PIMCO NEW YORK MUNICIPAL INCOME FUND II

N-CSRS 1 c48531_ncsrs.htm

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 811-21078

PIMCO New York 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, 2007

Date of reporting period: November 30, 2006

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.

ITEM 1. REPORT TO SHAREHOLDERS

PIMCO Municipal Income Fund II PIMCO California Municipal Income Fund II PIMCO New York Municipal Income Fund II Semi-Annual Report November 30, 2006

●
Letter to Shareholders	1
Performance & Statistics	2-4
Schedules of Investments	5-26
Statements of Assets and Liabilities	28
Statements of Operations	29
Statements of Changes in Net Assets	30-31
Statements of Cash Flows	32-33
Notes to Financial Statements	34-40
Financial Highlights	42-47
Matters Relating to the Trustees Consideration
of the Investment Management and Portfolio
Management Agreements	48-50
Annual Shareholder Meetings Results/
Corporate Changes	51

PIMCO Municipal Income Funds II Letter to Shareholders

April 15, 2007

Dear Shareholder:

We are pleased to provide you with the semi-annual report for PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II and PIMCO New York Municipal Income Fund II (collectively, the Funds) for the six months ended November 30, 2006.

During the period, the bond market rallied as the economy slowed and expectations grew that the Federal Reserve (the Fed) might begin easing. In fact, the Fed left rates unchanged at 5.25% at its last four meetings. This came after 17 consecutive increases in short-term interest rates over two years. The apparent end of the Feds tightening cycle proved to be a positive for the Funds performance during the reporting period.

For specific information on the Funds performance, please review the following pages.

If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds shareholder servicing agent at (800) 331-1710. In addition, a wide range of information and resources can be accessed on our Web site, www.allianzinvestors.com/closedendfunds .

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

Sincerely, Hans W. Kertess Chairman of the Board of Trustees Brian S. Shlissel President & Chief Executive Officer

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

PIMCO Municipal Income Fund II Performance & Statistics November 30, 2006 (unaudited)

¢ For the six months ended November 30, 2006, PIMCO Municipal Income Fund II returned 6.65% on net asset value (NAV) and 13.17% on market price, compared with 6.25% and 8.22%, respectively, for the Lipper Analytical General Municipal Debt Funds (Leveraged) average. ¢ Municipal bonds, as measured by the Lehman Municipal Bond Index, underperformed the taxable bond market, as measured by the Lehman Aggregate Bond Index, returning 4.53% and 5.94%, respectively, for the six-month period. ¢ Municipal bond yields declined across all maturities during the reporting period. For example, 10-, 20- and 30-year AAA General Obligation yields declined by 46, 54 and 62 basis points, respectively. Note that when bond yields decline, bond prices rise, and vice versa. ¢ Tobacco securitization sector holdings were beneficial to performance during the reporting period as yields on tobacco municipals continued to decline on further positive legal rulings. ¢ Exposure to non-callable zero coupon municipals proved positive for performance.

Total Return (1) :	Market Price	Net Asset Value (NAV)
Six Months	13.17%	6.65%
1 Year	10.47%	11.88%
Commencement of Operations (6/28/02) to 11/30/06	8.31%	8.42%

| Common
Share Market Price/NAV Performance: Commencement of Operations (6/28/02) to
11/30/06 | |
| --- | --- |
| Market Price | $15.90 |
| NAV | $15.25 |
| Premium to NAV | 4.26% |
| Market Price Yield (2) | 4.91% |
| Moody s
Ratings (as a % of total investments) | |

(1) 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 Funds dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period more than one year represents the average annual total return.

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.

(2) 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, 2006.

2 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO California Municipal Income Fund II Performance & Statistics November 30, 2006 (unaudited)

¢ For the six months ended November 30, 2006, PIMCO California Municipal Income Fund II returned 6.71% on net asset value (NAV) and 13.83% on market price, compared with 6.27% and 7.27%, respectively, for the Lipper Analytical California Municipal Debt Funds average. ¢ California municipal bonds, as measured by the Lehman California Municipal Bond Index, outperformed the broader national municipal market, as measured by the Lehman Municipal Bond Index, for the six- month reporting period, returning 4.77% and 4.53%, respectively. ¢ California state AAA municipal bond yields declined across all maturities during the reporting period. For example, 5-, 10-, and 30-year General Obligation yields declined by 27, 48 and 63 basis points, respectively. Note that when bond yields decline, bond prices rise, and vice versa. ¢ Tobacco securitization sector holdings were beneficial to performance during the reporting period as yields on tobacco municipals continued to decline on further positive legal rulings. ¢ Exposure to non-callable zero coupon municipals proved positive for performance. ¢ Interest rate hedging strategies that benefit Fund performance when longer-term Treasuries lag longer-term municipals hindered performance as longer-term Treasuries outperformed longer-term municipals during the reporting period.

Total Return (1) :	Market Price	Net Asset Value ( NAV )
Six Months	13.83%	6.71%
1 Year	10.78%	11.53%
Commencement of Operations (6/28/02) to 11/30/06	8.47%	7.95%

| Common
Share Market Price/NAV Performance: Commencement of Operations (6/28/02) to
11/30/06 | |
| --- | --- |
| Market Price | $16.18 |
| NAV | $15.12 |
| Premium to NAV | 7.01% |
| Market Price Yield (2) | 5.19% |
| Moody s
Ratings (as a % of total investments) | |

(1) 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 more than one year represents the average annual total return.

(2) 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, 2006.

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

PIMCO New York Municipal Income Fund II Performance & Statistics November 30, 2006 (unaudited)

¢ For the six months ended November 30, 2006, PIMCO New York Municipal Income Fund II returned 6.44% on net asset value and 14.32% on market price, compared with 5.84% and 7.97%, respectively, for the Lipper Analytical New York Municipal Debt Funds average. ¢ New York municipal bonds, as measured by the Lehman New York Municipal Bond Index, underperformed the broader national municipal market, as measured by the Lehman Municipal Bond Index, for the six-month reporting period, returning 4.36% and 4.53%, respectively. ¢ New York insured AAA municipal bond yields declined across all maturities during the reporting period. For example, 5-, 10-, and 30-year General Obligation yields declined by 27, 48 and 63 basis points, respectively. Note that when bond yields decline, bond prices rise, and vice versa. ¢ Tobacco securitization sector holdings were beneficial to performance during the reporting period as yields on tobacco municipals continued to decline on further positive legal rulings. ¢ Exposure to non-callable zero coupon municipals proved positive for performance. ¢ Interest rate hedging strategies that benefit Fund performance when longer-term Treasuries lag longer-term municipals hindered performance as longer-term Treasuries outperformed longer-term municipals during the reporting period.

Total Return (1) :	Market Price	Net Asset Value ( NAV )
Six Months	14.32%	6.44%
1 Year	7.78%	11.89%
Commencement of Operations (6/28/02) to 11/30/06	7.71%	7.98%

| Common
Share Market Price/NAV Performance: Commencement of Operations (6/28/02) to
11/30/06 | |
| --- | --- |
| Market Price | $15.74 |
| NAV | $15.19 |
| Premium to NAV | 3.62% |
| Market Price Yield (2) | 5.05% |
| Moody s
Ratings (as a % of total investments) | |

(1) 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 more than one year represents the average annual total return.

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.

(2) 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, 2006.

4 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

Principal — Amount		Credit Rating
(000)		(Moodys/S&P)	Value
MUNICIPAL BONDS & NOTES94.8%
	Alabama4.0%
$10,000	Birmingham Baptist Medical Centers Special Care Facs.
	Financing Auth. Rev., 5.00%, 11/15/30, Ser. A	Baa1/NR	$ 10,379,500
	Birmingham Waterworks & Sewer Board Rev., Ser. B (MBIA),
1,145	5.00%, 1/1/27	Aaa/AAA	1,208,044
10,000	5.00%, 1/1/37	Aaa/AAA	10,479,200
18,000	5.25%, 1/1/33, (Pre-refunded @ $100, 1/1/13) (g)	NR/NR	19,372,680
1,750	Huntsville Health Care Auth. Rev., 5.75%, 6/1/32, Ser. B	A2/NR	1,905,540
16,580	Jefferson Cnty. Sewer Rev., 4.75%, 2/1/38, Ser. B,
	(Pre-refunded @ $100, 8/1/12) (FGIC) (a)	Aaa/AAA	17,608,126
			60,953,090
	Alaska0.2%
3,550	State Housing Finance Corp. Rev., 5.25%, 6/1/32, Ser. C (MBIA)	Aaa/AAA	3,651,601
	Arizona2.5%
1,300	Health Facs. Auth. Hospital System Rev., 5.75%, 12/1/32	NR/BBB	1,395,849
33,000	Salt River Project Agricultural Improvement & Power Dist. Rev.,
	5.00%, 1/1/37, Ser. A (g)	Aa1/AA	35,541,330
			36,937,179
	Arkansas0.1%
13,000	Arkansas Dev. Finance Auth. Rev., zero coupon, 7/1/46 (AMBAC)	Aaa/AAA	2,162,030
	California2.2%
9,610	Alameda Corridor Transportation Auth. Rev.,
	zero coupon, 10/1/16, Ser. A (AMBAC)	Aaa/AAA	6,563,342
	Golden State Tobacco Securitization Corp.,
	Tobacco Settlement Rev., Ser. 2003-A-1,
3,300	6.25%, 6/1/33	Baa3/BBB	3,714,645
9,000	6.75%, 6/1/39	Baa3/BBB	10,385,550
1,000	Rancho Cucamonga Community Facs. Dist., Special Tax,
	6.30%, 9/1/23, Ser. A	NR/NR	1,067,740
4,000	Southern California Public Power Auth., Transmission Project Rev.,
	zero coupon, 7/1/13	Aa3/A+	3,113,240
	Univ. of California Rev.,
4,430	4.75%, 5/15/37, Ser. C (MBIA)	Aaa/AAA	4,607,244
2,900	4.75%, 5/15/38, Ser. B	Aa3/AA-	2,986,043
			32,437,804
	Colorado5.2%
30,000	Dawson Ridge Dist. No. 1, GO, zero coupon, 10/1/22, Ser. A	Aaa/NR	15,566,100
5,000	Denver City & Cnty., CP, 5.50%, 12/1/25, Ser. B,
	(Pre-refunded @ $101, 12/1/10) (AMBAC) (a)	Aaa/AAA	5,410,850
	E-470 Public Highway Auth. Rev., Ser. B (MBIA),
20,000	zero coupon, 9/1/35	Aaa/AAA	5,098,800
15,000	zero coupon, 9/1/37	Aaa/AAA	3,450,000
	Health Facs. Auth. Rev.,
25,000	Catholic Health Initiatives, 5.50%, 3/1/32	Aa2/AA	26,694,000
18,305	Exempla, Inc., 5.625%, 1/1/33, Ser. A	A1/A-	19,486,405
6,500	Retirement Facs. Rev., Liberty Height, zero coupon, 7/15/22	Aaa/AAA	3,402,295
			79,108,450

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

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

Principal — Amount		Credit Rating
(000)		(Moodys/S&P)	Value
	District of Columbia1.2%
$17,500	Washington D.C. Convention Center Auth. Tax Rev.,
	4.75%, 10/1/28 (AMBAC)	Aaa/AAA	$ 17,696,875
	Florida4.0%
6,520	Brevard Cnty. Health Facs. Auth. Rev., 5.00%, 4/1/34	A2/A	6,831,395
	Highlands Cnty. Health Facs. Auth. Rev.,
2,830	Adventist, 5.00%, 11/15/31, Ser. C	A2/A+	2,969,321
8,000	Adventist Health System, 6.00%, 11/15/31, Ser. A,
	(Pre-refunded @ $101, 11/15/11) (a)	A2/A+	8,940,960
2,335	Hillsborough Cnty. Industrial Dev. Auth., Pollution Control Rev.,
	Tampa Electric Co. Project, 5.50%, 10/1/23	Baa2/BBB-	2,479,046
635	Hillsborough Cnty. Industrial Dev. Auth. Rev., Health Fac. Project,
	5.625%, 8/15/23	Baa2/BBB	664,617
7,135	Jacksonville Health Facs. Auth. Rev., 5.25%, 11/15/32, Ser. A	Aa2/AA	7,615,970
11,500	Lakeland Hospital System Rev., Regional Health System,
	5.50%, 11/15/32, (Pre-refunded @ $101, 11/15/12) (a)	A2/NR	12,765,690
3,000	Leesburg Hospital Rev., Lessburg Regional Medical
	Center Project, 5.50%, 7/1/32	Baa1/BBB+	3,156,870
	Orange Cnty. Health Facs. Auth. Rev., Adventist Health System,
2,550	5.625%, 11/15/32	A2/A+	2,797,325
5,000	6.25%, 11/15/24	A2/A+	5,623,550
5,000	Sumter Landing Community Dev. Dist. Rev., 4.75%,
	10/1/35, Ser. A (MBIA) (g)	NR/AAA	5,182,050
1,500	Winter Springs Water & Sewer Rev., zero coupon,
	10/1/29 (FGIC)	Aaa/AAA	564,285
			59,591,079
	Georgia0.7%
4,000	Atlanta Water & Wastewater Rev., 5.00%, 11/1/39,
	Ser. A (MBIA)	Aaa/AAA	4,194,560
1,500	Grantor Trust Govt, CP, 4.75%, 6/1/28, Ser. A (MBIA)	Aaa/AAA	1,627,140
9,600	Richmond Cnty. Dev. Auth. Rev., zero coupon, 12/1/21	Aaa/NR	5,217,216
			11,038,916
	Hawaii1.3%
19,170	Honolulu City & Cnty. Wastewater System Rev.,
	First Board Resolution, 4.75%, 7/1/28 (FGIC)	Aaa/NR	19,669,378
	Illinois19.9%
	Central Lake Cnty. Water Agcy. Rev., Ser. A (AMBAC),
3,610	5.125%, 5/1/28	Aaa/NR	3,845,047
8,150	5.125%, 5/1/32	Aaa/NR	8,649,758
5,050	Chicago, GO, 5.125%, 1/1/29, Ser. A (FGIC)	Aaa/AAA	5,227,659
	Chicago, Lake Shore East, Special Assessment,
3,162	6.625%, 12/1/22	NR/NR	3,448,066
6,700	6.75%, 12/1/32	NR/NR	7,316,199
	Chicago Board of Education School Reform, GO (FGIC),
15,535	zero coupon, 12/1/16, Ser. A	Aaa/AAA	10,479,756
5,000	zero coupon, 12/1/28, Ser. A	Aaa/AAA	1,957,750
4,500	zero coupon, 12/1/31	Aaa/AAA	1,527,795

6 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

Principal — Amount		Credit Rating
(000)		(Moodys/S&P)	Value
	Illinois(continued)
	Chicago City Colleges, GO (FGIC),
$32,670	zero coupon, 1/1/37	Aaa/AAA	$ 8,851,283
29,145	zero coupon, 1/1/38	Aaa/AAA	7,537,771
32,670	zero coupon, 1/1/39	Aaa/AAA	8,089,746
7,000	Chicago Midway Airport Rev., 5.00%, 1/1/31, Ser. B (MBIA)	Aaa/AAA	7,199,360
5,000	Cicero, GO, 5.25%, 12/1/31 (MBIA)	Aaa/AAA	5,399,850
10,000	City of Springfield Rev., 5.00%, 3/1/35 (MBIA)	Aaa/AAA	10,709,600
	Dev. Finance Auth. Retirement Housing Rev., Regency Park,
10,000	zero coupon, 7/15/23	NR/AAA	4,956,800
134,650	zero coupon, 7/15/25	NR/AAA	60,778,317
	Health Facs. Auth. Rev.,
5,000	Condell Medical Center Rev., 5.50%, 5/15/32	Baa2/NR	5,261,100
20,100	Elmhurst Memorial Healthcare, 5.625%, 1/1/28	A2/NR	21,642,675
	Metropolitan Pier & Exposition Auth. Rev. (MBIA),
60,000	zero coupon, 12/15/30	Aaa/AAA	21,945,600
50,000	zero coupon, 12/15/33	Aaa/AAA	16,002,500
2,460	zero coupon, 6/15/38	Aaa/AAA	643,290
4,500	Schaumburg, GO, 5.00%, 12/1/41, Ser. B (FGIC)	Aaa/AAA	4,751,550
10,000	State, GO, 5.00%, 3/1/34, Ser. A	Aa3/AA	10,583,900
68,470	State Sports Facs. Auth. Rev., zero coupon, 6/15/30 (AMBAC)	Aaa/AAA	64,292,645
			301,098,017
	Indiana0.5%
	Brownsburg 1999 School Building Corp. Rev., Ser. A,
	(Pre-refunded @ $100, 9/15/13) (FSA) (a),
1,000	5.00%, 9/15/25	Aaa/AAA	1,087,240
2,000	5.25%, 3/15/25	Aaa/AAA	2,204,380
4,125	Fort Wayne Pollution Control Rev., 6.20%, 10/15/25	Caa1/B-	4,240,335
500	State Bank Rev., Hendricks, 5.25%, 4/1/30, Ser. D (AMBAC)	Aaa/AAA	532,625
			8,064,580
	Iowa3.8%
2,300	Higher Education Loan Auth. Rev., Grandview College,
	5.10%, 10/1/36	NR/NR	2,371,645
46,000	Tobacco Settlement Auth. of Iowa Rev., zero coupon,
	6/1/34, Ser. B	Baa3/BBB	45,321,500
8,850	Tobacco Settlement Auth. Rev., 5.60%, 6/1/35, Ser. B,
	(Pre-refunded @ $101, 6/1/11) (a)	Baa3/AAA	9,626,145
			57,319,290
	Kansas0.2%
2,800	Univ. of Kansas, Hospital Auth. Health Facs. Rev.,
	5.625%, 9/1/32, (Pre-refunded @ $100, 9/1/12) (a)	NR/A	3,022,124
	Kentucky0.3%
2,500	Economic Dev. Finance Auth. Hospital Facs. Rev.,
	Catholic Healthcare Partners, 5.25%, 10/1/30	Aa3/AA-	2,643,450
1,945	St. Lukes Hospital, 6.00%, 10/1/19	A3/A	2,194,368
			4,837,818

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

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| | Louisiana4.6% | | |
| $20,400 | Public Facs. Auth. Rev., Ochsner Clinic Foundation, | | |
| | 5.50%, 5/15/32, Ser. B | A3/NR | $ 21,707,640 |
| | Tobacco Settlement Financing Corp. Rev., | | |
| 8,000 | 5.875%, 5/15/39, Ser. 2001-B (g) | Baa3/BBB | 8,611,120 |
| 36,395 | 5.875%, 5/15/39, Ser. 2001-B | Baa3/BBB | 39,175,214 |
| | | | 69,493,974 |
| | Maryland0.1% | | |
| 1,000 | State Health & Higher Educational Facs. Auth. Rev., | | |
| | Adventist Healthcare, 5.75%, 1/1/25, Ser. A | Baa2/NR | 1,077,230 |
| | Massachusetts3.7% | | |
| 14,500 | Bay Transportation Auth., Special Assessment, | | |
| | 4.75%, 7/1/34, Ser. A (g) | NR/NR | 15,047,520 |
| 1,300 | Bay Transportation Auth. Rev., General Transportation System, | | |
| | 4.75%, 3/1/21, Ser. A (MBIA) | Aaa/AAA | 1,329,692 |
| | State College Building Auth. Project Rev., Ser. B (XLCA), | | |
| 5,560 | 5.50%, 5/1/28 | Aaa/AAA | 6,778,863 |
| 7,645 | 5.50%, 5/1/33 | Aaa/AAA | 9,460,917 |
| 5,000 | 5.50%, 5/1/39 | Aaa/AAA | 6,301,700 |
| 4,295 | State Turnpike Auth. Rev., 4.75%, 1/1/34, Ser. A (AMBAC) | Aaa/AAA | 4,359,812 |
| 12,050 | State Water Res. Auth. Rev., 4.75%, 8/1/37, Ser. A (FSA) | Aaa/AAA | 12,148,569 |
| | | | 55,427,073 |
| | Michigan2.4% | | |
| | Detroit City School Dist., GO, Ser. A (a), | | |
| 8,500 | 5.00%, 5/1/32, (Pre-refunded @ $100, 5/1/13) (FGIC) | Aaa/AAA | 9,205,415 |
| 1,750 | 5.125%, 5/1/31, (Pre-refunded @ $100, 5/1/12) (FSA) | Aaa/AAA | 1,881,758 |
| 2,500 | Detroit Water Supply System Rev., 5.00%, 7/1/30, Ser. A (FGIC) | Aaa/AAA | 2,613,000 |
| | State Hospital Finance Auth. Rev., | | |
| 5,000 | Ascension Health, 5.25%, 11/15/26, Ser. B | Aa2/AA | 5,326,150 |
| | Oakwood Group, Ser. A, | | |
| 13,500 | 5.75%, 4/1/32 | A2/A | 14,526,270 |
| 1,925 | 6.00%, 4/1/22 | A2/A | 2,115,517 |
| | | | 35,668,110 |
| | Minnesota0.0% | | |
| 280 | City of Minneapolis, Tax Allocation, Grant Park Project, | | |
| | 5.35%, 2/1/30 | NR/NR | 284,855 |
| | Mississippi0.3% | | |
| 3,605 | Business Finance Corp., Pollution Control Rev., 5.875%, 4/1/22 | Ba1/BBB- | 3,617,401 |
| 1,000 | Dev. Bank Special Obligation, Projects & Equipment | | |
| | Acquisitions Rev., 5.00%, 7/1/24 (AMBAC) | Aaa/AAA | 1,056,500 |
| | | | 4,673,901 |
| | Missouri0.2% | | |
| 905 | Hanley Road & North of Folk Ave. Transportation Dist. Rev., | | |
| | 5.00%, 10/1/25 | NR/NR | 916,792 |
| 1,500 | St. Louis Parking Facs. Rev., Downtown Parking Fac., | | |
| | 6.00%, 2/1/28 | NR/NR | 1,568,010 |
| | | | 2,484,802 |

8 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| | Nevada1.7% | | |
| | Clark Cnty., GO (FGIC), | | |
| $ 1,450 | 5.00%, 6/1/31 | Aaa/AAA | $ 1,510,856 |
| 1,950 | 5.00%, 6/1/31, (Pre-refunded @ $100, 6/1/11) (a) | Aaa/AAA | 2,068,852 |
| | Reno Transportation Project Rev., (Pre-refunded @ $100, | | |
| | 6/1/12) (AMBAC) (a), | | |
| 3,960 | 5.125%, 6/1/27 | Aaa/AAA | 4,272,642 |
| 2,000 | 5.125%, 6/1/32 | Aaa/AAA | 2,157,900 |
| 3,500 | 5.125%, 6/1/37 | Aaa/AAA | 3,776,325 |
| 7,570 | 5.25%, 6/1/41 | Aaa/AAA | 8,214,510 |
| 3,290 | Truckee Meadows Water Auth. Rev., 5.125%, 7/1/30, | | |
| | Ser. A (FSA) | Aaa/AAA | 3,468,450 |
| | | | 25,469,535 |
| | New Hampshire0.2% | | |
| | Health & Education Facs. Auth. Rev., Catholic Medical Center, | | |
| 360 | 6.125%, 7/1/32 | Baa1/BBB+ | 398,088 |
| 2,640 | 6.125%, 7/1/32, (Pre-refunded @ $101, 6/1/12) (a) | Baa1/BBB+ | 2,991,120 |
| | | | 3,389,208 |
| | New Jersey2.4% | | |
| | Camden Cnty. Improvement Auth. Rev., Cooper Health System, | | |
| | (Pre-refunded @ $102, 2/15/07) (a), | | |
| 20 | 5.875%, 2/15/15 | Baa3/BBB | 20,483 |
| 40 | 6.00%, 2/15/27 | Baa3/BBB | 40,976 |
| | Economic Dev. Auth., Kapkowski Landfill Project, | | |
| 4,000 | 5.75%, 10/1/21 | Baa3/NR | 4,497,360 |
| 11,405 | 5.75%, 4/1/31 | Baa3/NR | 12,786,944 |
| | Economic Dev. Auth. Rev., | | |
| | Arbor Glen, | | |
| 525 | 6.00%, 5/15/28 | NR/NR | 544,404 |
| 225 | 6.00%, 5/15/28, Ser. A, (Pre-refunded @ $102, 5/15/09) (a) | NR/NR | 241,702 |
| 250 | Seashore Gardens, 5.375%, 11/1/36 | NR/NR | 252,545 |
| 3,500 | State Educational Facs. Auth. Rev., 6.00%, 7/1/25, Ser. D | NR/NR | 3,850,000 |
| | Tobacco Settlement Financing Corp. Rev., | | |
| 1,285 | 6.00%, 6/1/37 | Baa3/BBB | 1,405,225 |
| 3,095 | 6.125%, 6/1/42 | Baa3/BBB | 3,403,448 |
| 6,150 | 6.25%, 6/1/43 | Baa3/BBB | 6,904,113 |
| 2,500 | 6.75%, 6/1/39 | Baa3/BBB | 2,877,175 |
| | | | 36,824,375 |
| | New Mexico0.3% | | |
| 5,000 | Farmington Pollution Control Rev., 5.80%, 4/1/22 | Baa2/BBB | 5,049,550 |
| | New York3.8% | | |
| 1,200 | Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., | | |
| | 6.00%, 11/15/36 | NR/NR | 1,283,388 |
| 10,000 | Liberty Dev. Corp. Rev., 5.25%, 10/1/35 (g) | Aa3/AA- | 11,952,600 |
| 4,750 | New York City Municipal Water Finance Auth., | | |
| | Water & Sewer System Rev., 5.00%, 6/15/37, Ser. D (g) | Aa2/AA+ | 5,076,135 |
| | Metropolitan Transportation Auth. Rev., | | |
| 10,600 | 5.00%, 11/15/30, Ser. A (FSA) | Aaa/AAA | 11,213,104 |
| 10,000 | 5.25%, 11/15/32, Ser. B | A2/A | 10,807,800 |

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

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| | New York(continued) | | |
| $ 7,000 | New York City Municipal Water Finance Auth., | | |
| | Water & Sewer System Rev., 5.00%, 6/15/39, Ser. A | Aa2/AA+ | $ 7,423,010 |
| 6,700 | State Dormitory Auth. Rev., Sloan-Kettering Center Memorial, | | |
| | 5.00%, 7/1/34, Ser. 1 | Aa2/AA | 7,048,065 |
| 2,000 | State Environmental Facs. Corp. Rev., 5.00%, 6/15/28 | Aaa/AAA | 2,132,820 |
| | | | 56,936,922 |
| | North Carolina0.0% | | |
| 550 | North Carolina Medical Care Commission Rev., | | |
| | Salemtowne, 5.10%, 10/1/30 | NR/NR | 560,131 |
| | Ohio0.5% | | |
| 7,500 | Lorain Cnty. Hospital Rev., Catholic Healthcare, | | |
| | 5.375%, 10/1/30 | Aa3/AA- | 7,958,475 |
| | Oklahoma0.5% | | |
| 6,500 | Tulsa Cnty. Industrial Auth. Rev., Legacy Apartments, | | |
| | 4.90%, 11/20/46 (FHA-GNMA) | Aaa/NR | 6,811,740 |
| | Pennsylvania2.3% | | |
| | Allegheny Cnty. Hospital Dev. Auth. Rev., Ser. B, | | |
| 530 | 9.25%, 11/15/15 | Ba3/B+ | 633,430 |
| 1,000 | 9.25%, 11/15/22 | Ba3/B+ | 1,195,150 |
| 5,700 | 9.25%, 11/15/30 | Ba3/B+ | 6,814,635 |
| 4,500 | Cumberland Cnty. Auth. Retirement Community Rev., | | |
| | Wesley Affiliated Services, 7.25%, 1/1/35, Ser. A, | | |
| | (Pre-refunded @ $101, 1/1/13) (a) | NR/NR | 5,413,860 |
| | Montgomery Cnty. Higher Education & Health Auth. Hospital Rev., | | |
| | Abington Memorial Hospital, Ser. A, | | |
| 5,000 | 5.125%, 6/1/27 | NR/A | 5,269,000 |
| 3,750 | 5.125%, 6/1/32 | NR/A | 3,936,525 |
| 3,000 | Philadelphia, GO, 5.25%, 9/15/25 (FSA) | Aaa/AAA | 3,171,300 |
| 5,000 | Philadelphia Auth. Industrial Dev. Lease Rev., | | |
| | 5.25%, 10/1/30, Ser. B (FSA) | Aaa/AAA | 5,310,400 |
| 500 | Pittsburgh & Allegheny Cnty. Public Auditorium Auth. Rev., | | |
| | 5.00%, 2/1/29 (AMBAC) | Aaa/AAA | 516,305 |
| 2,500 | Radnor Township School Dist., GO, 5.00%, 2/15/35, Ser. B, | | |
| | (Partially pre-refunded @ $100, 8/15/15) (FSA) (a) | Aaa/NR | 2,689,525 |
| | | | 34,950,130 |
| | Puerto Rico0.3% | | |
| 4,200 | Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN | A3/BBB+ | 4,470,564 |
| | Rhode Island4.4% | | |
| 62,000 | Tobacco Settlement Financing Corp. Rev., 6.25%, | | |
| | 6/1/42, Ser. A | Baa3/BBB | 66,169,500 |
| | South Carolina5.3% | | |
| 27,745 | Greenville Cnty. School Dist. Rev., Building Equity Sooner | | |
| | Tomorrow, 5.50%, 12/1/28, (Pre-refunded @ $101, | | |
| | 12/1/12) (a) | Aaa/AA- | 30,817,759 |
| 18,120 | Jobs Economic Dev. Auth. Rev., Bon Secours Health System, | | |
| | 5.625%, 11/15/30 | A3/A- | 19,406,339 |

10 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| | South Carolina(continued) | | |
| | Lexington Cnty., Health Services Dist. Hospital Rev., | | |
| $15,000 | 5.50%, 11/1/32 | A2/A | $ 16,232,550 |
| 3,500 | 5.50%, 5/1/37 | A2/A | 3,793,825 |
| 5,000 | 5.75%, 11/1/28 | A2/A | 5,513,700 |
| 3,250 | Tobacco Settlement Rev. Management Auth. Rev., | | |
| | 6.375%, 5/15/28, Ser. B | Baa3/BBB | 3,500,510 |
| 1,180 | Transportation Infrastructure Rev., 5.00%, 10/1/29, Ser. A, | | |
| | (Pre-refunded @ $100, 10/1/11) (AMBAC) (a) | Aaa/NR | 1,256,782 |
| | | | 80,521,465 |
| | Tennessee0.3% | | |
| 3,750 | Knox Cnty. Health Educational & Housing Facs., | | |
| | Board Hospital Facs. Rev., 5.25%, 10/1/30 | Aa3/AA- | 3,973,125 |
| | Texas10.8% | | |
| | Arlington Independent School Dist., GO (PSF-GTD), | | |
| 10 | 5.00%, 2/15/24 | Aaa/AAA | 10,254 |
| 990 | 5.00%, 2/15/24, (Pre-refunded @ $100, 2/15/09) (a) | Aaa/AAA | 1,021,264 |
| 4,480 | Aubrey Independent School Dist., GO, | | |
| | 5.50%, 2/15/33 (PSF-GTD) | Aaa/NR | 5,005,907 |
| 6,500 | Brazos Cnty. Health Facs. Dev. Corp., Franciscan Services | | |
| | Corp. Rev., 5.375%, 1/1/32 | NR/A- | 6,927,115 |
| 2,700 | Comal Cnty. Health Facs. Dev., McKenna Memorial Hospital | | |
| | Project Rev., 6.25%, 2/1/32 | Baa3/BBB- | 2,945,646 |
| 5,000 | Dallas Area Rapid Transit Rev., 5.00%, 12/1/31 (AMBAC) | Aaa/AAA | 5,221,800 |
| 20,000 | Frisco Independent School Dist., GO, zero coupon, | | |
| | 8/15/34 (PSF-GTD) | Aaa/NR | 5,911,200 |
| | Harris Cnty., | | |
| 19,750 | GO, 5.125%, 8/15/31, (Pre-refunded @ $100, 8/15/12) (a) | Aa1/AA+ | 21,308,275 |
| 5,250 | Health Facs. Dev. Corp. Rev., St. Lukes Episcopal Hospital, | NR/AAA | 5,655,982 |
| | 5.375%, 2/15/26, Ser. A, (Pre-refunded @ $100, 8/15/11) (a) | | |
| 25,000 | Senior Lien Toll Road Rev., 5.00%, 8/15/30 (FSA) | Aaa/AAA | 26,286,500 |
| 7,500 | Keller Independent School Dist., GO, 4.875%, | | |
| | 8/15/31 (PSF-GTD) | Aaa/AAA | 7,644,525 |
| 3,170 | Little Elm Independent School Dist., GO, 5.30%, 8/15/29, | | |
| | Ser. A (PSF-GTD) | NR/AAA | 3,431,018 |
| 6,250 | North Dallas Thruway Auth. Rev., 4.75%, 1/1/29 (FGIC) | Aaa/AAA | 6,334,688 |
| 5,000 | Quinlan Independent School Dist., GO, 5.10%, | | |
| | 2/15/32 (PSF-GTD) | Aaa/NR | 5,250,600 |
| 2,000 | Sabine River Auth. Rev., 5.20%, 5/1/28 | Baa2/BBB- | 2,101,700 |
| | State, GO, | | |
| 10,025 | 4.75%, 4/1/35, Ser. A (g) | Aa1/AA | 10,451,263 |
| 17,500 | 4.75%, 4/1/36 | Aa1/AA | 18,262,650 |
| | State Turnpike Auth. Central Turnpike System Rev., Ser. A (AMBAC), | | |
| 10,000 | zero coupon, 8/15/19 | Aaa/AAA | 5,973,800 |
| 8,880 | 5.00%, 8/15/42 | Aaa/AAA | 9,281,731 |

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

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| | Texas(continued) | | |
| | State Water Financial Assistance, GO, | | |
| $ 3,250 | 5.00%, 8/1/36 | Aa1/AA | $ 3,411,200 |
| 1,650 | 5.25%, 8/1/35 | Aa1/AA | 1,757,646 |
| 8,000 | Wichita Falls Water & Sewer Rev., 5.00%, 8/1/27 (AMBAC) | Aaa/AAA | 8,360,560 |
| | | | 162,555,324 |
| | Utah3.1% | | |
| 44,150 | Utah Transit Auth. Rev., 4.75%, 6/15/35, Ser. B (FSA) (g) | NR/NR | 46,093,483 |
| | Virginia0.5% | | |
| | Fredericksburg Industrial Dev. Auth., Medicorp Health System | | |
| | Rev., Ser. B, | | |
| 2,500 | 5.125%, 6/15/33 | A3/NR | 2,598,000 |
| 4,000 | 5.25%, 6/15/27 | A3/NR | 4,187,160 |
| | | | 6,785,160 |
| | Washington0.3% | | |
| 5,000 | Tacoma Sewer Rev., 5.00%, 12/1/31, Ser. A (FGIC) | Aaa/AAA | 5,224,100 |
| | Wisconsin0.7% | | |
| | Badger Tobacco Asset Securitization Corp., | | |
| 1,125 | 6.00%, 6/1/17 | Baa3/BBB | 1,210,219 |
| 8,170 | 6.125%, 6/1/27 | Baa3/BBB | 8,760,119 |
| | State Health & Educational Facs. Auth. Rev., | | |
| | Froedert & Community Health Oblig., | | |
| 90 | 5.375%, 10/1/30 | NR/AA- | 95,628 |
| 910 | 5.375%, 10/1/30, (Pre-refunded @ $101, 10/1/11) (a) | NR/AA- | 985,593 |
| | | | 11,051,559 |
| | Total Municipal Bonds & Notes (cost$1,283,260,482) | | 1,431,492,522 |
| VARIABLE RATE NOTES (d) 4.8% | | | |
| | Alabama0.5% | | |
| 4,450 | Jefferson Cnty. Sewer Rev., 11.23%, 2/1/36, Ser. 352 (FGIC) (b) | Aaa/NR | 5,450,805 |
| 1,400 | Montgomery Special Care Facs., Financing Auth. Rev., | | |
| | 10.04%, 11/15/29, Ser. 435 (MBIA) (b) | Aaa/NR | 1,604,960 |
| | | | 7,055,765 |
| | Colorado0.2% | | |
| 2,250 | Denver City & Cnty. Airport Rev., 10.04%, 11/15/25, | | |
| | Ser. 425 (FSA) (b) | Aaa/NR | 2,630,812 |
| | Florida0.4% | | |
| 1,782 | Orange Cnty. School Board, CP, 10.04%, 8/1/24, | | |
| | Ser. 328 (MBIA) (b) | Aaa/NR | 2,201,305 |
| 3,241 | State Governmental Utilities Auth. Rev., 10.04%, 10/1/29, | | |
| | Ser. 327 (AMBAC) (b) | Aaa/NR | 3,906,053 |
| | | | 6,107,358 |

12 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| | Illinois0.6% | | |
| | Chicago, GO (b), | | |
| $ 1,780 | 10.67%, 1/1/28, Ser. 332 (MBIA) | Aaa/NR | $ 2,160,920 |
| 2,200 | 12.54%, 1/1/40, Ser. 426 (FGIC) | Aaa/NR | 2,922,590 |
| 1,288 | Cook Cnty., GO, 10.04%, 11/15/28, Ser. 403 (FGIC) (b) | Aaa/NR | 1,586,365 |
| 2,000 | State, GO, 11.29%, 4/1/27, Ser. 783 (FSA) (b) | Aaa/NR | 2,702,200 |
| | | | 9,372,075 |
| | Massachusetts1.5% | | |
| 1,400 | Boston Water & Sewer Community Rev., 10.08%, 11/1/28, | | |
| | Ser. 434 (FGIC) (b) | Aaa/NR | 1,616,580 |
| 2,200 | State, GO, 11.34%, 11/1/30, Ser. 785 (FGIC-TCRS) (b) | Aaa/NR | 3,169,650 |
| | State Turnpike Auth. Rev. (b), | | |
| 7,366 | 10.08%, 1/1/37, Ser. 334 (MBIA) | Aaa/NR | 8,105,178 |
| 3,000 | 10.08%, 1/1/37, Ser. 489 (MBIA) | NR/AAA | 3,301,050 |
| 5,668 | 10.08%, 1/1/39, Ser. 335 (AMBAC) | Aaa/NR | 6,517,115 |
| | | | 22,709,573 |
| | Nevada0.2% | | |
| 2,200 | State, GO, 10.04%, 5/15/28, Ser. 344 (FGIC) (b) | Aaa/NR | 2,384,250 |
| | Ohio0.1% | | |
| 1,580 | Hamilton Cnty. Sales Tax Rev., 10.04%, 12/1/27, | | |
| | Ser. 356 (MBIA) (b) | Aaa/NR | 1,780,186 |
| | Pennsylvania0.5% | | |
| 3,050 | Philadelphia Auth. Industrial Dev. Rev., Doubletree, | | |
| | 6.50%, 10/1/27, (Pre-refunded @ $102, 2/1/07) (a) | NR/NR | 3,124,054 |
| | Philadelphia School Dist., GO (MBIA) (b), | | |
| 1,670 | 8.79%, 4/1/27, Ser. 345 | Aaa/NR | 1,814,539 |
| 2,677 | 8.79%, 4/1/27, Ser. 496 | NR/AAA | 2,908,694 |
| | | | 7,847,287 |
| | Texas0.7% | | |
| 2,460 | Denton Utility System Rev., 10.67%, 12/1/29, | | |
| | Ser. 428 (MBIA) (b) | Aaa/NR | 2,762,211 |
| 1,100 | Houston Airport System Rev., 10.04%, 7/1/25, Ser. 404 (FGIC) (b) | Aaa/NR | 1,198,835 |
| | Houston Water & Sewer System Rev. (b), | | |
| 2,200 | 10.04%, 12/1/28, Ser. 427 (FSA) | Aaa/NR | 2,667,500 |
| 3,070 | 11.29%, 12/1/30, Ser. 495 (FGIC) | NR/AAA | 4,026,612 |
| | | | 10,655,158 |
| | Washington0.1% | | |
| 1,820 | Central Puget Sound Regional Transit Auth. Sales Tax & Motor | | |
| | Rev., 8.80%, 2/1/28, Ser. 360 (FGIC) (b) | Aaa/NR | 2,033,213 |
| | Total Variable Rate Notes (cost$56,572,705) | | 72,575,677 |

11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 13

PIMCO Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

Principal
Amount
(000)		Value
U.S. TREASURY BILLS (e) 0.4%
$6,040	4.71%-4.98%, 12/14/06 (cost$6,029,541)	$ 6,029,541
	Total Investments before options written (cost$1,345,862,728) 100.0%	1,510,097,740
OPTIONS WRITTEN (f) (0.0)%
Contracts
	Call Options(0.0)%
	U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,
590	strike price $110, expires 2/23/07 (premiums received$246,989)	(322,656)
	Total Investments net of options written (cost$1,345,615,739) 100.0%	$ 1,509,775,084

14 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06 | See accompanying notes to Financial Statements

PIMCO California Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| CALIFORNIA MUNICIPAL
BONDS & NOTES96.3% | | | |
| $ 2,000 | ABC Unified School Dist., GO, zero coupon, 8/1/23, Ser. B (FGIC) | Aaa/AAA | $ 986,280 |
| 1,000 | Alpine Union School Dist., GO, zero coupon, 8/1/24, Ser. B (FSA) | Aaa/AAA | 491,820 |
| 8,115 | Anaheim City School Dist., GO, 5.00%, 8/1/26, | | |
| | (Pre-refunded @ $101, 8/1/11) (FGIC)(a) | Aaa/AAA | 8,731,415 |
| | Assoc. of Bay Area Govts Finance Auth. Rev., Odd Fellows Home, | | |
| 5,300 | 5.20%, 11/15/22 | NR/A+ | 5,616,145 |
| 26,000 | 5.35%, 11/15/32 | NR/A+ | 27,712,620 |
| 23,000 | Bakersfield, CP, zero coupon, 4/15/21 | NR/AAA | 12,626,080 |
| 2,000 | Bay Area Govt. Assoc. Lease Rev., 5.00%, 7/1/32, | | |
| | Ser. 2002-1 (AMBAC) | Aaa/AAA | 2,110,880 |
| 1,945 | Bay Area Govt. Assoc., Windmere Ranch Dist. 99-1, | | |
| | Special Assessment, 6.30%, 9/2/25 | NR/NR | 2,097,449 |
| 1,085 | Capistrano Unified School Dist., Community Fac. Dist., | | |
| | Special Tax, 5.70%, 9/1/20, (Pre-refunded @ $102, 9/1/09) (a) | NR/NR | 1,166,787 |
| 1,090 | Cathedral City Cove Improvements Dist. 04-02, | | |
| | Special Assessment, 5.00%, 9/2/30 | NR/NR | 1,115,789 |
| 2,300 | Ceres Unified School Dist., GO, zero coupon, 8/1/27 (FGIC) | Aaa/AAA | 747,247 |
| | Chula Vista Community Facs. Dist., Special Tax, | | |
| 3,000 | 5.125%, 9/1/36 | NR/NR | 3,086,670 |
| 1,825 | 6.15%, 9/1/26 | NR/NR | 1,958,115 |
| 4,380 | 6.20%, 9/1/33 | NR/NR | 4,698,995 |
| | Chula Vista, Special Tax, (Pre-refunded @ $102, 9/1/10) (a), | | |
| 1,160 | 6.05%, 9/1/25 | NR/NR | 1,282,693 |
| 2,500 | 6.10%, 9/1/32 | NR/NR | 2,768,775 |
| | Clovis Unified School Dist., GO, Ser. B (FGIC), | | |
| 2,000 | zero coupon, 8/1/23 | Aaa/AAA | 986,280 |
| 3,535 | zero coupon, 8/1/25 | Aaa/AAA | 1,589,689 |
| 2,500 | zero coupon, 8/1/27 | Aaa/AAA | 1,025,700 |
| 1,410 | Community College Financing Auth. Lease Rev., | | |
| | 5.00%, 8/1/27, Ser. A (AMBAC) | Aaa/AAA | 1,496,348 |
| | Corona-Norco Unified School Dist., Public Financing Auth., | | |
| | Special Tax, Ser. A, | | |
| 1,110 | 5.10%, 9/1/25 (AMBAC) | Aaa/AAA | 1,167,920 |
| 210 | 5.55%, 9/1/15 | NR/NR | 215,158 |
| 305 | 5.65%, 9/1/16 | NR/NR | 312,924 |
| 160 | 5.75%, 9/1/17 | NR/NR | 164,624 |
| 530 | 6.00%, 9/1/20 | NR/NR | 547,045 |
| 1,000 | 6.00%, 9/1/25 | NR/NR | 1,032,660 |
| 4,150 | 6.10%, 9/1/32 | NR/NR | 4,299,566 |
| 10,000 | Coronado Community Dev. Agcy., Tax Allocation, | | |
| | 4.875%, 9/1/35 (AMBAC)(g) | NR/NR | 10,142,700 |
| 2,800 | Cotati Redev. Agcy., Tax Allocation, 5.00%, 9/1/31, | | |
| | Ser. A (MBIA) | Aaa/AAA | 2,909,816 |
| 3,000 | Dinuba Financing Auth. Lease Rev., 5.10%, 8/1/32 (MBIA) | Aaa/AAA | 3,187,140 |
| | Educational Facs. Auth. Rev., | | |
| 3,475 | Loyola Marymount Univ., zero coupon, 10/1/34 (MBIA) | Aaa/NR | 1,043,786 |
| 2,000 | Woodbury Univ., 5.00%, 1/1/36 | Baa3/BBB- | 2,072,480 |

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

PIMCO California Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| $ 4,520 | Elk Grove Unified School Dist., Community Facs. Dist. No. 1 | | |
| | Special Tax, 4.75%, 12/1/33 (MBIA) | Aaa/AAA | $ 4,718,292 |
| | Empire Union School Dist., Special Tax (AMBAC), | | |
| 1,560 | zero coupon, 10/1/30 | Aaa/AAA | 548,012 |
| 1,265 | zero coupon, 10/1/32 | Aaa/AAA | 404,964 |
| 1,000 | Escondido Union School Dist., GO, zero coupon, 8/1/27 (FSA) | Aaa/AAA | 410,280 |
| 2,440 | Eureka Union School Dist., GO, zero coupon, 8/1/27 (FSA) | Aaa/AAA | 1,001,083 |
| | Foothill Eastern Corridor Agcy. Toll Road Rev., | | |
| 7,100 | zero coupon, 1/1/25, Ser. A | Aaa/AAA | 3,332,101 |
| 3,270 | zero coupon, 1/1/26, Ser. A | Aaa/AAA | 1,468,982 |
| 1,500 | zero coupon, 1/15/27 (MBIA-IBC) | Aaa/AAA | 1,456,020 |
| 3,780 | zero coupon, 1/1/28, Ser. A | Aaa/AAA | 1,548,590 |
| 17,860 | zero coupon, 1/1/30, Ser. A | Aaa/AAA | 6,662,316 |
| 400 | Franklin-McKinley School Dist., GO, 5.00%, 8/1/27, Ser. B, | | |
| | (Pre-refunded @ $100, 8/1/13) (FSA)(a) | Aaa/AAA | 436,820 |
| 1,440 | Fremont Community Facs. Dist. No. 1, Special Tax, | | |
| | 5.30%, 9/1/30 | NR/NR | 1,482,293 |
| | Golden State Tobacco Securitization Corp. Rev., | | |
| 10,000 | 5.00%, 6/1/35, Ser. A (FGIC)(g) | Aaa/AAA | 10,684,100 |
| 45,000 | 5.00%, 6/1/38, Ser. A (FGIC)(g) | Aaa/AAA | 48,011,400 |
| 12,485 | 5.00%, 6/1/45, Ser. A (AMBAC-TCRS)(g) | Aaa/AAA | 13,283,665 |
| 6,000 | 5.00%, 6/1/45, Ser. A (FGIC-TCRS)(g) | Aaa/AAA | 6,383,820 |
| 11,700 | 6.25%, 6/1/33, Ser. 2003-A-1 | Baa3/BBB | 13,170,105 |
| 36,200 | 6.75%, 6/1/39, Ser. 2003-A-1 | Baa3/BBB | 41,772,990 |
| | Health Facs. Finance Auth. Rev., | | |
| 2,115 | 5.375%, 11/1/20 (CA Mtg. Ins.) | NR/A+ | 2,249,091 |
| 4,000 | Adventist Health System, 5.00%, 3/1/33 | NR/A | 4,140,480 |
| 565 | Catholic Healthcare West, 5.00%, 7/1/28, | | |
| | (Partially
pre-refunded @ $101, 7/1/08) (a) | A3/A | 577,537 |
| | Paradise VY Estates (CA Mtg. Ins.), | | |
| 5,500 | 5.125%, 1/1/22 | NR/A+ | 5,827,470 |
| 3,875 | 5.25%, 1/1/26 | NR/A+ | 4,127,262 |
| 1,750 | Huntington Beach Community Facs. Dist., Special Tax, | | |
| | 6.30%, 9/1/32 | NR/NR | 1,805,177 |
| | Industry Urban Dev. Agcy., Tax Allocation (MBIA), | | |
| 1,045 | Transportation Dist. 2, 4.75%, 5/1/21 | Aaa/AAA | 1,066,558 |
| 1,035 | Transportation Dist. 3, 4.75%, 5/1/21 | Aaa/AAA | 1,056,352 |
| 200 | Infrastructure & Economic Dev. Bank Rev., Bay Area Toll Bridges, | | |
| | 5.00%, 7/1/36, (Pre-refunded @ $100, 1/1/28) (AMBAC)(a) | Aaa/AAA | 230,466 |
| 7,000 | Irvine Improvement Board Act 1915, Special Assessment, | | |
| | 5.70%, 9/2/26 | NR/NR | 7,223,230 |
| 1,000 | Irvine Unified School Dist., Special Tax, 5.125%, 9/1/36, Ser. A | NR/NR | 1,030,460 |
| 1,900 | Jurupa Unified School Dist., GO, zero coupon, 5/1/27 (FGIC) | Aaa/AAA | 779,532 |
| 2,450 | Kings Canyon JT Unified School Dist., GO, zero coupon, | | |
| | 8/1/27 (FGIC) | Aaa/AAA | 1,005,186 |
| 5,300 | Livermore-Amador Valley Water Management Agcy. Rev., | | |
| | 5.00%, 8/1/31, Ser. A (AMBAC) | Aaa/AAA | 5,550,372 |
| 5,935 | Long Beach Unified School Dist., GO, 5.00%, 8/1/27, | | |
| | Ser. C (MBIA) | Aaa/NR | 6,175,902 |

16 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO California Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| | Los Angeles, CP (MBIA), | | |
| $ 9,895 | 5.00%, 2/1/27 | Aaa/AAA | $ 10,403,108 |
| 2,685 | 5.00%, 10/1/27, Ser. AU | Aaa/AAA | 2,831,655 |
| 7,200 | Los Angeles, Wastewater System Rev., 5.00%, 6/1/30, | | |
| | Ser. A (FGIC) | Aaa/AAA | 7,580,664 |
| | Los Angeles Dept. of Power & Water Rev., Ser. A (g), | | |
| 15,000 | 4.75%, 7/1/30 (FSA) | Aaa/AAA | 15,731,550 |
| 30,000 | 5.00%, 7/1/35 (FSA) | Aaa/AAA | 32,248,200 |
| 16,950 | 5.125%, 7/1/41 (FGIC-TCRS) | Aaa/AAA | 17,768,007 |
| 1,000 | Manhattan Beach Unified School Dist., GO, zero coupon, | | |
| | 9/1/25 (FGIC) | Aaa/AAA | 448,100 |
| | Manteca Redev. Agcy., Tax Allocation, | | |
| 10,000 | 5.00%, 10/1/36 (AMBAC)(g) | NR/NR | 10,690,600 |
| 7,295 | 5.00%, 10/1/32 (FSA) | Aaa/AAA | 7,760,275 |
| | Manteca Unified School Dist., Special Tax (MBIA), | | |
| 2,365 | zero coupon, 9/1/25 | Aaa/AAA | 1,050,084 |
| 5,330 | 5.00%, 9/1/29, Ser. C | Aaa/AAA | 5,597,779 |
| 4,000 | Merced Cnty., CP, Juvenile Justice Correctional Fac., | | |
| | 5.00%, 6/1/32 (AMBAC) | Aaa/NR | 4,187,320 |
| | Modesto Elementary School Dist. Stanislaus Cnty., GO, Ser. A (FGIC), | | |
| 2,615 | zero coupon, 8/1/23 | Aaa/AAA | 1,279,075 |
| 2,705 | zero coupon, 8/1/24 | Aaa/AAA | 1,263,127 |
| 2,000 | zero coupon, 5/1/27 | Aaa/AAA | 821,220 |
| 2,150 | Modesto High School Dist. Stanislaus Cnty., GO, zero coupon, | | |
| | 8/1/26, Ser. A (FGIC) | Aaa/AAA | 922,758 |
| 1,000 | Modesto Public Financing Auth. Lease Rev., | | |
| | 5.00%, 9/1/29 (AMBAC) | Aaa/AAA | 1,030,000 |
| 2,385 | Monrovia Financing Auth. Lease Rev., Hillside Wilderness | | |
| | Preserve, 5.125%, 12/1/31 (AMBAC) | Aaa/AAA | 2,566,904 |
| | Montebello Unified School Dist., GO, | | |
| 1,500 | zero coupon, 8/1/24 (FGIC) | Aaa/AAA | 706,515 |
| 1,485 | zero coupon, 8/1/24 (FSA) | Aaa/AAA | 699,450 |
| 2,830 | zero coupon, 8/1/25 (FGIC) | Aaa/AAA | 1,272,651 |
| 2,775 | zero coupon, 8/1/27 (FGIC) | Aaa/AAA | 1,138,527 |
| 4,700 | Moreno Valley Unified School Dist. Community Facs. Dist., | | |
| | Special Tax, 5.20%, 9/1/36 | NR/NR | 4,843,491 |
| 2,400 | Morgan Hill Unified School Dist., GO, zero coupon, 8/1/23 (FGIC) | Aaa/AAA | 1,210,872 |
| 1,500 | Mountain View-Whisman School Dist., GO, 5.00%, 6/1/27, | | |
| | Ser. D, (Pre-refunded @ $101, 6/1/12) (MBIA)(a) | Aaa/AAA | 1,629,360 |
| 1,800 | Murrieta Redev. Agcy., Tax Allocation, 5.00%, 8/1/32 (MBIA) | Aaa/AAA | 1,912,716 |
| 3,245 | Newark Unified School Dist., GO, zero coupon, 8/1/26, | | |
| | Ser. D (FSA) | Aaa/AAA | 1,379,385 |
| 19,805 | Oakland, GO, 5.00%, 1/15/32, Ser. A (FGIC)(g) | NR/NR | 20,767,523 |
| | Oakland Redev. Agcy., Tax Allocation, Ser. A, | | |
| | (Pre-refunded @ $100, 3/1/13) (a), | | |
| 1,395 | 5.25%, 9/1/27 | NR/A | 1,531,501 |
| 2,185 | 5.25%, 9/1/33 | NR/A | 2,405,248 |

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

PIMCO California Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| $ 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) (a) | NR/AAA | $ 1,097,960 |
| 12,000 | Orange Cnty. Sanitation Dist., CP, 5.25%, 2/1/30 (FGIC) | Aaa/AAA | 12,999,480 |
| | Palmdale Community Redev. Agcy., Tax Allocation (AMBAC), | | |
| 1,230 | zero coupon, 12/1/30 | Aaa/AAA | 434,005 |
| 1,230 | zero coupon, 12/1/31 | Aaa/AAA | 414,547 |
| 1,225 | zero coupon, 12/1/32 | Aaa/AAA | 394,266 |
| 1,750 | Paramount Unified School Dist., GO, zero coupon, | | |
| | 9/1/23, Ser. B (FSA) | Aaa/AAA | 859,950 |
| | Perris Public Financing Auth. Rev., Tax Allocation, | | |
| 1,190 | 4.75%, 10/1/23, Ser. B (MBIA) | Aaa/AAA | 1,254,284 |
| 780 | 5.375%, 10/1/20, Ser. C | NR/BBB+ | 831,948 |
| 1,800 | 5.625%, 10/1/31, Ser. C | NR/BBB+ | 1,946,754 |
| 10,000 | Placentia-Yorba Linda Unified School Dist., CP, | | |
| | 5.00%, 10/1/32 (FGIC)(g) | Aaa/AAA | 10,744,400 |
| 10,150 | Placer Union High School Dist., GO, zero coupon, 8/1/33 (FSA) | Aaa/AAA | 3,164,872 |
| | Poway Unified School Dist., Special Tax, | | |
| | Community Facs. Dist. No. 6, | | |
| 2,700 | 5.125%, 9/1/28 | NR/NR | 2,782,755 |
| 2,300 | 5.125%, 9/1/28, Area B | NR/NR | 2,370,495 |
| 1,500 | 5.50%, 9/1/25 | NR/NR | 1,548,405 |
| 3,000 | 5.60%, 9/1/33 | NR/NR | 3,097,830 |
| 1,000 | 6.05%, 9/1/25, Area A | NR/NR | 1,069,370 |
| 5,500 | 6.125%, 9/1/33, Area A | NR/NR | 5,873,065 |
| | Community Facs. Dist. No. 10, | | |
| 1,000 | 5.65%, 9/1/25 | NR/NR | 1,023,290 |
| 2,200 | 5.70%, 9/1/32 | NR/NR | 2,248,928 |
| 2,000 | Rancho Cucamonga Community Facs. Dist., Special Tax, | | |
| | 6.375%, 9/1/31, Ser. A | NR/NR | 2,136,500 |
| 1,500 | Richmond Wastewater Rev., zero coupon, 8/1/30 (FGIC) | Aaa/AAA | 553,395 |
| 3,510 | Riverside, CP, 5.00%, 9/1/33 (AMBAC) | Aaa/AAA | 3,704,735 |
| | Riverside Unified School Dist., Community Facs., | | |
| | Dist. No. 15 Special Tax, Ser. A, | | |
| 1,000 | 5.15%, 9/1/25 | NR/NR | 1,030,780 |
| 1,000 | 5.25%, 9/1/30 | NR/NR | 1,030,810 |
| 1,000 | 5.25%, 9/1/35 | NR/NR | 1,030,730 |
| | Rocklin Unified School Dist., GO (FGIC), | | |
| 5,000 | zero coupon, 8/1/24 | Aaa/AAA | 2,355,050 |
| 4,000 | zero coupon, 8/1/25 | Aaa/AAA | 1,798,800 |
| 4,000 | zero coupon, 8/1/26 | Aaa/AAA | 1,716,760 |
| 4,500 | zero coupon, 8/1/27 | Aaa/AAA | 1,846,260 |
| | Roseville Redev. Agcy., Tax Allocation (MBIA), | | |
| 3,730 | 5.00%, 9/1/27 | Aaa/AAA | 3,951,040 |
| 3,365 | 5.00%, 9/1/32 | Aaa/AAA | 3,555,526 |
| 2,115 | 5.00%, 9/1/33 | Aaa/AAA | 2,233,652 |
| | Sacramento City Financing Auth. Rev., Ser. A, | | |
| 4,500 | 5.00%, 12/1/32 (FSA) | Aaa/AAA | 4,764,555 |
| 4,610 | North Natomas CFD No. 2, 6.25%, 9/1/23 | NR/NR | 4,791,588 |

18 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO California Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| $12,490 | Sacramento Cnty. Airport System Rev., | | |
| | 5.00%, 7/1/32, Ser. A (FSA) | Aaa/AAA | $ 13,082,526 |
| 14,350 | Sacramento Cnty. Sanitation Dist. Rev., 5.00%, 12/1/35, | | |
| | (Pre-refunded @ $100, 12/1/14) (AMBAC) (g) | Aaa/AAA | 15,373,586 |
| | San Diego Cnty. Water Auth. Water Rev., CP, Ser. A (MBIA), | | |
| 8,285 | 5.00%, 5/1/28 | Aaa/AAA | 8,792,291 |
| 8,000 | 5.00%, 5/1/29 | Aaa/AAA | 8,485,760 |
| | San Diego Community Facs. Dist. No. 3, Special Tax, Ser. A, | | |
| 1,200 | 5.60%, 9/1/21 | NR/NR | 1,231,692 |
| 800 | 5.70%, 9/1/26 | NR/NR | 820,640 |
| 2,300 | 5.75%, 9/1/36 | NR/NR | 2,362,514 |
| | San Diego Public Facs. Financing Auth. Lease Rev., | | |
| 1,000 | 5.00%, 5/15/29, Ser. A (FGIC) | Aaa/AAA | 1,037,810 |
| 1,500 | Fire & Life Safety Facs., 5.00%, 4/1/32 (MBIA) | Aaa/AAA | 1,568,265 |
| 14,000 | San Diego Public Facs. Financing Auth. Water Rev., | | |
| | 5.00%, 8/1/32 (MBIA) | Aaa/AAA | 14,737,800 |
| 7,775 | San Diego Unified School Dist., GO, | | |
| | 5.00%, 7/1/27, Ser. D (FGIC) (g) | NR/NR | 8,328,036 |
| | San Francisco City & Cnty. Airport Community, International | | |
| | Airport Rev., Ser. 2 (MBIA), | | |
| 5,585 | 4.50%, 5/1/28 | Aaa/AAA | 5,634,260 |
| 11,585 | 5.00%, 5/1/32 | NR/NR | 12,234,918 |
| 8,715 | 5.00%, 5/1/32, (Pre-refunded
@ $100, 5/1/12) (a) | NR/NR | 9,384,573 |
| 10,405 | San Joaquin Hills Transportation Corridor Agcy. Toll Road Rev., | | |
| | zero coupon, 1/1/25 | Aaa/AAA | 4,883,171 |
| | San Jose, Libraries & Parks, GO, | | |
| 14,970 | 5.00%, 9/1/32 (MBIA)(g) | NR/NR | 15,816,404 |
| 10,190 | 5.125%, 9/1/31 | Aa1/AA+ | 10,756,360 |
| 9,150 | San Jose Unified School Dist., GO, 5.00%, 8/1/27, Ser. A (FSA) (g) | NR/NR | 9,715,012 |
| | San Juan Unified School Dist., GO (FSA), | | |
| 1,770 | zero coupon, 8/1/23 | Aaa/AAA | 872,858 |
| 6,105 | zero coupon, 8/1/26 | Aaa/AAA | 2,620,205 |
| 4,835 | San Mateo Foster City School Dist., GO, 5.10%, 8/1/31, | | |
| | (Pre-refunded @ $101, 8/1/11) (FGIC)(a) | Aaa/AAA | 5,222,912 |
| 2,300 | San Mateo Union High School Dist., GO, zero coupon, | | |
| | 9/1/20 (FGIC) | Aaa/AAA | 1,301,087 |
| 1,730 | San Rafael City High School Dist., GO, | | |
| | 5.00%, 8/1/27, Ser. B (FSA) | Aaa/AAA | 1,821,638 |
| 3,280 | San Rafael Elementary School Dist., GO, | | |
| | 5.00%, 8/1/27, Ser. B (FSA) | Aaa/AAA | 3,453,742 |
| | Santa Clara Unified School Dist., GO (MBIA), | | |
| 2,755 | 5.00%, 7/1/25 | Aaa/AAA | 2,907,352 |
| 2,895 | 5.00%, 7/1/26 | Aaa/AAA | 3,053,849 |
| 3,040 | 5.00%, 7/1/27 | Aaa/AAA | 3,198,962 |
| 1,260 | Santa Cruz Cnty., Rev., 5.25%, 8/1/32 | A3/NR | 1,353,101 |
| | Santa Margarita Water Dist., Special Tax, | | |
| 2,000 | 6.00%, 9/1/30 | NR/NR | 2,136,620 |
| 3,000 | 6.25%, 9/1/29 | NR/NR | 3,213,840 |

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

PIMCO California Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| $ 2,000 | Santa Monica Community College Dist., GO, zero coupon, | | |
| | 8/1/26, Ser. C (MBIA) | Aaa/AAA | $ 783,020 |
| | Saugus Hart School Facs. Financing Auth., Special Tax, | | |
| | Community Facs. Dist. 00-1, | | |
| 1,140 | 6.10%, 9/1/32 | NR/NR | 1,180,561 |
| 2,225 | 6.125%, 9/1/33 | NR/NR | 2,304,121 |
| 1,000 | Shasta Union High School Dist., GO, zero coupon, 8/1/24 (FGIC) | Aaa/AAA | 471,010 |
| 2,745 | South Tahoe JT Powers Parking Financing Auth. Rev., | | |
| | 7.00%, 12/1/27, Ser. A | NR/NR | 2,781,756 |
| 1,800 | Southern Mono Health Care Dist., GO, zero coupon, | | |
| | 8/1/26 (MBIA) | Aaa/AAA | 757,836 |
| | State Public Works Board Lease Rev., UCLA Replacement Hospital, | | |
| 9,605 | 5.00%, 10/1/22, Ser. A (FSA) | Aaa/AAA | 10,170,542 |
| 2,095 | 5.00%, 4/1/26 | Aa2/AA- | 2,245,002 |
| 1,710 | State Univ. Rev., 5.00%, 11/1/33, Ser. A (AMBAC) | Aaa/AAA | 1,799,091 |
| | Statewide Community Dev. Auth. Rev., | | |
| 3,555 | Bentley School, 6.75%, 7/1/32 | NR/NR | 3,870,080 |
| 9,700 | Health Fac., Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.) | NR/A+ | 10,605,107 |
| 2,770 | Kaiser Permanente, 5.50%, 11/1/32, Ser. A | A3/A+ | 2,965,451 |
| 3,000 | Live Oak School, 6.75%, 10/1/30 | NR/NR | 3,165,510 |
| 500 | Peninsula Project, 5.00%, 11/1/29 | NR/NR | 503,865 |
| 1,170 | Statewide Community Dev. Auth., Wildwood Elementary | | |
| | School, CP, 6.10%, 11/1/15 | NR/NR | 1,172,913 |
| | Statewide Financing Auth., Tobacco Settlement Rev., | | |
| 1,740 | 5.625%, 5/1/29 | Baa3/NR | 1,825,260 |
| 20,000 | 6.00%, 5/1/37 (g) | NR/NR | 21,583,400 |
| 7,750 | Tamalpais Union High School Dist., GO, 5.00%, 8/1/27 (FSA) | Aaa/AAA | 8,177,490 |
| | Tobacco Securitization Agcy. Rev., | | |
| 4,500 | Alameda Cnty., 6.00%, 6/1/42 | Baa3/NR | 4,861,350 |
| | Fresno Cnty., | | |
| 4,045 | 5.625%, 6/1/23 | Baa3/BBB | 4,087,877 |
| 10,000 | 6.00%, 6/1/35 | Baa3/BBB | 10,803,000 |
| 7,000 | Gold Cnty., zero coupon, 6/1/33 | NR/BBB | 1,551,060 |
| 1,800 | Stanislaus Funding, 5.875%, 6/1/43, Ser. A | Baa3/NR | 1,911,096 |
| 8,000 | Tobacco Securitization Auth. of Southern California Rev., | | |
| | 5.00%, 6/1/37, Ser. A1 | Baa3/BBB | 8,165,200 |
| 995 | Tracy Community Facs. Dist., Special Tax, | | |
| | No. 99-2 South Macarthur Area, 6.00%, 9/1/27 | NR/NR | 1,026,571 |
| | Univ. Rev. (g), | | |
| 5,500 | 4.75%, 5/15/35, Ser. F (FSA) | NR/NR | 5,720,055 |
| 5,000 | 4.75%, 5/15/35, Ser. G (FGIC) | NR/NR | 5,200,050 |
| 5,650 | 4.75%, 5/15/38 Ser. B | Aa3/AA- | 5,817,636 |
| 10,000 | 5.00%, 9/1/27, Ser. O, (Pre-refunded @ $101, 9/1/10) (FGIC) | NR/NR | 10,504,500 |
| 10,000 | Ventura Cnty. Community College Dist., GO, | | |
| | 5.00%, 8/1/27, Ser. A (MBIA) | Aaa/AAA | 10,664,800 |
| 1,555 | Ventura Unified School Dist., GO, 5.00%, 8/1/32, Ser. F (FSA) | Aaa/AAA | 1,640,230 |
| 2,000 | Vernon Electric System Rev., Malburg Generating Station, | | |
| | 5.50%, 4/1/33, (Pre-refunded @ $100, 4/1/08) (a) | Aaa/NR | 2,054,280 |

20 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO California Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| | Victor Elementary School Dist., GO, Ser. A (FGIC), | | |
| $ 1,125 | zero coupon, 8/1/24 | Aaa/AAA | $ 529,886 |
| 2,410 | zero coupon, 8/1/26 | Aaa/AAA | 1,034,348 |
| 1,000 | Vista Unified School Dist., GO, zero coupon, 8/1/26, Ser. A (FSA) | Aaa/AAA | 429,190 |
| | West Contra Costa Univ. School Dist., GO, Ser. A (MBIA), | | |
| 2,740 | 5.00%, 8/1/26 | Aaa/AAA | 2,851,902 |
| 2,690 | 5.00%, 8/1/28 | Aaa/AAA | 2,798,488 |
| 1,890 | 5.00%, 8/1/31 | Aaa/AAA | 1,964,750 |
| 3,375 | Westlands Water Dist. Rev., CP, 5.00%, 9/1/34 (MBIA) | Aaa/AAA | 3,562,245 |
| 2,000 | William S. Hart JT School Financing Auth. Rev., 5.625%, 9/1/34 | NR/BBB+ | 2,143,860 |
| 2,110 | Yuba City Unified School Dist., GO, zero coupon, 9/1/25 (FGIC) | Aaa/AAA | 954,205 |
| | Total California Municipal Bonds & Notes (cost$839,355,945) | | 905,387,332 |
| OTHER MUNICIPAL BONDS & NOTES2.6% | | | |
| | Iowa1.7% | | |
| 16,100 | Tobacco Settlement Auth. of Iowa Rev., | | |
| | zero coupon, 6/1/34, Ser. B | Baa3/BBB | 15,862,525 |
| | New York0.4% | | |
| 3,250 | State Dormitory Auth. Rev. Hospital, 6.25%, 8/15/15 (FHA) | Aa2/AAA | 3,709,420 |
| | Puerto Rico0.5% | | |
| 2,000 | Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN | A3/BBB+ | 2,128,840 |
| 2,505 | Public Building Auth. Rev., Govt Facs., | | |
| | 5.00%, 7/1/36, Ser. I (GTD) | Baa3/BBB | 2,632,104 |
| | | | 4,760,944 |
| | Total Other Municipal Bonds & Notes (cost$23,117,849) | | 24,332,889 |
| CALIFORNIA VARIABLE RATE NOTES (b)(c)(d) 0.2% | | | |
| 1,500 | Modesto Public Financing Auth. Lease Rev., | | |
| | 10.20%, 9/1/29, Ser. 354 (AMBAC) (cost$1,159,460) | Aaa/NR | 1,725,000 |
| OTHER VARIABLE RATE NOTES (d) 0.6% | | | |
| | Puerto Rico0.6% | | |
| 5,300 | Public Finance Corp. Rev., | | |
| | 5.75%, 8/1/27, Ser. A (cost$5,607,158) | Ba1/BBB- | 5,761,365 |
| U.S. TREASURY BILLS (e) 0.3% | | | |
| 3,200 | 4.71%-4.98%, 12/14/06 (cost$3,194,458) | | 3,194,458 |

11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 21

PIMCO California Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

Contracts
OPTIONS PURCHASED (f) 0.0%
	Put Options0.0%
	Eurodollar Futures, Chicago Mercantile Exchange,
204	strike price $92, expires 3/19/07	$ 1,275
245	strike price $92.25, expires 3/19/07	1,531
	Total Options Purchased (cost$4,265)	2,806
	Total Investments before options written (cost$872,439,135) 100.0%	940,403,850
OPTIONS WRITTEN (f) (0.0)%
	Call Options(0.0)%
300	U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,
	strike price $110, expires 2/23/07 (premiums received$125,587)	(164,063)
	Total Investments net of options written (cost$872,313,548) 100.0%	$ 940,239,787

22 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06 | See accompanying notes to Financial Statements

PIMCO New York Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| NEW YORK MUNICIPAL
BONDS & NOTES90.0% | | | |
| | Buffalo Municipal Water Finance Auth., Water System Rev., | | |
| | Ser. B, (Pre-refunded @ $100, 7/1/12) (FSA)(a), | | |
| $ 250 | 5.00%, 7/1/27 | Aaa/AAA | $ 269,090 |
| 1,000 | 5.125%, 7/1/32 | Aaa/AAA | 1,082,650 |
| 2,400 | Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., | | |
| | 6.00%, 11/15/36 | NR/NR | 2,566,776 |
| 10,000 | Erie Cnty. Tobacco Asset Securitization Corp. Rev., | | |
| | 6.50%, 7/15/32, (Pre-refunded @ $101, 7/15/10) (a) | Ba1/AAA | 11,075,600 |
| 2,500 | Liberty Dev. Corp. Rev., 5.25%, 10/1/35 (g) | Aa3/AA- | 2,988,150 |
| | Metropolitan Transportation Auth. Rev., | | |
| 1,850 | 5.00%, 11/15/30, Ser. A (FSA) | Aaa/AAA | 1,957,004 |
| 10,000 | 5.25%, 11/15/31, Ser. E | A2/A | 10,709,900 |
| 7,000 | Metropolitan Transportation Auth. Service Contract Rev., | | |
| | 5.35%, 7/1/31, Ser. B | A1/AAA | 7,540,050 |
| 4,130 | Mortgage Agcy. Rev., 4.75%, 10/1/27, Ser. 128 (g) | Aa1/NR | 4,280,291 |
| 4,000 | New York City, GO, 5.00%, 3/1/33, Ser. I | A1/AA- | 4,193,920 |
| | New York City Health & Hospital Corp. Rev., Ser. A, | | |
| 1,100 | 5.375%, 2/15/26 | A2/A- | 1,155,495 |
| 2,000 | 5.45%, 2/15/26 | A2/A- | 2,116,420 |
| | New York City Industrial Dev. Agcy. Rev., | | |
| 1,000 | Eger Harbor, 4.95%, 11/20/32 (GNMA) | NR/AA+ | 1,043,200 |
| 1,500 | Staten Island Univ. Hospital, 5.00%, 7/1/27 | Aa2/NR | 1,600,155 |
| 1,230 | United Jewish Appeal Fed., 6.45%, 7/1/32 | B2/NR | 1,305,940 |
| | New York City Municipal Water Finance Auth., | | |
| | Water & Sewer System Rev., | | |
| 7,500 | 4.50%, 6/15/33, Ser. C (g) | NR/NR | 7,627,875 |
| 3,055 | 4.75%, 6/15/37, Ser. D (MBIA-IBC) | Aaa/AAA | 3,113,198 |
| 5,000 | 5.00%, 6/15/32, Ser. A (g) | Aa2/AA+ | 5,211,450 |
| 15,000 | 5.125%, 6/15/34, Ser. A (g) | Aa2/AA+ | 15,921,000 |
| 10,000 | New York City Transitional Finance Auth. Rev., | | |
| | 5.00%, 11/1/27, Ser. B | Aa1/AAA | 10,574,900 |
| 7,785 | New York City Trust for Cultural Res. Rev., | | |
| | 5.00%, 2/1/34 (FGIC)(g) | NR/NR | 8,299,822 |
| 3,600 | Port Auth. New York & New Jersey Rev., | | |
| | 5.00%, 4/15/32, Ser. 125 (FSA) | Aaa/AAA | 3,838,824 |
| 7,500 | State Dormitory Auth. Lease Rev., State Univ. Dormitory Facs., | | |
| | 5.00%, 7/1/32, (Pre-refunded @ $100, 7/1/12) (a) | Aa3/AA- | 8,053,050 |
| | State Dormitory Auth. Rev., | | |
| 2,600 | Catholic Health of Long Island, 5.10%, 7/1/34 | Baa1/BBB | 2,714,348 |
| 7,490 | Court Facs., 5.50%, 5/15/31 (AMBAC)(g) | NR/NR | 9,394,707 |
| 2,000 | Kaleida Health Hospital, 5.05%, 2/15/25 (FHA) | NR/AAA | 2,103,220 |
| 5,300 | Lenox Hill Hospital, 5.50%, 7/1/30 | Ba2/NR | 5,491,330 |
| | Long Island Univ. (Radian), | | |
| 1,320 | 5.25%, 9/1/28 | Aa3/AA | 1,392,006 |
| 80 | 5.25%, 9/1/28, (Pre-refunded @ $102, 9/1/09) (a) | Aa3/AA | 85,207 |
| 8,850 | North General Hospital, 5.00%, 2/15/25 | NR/AA- | 9,296,128 |
| 5,000 | Rochester Hospital, 5.00%, 12/1/35 (Radian)(g) | NR/NR | 5,339,350 |
| 5,000 | Saint Barnabas Hospital, 5.00%, 2/1/31, Ser. A (AMBAC-FHA) | Aaa/AAA | 5,260,900 |

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

PIMCO New York Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| $ 1,500 | Sloan-Kettering Center Memorial, 5.00%, 7/1/34, Ser. 1 | Aa2/AA | $ 1,577,925 |
| 8,600 | State Personal Income Tax, 5.00%, 3/15/32, | | |
| | (Pre-refunded
@ $100,
3/15/13) (a) | Aa3/AAA | 9,326,012 |
| 1,250 | Student Housing Corp., 5.125%, 7/1/34 (FGIC) | Aaa/AAA | 1,355,500 |
| 4,270 | Teachers College, 5.00%, 7/1/32 (MBIA) | Aaa/NR | 4,518,429 |
| 2,000 | Yeshiva Univ., 5.125%, 7/1/34 (AMBAC) | Aaa/NR | 2,168,800 |
| 2,000 | State Environmental Facs. Corp. Rev., State Clean | | |
| | Water & Drinking Rev., 5.125%, 6/15/31 | Aaa/AAA | 2,140,240 |
| 6,100 | State Urban Dev. Corp. Personal Income Tax Rev., | | |
| | 5.00%, 3/15/33, Ser. C-1, (Pre-refunded @ $100, 3/15/13) (a) | Aa3/AAA | 6,614,962 |
| | Tobacco Settlement Asset Backed, Inc. Rev., Ser. 1, | | |
| 25,000 | 5.00%, 6/1/34 | NR/BBB | 25,626,500 |
| 25,000 | 5.75%, 7/15/32, (Pre-refunded @ $100, 7/15/12) (a) | Aaa/AAA | 27,801,750 |
| 10,000 | 6.375%, 7/15/39, (Pre-refunded @ $101, 7/15/09) (a) | Aaa/AAA | 10,805,000 |
| | Triborough Bridge & Tunnel Auth. Rev. (FGIC-TCRS), | | |
| 710 | 5.00%, 1/1/32 | Aaa/AAA | 747,942 |
| 3,990 | 5.00%, 1/1/32, (Pre-refunded @ $100, 1/1/12) (a) | Aaa/AAA | 4,269,659 |
| 2,000 | Warren & Washington Cntys. Industrial Dev. Agcy. Fac. Rev., | | |
| | Glens Falls Hospital, 5.00%, 12/1/35, Ser. A (FSA) | Aaa/AAA | 2,122,140 |
| 750 | Westchester Cnty. Industrial Dev. Agcy. Continuing Care | | |
| | Retirement Rev., Kendal on Hudson, 6.50%, 1/1/34 | NR/NR | 809,888 |
| | Total New York Municipal Bonds & Notes (cost$241,225,511) | | 257,486,703 |
| OTHER MUNICIPAL BONDS & NOTES6.0% | | | |
| | California3.0% | | |
| | Alameda Unified School Dist., Alameda Cnty., GO, Ser. A (FSA), | | |
| 3,500 | zero coupon, 8/1/24 | Aaa/AAA | 1,648,535 |
| 3,000 | zero coupon, 8/1/25 | Aaa/AAA | 1,349,100 |
| 5,000 | California Cnty., Tobacco Securitization Agcy. Rev., | | |
| | zero coupon, 6/1/28 | Baa3/NR | 4,248,500 |
| 3,130 | Covina Valley Unified School Dist., GO, | | |
| | zero coupon, 6/1/25, Ser. B (FGIC) | Aaa/AAA | 1,417,671 |
| | | | 8,663,806 |
| | Colorado0.1% | | |
| 210 | Dawson Ridge Dist. No. 1, GO, zero coupon, 10/1/22, Ser. A | Aaa/NR | 108,963 |
| | Puerto Rico2.9% | | |
| 5,675 | Childrens Trust Fund, Tobacco Settlement Rev., | | |
| | 5.625%, 5/15/43 | Baa3/BBB | 5,957,728 |
| 1,500 | Commonwealth Highway & Transportation Auth. Rev., | | |
| | 5.25%, 7/1/38, Ser. D, (Pre-refunded @ $100, 7/1/12) (a) | Baa3/AAA | 1,633,395 |
| 750 | Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN | A3/BBB+ | 798,315 |
| | | | 8,389,438 |
| | Total Other Municipal Bonds & Notes (cost$15,591,426) | | 17,162,207 |

24 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO New York Municipal Income Fund II Schedule of Investments November 30, 2006 (unaudited)

| Principal — Amount | | Credit
Rating | |
| --- | --- | --- | --- |
| (000) | | (Moodys/S&P) | Value |
| NEW YORK VARIABLE RATE NOTES (b)(d) 2.9% | | | |
| $ 5,595 | Long Island Power Auth. Electric System Rev., | | |
| | 11.38%,
12/1/26, Ser. 339 (MBIA-IBC) | Aaa/NR | $ 6,573,060 |
| 1,300 | State Urban Dev. Corp. Rev., 10.457%, 3/15/35 | NR/AAA | 1,758,575 |
| | Total New York Variable Rate Notes (cost$6,935,001) | | 8,331,635 |
| OTHER VARIABLE RATE NOTES (d) 0.7% | | | |
| | Puerto Rico0.7% | | |
| 1,900 | Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A | | |
| | (cost$2,010,113) | Ba1/BBB- | 2,065,395 |
| U.S. TREASURY BILLS (e) 0.4% | | | |
| 1,050 | 4.743%-4.98%, 12/14/06 (cost$1,048,181) | | 1,048,181 |
| | Total Investment before options written (cost$266,810,232) 100.0% | | 286,094,121 |
| OPTIONS WRITTEN (f) (0.0)% | | | |
| Contracts | | | |
| | Call Options(0.0)% | | |
| 100 | U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade, | | |
| | strike price $110, expires 2/23/07 (premiums received$41,863) | | (54,688) |
| | Total Investments net of options written (cost$266,768,369) 100.0% | | $ 286,039,433 |

11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 25

PIMCO Municipal Income Funds II Schedules of Investments November 30, 2006 (unaudited)

Notes to the Schedules of Investments:

| (a) | Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding
date (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). |
| --- | --- |
| (b) | 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. |
| (c) | Inverse Floater The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. |
| (d) | 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, 2006. |
| (e) | All or partial amount segregated as collateral for futures contracts and/or transactions in options written. |
| (f) | Non-income producing. |
| (g) | Residual Interest Bonds held in trust Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Funds
acquired the residual interest certificates. These securities serve as collateral in a financing transaction. |

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

26 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06 | See accompanying notes to Financial Statements

[This page intentionally left blank.]

PIMCO Municipal Income Funds II Statements of Assets and Liabilities November 30, 2006 (unaudited)

	Municipal II		California — Municipal II		New York — Municipal II
Assets:
Investments, at value (cost$1,345,862,728, $872,439,135
and $266,810,232, respectively)	$ 1,510,097,740	$	940,403,850	$	286,094,116
Cash					1,757,162
Interest receivable	18,348,485		13,108,743		4,690,018
Receivable for investments sold	70,000
Receivable for variation margin on futures contracts					61,891
Prepaid expenses and other assets	2,260,930		34,299		447,271
Total Assets	1,530,777,155		953,546,892		293,050,458
Liabilities:
Payable for floating rate notes	115,540,000		220,964,559		41,028,367
Dividends payable to common and preferred shareholders	4,274,866		2,210,996		718,481
Payable to custodian for cash overdraft	3,997,287		3,264,878
Payable for variation margin on futures contracts	2,887,122		1,584,025		409,000
Interest payable	1,541,177		2,823,670		540,236
Investment management fees payable	573,228		294,891		102,306
Options written, at value (premiums received
$246,989, $125,587, and $41,863)	322,656		164,063		54,688
Accrued expenses and other payables	195,251		1,071,415		177,988
Total Liabilities	129,331,587		232,378,497		43,031,066
Preferred shares ($0.00001 par value and $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	$ 896,445,568	$	461,168,395	$	160,019,392
Composition of Net Assets Applicable to
Common Shareholders:
Common Stock:
Par value ($0.00001 per share)	$588		$305		$105
Paid-in-capital in excess of par	836,079,259		433,305,444		149,537,929
Dividends in excess of net investment income	(2,985,953	)	(1,334,907	)	(764,946	)
Accumulated net realized loss	(96,962,272	)	(38,285,558	)	(8,119,467	)
Net unrealized appreciation of investments, futures
contracts and options written	160,313,946		67,483,111		19,365,771
Net Assets Applicable to Common Shareholders	$ 896,445,568	$	461,168,395	$	160,019,392
Common Shares Outstanding	58,795,859		30,492,654		10,536,914
Net Asset Value Per Common Share	$15.25		$15.12		$15.19

28 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06 | See accompanying notes to Financial Statements

PIMCO Municipal Income Funds II Statements of Operations For the six months ended November 30, 2006 (unaudited)

| | Municipal
II | | California — Municipal
II | | New
York — Municipal
II | |
| --- | --- | --- | --- | --- | --- | --- |
| Investment Income: | | | | | | |
| Interest | $ 37,822,138 | $ | 22,774,683 | $ | 7,238,296 | |
| Expenses: | | | | | | |
| Investment management fees | 4,479,579 | | 2,304,736 | | 800,708 | |
| Interest expense | 2,154,893 | | 4,073,443 | | 782,729 | |
| Auction agent fees and commissions | 644,894 | | 337,454 | | 117,544 | |
| Custodian and accounting agent fees | 115,274 | | 47,450 | | 93,714 | |
| Trustees fees and expenses | 53,489 | | 28,666 | | 14,870 | |
| New York Stock Exchange listing fees | 27,328 | | 14,025 | | 12,305 | |
| Audit and tax services | 18,822 | | 16,417 | | 6,718 | |
| Transfer agent fees | 14,751 | | 17,751 | | 14,947 | |
| Legal fees | 12,568 | | 8,222 | | 2,928 | |
| Insurance expense | 12,958 | | 7,072 | | 3,134 | |
| Shareholder communications | 10,390 | | 9,058 | | 6,692 | |
| Investor relations | 4,575 | | 3,294 | | 915 | |
| Miscellaneous | 28,605 | | 15,331 | | 9,309 | |
| Total expenses | 7,578,126 | | 6,882,919 | | 1,866,513 | |
| Less: investment management fees waived | (1,033,749 | ) | (531,862 | ) | (184,779 | ) |
| custody
credits earned on cash balances | (110,197 | ) | (42,197 | ) | (41,866 | ) |
| Net expenses | 6,434,180 | | 6,308,860 | | 1,639,868 | |
| Net Investment Income | 31,387,958 | | 16,465,823 | | 5,598,428 | |
| Realized and Change in Unrealized Gain (Loss): | | | | | | |
| Net realized gain (loss) on: | | | | | | |
| Investments | (242,074 | ) | (401,998 | ) | 350,653 | |
| Futures contracts | (9,805,664 | ) | (8,601,221 | ) | (1,111,356 | ) |
| Options written | 713,526 | | 229,426 | | 162,362 | |
| Net change in unrealized appreciation/depreciation of: | | | | | | |
| Investments | 63,316,429 | | 34,311,806 | | 7,931,987 | |
| Futures contracts | (20,600,836 | ) | (8,598,772 | ) | (1,712,148 | ) |
| Options written | (75,667 | ) | (38,476 | ) | (12,825 | ) |
| Net realized and change in unrealized gain on investments, | | | | | | |
| futures contracts and options written | 33,305,714 | | 16,900,765 | | 5,608,673 | |
| Net Increase in Net Assets Resulting from Investment | | | | | | |
| Operations | 64,693,672 | | 33,366,588 | | 11,207,101 | |
| Dividends on Preferred Shares from Net Investment | | | | | | |
| Income | (8,456,935 | ) | (3,975,584 | ) | (1,446,119 | ) |
| Net Increase in Net Assets Applicable to Common | | | | | | |
| Shareholders Resulting from Investment Operations | $ 56,236,737 | $ | 29,391,004 | $ | 9,760,982 | |

See accompanying notes to Financial Statements | 11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 29

| PIMCO
Municipal Income Funds II |
| --- |
| Applicable
to Common Shareholders |

	Municipal II
	Six Months
	ended
	November 30, 2006	Year ended
	(unaudited)	May 31, 2006
Investment Operations:
Net investment income	$ 31,387,958	$	62,797,656
Net realized gain (loss) on investments, futures contracts and options written	(9,334,212	)	(15,393,416	)
Net change in unrealized appreciation/depreciation of investments, futures
contracts and options written	42,639,926		16,506,689
Net increase in net assets resulting from investment operations	64,693,672		63,910,929
Dividends to Preferred Shares from Net investment income:	(8,456,935	)	(13,697,379	)
Net increase in net assets applicable to common shareholders
resulting from investment operations	56,236,737		50,213,550
Dividends to Common Shareholders from Net investment income:	(24,665,597	)	(55,835,634	)
Capital Share Transactions:
Reinvestment of dividends	2,042,646		6,163,881
Total increase in net assets applicable to common shareholders	33,613,786		541,797
Net Assets Applicable to Common Shareholders:
Beginning of period	862,831,782		862,289,985
End of period (including dividends in excess of net investment
income of $(2,985,953) and $(1,251,379); $(1,334,907) and $(1,032,143);
$(764,946) and $(733,605); respectively)	$ 896,445,568	$	862,831,782
Common Shares Issued in Reinvestment of Dividends:	137,787		417,928

30 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06 | See accompanying notes to Financial Statements

California Municipal II
Six Months			Six Months
ended			ended
November 30, 2006	Year ended		November 30, 2006		Year ended
(unaudited)	May 31, 2006		(unaudited)		May 31, 2006
$ 16,465,823	$	32,096,363	$	5,598,428	$	11,187,579
(8,773,793	)	(2,003,450	)	(598,341	)	143,004
25,674,558		3,500,999		6,207,014		1,000,321
33,366,588		33,593,912		11,207,101		12,330,904
(3,975,584	)	(6,356,144	)	(1,446,119	)	(2,367,860	)
29,391,004		27,237,768		9,760,982		9,963,044
(12,793,003	)	(28,205,349	)	(4,183,650	)	(9,597,690	)
1,191,526		2,750,671		353,850		910,722
17,789,527		1,783,090		5,931,182		1,276,076
443,378,868		441,595,778		154,088,210		152,812,134
$ 461,168,395	$	443,378,868	$	160,019,392	$	154,088,210
80,775		187,096		23,876		61,504

See accompanying notes to Financial Statements | 11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 31

PIMCO California Municipal Income Fund II Statement of Cash Flows For the six months ended November 30, 2006 (unaudited)

Cash Flows used for Operating Activities: — Purchases of long-term investments	$ (65,485,710	)
Proceeds from sales of long-term investments	40,093,288
Interest received	16,989,411
Net cash provided by options written	363,979
Operating expenses paid	(2,264,234	)
Net cash paid for futures transactions	(15,295,092	)
Net increase in short-term investments	6,089,568
Net cash used for operating activities	(19,508,790	)
Cash Flows from Financing Activities:
Proceeds from issuance of floating rate notes	21,361,564
Cash dividends paid (excluding reinvestment of dividends of $1,191,526)	(15,573,825	)
Net provided by financing activities*	5,787,739
Net decrease in cash	(13,721,051	)
Cash at beginning of period	10,456,173
Cash at end of period	(3,264,878	)
Reconciliation of Net Increase (Decrease) in Net Assets From Investment
Operations to Net Cash Used for Operating Activities:
Net increase in net assets resulting from investment operations	33,366,588
Decrease in payable for investments purchased	(1,483,300	)
Decrease in receivable for investments sold	130,000
Decrease in interest receivable	98,810
Increase in premium on options written	125,587
Increase in prepaid expenses	(8,714	)
Decrease in Investment Management fees payable	(3,268	)
Increase in variation margin payable on futures contracts	1,526,840
Decrease in variation margin receivable on futures contracts	378,062
Decrease in net unrealized appreciation on options written	38,476
Decrease in accrued expenses	(16,835	)
Net increase in investments	(53,661,036	)
Net cash used for operating activities	$ (19,508,790	)

*** Supplemental Disclosure** Non-cash financing activity not included consists of interest expense on floating rate notes issued of $4,073,443.

32 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO New York Municipal II Fund Statement of Cash Flows For the six months ended November 30, 2006 (unaudited)

Cash Flows provided by Operating Activities: — Purchases of long-term investments	$ (8,559,073	)
Proceeds from sales of long-term investments	8,905,187
Interest, dividends, and facility and other fee income received	6,059,803
Net cash provided by options written	210,661
Operating expenses paid	(808,986	)
Net cash provided by futures transactions	(2,399,816	)
Net decrease in short-term investments	2,304,867
Net cash provided by operating activities	5,712,643
Cash Flows from Financing Activities*:
Cash dividends paid (excluding reinvestment of dividends of $353,850)	(5,291,043	)
Net increase in cash	421,600
Cash at beginning of period	1,335,562
Cash at end of period	1,757,162
Reconciliation of Net Increase (Decrease) in Net Assets From Investment
Operations to Net Cash Provided by Operating Activities:
Net increase in net assets resulting from investment operations	11,207,101
Increase in interest receivable	(154,602	)
Increase in premium on options written	41,863
Decrease in prepaid expenses	2,792
Decrease in investment management fees payable	(1,059	)
Decrease in variation margin payable on futures contracts	423,689
Decrease in net unrealized appreciation on options written	12,825
Decrease in accrued expenses	(46,580	)
Net increase in investments	(5,773,386	)
Net cash provided by operating activities	$ 5,712,643

*** Supplemental Disclosure** Non-cash financing activity not included consists of interest expense on floating rate notes issued of $782,729.

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

PIMCO Municipal Income Funds II Notes to Financial Statements November 30, 2006 (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, 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 non-diversified, 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 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 SE, a publicly traded insurance and financial services company. The Funds have an unlimited amount of $0.00001 par value common stock authorized.

Under normal market conditions, Municipal II invests substantially all of its assets in a portfolio of municipal bonds, the interest from which is exempt from federal income taxes. Under normal market conditions, 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. Under normal market conditions, 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 been asserted. However, the Funds expect the risk of any loss to be remote.

In July 2006, the Financial Accounting Standards Board issued interpretation No. 48, Accounting for Uncertainty in Income Taxes an Interpretation of FASB Statement No. 109 (the Interpretation). The Interpretation establishes for all entities, including pass-through entities such as the Funds, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. The Interpretation is effective for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the date of effectiveness. The Funds management has recently begun to evaluate the application of the Interpretation, and is not in a position at this time to estimate the significance of its impact, if any, on the Funds financial statements. On December 22, 2006, the Securities & Exchange Commission announced that it would not object if a fund implements the Interpretation in its NAV calculation as late as its last NAV calculation in the first required financial statement reporting period for its fiscal year beginning after December 15, 2006. Consequently, the Fund will be required to comply with the Interpretation by November 30, 2007.

In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) 157, Fair Value Measurements, which clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. Adoption of SFAS 157 requires the use of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. At this time, the Funds are in the process of reviewing the SFAS 157 against their current valuation policies to determine future applicability.

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 are 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 by using the last sale price on the exchange that is the primary market for such securities, or the last quoted mean price for those securities for which the over-the-counter market is the primary

34 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Funds II Notes to Financial Statements November 30, 2006 (unaudited)

1. Organization and Significant Accounting Policies (continued)

(a) Valuation of Investments (continued) market or for listed securities in which there were no sales. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Exchange traded options and futures are valued at the settlement price determined by the relevant exchange. Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days. The prices used by the 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 (NYSE) on each day the NYSE 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.

(d) Dividends and DistributionsCommon 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.

(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 marked to market to reflect the current market value of the option written. These liabilities are reflected as options written in the Statements 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

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

PIMCO Municipal Income Funds II Notes to Financial Statements November 30, 2006 (unaudited)

1. Organization and Significant Accounting Policies (continued)

(f) Option Transactions (continued) 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) Inverse Floating Rate Transactions Residual Interest Municipal Bonds (RIBs) / Residual Interest Tax Exempt Bonds (RITEs) The Funds invest in RIBs and RITEs (Inverse Floaters) whose interest rates bear an inverse relationship to the interest rate on another security or the value of an index. In these transactions, the Funds sell a fixed rate municipal bond (Fixed Rate Bond) to a broker who places the Fixed Rate Bond in a special purpose trust (Trust) from which floating rate bonds (Floating Rate Notes) and Inverse Floaters are issued. The Funds simultaneously or within a short period of time purchase the Inverse Floaters from the broker. The Inverse Floaters held by the Funds provide the Funds with the right to: (1) cause the holders of the Floating Rate Notes to tender their notes at par, and (2) cause the broker to transfer the Fixed-Rate Bond held by the Trust to the Funds, thereby collapsing the Trust. Pursuant to Statement of Financial Accounting Standards No. 140 (FASB Statement No. 140), the Funds account for the transaction described above as a secured borrowing by including the Fixed-Rate Bond in their Schedules of Investments, and account for the Floating Rate Notes as a liability under the caption Payable for floating rate notes in the Funds Statements of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date.

The Funds may also invest in inverse floaters without transferring a fixed rate municipal bond into a special purpose trust, which are not accounted for as secured borrowings.

The Inverse Floaters 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 typically every 7 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 rates result in lower income for the long-term component and visa versa. The longer-term bonds may be more volatile and less liquid than other municipal bonds of comparable maturity. Investments in Inverse Floaters typically will involve greater risk than an in investment in Fixed Rate Bonds. The Funds may also invest in Inverse Floaters for the purpose of increasing leverage.

The Funds investment policies and restrictions expressly permit investments in Inverse Floaters. The Funds restrictions on borrowings do not apply to the secured borrowings deemed to have occurred for accounting purposes pursuant to FASB Statement No. 140. Inverse Floaters held by the Funds are exempt from registration under Rule 144A of the Securities Act of 1933.

(h) When-Issued/Delayed-Delivery Transactions When-issued or delayed-delivery basis 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, consequently, such fluctuations are taken 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 Funds do 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.

(j) Interest Expense Relates to the Funds liability in connection with floating rate notes held by third parties in conjunction with Inverse Floater transactions. Interest expense is recorded as incurred.

36 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Funds II Notes to Financial Statements November 30, 2006 (unaudited)

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 Funds Board of Trustees, the Investment Manager is responsible for managing, either directly or through others selected by it, the Funds 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 Funds average daily net assets, inclusive of net assets attributable to any preferred shares that may be outstanding. In order to reduce each Funds 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 Funds 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 Funds 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 Funds 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 Funds 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 For the six months ended November 30, 2006, purchases and sales of investments, other than short-term securities, were:

		California
	Municipal II	Municipal II				Municipal II
Purchases	$95,366,027	$63,993,442				$8,552,637
Sales	59,510,747	39,963,288				8,905,187
(a) Futures contracts outstanding at November 30, 2006:
			Market			Unrealized
			Value		Expiration	Appreciation
Fund	Type	Contracts	(000)		Date	(Depreciation)
Municipal II	Long: Financial Future Euro90 day	23	$	5,464	6/18/07	$ (5,175	)
	Financial Future Euro90
day	23		5,475	9/17/07	4,888
	Financial
Future Euro90 day	23		5,482	12/17/07	12,075
	Financial Future Euro90 day	23		5,487	3/17/08	16,962
	U.S. Treasury Notes 5 yr. Futures	4,689		497,767	3/30/07	2,620,985
	Short: U.S. Treasury Bond Futures	(4,933	)	564,212	3/21/07	(3,947,908	)
	U.S. Treasury Notes 10 yr. Futures	(1,862	)	203,307	3/21/07	(931,000	)
						$ (2,229,173	)
California Municipal II	Long: Financial Future Euro90 day	261	$	62,004	6/18/07	$ 500
	Financial Future Euro90 day	251		59,747	9/17/07	115,138
	Financial Future Euro90 day	261		62,213	12/17/07	198,825
	Financial Future Euro90 day	261		62,262	3/17/08	254,287
	U.S. Treasury Notes 5 yr. Futures	1,200		127,388	3/30/07	667,735
	Short: U.S. Treasury Bond Futures	(2,381	)	272,327	3/21/07	(1,370,094	)
	U.S. Treasury Notes 10 yr. Futures	(1,076	)	117,486	3/21/07	(319,437	)
						$ (453,046	)
New York Municipal II	Long: U.S. Treasury Notes 5 yr. Futures	233	$	24,734	3/30/07	$ 139,078
	Short: U.S. Treasury Bond Futures	(368	)	42,090	3/21/07	(354,585	)
	U.S. Treasury Notes 10 yr. Futures	(384	)	41,928	3/21/07	(114,000	)
						$ (329,507	)

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

PIMCO Municipal Income Funds II Notes to Financial Statements November 30, 2006 (unaudited)

3. Investments in Securities (continued)

(b) Transactions in options written for the six months ended November 30, 2006:

	Contracts
Municipal II:
Options outstanding, May 31, 2006		$
Options written	5,811		988,770
Options expired	(3,724	)	(536,131	)
Options terminated in closing purchase transactions	(1,497	)	(205,650	)
Options outstanding, November 30, 2006	590	$	246,989
California Municipal II:
Options outstanding, May 31, 2006		$
Options written	1,997		363,978
Options expired	(1,222	)	(173,138	)
Options terminated in closing purchase transactions	(475	)	(65,253	)
Options outstanding, November 30, 2006	300	$	125,587
New York Municipal II:
Options outstanding, May 31, 2006		$
Options written	1,287		210,661
Options expired	(846	)	(121,953	)
Options terminated in closing purchase transactions	(341	)	(46,845	)
Options outstanding, November 30, 2006	100	$	41,863

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, 2006 were:

	Cost of	Gross — Unrealized	Gross — Unrealized	Net — Unrealized
	Investments	Appreciation	Depreciation	Appreciation
Municipal II	$1,345,862,728	$164,235,012	$	$164,235,012
California Municipal II	872,439,135	67,966,174	1,459	67,964,715
New York Municipal II	266,810,232	19,283,884		19,283,884

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 and distributions of net realized long-term capital gains, if any, are accumulated daily at an annual rate (typically re-set every seven days) through auction procedures.

38 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Funds II Notes to Financial Statements November 30, 2006 (unaudited)

5. Auction Preferred Shares For the six months ended November 30, 2006, the annualized dividend rates ranged from:

	High	Low	At November 30, 2006
Municipal II:
Series A	3.75%	3.00%	3.25%
Series B	3.80%	3.00%	3.35%
Series C	3.55%	3.00%	3.39%
Series D	4.00%	3.15%	3.55%
Series E	4.00%	3.15%	3.20%
California Municipal II:
Series A	3.80%	2.00%	2.95%
Series B	3.40%	2.11%	2.50%
Series C	3.90%	2.75%	3.20%
Series D	3.50%	2.20%	3.35%
Series E	3.50%	2.50%	3.30%
New York Municipal II:
Series A	3.84%	2.90%	3.30%
Series B	3.90%	2.75%	3.30%

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.

Preferred Shares, which are entitled to one vote per share, generally vote separately as a class to elect two Trustees and on any matters affecting the rights of the Preferred Shares.

6. Subsequent Common Dividend Declarations On December 1, 2006, the following dividends were declared to common shareholders payable December 29, 2006 to shareholders of record on December 11, 2006:

Municipal II	$0.07 per common share
California Municipal II	$0.07 per common share
New York Municipal II	$0.06625 per common share

On January 3, 2007 the following dividends were declared to common shareholders payable February 1, 2007 to shareholders of record on January 16, 2007:

Municipal II	$0.065 per common share
California Municipal II	$0.07 per common share
New York Municipal II	$0.06625 per common share

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

PIMCO Municipal Income Funds II Notes to Financial Statements November 30, 2006 (unaudited)

7. Legal Proceedings In June and September 2004, the Investment Manager, certain of its affiliates (including 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 LLC. 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. In addition to monetary payments, the settling parties agreed to undertake certain corporate governance, compliance and disclosure reforms related to market timing brokerage commissions, revenue sharing and shelf space arrangements, and consented to cease and desist orders and censures. 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 fifteen lawsuits filed in various jurisdictions. Eleven of those lawsuits concern market timing and have been transferred to and consolidated for pre-trial proceedings in a multi-district litigation proceeding in the U.S. District Court for the District of Maryland; the other four lawsuits concern revenue sharing and have been consolidated into a single action in the U.S. District Court for the District of Connecticut. The lawsuits generally relate to the same allegations that are the subject of the regulatory proceedings discussed above. The lawsuits seek, among other things, unspecified compensatory damages plus interest and, in some cases, punitive damages, the rescission of investment advisory contracts, the return of fees paid under those contracts, restitution, and waiver of or return of certain sales charges paid by open-end fund shareholders.

The Investment Manager and the Sub-Adviser believe that these matters are not likely to have a material adverse effect on the Funds or on their ability to perform their respective investment advisory activities relating to the Funds.

The foregoing speaks only as of the date hereof.

40 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

[This page intentionally left blank.]

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

| | Six Months | | | | | | | | For the
period | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | ended | | | | | | | | June 28,
2002* | |
| | November
30, 2006 | | Year
ended May 31, | | | | | | through | |
| | (unaudited) | | 2006 | | 2005 | | 2004 | | May
31, 2003 | |
| Net
asset value, beginning of period | $14.71 | | $14.81 | | $14.01 | | $14.66 | | $14.33 | ** |
| Investment
Operations: | | | | | | | | | | |
| Net
investment income | 0.53 | | 1.08 | | 1.11 | | 1.17 | | 0.93 | |
| Net realized
and unrealized gain (loss) | | | | | | | | | | |
| on
investments, futures contracts, | | | | | | | | | | |
| options
written, swaps and foreign | | | | | | | | | | |
| currency
transactions | 0.57 | | 0.01 | | 0.84 | | (0.77 | ) | 0.53 | |
| Total
from investment operations | 1.10 | | 1.09 | | 1.95 | | 0.40 | | 1.46 | |
| Dividends
and Distributions on | | | | | | | | | | |
| Preferred
Shares from: | | | | | | | | | | |
| Net
investment income | (0.14 | ) | (0.23 | ) | (0.14 | ) | (0.08 | ) | (0.08 | ) |
| Net
realized gains | | | | | | | | | (0.01 | ) |
| Total dividends
and distributions on | | | | | | | | | | |
| preferred
shares | (0.14 | ) | (0.23 | ) | (0.14 | ) | (0.08 | ) | (0.09 | ) |
| Net increase
in net assets applicable | | | | | | | | | | |
| to
common shareholders resulting | | | | | | | | | | |
| from
investment operations | 0.96 | | 0.86 | | 1.81 | | 0.32 | | 1.37 | |
| Dividends
and Distributions to | | | | | | | | | | |
| Common
Shareholders from: | | | | | | | | | | |
| Net
investment income | (0.42 | ) | (0.96 | ) | (1.01 | ) | (0.97 | ) | (0.84 | ) |
| Net
realized gains | | | | | | | | | (0.09 | ) |
| Total dividends
and distributions | | | | | | | | | | |
| to
common shareholders | (0.42 | ) | (0.96 | ) | (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 | $15.25 | | $14.71 | | $14.81 | | $14.01 | | $14.66 | |
| Market
price, end of period | $15.90 | | $14.45 | | $15.02 | | $13.31 | | $14.80 | |
| Total
Investment Return (1) | 13.17% | | 2.63% | | 21.00% | | (3.69)% | | 5.19% | |
| RATIOS/SUPPLEMENTAL
DATA: | | | | | | | | | | |
| Net assets
applicable to common | | | | | | | | | | |
| shareholders,
end of period (000) | $896,446 | | $862,832 | | $862,290 | | $812,670 | | $846,885 | |
| Ratio of expenses
to average net | | | | | | | | | | |
| assets,
including interest | | | | | | | | | | |
| expense
(2)(3)(5) | 1.52% | # | 1.30% | | 1.05% | | 1.08% | | 0.97% | # |
| Ratio of expenses
to average net | | | | | | | | | | |
| assets,
excluding interest | | | | | | | | | | |
| expense
(2)(3)(4)(5) | 1.01% | # | 1.05% | | 1.02% | | 1.03% | | 0.95% | # |
| Ratio of net
investment income | | | | | | | | | | |
| to
average net assets (2)(5) | 7.25% | # | 7.31% | | 7.71% | | 8.16% | | 6.99% | # |
| Preferred
shares asset coverage | | | | | | | | | | |
| per
share | $69,365 | | $67,701 | | $67,676 | | $65,224 | | $66,920 | |
| Portfolio
turnover | 4% | | 14% | | 8% | | 26% | | 22% | |

42 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06 | See accompanying notes to Financial Statements

PIMCO Municipal Income Fund II Financial Highlights

*	Commencement of operations.
**	Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.
#	Annualized.
(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 Funds dividend reinvestment plan. Total investment return does not
reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.
(2)	Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.
(3)	Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank. (See note 1(i) in Notes to Financial Statements).
(4)	Interest expense relates to the liability for floating rate notes issued in connection with inverse floater transactions.
(5)	During the fiscal periods indicated above, the Investment Manager waived a portion of its investment management fee. The effect of such waivers relative to the average net assets of common
shareholders was 0.23% (annualized), 0.24%, 0.24%, 0.25% and 0.23% (annualized) for the six months ended April 30, 2006, for the years ended May 31, 2006, May 31, 2005, May 31, 2004 and for the period June 28, 2002 (commencement of operations)
through May 31, 2003, respectively.

See accompanying notes to Financial Statements | 11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 43

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

| | Six Months | | | | | | | | For the
period | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | ended | | | | | | | | June 28,
2002* | |
| | November
30, 2006 | | Year
ended May 31, | | | | | | through | |
| | (unaudited) | | 2006 | | 2005 | | 2004 | | May
31, 2003 | |
| Net asset
value, beginning | | | | | | | | | | |
| of
period | $14.58 | | $14.61 | | $13.53 | | $14.66 | | $14.33 | ** |
| Investment
Operations: | | | | | | | | | | |
| Net
investment income | 0.54 | | 1.05 | | 1.05 | | 1.13 | | 0.87 | |
| Net realized
and unrealized | | | | | | | | | | |
| gain
(loss) on investments, | | | | | | | | | | |
| futures
contracts, options | | | | | | | | | | |
| written,
swaps and foreign | | | | | | | | | | |
| currency
transactions | 0.55 | | 0.06 | | 1.13 | | (1.26 | ) | 0.46 | |
| Total from
investment operations | 1.09 | | 1.11 | | 2.18 | | (0.13 | ) | 1.33 | |
| Dividends
on Preferred | | | | | | | | | | |
| Shares
from: | | | | | | | | | | |
| Net
Investment Income: | (0.13 | ) | (0.21 | ) | (0.12 | ) | (0.07 | ) | (0.07 | ) |
| Net increase
(decrease) in net | | | | | | | | | | |
| assets
applicable to common | | | | | | | | | | |
| shareholders
resulting from | | | | | | | | | | |
| investment
operations | 0.96 | | 0.90 | | 2.06 | | (0.20 | ) | 1.26 | |
| Dividends
to Common | | | | | | | | | | |
| Shareholders
from: | | | | | | | | | | |
| Net
Investment Income: | (0.42 | ) | (0.93 | ) | (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 | $15.12 | | $14.58 | | $14.61 | | $13.53 | | $14.66 | |
| Market
price, end of period | $16.18 | | $14.62 | | $14.76 | | $13.27 | | $14.78 | |
| Total
Investment Return (1) | 13.83% | | 5.50% | | 19.14% | | (3.92)% | | 4.23% | |
| RATIOS/SUPPLEMENTAL | | | | | | | | | | |
| DATA: | | | | | | | | | | |
| Net assets
applicable to | | | | | | | | | | |
| common
shareholders, | | | | | | | | | | |
| end
of period (000) | $461,168 | | $443,379 | | $441,596 | | $407,659 | | $439,970 | |
| Ratio of expenses
to average | | | | | | | | | | |
| net
assets, including | | | | | | | | | | |
| interest
expense (2)(3)(5) | 2.88% | # | 2.02% | | 1.36% | | 1.60% | | 1.10% | # |
| Ratio of expenses
to average | | | | | | | | | | |
| net
assets, excluding | | | | | | | | | | |
| interest
expense (2)(3)(4)(5) | 1.02% | # | 1.06% | | 1.06% | | 1.07% | | 0.97% | # |
| Ratio of net
investment income | | | | | | | | | | |
| to
average net assets (2)(5) | 7.34% | # | 7.24% | | 7.37% | | 8.05% | | 6.51% | # |
| Preferred
shares asset | | | | | | | | | | |
| coverage
per share | $69,330 | | $67,620 | | $67,451 | | $64,191 | | $67,301 | |
| Portfolio
turnover | 6% | | 12% | | 5% | | 20% | | 39% | |

44 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06 | See accompanying notes to Financial Statements

PIMCO California Municipal Income Fund II Financial Highlights

*	Commencement of operations.
**	Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.
#	Annualized.
(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 Funds dividend reinvestment plan. Total investment return does not
reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.
(2)	Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.
(3)	Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank. (See note 1(i) in Notes to Financial Statements).
(4)	Interest expense relates to the liability for floating rate notes issued in connection with inverse floater transactions.
(5)	During the periods indicated above, the Investment Manager waived a portion of its investment management fee. The effect of such waivers relative to the average net assets of common shareholders was
0.23% (annualized), 0.24%, 0.24%, 0.24% and 0.23% (annualized) for the six months ended November 30, 2006, for the years ended May 31, 2006, May 31, 2005, May 31, 2004 and for the period June 28, 2002 (commencement of operations) through May 31,
2003, respectively.

See accompanying notes to Financial Statements | 11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 45

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

| | Six Months | | | | | | | | For the
period | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | ended | | | | | | | | June 28,
2002* | |
| | November
30, 2006 | | Year
ended May 31, | | | | | | through | |
| | (unaudited) | | 2006 | | 2005 | | 2004 | | May
31, 2003 | |
| Net asset
value, beginning | | | | | | | | | | |
| of
period | $14.66 | | $14.62 | | $13.54 | | $14.45 | | $14.33 | ** |
| Investment
Operations: | | | | | | | | | | |
| Net
investment income | 0.54 | | 1.07 | | 1.07 | | 1.06 | | 0.86 | |
| Net realized
and unrealized | | | | | | | | | | |
| gain
(loss) on investments, | | | | | | | | | | |
| futures
contracts, options | | | | | | | | | | |
| written,
swaps and foreign | | | | | | | | | | |
| currency
transactions | 0.53 | | 0.11 | | 1.12 | | (0.97 | ) | 0.28 | |
| Total from
investment operations | 1.07 | | 1.18 | | 2.19 | | 0.09 | | 1.14 | |
| Dividends
on Preferred | | | | | | | | | | |
| Shares
from: | | | | | | | | | | |
| Net
Investment Income: | (0.14 | ) | (0.23 | ) | (0.13 | ) | (0.07 | ) | (0.08 | ) |
| Net increase
in net assets | | | | | | | | | | |
| applicable
to common | | | | | | | | | | |
| shareholders
resulting from | | | | | | | | | | |
| investment
operations | 0.93 | | 0.95 | | 2.06 | | 0.02 | | 1.06 | |
| Dividends
to Common | | | | | | | | | | |
| Shareholders
from: | | | | | | | | | | |
| Net
Investment Income: | (0.40 | ) | (0.91 | ) | (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 | $15.19 | | $14.66 | | $14.62 | | $13.54 | | $14.45 | |
| Market
price, end of period | $15.74 | | $14.14 | | $14.80 | | $13.05 | | $14.71 | |
| Total
Investment Return (1) | 14.32% | | 1.65% | | 21.45% | | (5.15)% | | 3.76% | |
| RATIOS/SUPPLEMENTAL | | | | | | | | | | |
| DATA: | | | | | | | | | | |
| Net assets
applicable to | | | | | | | | | | |
| common
shareholders, | | | | | | | | | | |
| end
of period (000) | $160,019 | | $154,088 | | $152,812 | | $140,958 | | $149,606 | |
| Ratio of expenses
to average | | | | | | | | | | |
| net
assets, including | | | | | | | | | | |
| interest
expense (2)(3)(5) | 2.20% | # | 1.89% | | 1.25% | | 1.16% | | 1.02% | # |
| Ratio of expenses
to average | | | | | | | | | | |
| net
assets, excluding | | | | | | | | | | |
| interest
expense (2)(3)(4)(5) | 1.15% | # | 1.13% | | 1.14% | | 1.15% | | 1.02% | # |
| Ratio of net
investment income | | | | | | | | | | |
| to
average net assets (2)(5) | 7.17% | # | 7.29% | | 7.53% | | 7.58% | | 6.41% | # |
| Preferred
shares asset | | | | | | | | | | |
| coverage
per share | $69,440 | | $67,785 | | $67,439 | | $64,148 | | $66,552 | |
| Portfolio
turnover | 4% | | 26% | | 11% | | 14% | | 27% | |

46 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06 | See accompanying notes to Financial Statements

PIMCO New York Municipal Income Fund II Financial Highlights

*	Commencement of operations.
**	Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.
#	Annualized
(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 Funds dividend reinvestment plan. Total investment return does not
reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.
(2)	Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.
(3)	Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank. (See note 1(i) in Notes to Financial Statements).
(4)	Interest expense relates to the liability for floating rate notes issued in connection with inverse floater transactions.
(5)	During the periods indicated above, the Investment Manager waived a portion of its investment management fee. The effect of such waivers relative to the average net assets of common shareholders was
0.24% (annualized), 0.24%, 0.24%, 0.24% and 0.23% (annualized) for the six months ended November 30, 2006, for the years ended May 31, 2006, May 31, 2005, May 31, 2004 and for the period June 28, 2002 (commencement of operations) through May 31,
2003, respectively.

See accompanying notes to Financial Statements | 11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 47

PIMCO Municipal Income Funds II
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, approve the Funds Management Agreements (the Advisory Agreements) with the Investment Manager and Portfolio Management Agreements (the Sub-Advisory Agreements, and together with the Advisory Agreements, the Agreements) between the Investment Manager and the Sub-Adviser. The Trustees met on June 20 and 21, 2006 (the contract review meeting) for the specific purpose of considering whether to approve the Advisory Agreements and the Sub-Advisory Agreements. 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 Fund management during the contract review meeting (the 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, concluded that the Funds Advisory Agreements and the Sub-Advisory Agreements should be approved for a one-year period commencing July 1, 2006.

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 the 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 the Funds 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, 2006, (v) descriptions of various functions performed by the Investment Manager and the Sub-Adviser for the Funds, such as portfolio management, 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 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 Managers and the Sub-Advisers 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 the Sub-Adviser to attract and retain capable personnel; the capability and integrity of the senior management and staff of the Investment Manager and the Sub-Adviser; and the level of skill required to manage the Funds. In addition, the Trustees reviewed the quality of the Investment Managers and the Sub-Advisers 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 Managers or the Sub-Advisers ability to provide high quality services to the Funds in the future under the Agreements, including each organizations respective business reputation, financial condition and operational stability. Based on the foregoing, the Trustees concluded that the Sub-Advisers investment process, research capabilities and philosophy were well suited to the Funds given their investment objectives and policies, and that the Investment Manager and the Sub-Adviser would be able to continue to meet any reasonably foreseeable obligations under the Agreements.

Based on information provided by Lipper Inc., the Trustees also reviewed each 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 Meeting, as well as during

48 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

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

investment review meetings conducted with portfolio management personnel during the course of the year regarding each the Funds performance.

In assessing the reasonableness of each Funds fees under the Agreements, the Trustees considered, among other information, the Funds management fee and the total expense ratio 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.

For each of the Funds, the Trustees specifically took note of how each Fund compared to its Lipper Inc. peers as to performance and management fee expenses. The Trustees noted that while the Funds are not charged a separate administration fee, it was not clear whether the peer funds in the Lipper Inc. categories were charged such a fee by their investment managers. Thus, the Trustees, at the recommendation of the Investment Manager, considered the total expenses of the Funds comparatively to the total expenses of the peer funds, recognizing that the fees for management and administrative services would be subsumed within the total expense ratio.

The Trustees noted that Municipal II had outperformed its peer median and average group for the one-year and three-year periods ended April 30, 2006. The Trustees also noted that Municipal IIs expense ratio (after taking into account waivers) was below the median and average for its peer group.

The Trustees noted that California Municipal II outperformed its peer median and average group for the one-year and three-year periods ended April 30, 2006. The Trustees also noted that California Municipal IIs expense ratio (after taking into account waivers) including the effect of preferred shares was significantly below the average and median for its peer group and excluding the effect of preferred shares was slightly above the average and median for its peer group.

The Trustees noted that New York Municipal II outperformed its peer median and average group for the one-year and three-year periods ended April 30, 2006. The Trustees also noted that New York Municipal IIs expense ratio (after taking into account waivers) including the effect of preferred shares was significantly below the average and median for its peer group and excluding the effect of preferred shares was slightly above the average and median for its peer group.

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 Managers and the Sub-Advisers responses and efforts relating to investment performance and the comparative positioning of each Fund with respect to the management fee paid to the Investment Manager.

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. Regarding the institutional separate accounts, they noted that the management fees paid by the Funds are generally higher than the fees paid by these clients of the Sub-Adviser, but were advised 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 separate accounts. The Trustees noted that the management fees 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 challenge in managing the Funds, such as the use of leverage and meeting a regular dividend.

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 the 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 the 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 the 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 the Sub-Adviser indicating that each Funds use of leverage through preferred shares continues to be appropriate and in the interests of the Funds 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 each Fund and determined that such profitability was not excessive.

11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 49

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

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 Fund. 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 the 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.

50 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.06

PIMCO Municipal Income Funds II
Results/Corporate Changes (unaudited)

Annual Shareholder Meetings Results: The Funds held their annual meetings of shareholders on December 20, 2006. Common/Preferred shareholders of each fund voted to re-elect both Robert E. Connor and Hans W. Kertess* as Class I Trustees and elect William B. Ogden IV as Class I Trustee to serve until 2009.

The resulting vote count is indicated below:
		Withheld
	Affirmative	Authority
Municipal II
Re-election of Robert E. Connor	51,909,255	749,519
Re-election of Hans W. Kertess*	18,470	175
Election of William B. Ogden IV	51,952,770	706,004
California Municipal II
Re-election of Robert E. Connor	26,458,623	227,141
Re-election of Hans W. Kertess*	7,848	4
Election of William B. Ogden IV	26,475,675	210,089
New York Municipal II
Re-election of Robert E. Connor	9,104,152	186,534
Re-election of Hans W. Kertess*	1,669	28
Election of William B. Ogden IV	9,095,503	195,183

Messrs. Paul Belica, Jack J. Dalessandro, John C. Maney and R. Peter Sullivan III continue to serve as Trustees of the Funds.

Preferred Shares Trustee

Corporate changes: On September 12, 2006, the Funds Board of Trustees appointed William B. Ogden IV as a class I Trustee. On October 10, 2006, David C. Flattum, an interested Trustee, resigned. On December 12, 2006, the Funds Board of Trustees appointed John C. Maney, as a Class III (interested) Trustee.

11.30.06 | PIMCO Municipal Income Funds II Semi-Annual Report 51

[This page intentionally left blank.]

Trustees and Principal Officers

Hans W. Kertess	Brian S. Shlissel
Trustee, Chairman of the Board of Trustees	President & Chief Executive Officer
Paul Belica	Lawrence G. Altadonna
Trustee	Treasurer, Principal Financial & Accounting Officer
Robert E. Connor	Thomas J. Fuccillo
Trustee	Vice President, Secretary & Chief Legal Officer
John J. Dalessandro II	Youse E. Guia
Trustee	Chief Compliance Officer
John C. Maney	Kathleen Chapman
Trustee	Assistant Secretary
William B. Ogden IV	William Healey
Trustee	Assistant Secretary
R. Peter Sullivan III	Richard Kirk
Trustee	Assistant Secretary
	Lagan Srivastava
	Assistant Secretary

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. 225 Franklin Street Boston, MA 02110 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 the 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 (SEC) for the first and third quarter of its fiscal year on Form N-Q. The Funds Form N-Qs are available on the SECs website at www.sec.gov, and may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

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, 2006 is available (i) without charge upon request by calling the Funds shareholder servicing agent at (800) 331-1710; (ii) on the Funds website at www.allianzinvestors.com/closedendfunds; and (iii) on the Securities and Exchange Commission website at sec.gov.

Information on the Funds is available at www.allianzinvestors.com/closedendfunds or by calling the Funds shareholder servicing 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 required in 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 |
| July
2006 | N/A | 14.41 | 4,797 | N/A |
| August
2006 | N/A | 14.65 | 4,726 | N/A |
| September
2006 | N/A | 14.92 | 4,597 | N/A |
| October
2006 | N/A | 14.98 | 4,777 | N/A |
| November
2006 | N/A | 15.13 | 4,979 | 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 Funds
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 Global Investors
website at www.allianzinvestors.com. | |
| ITEM 11. | CONTROLS AND PROCEDURES |
| (a) The registrants President and
Chief Executive Officer and Principal Financial Officer have concluded
that the registrants 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) In December 2006, subsequent to
the Registrants fiscal half year, the principal executive and
financial officers became aware of matters relating to the Registrants
purchase of certain inverse floating rate obligations that required enhancements
to certain controls. The Registrants management determined that controls
relating to the review and analysis of the relevant contractual terms and
conditions of transfers of securities in connection with the purchase of certain
inverse floating rate obligations were not effective in identifying whether
these transfers qualified for sale accounting under the provisions of Statement
of Financial Accounting Standards No. 140 (SFAS 140). The Registrants management has
taken such further actions as are necessary to revise its controls and
procedures in order to increase the effectiveness of these controls and
procedures in identifying such transactions that require accounting treatment under SFAS 140. | |
| ITEM 12. | EXHIBITS |
| (a) (1) | Exhibit 99.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 New York Municipal Income Fund II

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

Date: May 22, 2007

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

Date: May 22, 2007

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: May 22, 2007

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

Date: May 22, 2007

AI Terminal

More from PIMCO NEW YORK MUNICIPAL INCOME FUND II

Talk to a Data Expert