		Total California Municipal Bonds & Notes (cost—$404,252,640)				432,989,457


OTHER MUNICIPAL BONDS & NOTES—3.6%
		New York—0.7%
	1,250	Liberty Dev. Corp. Rev., Goldman Sachs Headquarters,
		5.25%, 10/1/35		A1/A		1,253,388
	1,900	New York City Municipal Water Finance Auth.
		Water & Sewer Rev., 5.00%, 6/15/37, Ser. D (k)		Aa1/AAA		1,984,056

						3,237,444

		Puerto Rico—2.9%
	2,200	Aqueduct & Sewer Auth. Rev., 6.00%, 7/1/38, Ser. A		Baa1/BBB-		2,326,654
	4,000	Electric Power Auth. Rev., 5.25%, 7/1/40, Ser. XX		A3/BBB+		4,037,240
	2,505	Public Buildings Auth. Gov’t Facs. Rev.,
		5.00%, 7/1/36, Ser. I (GTD)		A3/BBB-		2,472,535
		Sales Tax Financing Corp. Rev., Ser. A,
	1,600	5.00%, 8/1/40 (AGM) (k)		Aa3/AAA		1,629,360
	3,000	5.50%, 8/1/42		A1/A+		3,141,720

						13,607,509


		Total Other Municipal Bonds & Notes (cost—$15,605,685)				16,844,953


CALIFORNIA VARIABLE RATE NOTES (a)(d)(g)(h)—3.4%
	6,035	Desert Community College Dist., GO,
		7.86%, 8/1/32, Ser. 3016-1 (AGC)		NR/AAA		6,349,484
	4,000	Los Angeles Community College Dist., GO,
		11.43%, 8/1/33, Ser. 3096		NR/AA		4,392,520

20 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO California Municipal Income Fund II Schedule of Investments

May 31, 2010


Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

$	5,000	San Diego Community College Dist., GO, 9.786%, 2/1/17		NR/AA+	$	5,582,200


		Total California Variable Rate Notes (cost—$14,955,154)				16,324,204


CORPORATE BONDS & NOTES (j)—0.7%
		Financial Services—0.7%
	3,540	International Lease Finance Corp., 5.40%, 2/15/12
		(cost—$2,983,802)		B1/BB+		3,309,900


SHORT-TERM INVESTMENTS—1.2%
		Corporate Notes (j)—1.0%
		Financial Services—1.0%
	5,000	SLM Corp., 0.476%, 7/26/10, FRN (cost—$4,937,145)		Ba1/BBB-		4,974,810

		California Variable Rate Demand Notes (h)(i)—0.2%
	700	Health Facs. Financing Auth. Rev., Adventist Health System,
		0.25%, 6/1/10, Ser. B (cost—$700,000)		VMIG1/NR		700,000


		Total Short-Term Investments (cost—$5,637,145)				5,674,810


		Total Investments (cost—$443,434,426)—100.0%			$	475,143,324

5.31.10 | PIMCO Municipal Income Funds II Annual Report 21


PIMCO New York Municipal Income Fund II Schedule of Investments
May 31, 2010

Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

NEW YORK MUNICIPAL BONDS & NOTES—84.8%
$	1,000	Chautauqua Cnty. Industrial Dev. Agcy. Rev., Dunkirk Power Project, 5.875%, 4/1/42		Baa3/BB+	$	1,029,240
	2,400	Erie Cnty. Industrial Dev. Agcy. Rev., Orchard Park, Inc. Project, 6.00%, 11/15/36, Ser. A		NR/NR		2,017,104
		Liberty Dev. Corp. Rev., Goldman Sachs Headquarters,
	3,000	5.25%, 10/1/35		A1/A		3,008,130
	4,120	5.25%, 10/1/35 (k)		A1/A		4,131,165
	3,500	5.50%, 10/1/37		A1/A		3,662,505
	500	Long Island Power Auth. Rev., 5.00%, 9/1/34, Ser. A (AMBAC)		A3/A-		510,300
		Metropolitan Transportation Auth. Rev.,
	1,850	5.00%, 11/15/30, Ser. A (AGM)		Aa3/AAA		1,903,169
	2,000	5.00%, 11/15/34, Ser. B		NR/AA		2,098,220
	8,000	5.25%, 11/15/31, Ser. E		A2/A		8,251,760
	7,000	5.35%, 7/1/31, Ser. B		Aa3/AAA		7,208,950
	5,000	5.50%, 11/15/39, Ser. A		NR/AA		5,388,200
	2,870	Mortgage Agcy. Rev., 4.75%, 10/1/27, Ser. 128		Aa1/NR		2,904,009
	2,400	Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A		NR/NR		2,290,200
	4,000	New York City, GO, 5.00%, 3/1/33, Ser. I		Aa2/AA		4,099,600
		New York City Health & Hospital Corp. Rev., Ser. A,
	1,100	5.375%, 2/15/26		A1/A+		1,119,294
	2,000	5.45%, 2/15/26		A1/A+		2,038,160
		New York City Industrial Dev. Agcy. Rev.,
	975	Eger Harbor Project, 4.95%, 11/20/32, Ser. A (GNMA)		NR/AA+		992,940
	1,415	Liberty Interactive Corp., 5.00%, 9/1/35		Ba2/BB+		1,252,134
	1,500	Queens Baseball Stadium, 6.50%, 1/1/46 (AGC)		Aa3/AAA		1,671,930
	1,190	Staten Island Univ. Hospital Project, 6.45%, 7/1/32, Ser. C		Ba2/NR		1,182,991
	1,500	United Jewish Appeal Federation Project, 5.00%, 7/1/27, Ser. A		Aa1/NR		1,567,365
		Yankee Stadium,
	2,750	5.00%, 3/1/31 (FGIC)		Baa3/BBB-		2,774,750
	2,400	5.00%, 3/1/36 (NPFGC)		Baa1/A		2,315,616
	4,900	7.00%, 3/1/49 (AGC)		Aa3/AAA		5,680,962
	1,500	New York City Municipal Water Finance Auth. Water & Sewer Rev., 5.25%, 6/15/40, Ser. EE		Aa2/AA+		1,618,530
	500	Second Generation Resolutions, 5.00%, 6/15/39, Ser. GG-1		Aa2/AA+		526,345
		New York City Transitional Finance Auth. Rev.,
	9,000	5.00%, 11/1/27, Ser. B		Aaa/AAA		9,415,440
	5,000	5.25%, 1/15/39, Ser. S-3		Aa3/AA-		5,342,500
		New York City Trust for Cultural Res. Rev.,
	2,700	Julliard School, 5.00%, 1/1/34, Ser. A		Aa2/AA		2,882,196
	6,785	Wildlife Conservation Society, 5.00%, 2/1/34 (FGIC-NPFGC)		Aa3/AA-		7,011,280
	3,600	Port Auth. of New York & New Jersey Rev., 5.00%, 4/15/32, Ser. 125 (AGM)		Aa2/AAA		3,706,596
		State Dormitory Auth. Rev.,
	3,000	5.00%, 3/15/38, Ser. A		NR/AAA		3,167,820
	7,490	5.50%, 5/15/31, Ser. A (AMBAC)		Aa3/AA-		8,400,859
	2,600	Catholic Health of Long Island, 5.10%, 7/1/34		A3/BBB+		2,592,382

22 PIMCO Municipal Income Funds II Annual Report | 5.31.10


PIMCO New York Municipal Income Fund II Schedule of Investments
May 31, 2010

Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

$	2,000	Kaleida Health Hospital, 5.05%, 2/15/25 (FHA)		NR/NR	$	2,034,920
	5,300	Lenox Hill Hospital, 5.50%, 7/1/30		Ba1/NR		5,118,634
	1,320	Long Island Univ., 5.25%, 9/1/28 (Radian)		Baa3/NR		1,326,204
		Memorial Sloan-Kettering Cancer Center,
	2,750	5.00%, 7/1/35, Ser. 1		Aa2/AA		2,845,810
	2,000	5.00%, 7/1/36, Ser. A-1		Aa2/AA		2,086,300
	2,100	New York Univ., 5.00%, 7/1/38, Ser. A		Aa3/AA-		2,209,599
	1,000	New York Univ. Hospital Center, 5.625%, 7/1/37, Ser. B		Baa2/BBB		1,026,040
	5,850	North General Hospital, 5.00%, 2/15/25		NR/AA-		5,960,448
	600	North Shore-Long Island Jewish Health System, 5.50%, 5/1/37, Ser. A		Baa1/A-		620,022
	5,000	Rochester General Hospital, 5.00%, 12/1/35 (Radian)		WR/NR		4,758,000
		Teachers College,
	4,270	5.00%, 7/1/32 (NPFGC)		A1/NR		4,332,897
	3,000	5.50%, 3/1/39		A1/NR		3,161,430
	3,000	Yeshiva Univ., 5.125%, 7/1/34 (AMBAC)		Aa3/NR		3,089,310
	5,000	State Environmental Facs. Corp. Rev., 5.125%, 6/15/38, Ser. A		Aa1/AA+		5,391,400
	1,000	State Thruway Auth. Rev., 4.75%, 1/1/29, Ser. G (AGM)		Aa3/AAA		1,025,340
	6,000	State Urban Dev. Corp. Rev., 5.00%, 3/15/36, Ser. B-1 (k)		NR/AAA		6,367,260
		Triborough Bridge & Tunnel Auth. Rev.,
	710	5.00%, 1/1/32, Ser. A (FGIC-TCRS)		Aa2/AA-		727,182
	5,000	5.25%, 11/15/34, Ser. A-2 (k)		Aa2/AA-		5,403,350
	150	Troy Rev., Rensselaer Polytechnic Institute, 5.125%, 9/1/40, Ser. A		A3/A		153,045
	1,815	Ulster Cnty. Industrial Dev. Agcy. Rev., 6.00%, 9/15/37, Ser. A		NR/NR		1,454,668
	2,000	Warren & Washington Cntys. Industrial Dev. Agcy. Rev., Glens Falls Hospital Project, 5.00%, 12/1/35, Ser. A (AGM)		Aa3/AAA		2,022,980
	600	Yonkers Industrial Dev. Agcy. Rev., Sarah Lawrence College Project, 6.00%, 6/1/41, Ser. A		NR/BBB+		627,558


		Total New York Municipal Bonds & Notes (cost—$167,411,741)				175,505,039


OTHER MUNICIPAL BONDS & NOTES—10.1%
		California—0.5%
	1,000	Health Facs. Financing Auth. Rev., Catholic Healthcare West, 6.00%, 7/1/39, Ser. A		A2/A		1,057,260

		Florida—1.0%
	1,000	Clearwater Rev., 5.25%, 12/1/39, Ser. A		Aa3/AA-		1,056,640
	1,000	Miami-Dade Cnty. Airport Rev., 5.50%, 10/1/36, Ser. A		A2/A-		1,027,830

						2,084,470

		Louisiana—0.5%
	1,000	East Baton Rouge Sewerage Commission Rev., 5.25%, 2/1/39, Ser. A		Aa2/AA-		1,078,530

		Puerto Rico—7.6%
	4,600	Aqueduct & Sewer Auth. Rev., 6.00%, 7/1/38, Ser. A		Baa1/BBB-		4,864,822
	5,675	Children’s Trust Fund Rev., 5.625%, 5/15/43		Baa3/BBB		5,109,430

5.31.10 | PIMCO Municipal Income Funds II Annual Report 23


PIMCO New York Municipal Income Fund II Schedule of Investments
May 31, 2010

Principal Amount (000s)			Credit Rating (Moody’s/S&P)*		Value

		Puerto Rico—(continued)
		Sales Tax Financing Corp. Rev., Ser. A,
$	14,250	zero coupon, 8/1/54 (AMBAC)		Aa2/AA-	$	901,312
	12,900	zero coupon, 8/1/56		Aa2/AA-		673,380
	2,000	5.00%, 8/1/40 (AGM) (k)		Aa3/AAA		2,036,700
	1,000	5.50%, 8/1/42		A1/A+		1,047,240
	1,000	5.75%, 8/1/37		A1/A+		1,074,280

						15,707,164

		U.S. Virgin Islands—0.5%
	1,000	Public Finance Auth. Rev., 6.00%, 10/1/39, Ser. A		Baa3/NR		1,056,180


		Total Other Municipal Bonds & Notes (cost—$21,457,216)				20,983,604


NEW YORK VARIABLE RATE NOTES (a)(d)(g)(h)—3.0%
		JPMorgan Chase Putters/Drivers Trust Rev.,
	5,000	7.814%, 7/1/33, Ser. 3382		Aa1/NR		5,558,800
	500	8.26%, 6/15/31, Ser. 3223		NR/AA+		600,480

		Total New York Variable Rate Notes (cost—$5,393,662)				6,159,280


SHORT-TERM INVESTMENTS—2.1%
		Corporate Notes (j)—2.1%
		Financial Services—2.1%
	4,300	American General Finance Corp., 4.625%, 9/1/10 (cost—$3,992,309)		B2/B		4,278,500


		Total Investments (cost—$198,254,928)—100.0%			$	206,926,423

24 PIMCO Municipal Income Funds II Annual Report | 5.31.10

PIMCO Municipal Income Funds II Notes to Schedule of Investments

May 31, 2010




Notes to Schedule of Investments:
*	Unaudited.

(a)	Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $21,335,299, representing 1.9% of total investments in PIMCO Municipal Income Fund II, $19,473,782, representing 4.1% of total investments in PIMCO California Municipal Income Fund II and $6,159,280, representing 3.0% of total investments in PIMCO New York Municipal Income Fund II.
(b)	Illiquid.
(c)	Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate).
(d)	144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.
(e)	When-issued or delayed-delivery. To be settled/delivered after May 31, 2010.
(f)	In default.
(g)	Inverse Floater—The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on May 31, 2010.
(h)	Variable Rate Notes—Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on May 31, 2010.
(i)	Maturity date shown is date of next put.
(j)	All or partial amount segregated for the benefit of the counterparty as collateral for reverse repurchase agreements.
(k)	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.
(l)	Step Bond—Coupon is a fixed rate for an initial period then resets at a specific date and rate.
(m)	Restricted. The aggregate acquisition cost of such securities is $3,533,895 in California Municipal Fund II. The aggregate market value of $3,149,578 represents 0.7% of total investments in California Municipal Fund II.

Glossary:

AGC — insured by Assured Guaranty Corp.

AGM — insured by Assured Guaranty Municipal Corp.

AMBAC — insured by American Municipal Bond Assurance Corp.

CA Mtg. Ins. — insured by California Mortgage Insurance

CA St. Mtg. — insured by California State Mortgage

CP — Certificates of Participation

FGIC — insured by Financial Guaranty Insurance Co.

FHA — insured by Federal Housing Administration

FRN — Floating Rate Note. The interest rate disclosed reflects the rate in effect on May 31, 2010.

GNMA — insured by Government National Mortgage Association

GO — General Obligation Bond

GTD — Guaranteed

IBC — Insurance Bond Certificate

NPFGC — insured by National Public Finance Guarantee Corp.

NR — Not Rated

PSF — Public School Fund

Radian — insured by Radian Guaranty, Inc.

TCRS — Temporary Custodian Receipts

WR — Withdrawn Rating

See accompanying Notes to Financial Statements | 5.31.10 | PIMCO Municipal Income Funds II Annual Report 25


PIMCO Municipal Income Funds II Statements of Assets and Liabilities
May 31, 2010


	Municipal II			California Municipal II			New York Municipal II

Assets:
Investments, at value (cost—$1,069,794,278, $443,434,426 and $198,254,928, respectively)		$1,103,012,861			$475,143,324			$206,926,423

Cash		282,872			1,193			502,710

Interest receivable		17,891,854			7,200,421			2,877,265

Receivable for investments sold		562,500			—			—

Prepaid expenses and other assets		47,706			44,637			22,066

Total Assets		1,121,797,793			482,389,575			210,328,464


Liabilities:
Payable for floating rate notes issued		89,161,972			54,305,833			9,186,395

Payable for investments purchased		14,955,208			—			—

Dividends payable to common and preferred shareholders		3,924,855			1,960,287			718,692

Investment management fees payable		557,629			229,237			107,990

Interest payable		221,905			125,332			14,409

Interest payable for reverse repurchase agreements		—			2,904			1,742

Payable for reverse repurchase agreements		—			7,890,123			3,860,325

Accrued expenses and other liabilities		387,366			2,060,254			277,910

Total Liabilities		109,208,935			66,573,970			14,167,463

Preferred Shares ($25,000 liquidation preference per share applicable to an aggregate of 14,680, 6,520 and 3,160 shares issued and outstanding, respectively)		367,000,000			163,000,000			79,000,000

Net Assets Applicable to Common Shareholders		$645,588,858			$252,815,605			$117,161,001


Composition of Net Assets Applicable to Common Shareholders:
Common Stock:
Par value ($0.00001 per share)		$600			$312			$108

Paid-in-capital in excess of par		849,293,428			431,650,819			152,127,023

Undistributed (dividends in excess of) net investment income		9,284,682			(1,960,287	)		1,108,502

Accumulated net realized loss on investments		(246,204,471	)		(208,564,341	)		(44,767,239	)

Net unrealized appreciation of investments		33,214,619			31,689,102			8,692,607

Net Assets Applicable to Common Shareholders		$645,588,858			$252,815,605			$117,161,001

Common Shares Issued and Outstanding		59,969,244			31,170,312			10,753,476

Net Asset Value Per Common Share		$10.77			$8.11			$10.90

26 PIMCO Municipal Income Funds II Annual Report | 5.31.10 | See accompanying Notes to Financial Statements


PIMCO Municipal Income Funds II Statements of Operations
Year ended May 31, 2010


	Municipal II			California Municipal II			New York Municipal II

Investment Income:
Interest	$	60,731,519		$	27,159,527		$	12,164,754


Expenses:
Investment management fees		6,272,962			2,615,689			1,229,594

Interest expense		839,327			546,314			110,837

Auction agent fees and commissions		588,626			275,803			138,991

Custodian and accounting agent fees		128,169			91,798			62,992

Trustees’ fees and expenses		99,765			42,701			19,195

Shareholder communications		97,100			38,150			18,451

Audit and tax services		77,964			51,015			41,459

Legal fees		56,104			7,793			9,000

New York Stock Exchange listing fees		48,326			25,134			21,520

Transfer agent fees		35,572			35,705			34,885

Insurance expense		31,553			14,528			6,816

Miscellaneous		40,438			11,356			3,826

Total expenses		8,315,906			3,755,986			1,697,566

Less: investment management fees waived		(36,532	)		(15,844	)		(7,361	)

custody credits earned on cash balances		(536	)		(160	)		(110	)

Net expenses		8,278,838			3,739,982			1,690,095


Net Investment Income		52,452,681			23,419,545			10,474,659


Realized and Change In Unrealized Gain (Loss)
Net realized gain (loss) on Investments		151,024			(2,327,882	)		(770,215	)

Net change in unrealized appreciation/depreciation of Investments		103,180,602			23,246,648			13,497,488

Net realized and change in unrealized gain on investments		103,331,626			20,918,766			12,727,273

Net Increase in Net Assets Resulting from Investment Operations		155,784,307			44,338,311			23,201,932

Dividends on Preferred Shares from Net Investment Income		(1,651,157	)		(777,175	)		(363,065	)

Net Increase in Net Assets Applicable to Common Shareholders Resulting from Investment Operations	$	154,133,150		$	43,561,136		$	22,838,867

See accompanying Notes to Financial Statements | 5.31.10 | PIMCO Municipal Income Funds II Annual Report 27


PIMCO Municipal Income Funds II	Statements of Changes in Net Assets
	Applicable to Common Shareholders


	Municipal II

	Year ended May 31,
	2010			2009

Investment Operations:
Net investment income	$	52,452,681		$	60,464,037

Net realized gain (loss) on investments, futures contracts and swaps		151,024			(169,917,405	)

Net change in unrealized appreciation/depreciation of investments and futures contracts		103,180,602			(122,853,789	)

Net increase (decrease) in net assets resulting from investment operations		155,784,307			(232,307,157	)


Dividends on Preferred Shares from Net Investment Income		(1,651,157	)		(11,200,932	)

Net increase (decrease) in net assets applicable to common shareholders resulting from investment operations		154,133,150			(243,508,089	)


Dividends and Distributions to Common Shareholders from:
Net investment income		(46,637,024	)		(46,297,957	)

Return of Capital		—			—

Total dividends and distributions to common shareholders		(46,637,024	)		(46,297,957	)


Capital Share Transactions:
Reinvestment of dividends		4,046,441			4,112,714

Total increase (decrease) in net assets applicable to common shareholders		111,542,567			(285,693,332	)


Net Assets Applicable to Common Shareholders:
Beginning of year		534,046,291			819,739,623

End of year (including undistributed (dividends in excess of) net investment income of $9,284,682 and $5,090,783; $(1,960,287) and $(2,178,470); $1,108,502 and $(467,589); respectively)	$	645,588,858		$	534,046,291


Common Shares Issued in Reinvestment of Dividends and Distributions		400,876			419,882

28 PIMCO Municipal Income Funds II Annual Report | 5.31.10 | See accompanying Notes to Financial Statements


PIMCO Municipal Income Funds	Statements of Changes in Net Assets
	Applicable to Common Shareholders (continued)


	California Municipal II						New York Municipal II

	Year ended May 31,						Year ended May 31,
	2010			2009			2010			2009


Investment Operations:
Net investment income	$	23,419,545		$	26,314,683		$	10,474,659		$	10,661,737

Net realized gain (loss) on investments, futures contracts and swaps		(2,327,882	)		(157,389,702	)		(770,215	)		(34,859,903	)

Net change in unrealized appreciation/depreciation of investments and futures contracts		23,246,648			(17,820,169	)		13,497,488			(9,038,410	)

Net increase (decrease) in net assets resulting from investment operations		44,338,311			(148,895,188	)		23,201,932			(33,236,576	)

Dividends on Preferred Shares from Net Investment Income		(777,175	)		(5,697,951	)		(363,065	)		(2,025,371	)

Net increase (decrease) in net assets applicable to common shareholders resulting from investment operations		43,561,136			(154,593,139	)		22,838,867			(35,261,947	)


Dividends and Distributions to Common Shareholders from:
Net investment income		(24,003,858	)		(24,711,497	)		(8,524,998	)		(8,466,985	)

Return of Capital		—			(1,187,791	)		—			—

Total dividends and distributions to common shareholders		(24,003,858	)		(25,899,288	)		(8,524,998	)		(8,466,985	)


Capital Share Transactions:
Reinvestment of dividends		1,843,810			2,137,595			721,255			754,665

Total increase (decrease) in net assets applicable to common shareholders		21,401,088			(178,354,832	)		15,035,124			(42,974,267	)


Net Assets Applicable to Common Shareholders:
Beginning of year		231,414,517			409,769,349			102,125,877			145,100,144