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, 2005

Date of reporting period: November 30, 2005

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, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.



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


S e m i - A n n u a l   R e p o r t          
N o v e m b e r   3 0,   2 0 0 5          




      Contents     
     
Letter to Shareholders  1   
     
Performance & Statistics  2-4   
     
Schedules of Investments  5-25   
     
Statements of Assets and Liabilities  26   
     
Statements of Operations  27            
     
Statements of Changes in Net Assets  28-29   
     
Notes to Financial Statements  30-35   
     
Financial Highlights  36-41   
     
Matters Relating to the Trustees Consideration     
of the Investment Management and Portfolio     
Management Agreements  42-43   
     
Annual Shareholder Meetings Results  44   

 

 


      

PIMCO Municipal Income Funds II Letter to Shareholders

January 25, 2006

Dear Shareholder:

We are pleased to provide you with the semi-annual report of PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II, and PIMCO New York Municipal Income Fund II (collectively, “PIMCO Municipal Income Funds II”) for the six-month period ended November 30, 2005.

During the period, the Federal Reserve raised short-term interest rates four times for a total increase of 100 basis points. These actions caused the national, California and New York yield curves to flatten: while municipal yields rose across the curve, shorter-maturity issues experienced the steepest climb.

Within this climate, all three municipal markets produced relatively flat total returns. The Lehman Brothers Municipal Bond Index, a widely used benchmark for the national municipal bond market, returned 0.36% for the six-month period. The Lehman Brothers California Insured Municipal Bond Index returned 0.46%, while the Lehman Brothers New York Insured Municipal Bond Index returned 0.03% .

Please refer to the following pages for specific information on each of the PIMCO Municipal Income Funds II. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Fund’s shareholder servicing agent at (800) 331-1710. You can also visit our Web site at www.allianzinvestors.com.

Together with Allianz Global Investors Fund Management LLC, the Fund’s investment manager, and Pacific Investment Management Company LLC, the Funds’ sub-adviser, we thank you for investing with us.

We remain dedicated to serving your financial needs.

Sincerely,


Robert E. Connor

Chairman


Brian S. Shlissel

President & Chief Executive Officer

 

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 1


PIMCO Municipal Income Fund II Performance & Statistics
November 30, 2005 (unaudited)
Symbol:  Primary Investments:  Inception Date: 
PML  Municipal fixed-income  June 28, 2002 
  securities, the interest from   
Objective:  which is exempt from federal  Total Net Assets(1): : 
To provide current income  income tax.  $1,350.2 million 
exempt from federal income tax.     
    Portfolio Manager: 
    Mark McCray 
     

Total Return(2):  Market Price  Net Asset Value (“NAV”) 



Six Months 
 5.14% 
1.05% 
1 Year 
15.82% 
7.41% 
Commencement of Operations (6/28/02) to 11/30/05 
 7.69% 
7.42% 


Common Share Market Price/NAV Performance:
Commencement of Operations (6/28/02) to 11/30/05
Market Price/NAV:   


Market Price  $15.26 


NAV  $14.46 


Premium to NAV  5.53% 


Market Price Yield(3)  6.63% 


Moody's Ratings
(as a % of total investments)

(1) Inclusive of net assets attributable to Preferred Shares outstanding.

(2) Past performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the beginning of the period and expressing the result as a percentage. The calculation assumes that all income dividends and capital gain distributions have been reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of greater than one year represents the average annual total return. Total return for a period of less than one year is not annualized.

An investment in the Fund involves risk, including the loss of principal. Total return, price, yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. A portion of the income generated by the Fund may be subject to federal, state and local taxes, and may at times be subject to the alternative minimum tax. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(3) Market Price Yield is determined by dividing the annualized current monthly per share dividend payable to common shareholders by the market price per common share at November 30, 2005.

2 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.05


PIMCO California Municipal Income Fund II Performance & Statistics
November 30, 2005 (unaudited)
Symbol:  Primary Investments:  Inception Date: 
PCK  Municipal fixed-income  June 28, 2002 
  securities, the interest from   
Objective:  which is exempt from federal  Total Net Assets (1): 
To provide current income  and California State income  $696.0 million 
exempt from federal and  tax.   
California State income tax.    Portfolio Manager: 
    Mark McCray 
     

Total Return(2):  Market Price  Net Asset Value (“NAV”) 



Six Months 
 8.41% 
1.76% 
1 Year 
18.72% 
9.29% 
Commencement of Operations (6/28/02) to 11/30/05 
  7.79% 
6.92% 


Common Share Market Price/NAV Performance:
Commencement of Operations (6/28/02) to 11/30/05
Market Price/NAV:   


Market Price  $15.48 


NAV  $14.38 


Premium to NAV  7.65% 


Market Price Yield(3)  6.30% 


Moody's Ratings
(as a % of total investments)

(1) Inclusive of net assets attributable to Preferred Shares outstanding.

(2) Past performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the beginning of the period and expressing the result as a percentage. The calculation assumes that all income dividends have been reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of greater than one year represents the average annual total return. Total return for a period of less than one year is not annualized.

An investment in the Fund involves risk, including the loss of principal. Total return, price, yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. A portion of the income generated by the Fund may be subject to federal, state and local taxes, and may at times be subject to the alternative minimum tax. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(3) Market Price Yield is determined by dividing the annualized current monthly per share dividend payable to common shareholders by the market price per common share at November 30, 2005.

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 3


PIMCO New York Municipal Income Fund II Performance & Statistics
November 30, 2005 (unaudited)
Symbol:  Primary Investments:  Inception Date: 
PNI  Municipal fixed-income  June 28, 2002 
  securities, the interest from   
Objective:  which is exempt from federal,  Total Net Assets (1): 
To provide current income  New York State and New York  $240.6 million 
exempt from federal, New York  City income tax.   
State and New York City income    Portfolio Manager: 
tax.    Mark McCray 
     

Total Return(2):  Market Price  Net Asset Value (“NAV”) 



Six Months 
 7.82% 
1.55% 
1 Year 
15.39% 
10.15% 
Commencement of Operations (6/28/02) to 11/30/05 
 7.68% 
6.85% 


Common Share Market Price/NAV Performance:
Commencement of Operations (6/28/02) to 11/30/05
Market Price/NAV:   


Market Price  $15.44 


NAV  $14.36 


Premium to NAV  7.52% 


Market Price Yield(3)  6.31% 


Moody's Ratings
(as a % of total investments)


(1) Inclusive of net assets attributable to Preferred Shares outstanding.

(2) Past performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the beginning of the period and expressing the result as a percentage. The calculation assumes that all income dividends have been reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of greater than one year represents the average annual total return. Total return for a period of less than one year is not annualized.

An investment in the Fund involves risk, including the loss of principal. Investment return, price, yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. A portion of the income generated by the Fund may be subject to federal, state and local taxes, and may at times be subject to the alternative minimum tax. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(3) Market Price Yield is determined by dividing the annualized current monthly per share dividend payable to common shareholders by the market price per common share at November 30, 2005.

4 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.05


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







MUNICIPAL BONDS & NOTES—90.3% 
     

  Alabama—3.9%       
$10,000 
  Birmingham Baptist Medical Centers Special Care Fac.       
     Financing Auth. Rev., 5.00%, 11/15/30, Ser. A  Baa1/BAA1   
$ 
9,694,800 
  Birmingham Waterworks & Sewer Board Rev., Ser. B (MBIA),       
1,145 
     5.00%, 1/1/27  Aaa/AAA     
1,179,316 
10,000 
     5.00%, 1/1/37  Aaa/AAA     
10,226,700 
15,000 
  Daphne Special Care Facs. Financing Auth. Rev.,       
 
   zero coupon, 8/15/28, (Pre-refunded @ $100, 8/15/08) (b) 
Aaa/AAA     
13,350,750 
1,750 
  Huntsville Health Care Auth. Rev., 5.75%, 6/1/32, Ser. B  A2/NR     
1,863,680 
16,580 
  Jefferson Cnty. Sewer Rev., 4.75%, 2/1/38, Ser. B (FGIC)       
     (Pre-refunded @ $100, 8/1/12) (b)  Aaa/AAA     
17,668,477 
 

         
53,983,723 
 

  Alaska—0.3%       
3,550 
  State Housing Finance Corp. Rev., 5.25%, 6/1/32, Ser. C (MBIA)  Aaa/AAA     
3,577,619 
 

  Arizona—0.1%       
1,300 
  Health Fac. Auth. Hospital System Rev., 5.75%, 12/1/32  NR/BBB     
1,357,473 
 

  California—2.3%       
9,610 
  Alameda Corridor Transportation Auth. Rev.,       
     zero coupon, 10/1/16, Ser. A (AMBAC)  Aaa/AAA     
5,974,825 
  Golden State Tobacco Securitization Corp.,       
     Tobacco Settlement Rev., Ser. 2003-A-1       
3,300 
         6.25%, 6/1/33  Baa3/BBB     
3,582,909 
9,000 
         6.75%, 6/1/39  Baa3/BBB     
10,051,110 
1,000 
  Rancho Cucamonga Community Facs. Dist., Special Tax,       
     6.30%, 9/1/23, Ser. A  NR/NR     
1,059,290 
4,000 
  Southern California Public Power Auth., Transmission Project Rev.,       
     zero coupon, 7/1/13  Aa3/A+     
2,913,440 
  University of California Rev.,       
4,430 
     4.75%, 5/15/37, Ser. C (MBIA)  AAA/AAA     
4,394,117 
2,900 
     4.75%, 5/15/38, Ser. B  Aa3/AA-     
2,858,356 
 

         
30,834,047 
 

  Colorado—4.9%       
30,000 
  Dawson Ridge Dist. No. 1, GO, zero coupon, 10/1/22, Ser. A  Aaa/NR     
13,397,400 
5,000 
  Denver City & Cnty., CP, 5.50%, 12/1/25, Ser. B (AMBAC)       
     (Pre-refunded @ $101, 12/1/10) (b)  Aaa/AAA     
5,493,750 
  Health Fac. Auth. Rev.,       
25,000 
     Catholic Health Initiatives, 5.50%, 3/1/32  Aa2/AA     
26,851,000 
18,305 
     Exempla, Inc., 5.625%, 1/1/33, Ser. A  A1/A-     
19,045,071 
6,500 
 
   Retirement Fac. Rev., Liberty Height, zero coupon, 7/15/22 
Aaa/AAA     
2,932,280 
 

         
67,719,501 
 

  District of Columbia—1.3%       
17,500 
  Washington D.C. Convention Center Auth. Tax Rev.,       
     4.75%, 10/1/28 (AMBAC)  Aaa/AAA     
17,512,600 
 


11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 5


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







    Florida—3.6%       
$ 6,520    Brevard Cnty. Health Facs. Auth. Rev., 5.00%, 4/1/34 (d)  A2/A   
$ 
6,451,344 
8,000    Highlands Cnty. Health Facs. Auth. Rev., Adventist/Sunbelt,       
       6.00%, 11/15/31, Ser. A  A2/A+     
8,633,200 
2,335    Hillsborough Cnty. Industrial Dev. Auth., Pollution Control Rev.,       
       Tampa Electric Co. Project, 5.50%, 10/1/23  Baa2/BBB-     
2,433,093 
635    Hillsborough Cnty. Industrial Dev. Rev., Health Fac. Project,       
       5.625%, 8/15/23, Ser. A  Baa2/BBB     
651,637 
7,135    Jacksonville Health Facs. Auth. Rev., 5.25%, 11/15/32, Ser. A  Aa2/AA     
7,397,283 
11,500    Lakeland Hospital System Rev., Regional Health System,       
       5.50%, 11/15/32  A1/NR     
12,111,570 
3,000    Leesburg Hospital Rev., Leesburg Regional Medical       
       Center Project, 5.50%, 7/1/32  A3/A-     
3,093,180 
    Orange Cnty. Health Fac. Auth. Rev., Adventist Health System,       
2,550       5.625%, 11/15/32  A2/A+     
2,705,219 
5,000       6.25%, 11/15/24  A2/A+     
5,557,650 
1,500    Winter Springs Water & Sewer Rev., zero coupon, 10/1/29 (FGIC)  Aaa/AAA     
463,620 


           
49,497,796 


    Georgia—0.7%       
4,000    Atlanta Water & Wastewater Rev., 5.00%, 11/1/39, Ser. A (MBIA)  Aaa/AAA     
4,074,400 
1,500    Grantor Trust Gov’t, CP, 4.75%, 6/1/28, Ser. A (MBIA)  Aaa/AAA     
1,529,205 
9,600    Richmond Cnty. Dev. Auth. Rev., zero coupon, 12/1/21  Aaa/NR     
4,503,840 


           
10,107,445 


    Hawaii—1.4%       
19,170    Honolulu City & Cnty. Wastewater System Rev.,       
       First Board Resolution, 4.75%, 7/1/28 (FGIC)  Aaa/NR     
19,373,394 


    Illinois—19.2%       
    Central Lake Cnty. Water Agcy. Rev., Ser. A (AMBAC),       
3,610       5.125%, 5/1/28  Aaa/NR     
3,759,887 
8,150       5.125%, 5/1/32  Aaa/NR     
8,439,325 
5,050    Chicago, GO, 5.125%, 1/1/29, Ser. A (FGIC),  Aaa/AAA     
5,212,863 
    Chicago, Lake Shore East, Special Assessment,       
3,162       6.625%, 12/1/22  NR/NR     
3,415,118 
6,700       6.75%, 12/1/32  NR/NR     
7,243,772 
5,110    Chicago, Neighborhoods Alive 21 Project, GO,       
       5.00%, 1/1/33 (AMBAC)  Aaa/AAA     
5,249,810 
    Chicago Board of Education School Reform, GO (FGIC),       
15,535       zero coupon, 12/1/16, Ser. A  Aaa/AAA     
9,547,034 
5,000       zero coupon, 12/1/28, Ser. A  Aaa/AAA     
1,603,000 
4,500       zero coupon, 12/1/31  Aaa/AAA     
1,215,630 
    Chicago City Colleges, GO (FGIC),       
32,670       zero coupon, 1/1/37  Aaa/AAA     
6,894,677 
29,145       zero coupon, 1/1/38  Aaa/AAA     
5,831,914 
32,670       zero coupon, 1/1/39  Aaa/AAA     
6,217,428 
7,000    Chicago Midway Airport Rev., 5.00%, 1/1/31, Ser. B (MBIA)  Aaa/AAA     
7,160,090 
5,000    Cicero, GO, 5.25%, 12/1/31 (MBIA)  Aaa/AAA     
5,269,850 
    Dev. Finance Auth. Retirement Housing Rev., Regency Park,       
10,000       zero coupon, 7/15/23  NR/AAA     
4,256,000 
134,650       zero coupon, 7/15/25  NR/AAA     
51,513,050 

6 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







$20,100    Health Facs. Auth. Rev., Elmurst Memorial Healthcare,       
       5.625%, 1/1/28  A2/NR   
$ 
21,022,389 
5,000    Illinois Health Facs. Auth., Condell Medical Center Rev.,       
       5.50%, 5/15/32  Baa2/BAA2     
5,105,750 
1,000    McHenry & Kane Cnty. Community Consolidated School       
       Dist. 158, GO, zero coupon, 1/1/12 (FGIC)  Aaa/AAA     
784,370 
    Metropolitan Pier & Exposition Auth. Rev., (MBIA),       
60,000       zero coupon, 12/15/30  Aaa/AAA     
17,733,000 
50,000       zero coupon, 12/15/33  Aaa/AAA     
12,595,500 
2,460       zero coupon, 6/15/38  Aaa/AAA     
493,501 
4,500    Schaumburg, GO, 5.00%, 12/1/41, Ser. B (FGIC)  Aaa/AAA     
4,627,935 
10,000    State, GO, 5.00%, 3/1/34, Ser. A  Aa3/AA     
10,243,500 
68,470    State Sports Facs. Auth. Rev., zero coupon, 6/15/30 (AMBAC)  Aaa/AAA     
57,286,110 


           
262,721,503 


    Indiana—0.5%       
    Brownsburg 1999 School Building Corp. Rev.,       
1,000   
   5.00%, 9/15/2, Ser. A (FSA) (Pre-refunded @ $100, 9/15/13) (b) 
Aaa/AAA     
1,082,900 
2,000       5.25%, 3/15/25  Aaa/AAA     
2,199,240 
4,125    Fort Wayne Pollution Control Rev., 6.20%, 10/15/25  B1/BB-     
3,281,603 
500    State Bank Rev., Hendricks, 5.25%, 4/1/30, Ser. D (AMBAC)  Aaa/AAA     
521,800 


           
7,085,543 


    Iowa—3.7%       
46,000    Tobacco Settlement Auth. of Iowa Rev.,       
       zero coupon, 6/1/34, Ser. B  Baa3/BBB     
41,366,880 
8,850    Tobacco Settlement Auth. Rev.,       
   
   5.60%, 6/1/35, Ser. B (Pre-refunded @ $101, 6/1/11) (b) 
Baa3/AAA     
9,727,566 


           
51,094,446 


    Kansas—0.2%       
2,800    Univ. of Kansas, Hospital Auth. Health Facs. Rev., 5.625%, 9/1/32  NR/A-     
2,972,788 


    Kentucky—0.8%       
    Economic Dev. Finance Auth. Hospital Facs. Rev.,       
2,500       Catholic Healthcare Partners, 5.25%, 10/1/30  Aa3/AA-     
2,579,300 
7,855       St. Luke’s Hospital, 6.00%, 10/1/19  A3/A     
8,791,787 


           
11,371,087 


    Louisiana—4.3%       
20,400    Public Facs. Auth. Rev., Ochsner Clinic Foundation,       
       5.50%, 5/15/32, Ser. B  A3/NR     
20,523,012 
36,395    Tobacco Settlement Financing Corp. Rev.,       
       5.875%, 5/15/39, Ser. 2001 B  Baa3/BBB     
38,089,187 


           
58,612,199 


    Maryland—0.1%       
1,000    State Health & Higher Educational Fac. Auth. Rev.,       
       Adventist Healthcare, 5.75%, 1/1/25, Ser. A  Baa2/NR     
1,055,390 



11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 7


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







  Massachusetts—3.0%       
$ 1,300 
  Bay Transportation Auth. Rev., General Transportation System,       
     4.75%, 3/1/21, Ser. A (MBIA)  Aaa/AAA   
$ 
1,331,382 
  State College Building Auth. Project Rev., Ser. B (XLCA),       
5,560 
     5.50%, 5/1/28  Aaa/AAA     
6,330,894 
7,645 
     5.50%, 5/1/33  Aaa/AAA     
8,684,338 
5,000 
     5.50%, 5/1/39  Aaa/AAA     
5,735,650 
4,295 
  State Turnpike Auth. Rev., 4.75%, 1/1/34, Ser. A (AMBAC)  Aaa/AAA     
4,313,769 
  State Water Res. Auth. Rev.,       
2,300 
     4.75%, 12/1/21, Ser. B (MBIA)  Aaa/AAA     
2,350,324 
12,050 
     4.75%, 8/1/37, Ser. A (FSA)  Aaa/AAA     
12,070,123 


         
40,816,480 


  Michigan—2.6%       
  Detroit City School Dist., GO,       
8,500 
 
   5.00%, 5/1/32, Ser. A (FGIC) (Pre-refunded @ $100, 5/1/13) (b) 
Aaa/AAA     
9,175,495 
1,750 
     5.125%, 5/1/31, Ser. A (FSA)  Aaa/AAA     
1,896,195 
2,500 
  Detroit Water Supply System Rev., 5.00%, 7/1/30, Ser. A (FGIC)  Aaa/AAA     
2,564,625 
5,000 
  State Hospital Finance Auth. Rev., Ascension Health,       
     5.25%, 11/15/26, Ser. B  Aa2/AA     
5,180,450 
  Oakwood Group, Ser. A,       
13,500 
     5.75%, 4/1/32  A2/A     
14,163,930 
1,925 
     6.00%, 4/1/22  A2/A     
2,083,331 


         
35,064,026 


  Mississippi—0.3%       
3,605 
  Business Finance Corp., Pollution Control Rev., 5.875%, 4/1/22  Ba1/BBB-     
3,650,567 
1,000 
  Dev. Bank Special Obligation, Projects & Equipment       
     Acquisitions Rev., 5.00%, 7/1/24 (AMBAC)  Aaa/AAA     
1,082,200 


         
4,732,767 


  Missouri—0.2%       
1,000 
  Hanley Road & North of Folk Ave. Transportation Dist. Rev.,       
     5.00%, 10/1/25  NR/NR     
990,010 
1,500 
  St. Louis Parking Facs. Rev., Downtown Parking Fac.,       
     6.00%, 2/1/28  NR/NR     
1,515,210 


         
2,505,220 


  Nevada—1.8%       
3,400 
  Clark Cnty., GO, 5.00%, 6/1/31 (FGIC)  Aaa/AAA     
3,480,206 
  Reno Transportation Project Rev. (AMBAC),       
3,960 
     5.125%, 6/1/27  Aaa/AAA     
4,106,956 
2,000 
     5.125%, 6/1/32  Aaa/AAA     
2,067,380 
3,500 
     5.125%, 6/1/37  Aaa/AAA     
3,613,960 
7,570 
     5.25%, 6/1/41  Aaa/AAA     
7,804,746 
3,290 
  Truckee Meadows Water Auth. Rev., 5.125%, 7/1/30, Ser. A (FSA)  Aaa/AAA     
3,408,275 


         
24,481,523 


  New Hampshire—0.2%       
3,000 
  Health & Education Fac. Auth. Hospital Rev.,       
     Catholic Medical Center, 6.125%, 7/1/32  Baa1/BBB+     
3,114,690 



8 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
           
Amount 
    Credit Rating       
(000) 
            
(Moody’s/S&P) 
             Value 






    New Jersey—2.5%         
    Camden Cnty. Improvement Auth. Rev., Cooper Health System,         
$       20       5.875%, 2/15/15  Baa3/BBB   
$ 
20,718 
40       6.00%, 2/15/27  Baa3/BBB      40,622 
    Economic Dev. Auth., Kapkowski Rd. Landfill,         
4,000       5.75%, 10/1/21  Baa3/NR      4,301,520 
11,405       5.75%, 4/1/31  Baa3/NR      12,034,100 
    Economic Dev. Auth. Rev., Arbor Glen,         
525       6.00%, 5/15/28  NR/NR      527,635 
225   
   6.00%, 5/15/28, Ser. A (Pre-refunded @ $102, 5/15/09) (b) 
NR/NR      247,477 
3,500    State Educational Fac. Auth. Rev., 6.00%, 7/1/25, Ser. D  NR/NR      3,713,710 
    Tobacco Settlement Financing Corp. Rev.,         
1,285       6.00%, 6/1/37  Baa3/BBB      1,328,857 
3,095       6.125%, 6/1/42  Baa3/BBB      3,213,012 
6,150       6.25%, 6/1/43  Baa3/BBB      6,677,240 
2,500       6.75%, 6/1/39  Baa3/BBB      2,791,975 


            34,896,866 


    New Mexico—0.4%         
5,000    Farmington Pollution Control Rev., 5.80%, 4/1/22  Baa2/BBB      5,066,600 


    New York—5.3%         
    Metropolitan Transportation Auth. Rev.,         
10,600       5.00%, 11/15/30, Ser. A (FSA)  Aaa/AAA      10,931,992 
10,000       5.25%, 11/15/32, Ser. B  A2/A      10,516,500 
    New York City Municipal Water Finance Auth.,         
       Water & Sewer System Rev.,         
4,750           5.00%, 6/15/37, Ser. D  Aa2/AA+      4,876,730 
7,000           5.00%, 6/15/39, Ser. A  Aa2/AA+      7,160,860 
30,000    New York State Dormitory Auth. Rev., 5.00%, 3/15/35, Ser. F (d)  AA/AA      30,804,600 
6,700    State Dormitory Auth. Rev., Sloan-Kettering Center Memorial,         
       5.00%, 7/1/34, Ser. 1  Aa2/AA      6,848,003 
2,000    State Environmental Facs. Corp. Rev., 5.00%, 6/15/28  Aaa/AAA      2,073,560 


            73,212,245 


    Ohio—0.6%         
7,500    Lorain Cnty. Hospital Rev., Catholic Healthcare, 5.375%, 10/1/30  Aa3/AA-      7,769,925 


    Oklahoma—0.5%         
6,500    Tulsa Cnty. Industrial Auth. Rev., Legacy Apartments,         
       4.90%, 11/20/46 (FHA-GNMA)  Aaa/NR      6,565,455 


    Pennsylvania—2.5%         
    Allegheny Cnty. Hospital Dev. Auth. Rev., Ser. B,         
550       9.25%, 11/15/15  B1/B+      656,662 
1,000       9.25%, 11/15/22  B1/B+      1,189,090 
5,700       9.25%, 11/15/30  B1/B+      6,752,562 
4,500    Cumberland Cnty. Auth. Retirement Community Rev.,         
       Wesley Affiliated Services, 7.25%, 1/1/35, Ser. A  NR/NR      4,820,670 
    Montgomery Cnty. Higher Education & Health Auth. Hospital Rev.,       
       Abington Memorial Hospital, Ser. A,         
5,000           5.125%, 6/1/27  NR/A      5,132,800 
3,750           5.125%, 6/1/32  NR/A      3,832,987 

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 9


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







$   3,000    Philadelphia, GO, 5.25%, 9/15/25 (FSA)  Aaa/AAA   
$ 
3,135,960 
5,000    Philadelphia Auth. Industrial Dev. Lease Rev.,       
       5.25%, 10/1/30, Ser. B (FSA)  Aaa/AAA     
5,194,050 
500    Pittsburgh & Allegheny Cnty. Public Auditorium Auth. Rev.,       
       5.00%, 2/1/29 (AMBAC)  Aaa/AAA     
508,475 
2,500    Radnor Township School Dist., GO, 5.00%, 2/15/35, Ser. B (FSA)  Aaa/NR     
2,603,150 


           
33,826,406 


    Puerto Rico—0.3%       
4,200    Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN  A3/A-     
4,309,788 


    Rhode Island—4.7%       
62,000    Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A  Baa3/BBB     
64,269,200 


    South Carolina—5.7%       
27,745    Greenville Cnty. School Dist. Rev.,       
       Building Equity Sooner Tomorrow, 5.50%, 12/1/28  Aa3/AA-     
29,630,550 
18,120    Jobs Economic Dev. Auth. Rev., Bon Secours Health System,       
       5.625%, 11/15/30  A3/A-     
18,734,087 
    Lexington Cnty., Health Services Dist. Hospital Rev.,       
15,000       5.50%, 11/1/32  A2/A     
15,784,050 
3,500       5.50%, 5/1/37  A2/A     
3,680,005 
5,000       5.75%, 11/1/28  A2/A     
5,377,250 
3,250    Tobacco Settlement Rev. Management Auth.,       
       6.375%, 5/15/28, Ser. B  Baa3/BBB     
3,416,790 
1,180    Transportation Infrastructure Rev., 5.00%, 10/1/29, Ser. A       
       (AMBAC) (Pre-refunded @ $100, 10/1/11) (b)  Aaa/NR     
1,266,022 


           
77,888,754 


    Tennessee—0.3%       
3,750    Knox Cnty. Health Educational & Housing Facs. Board       
       Hospital Facs. Rev., 5.25%, 10/1/30  Aa3/AA-     
3,877,763 


    Texas—10.4%       
1,000    Arlington Independent School Dist., GO,       
       5.00%, 2/15/24, (PSF-GTD)  Aaa/NR     
1,032,070 
4,480    Aubrey Independent School Dist., GO, 5.50%, 2/15/33 (PSF-GTD)  Aaa/NR     
4,839,251 
6,500    Brazos Cnty. Health Facs. Dev. Corp.,       
       Franciscan Services Corp. Rev., 5.375%, 1/1/32  NR/A-     
6,668,675 
2,700    Comal Cnty. Health Facs., McKenna Memorial Hospital Project Rev.,     
       6.25%, 2/1/32  Baa3/BBB-     
2,867,373 
5,000    Dallas Area Rapid Transit Rev., 5.00%, 12/1/31 (AMBAC)  Aaa/AAA     
5,108,900 
20,000    Frisco Independent School Dist., GO,       
       zero coupon, 8/15/34 (PSF-GTD)  Aaa/NR     
4,584,600 
    Harris Cnty.,       
19,750   
   GO, 5.125%, 8/15/31, (Pre-refunded @ $100, 8/15/12) (b) 
Aa1/AA+     
21,307,090 
5,250   
   Health Facs. Dev. Corp. Rev., St. Luke’s Episcopal Hospital, 
     
   
       5.375%, 2/15/26, Ser. A (Pre-refunded @ $100, 8/15/11) (b) 
NR/AA-     
5,711,528 
25,000       Senior Lien Toll Road Rev., 5.00%, 8/15/30 (FSA)  Aaa/AAA     
25,655,750 
7,500    Keller Independent School Dist., GO, 4.875%, 8/15/31 (PSF-GTD)  Aaa/AAA     
7,558,725 
3,170    Little Elm Independent School Dist., GO,       
       5.30%, 8/15/29, Ser. A (PSF-GTD)  NR/AAA     
3,356,428 

10 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
           
Amount 
    Credit Rating       
(000) 
             (Moody’s/S&P)               Value 







$    6,250 
  North Dallas Thruway Auth. Rev., 4.75%, 1/1/29 (FGIC)  Aaa/AAA   
$ 
6,272,812 
5,000 
  Quinlan Independent School Dist., GO, 5.10%, 2/15/32 (PSF-GTD)  Aaa/NR      5,157,550 
14,000 
  State Affordable Housing Corp. Multifamily Housing Rev.,         
 
   Amern. Hsg. Foundation, 5.40%, 9/1/22, Ser. A (MBIA) 
Aaa/AAA      14,070,000 
  State Turnpike Auth. Central Turnpike System Rev., Ser. A (AMBAC)       
10,000 
     zero coupon, 8/15/19  Aaa/AAA      5,357,200 
8,880 
     5.00%, 8/15/42  Aaa/AAA      9,025,810 
  State Water Financial Assistance, GO,         
3,250 
     5.00%, 8/1/36  Aa1/AA      3,329,235 
1,650 
     5.25%, 8/1/35  Aa1/AA      1,724,481 
8,000 
  Wichita Falls Water & Sewer Rev., 5.00%, 8/1/27 (AMBAC)  Aaa/AAA      8,201,360 


          141,828,838 


  Virginia—0.5%         
  Fredericksburg Industrial Dev. Medicorp Health System Rev., Ser. B,       
4,000 
     5.25%, 6/15/27  A3/NR      4,095,280 
2,500 
     5.125%, 6/15/33  A3/NR      2,532,450 


          6,627,730 


  Washington—0.4%         
5,000 
  Tacoma Sewer Rev., 5.00%, 12/1/31, Ser. A (FGIC)  Aaa/AAA      5,111,500 


  Wisconsin—0.8%         
  Badger Tobacco Asset Securitization Corp.,         
1,125 
     6.00%, 6/1/17  Baa3/BBB      1,175,918 
8,550 
     6.125%, 6/1/27  Baa3/BBB      8,971,258 
1,000 
  State Health & Educational Facs. Auth. Rev.,         
 
   Froedert & Community Health Oblig., 5.375%, 10/1/30 
NR/AA-      1,030,110 


          11,177,286 


  Total Municipal Bonds & Notes (cost—$1,153,407,211)        1,236,019,616 
     


VARIABLE RATE NOTES (c)(e)(f)—9.2% 
       

  Alabama—1.1%         
3,600 
  Birmingham Waterworks & Sewer Board Rev.,         
     13.10%, 1/1/33, Ser. 947 (MBIA)  Aaa/NR      4,531,860 
6,675 
  Jefferson Cnty. Sewer Rev., 9.77%, 2/1/36, Ser. 352 (FGIC)  Aaa/NR      8,083,158 
2,100 
  Montgomery Special Care Fac., Financing Auth. Rev.,         
     8.99%, 11/15/29, Ser. 435 (MBIA)  Aaa/NR      2,264,493 


          14,879,511 


  Colorado—0.2%         
2,812 
  Denver City & Cnty. Airport Rev., 10.13%, 11/15/25, Ser. 425 (FSA)  Aaa/NR      3,164,962 


  Florida—1.0%         
2,830 
  Highlands Cnty. Health Facs. Auth. Rev., Adventist,         
     5.00%, 11/15/31, Ser. C  A2/A+      2,851,989 
2,228 
  Orange Cnty. School Board, CP, 10.07%, 8/1/24, Ser. 328 (MBIA)  Aaa/NR      2,619,807 
4,051 
  State Governmental Utilities Auth. Rev., 10.07%,         
     10/1/29, Ser. 327 (AMBAC)  Aaa/NR      4,578,357 
3,340 
  Sumter Landing Community Dev. Dist. Rev.,         
     7.791%, 10/1/35, Ser. 1208 (MBIA)(a)(d)  AAA/AAA      3,183,154 


          13,233,307 



11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 11


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
            
(Moody’s/S&P) 
            
Value 






  Illinois—1.0%       
  Chicago, GO,       
$   4,450 
     6.93%, 1/1/28, Ser. 332 (MBIA)  Aaa/NR   
$ 
4,727,947 
3,300 
     10.65%, 1/1/40, Ser. 426 (FGIC)  Aaa/NR     
4,027,089 
1,932 
  Cook Cnty., GO, 8.99%, 11/15/28, Ser. 403 (FGIC)  Aaa/NR     
2,133,643 
2,000 
  State, GO, 13.10%, 4/1/27, Ser. 783 (FSA)  Aaa/NR     
2,548,700 


         
13,437,379 


  Louisiana—0.3%       
4,000 
  Tobacco Settlement Financing Corp. Rev., 8.160%, 5/15/39  NR/NR     
4,372,400 


  Massachusetts—2.0%       
2,100 
  Boston Water & Sewer Community Rev.,       
     9.01%, 11/1/28, Ser. 434 (FGIC)  Aaa/NR     
2,269,113 
2,420 
  State, GO, 12.24%, 11/1/30, Ser. 785 (FGIC-TCRS)  Aaa/NR     
3,358,379 
  State Turnpike Auth. Rev.,       
11,049 
     9.01%, 1/1/37, Ser. 334 (MBIA)  Aaa/NR     
11,591,838 
4,500 
     9.01%, 1/1/37, Ser. 489 (MBIA)  NR/AAA     
4,721,085 
5,667 
     11.88%, 1/1/39, Ser. 335 (AMBAC)  Aaa/NR     
6,196,901 


         
28,137,316 


  Nevada—0.3%       
3,300 
  State, GO, 8.94%, 5/15/28, Ser. 344 (FGIC)  Aaa/NR     
3,486,054 


  New York—0.3%       
3,335 
  Liberty Dev. Corp. Rev., 9.177%, 10/1/35, Ser. 1207 (a)  Aa3/AA3     
4,418,108 


  Ohio—0.2%       
1,975 
  Hamilton Cnty. Sales Tax Rev., 10.16%, 12/1/27, Ser. 356 (MBIA)  Aaa/NR     
2,229,854 


  Pennsylvania—0.7%       
3,050 
  Philadelphia Auth. Industrial Dev. Rev., Doubletree, 6.50%, 10/1/27  NR/NR     
3,187,647 
  Philadelphia School Dist., GO (MBIA),       
4,016 
     8.15%, 4/1/27, Ser. 496  NR/AAA     
4,096,332 
1,670 
     10.51%, 4/1/27, Ser. 345  Aaa/NR     
1,720,434 


         
9,004,413 


  Texas—1.4%       
3,075 
  Denton Utility System Rev., 10.63%, 12/1/29, Ser. 428 (MBIA)  Aaa/NR     
3,461,097 
1,650 
  Houston Airport System Rev., 8.87%, 7/1/25, Ser. 404 (FGIC)  Aaa/NR     
1,745,320 
  Houston Water & Sewer System Rev.,       
2,750 
     10.13%, 12/1/28, Ser. 427 (FSA)  Aaa/NR     
3,371,830 
3,838 
     11.13%, 12/1/30, Ser. 495 (FGIC)  NR/AAA     
4,941,165 
2,000 
  Sabine River Auth. Rev., 5.20%, 5/1/28  Baa2/BBB-     
2,005,000 
3,345 
  State, GO, 7.66%, 4/1/35, Ser. 1147  NR/NR     
3,404,441 


         
18,928,853 


  Utah—0.6%       
8,830 
  Utah Transit Auth. Rev., 10.62%, 6/15/35, Ser. 1197 (FSA)  AAA/AAA     
8,829,558 


  Washington—0.1%       
1,820 
  Central Puget Sound Regional Transit Auth. Sales Tax & Motor Rev.,     
     10.51%, 2/1/28, Ser. 360 (FGIC)  Aaa/NR     
1,869,049 


  Total Variable Rate Notes (cost—$111,203,290)       
125,990,764 



12 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
       
Amount 
       
(000) 
               Value 





U.S. TREASURY BILLS (h)—0.6%     
$   8,095    3.29%-3.65%,12/1/05-12/15/05 (cost—$8,085,403)  $  8,085,403 
   


OPTIONS PURCHASED (i)—0.0%     

Contracts 
  Put Options—0.0%     
805    U.S. Treasury Notes 5 yr. Futures, Chicago Board of Trade,     
       strike price $100.50, expires 2/24/06 (cost—$15,194)    12,578 


 
    Total Investments before options written (cost—$1,272,711,098)—100.1%    1,370,108,361 
   


OPTIONS WRITTEN (i)—(0.1)%     

    Call Options—(0.0)%     
1,270    U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,     
       strike price $111, expires 2/24/06    (277,813) 


    Put Options—(0.1)%     
1,270    U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,     
       strike price $107, expires 2/24/06    (615,156) 


 
    Total Options Written (premiums received—$875,779)    (892,969) 


 
    Total Investments net of options written (cost—$1,271,835,319)—100.0% 
$
1,369,215,392 


See accompanying notes to Financial Statements | 11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 13


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







CALIFORNIA MUNICIPAL BONDS & NOTES—86.1%       

$    2,000   
ABC Unified School Dist., GO, zero coupon, 8/1/23, Ser. B (FGIC) 
Aaa/AAA   
$ 
865,620 
1,000   
Alpine Union School Dist., GO, zero coupon, 8/1/24, Ser. B (FSA) 
Aaa/AAA     
424,970 
8,115    Anaheim City School Dist., GO,       
       5.00%, 8/1/26, (FGIC)(Pre-refunded @$101, 8/1/11) (b)  Aaa/AAA     
8,831,473 
    Association of Bay Area Governments Finance Auth. Rev.,       
       Odd Fellows Home,       
5,300       5.20%, 11/15/22  NR/A     
5,512,636 
26,000       5.35%, 11/15/32  NR/A     
26,959,660 
23,000    Bakersfield, CP, zero coupon, 4/15/21  NR/AAA     
11,249,990 
1,945    Bay Area Govt. Assoc., Improvement Board       
       Act of 1915 Special Assessment, 6.30%, 9/2/25  NR/NR     
2,041,822 
2,000    Lease Rev., 5.00%, 7/1/32, Ser. 2002-1 (AMBAC)  Aaa/AAA     
2,060,360 
1,085    Capistrano Unified School Dist., Community Fac. Dist.,       
       Special Tax, 5.70%, 9/1/20,       
       (Pre-refunded @ $102, 9/1/09) (b)  NR/NR     
1,192,599 
1,100    Cathedral City Cove Improvements Dist. 04-02,       
       Special Assessment, 5.00%, 9/2/30  NR/NR     
1,078,935 
2,300   
Ceres Unified School Dist., GO, zero coupon, 8/1/27 (FGIC) 
Aaa/AAA     
689,356 
    Chula Vista, Special Tax,       
1,160       6.05%, 9/1/25, (Pre-refunded @ $102, 9/1/10) (b)  NR/NR     
1,309,930 
2,500       6.10%, 9/1/32, (Pre-refunded @ $102, 9/1/10) (b)  NR/NR     
2,828,525 
1,825       6.15%, 9/1/26  NR/NR     
1,925,813 
4,380       6.20%, 9/1/33  NR/NR     
4,630,010 
    Clovis Unified School Dist., GO, Ser. B (FGIC),       
2,000       zero coupon, 8/1/23  Aaa/AAA     
865,620 
3,535       zero coupon, 8/1/25  Aaa/AAA     
1,370,307 
2,500       zero coupon, 8/1/27  Aaa/AAA     
865,275 
1,410    Community College Financing Auth. Lease Rev.,       
       5.00%, 8/1/27, Ser. A (AMBAC)  Aaa/AAA     
1,461,620 
    Corona-Norco Unified School Dist., Public       
       Financing Auth., Special Tax, Ser. A,       
210       5.55%, 9/1/15  NR/NR     
211,976 
305       5.65%, 9/1/16  NR/NR     
308,032 
160       5.75%, 9/1/17  NR/NR     
162,122 
530       6.00%, 9/1/20  NR/NR     
539,036 
1,000       6.00%, 9/1/25  NR/NR     
1,014,810 
4,150       6.10%, 9/1/32  NR/NR     
4,225,115 
1,110       Special Tax, 5.10%, 9/1/25 (AMBAC)  Aaa/AAA     
1,146,963 
2,800    Cotati Redev. Agcy., Tax Allocation, 5.00%, 9/1/31,       
       Ser. A (MBIA)  Aaa/AAA     
2,847,264 
3,000    Dinuba Financing Auth. Lease Rev., 5.10%, 8/1/32 (MBIA)  Aaa/AAA     
3,090,810 
3,475    Educational Facs. Auth. Rev., Loyola Marymount Univ.,       
       zero coupon, 10/1/34 (MBIA)  Aaa/NR     
800,292 
4,520   
Elk Grove Unified School Dist., Community Facs. Dist. No. 1, 
     
       Special Tax, 4.75%, 12/1/33 (MBIA)  Aaa/AAA     
4,485,377 

14 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







    Empire Union School Dist., Special Tax, (AMBAC),       
$     1,560       zero coupon, 10/1/30  Aaa/AAA   
$ 
443,680 
1,265       zero coupon, 10/1/32  Aaa/AAA     
320,058 
1,000   
Escondido Union School Dist., GO, zero coupon, 8/1/27 (FSA) 
Aaa/AAA     
346,110 
2,440   
Eureka Union School Dist., GO, zero coupon, 8/1/27 (FSA) 
Aaa/AAA     
844,508 
    Foothill Eastern Corridor Agcy. Toll Road Rev.,       
7,100       zero coupon, 1/1/25, Ser. A  Aaa/AAA     
2,921,792 
3,270       zero coupon, 1/1/26, Ser. A  Aaa/AAA     
1,266,961 
1,500       zero coupon, 1/15/27 (MBIA-IBC)  Aaa/AAA     
1,345,470 
3,780       zero coupon, 1/1/28, Ser. A  Aaa/AAA     
1,309,770 
17,860       zero coupon, 1/1/30, Ser. A  Aaa/AAA     
5,543,030 
400    Franklin-McKinley School Dist., GO, 5.00%, 8/1/27,       
       Ser. B (FSA)  Aaa/AAA     
415,960 
1,440    Fremont Community Facs. Dist. No. 1, Special Tax,       
       5.30%, 9/1/30  NR/NR     
1,443,139 
    Golden State Tobacco Securitization Corp.,       
       Tobacco Settlement Rev., Ser. 2003-A-1,       
11,700       6.25%, 6/1/33  Baa3/BBB     
12,703,041 
36,200       6.75%, 6/1/39  Baa3/BBB     
40,427,798 
    Health Facs. Finance Auth. Rev. (CA Mtg. Ins.),       
5,500       5.125%, 1/1/22  NR/A     
5,750,140 
3,875       5.25%, 1/1/26  NR/A     
4,027,830 
2,115       5.375%, 11/1/20  NR/A     
2,241,900 
4,000       Adventist Health System, 5.00%, 3/1/33  NR/A     
4,002,080 
565       Catholic Healthcare West, 5.00%, 7/1/28, Ser. A  A3/A-     
565,893 
1,750    Huntington Beach Community Facs. Dist., Special Tax,       
       6.30%, 9/1/32  NR/NR     
1,797,058 
    Industry Urban Dev. Agcy., Tax Allocation (MBIA),       
1,045       Transportation Dist. 2, 4.75%, 5/1/21  Aaa/AAA     
1,067,959 
1,035       Transportation Dist. 3, 4.75%, 5/1/21  Aaa/AAA     
1,057,739 
200    Infrastructure & Economic Dev. Bank Rev.,       
       Bay Area Toll Bridges,       
       5.00%, 7/1/36 (AMBAC)  Aaa/AAA     
206,610 
7,000   
Irvine Improvement Board Act 1915, Special Assessment, 
     
       5.70%, 9/2/26  NR/NR     
7,144,410 
1,900   
Jurupa Unified School Dist., GO, zero coupon, 5/1/27 (FGIC) 
Aaa/AAA     
657,609 
2,450    Kings Canyon JT Unified School Dist., GO,       
       zero coupon, 8/1/27 (FGIC)  Aaa/AAA     
847,969 
5,300   
Livermore-Amador Valley Water Management Agcy. Rev., 
     
       5.00%, 8/1/31, Ser. A (AMBAC)  Aaa/AAA     
5,428,048 
5,935    Long Beach Unified School Dist., GO, 5.00%, 8/1/27,       
       Ser. C (MBIA)  Aaa/NR     
6,113,287 
    Los Angeles, CP (MBIA),       
9,895       5.00%, 2/1/27  Aaa/AAA     
10,195,412 
2,685       5.00%, 10/1/27, Ser. AU  Aaa/AAA     
2,774,088 
7,200    Los Angeles, Wastewater System Rev.,       
       5.00%, 6/1/30, Ser. A (FGIC)  Aaa/AAA     
7,421,040 

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 15


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







$     1,000    Manhattan Beach Unified School Dist., GO,       
       zero coupon, 9/1/25 (FGIC)  Aaa/AAA   
$ 
386,090 
7,295   
Manteca Redev. Agcy., Tax Allocation, 5.00%, 10/1/32 (FSA) 
Aaa/AAA     
7,520,197 
    Manteca Unified School Dist., Special Tax (MBIA),       
2,365       zero coupon, 9/1/25  Aaa/AAA     
904,352 
5,330       5.00%, 9/1/29, Ser. C  Aaa/AAA     
5,458,186 
4,000    Merced Cnty., CP, Juvenile Justice Correctional Fac.,       
       5.00%, 6/1/32 (AMBAC)  Aaa/NR     
4,095,640 
   
Modesto Elementary School Dist. Stanislaus Cnty., GO, 
     
       Ser. A (FGIC),       
2,615       zero coupon, 8/1/23  Aaa/AAA     
1,122,096 
2,705       zero coupon, 8/1/24  Aaa/AAA     
1,098,365 
2,000       zero coupon, 5/1/27  Aaa/AAA     
693,460 
2,150    Modesto High School Dist. Stanislaus Cnty., GO,       
       zero coupon, 8/1/26, Ser. A (FGIC)  Aaa/AAA     
787,824 
1,000    Modesto Public Financing Auth. Lease Rev.,       
       5.00%, 9/1/29 (AMBAC)  Aaa/AAA     
1,030,950 
2,385    Monrovia Financing Auth. Lease Rev., Hillside       
       Wilderness Preserve,       
       5.125%, 12/1/31 (AMBAC)  Aaa/AAA     
2,492,397 
    Montebello Unified School Dist., GO,       
1,500       zero coupon, 8/1/24 (FGIC)  Aaa/AAA     
614,640 
1,485       zero coupon, 8/1/24 (FSA)  Aaa/AAA     
608,494 
2,830       zero coupon, 8/1/25 (FGIC)  Aaa/AAA     
1,097,021 
2,775       zero coupon, 8/1/27 (FGIC)  Aaa/AAA     
960,455 
4,700   
Moreno Valley Unified School Dist. Community Facs. Dist., 
     
       Special Tax, 5.20%, 9/1/36 (d)  NR/NR     
4,678,145 
2,400    Morgan Hill Unified School Dist., GO,       
       zero coupon, 8/1/23 (FGIC)  Aaa/AAA     
1,038,744 
1,500    Mountain View-Whisman School Dist., GO,       
       5.00%, 6/1/27, Ser. D (MBIA)  Aaa/AAA     
1,558,830 
1,800   
Murrieta Redev. Agcy., Tax Allocation, 5.00%, 8/1/32 (MBIA) 
Aaa/AAA     
1,854,720 
3,245    Newark Unified School Dist., GO, zero coupon,       
       8/1/26, Ser. D (FSA)  Aaa/AAA     
1,189,065 
    Oakland Redev. Agcy., Tax Allocation,       
1,395       5.25%, 9/1/27  NR/A-     
1,426,053 
2,185       5.25%, 9/1/33  NR/A-     
2,226,974 
1,000    Orange Cnty. Community Facs. Dist., Special Tax,       
       No. 01-1-Ladera Ranch,       
       6.00%, 8/15/25, Ser. A (Pre-refunded @ $101, 8/15/10)(b)  NR/NR     
1,117,640 
12,000   
Orange Cnty. Sanitation Dist., CP, 5.25%, 2/1/30 (FGIC) 
Aaa/AAA     
12,656,160 
   
Palmdale Community Redev. Agcy., Tax Allocation (AMBAC), 
     
1,230       zero coupon, 12/1/30  Aaa/AAA     
351,140 
1,230       zero coupon, 12/1/31  Aaa/AAA     
331,436 
1,225       zero coupon, 12/1/32  Aaa/AAA     
311,371 
1,750    Paramount Unified School Dist., GO, zero coupon,       
       9/1/23, Ser. B (FSA)  Aaa/AAA     
747,915 

16 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







    Perris Public Financing Auth. Rev., Tax Allocation,       
$     1,190       4.75%, 10/1/23, Ser. B (MBIA)  Aaa/AAA   
$ 
1,217,489 
780       5.375%, 10/1/20, Ser. C  NR/BBB     
806,224 
1,800       5.625%, 10/1/31, Ser. C  NR/BBB     
1,878,012 
10,150   
Placer Union High School Dist., GO, zero coupon, 8/1/33 (FSA) 
Aaa/AAA     
2,480,660 
    Poway Unified School Dist., Special Tax,       
       Community FACS Dist. No. 10-Area-D,       
1,000       5.65%, 9/1/25  NR/NR     
1,017,740 
2,200       5.70%, 9/1/32  NR/NR     
2,234,496 
       Community FACS Dist. No. 6,       
2,700       5.125%, 9/1/28  NR/NR     
2,711,097 
1,500       5.50%, 9/1/25  NR/NR     
1,527,900 
3,000       5.60%, 9/1/33  NR/NR     
3,054,150 
       Community FACS Dist. No. 6-Area-A,       
1,000       6.05%, 9/1/25  NR/NR     
1,049,190 
5,500       6.125%, 9/1/33  NR/NR     
5,763,010 
2,300       Community FACS Dist. No. 6-Area-B, 5.125%, 9/1/28  NR/NR     
2,309,453 
2,000    Rancho Cucamonga Community Facs. Dist., Special Tax,       
       6.375%, 9/1/31, Ser. A  NR/NR     
2,115,660 
1,500    Richmond Wastewater Rev., zero coupon, 8/1/30 (FGIC)  Aaa/AAA     
435,435 
    Riverside Unified School Dist., Community Facs.       
       Dist. No. 15 Special Tax, Ser. A,       
1,000       5.15%, 9/1/25  NR/NR     
1,003,720 
1,000       5.25%, 9/1/30  NR/NR     
1,003,700 
1,000       5.25%, 9/1/35  NR/NR     
1,001,430 
3,510    Riverside, CP, 5.00%, 9/1/33 (AMBAC)  Aaa/AAA     
3,604,910 
    Rocklin Unified School Dist., GO (FGIC),       
5,000       zero coupon, 8/1/24  Aaa/AAA     
2,048,800 
4,000       zero coupon, 8/1/25  Aaa/AAA     
1,550,560 
4,000       zero coupon, 8/1/26  Aaa/AAA     
1,465,720 
4,500       zero coupon, 8/1/27  Aaa/AAA     
1,557,495 
    Roseville Redev. Agcy., Tax Allocation (MBIA),       
3,730       5.00%, 9/1/27  Aaa/AAA     
3,868,719 
3,365       5.00%, 9/1/32  Aaa/AAA     
3,468,070 
2,155       5.00%, 9/1/33  Aaa/AAA     
2,219,435 
4,500    Sacramento City Financing Auth. Rev.,       
       5.00%, 12/1/32, Ser. A (FSA)       
       (Prerefunded @ $100, 12/1/12) (b)  Aaa/AAA     
4,891,995 
4,730       North Natomas CFD No. 2, 6.25%, 9/1/23, Ser. A  NR/NR     
4,873,934 
12,490    Sacramento Cnty. Airport System Rev., 5.00%, 7/1/32,       
       Ser. A (FSA)  Aaa/AAA     
12,791,509 
   
San Diego Cnty. Water Auth. Water Rev., CP, Ser. A (MBIA), 
     
8,285       5.00%, 5/1/28  Aaa/AAA     
8,564,205 
8,000       5.00%, 5/1/29  Aaa/AAA     
8,259,360 
1,000    San Diego Public Facs. Financing Auth. Lease Rev.,       
       5.00%, 5/15/29, Ser. A (FGIC)  Aaa/AAA     
1,029,830 
1,500    Fire & Life Safety Facs., 5.00%, 4/1/32 (MBIA)  Aaa/AAA     
1,534,980 

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 17


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







$ 14,000    San Diego Public Facs. Financing Auth. Water Rev.,       
       5.00%, 8/1/32, (MBIA)  Aaa/AAA   
$ 
14,381,780 
    San Francisco City & Cnty. Airport Community, Int’l       
       Airport Rev., (MBIA),       
5,585       4.50%, 5/1/28, Ser. 2  Aaa/AAA     
5,423,482 
20,300       5.00%, 5/1/32, Ser. 28B  Aaa/AAA     
20,779,080 
10,405   
San Joaquin Hills Transportation Corridor Agcy. Toll Road Rev., 
     
       zero coupon, 1/1/25  Aaa/AAA     
4,242,223 
10,190    San Jose, Libraries & Parks, GO, 5.125%, 9/1/31  Aa1/AA+     
10,555,210 
    San Juan Unified School Dist., GO (FSA),       
1,770       zero coupon, 8/1/23  Aaa/AAA     
766,074 
6,105       zero coupon, 8/1/26  Aaa/AAA     
2,237,055 
4,835    San Mateo Foster City School Dist., GO,       
       5.10%, 8/1/31 (FGIC) (Pre-refunded @ $101, 8/1/11) (b)  Aaa/AAA     
5,286,589 
2,300    San Mateo Union High School Dist., GO,       
       zero coupon, 9/1/20 (FGIC)  Aaa/AAA     
1,163,087 
1,730    San Rafael City High School Dist., GO,       
       5.00%, 8/1/27, Ser. B (FSA)  Aaa/AAA     
1,786,208 
3,280    San Rafael Elementary School Dist., GO,       
       5.00%, 8/1/27, Ser. B (FSA)  Aaa/AAA     
3,386,567 
    Santa Clara Unified School Dist., GO (MBIA),       
2,755       5.00%, 7/1/25  Aaa/AAA     
2,861,123 
2,895       5.00%, 7/1/26  Aaa/AAA     
3,001,478 
3,040       5.00%, 7/1/27  Aaa/AAA     
3,137,766 
1,260    Santa Cruz Cnty., Rev., 5.25%, 8/1/32  A3/NR     
1,306,922 
    Santa Margarita Water Dist., Special Tax,       
2,000       6.00%, 9/1/30  NR/NR     
2,112,560 
3,000       6.25%, 9/1/29  NR/NR     
3,176,040 
2,000    Santa Monica Community College Dist., GO,       
       zero coupon, 8/1/26, Ser. C (MBIA)  Aaa/AAA     
706,740 
    Saugus Hart School Facs. Financing Auth., Special Tax,       
       Community Facs. Dist. 00-1,       
1,140       6.10%, 9/1/32  NR/NR     
1,164,727 
2,260       6.125%, 9/1/33  NR/NR     
2,308,974 
1,000   
Shasta Union High School Dist., GO, zero coupon, 8/1/24 (FGIC) 
Aaa/AAA     
409,760 
2,745    South Tahoe JT Powers Parking Financing Auth. Rev.,       
       7.00%, 12/1/27, Ser. A  NR/NR     
2,687,767 
1,800    Southern Mono Health Care Dist., GO,       
       zero coupon, 8/1/26 (MBIA)  Aaa/AAA     
646,416 
900   
State Department of Water Resources Rev., Central VY Project, 
     
       5.00%, 12/1/25, Ser. AC (MBIA)  Aaa/AAA     
941,769 
20,000   
State Economic Recovery Rev., 5.00%, 7/1/11, Ser. A (MBIA) 
Aaa/AAA     
21,485,400 
9,605    State Public Works Board Lease Rev.,       
       UCLA Replacement Hospital,       
       5.00%, 10/1/22, Ser. A (FSA)  Aaa/AAA     
9,986,799 
1,710    State Univ. Rev., 5.00%, 11/1/33, Ser. A (AMBAC)  Aaa/AAA     
1,757,128 

18 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







    Statewide Community Dev. Auth. Rev.,       
$  3,555       Bentley School, 6.75%, 7/1/32 (a)  NR/NR   
$ 
3,880,816 
9,700       Health Fac., Jewish Home, 5.50%, 11/15/33 (CA ST Mtg.)  NR/A     
10,288,402 
2,770       Kaiser Permanente, 5.50%, 11/1/32, Ser. A  A3/A+     
2,895,924 
3,000       Live Oak School, 6.75%, 10/1/30  NR/NR     
3,146,340 
1,170       Wildwood Elementary School, CP, 6.10%, 11/1/15 (a)  NR/NR     
1,171,556 
1,775    Statewide Financing Auth. Tobacco Settlement Rev.,       
       5.625%, 5/1/29  Baa3/NR     
1,836,060 
7,750   
Tamalpais Union High School Dist., GO, 5.00%, 8/1/27 (FSA) 
Aaa/AAA     
8,024,350 
    Tobacco Securitization Agcy. Rev.,       
4,500       Alameda Cnty., 6.00%, 6/1/42  Baa3/NR     
4,691,070 
       Fresno Cnty.,       
4,175       5.625%, 6/1/23  Baa3/BBB     
4,218,545 
10,000       6.00%, 6/1/35  Baa3/BBB     
10,469,400 
1,800       Stanislaus Fdg., 5.875%, 6/1/43, Ser. A  Baa3/NR     
1,864,170 
995    Tracy Community Facs. Dist., Special Tax,       
       No. 99-2 South Macarthur Area,       
       6.00%, 9/1/27  NR/NR     
1,010,313 
6,250    University Rev., 5.00%, 5/15/11, Ser. A (AMBAC)  Aaa/AAA     
6,727,000 
10,000    Ventura Cnty. Community College Dist., GO,       
       5.00%, 8/1/27, Ser. A (MBIA)  Aaa/AAA     
10,399,000 
1,555   
Ventura Unified School Dist., GO, 5.00%, 8/1/32, Ser. F (FSA) 
Aaa/AAA     
1,606,424 
2,000   
Vernon Electric System Rev., Malburg Generating Station, 
     
       5.50%, 4/1/33, (Pre-refunded @ $100, 4/1/08) (b)  Aaa/NR     
2,104,820 
    Victor Elementary School Dist., GO, Ser. A (FGIC),       
1,125       zero coupon, 8/1/24  Aaa/AAA     
460,980 
2,410       zero coupon, 8/1/26  Aaa/AAA     
883,096 
1,000    Vista Unified School Dist., GO, zero coupon,       
       8/1/26, Ser. A (FSA)  Aaa/AAA     
366,430 
   
West Contra Costa University School Dist., GO, Ser. A (MBIA), 
     
2,740       5.00%, 8/1/26  Aaa/AAA     
2,825,817 
2,690       5.00%, 8/1/28  Aaa/AAA     
2,767,391 
1,890       5.00%, 8/1/31  Aaa/AAA     
1,936,362 
3,375    Westlands Water Dist. Rev., CP, 5.00%, 9/1/34 (MBIA)  Aaa/AAA     
3,466,260 
2,000    William S. Hart JT School Financing Auth. Rev.,       
       5.625%, 9/1/34  NR/BBB+     
2,096,220 
2,110    Yuba City Unified School Dist., GO, zero coupon,       
       9/1/25 (FGIC)  Aaa/AAA     
806,843 


 
    Total California Municipal Bonds & Notes (cost—$562,858,987)     
594,966,268 
   


OTHER MUNICIPAL BONDS & NOTES—4.6%       

    Iowa—2.1%       
16,100    Tobacco Settlement Auth. of Iowa Rev.,       
       zero coupon, 6/1/34, Ser. B  Baa3/BBB     
14,478,408 


    New York—0.5%       
3,250   
State Dormitory Auth. Rev., Hospital, 6.25%, 8/15/15 (FHA) 
Aa2/AAA     
3,724,793 



11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 19


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
       
Amount 
    Credit Rating   
(000) 
             (Moody’s/S&P)            
Value 






  Puerto Rico—0.7%     
$  2,000 
  Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN  A3/A-   
$      2,052,280 
2,505 
  Public Building Auth. Rev., Government Facs.,     
     5.00%, 7/1/36, Ser. I (GTD)  Baa2/BBB   
2,481,653 

       
4,533,933 

  Tennessee—1.3%     
8,535 
  Memphis Electric System Rev., 5.00%, 12/1/16,     
     Ser. A (MBIA)  Aaa/AAA   
9,035,919 

  Total Other Municipal Bonds & Notes (cost—$31,461,180)     
31,773,053 
     

CALIFORNIA VARIABLE RATE NOTES (c)(e)(f)—6.0% 
   

2,500 
  Coronado Community Dev. Agcy., Tax Allocation,     
     9.951%, 9/1/35 (AMBAC)  NA/AAA   
2,515,400 
4,238 
  Los Angeles Dept. of Water & Power, Waterworks Rev.,     
     10.72%, 7/1/41, Ser. 754 (FGIC-TCRS)  Aaa/NR   
4,728,711 
1,875 
  Modesto Public Financing Auth. Lease Rev.,     
     10.22%, 9/1/29, Ser. 354 (AMBAC)  Aaa/NR   
2,107,125 
4,952 
  Oakland, GO, 10.22%, 1/15/32, Ser. 756 (FGIC)  Aaa/NR   
5,548,601 
1,944 
  San Diego Unified School Dist., GO, 10.22%, 7/1/27,     
     Ser. 758 (FGIC)  Aaa/NR   
2,486,609 
3,743 
  San Jose, GO, 10.22%, 9/1/32, Ser. 760 (MBIA)  Aaa/NR   
4,242,798 
2,288 
  San Jose Unified School Dist. Santa Clara Cnty., GO,     
     10.22%, 8/1/27, Ser. 761 (FSA)  Aaa/NR   
2,611,410 
10,000 
  Statewide Financing Auth. Rev., 8.420%, 5/1/37  NR/NR   
10,927,600 
  University Rev.,     
1,375 
     9.22%, 5/15/35, Ser. 1119 (FSA)  NR/AAA   
1,331,715 
1,250 
     9.444%, 5/15/35, (FGIC)  Aaa/AA2   
1,226,300 
2,500 
     10.22%, 9/1/28, Ser. 762 (FGIC)  Aaa/NR   
2,880,225 
1,130 
     10.74%, 5/15/38, Ser. 1198  AA-/AA-   
1,048,866 

  Total California Variable Rate Notes (cost—$37,832,956)     
41,655,360 
     

OTHER VARIABLE RATE NOTES (f)—2.5% 
   

  Puerto Rico—2.5%     
11,000 
  Public Building Auth. Rev., Government Facs.,     
     5.00%, 7/1/36, Ser. J (AMBAC-GTD)  Aaa/AAA   
11,754,380 
5,300 
  Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A  Baa3/BBB-   
5,732,268 

  Total Other Variable Rate Notes (cost—$17,474,047)     
17,486,648 
     

CALIFORNIA VARIABLE RATE DEMAND NOTES (f)(g)—0.2% 
   

1,400 
  State, GO, 3.00%, 12/1/05 (cost—$1,400,000)  A-1+/A-1+   
1,400,000 
     

U.S. TREASURY BILLS (h)—0.7% 
   

4,405 
  3.29%-3.65%,12/1/05-12/15/05 (cost—$4,399,675)     
4,399,675 

  Total Investments before options written (cost—$655,426,845)—100.1%   
691,681,004 


20 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Contracts 
                 Value 






OPTIONS WRITTEN (i)—(0.1)%       
    Call Options—(0.0)%       
678    U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,       
       strike price $111, expires 2/24/06   
$ 
(148,313)


    Put Options—(0.1)%     
678    U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,     
       strike price $107, expires 2/24/06     
(328,406)


 
    Total Options Written (premiums received—$467,139)     
(476,719)


 
    Total Investments net of options written (cost—$654,959,706)—100.0%   
$ 
691,204,285 



See accompanying notes to Financial Statements | 11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 21


PIMCO New York Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
         
Amount 
    Credit Rating     
(000) 
             (Moody’s/S&P)              
Value 







NEW YORK MUNICIPAL BONDS & NOTES—83.6% 
     

 
Buffalo Municipal Water Finance Auth., Water System Rev., 
     
     Ser. B (FSA) (Pre-refunded @ $100, 7/1/12) (b)       
$      250 
         5.00%, 7/1/27  Aaa/AAA   
$ 
270,620 
1,000 
         5.125%, 7/1/32  Aaa/AAA     
1,089,740 
10,000 
  Erie Cnty. Tobacco Asset Securitization Corp. Rev.,       
     6.50%, 7/15/32, (Pre-refunded @ $101, 7/15/10) (b)  Ba1/AAA     
11,315,500 
3,075 
  Liberty Dev. Corp. Rev., Goldman Sachs Headquarters,       
     5.25%, 10/1/35  Aa3/A+     
3,408,053 
  Metropolitan Transportation Auth. Rev.,       
1,850 
     5.00%, 11/15/30, Ser. A (FSA)  Aaa/AAA     
1,907,942 
10,000 
     5.25%, 11/15/31, Ser. E  A2/A     
10,473,200 
7,000 
  Metropolitan Transportation Auth. Service Contract Rev.,       
     5.35%, 7/1/31, Ser. B  A2/AAA     
7,375,760 
  New York City, GO,       
4,000 
     5.00%, 3/1/33, Ser. I  A1/A+     
4,062,800 
5,000 
     5.00%, 6/1/33, Ser. O  A1/A+     
5,098,400 
  New York City Health & Hospital Corp. Rev., Ser. A       
1,100 
     5.375%, 2/15/26  A2/BBB+     
1,136,443 
2,000 
     5.45%, 2/15/26  A2/BBB+     
2,084,020 
  New York City Industrial Dev. Agcy. Rev.,       
1,000 
     Eger Harbor, 4.95%,11/20/32 (GNMA)  NR/AA+     
1,007,170 
1,500 
     Staten Island Univ. Hospital, 5.00%, 7/1/27  Aa2/NR     
1,562,550 
1,235 
     United Jewish Appeal Fed., 6.45%, 7/1/32  B2/NR     
1,260,565 
3,055 
  New York City Municipal Water Finance Auth.,       
     Water & Sewer System Rev.,       
     4.75%, 6/15/25, Ser. D (MBIA-IBC)  Aaa/AAA     
3,084,572 
10,000 
  New York City Transitional Finance Auth. Rev.,       
     5.00%, 11/1/27, Ser. B  Aa1/AAA     
10,347,500 
3,600 
  Port Auth. New York & New Jersey Rev.,       
     5.00%, 4/15/32, Ser. 125 (FSA)  Aaa/AAA     
3,745,800 
  Sachem Central School Dist. of Holbrook, GO (MBIA),       
3,445 
     5.00%, 6/15/28  Aaa/AAA     
3,589,656 
2,895 
     5.00%, 6/15/29  Aaa/AAA     
3,001,478 
7,500 
 
State Dormitory Auth. Lease Rev., State Univ. Dormitory Facs., 
     
     5.00%, 7/1/32, (Pre-refunded @ $100, 7/1/12) (b)  A1/AA-     
8,118,600 
  State Dormitory Auth. Rev.,       
2,600 
     Catholic Health of Long Island, 5.10%, 7/1/34  Baa1/BBB     
2,637,752 
4,315 
     Court Facs. Lease, 5.50%, 5/15/32 (AMBAC)  Aaa/AAA     
4,978,172 
2,000 
     Kaleida Health Hospital, 5.05%, 2/15/25 (FHA)  NR/AAA     
2,074,560 
5,300 
     Lenox Hill Hospital, 5.50%, 7/1/30  Ba2/NR     
5,215,571 
1,400 
     Long Island Univ., 5.25%, 9/1/28 (Radian)  Baa3/AA     
1,455,356 
1,500 
     Memorial Sloan-Kettering Center, 5.00%, 7/1/34, Ser. 1  Aa2/AA     
1,533,135 
8,850 
     North General Hospital, 5.00%, 2/15/25  NR/AA-     
9,080,542 
3,225 
     NY & Presbyterian Hospital Rev., 4.75%, 8/1/27 (AMBAC-FHA)  Aaa/AAA     
3,257,508 
5,000 
     Saint Barnabas Hospital, 5.00%, 2/1/31, Ser. A (AMBAC-FHA)  Aaa/AAA     
5,124,750 
8,600 
     State Personal Income Tax, 5.00%, 3/15/32,       
         (Pre-refunded @ $100, 3/15/13) (b)  A1/AA     
9,301,416 

22 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO New York Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
           
Amount 
    Credit Rating       
(000) 
             (Moody’s/S&P)               Value 







$   1,250       Student Housing Corp., 5.125%, 7/1/34 (FGIC)  Aaa/AAA   
$ 
1,315,000 
4,270       Teachers College, 5.00%, 7/1/32 (MBIA)  Aaa/NR      4,402,413 
2,000       Yeshiva Univ., 5.125%, 7/1/34 (AMBAC)  Aaa/NR      2,104,000 
2,000    State Environmental Facs. Corp.,         
   
State Clean Water & Drinking Rev., 5.125%, 6/15/31 
Aaa/AAA      2,090,700 
5,000    State Municipal Board Bank Agcy. Special School Purpose Rev.,         
       5.00%, 6/1/23, Ser. C  NR/A+      5,141,400 
    State Urban Dev. Corp. Rev.,         
6,100   
   5.00%, 3/15/33, Ser. C-1 (Pre-refunded @ $100, 3/15/13) (b) 
A1/AA      6,597,516 
4,000       5.00%, 3/15/35, Ser. B  AA/AA      4,107,280 
    Tobacco Settlement Asset Backed, Inc. Rev., Ser. 1,         
25,000       5.75%, 7/15/32  Baa3/BBB      25,591,000 
10,000       6.375%, 7/15/39  Baa3/BBB      10,471,400 
    Triborough Bridge & Tunnel Auth. Rev. (FGIC-TCRS),         
710       5.00%, 1/1/32  NR/NR      730,555 
3,990       5.00%, 1/1/32, (Pre-refunded @ $100, 1/1/12) (b)  NR/NR      4,303,414 
2,000    Warren & Washington Counties Industrial Dev. Agcy. Fac. Rev.,         
       Glens Falls Hospital, 5.00%, 12/1/35, Ser. A (FSA)  Aaa/AAA      2,055,660 
750    Westchester Cnty. Industrial Dev. Agcy. Continuing         
    Care Retirement Rev., Kendal on Hudson, 6.50%, 1/1/34  NR/NR      785,370 


 
    Total New York Municipal Bonds & Notes (cost—$189,163,357)        198,294,839 
     


OTHER MUNICIPAL BONDS & NOTES—5.0%         

    California—1.6%         
    Alameda Unified School Dist., Alameda Cnty., GO, Ser. A (FSA),         
3,500       zero coupon, 8/1/24  Aaa/AAA      1,447,285 
3,000       zero coupon, 8/1/25  Aaa/AAA      1,174,140 
3,130    Covina Valley Unified School Dist., GO,         
       zero coupon, 6/1/25, Ser. B (FGIC)  Aaa/AAA      1,223,110 


            3,844,535 


    Colorado—0.0%         
210    Dawson Ridge Dist. No. 1, GO, zero coupon, 10/1/22, Ser. A  Aaa/NR      93,782 


    Puerto Rico—3.4%         
5,675    Children’s Trust Fund Tobacco Settlement Rev., 5.625%, 5/15/43  Baa3/BBB      5,768,183 
1,500    Commonwealth Highway & Transportation Auth. Rev.,         
   
   5.25%, 7/1/38, Ser. D (Pre-refunded @ $100, 7/1/12) (b) 
Baa2/AAA      1,631,760 
750    Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN  A3/A-      769,605 


            8,169,548 


 
    Total Other Municipal Bonds & Notes (cost—$11,362,663)        12,107,865 



11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 23


PIMCO New York Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)
Principal 
           
Amount 
    Credit Rating       
(000) 
             (Moody’s/S&P)               Value 







NEW YORK VARIABLE RATE NOTES (c)(e)(f)—10.0%         

$   6,994    Long Island Power Auth. Electric System Rev.,         
       11.13%, 12/1/26, Ser. 339 (MBIA-IBC)  Aaa/NR   
$ 
8,278,098 
1,030    Mortgage Agcy. Rev., 9.15%, 10/1/27, Ser. 1199  Aa1/AA1      1,061,848 
    New York City Municipal Water Finance Auth.,         
       Water & Sewer System Rev.,         
1,250           10.315%, 6/15/32  NR/NR      1,358,800 
3,750           10.815%, 6/15/34  NR/NR      4,300,800 
1,950    New York City Trust for Cultural Resources Rev.,         
       10.301%, 2/1/34 (FGIC)  NR/NR      2,207,459 
2,475    State Dormitory Auth. Rev., 10.099%, 5/15/31 (AMBAC)  NR/AAA      3,615,282 
1,250    State Dormitory Auth. Rev., Drivers,         
       10.004%, 6/1/13, Ser. 93 (Radian)  Aa3/NR      1,396,600 
1,300    State Urban Dev. Corp. Rev., 12.94%, 3/15/35  NR/AA      1,469,390 


 
    Total New York Variable Rate Notes (cost—$23,321,263)        23,688,277 
     


OTHER VARIABLE RATE NOTES (f)—0.9%         

    Puerto Rico—0.9%         
1,900    Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A         
       (cost—$2,028,662)  Baa3/BBB-      2,054,964 
     


U.S. TREASURY BILLS (h)—0.6%         

1,315    3.32%-3.65%,12/1/05-12/15/05 (cost—$1,313,268)        1,313,268 


 
    Total Investments before options written (cost—$227,189,213)—100.1%      237,459,213 
   


OPTIONS WRITTEN (i)—(0.1)%         

Contracts    Call Options—(0.0)%         
195    U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,         
       strike price $111, expires 2/24/06        (42,656)


    Put Options—(0.1)%         
195    U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,         
       strike price $107, expires 2/24/06        (94,453)


 
    Total Options Written (premiums received—$134,137)        (137,109)


 
    Total Investments net of options written (cost—$227,055,076)—100.0%   
$ 
237,322,104 



24 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO New York Municipal Income Fund II Schedule of Investments
November 30, 2005 (unaudited)


Footnotes
(a)     
Illiquid security.
(b)
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.
(c)
144A Security — Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.
(d)
When-Issued or delayed-delivery security. To be settled/delivered after November 30, 2005.
(e)
Residual Interest/Tax Exempt Municipal Bonds — The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index.
(f)
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 November 30, 2005.
(g)
Maturity date shown is date of next put.
(h)
All or partial amount segregated as collateral for futures contracts, when-issued or delayed-delivery securities.
(i)
Non-income producing.

Glossary:
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
FSA — insured by Financial Security Assurance, Inc.
GNMA — insured by Government National Mortgage Association
GO — General Obligation Bond
GTD — Guaranteed.
IBC — Insurance Bond Certificate
MBIA — insured by Municipal Bond Investors Assurance
NR — Not Rated
PSF — Public School Fund
Radian — insured by Radian Guaranty, Inc.
TCRS — Temporary Custodian Receipts
XLCA — insured by XL Capital Assurance

 


See accompanying notes to Financial Statements | 11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 25


PIMCO Municipal Income Fund II Statements of Assets and Liabilities
November 30, 2005 (unaudited)

            California       New York   
      Municipal II     Municipal II     Municipal II



     


     


Assets:                   
Investments, at value (cost–$1,272,711,098, $655,426,845                   
   and $227,189,213, respectively)      $1,370,108,361       $691,681,004       $237,459,213  

     








Cash      9,097,965       2,578,292       72,936  










Interest receivable      17,574,202       9,492,146       4,161,946  










Receivable for variation margin on futures contracts      260,002       81,786       21,107  










Receivable for investments sold      85,000       160,000        










Prepaid expenses      48,417       36,643       17,189  










   Total Assets      1,397,173,947       704,029,871       241,732,391  










 
Liabilities:                   
Payable for investments purchased      40,367,149       4,678,145        










Dividends payable to common and preferred shareholders      5,068,932       2,523,270       882,599  










Options written, at value (premiums received–                   
   $875,779, $467,139, and $134,137)      892,969       476,719       137,109  










Investment management fees payable      553,617       285,225       98,796  










Accrued expenses      108,031       61,122       34,223  










   Total Liabilities      46,990,698       8,024,481       1,152,727  










Preferred shares ($25,000 net asset and liquidation                   
   value per share applicable to an aggregate of 
                 
   20,200, 10,400 and 3,600 shares issued and                   
   outstanding, respectively)      505,000,000       260,000,000       90,000,000  










Net Assets Applicable to Common Shareholders      $845,183,249       $436,005,390       $150,579,664  










 
Composition of Net Assets Applicable to                   
   Common Shareholders:                   
Common Stock:                   
   Par value ($0.00001 per share)      $585       $303       $105  










   Paid-in-capital in excess of par      831,138,693       430,851,550       148,911,247  










Undistributed (dividends in excess of) net investment income      1,441,885       (196,848 )      (536,304 ) 










Accumulated net realized loss on investments      (92,068,323 )      (32,198,732 )      (9,050,646 ) 










Net unrealized appreciation of investments, futures                   
   contracts and options written      104,670,409       37,549,117       11,255,262  










Net Assets Applicable to Common Shareholders      $845,183,249       $436,005,390       $150,579,664  










Common Shares Outstanding      58,461,164       30,326,329       10,489,475  










Net Asset Value Per Common Share      $14.46       $14.38       $14.36  











26 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05 | See accompanying notes to Financial Statements


PIMCO Municipal Income Fund II Statements of Operations
November 30, 2005 (unaudited)

        California       New York   
    Municipal II   Municipal II     Municipal II



     


     


Investment Income:               
Interest      $35,709,974       $17,769,476       $ 6,463,626  

     








 
Expenses:               
Investment management fees    4,450,309     2,291,756       793,154  










Auction agent fees and commissions    644,985     337,545       117,582  










Custodian and accounting agent fees    85,759     68,252       38,626  










Reports to shareholders    39,856     14,945       11,108  










Trustees’ fees and expenses    33,489     20,123       8,326  










Audit and tax services    30,718     22,480       16,582  










New York Stock Exchange listing fees    25,592     13,306       11,763  










Transfer agent fees    18,107     18,751       19,879  










Legal fees    14,186     6,318       2,928  










Insurance expense    13,424     7,363       3,333  










Miscellaneous    7,686     6,375       5,896  










Investor relations    6,711     3,294       1,820  










   Total expenses    5,370,822     2,810,508       1,030,997  










   Less: investment management fees waived    (1,026,994 )    (528,867 )      (183,035 ) 










            custody credits earned on cash balances 
  (46,102 )    (12,542 )      (4,729 ) 










   Net expenses    4,297,726     2,269,099       843,233  










 
Net Investment Income    31,412,248     15,500,377       5,620,393  










 
Realized and Change in Unrealized Gain (Loss):               
Net realized gain (loss) on:               
   Investments    (1,098,506 )    (445,823 )      (267,302 ) 










   Futures contracts    (22,485,209 )    (8,173,851 )      (2,221,149 ) 










   Options written    3,750,036     2,849,957       917,120  










Net change in unrealized appreciation/depreciation of:               
   Investments    (22,035,707 )    (7,956,298 )      (3,606,413 ) 










   Futures contracts    24,628,836     7,989,726       2,682,421  










   Options written    909,949     557,800       196,217  










Net realized and change in unrealized loss on investments,               
   futures contracts and options written    (16,330,601 )    (5,178,489 )      (2,299,106 ) 










Net Increase in Net Assets Resulting from               
   Investment Operations    15,081,647     10,321,888       3,321,287  










Dividends on Preferred Shares from               
   Net Investment Income    (5,905,565 )    (2,636,715 )      (1,008,784 ) 










Net Increase in Net Assets Applicable to Common               
   Shareholders Resulting from Investment Operations 
    $  9,176,082       $  7,685,173       $  2,312,503  











See accompanying notes to Financial Statements | 11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 27


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


   
Municipal II



   
Six Months ended
 
   
November 30, 2005
Year ended
   
(unaudited)
May 31, 2005



     


Investment Operations:         
Net investment income      $ 31,412,248       $ 64,807,639  

     





Net realized loss on investments, futures contracts and options written    (19,833,679 )    (56,492,627 ) 







Net change in unrealized appreciation/depreciation of investments, futures         
   contracts and options written    3,503,078     104,781,470  







Net increase in net assets resulting from investment operations    15,081,647     113,096,482  







 
Dividends on Preferred Shares from Net Investment Income    (5,905,565 )    (8,269,559 ) 







Net increase in net assets applicable to common shareholders         
   resulting from investment operations    9,176,082     104,826,923  







 
Dividends on Common Shareholders from Net Investment Income    (29,548,776 )    (58,819,603 ) 







 
Capital Share Transactions:         
Reinvestment of dividends and distributions    3,265,958     3,612,366  







Total increase (decrease) in net assets applicable to common shareholders    (17,106,736 )    49,619,686  







 
Net Assets Applicable to Common Shareholders:         
Beginning of period    862,289,985     812,670,299  







End of period (including undistributed (dividends in excess of) net investment         
   income of $1,441,885 and $5,483,978; $(196,848) and $1,703,352; 
       
   $(536,304) and $(41,926); respectively)      $845,183,249       $862,289,985  







 
Common Shares Issued in Reinvestment of Dividends:    221,020     247,531  








28 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05 | See accompanying notes to Financial Statements


California Municipal II     New York Municipal II  






Six Months ended
Six Months ended
November 30, 2005
Year ended
November 30, 2005
Year ended
(unaudited)
May 31, 2005
(unaudited)
May 31, 2005



     


     


     


  $  15,500,377       $  31,511,574       $    5,620,393       $  11,114,342  












(5,769,717 )    (15,854,430 )    (1,571,331 )    (3,938,025 ) 












591,228     50,065,774     (727,775 )    15,598,114  












10,321,888     65,722,918     3,321,287     22,774,431  












(2,636,715 )    (3,645,115 )    (1,008,784 )    (1,342,842 ) 












7,685,173     62,077,803     2,312,503     21,431,589  












(14,763,862 )    (29,434,247 )    (5,105,987 )    (10,169,499 ) 












1,488,301     1,293,066     561,014     592,411  












(5,590,388 )    33,936,622     (2,232,470 )    11,854,501  












 
441,595,778     407,659,156     152,812,134     140,957,633  












  $436,005,390       $441,595,778       $150,579,664       $152,812,134  












101,546     91,921     37,941     41,816  













11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 29


PIMCO Municipal Income Funds II Notes to Financial Statements
November 30, 2005 (unaudited)

1. Organization and Significant Accounting Policies
PIMCO Municipal Income Fund II (“Municipal II”), PIMCO California Municipal Income Fund II (“California Municipal II”) and PIMCO New York Municipal Income Fund II (“New York Municipal II”) collectively referred to as the “Funds” or “PIMCO Municipal Income Funds II”, were organized as Massachusetts business trusts on March 29, 2002. Prior to commencing operations on June 28, 2002, the Funds had no operations other than matters relating to their organization and registration as closed-end management investment companies registered under the Investment Company Act of 1940 and the rules and regulations thereunder, as amended. Allianz Global Investors Fund Management LLC (the “Investment Manager”), serves as the Funds’ investment manager and is an indirect wholly-owned subsidiary of Allianz Global Investors of America L.P. (“Allianz Global”). Allianz Global is an indirect, majority-owned subsidiary of Allianz AG.

Municipal II invests substantially all of its assets in a portfolio of municipal bonds, the interest from which is exempt from federal income taxes. California Municipal II invests substantially all of its assets in municipal bonds which pay interest that is exempt from federal and California state income taxes. New York Municipal II invests substantially all of its assets in municipal bonds which pay interest that is exempt from federal, New York State and New York City income taxes. The Funds will seek to avoid bonds generating interest income which could potentially subject individuals to alternative minimum tax. The issuers’ abilities to meet their obligations may be affected by economic and political developments in a specific state or region.

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

In the normal course of business the Funds enter into contracts that contain a variety of representations which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds based upon events that have not yet been asserted. However, the Funds expect the risk of any loss to be remote.

The following is a summary of significant accounting policies consistently followed by the Funds:

(a) Valuation of Investments
Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security may be fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees. The Funds’ investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or are valued at the last sale price on the exchange that is the primary market for such securities, or the last quoted bid price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. The independent pricing service uses information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Exchange traded options and futures are valued at the settlement price determined by the relevant exchange. Short-term investments 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. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily until settlement at the forward settlement value. The prices used by the Funds to value securities may differ from the value that would be realized if the securities were sold and the differences could be material to the financial statements. The Funds’ net asset values are determined daily as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange on each day the exchange is open for business.

(b) Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Interest income is recorded on an accrual basis. Original issue discounts or premiums on debt securities purchased are accreted or amortized daily to non-taxable interest income. Market discount, if any, is accreted daily to taxable income.

(c) Federal Income Taxes
The Funds intend to distribute all of their taxable income and to comply with the other requirements of the U.S. Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required. In addition, by distributing substantially all of their taxable ordinary income and long-term capital gains, if any, during each calendar year, the Funds intend not to be subject to U.S. federal excise tax.

30 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO Municipal Income Funds II Notes to Financial Statements
November 30, 2005 (unaudited)

1. Organization and Significant Accounting Policies (continued)

(d) Dividends and Distributions—Common Stock
The Funds declare dividends from net investment income monthly to common shareholders. Distributions of net realized capital gains, if any, are paid at least annually. Each Fund records dividends and distributions to its shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These “book-tax” differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment; temporary differences do not require reclassification. To the extent dividends and/or distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as dividends and/or distributions of paid-in capital in excess of par.

(e) Futures Contracts
A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into such a contract, the Funds are required to pledge to the broker an amount of cash or securities, equal to the minimum “initial margin” requirements of the exchange. Pursuant to the contracts, the Funds agree to receive from or pay to the broker an amount of cash or securities equal to the daily fluctuation in the value of the contracts. Such receipts or payments are known as “variation margin” and are recorded by the Funds as unrealized appreciation or depreciation. When the contracts are closed, the Funds record a realized gain or loss equal to the difference between the value of the contracts at the time they were opened and the value at the time they were closed. Any unrealized appreciation or depreciation recorded is simultaneously reversed. The use of futures transactions involves the risk of an imperfect correlation in the movements in the price of futures contracts, interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts.

(f) Option Transactions
The Funds may purchase and write (sell) put and call options on securities for hedging purposes, risk management purposes or as part of its investment strategy. The risk associated with purchasing an option is that the Funds pay a premium whether or not the option is exercised. Additionally, the Funds bear the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by the premiums paid. The proceeds from securities sold through the exercise of put options is decreased by the premiums paid.

When an option is written, the premium received is recorded as an asset with an equal liability which is subsequently adjusted to the current market value of the option written. These liabilities are reflected as options written in the Statement of Assets and Liabilities. Premiums received from writing options which expire unexercised are recorded on the expiration date as a realized gain. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchased transactions, as a realized loss. If a call option written by the Funds is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a put option written by the Funds is exercised, the premium reduces the cost basis of the security. In writing an option, the Funds bear the market risk of an unfavorable change in the price of the security underlying the written option. Exercise of a written option could result in the Funds purchasing a security at a price different from the current market value.

(g) Residual Interest Municipal Bonds (“RIBS”)/Residual Interest Tax Exempt Bonds (“RITES”)
The Funds invest in RIBS and RITES whose interest rates bear an inverse relationship to the interest rate on another security or the value of an index. RIBS and RITES are created by dividing the income stream provided by the underlying bonds to create two securities, one short-term and one long-term. The interest rate on the short-term component is reset by an index or auction process normally every seven to 35 days. After income is paid on the short-term securities at current rates, the residual income from the underlying bond(s) goes to the long-term securities. Therefore, rising short-term interest rates result in lower income for the longer-term portion, and visa versa. The longer-term bonds may be more volatile and less liquid than other municipal bonds of comparable maturity. Investments in RIBS and RITES typically will involve greater risk than an investment in a fixed-rate bond The Funds may also invest in RIBS and RITES for the purpose of increasing their leverage.

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 31


PIMCO Municipal Income Funds II Notes to Financial Statements
November 30, 2005 (unaudited)

1. Organization and Significant Accounting Policies (continued)

(h) When-Issued/Delayed-Delivery Transactions
The Funds may purchase or sell securities on a when-issued or delayed-delivery basis. The transactions involve a commitment to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, the Funds will set aside and maintain until the settlement date in a designated account, liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed-delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. The Funds may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a realized gain or loss. When a security on a delayed-delivery basis is sold, the Fund does not participate in future gains and losses with respect to the security.

(i) Custody Credits Earned on Cash Balances
The Funds benefit from an expense offset arrangement with their custodian bank whereby uninvested cash balances earn credits which reduce monthly custodian and accounting agent expenses. Had these cash balances been invested in income producing securities, they would have generated income for the Funds.

2. Investment Manager/Sub-Adviser
Each Fund has entered into an Investment Management Agreement (the “Agreements”) with the Investment Manager. Subject to the supervision by each Fund’s Board of Trustees, the Investment Manager is responsible for managing, either directly or through others selected by it, the Fund’s investment activities, business affairs and other administrative matters. Pursuant to the Agreements, the Investment Manager receives an annual fee, payable monthly, at the annual rate of 0.65% of each Fund’s average daily net assets, inclusive of net assets attributable to any preferred shares that may be outstanding. In order to reduce each Fund’s expenses, the Investment Manager has contractually agreed to waive a portion of its investment management fee for each Fund at the annual rate of 0.15% of each Fund’s average daily net assets, including net assets attributable to any preferred shares that may be outstanding, from the commencement of operations through June 30, 2007, and for a declining amount thereafter through June 30, 2009.

The Investment Manager has retained its affiliate, Pacific Investment Management Company LLC (the “Sub-Adviser”) to manage each Fund’s investments. Subject to the supervision of the Investment Manager, the Sub-Adviser makes all investment decisions for the Funds. The Investment Manager, not the Funds, pays a portion of the fees it receives to the Sub-Adviser in return for its services, at the maximum annual rate of 0.50% of each Funds average daily net assets, inclusive of net assets attributable to any preferred shares that may be outstanding. The Sub-Adviser has contractually agreed to waive a portion of the fees it is entitled to receive from the Investment Manager, such that the Sub-Adviser will receive 0.26% of each Fund’s average daily net assets, including net assets attributable to any preferred shares that may be outstanding, from the commencement of the Funds’ operations through June 30, 2007, and will receive an increasing amount not to exceed 0.50% of each Fund’s average daily net assets, including net assets attributable to any preferred shares that may be outstanding thereafter through June 30, 2009.

3. Investments in Securities

(a) For the period ended November 30, 2005, purchases and sales of investments, other than short-term securities, were:

 
California 
New York 
 
Municipal II 
Municipal II 
Municipal II 







Purchases 
$243,326,595 
  $77,222,783    $50,715,742   
Sales 
204,222,360 
80,006,802  41,223,066   

 

32 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO Municipal Income Funds II Notes to Financial Statements
November 30, 2005 (unaudited)

3. Investments in Securities (continued)

(b) Futures contracts outstanding at November 30, 2005:

 
   
Notional
Unrealized
 
   
Value
Expiration
Appreciation
Fund 
Type       
(000)
Date
     
(Depreciation)













Municipal II 
Long:   
U.S. Treasury Notes 5 yr. Futures    $ 518,900     3/22/06     $  (1,699,391 ) 
 
Short:   
U.S. Treasury Notes 10 yr. Futures    (32,300 )    12/20/05       819,484  
 
U.S. Treasury Bond Futures    (263,700 )    12/20/05       7,751,656  
 
U.S. Treasury Notes 10 yr. Futures    (14,500 )    3/22/06       9,743  
 
U.S. Treasury Bond Futures    (119,100 )    3/22/06       408,844  


 
 
            $  7,290,336  


 
California Municipal II 
               
 
Long:  
U.S. Treasury Notes 5 yr. Futures   
$
43,300     3/22/06     $  (182,219 ) 
 
Short:  
U.S.Treasury Bond Futures    (57,700 )    12/20/05       1,417,695  
 
U.S. Treasury Bond Futures    (17,000 )    3/22/06       69,062  


 
 
            $  1,304,538  


 
New York Municipal II 
               
 
Long:  
U.S. Treasury Notes 5 yr. Futures   
$
23,300     3/22/06     $  (40,250 ) 
 
Short:  
U.S. Treasury Bond Futures    (19,600 )    12/20/05       1,004,922  
 
U.S. Treasury Bond Futures    (5,800 )    3/22/06       23,562  


 
 
            $  988,234  


 
 
(c) Transactions in options written for the six months ended November 30, 2005:
 
 
        Contracts  
Premiums














Municipal II: 
               
Options outstanding, May 31, 2005          2,365     $  2,248,095  
Options written 
        7,712       2,377,720  
Options expired 
        (7,537 )      (3,750,036 ) 

 

 
Options outstanding, November 30, 2005        2,540     $  875,779  

 

 
California Municipal II: 
               
Options outstanding, May 31, 2005          2,391     $  1,913,573  
Options written 
        4,637       1,403,523  
Options expired 
        (5,672 )      (2,849,957 ) 

 

 
Options outstanding, November 30, 2005        1,356     $  467,139  

 

 
New York Municipal II: 
               
Options outstanding, May 31, 2005          813     $  677,170  
Options written 
        1,242       374,087  
Options expired 
        (1,665 )      (917,120 ) 

 

 
Options outstanding, November 30, 2005        390     $  134,137  

 

 

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 33


PIMCO Municipal Income Funds II Notes to Financial Statements
November 30, 2005 (unaudited)

4. Income Tax Information

The cost of investments for federal income tax purposes and gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2005 were:

   
Gross 
Gross 
Net 
   
Cost of 
Unrealized 
Unrealized 
Unrealized 
   
Investments 
Appreciation 
Depreciation 
Appreciation 














Municipal II    $
1,272,711,098 
  $ 98,771,471    $ 1,374,208    $
97,397,263 
 
California Municipal II   
655,426,845 
  36,674,587    420,428   
36,254,159 
 
New York Municipal II   
227,189,213 
  11,727,823    1,457,823   
10,270,000 
 

5. Auction Preferred Shares
Municipal II has issued 4,040 shares of Preferred Shares Series A, 4,040 shares of Preferred Shares Series B, 4,040 shares of Preferred Shares Series C, 4,040 shares of Preferred Shares Series D and 4,040 shares of Preferred Shares Series E, each with a net asset and liquidation value of $25,000 per share plus accrued dividends.

California Municipal II has issued 2,080 shares of Preferred Shares Series A, 2,080 shares of Preferred Shares Series B, 2,080 shares of Preferred Shares Series C, 2,080 shares of Preferred Shares Series D and 2,080 shares of Preferred Shares Series E, each with a net asset and liquidation value of $25,000 per share plus accrued dividends.

New York Municipal II has issued 1,800 shares of Preferred Shares Series A and 1,800 shares of Preferred Shares Series B, each with a net asset and liquidation value of $25,000 per share, plus accrued dividends.

Dividends are accumulated daily at an annual rate set through auction procedures. Distributions of net realized capital gains, if any, are paid annually.

For the six months ended November 30, 2005, the annualized dividend rates ranged from:

    High     Low     November 30, 2005










Municipal II: 
           
     Series A 
  2.70 %    1.60 %    2.30 % 
     Series B 
  2.78 %    2.00 %    2.78 % 
     Series C 
  2.76 %    1.86 %    2.75 % 
     Series D 
  2.80 %    2.00 %    2.80 % 
     Series E 
  2.85 %    2.00 %    2.85 % 
California Municipal II: 
           
     Series A 
  2.60 %    0.75 %    2.34 % 
     Series B 
  2.55 %    1.40 %    2.16 % 
     Series C 
  2.70 %    0.90 %    2.70 % 
     Series D 
  2.60 %    1.50 %    1.69 % 
     Series E 
  2.80 %    1.60 %    2.80 % 
New York Municipal II: 
           
     Series A 
  2.70 %    1.60 %    2.70 % 
     Series B 
  2.80 %    1.80 %    2.80 % 

The Funds are subject to certain limitations and restrictions while Preferred Shares are outstanding. Failure to comply with these limitations and restrictions could preclude the Funds from declaring any dividends or distributions to common shareholders or repurchasing common shares and/or triggering the mandatory redemption of Preferred Shares at their liquidation value.

34 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO Municipal Income Funds II Notes to Financial Statements
November 30, 2005 (unaudited)

6. Subsequent Common Dividend Declarations
On December 1, 2005, the following dividends were declared to common shareholders payable December 30, 2005 to shareholders of record on December 16, 2005:

                               Municipal II  $0.084375 per common share 
  California Municipal II  $0.08125 per common share 
  New York Municipal II  $0.08125 per common share 
     
On January 3, 2006 the following dividends were declared to common shareholders payable February 1, 2006 to shareholders of record on January 13, 2006:
     
                               Municipal II  $0.084375 per common share 
  California Municipal II  $0.08125 per common share 
  New York Municipal II  $0.08125 per common share 

7. Legal Proceedings
In June and September 2004, the Investment Manager, certain of its affiliates (Allianz Global Investors Distributors LLC and PEA Capital LLC) and Allianz Global, agreed to settle, without admitting or denying the allegations, claims brought by the Securities and Exchange Commission (the “Commission”), the New Jersey Attorney General and the California Attorney General alleging violations of federal and state securities laws with respect to certain open-end funds for which the Investment Manager serves as investment adviser. Two settlements (with the Commission and New Jersey) related to an alleged “market timing” arrangement in certain open-end funds sub-advised by PEA Capital. Two settlements (with the Commission and California) related to the alleged use of cash and fund portfolio commissions to finance “shelf-space” arrangements with broker-dealers for open-end funds. The Investment Manager and its affiliates agreed to pay a total of $68 million to settle the claims related to market timing and $20.6 million to settle the claims related to shelf space. The settling parties also agreed to make certain corporate governance changes. None of the settlements allege that any inappropriate activity took place with respect to the Funds.

Since February 2004, the Investment Manager and certain of its affiliates and their employees have been named as defendants in a number of pending lawsuits concerning “market timing,” and “revenue sharing/shelf space/directed brokerage,” which allege the same or similar conduct underlying the regulatory settlements discussed above. The market timing lawsuits have been consolidated in a Multi-District Litigation in the United States District Court for the District of Maryland, and the revenue sharing/shelf space/directed brokerage lawsuits have been consolidated in the United States District Court for the District of Connecticut. An additional market timing lawsuit filed by the Attorney General of West Virginia against a number of fund companies, including the Investment Manager and two of its affiliates, has also been transferred to the Multi-District Litigation in Maryland. Any potential resolution of these matters may include, but not be limited to, judgments or settlements for damages against the Investment Manager or its affiliates or related injunctions. The Investment Manager believes that other similar lawsuits may be filed in federal or state courts in the future.

Under Section 9(a) of the 1940 Act, if any of the various regulatory proceedings or lawsuits were to result in a court injunction against the Investment Manager, Allianz Global and/or their affiliates, they and their affiliates would, in the absence of exemptive relief granted by the Commission, be barred from serving as an investment adviser/sub-adviser or principal underwriter for any registered investment company, including the Fund. In connection with an inquiry from the Commission concerning the status of the New Jersey settlement referenced above with regard to any implications under Section 9(a), the Investment Manager and certain of its affiliates, including the Investment Adviser, (together, the ‘‘Applicants’’) have sought exemptive relief from the Commission under Section 9(c) of the 1940 Act. The Commission has granted the Applicants a temporary exemption from the provisions of Section 9(a) with respect to the New Jersey settlement until the earlier of (i) September 13, 2006 and (ii) the date on which the Commission takes final action on their application for a permanent exemptive order. There is no assurance that the Commission will issue a permanent order. If a court injunction were to issue against the Investment Manager or the Affiliates with respect to any of the other matters referenced above, the Investment Manager or the affiliates would, in turn, seek similar exemptive relief under Section 9(c) with respect to that matter, although there is no assurance that such exemptive relief would be granted.

The foregoing speaks only as of the date hereof.

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 35


PIMCO Municipal Income Funds II Financial Highlights
For a share of common stock outstanding throughout each period:
               

   
Municipal II











   
Six Months
For the period
   
ended
Year Ended
June 28, 2002*
November 30, 2005



     
through
   
(unaudited)
May 31, 2005
May 31, 2004
May 31, 2003



     


     





Net asset value, beginning of period    $ 14.81     $ 14.01     $ 14.66     $ 14.33 ** 

     











Investment Operations:                 
Net investment income    0.54     1.11     1.17     0.93  













Net realized and unrealized gain (loss) on                 
   investments, futures contracts and 
               
   options written    (0.28 )    0.84     (0.77 )    0.53  













Total from investment operations    0.26     1.95     0.40     1.46  













Dividends and Distributions on                 
   Preferred Shares from:                 
Net investment income    (0.10 )    (0.14 )    (0.08 )    (0.08 ) 













Net realized gains                (0.01 ) 













Total dividends and distributions on                 
   preferred shares    (0.10 )    (0.14 )    (0.08 )    (0.09 ) 













Net increase in net assets applicable to                 
   common shareholders resulting from 
               
   investment operations    0.16     1.81     0.32     1.37  













Dividends and Distributions to Common                 
   Shareholders from:                 
Net investment income    (0.51 )    (1.01 )    (0.97 )    (0.84 ) 













Net realized gains                (0.09 ) 













Total dividends and distributions to common                 
   shareholders    (0.51 )    (1.01 )    (0.97 )    (0.93 ) 













Capital Share Transactions:                 
Common stock offering costs charged to                 
   paid-in capital in excess of par                (0.02 ) 













Preferred shares offering costs/underwriting                 
discounts charged to paid-in capital in                 
   excess of par                (0.09 ) 













Total capital share transactions                (0.11 ) 













Net asset value, end of period    $ 14.46     $ 14.81     $ 14.01     $ 14.66  













Market price, end of period    $ 15.26     $ 15.02     $ 13.31     $ 14.80  













Total Investment Return (1)    5.14 %    21.00 %    (3.69 )%    5.19 % 













RATIOS/SUPPLEMENTAL DATA:                 
Net assets applicable to common                 
shareholders, end of period (000)    $ 845,183     $ 862,290     $ 812,670     $ 846,885  













Ratio of expenses to average                 
   net assets (2)(3)(5)    1.00 %(4)   1.02 %    1.03 %    0.95 %(4)













Ratio of net investment income to average                 
   net assets (2)(5)    7.28 %(4)   7.71 %    8.16 %    6.99 %(4)













Preferred shares asset coverage per share    $ 66,829     $ 67,676     $ 65,224     $ 66,920  













Portfolio turnover    15 %    9 %    26 %    27 % 














36 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05 See accompanying notes to Financial Statements


PIMCO Municipal Income Funds II Financial Highlights
For a share of common stock outstanding throughout each period:
   

*
Commencement of operations.
**
Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.
(1)     
Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of each period and a sale of a share of common stock at the current market price on the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.
(2)
Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.
(3)
Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank (See note 1(i) in Notes to Financial Statements).
(4)
Annualized.
(5)
During the periods indicated above, the Investment Manager waived a portion of its investment management fee. If such a waiver had not been in effect, the ratio of expenses to average net assets and the ratio of net investment income to average net assets would have been 1.23% (annualized) and 7.05% (annualized), respectively for the six months ended November 30, 2005; 1.26% and 7.47%, respectively for the year ended May 31, 2005; 1.28% and 7.92%, respectively for the year ended May 31, 2004; and 1.18% (annualized) and 6.76% (annualized), respectively for the period June 28, 2002 (commencement of operations) through May 31, 2003.
 

 

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 37


PIMCO Municipal Income Funds II Financial Highlights
For a share of common stock outstanding throughout each period:


   
California Municipal II











   
Six Months
For the period
   
ended
Year Ended
June 28, 2002*
November 30, 2005



through
   
(unaudited)
May 31, 2005
May 31, 2004
May 31, 2003



     


     


     


Net asset value, beginning of period    $ 14.61     $ 13.53     $ 14.66     $ 14.33 ** 

     











Investment Operations:                 
Net investment income    0.52     1.05     1.13     0.87  













Net realized and unrealized gain (loss) on                 
   investments, futures contracts and                 
   options written    (0.17 )    1.13     (1.26 )    0.46  













Total from investment operations    0.35     2.18     (0.13 )    1.33  













Dividends and Distributions on                 
 Preferred Shares from:                 
Net investment income    (0.09 )    (0.12 )    (0.07 )    (0.07 ) 













Net increase (decrease) in net assets applicable                 
   to common shareholders resulting from 
               
   investment operations    0.26     2.06     (0.20 )    1.26  













Dividends and Distributions to Common                 
   Shareholders from:                 
Net investment income    (0.49 )    (0.98 )    (0.93 )    (0.81 ) 













Capital Share Transactions:                 
Common stock offering costs charged to                 
   paid-in capital in excess of par                (0.02 ) 













Preferred shares offering costs/underwriting                 
   discounts charged to paid-in capital in 
               
   excess of par                (0.10 ) 













Total capital share transactions                (0.12 ) 













Net asset value, end of period    $ 14.38     $ 14.61     $ 13.53     $ 14.66  













Market price, end of period    $ 15.48     $ 14.76     $ 13.27     $ 14.78  













Total Investment Return (1)    8.41 %    19.14 %    (3.92 )%    4.23 % 













RATIOS/SUPPLEMENTAL DATA:                 
Net assets applicable to common                 
   shareholders, end of period (000)    $ 436,005     $ 441,596     $ 407,659     $ 439,970  













Ratio of expenses to average                 
   net assets (2)(3)(5)    1.02 %(4)   1.06 %    1.07 %    0.97 %(4)













Ratio of net investment income to average                 
   net assets (2)(5)    6.98 %(4)   7.37 %    8.08 %    6.56 %(4)













Preferred shares asset coverage per share    $ 66,914     $ 67,451     $ 64,191     $ 67,301  













Portfolio turnover    11 %    9 %    43 %    84 % 














38 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05 See accompanying notes to Financial Statements


PIMCO Municipal Income Funds II Financial Highlights
For a share of common stock outstanding throughout each period:


*
Commencement of operations.
**
Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.
(1)     
Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of each period and a sale of a share of common stock at the current market price on the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.
(2)
Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.
(3)
Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank (See note 1(i) in Notes to Financial Statements).
(4)
Annualized.
(5)
During the periods indicated above, the Investment Manager waived a portion of its investment management fee. If such a waiver had not been in effect, the ratio of expenses to average net assets and the ratio of net investment income to average net assets would have been 1.26% (annualized) and 6.74% (annualized), respectively for the six months ended November 30, 2005; 1.30% and 7.13%, respectively for the year ended May 31, 2005; 1.31% and 7.83%, respectively for the year ended May 31, 2004; and 1.20% (annualized) and 6.34% (annualized), respectively for the period June 28, 2002 (commencement of operations) through May 31, 2003.
 

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 39


PIMCO Municipal Income Funds II Financial Highlights
For a share of common stock outstanding throughout each period:


   
New York Municipal II











   
Six Months
For the period
   
ended
Year Ended
June 28, 2002*
November 30, 2005



     
through
   
(unaudited)
May 31, 2005
May 31, 2004
May 31, 2003



     


     





Net asset value, beginning of period    $ 14.62     $ 13.54     $ 14.45     $ 14.33 ** 

     











Investment Operations:                 
Net investment income    0.54     1.07     1.06     0.86  













Net realized and unrealized gain (loss) on                 
   investments, futures contracts and 
               
   options written    (0.21 )    1.12     (0.97 )    0.28  













Total from investment operations    0.33     2.19     0.09     1.14  













Dividends and Distributions on                 
   Preferred Shares from:                 
Net investment income    (0.10 )    (0.13 )    (0.07 )    (0.08 ) 













Net increase in net assets applicable to                 
   common shareholders resulting from 
               
   investment operations    0.23     2.06     0.02     1.06  













Dividends and Distributions to Common                 
   Shareholders from:                 
Net investment income    (0.49 )    (0.98 )    (0.93 )    (0.81 ) 













Capital Share Transactions:                 
Common stock offering costs charged to                 
   paid-in capital in excess of par                (0.03 ) 













Preferred shares offering costs/underwriting                 
   discounts charged to paid-in capital in 
               
   excess of par                (0.10 ) 













Total capital share transactions                (0.13 ) 













Net asset value, end of period    $ 14.36     $ 14.62     $ 13.54     $ 14.45  













Market price, end of period    $ 15.44     $ 14.80     $ 13.05     $ 14.71  













Total Investment Return (1)    7.82 %    21.45 %    (5.15 )%    3.76 % 













RATIOS/SUPPLEMENTAL DATA:                 
Net assets applicable to common                 
   shareholders, end of period (000) 
  $ 150,580     $ 152,812     $ 140,958     $ 149,606  













Ratio of expenses to average                 
   net assets (2)(3)(5)    1.10 %(4)   1.14 %    1.15 %    1.02 %(4)













Ratio of net investment income to average                 
   net assets (2)(5)    7.31 %(4)   7.53 %    7.58 %    6.47 %(4)













Preferred shares asset coverage per share    $ 66,814     $ 67,439     $ 64,148     $ 66,552  













Portfolio turnover    17 %    18 %    18 %    27 % 














40 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05 See accompanying notes to Financial Statements


PIMCO Municipal Income Funds II Financial Highlights
For a share of common stock outstanding throughout each period:


*
Commencement of operations.
**
Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.
(1)     
Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of each period and a sale of a share of common stock at the current market price on the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.
(2)
Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.
(3)
Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank (See note 1(i) in Notes to Financial Statements).
(4)
Annualized.
(5)
During the periods indicated above, the Investment Manager waived a portion of its investment management fee. If such a waiver had not been in effect, the ratio of expenses to average net assets and the ratio of net investment income to average net assets would have been 1.33% (annualized) and 7.08% (annualized), respectively for the six months ended November 30, 2005; 1.38% and 7.29%, respectively for the year ended May 31, 2005; 1.39% and 7.34%, respectively for the year ended May 31, 2004; and 1.25% (annualized) and 6.25% (annualized), respectively for the period June 28, 2002 (commencement of operations), through May 31, 2003.
 

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 41


PIMCO Municipal Income Funds II   
Matters Relating to the Trustees 
  Consideration of the Investment 
  Management and Portfolio Management 
  Agreements 
  (unaudited) 



The Investment Company Act of 1940 requires that both the full Board of Trustees (the “Trustees”) and a majority of the non-interested (“independent”) Trustees, voting separately, annually approve the continuation of the Funds’ Investment Management Agreement with the Investment Manager and Portfolio Management Agreement between the Investment Manager and the Sub-Adviser (together, the “Agreements”). The Trustees consider matters bearing on the Funds and its investment management arrangements at their meetings throughout the year, including a review of performance data at each regular meeting. In addition, the Trustees met on June 15 and 16, 2005 (the “contract review meeting”) for the specific purpose of considering whether to approve the continuation of the Investment Management Agreement and the Portfolio Management Agreement. The independent Trustees were assisted in their evaluation of the Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately from the Funds’ management during the contract review meeting.

Based on their evaluation of factors that they deemed to be material, including those factors described below, the Board of Trustees, including a majority of the independent Trustees, unanimously concluded that the Funds’ Investment Management Agreement and Portfolio Management Agreement should be continued for an additional one-year period.

In connection with their deliberations regarding the continuation of the Agreements, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. As described below, the Trustees considered the nature, quality, and extent of the various investment management, administrative and other services performed by the Investment Manager and the Sub-Adviser under the Agreements.

In connection with their contract review meeting, the Trustees received and relied upon materials provided by the Investment Manager which included, among other items: (i) information provided by Lipper Inc. on the total return investment performance (based on net assets) of each Fund for various time periods and the investment performance of a group of funds with substantially similar investment classifications/objectives, (ii) information provided by Lipper Inc. on the Funds’ management fees and other expenses and the management fees and other expenses of comparable funds identified by Lipper, Inc. (iii) information regarding the investment performance and management fees of comparable portfolios of other clients of the Sub-Adviser, including institutional separate account and other clients, (iv) an estimate of the profitability to the Investment Manager from its relationship with the Funds for the twelve months ended March 31, 2005, (v) descriptions of various functions performed by the Investment Manager and the Sub-Adviser for the Funds, such as compliance monitoring and portfolio trading practices, and (vi) information regarding the overall organization of the Investment Manager and the Sub-Adviser, including information regarding senior management, portfolio managers and other personnel providing investment management, administrative and other services to the Funds.

The Trustees’ conclusions as to the continuation of the Agreements were based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors.

As part of their review, the Trustees examined the Investment Manager’s and Sub-Adviser’s abilities to provide high quality investment management and other services to the Funds. The Trustees considered the investment philosophy and research and decision-making processes of the Sub-Adviser; the experience of key advisory personnel of the Sub-Adviser responsible for portfolio management of the Funds; the ability of the Investment Manager and Sub-Adviser to attract and retain capable personnel; the capability and integrity of the senior management and staff of the Investment Manager and Sub-Adviser; and the level of skill required to manage the Funds. In addition, the Trustees reviewed the quality of the Investment Manager’s and Sub-Adviser’s services with respect to regulatory compliance and compliance with the investment policies of the Funds; the nature and quality of certain administrative services the Investment Manager is responsible for providing to the Funds; and conditions that might affect the Investment Manager’s or Sub-Adviser’s ability to provide high quality services to the Funds in the future under the Agreements, including each organization’s respective business reputation, financial condition and operational stability. Based on the foregoing, the Trustees concluded that the Sub-Adviser’s investment process, research capabilities and philosophy were well suited to the Funds given their investment objectives and policies, and that the Investment Manager and Sub-Adviser would be able to meet any reasonably foreseeable obligations under the Agreements.

42 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


PIMCO Municipal Income Funds II   
Matters Relating to the Trustees 
  Consideration of the Investment 
  Management and Portfolio Management 
  Agreements 
  (unaudited) (continued) 



Based on information provided by Lipper Inc., the Trustees also reviewed the Funds’ total return investment performance as well as the performance of comparable funds identified by Lipper Inc. In the course of their deliberations, the Trustees took into account information provided by the Investment Manager in connection with the contract review meeting, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Funds’ performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the Agreements, that they were satisfied with the Investment Manager’s and Sub-Adviser’s responses and efforts relating to investment performance.

In assessing the reasonableness of the Funds’ fees under the Agreements, the Trustees considered, among other information, the Funds’ management fees and the total expense ratios as a percentage of average net assets attributable to common shares and the management fee and total expense ratios of comparable funds identified by Lipper Inc.

The Trustees also considered the management fees charged by the Sub-Adviser to other clients, including institutional separate accounts with investment strategies similar to those of the Funds. They noted that the management fee paid by the Funds are generally higher than the fees paid by these clients of the Sub-Adviser, but that the administrative burden for the Investment Manager and the Sub-Adviser with respect to the Funds are also relatively higher, due in part to the more extensive regulatory regime to which the Funds are subject in comparison to institutional accounts. The Trustees noted that the management fee paid by the Funds are generally higher than the fees paid by the open-end funds but were advised that there are additional portfolio management challenges in managing the Funds such as the use of leverage and meeting a regular dividend. The Trustees noted that Municipal II had outperformed its peer group for the one-year and year-to-date periods ended May 31, 2005 in total return. The Trustees also noted that Municipal II’s expense ratio (after taking into account waivers) was below the median and average for its peer group. The Trustees noted that California Municipal II had significantly outperformed its peer group for the one-year and year-to-date periods ended May 31, 2005 in total return. The Trustees also noted that California Municipal II’s expense ratio was below the average and at the median for its peer group. The Trustees noted that New York Municipal II had significantly outperformed its peer group for the one-year and year-to-date periods ended May 31, 2005 in total return. The Trustees also noted that New York Municipal II’s expense ratio was just above the average and median for its peer group.

The Trustees also took into account that the Funds have preferred shares outstanding, which increases the amount of fees received by the Investment Manager and Sub-Adviser under the Agreements (because the fees are calculated based on the Funds’ total managed assets, including assets attributable to preferred shares and other forms of leverage outstanding). In this regard, the Trustees took into account that the Investment Manager and Sub-Adviser have a financial incentive for the Funds to continue to have preferred shares outstanding, which may create a conflict of interest between the Investment Manager and Sub-Adviser, on one hand, and the Funds’ common shareholders, on the other. In this regard, the Trustees considered information provided by the Investment Manager and Sub-Adviser indicating that the Funds’ use of leverage through preferred shares continues to be appropriate and in the interests of each Fund’s common shareholders.

Based on a profitability analysis provided by the Investment Manager, the Trustees also considered the estimated profitability of the Investment Manager from its relationship with the Funds and determined that such profitability was not excessive.

The Trustees also took into account that, as closed-end investment companies, the Funds do not currently intend to raise additional assets, so the assets of the Funds will grow (if at all) only through the investment performance of each Funds. Therefore, the Trustees did not consider potential economies of scale as a principal factor in assessing the fee rates payable under the Agreements.

Additionally, the Trustees considered so-called “fall-out benefits” to the Investment Manager and Sub-Adviser, such as reputational value derived from serving as investment manager and sub-adviser to the Funds.

After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the Agreements, that the fees payable under the Agreements represent reasonable compensation in light of the nature and quality of the services being provided by the Investment Manager and Sub-Adviser to the Funds.

11.30.05 | PIMCO Municipal Income Funds II Semi-Annual Report 43


PIMCO Municipal Income Funds II   
Annual Shareholder Meetings Results 
  (unaudited) 



The Funds held their annual meetings of shareholders on December 28, 2005. Common/Preferred shareholders of each fund voted to re-elect both R. Peter Sullivan III and David C. Flattum as Class III Trustees to serve until 2008.

The resulting vote count is indicated below:

 
Withheld 
 
Affirmative 
Authority 




 
Municipal II       
Re-election of David C. Flattum 
52,678,780 
528,698   
Re-election of R. Peter Sullivan III 
52,614,318 
593,160   
 
California Municipal II 
   
Re-election of David C. Flattum 
27,773,786 
186,405   
Re-election of R. Peter Sullivan III 
27,767,043 
193,148   
 
New York Municipal II 
   
Re-election of David C. Flattum 
9,733,817 
94,619   
Re-election of R. Peter Sullivan III 
9,735,440 
92,996   

Messrs. Paul Belica, Robert E Connor, Jack J. Dalessandro* and Hans W. Kertess* continue to serve as Trustees of the Funds.


* Preferred Shares Trustee

 

44 PIMCO Municipal Income Funds II Semi-Annual Report |11.30.05


Trustees and Principal Officers

Robert E. Connor 
Brian S. Shlissel 
   Trustee, Chairman of the Board of Trustees 
   President & Chief Executive Officer 
Paul Belica 
Mark V. McCray 
   Trustee 
   Vice President 
John J. Dalessandro II 
Lawrence G. Altadonna 
   Trustee 
   Treasurer, Principal Financial & Accounting 
David C. Flattum 
   Officer 
   Trustee 
Thomas J. Fuccillo 
Hans W. Kertess 
   Secretary & Chief Legal Officer 
   Trustee 
Youse Guia 
R. Peter Sullivan III 
   Chief Compliance Officer 
   Trustee 
 

Investment Manager
Allianz Global Investors Fund Management LLC
1345 Avenue of the Americas
New York, NY 10105

Sub-Adviser
Pacific Investment Management Company LLC
840 Newport Center Drive
Newport Beach, CA 92660

Custodian & Accounting Agent
State Street Bank & Trust Co.
801 Pennsylvania
Kansas City, MO 64105-1307

Transfer Agent, Dividend Paying Agent and Registrar
PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027

Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
300 Madison Avenue
New York, NY 10017

Legal Counsel
Ropes & Gray LLP
One International Place
Boston, MA 02210-2624

This report, including the financial information herein, is transmitted to the shareholders of PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II and PIMCO New York Municipal Income Fund II for their information. It is not a prospectus, circular or representation intended for use in the purchase of shares of the Funds or any securities mentioned in this report.

The financial information included herein is taken from the records of the Funds without examination by an independent registered public accounting firm, who did not express an opinion hereon.

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time each Fund may purchase shares of its common stock in the open market.

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of their fiscal year on Form N-Q. The Funds’ Forms N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room located in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The information on Form N-Q is also available on the Funds’ website at www.allianzinvestors.com.

A description of the policies and procedures that the Funds have adopted to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities held during the twelve months ended June 30, 2005 is available (i) without charge, upon request by calling the Funds’ transfer agent at (800) 331-1710; (ii) on the Funds’ website at www.allianzinvestors.com: and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.

Information on the Funds is available at www.allianzinvestors.com or by calling the Funds’ transfer agent at (800) 331-1710.


 

 





ITEM 2. CODE OF ETHICS
Not required in this filing.
   
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not required in this filing
   
ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not required in this filing
   
ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANT

Not required in this filing
   
ITEM 6.

SCHEDULE OF INVESTMENTS

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

   
ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not required in this filing
   
ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not effective at the time of this filing
   
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED COMPANIES.
   
Total Number
of Shares Purchased
Maximum Number of
Total Number
Average
as Part of Publicly
Shares that May yet Be
of Shares
Price Paid
Announced Plans or
Purchased Under the Plans
Period
Purchased
Per Share
Programs
or Programs
June 2005
N/A
14.63
17,649
N/A
July 2005
N/A
14.76
17,602
N/A
August 2005
N/A
14.69
17,147
N/A
September 2005
N/A
14.97
16,064
N/A
October 2005
N/A
14.57
16,608
N/A
November 2005
N/A
14.32
16,476
N/A
         
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
   
There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item. The Nominating Committee Charter governing the affairs of the Nominating Committee of the Board is posted on the Allianz Funds website at www.allianzinvestors.com.
   
ITEM 11. CONTROLS AND PROCEDURES
   

(a) The registrant’s President and Chief Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant’s internal controls or in factors that could affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

   
ITEM 12. EXHIBITS
   
(a)(1) Exhibit 99.302 Cert. - Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
   
(b) Exhibit 99.906 Cert. - Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



Signature

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.

PIMCO California Municipal Income Fund II

By /s/ Brian S.
Shlissel
Brian S. Shlissel, President & Chief Executive Officer

Date: February 6, 2006

By /s/ Lawrence G. Altadonna
Lawrence G. Altadonna, Treasurer, Principal Financial & Accounting Officer

Date: February 6, 2006

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
Brian S. Shlissel, President & Chief Executive Officer

Date: February 6, 2006

By /s/ Lawrence G. Altadonna

Lawrence G. Altadonna, Treasurer, Principal Financial & Accounting Officer

Date: February 6, 2006